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Video conference replacing traval?


Friday, April 11, 2003

Videoconferencing providers are reporting usage spikes up to 44 percent, driven by travel cancellations in the wake of the deadly SARS virus.

Just as the security industry latched onto the hysteria attached to September 11, companies affected by travel bans are turning to videoconferencing in their droves. Integrated Vision, one of Australia’s largest videoconferencing providers, has reported a 44 percent increase in queries since the outbreak, from an average of 90 calls per day up to 130.

“Of those, 20 specifically identified SARS as the reason for wanting to use videconferencing,” managing director Graham Williams told Electronics News Australia. “The spike after September 11 lasted only a couple of days -- this is much more sustained. The only other time this has happened is when [Australian airline] Ansett collapsed.”

Sydney, Australia-based provider ServicePoint expects a similar result. “There hasn’t been an immediate increase to the effect of September 11 or Bali but it’s still too early to tell,” ServicePoint operations manager Bill Warren said. “I think any travel threat effectively increases companies’ use of videconferencing so we’d expect demand to eventually filter through”.

Microchip Technology Australia and New Zealand district sales manager Tom Bianchi has already indicated his intention to harness videoconferencing. “We’re looking to install videoconferencing equipment to get around this inability to meet face to face,” Bianchi explains.

Earlier this week, Microchip -- which houses test facilities in Thailand -- attributed softer short-term demand to the disease. “The spread throughout Asia of SARS is inhibiting business travel and, in some cases, purchasing decisions, as many customers are temporarily closing plants to avoid the spread of the disease,” said Steve Sanghi, Microchip’s CEO, in a statement.

The Aberdeen Group also reported a number of closures and cancellations. Among them, Motorola Inc. has temporarily closed a mobile phone manufacturing facility in Singapore after its 305 workers were quarantined due to SARS exposure. Intel Corp. also warned that CEO Craig Barrett would skip an appearance at the Intel Developers Forum. And in a setback to intense competition from rival Nvidia, ATI Technologies CEO K.Y. Ho has postponed a trip to launch ATI’s new graphics processors. Additionally, both Sunplus Technologies and laptop manufacturer Compal have barred employees from visiting affected countries until the disease is under control.

By: DocMemory
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