Summary
By purchasing LifeSize Communications, Logitech gets to bundle LifeSize's HD standards-based videoconferencing codec with Logitech HD webcam. This should, overtime, dramatically lower the price-point of standards-based videoconferencing end-points and expand the distribution of standards based videoconferencing end-points to the Big Box Retailers that carry Logitech peripherials including Best Buy, Target, and Wal-Mart.
Analysis
http://www.telepresenceoptions.com/2009/11/logitech_acquires_lifesize_com/
I have been meaning to write about the future of desktop video and software codecs for a while ever since I got the latest from Marty Hollander at Vidyo and Bob McCandless at BrightCom over a month ago. Vidyo and BrightCom like many other players in the industry including Teliris use the Logitech Webcam Pro 9000 for their desktop implementations and I and many others have seen 720p video running at 60fps using a Logitech camera and Vidyo's software based codec. GBH Communications recently deployed over 10,000 seats of Vidyo + Logitech (scaling to an eventual 100,000 seats) for a large religious organization in what is probably the largest videoconferencing deal ever. I own a Logitech 9000 myself and used it recently to record this video for those interested in what kind of quality you can achieve with "Logitech equipment".
The future of videoconferencing is the software-based codec running on general purpose (albeit high end... for now) general purpose processors connected to a low-cost, high quality HD camera via a USB 3.0 connection. The $20,000+ plastic-camera-on-the-tv-set-on-the-desert-cart dedicated videoconferencing appliance is a business model with the lifespan of an alcoholic fruit fly chain smoking unfiltered camels. The singularity approaches...
Dr. Steve McNelley, co-founder of telepresence pioneer Digital Video Enterprise believes that we are not that far off from business users bringing their own codec (laptop...ultimately probably their iPhone...) into a telepresence environment where they plug into the camera platform(s) via USB 3.0, dial from their personal phone book, and connect out over a 50MBps wireless LTE connection. Dr. McNelley believes that the value in the industry will accrue to the best telepresence environments and display technologies as cameras , codecs, and network commodifies. Dr. McNelley is understandably biased as DVE's solutions are open platforms which can accommodate a software-based codec and a next generation Logitech camera as easily as they do traditional videoconferencing endpoints today.
The LifeSize acquisition is actually Logitech's 2nd videoconferencing acquisition. The company bought prosumer desktop videoconferencing company SightSpeed for $30MM in cash a year ago (Oct 28th 2008). The acquisition gave Logitech a prosumer videoconferencing platform to bundle with its prosumer webcams. The business model is "freemium" where you could use the personal platform Logitech Vid for free but if you wanted to upgrade to the enhanced features of SightSpeed Business...
http://www.telepresenceoptions.com/images/SightSpeed_LifeSize.jpg
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You had to pay for the enhanced features:
http://www.telepresenceoptions.com/images/SightSpeed_Business.jpg
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The major limitations of SightSpeed Business was that the videoconferencing client was/is only compatible with other SightSpeed business clients and not compatible with traditional standards-based videoconferencing and telepresence end points and enterprise video network infrastructure that is used to host multi-point calls.
Enter LifeSize Communications Stage Right
The LifeSize acquisition gives Logitech the industry's price/performance leading HD codec to bundle with its next generation HD USB 3.0 webcams that it no doubt has on the drawing board. I am assuming that the talented software engineers at LifeSize will have little problem porting over their standards-based videoconferencing client to run on the computer industry's next generation multi-core processors.
http://www.telepresenceoptions.com/images/LifeSize_Inside.jpg
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Couple that capability with Logitech's distribution muscle and all of the sudden you can purchase a fully functional standards-based HD videoconferencing end-point at every Best Buy, Target, and Wal-Mart in the world. Hell... Dell will even finance it for you... It comes with Logitech Vid for free, you can upgrade to SightSpeed Business if you need more features, or LifeSize if you like real horsepower and need to talk to the videoconferencing world. The new LogiSize solution will be fully compatible with a complete line of traditional videoconferencing appliances and LifeSize's telepresence offerings and I am betting that you will get the full catalog with every webcam purchased.
What does that mean for the Telepresence and Videoconferencing Industry? I am afraid that is going to have to be a consulting gig because it is 2:00AM in LA and I have been up since 5:30 AM in Washington DC and I have a conference to attend in the morning.
Congrats to Logitech, Craig Malloy, Vab Goel, Jeff Brody, and all the folks at LifeSize in Austin!
