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Vidyo Ups Its Ante With Lower-Cost Multiscreen Telepresence

By Chad Berndtson
June 08, 2011    12:40 PM ET

Page 2 of 2

According to Rob Hughes, senior vice president of worldwide sales and support, another benefit of the way Vidyo's technology is deployed is that solution providers can often demonstrate the technology remotely using customers' desktops or existing systems.

"It's a visual communication sale they can demonstrate and make without even having to go into the market," Hughes said.

Vidyo now has about 200 channel partners, and according to Hughes, will continue to grow its partner base gradually.

"It's not a good phase to be overdistributed," Hughes said. "We're at a stage of our development where a tightly controlled channel program is really important."

For some partners, the APIs and software development kit (SDK) Vidyo offers is the heart of Vidyo's appeal -- the app development aspect, in other words, is a big part of the value-add for customers.

"They're not overdistributed and they have a unique technology," said Tracy Mills, president of IDSolutions, a Noblesville, Ind.-based solution provider. "They've done a real nice job creating the ability to do integration around their stuff."

IDSolutions is a reseller of Vidyo's products, but also a service provider that uses Vidyo as the backbone for its branded video phone service. That solution, according to Mills, was built using Vidyo APIs.

Mills said he came into contact with Vidyo having known a lot of its executive team from prior assignments. IDSolutions' video sales have grown significantly in the first half of 2011, Mills said, and Vidyo is the line growing fastest. IDSolutions carries videoconferencing technologies from the space's major incumbent players, but Mills said he sees Vidyo's appeal in its flexibility.

"The ability to go anywhere with Vidyo, from mobile to PC -- that's what the game-changer is," said Mills, a 15-year veteran of the video space. "I see it as additive, because they're doing things that are different."

Vidyo, which has raised about $74 million from venture capital and emerged from stealth mode in 2007, has made steady inroads into a market dominated by Cisco and Polycom, but where competition from alternatives like LifeSize Communications is also fierce.

It hasn't gone unaffected by the wave of recent M&A moves sweeping the video space. Last week, Polycom confirmed it would acquire HP's Visual Collaboration portfolio likely spelling the end of Vidyo's OEM agreement with HP.



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