Lifesize Communications Inc, a division of PC peripheral-maker Logitech, has announced its intentions to capitalise on the video conferencing market.
The company wishes to move into the growing industry, which is set to double in size over the next five years.
Its forecasted profits are expected to grow by 15 per cent this year, which makes the company’s expansion two-to-three times faster than the market’s growth rate today.
Lifesize Communications is Logitech’s fastest-growing business, making $36.5 million (£22.34m) in Q1 this year. This accounts for a revenue increase of 34 per cent, Bloomberg reports.
“We’re seeing very, very rapid growth in video conferencing,” said Craig Malloy, the company’s chief executive officer. “We’re going to piggyback on key trends and accelerate our growth.”
Malloy says he sees video conferencing as a “natural extension” to Logitech’s core business as a peripheral developer. The company is likely to bring video communications into the mobile and tablet market; particularly as in July the firm bought Mirial, a specialist in mobile and tablet software. It is likely that Android and Apple handsets or tablets will be the company’s main focus.
The shift in focus to video conferencing is a “great way” to save time and money, comments Iwona Petruczynik, a Warsaw-based analyst at Frost & Sullivan. Research from Frost.com indicates that video conferencing endpoint revenue will hit $4.15 billion (£2.54bn) in 2016 from $1.66 billion (£1.02bn) last year.
“Companies are looking for ways to reduce costs due to the financial crisis,” said Petruczynik. “People are moving away from in-person meetings to save money and time, and this is a great way to do it.”