Massive Economic Upside for Unified Communications

A significant new analysis of the economic potential of video, data and voice systems that work together over the Internet -- known collectively as Unified Communications (UC) -- demonstrates that when these collaboration technologies are interoperable, they deliver clear commercial and consumer benefits.

The paper, written by Dr. Michael Katz and Dr. Bryan Keating studies the current unified communications market. The Katz/Keating study outlines the potential negative outcomes for the market of some UC vendors refuse to adopt industry standards that would enable video-to-video calls between different systems.

"The economic effects of incompatibility are not an abstract academic theory," Katz said. "There are real, everyday consequences to economic growth, consumer well-being and business productivity when one company has a proprietary Internet video system that does not work with others. This means less jobs will be created and people and businesses will not be able to communicate as freely, thus negatively affecting global economic potential. Our strong view is that government should monitor this market carefully to ensure that the implementation of standards is not blocked by dominant players seeking to gain competitive advantage."

UC  technologies -- especially video calling -- have been found to improve collaboration, boost productivity, reduce travel costs and enable remote training and services in health care and education.

However, according to the research by Katz and Keating, industry standards are critical to the future growth of the UC market. The market study reports that analysts at both Gartner and Frost & Sullivan find that interoperability is an important consideration for enterprise customers and that standards will increase flexibility for users as well as help lower costs.

"UC has the potential to be a huge growth industry at a time when many sectors are stalling," Keating said. "As with the Internet, we can't afford to have a ‘go-it-alone' mentality in this area.  We must do everything we can to ensure that companies adhere to the common global standard for video calling so that businesses and consumers reap the full benefits of these compelling communications platforms."

The study, commissioned by Cisco, included these findings:

• UC technologies have significant potential to increase business productivity but the lack of interoperability is an impediment to widespread adoption.
• UC is particularly susceptible to market failures that could impede standards based interoperability: (a) there are powerful network effects, meaning that the technologies become more valuable as more users are connected; (b) there are significant costs associated with using multiple vendors or switching from one to another; and, (c) certain vendors have large installed bases and important complementary products.
• Under prevalent market conditions, those vendors who would gain a competitive advantage when networks are proprietary can have incentives to thwart interoperability by undermining industry standards or refusing to adopt them.
• For these reasons, Katz/Keating conclude, the UC market should be monitored closely for signs of specific anti-competitive conduct.  When there is evidence of conduct that could or has adversely affected competition through effects on interoperability, government should address that conduct and impose appropriate remedies that would ensure adherence to agreed-upon industry standards. 

The economic study follows two recent surveys in the U.S. and in Europe which showed strong support for video technologies working together.  Nearly four in five likely U.S. voters surveyed believe it is important for technologies such as video calling to work together to help create jobs, promote innovation and deliver critical benefits in remote health care, education, business and other services.  And 84 percent of European consumers surveyed believe that video calling should be as easy as making a phone call.

The use of video by consumers, government and business is growing at a staggering rate.  According to the Cisco Visual Networking Index, in just three years, one million video minutes (the equivalent of 674 days) will traverse the Internet every second.  Use of video calling services is also increasing. Share your support for an open video community.

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Europeans are Demanding More Open Video Calling

As video calling usage increases, 81 percent of Europeans say that they now see it as personally important for them that these communications technologies work together, according to the findings from a recent market study.

In a clear signal to the video communications industry, 86 percent want companies to agree to a common standard so that software and devices -- including popular video calling apps like Skype, Facetime, and Google Chat -- are able to communicate with one another.

Unfortunately, that is still not the case in video calling, as opposed to speaking on the phone or exchanging emails, where interoperability is already the norm.

Europeans appear to have a very healthy appetite for video communications. In a survey of 1873 consumers, conducted on behalf of Cisco Systems, nearly 40 percent of those who use video calling said they will use it more often in the next twelve months, whereas only 4 percent expect to use it less often.

Growing Applications for Video Calling

What particularly attracts people to video calling is that it allows them to talk face-to-face with friends and family across the world. However, they are just as enthusiastic -- and sometimes even more so -- about possible applications of video calling technology in areas such as healthcare, education, and in the workplace.

Of those surveyed, 80 percent see video calling as an important way for patients in distant rural areas to talk face-to-face to medical specialists in cities without travelling, while 69 percent believe the technology has an important role in enabling teachers and other educators to hold live lectures and classes by video calling and to interact with students in real-time.

However, survey respondents are even clearer in pointing out that they want multiple devices or programs made by different companies to be able to communicate with one another.

Of those surveyed, 81 percent indicate such communication to be extremely important to their use of video, an unambiguous indication that people have little tolerance for potential glitches caused by a lack of interoperability.

Given the size of its market share in particular, 78 percent of respondents believe that Microsoft should open its Skype video platform. Moreover, 72 percent deem Microsoft's decision not to make Skype interoperable to be unfair to its users.

Key Highlights from the Video Calling Survey

• 85 percent of respondents want companies to agree to a common standard for video calling so programs work together.
• 84 percent believe that video calling should be as easy as making a phone call.
• 79 percent want Skype to be interoperable with other video technologies.

This survey was conducted by Purple Strategies and based on 1873 telephone interviews. For additional details on related trends, view an infographic that outlines business leader thoughts about in-person and online video meetings.

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How TelePresence Improves Public Health Care in Chile

The hospitals in Talcahuano (Las Higueras), San Carlos and Linares have inaugurated Cisco TelePresence units -- the high-definition video technology that allows them to interact with their patients via tele-consultations, examinations and interviews. The TelePresence technology also helps them find solutions for cardiovascular pathologies, the main public health problem facing Chilean society that has resulted in great human and economic impact.

This HD video communication solution enables the hospitals in Linares and San Carlos to connect with specialists in Las Higueras Hospital in Talcahuano and carry out remote specialized consultations -- as a result accelerating the process of attending to patients.

As an example, now the time taken for a specialist's first response has been significantly reduced (from 12 months to 54 hours), as well as the time taken to resolve the problem that gave rise to the initial consultation (from as long as two years down to one month).

Enabling Just-in-Time Healthcare to Citizens

The Cisco TelePresence solution is a pilot project that forms part of and complements the Galileo Telemedical Program, developed in the Hemodynamic and Electrophysiology Unit of Las Higueras Hospital in Talcahuano as a solution for pathologies in the cardiovascular area, illnesses that produce long waiting lists and high mortality rates in Chile.

This managed solution is a contribution made by Telefónica Empresas -- based on Cisco´s technology -- in collaboration with the Talcahuano Health Services and Las Higueras Hospital, showing the positive impact of public-private partnerships in the implementation of technologies that can transform peoples' lives. This solution works through the Chilean Ministry of Health's communication network (administered by Movistar), and it includes three Cisco TelePresence System 1300 Series units.

This new system deployment facilitates effective and timely access to specialized health care for all citizens -- no matter where they live. It improves the quality of patient care and the efficiency of medical attention, helping to reduce or eliminate waiting lists for health care services.

Pilot Project Delivers Cost-Effective Treatment Options

It makes prioritization of referrals easier, improving the access of the most seriously ill patients to critical operations. It reduces the number of referrals to the specialty center, which saves money for the health care system overall, as well as for patients and their families. There are also benefits for the individual such as in terms of reduction in the number of trips needed to be made, hours or days missed from work or school, and avoiding disruption in family life.

It provides a solution within the system, optimizing current resources in an efficient way by empowering initiatives that are already present within the existing health care system.

Movistar is providing this Cisco technology as a pilot project at no cost to local health services in order to evaluate its impact and effectiveness. They do this as part of their corporate social responsibility initiatives in an effort to provide innovative solutions to the health care system's most critical needs and to alleviate the extra difficulties these hospitals have had to face after the 2010 earthquake due to the reduction of their operative capacity.

The Galileo Project is an initiative of Las Higueras Hospital's Hemodynamic and Electrophysiology Unit, unique in the country's health care services. It was promoted by Dr. Francisco Albornoz, and it defines a new modality of services to improve the quality of cardiovascular treatments by means of teleprocesses in medical administration. The project consists of Web-based solutions and integrates electronic joint consultations, electrocardiography in its different modes, and echocardiography, connecting remote sites of referrals to one specialty center, maintaining the concept of efficiency in clinical decision making and therapeutic resolution.

"The telemedicine project in Talcahuano is in line with the corporate e-health program whose objective is to make high-end technologies available for the benefit of every Chilean. Health is one of the great concerns, and this service will shorten waiting times, facilitate opportune diagnosis, and keep illnesses from getting worse. At Movistar we are very happy since, as strategic partners with the country and the government, we believe we are fulfilling the promise we made to our clients, that of making high-end technologies available wherever they are needed," said Pedro Pablo Laso, general manager of Telefónica Empresas.

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TelePresence Gains Momentum at Retailer Show

The National Retail Federation (NRF) released its 2010 economic forecast, projecting retail industry sales to increase 2.5 percent from last year. In contrast, total industry retail sales for 2009 had actually declined by 2.5 percent.

"As we continue to see signs of improvement throughout the U.S. economy in 2010, overall sentiment will begin to lift, making way for slight increases in consumer spending," said NRF Chief Economist Rosalind Wells.

While this past year certainly has been a challenging one for most retailers, they continue to seek out ways to apply business technology that helps to transform both their in-store communications and the way they interact and collaborate with their primary suppliers.

Earlier this month, the NRF 2010 "Big Show" attendees were able to once again experience Cisco TelePresence systems and AT&T services in action. The above video includes insights from some of the people who shared their perspective about how business video adoption will positively impact their customer experience and operational productivity.

TelePresence Provides Competitive Edge
"Telepresence gives us something up on the competition, by being able to leverage the expertise that we have in one of our stores, and now use it across an entire region" said David Bash, CIO at Nebraska Furniture Mart, after participating in the AT&T Telepresence Solution demonstration.

To thrive in today's economy, you have to be able to collaborate with colleagues, partners, and customers around the globe at a moment's notice. At the same time, you need to conduct your business in such a way that it enhances the quality of your key relationships.

In 2010, we'll likely see more creative applications of visual conferencing technology, as borderless collaboration continues to mainstream across all manufacturing industries and commercial service sectors.

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Video Communication Applications in Healthcare

Just as architecture has the power to transform a skyline, create new vistas and reshape the horizon -- so technology has the power to redefine healthcare, that's the theme of this year's HIMSS09 conference and exhibition in Chicago, Illinois this week.

Cisco video technology was featured in the AT&T Telepresence Solution booth on the exhibition floor. Visitors to the live video demo described their perspective on potential new applications, and Wendy Bohling, Senior VP at Magpie Healthcare had a more profound point of view. She said, regarding the business impact, "Telepresence changes and differentiates a hospital."

Quest to Improve the Patient Experience
Enhancing communication capabilities in healthcare can be equated to the potential for productivity and cost-reduction benefits, which are clearly valued. However, perhaps the emerging opportunities will now also focus on patient safety and the overall patient experience.

A recent study, conducted by Zogby International, sheds new light on the heavy toll that communication lapses take on patient care, clinical efficiency and the overall ability of nurses to do their job. More than 250 practicing nurses were surveyed. They included those in medical-surgical, emergency room, operating room, and critical care or intensive care unit service.

The Key Survey Findings Include:

Improving "people-to-people connections" offers the greatest potential for progress. The primary issue centered on the opportunity to improve communications among care team members. The time that nurses spend chasing other people to get answers was twice as great as the time they spend locating other resources.

• When asked how many minutes per shift are typically spent "chasing other people to get answers," up to 86 percent of respondents estimated wasting as much as two hours per shift.
• When asked about information needed to improve communication, 48 percent of nurses surveyed said, "care team availability and location" is most needed from a communications device at the point of care.
• In an open-ended question about the most significant challenge that a nurse's communications device could address, 56 percent of nurses said, "better communication between staff."
• About 60 percent of nurses in the study estimate they work up to 10 hours of overtime each week due to time wasted or lost trying to communicate with other staff.
  

If the visitor comments at the AT&T Telepresence demonstrations are an indication of an emerging trend, then the opportunities for hospital administrators, and other healthcare industry leaders, to apply the latest managed or hosted service offerings certainly looks very promising. Clearly, IT transformation is a rising priority.

Updates:
View the Day Two video of additional demo visitor commentary.
More demo visitor perspectives on the Day Three video coverage.

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Small Businesses: Your TelePresence Room Is Ready

Conventional wisdom says TelePresence -- the next-generation video conferencing technology -- is best positioned for enterprise customers with big IT budgets. But through affordable managed services, small businesses are poised to join the TelePresence party.

Fact is, TelePresence can benefit small businesses in many ways. It can allow entrepreneurs to meet virtually with business partners, customers, investors and even job candidates scattered across the globe -- without booking expensive business trips or depending on impersonal conference calls.

TelePresence creates a virtual environment where all participants feel as if they're seated in a single executive conference room. You can read each person's body language. You can maintain eye contact. And you can focus on deep discussions.


Only for Big Enterprises?
Now, for the challenge: The TelePresence industry is gaining momentum within large enterprises that want to improve virtual communications with customers, board members and other key influencers.

However, small business owners are not very familiar with TelePresence. And in many cases, small businesses couldn't afford the upscale conference room designs and back-end IT infrastructure that TelePresence requires.

A Better Option
Of course, entry-level TelePresence systems allow small businesses to get started with high-end video conferencing without breaking their budgets.

Still, there is another option that small businesses should consider: Managed TelePresence services, which are popping up in hotels, airport terminals and other places that involve business travel.

In a typical scenario, many upscale hotels will soon offer TelePresence conference rooms that you will be able to reserve for an hourly fee. Assuming the hotel chain has locations throughout the country and across the world, you'll be able to invite customers, partners and remote employees to participate in TelePresence sessions simply by telling them to drive to a local hotel.

The hotel, working in partnership with a service provider or major Telecom partner, will manage the entire TelePresence experience -- shielding the small business owner from any potential IT complexities.

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