Cisco Consumer TelePresence Will Have Enterprise Implications

 Cisco introduced an HD video solution for the consumer market. Cisco umi telepresence connects to an existing HD television and a broadband Internet connection to create a clear, natural and lifelike video communications experience. umi will become generally available in the U.S. on November 14. It will list for $599 plus a monthly fee of $24.99 for unlimited video calls, video messaging and video storage. Sales will be through Best Buy stores, direct from Cisco and through Verizon, which will bundle umi with its FiOS service in early 2011.

Analytical SummaryPerspective

• Perspective: Positive on Cisco’s umi, because it not only extends Cisco’s immersive video conferencing technology into the consumer space, but also because plans are already underway to integrate umi with Cisco’s larger portfolio of TelePresence products. Once this integration work is complete, umi will have increased relevance in vertical markets with a business-to-consumer focus and possibly to “prosumers” who might eventually be able to use umi as a business communications tool in a teleworker environment.

Vendor Importance

• Vendor Importance: High to Cisco, because the company has been developing a consumer-based application of its telepresence technology for more than a year. Though umi falls short of being a full-fledged member of the Cisco TelePresence portfolio for business video conferencing, this is could change over time as Cisco, its customers and resellers explore business uses of the new product.

Market Impact

• Market Impact: Low on the enterprise market, because umi will mainly challenge vendors and service providers delivering video conferencing solutions for consumers. It will take time for umi to have much meaningful impact on Polycom, LifeSize, Vidyo and other competitors in the market for video conferencing solutions for business use.