Cisco is launching a USD 600 video conferencing system featuring a video camera and HD TV connection. This is expected to become a major step toward making telepresence tools available to public.

According to the Thursday Wall Street report, this new system will permit users to go online via high-definition TVs. 'Telepresence' is a term chosen by Cisco to refer to its video-conferencing tools. This new system is part of the company's universal strategy aimed at further incorporation of its products into the ever-growing IT video segment.

Given the growing number of online video viewers and the increasing amount of online video broadcasts, this strategy is more than justified. At the same time, telepresence is still low on sales, although the Cisco business has been around for 4 years. This is because Cisco might be facing tough competition from major companies, such as Polycom, LifeSize Communications Hewlett-Packard, etc. Meanwhile, Cisco has a chance to successfully compete with webcam and low-cost video-conferencing tool makers. Besides, with video-conferencing being incorporated into relatively inexpensive smartphones, there seems to be quite a playground for Cisco.

So far, the video calling market appears to be rather inert, since only 20 percent of economically active people use video conferencing services. Amanda Sabia, analyst for Gartner, believs that it will take a rather long time for the market to reach the mainstream level. However, it is not unlikely that consumers are ready to accept the new facility and the market is about to explode. In any event, high-speed IT connection is no longer a gimmick and high-definition TVs will soon be found in every U.S household.

Cisco owes its current technological portfolio to specialists it has attracted and bought. In particular, Cisco has bought  Tandberg ASA – a large video-calling tool making company – for $3.3 billion. Also, Cisco acquired Pure Digital Technologies, maker of the user friendly and cheap Flip video recorder.

Although sales are still low, Cisco is optimistic about its future, as it is witnessing telepresence showing growth that few of its products could have ever have boasted.