• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic

1

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

2

‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion

3

'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
TechZeroing In

Logitech Sees A Bright Future in Video Conferencing

By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
By
Heather Clancy
Heather Clancy
Down Arrow Button Icon
June 8, 2016, 9:30 AM ET
Courtesy of Logitech
Courtesy of Logitech
Add Fortune on Google for similar content.

Logitech International, a well-known maker of keyboards and computer mice, isn’t the first name most businesses associate with video conferencing equipment. That distinction usually goes to Cisco Systems (CSCO) or Polycom (PLCM).

But Logitech CEO Bracken Darrell says his company should be on that list. He says his company’s cameras and speakerphones are used in more meeting rooms than many people realize. To be clear, this is still a modest business for Logitech (LOGI), relatively speaking. So-called “video collaboration” technologies accounted for only about $89 million of the company’s $1.9 billion in overall revenue in fiscal 2016. (Logitech tracks revenue for its personal computer webcam business separately.)

But Darrell says three factors favor Logitech’s bid for more name recognition in this space: the rise of video meeting services including Microsoft Skype for Business; the emergence of more informal corporate “huddle rooms,” places where teams that sit in open workplaces can go to conduct private meetings; and growing resistance to the cost of complicated, high-end videoconferencing systems.

“It’s a very different alternative,” Darrell said, adding: “It’s a way to enable all the rooms in the world.”

How farfetched is that vision? For perspective, Wainhouse Research figures there are between 30 million and 50 million informal meeting rooms globally, many of which are potential venues for the technologies Logitech sells, according to senior analyst Andrew Davis. That compares with approximately 1.5 million to 2 million locations that are specifically dedicated to video conferencing.

Logitech’s business video conferencing products are marketed under the ConferenceCam brand, which is priced starting at around $250 for a pretty simple camera, to $1,000 to $1,250 for kits for bigger groups of people. Logitech’s team is pitching the simplicity of setting up its products, not to mention starting up a videoconference—remember, this is the company that made its reputation selling keyboards and mice to the masses.

The division’s general manager, Scott Wharton, is also leaning heavily on partnerships to sell to businesses rather than consumers. That means Logitech’s gear is compatible with services from BlueJeans, Lifesize, Vidyo, and Zoom—and others—so teams don’t need to go find a special technical expert to start a call. The company is adding additional partners this week.

Get Data Sheet, Fortune’s daily technology newsletter.

Wainhouse Research’s data suggests that sales of high-end video conferencing have peaked, Davis said. During the first quarter of 2016, the top five vendors—of which Cisco was by far the largest with almost half the share—generated around $481 million in hardware revenue for the category, according to Wainhouse Research.

Logitech has experience in the high-end segment. In 2009, it paid $405 million for videoconferencing pioneer LifeSize, which sells both equipment and video conferencing services to businesses. It spun out the division in mid-January because the company’s sales strategy ran counter to Logitech’s traditional model, Darrell said. Logitech still retains a 37.5% stake in the company.

The shifting market dynamics have emboldened the usual suspects along with hardware vendors such as Logitech’s former division, Lifesize, Highfive, Huawei, and ZTE. All of them are seeking to outfit smaller meeting rooms.

On the low end, Logitech could face resistance from companies that are content to run video conferences using notebook and desktop computers outfitted with low-end cameras and services that cost next to nothing, such as Skype or Google Hangouts.

That approach might work well for a person-to-person meeting, but it’s harder to manage when an entire group wants to converse from one location, Davis said. That because it’s difficult to position a notebook computer in such a way that more than two or three people are within range of the camera.

While that option might have sufficed in the past, more businesses are willing to invest in equipment to improve the group experience, especially if it doesn’t cost $10,000 to $15,000 per room, he said. “When some goes into the conference room, they just want to find a video system that is simple,” Davis said. “They don’t want to look silly trying to launch a call.”

 

About the Author
By Heather Clancy
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Tech

math
AIScience
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
33 minutes ago
kalshi
CryptoKalshi
Kalshi’s ‘chronically online’ war room figured out World Cup virality — and realized AI might be bringing back the monoculture
By Nick LichtenbergJuly 21, 2026
4 hours ago
fl
North AmericaElections
Trump-backed hopeful to succeed DeSantis unveils plan to protect local water, electricity from data centers
By Matt Brown and The Associated PressJuly 21, 2026
5 hours ago
Bolt CEO Ryan Breslow
CommentaryHuman resources
The CEO who fired HR was right. About the wrong thing.
By KeyAnna SchmiedlJuly 21, 2026
5 hours ago
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
Arts & EntertainmentDisney
‘We all failed’: Former Disney CEO Michael Eisner on Hollywood, video games and the big question of IP
By Joshua HongJuly 21, 2026
5 hours ago
Jersey Mike's Subs restaurant.
C-SuiteCFO Daily
Jersey Mike’s tests how far investors will stretch on restaurant IPO valuations
By Sheryl EstradaJuly 21, 2026
5 hours ago

Most Popular

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
23 hours ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
1 day ago
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
AI
'Dr. Doom' Nouriel Roubini says we're headed for universal basic income or 'some form of socialism' as AI revolutionizes work—He calls that optimistic
By Jason MaJuly 18, 2026
3 days ago
Current price of silver as of Monday, July 20, 2026
Personal Finance
Current price of silver as of Monday, July 20, 2026
By Joseph HostetlerJuly 20, 2026
1 day ago
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
Retail
It’s not just Taco Bell lettuce and possible glass in Pillsbury rolls: Food and drink recall events reached a 6-year year-over-year high
By Sasha RogelbergJuly 20, 2026
1 day ago
The Treasury is walking a tightrope on U.S. debt by relying so much on short-term rates that are at the mercy of a suddenly very hawkish Fed
Economy
The Treasury is walking a tightrope on U.S. debt by relying so much on short-term rates that are at the mercy of a suddenly very hawkish Fed
By Jason MaJuly 20, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.