Will Cisco Kill Veodia?

There are always two ways to look at a competitor getting into your market: It either validates what you are doing, or it could spell the end of your business, depending on the size of the competitor. With Cisco now entering the enterprise video market, you have to wonder what startups such as Veodia are thinking.

Today, Cisco announced Enterprise TV, which is a YouTube-like service for business. Companies can capture video of corporate meetings or training sessions and broadcast them live or keep them on-demand. Veodia is a small startup that offers — you guessed it — live streaming and video-on-demand services for the enterprise for things like corporate training. Both also support MPEG-4/H.264 and Flash 9.

Though Veodia has roster of clients including BEA, IBM and APC, I can’t help but feel as though Cisco is the Wal-Mart to Veodia’s small mom-and-pop shop. But I talked and emailed with Veodia CEO Guillaume Cohen this morning, and he didn’t seem too worried.

In an email he wrote: “Cisco’s video suite is a good example of the in-house solution that requires big capital investments and long IT projects. You buy their solution, and then you have to buy their Content Delivery Network (CISCO ACNS), and of course they make sure you upgrade your network (buy a few routers), and need to hire people who know what they are doing to operate it. You’re talking about $300K to $3 million depending on the size of your network.”

Cohen believes Veodia’s pay-as-you-go method, which uses Web 2.0 technologies to offer video services to the enterprise, will be a more nimble solution for companies. In the end, Cohen sees Cisco’s move as validation. “It’s confirmation that Cisco is pushing video very heavily as a killer app for the enterprise. We’re very much at the beginning of this big revolution in the enterprise.”

Separately, Veodia today announced a partnership with Jive Software, an enterprise collaboration software.