Continuing its push beyond networking equipment, Cisco Systems has burst into the video-conferencing market with an expensive system that offers three high-definition video screens, multiple cameras and high-quality audio.Continuing its push beyond networking equipment, Cisco Systems has burst into the video-conferencing market with an expensive system that offers three high-definition video screens, multiple cameras and high-quality audio.

The aim – and brand – is “TelePresence”, designed to create virtual meetings so realistic that it seems meetings thousands of miles away are taking place in the same room. High-quality screens as well as speakers and HD cameras are positioned to catch every gesture and nuance and make users feel as if they are in the same room.

Natch, TelePresence doesn’t come cheaply. Consequently, Cisco says it can grow into a billion dollar business in five to seven years. Cisco’s chief development officer Charlie Giancarlo. said he wouldn’t be surprised if in three to four years consumers viewed Cisco as a video company.

But many analysts are sceptical, saying Cisco’s pricing is too expensive, and that other telepresence (lower-case) vendors have failed to convince more than a handful of companies that the investment is worthwhile.

Cisco says its TelePresence system has been in the works for nearly two years. It’s not alone. Competing (lower-case) telepresence products come from Hewlett-Packard with its Halo Collaboration Studio, Teliris, Polycom and LifeSize Communications.

Cisco’s basic TelePresence 1000, targeted at one-on-one meetings or small groups, costs US$79,000. TelePresence 3000, for larger meetings, is installed in the form of a small conference room with three high-definition screens which display participants at life-size. It costs US$299,000.

On top of that, they require high-bandwidth telecommunications, broad enough to handle HD video.

Only 10-15pc of Cisco’s customers have the necessary communication infrastructure, says Marthin DeBeer, VP of Cisco’s emerging markets technology group.

Lee Doyle, an analyst with IDC, estimates that fewer than 100 new-wave telepresence systems from all makers have been installed worldwide.

And Elliot Gold, president of TeleSpan Publishing, pours cold water on the gear, saying companies can adopt less-sophisticated forms of video conferencing for as little as US$7000.