Cisco Unveils High-End Video Conferencing Technology

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Cisco joins video-conference foray [Washington Post]

Summary: Cisco recently unveiled its TelePresence video conferencing system - a high-definition, business application Cisco believes it can grow into a billion dollar business in 5-7 years. The TelePresence is the latest indication Cisco is expanding from its traditional business of network routers and switches into high-end video. Analysts who were given a presentation by the company believe the TelePresence will be able to compete with Hewlett-Packard Co.'s Halo Collaboration Studio and other high-end video conferencing products by specialist technology firms like Teliris Ltd. and Polycom Inc. The product is being offered in 2 versions, one for 1-on-1 conferencing that will be priced at $79,000 and another for multi-person conferencing being offered for $299,000. The high pricing means Cisco executives believe it will be 3 years before they are able to turn a profit on the TelePresence. Cisco believes its new system can save companies thousands in travel expenses.
Related links: Cisco Q4 2006 Earnings Conference Call Transcript • Video-conference? No, Telepresence! • Cisco Launching Virtual Meetings Tool • Cisco Unveils HD Video Conferencing System • Analysts More Confident in Cisco
Potentially impacted stocks and ETFs: Hewlett-Packard (HPQ), Polycom (PLCM) • iShares Goldman Sachs Networking (IGN), iShares Dow Jones US Technology (IYW), Internet Architecture HOLDRS (IAH)

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