Ricoh, Vidyo in new videoconferencing deal

Reuters News
Posted: Jul 29, 2011 12:23 AM
Ricoh, Vidyo in new videoconferencing deal

HELSINKI (Reuters) - Video technology start-up Vidyo unveiled on Friday a deal to supply its software to Ricoh's <7752.T> new small videoconferencing offering, which it expects to "significantly disrupt" the $3 billion equipment market.

Ricoh's latest offering shrinks corporate videoconferencing gear to the size of a laptop, challenging systems of market leaders Cisco Systems <CSCO.O> and Polycom <PLCM.O> that are usually linked to dedicated rooms.

"This can significantly disrupt the market," Vidyo co-founder and chief executive Ofer Shapiro told Reuters. "Any room can be a video conferencing room. This market could become as big as traditional room system market."

New Jersey-based Vidyo, whose software platform is also used by Google <GOOG.O> and Hitachi <6501.T>, has raised $74 million from investors including Menlo Ventures, Sevin Rosen Funds, Star Venture and Rho Ventures.

(Reporting by Tarmo Virki; Editing by Gary Hill)