Enterprise Video Market and Vendors Growing Nicely: VBrick Raises $11.9 Million

With all the talk of video in the broadcast and entertainment verticals, it seems that enterprise based video offerings are rarely written about anymore. I can't remember the last time I read a really in-depth article on video inside the enterprise. This is a shame as there are a lot of major video deployments and continued video adoption taking place within the enterprise market, inside the firewall.

As opposed to content delivery networks, who for the most part are focusing on just delivering bits, vendors offering products and services for enterprise video are tackling more complex issues like video content management, self-provisioned webcasting and other pieces of the entire video ecosystem.

One of these vendors, VBrick, announced this morning a new round of funding totaling $11.9M from existing investors, with room for a strategic investor in the future. VBrick has seen nice growth over the past few years and has shipped more than 40,000 products to more than 5,000 customers. While VentureBeat.com is reporting that VBrick "brought in $30 million in revenue last year", that number is a few years old and is low by more than 30%. While VentureBeat.com also says that Vbrick has "been helped along the way by a partnership with Akamai Technologies", Vbrick's "Broadcast" product uses multiple CDNs and they have had partnerships with Akamai, Limelight, PowerStream and others for many years now.

VBrick says the additional money raised will go towards continuing their growth and possible acquisitions as VBrick's target customer has quickly evolved from mid-sized companies and universities to major Fortune 500 corporations.

  • Dan,
    Something to note is that companies like Stream57, ON24, TalkPoint, Streamlogics, OnStream, Brainshark, Accela, Thomson (CCBN Group), and many others focus on enterprise streaming. Combined, their revenues account for much more than the providers that are offering a behind the firewall solution. That being said, it would be nice to see a deeper look at that market before we tackle the “behind the firewall” providers. Its these ASP based webcast solutions that are truly driving the market and achieving greater revenues. I know from personally being within this market for some time that there are some real success stories with many of the Fortune 100 across many industries.

  • Hi Brian. Yes, there are other companies out there like the ones you mention offering webcasting services to enterprise companies, but I don’t personally classify that as “enterprise video”. To me, webcasting is an application that is sold to many different industry verticals. Some service providers are selling that application to enterprise based companies, but I think that is very different than deploying video inside the enterprise. Also, most of the companies you mention focus on live video. But inside the firewall you have a lot of vendors who are selling hardware, software and services for content capture, encoding, storage etc… as well as solutions for on-demand video.
    Maybe we’re just talking symantics here, but I think way too many webcasting based applications are classified as “enterprise” simply because the nature of the content being broadcast is not media and entertainment. Personally, I think enterprise video should be defined by more than just whether or not it is a talking head video.
    Responding to your revenue comment, we don’t know that ASP based webcasting vendors are driving the market any faster or generating more revenue that those who sell products and services deployed inside the firewall. Yes, Thomson and ON24 are big companies, but we don’t know how much revenue they get from webcasting since they don’t give out any of those details.
    If I think about vendors like Accordent, VBrick, Qumu, IVT and some others, doing a quick calculation based on what I know, combined they are doing around $200 million in revenue this year. Is that smaller than the ASPs offering webcasting services in the market? It may be, may not be. No way to truly know without some revenue numbers, or guidance from the ASP vendors. But honestly, I don’t think it matters what the answer is. There are two different needs in the market. Those for behind the firewall, and those that ASPs provide. I think vendors that are focused can do well in both segments of the market.

  • Dan:
    We couldn’t agree more – enterprise webcasting inside the firewall is all about the ability for these solutions to work on an enterprise scale – like integrating with existing corporate networks, so people don’t have to spend a fortune on new hardware; integrating with active directory services, so clients can apply same end user privileges and secure their online communications assets the same way they do their other information assets; and integrating with a wide range of IT systems, so that organizations can really measure how people are viewing and interacting with online multimedia content and translate that data into business intelligence. Thanks, also, for echoing what we’ve seen – that enterprise video is alive and well and that this sector continues to be an attractive investment, even within the current economic environment.

  • Obviously, being CEO of one of the vendors you mentioned providing enterprise video gives me an interest in this thread.
    I think the most salient point I can add is that enterprise video is a lot more than simple streaming (live or on demand). What we’re seeing inside the firewall is a number of converging trends: video teleconferencing, collaboration tools (Webex, etc.), and video streaming are currently separate technologies that enterprises want to see integrated.
    Streaming video technology, with its’ efficient bandwidth usage and with ability of enterprise video management tools to widely broadcast events like video teleconferences and Webex collaborations while storing them for later search and playback dramatically expands the value of video to the enterprise.
    Enterprise video applications are the face of streaming video technology to corporations. Applications drive the market. Technologies like CDNs (Internet or intranet) are enablers that no one but IT sees.