23 October 2008

Pinto's Point

Video conferencing one way to travel virtually

By Jim Pinto

As travel costs rise and airlines cut services, large and small companies are rethinking business travel and face-to-face meetings. The technology has matured to the point where it is often practical, affordable, and more productive to move digital bits instead of bodies.

The emerging trend goes well beyond a reaction to rising travel costs and weakening economies. Past predictions that technology could replace travel have been frequent and premature. The main difference today is the technology is finally catching up to its promise. There is no single breakthrough, rather a series of advances in telecommunications networks, software, and computer processing.

The results can be seen not only in the expensive new telepresence systems, but also in more mainstream collaboration technologies—web conferencing, online document sharing, wikis, and Internet telephony. Companies of all sizes are beginning to shift to web-based meetings for training and sales presentations.

Of course, face-to-face meeting are not obsolete. It is simply that digital tools are making business travel more selective. One report estimates up to 20% of business travel could be replaced by videoconferencing today.

A range of companies offer the mainstream online communications and collaboration tools: WebEx, Citrix, Microsoft, IBM, and others, plus top-end products from Cisco, HP, and Polycom.

Completed telepresence rooms, typically with three huge curved screens (and a fourth screen above for shared work), custom lighting, and acoustics, cost up to $350,000. That cost is rapidly decreasing.

With more than 200 telepresence rooms, CISCO said it is avoiding $100 million in annual travel costs and reducing greenhouse gas emissions from air travel by 10%. HP said air travel for offices with telepresence rooms is down 25%.

The paradox in “telepresence” is it stimulates the richest form of human interaction—people talking to each other, face to face.

But, some agree it is not a perfect substitute. You do not learn about other cultures with telepresence. You get things from being there, over breakfast and dinner, building relationships face-to-face.

Some years ago, I made a televised speech from San Diego to a conference in Australia. That could not compare with the level of personal interaction and enjoyment I achieved during my recent Australia trip. The travel time was about 14 hours each way. But, the personal interaction was worth the journey.

Related links:

• Videoconferencing gains as travel costs rise:
  http://www.iht.com/articles/2008/06/03/technology/video.php
• Remote Conferencing on the Rise, Supplementing High-Growth Business Travel:
  http://www.procurement.travel/news.php?cid=remote-conferencing.Jul-07.23
• Face to Face Meetings – Rise of Web Conferencing:
  http://www.ivci.com/international_videoconferencing_news_071204-2.html
• Jim Pinto on Virtual Visits for the holidays:
  http://www.jimpinto.com/writings/virtualvisits.html

Behind the byline

Jim Pinto is an industry analyst and founder of Action Instruments. You can e-mail him at jim@jimpinto.com or view his writings at www.JimPinto.com. Read the Table of Contents of his book, Pinto’s Points, at www.jimpinto.com/writings/points.html.