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Cisco sees business advantage under the volcano

By | April 19, 2010, 6:34 AM PDT

When life gives you lemons make lemonade. But what can you make of volcanoes?

Cisco wants to make business transformation from it.

The Iceland volcano comes just as Cisco is completing the acquisition of Tandberg, a Norwegian maker of video conferencing equipment. It is seizing the chance to dramatically expand the video conferencing market by making its Telepresence Interoperability Protocol (TIP) open source.

Ash clouds from the volcanic eruption in southern Iceland grounded Europe’s air fleet last week, leading to a spike in video conferencing demand. Cisco hopes its moves will make that spike a permanent feature.

Cisco can now afford to let its rivals connect with its Telepresence technology because, with the Tandberg deal, it becomes the largest maker of video conferencing equipment. It already was a leader in satellite technology with its Scientific-Atlanta unit.

Cisco has been advertising the quality of its Telepresence technology with television ads, by branding its use on news shows, and by issuing white papers touting its use in time-sensitive areas like health care.

It has been hampered by ads that make it appear a video conference is just companies spending millions so people can look at one another on screens, but Telepresence also supports the sharing of large files, whiteboards, and other meeting essentials.

All this costs serious money. Cisco Telepresence rooms can have the technology of video studios, with 1 Gbps Ethernet, Quality of Service to assure low-latency connections, and plasma screens up to 65 inches across. Telepresence has been hampered by these high technical requirements.

So Cisco has been trying to reduce them. As the picture above (from the Cisco news room) shows, the company hopes to make teleconferencing cubicle-sized, with re-sellers using as much of a company’s existing screens and gear as possible. Taking TIP open source will help with that.

Cisco has been working on videoconferencing for years but such cutting-edge technologies don’t really take off until disaster strikes and people are forced to depend upon them.

Just as transit strikes and road closures spur permanent increases in telecommuting. Cisco hopes the same thing happens here with high-end videoconferencing.

Cisco, you’re going out there as an expensive, over-hyped technology, but you’ve got to come back a star!

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor, Technology

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

Follow him on Twitter.

Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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RE: Cisco sees business advantage under the volcano
Cisco should set up video conferencing booths in the airports around the world for the
thousands of stranded passengers. The people manning the booths could potentially end
up with greatly expanded bottom lines! grin
Posted by motorhead1979
19th Apr 2010
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RE: Cisco sees business advantage under the volcano
Thanks for the article, Dana!

As business travel continues to be impacted by the Icelandic volcanic eruption, Logicalis has also opened its network of internal Cisco Telepresence suites to customers across the globe, allowing organizations to conduct ?face to face? meetings.

Logicalis has Telepresence suites in San Paulo - Brazil, Buenos Aires - Argentina, Farmington Hills - Michigan, USA, and in Slough - United Kingdom.

Flights are expected to take weeks to return to normal, and we would like to assist our customers in any way we can, starting with opening up our Telepresence suites on both sides of the Atlantic. You can read the full article here, http://bit.ly/9LRHUr.
Posted by logicalis
22nd Apr 2010
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