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IP video is usually discussed in the context of wide area communications or providing videoconferencing between distant sites. But IP video is being massively consumed within office buildings and campuses. The bulk of IP video traffic is generated from video on demand and videoconferencing applications. IP video is a set of applications that are being layered on top of today's converged voice and data IP networks creating what we call "œconverged networking 2.0". IP video streams made up of multicast, unicast, one-to-one, one-to-many and many-to-many video flows are adding to an already large matrix of traffic patterns and logical networks, with unique requirements and attributes, which propagate throughout a converged network. Converged networking 2.0 supports this new set of applications, creating a single IP network which supports voice, data and video.

This new set of network traffic can increase complexity and drive up operational and network capital cost if not planned. Preparing a corporate network for IP video can be a daunting task, but it has to be confronted. If the corporate IP video plan is to stop employees from watching YouTube or the NBA finals or simply tweaking TelePresence, then the scope of the problem and preparation is not sufficient and the IP video wave that is upon the industry will be a dangerous tsunami to the corporate network. IP video offers a wide range of corporate value including economic and productivity advantages. For many business and IT leaders IP video is an important component in their corporate Green, risk management and physical security and marketing strategies.

When executives make network infrastructure acquisition decisions, they are making a long-term decision which has consequences for years to come. Savvy business and IT leaders look to their peers, industry analysts and suppliers for guidance.

IP Video Market Drivers

IP video services are being driven into corporate networks thanks to a wide range of value propositions. Traditional corporate video services are conference room style arrangements with dedicated video equipment linking two or more rooms over some geographic distance. To expand access to corporate video services, in the 1990s portable video equipment offered video conferencing on wheels, which turned any conference room into a videoconference facility. This era of video conferencing systems utilized narrowband channelized wide area network (WAN) facilities such as ISDN or T1 for transport, which limited their video quality and usefulness as this equipment could only be used in rooms with these WAN facilities installed. Further, conference scheduling, set-up and configuration was not intuitive and required dedicated operational staff, and thus expense. Broadcast video services were also employed by many large corporations to disseminate education materials and executive addresses. Most large corporations would purchase broadcast video services from a service provider to meet this need rather than build their own broadcast network. Broadcast and videoconferencing services were not integrated; they were physically and logically separate networks and services from both each other and other corporate networks.

And yes, during the 1990s and into this century desktop video conferencing product experiments were introduced largely by PBX manufacturers, telecommunication firms and internet start-ups but these lacked video quality, ease of use and subsequently broad adoption.

The value proposition for these video services was mainly economic. Reduced travel expense and increased productivity, thanks to travel time avoided and reduced time for decision making were often the value associated with video conferencing. Broadcast video was unique in that it was the only alternative for an executive to address all employees scattered throughout a large geographic area, or to train sales professionals on a new product/service; but these needs were sporadic at best.

Video communications as an overlay service are too costly and cumbersome to be massively consumed in the enterprise market. In point of fact, the video conferencing equipment market is a $1B plus market, one of the smallest in the networks and communications industries. But video conferencing and in particular IP video is fundamentally changing access, usefulness and quality as IP video is layered on top of a converged network.

Industry Poised For Massive Consumption of IP Video

IP video is the enabler for a wide range of new video communication and collaboration services. For example, over the past three years video conferencing has entered into the TelePresence era where video and audio quality is outstanding thanks to high-definition cameras, monitors and speakers while ease of use has been radically simplified. In addition TelePresense systems are IP video-based which simplifies connectivity to the point of connecting into high speed LAN infrastructure.

IP Video Value Proposition

With IP video, video is another application residing within a converged network. This offers unique and compelling advantages. First, application developers are now able to program and control video as it's accessible through a common IP network framework. This injects creativity and usefulness into the service. Second, access to video is expanded to the full IP network diameter versus a point-to-point and/or multi-point overlay network enabling all forms of video, be it conferencing, broadcast, collaboration, physical security, on-demand storage and retrieval, etc. to all employees, partners, suppliers and even customers.
Over the past several years there has been a large trend where internet-based consumer technology and services migrates into corporate IT operations. WLANs, social networking, instant messaging, Voice over IP (VoIP), the Web 2.0 platform and many more migrated to the enterprise market and now IP video is undergoing the same transition. The huge success of sites such as YouTube, video conferencing included in VoIP and IM services such as iChat, GoogleTalk, Skype, AIM, MSN messenger, et al have created a tipping point where social acceptability of video communications and consumption is now in place, accepted and required.
IP video's value proposition to business and IT leaders is multi-variable. IP video is delivering the traditional economic and productivity advantages discussed above and more. As energy costs rise, macro economic conditions worsen and airport travel security requirements consume more time spent per trip, IP videoconference benefits soar. Further, the avoidance of travel and associated energy consumption contribute to a reduced corporate and personal carbon footprint. Professionals now view video collaboration as a smart and respectful use of time and global resources. In short, IP videoconferencing solutions are socially acceptable and preferred.

In addition, IP video allows video content to be controlled and manipulated to deliver corporate value. For example, IP video with click-to-conference capabilities within unified communication platforms enables ad hoc video communications more easily. Corporate social networking tools, which utilize stored and real-time video, increase workgroup productivity and collaboration. As corporations have invested heavily in branch office resources distributing human and corporate assets closer to customers, IP video will not only keep employees connected but will integrate physical security and surveillance of remote sites as well as offer new ways to generate revenue through digital signage where customers gain video access to executives who can sell products and services.

In the next several weeks we'll publish an industry report that provides a framework describing IP video's organizing principle impact on corporate networks with planning guidance for business and IT leaders to best prepare corporate operations for a new era in IP video-based collaboration, education and social networking.