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 LifeSizeï¿¼s 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 companyï¿¼s video conferencing systems will move in the future.