Cisco Systems recently published  Cisco Visual Networking Index which provides key findings on a variety of consumer and business IP networking trends. Their projections are stunning. The implication to businesses and the future of business communication is huge. Some of the numbers:

·      Between 2007 and 2012 there will be a sixfold increase in IP traffic (combined annual growth rate of 46 percent) due mainly to video.

·      Mobile Data traffic will double each year from 2008 to 2012

·      Video on demand, IPTV, peer-to-peer (P2P) video, and Internet vido are forecast to account for nearly 90 percent of all consumer IP traffic by 2012 

·    Global business IP traffic is forecast to grow strongly at a CAGR of 35 percent from 2007 to 2012

The study also goes on to predict that there will be three distinct waves of growth. We are currently in the first wave – Internet Video to PC.  The second wave will start in earnest later next year – internet to the TV and the third wave will take hold in the next four to five years – interactive video.

Video, rich media and social networking are the key drivers behind this rapid increase in IP traffic. Increase broadband penetration in the small –business segment, adoption of advanced video communications and rapid growth in the Asia-Pacific market also major drivers. This growth in the use of video will create both challenges and opportunities for businesses:

1.    Video will become a much more important part of the marketing mix –both for B2B and B2C companies. As video expands to become a mainstream marketing tool – companies will have to invest to keep up with new communications techniques.

2.    The line between advertisements, entertainment, information, training, and community outreach will continue to blur as companies learn new ways to communicate with their audiences.

3.    Business to business video communications is limited primarily to the PC today. As mobile devices become video enabled (like the iphone, the Blackberry storm etc.) and TV’s start to be used for internet browsing, the lines between lean-forward (PC’s), lean-back (TV’s) and in-transit (mobile) screens will also start to blur. Work places will extend to any screen anywhere, any time.

4.    Business marketing and business survival will be much more dependent on social outreach and engaging audiences with rich media tools.

5.    Interactive video and other rich media tools will have a huge effect on business communication compared to the limited affect that interactive flash presentations have had on business communications to date.