Light Reading

Vidyo Takes in $20M to Bring Video to IoT

Sarah Thomas
7/11/2014
50%
50%

Telepresence pioneer Vidyo has added another $20 million to its wallet to help fuel its vision of a video-enabled Internet of Things (IoT).

The company announced the funding on Friday, bringing its total to $139 million raised since its launch in 2005. Its latest round comes from existing investors, including Menlo Ventures , Rho Ventures , Sevin Rosen Funds , QuestMark Partners , Saints Capital, Four Rivers Group, ORR Ventures, Triangle Peak Partners, and Juniper Networks Inc. (NYSE: JNPR) via its Junos Innovation Fund. (See Vidyo Raises $17.1M, Vidyo D Round Nets $22.5M, Vidyo Raises $25M, and Vidyo Bags $15M, Spews News.)

Vidyo Inc. started life building scalable telepresence platforms. You may know it as the technology behind Google+ Hangouts or the video chat enabler for Nintendo's Wii. Now, however, it is planning to bring HD-quality video to non-person-to-person interactions through IoT -- i.e. letting people interact with devices, whether they be appliances, wearables, or in-vehicle applications. (See Vidyo Provides Chat Function for Wii.)

Vidyo says it will use its fresh funding to accelerate this vision, specifically for sales and market development of its VidyoWorks platform in banking, healthcare, government, and enterprise. According to the company's VP of Strategic Marketing, Mark Noble, the company is responding to a movement toward integrating video into workflows and devices so that it's not a destination, just part of a process.

"There's a whole world now of different apps that need to be video enabled," Noble says. "Everyone is claiming any network, any device, but this is about any app -- enabling it."

Vidyo has seen the most traction so far in the healthcare industry, embedding video software in telemetry devices and consoles for video consultations. It's also working in the banking industry to embed video into ATMs and in retail to enable concierge services. Or, for a more niche use case, Noble suggests the Department of Agriculture could use an application to track the migratory patterns of animals. Rather than tag them with radio tags, it could equip them with wearable cameras for a real view of how they are living.

What about WebRTC?
If all this sounds familiar, it is because this is essentially the promise of WebRTC, which is a web standard for embedding real-time communications in a browser with one click. Vidyo has been successful because of its scalable, patented video router that allows it to adapt to and optimize for any degree of media handling, but Noble says it will work with WebRTC as well via the VP8 codec: Vidyo would just treat WebRTC as another end point. (See The Upcoming Video Codec War and What WebRTC Means for Telcos.)

Noble says that gets more exciting starting this fall through next year. Vidyo plans to deliver a suite of JavaScript connectors that align WebRTC APIs with its own VideoWorks APIs, so any work a WebRTC developer has done will be reusable with Vidyo's platform to create a higher-quality, more reliable experience, leverage the ecosystem it's already built up.

Through its relationship with Google (Nasdaq: GOOG), which recently confirmed the WebRTC component of Hangouts, Vidyo is working to build scalable extensions of the more advanced VP9 codec in Chrome. As the next generation of VP9-based WebRTC apps begin to come to market, Vidyo will have browser-based end points natively routable through its infrastructure, meaning developers won't need to do any transcoding to work with it.

"WebRTC is very strong on the API integration side and helps people get video communication into Web apps effectively," Noble says. "The things WebRTC does not address are scalability and public networks -- you still need an architecture and knowhow to use the toolset in VP9. That's what Vidyo does with its architecture and creating scale with a PSTN-type of video exchange."

— Sarah Reedy, Senior Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
7/29/2014 | 6:56:07 AM
Re: Limitless possibility
For any Tech fan who has been closely following the developments in the IoT world, it has been clear right from the start that some form of video linkage or video communication between the devices themselves and their users would have to be established before the true power of the IoT movement could be unleashed. Just as there is no practical limit to the type and functions of IoT devices that can be made, so is there no limit to the devices on which the video communication structures can be installed. So whichever way you look at it, this is an excellent move for Vidyo.
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
7/29/2014 | 6:42:19 AM
Re: Expected
With all the hype surrounding the IoT world and the kind of technology that Vidyo has proved it can bring to life, it was only a matter of time before they came to this point. Nothing sells to potential investors like a proven track record in terms of delivery and a ready market just waiting to receive so the only surprise here for me is that they did not manage to raise more money. But, that too is only a matter of time inn its coming. Kudos!
Joe Stanganelli
50%
50%
Joe Stanganelli,
User Rank: Light Sabre
7/13/2014 | 8:31:24 AM
Re: Another round for only $20M?
@JoJa: Interesting point.  Perhaps the company has no interest in going public and is instead courting buyers.

On the other hand, the type of VC fundraising you're talking about has surely driven us straight into a private-funding tech bubble.  Perhaps this is simply more socially and fiscally responsible funding.
SReedy
50%
50%
SReedy,
User Rank: Blogger
7/11/2014 | 2:12:22 PM
Re: Another round for only $20M?
That's an interesting perspective, JoJa. It is all from existing investors rather than new ones, and it's also to accelerate an established strategy, albiet one with new opportunities, rathen that pursue a brand new market. Not sure if that changes the financial aspects of the deal, but worth noting.
JoJa
50%
50%
JoJa,
User Rank: Light Beer
7/11/2014 | 11:47:49 AM
Another round for only $20M?
I don't work for a VC, but seeing a 5th round of funding for such a small amount would be concerning for me. Similar to "checking" at the poker table when you don't have a strong hand to play. It would look better if such a late round was for $100M+.
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
LRTV Huawei Video Resource Center
Huawei Shares Its Vision of the Future of Mobile Networks Innovations

2|26|15   |   2:30   |   (0) comments


Mobile broadband is changing our lives. It's reshaping the Internet, industry, and society. It allows us to freely connect with one another anytime, anywhere. At this year's Mobile World Congress, Huawei will share its latest insights and newest ideas and technologies that will shape the future of MBB. They will showcase their end-to-end MBB solutions that will ...
LRTV Huawei Video Resource Center
Accelerate Digitizing, Boost Digital Business

2|26|15   |   6:14   |   (0) comments


A new digital revolution is leading us to a better connected world. Together with millions of digital partners, Huawei will help CSPs to build their digital service ecosystem and aggregate a wide variety of digital services. In this video, we find out how Huawei is going to help CSPs implement digital operations.
LRTV Huawei Video Resource Center
The Secret Recipe to Enabling Hyper-Growth Industries

2|26|15   |   3:38   |   (0) comments


With a number of successful cases on network capability exposure, Huawei is going to share the secret recipe to enabling hyper-growth markets with a step-by-step approach.
LRTV Documentaries
BTE 2015 Is Bigger & Even Better

2|25|15   |   03:13   |   (4) comments


This year's Big Telecom Event (BTE) in Chicago is going to provide more opportunities than ever for networking, getting to grips with key industry challenges and opportunities and, equally as important, having some fun.
LRTV Interviews
Light Reading ICT Leaders Roundtable at MWC 2015

2|12|15   |   1:07   |   (2) comments


On Sunday March 1, 2015, Light Reading will host an ICT Leaders Roundtable in partnership with Huawei. At this half-day event, CIOs, analysts and researchers will discuss key industry trends like virtualization in the cloud with a specific focus on new business models. Located at the luxurious Renaissance Hotel near the Fira Barcelona, space is limited so please ...
LRTV Documentaries
Going Green in 2015

2|12|15   |   02:04   |   (0) comments


Energy efficiency is set to be an incredibly hot topic in the telecom industry this year.
LRTV Custom TV
SDN & NFV: Where Are We Going From Here?

2|11|15   |   11:27   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss gives his perspective on why SDN and NFV should be tightly interconnected and how he sees the industry moving forward.
LRTV Documentaries
Time for Gigabit Europe?

2|9|15   |   01:27   |   (4) comments


Gigabit broadband networks are springing up all around the US and they'll soon become more commonplace in Europe.
LRTV Interviews
Brocade Brings New IP Vision to 2020 Vision Executive Summit

2|3|15   |   4:23   |   (0) comments


In December 2014, Light Reading gathered telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Brocade's Kelly Herrell shared his company's strategy at ...
LRTV Interviews
Brocade's Kelly Herrell on the New IP

2|2|15   |   12:36   |   (0) comments


In December 2014, Steve Saunders sat down with Brocade VP of Software Networking Kelly Herrell at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Brocade's approach to the New IP, the future of the telecom industry, and more.
LRTV Huawei Video Resource Center
Dr. Dong Sun Talks About Carriers' Digital Transformation & Huawei’s Telco OS

1|29|15   |   6:28   |   (0) comments


Dr. Dong Sun, Chief Architect of Digital Transformation Solutions at Huawei, discusses how telecom operators can become digital ecosystem enablers and deliver optimal user experiences that are in real-time, on-demand, all-online, DIY and social (ROADS).
LRTV Huawei Video Resource Center
Huawei's Chief Network Architect Talks about Network Experience & Operators’ Strategies

1|29|15   |   3:39   |   (0) comments


In the digital age, network experience has become the primary productivity especially for telecom operators. In this video, Wenshuan Dang, Huawei’s Chief Network Architect, discusses how carriers can tackle the challenge of infrastructure complexity in order to enhance business agility and improve user experience.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Cyber Security Expert Warns: You're Doing It Wrong
Sarah Thomas, Editorial Operations Director, 2/23/2015
10 Weirdly Useful IoT Devices
Eryn Leavens, Copy Desk Editor, 2/24/2015
Small Cells Enabling Location Services
Sarah Thomas, Editorial Operations Director, 2/25/2015
MWC: Let the Madness Begin
Ray Le Maistre, Editor-in-chief, 2/23/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.