LifeSize and LG Collaborate on Video Conferencing Solution

Video conferencing has been working its way down to the desktop. In response, LifeSize, a leading video conferencing supplier, and LG Electronics, a primary vendor of HD TVs, teamed up to deliver a high resolution, desktop video conferencing system.The LG Executive features a 24-inch HD display with 1920 x 1080 resolution. The product includes an integrated 720p camera, microphone array and speakers. The vendor claimed that set up requires only the connection of two cables In addition, the product is designed to work with Unified Communications applications from vendors, such as Alcatel-Lucent, Asterisk, Avaya, Broadsoft, Cisco, Microsoft and Shoretel. The LG Executive costs $2,999 and is scheduled to ship in the third quarter.

LifeSize has some success marketing relatively low cost (about $10,000) HD video conferencing systems. Consequently, Logitech purchased the video conferencing vendor in November 2009 for $405 million. The move was a bit of an aberration since Logitech had mainly focused on supplying peripherals to consumers and LifeSize had more of a business focus. How the parent and acquired company will meld is an open question.

At that time, Cisco also decided to acquire Tandberg, which underscored the growing importance of video conferencing systems. Since then, video conferencing suppliers have been jockeying for position. Cisco has been integrating the Tandberg products into its line. Polycom has been signing OEM deals with other suppliers, such as HP and Microsoft.

LifeSize, which has been in business since 2003 and has more than 9,000 customers, needs to keep pace, and the LG agreement offers a few potential benefits. Based in South Korea, the vendor, which has developed a broad line of computers, peripherals, and phones, could boost LifeSizes international presence. In addition, the new video conferencing system may be marketed by retailers, such as Best Buy, which have been trying to increase their influence among small and medium businesses. However, questions remain about how the LifeSize/Logitech merger will pan out and in what direction(s) the companys video conferencing systems will move in the future.