Cisco TelePresence
When we start talking about TelePresence, it's really radically different than anything that existed before. It's true life-size experience. We could be sitting in two different countries. I mean it would appear that we are sitting and talking and communicating just as easily as we are today. It's a solution that enables point-to-point communications like we have now, business conferences where you can have people around the globe communicating. It's really powerful and that it actually changes the way people do business and I would like to tell the story. We have had people in Toronto meeting with people in California and they actually moved chairs in Toronto when an executive walked in from California.
What a difference from traditional video conferencing -- because the solutions that have existed up until now have been a major disappointment to the people that deployed them. Because you drive over to this room, right and then you get there and you are looking at the screen with poor resolution, and there is a little dot on the screen, that's the person that's supposedly you are collaborating with or interacting with and you know you can't even tell who it is, man or woman, if they are awake or asleep, if they are multitasking or whatever, whereas the TelePresence solution, I mean you can look somebody in the eye, contracts have been signed over it. And so, the combination of a Cisco TelePresence set of endpoints either two or more endpoints coupled with a network providing the optimal connectivity to really make that experience be very interactive and collaborative is unbeatable.
It is and it only works because of the network. Because if Cisco runs its TelePresence over a network, thank you very much and literally it's a real time experience, right, I mean you are there. And so, all of the things that we as customers take for granted are there but you need to be able to ensure that the timing and the interactivity is just what we are having right now but there is no difference whether I am sitting next to you here or we are sitting literally across the globe.
When you were talking before about utilization, I think it's probably one of the testaments of TelePresence. The industry shows that utilization for traditional video conferencing is about 4%. Nice video conferencing equipment sits there; and nobody bothers to go down to use it. Meanwhile Cisco has deployed hundreds of rooms globally.
Cisco TelePresence average utilization right now is around 45% but there some places in major business centers like London, New York, San Francisco, Hong Kong where 8 rooms of 10 are actually used over 130%.
I think we are going to continue to see that transformation because once the rooms are deployed, people start getting used to them and they are so easy to learn, that's the thing that's most amazing to me about it. Just one button to push.
One button to push, you are online and you are interacting as if you are there. So thinking about people who can now do 4, 5, 6, 8 different cities as it were rather than waiting a line at the airport, going through security, losing the productivity, you know the safety risk, not to mention the impact on the environment from all of that jet fuel and everything, but particularly the productivity benefits and the ability to then collaborate much more easily and whether it's a company that's looking over engineering designs collaboratively interacting with manufacturing executives and making an important contract negotiation or business decisions either within the company or across the company, solutions like this will really transform the way in which we do business.
The next phase of TelePresence is the ability to not just go within a company, but the ability to talk among companies. So true business to business. So literally you could be at a facility, I can be at a Cisco facility, we can have another partner at another facility, we all could meet at the touch of a button.
Or a consumer package goods company could be talking to their retailers or a manufacturer could be talking to their distributors, it could be any types of combinations like that.
One of the really important stats is the fact that over 70% of communication, as you know, is visual, not auditory, and therefore the ability to do that accelerated decision making and look someone in the eye, can you deliver, are you going to deliver that on time, can I count on you? What a difference actually being able to see someone either sweat or smile when you ask that question. So it really transforms the nature of business decision making.
It requires the TelePresence, which is from Cisco and it assures entry into a whole new world of collaboration.
What a difference from traditional video conferencing -- because the solutions that have existed up until now have been a major disappointment to the people that deployed them. Because you drive over to this room, right and then you get there and you are looking at the screen with poor resolution, and there is a little dot on the screen, that's the person that's supposedly you are collaborating with or interacting with and you know you can't even tell who it is, man or woman, if they are awake or asleep, if they are multitasking or whatever, whereas the TelePresence solution, I mean you can look somebody in the eye, contracts have been signed over it. And so, the combination of a Cisco TelePresence set of endpoints either two or more endpoints coupled with a network providing the optimal connectivity to really make that experience be very interactive and collaborative is unbeatable.
It is and it only works because of the network. Because if Cisco runs its TelePresence over a network, thank you very much and literally it's a real time experience, right, I mean you are there. And so, all of the things that we as customers take for granted are there but you need to be able to ensure that the timing and the interactivity is just what we are having right now but there is no difference whether I am sitting next to you here or we are sitting literally across the globe.
When you were talking before about utilization, I think it's probably one of the testaments of TelePresence. The industry shows that utilization for traditional video conferencing is about 4%. Nice video conferencing equipment sits there; and nobody bothers to go down to use it. Meanwhile Cisco has deployed hundreds of rooms globally.
Cisco TelePresence average utilization right now is around 45% but there some places in major business centers like London, New York, San Francisco, Hong Kong where 8 rooms of 10 are actually used over 130%.
I think we are going to continue to see that transformation because once the rooms are deployed, people start getting used to them and they are so easy to learn, that's the thing that's most amazing to me about it. Just one button to push.
One button to push, you are online and you are interacting as if you are there. So thinking about people who can now do 4, 5, 6, 8 different cities as it were rather than waiting a line at the airport, going through security, losing the productivity, you know the safety risk, not to mention the impact on the environment from all of that jet fuel and everything, but particularly the productivity benefits and the ability to then collaborate much more easily and whether it's a company that's looking over engineering designs collaboratively interacting with manufacturing executives and making an important contract negotiation or business decisions either within the company or across the company, solutions like this will really transform the way in which we do business.
The next phase of TelePresence is the ability to not just go within a company, but the ability to talk among companies. So true business to business. So literally you could be at a facility, I can be at a Cisco facility, we can have another partner at another facility, we all could meet at the touch of a button.
Or a consumer package goods company could be talking to their retailers or a manufacturer could be talking to their distributors, it could be any types of combinations like that.
One of the really important stats is the fact that over 70% of communication, as you know, is visual, not auditory, and therefore the ability to do that accelerated decision making and look someone in the eye, can you deliver, are you going to deliver that on time, can I count on you? What a difference actually being able to see someone either sweat or smile when you ask that question. So it really transforms the nature of business decision making.
It requires the TelePresence, which is from Cisco and it assures entry into a whole new world of collaboration.
