Image via CrunchBaseThe huge acquisition deal Microsoft buying Skype for $8.5 billion, is being seen as to a major step towards the development of videoconferencing market, though this however narrows the market of video technology providers, like Polycom and Logitech. The videoconferencing equipment market was already having a bumpy ride since the expansion of Skype and other video applications, which do not require referring the device making market anymore. Now the pressure on the videoconferencing devices makers has even double, portrays Jeffrey Mann, an analyst from Gartner.
Many other analysts have also shown the same concern, as Mann explained that "Some of the more narrowly focused companies will likely struggle." It is being said that comapnie like Polycom and Logitech will be the very first culprits after the acquisition of Skype, consequently taking the company toward being an enterprise. On the other hand, it will make space for larger companies of the market, like Cisco and Hewlett-Packard to benefit from it, having a larger range of services to offer. The C.E.O. of Cisco Systems said that "I think we're well positioned here, but if you haven't got good, big competitors and good start-ups, you're in the wrong market."
On the contrary to these analysts’ reports, many smaller companies actually are pleased to see the acquisition of Microsoft and hope that it creates a better scope in the videoconferencing market and gives them new opportunities.
The marketing head of Vidyom, a software platform for HP, Google and others, claims that "Skype takes the scariness out of videoconferencing." He said that "It makes videoconferencing really obvious and part of everybody's life. As people use videoconferencing at home they are going to ask for it in the enterprises."
While the V.P. of Polycom, Sue Hayden, expects that the consumer marketing of Skype will not affect the enterprise market. He said that "We don't see the Skype consumer play disrupting the enterprise performance." He made it clear that, according to him, this acquisition will not have a great impact on Polycom's business with Microsoft. Hayden also disclosed that "We have a number of contractual arrangements with Microsoft that are fully in place, fully intact. This does not change that at all," Hayden said.
Analysts at William Blair & Co. have estimated that 5 percent of Polycom’s revenue is generated from business with Microsoft and they also predict that this deal will not affect Polycom, atleast not in the near future.
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