While Cisco’s telepresence solution has been very popular and praised by those who use it, the technology is still much too expensive for most small and even medium/large sized businesses. Starting at $35,000 and going all the way up to $350,000 per installation, the capital cost is too great for most companies to try the technology.

In an effort to promote their technology and the green concept of teleworking, Cisco has announced that they will set up public telepresence systems so even companies that can’t afford the full installation can try, use and experience this high-end video conferencing.

So far, Cisco has opened these public telePresence suites in London, Santa Clara, Boston, Gurgaon, Chennai, Bangalore, and Mumbai. These public telepresence suites are available to rent on an hourly basis. The London suite is located at the Taj Hotel on Buckingham Gate in central London and prices range from $300 for one or two participants, $500 for up to six participants and $900 for up to 18 participants in the telepresence meeting. These prices are expected to come down as the installations begin to pay for themselves.

Cisco plans to roll out a total of 100 public telepresence rooms in the near future, located in hotels and business centers throughout the world. Cisco has started to become more competitive in the telepresence arena after new competitors such as HP and now Lifesize have started offering similar products at much more competitive prices.

Following in the footsteps of Cisco and HP, Tandberg has released a full telepresence package called Telepresence T-3. The setup is as impressive as any other telepresence system, with three 64-inch, high-definition monitors, high-definition speakers and microphones all connected in a free-standing unit that includes three tables for participants to sit at.

The tables each have a 22-inch touch screen for controlling the system and for sharing documents during conferences. The package is installed in a dedicated room, and comes with lighting and blue, back-lit wall panels that are part of the package to enhance the images shot in the room. Tandberg is also announcing a set of services to evaluate customer sites, install the gear, and manage and maintain it after it is installed.

Telepresence systems allow disparate meeting participants to feel as if they were all in the same room. Directional microphones and multiple cameras and monitors allow participants to look and speak directly to an individual, unlike standard video conferenecing solutions where everyone is looking directly into their own camera and they need to state who it is they are talking to.

Prices are comparable to other telepresence solutions. All of the AV gear will run you about $300,000, and that’s not including the wall finishings and backdrops which will tack on about $40,000 more. The Tandberg system is compatible with other vendors’ gear that builds its products to the Session Initiation Protocol, H.323 and, via a gateway, H.320.

Rapid growth in India’s telecommunication industry has found that the use of telepresence technology is growing at a rate of 53 percent per year. According to the study conducted by India based management consulting firm, Zinnov Management Consulting, the current growth rate is expected to produce sales of up to $40 million by 2012, while the current telepresence market is pegged at $7.2 million.

In the last few years, there has been a quick progression in India’s telecommunications market. The conferencing market in India has evolved from audio conferencing to video conferencing and now rapidly adopting telepresence technology. The rapid progression in conferencing technology has been due to improved broadband infrastructure, the increase in conventional travel costs and environmental concerns and globalization.

Zinnov Management Consulting CEO, Pari Natarajan:

The importance of telepresence needs to be reinforced through specific marketing initiatives as it is the next big wave in conferencing. Customized efforts targeting sectors like Education, Government, BFSI and even SMEs can significantly increase telepresence in India. Various factors like increase in broadband penetration, the rollout of 3G services, Government efforts and initiatives by the BFSI, IT/ITeS sectors paint a very bright picture.

The Zinnov study indicates that many leading professional institutes will migrate to telepresence for guest lectures and classroom discussions, while the government is already investing in conferencing solutions for efficient administration and reduced travel cost.

HSBC has begun implementing Cisco’s video conferencing and telepresence technology to conduct virtual meetings throughout the company’s disparate locations. The technology will allow instant face-to-face meetings around the globe.

Cisco’s video conferencing service provides life-size, high-definition video and recreates the “the interactivity, spontaneity and nuanced communications experience of an in-person meeting”, according to the company. The telepresence system provides a table that can include 6 people on the video conference, with displays, cameras, lighting and microphones, to simulate an actual meeting over the web.

HSBC CIOP, Ken Harvey:

Our current meeting and collaboration tools provide significant increases in productivity, but are no substitute for in-person meetings. Cisco Telepresence gives us the experience and benefit of actually being in the room with colleagues on the other side of the world, without having to pack a suitcase.

Initially, HSBC will install the video conferencing systems to connect locations in London, Chicago, Hong Kong, Mexico City, New York and Dubai. Cisco says the technology will save the bank thousands in travel costs and help promote a cleaner environment by reducing emissions spent through conventional business travel.

In the face of rising fuel costs, many companies are turning to online collaboration and video conferencing services to reduce travel costs and at the same time help protect the environment. This current push for video conference services have left many companies scrambling to find the appropriate IT solution for their company, and the Marriott Hotels are looking to provide the solution, or at least be a stop-gap solution for companies that need an immediate solution.

Marriott International Hotels are installing Hewlett Packard’s Halo telepresence centers in key hotels around the world. The Halo telepresence system is a complete video conference solution that has a physical semi-circle conference table, with large LCD television screens that make up the other half of the table. The result is what appears to be a round conference table, half with people physically present, and the other half at any other location that has a similar Halo setup. The technology allows very realistic conferencing, without the hassle and costs of conventional travel.

Marriott Spokesman, John Wolfe:

It’s an opportunity to open up a new line of business that we currently don’t have.

A study conducted by Orbitz Business and Business Traveller magazine found that 79% of corporate travel managers are feeling some pressure to cut travel expenditures and 42% are exploring alternatives to business travel, including web conferencing and video conferencing services.

Teleprescense systems like Hewlett Packard’s Halo can cost tens of thousands of dollars. The availability of these systems at key Marriott hotels will provide easy access to companies that only need to occassionaly use the technology, and for companies that plan to purchase the technology but would like to use it first. No date has been set on when Marriott and HP plan on rolling out the service.