Telepresence: A hotel-based services options

AT&T is expanding the commitment it’s made to Cisco Telepresence by doubling the number of conference rooms available. AT&T offers a managed conference service based on Cisco’s high-end technology.

The high-end telepresence market has always been dependent on “room-package” solutions like this, according to our research, because only the largest firms can afford and/or justify a private solution. Even the room-package approach isn’t populist enough for the great majority of businesses, however. Among the 3,500 largest enterprises, we calculate about a quarter could justify some in-house facilities and more than 90% of the remainder could use room-based services. In the next tier of the market (5,000 worldwide), only a tenth can justify private facilities, and only 40% can use room-based services.

A broader approach is needed to gain full market acceptance. Our research shows that the most significant shift would be hotel-based conference facilities, because they could be more easily reached because of greater ubiquity. These should also offer lower-cost service than the high-end Cisco approach.