Several trends are driving the growth of the MVaaS segment. First, there’s the proliferation of broadband across the enterprise and down to even the smallest of remote locations. It’s becoming commonplace for restaurants, convenience stores and other retail locations to have some form of broadband at each site. Numerous applications such as credit card processing, point of sale and inventory systems, and voice over IP (http://en.wikipedia.org/wiki/VoIP) are driving businesses to install cable, DSL and satellite.

Second, equipment costs are dropping. Camera prices continue to come down and LCDs and other flat panel technologies are available at reasonable costs. The upfront capital expense required to enable video at remote locations is becoming less and less of a barrier.

Third, IT is becoming a more integral part of both the purchasing decision and the ongoing administration of video solutions. IT is already stretched, and they have some pretty specific requirements for a video solution: It has to work on their network without compromising security, interfering with other applications or consuming all of the resources. Basically, it has to be able to be managed without a huge burden on the organization.