SEATTLE -- Lisa Goodman was red-faced three years ago when she
tried to hold a videoconference with a big client and several of her
offices using equipment from Kinko's Inc. and Sprint Corp.
The system failed -- they lost contact with one of their
departments -- and the presentation flopped.
"It made us look like we weren't prepared," said Goodman, co-
founder of Service Intelligence Inc., a Seattle-based consulting
that helps companies such as AirTouch Cellular provide better
Thanks to improved technology, that hasn't happened again. And
Service Intelligence now plans to buy the latest type of
videoconferencing system, which is built into personal computers.
"It's been great for customer loyalty," said Goodman, who expects
to buy PC-based systems within a year. "The technology will improve
(more) in a year."
That's what Intel Corp., PictureTel Corp., Sony Corp. and others
are counting on.
PC-based videoconferencing is expected to see 70 percent annual
sales growth through 2001, according to Forward Concepts, a Tempe,
Ariz.-based market research firm.
Intel, which last year introduced such desktop videoconferencing
over the Internet, led the market with 40 percent of the 88,000
shipped worldwide in 1996. PictureTel followed with 38 percent,
Forward Concepts said.
The appeal of videoconferencing is that it lets people see and
talk to each other worldwide, connecting employees in California and
Paris, Oklahoma City students with East Coast colleges, even NASA
with Space Shuttle astronauts.
The frustration is that Goodman's experience of three years ago
The larger videoconferencing systems normally found in corporate
conference rooms, dubbed group systems, took a long time to live up
to expectations. And now that they've improved, cheaper PC-based
versions are gaining favor.
Such desktop systems are catching the eye of companies from Boeing
Co. to real estate agencies to banks.
With Intel's equipment, the Western Heights School District in
Oklahoma City lets professors at colleges hundreds of miles away
teach a class via video. And Western Heights students interview with
colleges around the United States about financial aid.
These uses, combined with the January introduction of Intel's MMX
multimedia chip that speeds up delivery of video and audio, will
the videoconferencing market take off, analysts said.
The global market will increase 40 percent a year to $5 billion by
2001 from $1 billion in 1996, Forward Concepts predicts. …