IVT Raises $5.5 Million for Webcasting Software

As the article appeared in TechCrunch...

IVT, a company that produces enterprise-friendly webcasting software, has raised $5.5 million in Series B funding from Syncom Venture Partners with Barshop Ventures, Monitor Ventures and Tudor Ventures participating in the investment round. IVT raised $3 million in Series A funding in 2006.
IVT’s SaaS offering not only helps power webcasts, but also converts multimedia files, such as slideshows, into viewable videos for the web. IVT also offers a YouTube-like hosting and social media site for companies to disseminate videos and webcasts. And the startup has a number of prominent companies that use its webcasting software including Oracle, Dow Chemical, IBM and NEC.

Enterprise Communications - Meet IVT

Here is a link to a recent post by Roger Courville on his "The Virtual Presenter" blog. It reads

A VFAQ (VERY frequently asked question) I get is “what’s the difference between web conferencing, webinars, and webcasts?”

The short answer, these days, is “not very much and a whole bunch.”

Seriously, the lines have blurred from the days that “webcasting” was akin to broadcasting (using streaming media) with virtually no interactivity, whereas web conferencing was (and remains) live, totally realtime (you don’t want any delay when you’re talking on a phone conference, right? In many use cases, you don’t on the web either).

Webinar is simply a portmanteau of web seminar – arguably a use case rather than a technology. That is brief, but it’s as deep as I’m going as I introduce IVT and their enterprise video communications.

I recently had the pleasure of speaking with Mitch, Hugh, Jim, and Ryan, all at the same time. In addition to the knowledge and passion and history (Hugh’s a fellow ex-Microsoftie with some common connections), what I’m most enthused by is their clarity of mission.

Hello software

First, IVT’s a software company. You can host the software, but for reasons I’ll not get into, you want to take advantage of the fact that they host the software for you. What’s interesting here isn’t a “right or wrong,” it’s a commitment to a business model. Many (if not most) companies who have solutions for webcasting also provide professional production/event management services. IVT is committed to their robust partner community who deliver value-added services atop the IVT platform. Again, this isn’t a right or wrong, but you have to appreciate focus.

Hello production tools

It’s hard to tell you how important the backend of a product is. It’s what economists call an “experience good” …you have to have been there to get it and appreciate it. As it just so happens I spent many years running organizations in the production business, let me say the two words that will bring any accountants to their needs and get the producers all excited: labor and labor. Labor is expensive. Technology, especially over time, often gets less expensive. If you’ve ever produced an event, let alone a bunch of them, you know that the project management time can create a big sucking sound in your budget. This is where producers get excited… not only will they find the flexibility on the back end of IVT’s platform a joy when meeting numerous and disparate client/stakeholder needs, but it’ll save them time.

Hello customization

Okay, so many different solutions offer degrees of customization, but far fewer have down-to-the-pixel capabilities. When clients demand that, you’ve got to deliver. Further, there’s customization of user experiences, such as different tools you might make available to a presenter versus what the marketing department sees when they need to pull down a report. And then there are web services for the data integration geeks (I say that with love, mind you).

Hello remote presenters – but wait, there’s more

A point of differentiation here is multiple presenters, each with different camera types. One can have a webcam in Sydney, one can be standing in front of a hi-def broadcast camera at a conference in a New York hotel…you get the idea. Need to switch back and forth like a television newscast? Can do.

As is my style, my goal isn’t a vendor-by-vendor shootout, to talk about price, or make a recommendation. I’m excited and privileged to be independent, talk to great people with their own angle on the market, and share with you my own spin on it. It sounds like IVT has a solution if you need to reasonably reach 100 people and the horsepower to reach 20K if you need. If you need flexibility and reach and a commitment to knowing their core biz, IVT (or one of their partners) might be someone to add to your must-investigate list.

IT Departments Utilizing Virtualization

IDC released its Worldwide Quarterly Server Tracker on September 2, 2009, which reports that "factory revenue in the worldwide server market declined 30.1% year over year to $9.8 billion in the second quarter of 2009 (2Q09)."

According to IDC, this is the lowest quarterly server revenue since they began tracking this market in 1996.

The obvious implication is that the economy has been awful and companies have been avoiding / deferring IT spend. But beyond that it seems that virtualization has both benefited from and contributed to this decline.

With a single server now able to run multiple workloads, it seems inevitable that the server footprint is destined to continue getting smaller within the corporate data center. But the benefits of virtualization do not stop with simply running more apps on one machine; the whole datacenter becomes more agile, more flexible to deal with unexpected changes in workload.

The ability to get more from fewer boxes is certainly a contributing factor to less boxes being bought. And tight budgets in the 2009 economy have certainly contributed to IT managers seeking out less costly options.

It will be interesting to see how the server market rebounds.

Andy Patrizio in his InternetNews.com blog quotes Rahul Agarwal, co-founder of Infiniti Research. Within the dismal sales figures, Agarwal notes that both Gartner and IDC report that unit costs are going up for server sales. Agarwal believes that this is due to sellers trying to widen margins by selling more feature-rich machines:

Our view is that to offset this volume pressure, hardware vendors will be
forced to improve unit margins by building in virtualization capability, memory
and I/O interfaces in the hardware.

So the strategy to improve revenues will enable IT departments to further utilize virtualization, continuing the trend toward fewer individual servers.

Agarwal noted that many servers out there are quite inefficient, particular amongst small-to-medium sized businesses, so the more successful players will focus on consolidation to increase efficiency and reduce the footprint. He says:

The server market of tomorrow will be a value game and not a volume game.