50 Years of Growth, Innovation and Leadership

Driving Productivity with a Video-Enabled Workforce

A Frost & Sullivan White Paper Sponsored by Vidyo www.frost.com

Frost & Sullivan

Introduction............................................................................................................................. 3 The Changing Face of Business and the Video Imperative................................................. 3 Challenges with Traditional Video Conferencing and the Need for a New Architecture... 5 Delivering Video to the Personal Endpoint........................................................................... 5 Workflow Integration Speeds Adoption............................................................................... 6 The Vidyo Alternative............................................................................................................. 7 Customer Examples and Use Cases..................................................................................... 8 Conclusion............................................................................................................................... 10 Bibliography............................................................................................................................. 10

CONTENTS

Driving Productivity with a Video-Enabled Workforce

INTRODUCTION Few businesses have remained untouched by the evolution of the networked society, distributed work teams, and a growing trend for work shifting that allows people to intersperse work and personal lives seamlessly. Leading organizations are developing approachesfrom social networks to video conferencingto break down communication silos among dispersed teams and promote productivity through better collaboration and knowledge-sharing. Video conferencing offers business leaders significant opportunities to increase their competitive edge by driving higher productivity and growth, while reducing costs. There is no doubt that video conferencing has become a well-established productivity-enhancing tool for thousands of organizations today. However, for several years now, it has remained synonymous with meetings confined to conference rooms and board rooms for group collaboration. This has largely kept the reach of video conferencing restricted to a chosen few in the enterprise. Technology and network limitations have prevented the spread of video to where the people and processes truly areat desktops and mobile devices. With the burgeoning demand for video everywhere, all of this is changing. The growth of mobile devices and consumerization has made BYOD (bring your own device) a reality for most organizations. Evolving software-based, non-transcoding architectures that enable virtualization and cloud deployments and work across any endpoint over any network are paving the way to make video conferencing a reality for mass adoption and are doing so at low costs to users. Furthermore, the integration of video directly into the workflows and applications, which employees use in the course of their jobs, is streamlining communications and unlocking greater productivity and faster decision-making. This paper examines the imperative to move to personal video conferencing; discusses the limitations of traditional video conferencing technologies when it comes to supporting a large population of users; analyzes the potential for integrating video into communications tools, applications, and workflows; and presents one vendors solution for more effective, scalable, and affordable video conferencing to create a unique competitive advantage. THE CHANGING FACE OF BUSINESS AND THE VIDEO IMPERATIVE Businesses today are operating in an intensely competitive, distributed and volatile economy. There is a mounting need to accelerate growth at lower costs, putting demands on existing resources. As a result, business leaders and key decision-makers must find innovative ways to boost productivity. To complicate things further, the talent pool of information workers is shrinking. Leading organizations consistently cite the ability to attract and retain talent as their top challenge. Video conferencing has proved to be a game-changer. It is helping businesses across the globe in several ways. Accelerate decision-making and shrink development cycles by enabling businesses to capitalize on high-quality, real-time visual communications rather than passive and long-drawn-out email and telephone communications.

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Maintain intense engagement through face-to-face interactions with culturally diverse and physically distant teams by removing the productivity drag of having partially engaged participants, often hiding behind the multi-tasking curtain. Foster open innovation that taps into the power of internal as well as external think tanks, allowing organizations to reach outside their four walls to draw on the intelligence of larger communities. Implement better knowledge-sharing and management by providing the right connections to the right people in real time and non-real time through recorded and archived collaboration sessions. Attract a more talented pool of knowledge workers that value flexible and virtual work environments. Accommodate changing work expectations of the next generation of workers, including the Digital Natives and Millenials, who demand more engaging and flexible work experiences. In a study conducted by Germanys Fraunhofer Institute, which tested the impact of video conferencing on employee behavior and productivity, it was found that video conferencing when compared with email and telephone communications delivers more productive meetings, makes communications clearer, and improves team spirit.1

In a recent Frost & Sullivan survey of C-level executives, 85 percent of the respondents indicated that their investments in video conferencing were driven by productivity benets. Fifty-eight percent responded that faster decision-making was the key reason for their investments.

A large number of decision-makers are citing productivity improvements as a key driver. In a recent Frost & Sullivan survey of C-level executives, 85 percent of the respondents indicated that their investments in video conferencing were driven by productivity benefits.2 Fifty-eight percent responded that faster decision-making was the key reason for their investments.3 Exhibit 1 The Video Imperative: Key Factors Driving Productivity

Attract a Talented Pool of Knowledge Workers

Align with the Needs of Digital Natives

Implement Better KnowledgeSharing

Foster Open Innovation

Maintain Intense Engagement

Accelerate Decision- Making

Source: Frost & Sullivan

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Driving Productivity with a Video-Enabled Workforce

CHALLENGES WITH TRADITIONAL VIDEO CONFERENCING AND THE NEED FOR A NEW ARCHITECTURE Higher productivity and cost-savings are the catalysts that have spurred the adoption of video conferencing. The key question is, if video provides all of these benefits, why has it not reached mass adoption? The reality is that video conferencing today is anchored more in the past than the future, where it needs to address the changing nature of todays global, virtual and mobile workforce. Traditional video conferencing deployments have been impeded by several factors. Proprietary and expensive hardware has confined video to conference rooms and telepresence suites. Reliance on QoS-enabled networks has added cost and impeded ability to deliver reliable video to unmanaged networks, including public Internet and mobile networks. Transcoding architectures used for multipoint video conferencing calls add significant costs and insert latency. Reliance on dedicated desktop video conferencing appliances is out of sync with the growing consumerization and BYOD trends that demand anytime, anywhere access to business applications over any device. Dedicated fixed-capacity infrastructure architectures cannot be virtualized and therefore are expensive to deploy in an as-a-service model. Video conferencing requires users to step outside of their workflow and business processes. As long as video conferencing will remain a siloed application, it will not become mainstream. DELIVERING VIDEO TO THE PERSONAL ENDPOINT In the knowledge economy, work is not a destination or a place people goit has become an activity. The power of technology lies in bringing work to wherever people areat offices, customer sites, homes, hotels, coffee shops or airportsenabling open and flexible work environments. Many organizations today are sitting on investments in video conferencing that are underutilized because they are not aligned with the needs of end users. These existing video conferencing users, as well as new adopters, need to transform their technology adoption by thinking outside-in; in other words, starting with what their employees really need to stay competitive, rather than fitting old investments into new and evolving work environments. To enable knowledge workers to be more productive, it is critical to deliver video conferencing over personal endpointsdesktops as well as mobile devices. The concept of congregating in meeting rooms for group collaboration, while still powerful, is not practical all the time.

In the knowledge economy, work is not a destination or a place people go it has become an activity. The power of technology lies in bringing work to wherever people are.

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Employees need nimble communications that adjust to varied devices, infrastructure, and networks. Consequently, there is a need for a new architecture that ensures: Ability to run on everyday devices and clients over virtually any compute platform PC, Mac, Linux, iOS or Android smart phones and tablets. Support for varying network conditions, including public Internet and lossy wireless networks, without the risk of performance degradation. A highly scalable and distributed multipoint infrastructure that is capable of extending the reach of video to thousands of endpoints. A software-centric approach that enables the virtualization of infrastructure to power opex-based interoperable cloud services for companies of all sizes, including small and mid-size businesses. Seamless interoperability across multiple devices so organizations can leverage their existing investments in H.323 and SIP-based room systems. Open and extendable APIs and SDKs for seamless integration with line-of-business applications, development of customized mobile apps, and integration with third-party communication solutions for extended B2B reach. Prices that enable mass deployment aligned with the price points of todays desktop and mobile communication applications. WORKFLOW INTEGRATION SPEEDS ADOPTION Research has shown that a majority of productivity growth for businesses comes from product and process innovation. One major barrier to user adoption of video conferencing comes from the fact that it has remained a technology silo, cut off from the everyday workflows and processes that knowledge workers use. Stepping outside of these processes puts a tremendous drag on productivity, diminishing the true benefits of collaboration. Consequently, there has been a deep-seated reluctance among users to participate in video calls. IT mangers and business leaders can overcome this hurdle to adoption by embedding video directly into business applications, workflows, and communication environments. By leveraging open APIs, SDKs and other developer resources, businesses can encourage development and customization, utilizing rich integrations with CRM, learning management systems, training tools, custom meeting portals, specialized in-meeting applications, and integration with mobile devices, all resulting in greater stickiness for video conferencing.

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Driving Productivity with a Video-Enabled Workforce

THE VIDYO ALTERNATIVE Over the past several years, newer approaches to video conferencing have not only removed the technical barriers to mass adoption, but they also offer a significant shift in pricing and deployment models. Vidyo offers an alternative approach to expensive, network-dependent video conferencing solutions. By leveraging its patented architecture, built on H.264 Scalable Video Coding (SVC)based compression technology, Vidyo dynamically optimizes performance for each endpoint. This unique approach eliminates the need for transcoding MCUs while offering a simple and high-quality communications experience. Vidyo can be scaled for large-scale deployments to enable the benefits of personal video conferencing over desktops and mobile devices over any network, including congestion- and packet-loss-prone Internet and wireless connections. Moreover, Vidyos approach changes the economics of video deployments, reducing the cost of high-definition personal video conferencing and bringing it down to the range of enterprise audio conferencing. Vidyos open APIs provide integration with business applications and workflows that incentivize users to stay within the comfort zone of their routinely used applications and processes. The VidyoWorks platform allows organizations, system integrators, and software developers toVidyo-enable applications and workflows. TheVidyoWorks platform includes core intellectual property, APIs and SDK, and a development framework that allows embedding video into: Unified Communications tools from vendors such as Microsoft, Mitel, Shoretel, IBM and others. Webcasting tools such as ON24. Desktop virtualization (VDI) environments such as VMware View and Citrix Xen Desktop. Workflow applications from companies such as AMD Healthcare Solutions and Philips Healthcare.

Vidyo is intuitive, easy to learn, and works at the push of a button. Right from the VidyoPortal, I can have a video conference from any location. We can go online at an Internet caf or in an airport lounge. Vidyo gave us the ability to connect using different devices without the need for any dedicated hardware.
Hideki Roldan Fukutake

IT Infrastructure Manager, Farmacias del Ahorro

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Exhibit 2 VidyoWorks Enables Application and Workflow Integration

Source: VidyoWorks

CUSTOMER EXAMPLES AND USE CASES Retail - Farmacias del Ahorro The Company Farmacias del Ahorro is Mexicos leading pharmacy/retailer, with 1,086 pharmacies across 33 cities. The Challenge To integrate communications between different areas of the country and to enable virtual and instant communications for executives that were spending more time on the road due to the fast pace of expansion. The Solution Farmacias del Ahorro wanted a video conferencing solution that employees can use directly from their desktop or mobile devices without the need to go to physical conference rooms. By using a combination of VidyoRouterTM, VidyoGatewayTM and the VidyoPortalTM solutions, Farmacias del Ahorro was able to integrate video conferencing rooms and mobile devices, iPads, and Android smart phones. Vidyo allows Farmacias to scale video conferencing to hundreds of endpoints across its national operations at a low cost. Consequently, it has increased the number of Vidyo licenses from 75 to nearly 400. The company is also using Vidyo to support centralized management of its new-store construction projects, where time is money and decisions must be made quickly based on accurate project details.

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Driving Productivity with a Video-Enabled Workforce

Manufacturing Silvalea The Company Silvalea, Ltd., is a UK-based firm that designs and manufactures specialized medical slings used by hospitals and healthcare service providers during the transfer of patients using hoists. The Challenge To reduce the logistics challenges and project delays resulting from the growing demands on its business leaders to manage projects and teams in multiple locations, and to provide timely interaction and information-sharing across its global locations. The Solution Silvalea adopted VidyoRoom, VidyoDesktopTM, VidyoMobileTM and VidyoReplayTM based on three main considerations. It found Vidyo offers a high-quality experience for every participant and every meeting. Secondly, it enabled users to meet over ordinary IP networks, without the need for expensive hardware or dedicated bandwidth. And third, Vidyo offers multi-party video conferencing that made it easy for Silvaleas employees, distributors and customers to connect from a variety of endpoints and locations. Today, Silvalea attributes a large measure of its success to strong business relationships nurtured by effective video collaboration. Law Practice & Legal Services NextGen Reporting The Company Headquartered in Philadelphia, NextGen Reporting is a legal-services firm that specializes in delivering technology to streamline the deposition process for attorneys and their clients and court reporters. It provides services to law firms, corporations, and insurance companies. The Challenge To overcome obstacles to effective court reporting and to improve the litigation process for successful case resolution. The Solution NextGens quest for a video conferencing solution led it to Cenero, a service provider offering a full-featured deployment of Vidyo as a service. The Vidyo platform offers the ability to have remote depositions that helped NextGen Reporting transform the litigation process and gave it the flexibility to serve clients without the need to set up expensive, custom-built rooms or special-purpose equipment. Its clients also connect using the VidyoMobileTM app on their iPads or Android tablets. The Vidyo platform has helped NextGens clients with opportunities for direct and indirect cost-savings. They save thousands of dollars in air, hotel and cab costs when depositions can be done remotely. Indirect cost-savings come through more-informed decision-making.

The quality of the Vidyo experience is very natural, not only for personal interaction, but also for sharing detailed product schematics and renderings. Nothing gets lost in translation. Pauline Guilfoyle, Managing Director, Silvalea

The litigation process generates big, static documents during depositions. If a witness is nervous, evasive or belligerent, it doesnt become part of the written record. Vidyo captures all the non-verbal cues, the gestures, body language and eye contact, with telepresence quality. Its a powerful tool that carries a lot of weight in courtrooms and in settlements. David Noteware, CEO, NextGen Reporting

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CONCLUSION Businesses are undergoing a fundamental change today. In the past few years, cost reduction and cost management have been the focus. While no one expects this to change, there is growing need to increase value and drive growth through enhanced productivity. As a result, it is critical that businesses deploy collaboration technologies that drive sustainable growth and productivity gains; foster innovation; and build agile and globally responsive organizations. Video conferencing will play a critical role in empowering the high-performance workplace of tomorrow. It is helping businesses get battle-ready for the demands placed by todays complex, competitive and economic challenges. There has never been a greater need or a better time to start. BIBLIOGRAPHY
1 Telecompetitor, Study:Videoconferences Hold Users Attention Longer than Other Options, November 7, 2012. 2 Frost & Sullivan, 2012 North American CXO Investment Plans for Communications and Collaboration Applications, January 2013. 3 Frost & Sullivan, 2012 IT Decision Makers Views on the Evolution of Enterprise Communications, January 2013.

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