Saturday, August 6, 2011

Economic Turmoil Affects Investment in Video

Interactive Media Strategies released a quite timely study conducted in Q1 2011 that measured corporate executives' financial outlook and how their relative positivity or negativity affected their plans for spending on video.  As one might imagine, only 6% of those with a negative outlook projected increased spending on video against 64% projecting less money spent on video.

39% of executives surveyed who were expecting their finances to improve projected increased spend on video, versus 29% who projected a decrease.  Unfortunately, the study did not provide the percentage of respondents who were expecting finances to decline versus the percentage of respondents expecting finances to improve.

The above results not all that unexpected, but they lay the foundation for this very interesting data: the study measured different types of executives and how their positions within the company influenced their outlook about whether macro-economic factors would impact spend on video.

46% of those in Accounting and Finance, 43% of those in Training, and 42% of Top Executives responded that macro-economic factors had "No Impact" in their decision to purchase video technology.  Overall, 40% of non-IT personnel responded that the economic climate would have no impact.

However, only 29% of IT executives responded that the economy would have no impact.

I attribute this disparity to senior executives and heavy video users (like training executives) being more focused on the ROI and cost reductions that video brings to the enterprise, while IT executives are more focused on the cost of maintaining video delivery infrastructure and the impact on their budgets.

I believe the path to bridging this gap is to leverage the cost savings of the cloud to free up IT resources and still deliver the benefits of video to the business users.

For example, MediaPlatform's PrimeTime application for video asset management leverages public or private clouds to host our application and store all of the video assets.  For example: for clients that have Riverbed, we use a cloud instance of the Riverbed Steelhead to reduce bandwidth usage between the cloud and the network by 80%.

2 comments:

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