Return on investment

In these difficult economic times, the only reason to implement new streaming media services in your infrastructure or to contract with a content delivery network is that it improves the bottom line.

However, the streaming media pioneers had no reason to expect a profitable return from making their experts seen and heard by employees and partners. They simply believed in the benefits of improved communications between senior management and employees, in the value of enhanced brand equity, and in the perception that their experts are the source of the best information.

When it comes to costs, many of the components of a streaming media deployment - routers with ample memory, disk space for storing high-quality original footage and licenses for streaming media servers - are dwarfed by the cost of systems integration and access to professionals with experience to manage a fail-safe network.

Streaming Media, a company that conducts conferences on the topic, surveyed 111 companies and found that they averaged $954,328 to establish and operate their streaming media program in the first two years.

Companies may achieve increased return on investment through outsourcing, because they do not need to make upfront capital expenditures. However, most companies today manage their streaming infrastructure in-house.

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Perey is president of Perey Research & Consulting in Placerville, Calif. The company provides business development consulting services and conducts market research on the use of video in enterprise. She can be reached at cperey@perey.com.

Global Test Alliance

Perey is also a member of the Network World Global Test Alliance, a cooperative of the premier reviewers in the network industry. For more Test Alliance information, including what it takes to become a member, go to www.nwfusion.com/alliance.