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November 08, 2006


Dave Stahl

Are there any economies of scale?

David Chao

In this industry, there is always going to be increasing competition simply because the opportunity size is tremendous. You'll find tons of small companies sprouting up just looking to capture 0.001% share of the estimated $2.9B. Even at 0.001%, this equates to $2.9M in revenue!!!

The main players have already been acquired:
WebEx by Cisco
Placeware by Microsoft
Macromedia Breeze by Adobe
GotoMeeting by Citrix Systems

A few smaller web conferencing players have already been acquired in recent years:
Netspoke by Premiere
Web Dialogs by IBM
Raindance by West Corp

Dave Stahl

How would you rate the current web conferencing services? Do you think the market is prime for a shakeout because of too many competitors, despite the projected growth?

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