Alphabet’s GOOGL Google has recently forged a groundbreaking alliance with Hewlett Packard HPE to commercialize its cutting-edge 3D video conferencing technology, Project Starline, set to debut in 2025.
Through this strategic collaboration, Google aims to seamlessly incorporate this revolutionary video technology into leading workplace video conferencing platforms like Google Meet and Zoom, harnessing HP’s computing prowess.
The innovative Starline technology harnesses advanced computer vision, machine learning, and real-time compression to conjure a “magic window,” enabling life-size participants to establish eye contact and perceive depth.
This seamless integration of Starline into workspaces is poised to cultivate genuine in-person interactions in hybrid environments, facilitating enhanced visual attentiveness, superior memory recall, and an immersive sense of presence.
With this latest announcement, Google is poised to capture significant market traction in diverse enterprises navigating remote or hybrid work settings.
The Terrain of Growth
This partnership stands as a gateway for Alphabet to capitalize on the burgeoning growth prospects within the global video conferencing sphere. According to a Fortune Business Insights report, the global video conferencing market is anticipated to soar to $33.04 billion in 2024 and further expand to $60.2 billion by 2032, reflecting a robust CAGR of 7.8% between 2024 and 2032.
Furthermore, the integration of Starline technology will fortify Alphabet’s Google Meet offerings, bolstering the Google Workspace environment significantly. This enhancement is poised to elevate the Google Cloud segment, which stands as a pivotal catalyst for the company’s growth trajectory. Notably, Alphabet’s shares have surged by 21.1% year-to-date, outperforming the Computer & Technology sector’s growth rate of 12.4%.
In the initial quarter of 2024, Google Cloud revenues surged by an impressive 28.4% year over year, amounting to $9.6 billion and constituting 11.9% of the quarter’s total revenues.
The robust Google Cloud segment is projected to uplift Alphabet’s overall financial performance in the immediate future.
The Zacks Consensus Estimate for total revenues in 2024 stands at $295.12 billion, showcasing a substantial year-over-year growth rate of 15.1%. Moreover, the consensus estimate for total revenues in 2025 is forecasted at $329.03 billion, reflecting an 11.5% surge year over year.
The Realm of Competition
This strategic move is set to equip this Zacks Rank #1 (Strong Buy) entity with enhanced capabilities to compete ardently with prominent industry players such as Microsoft MSFT and NVIDIA NVDA, who are likewise intensifying their endeavors to fortify their footing in the 3D video conferencing arena.
Microsoft recently unveiled Mesh virtual meeting spaces, enabling employees to engage in interactions within three-dimensional environments using virtual reality headsets. These immersive spaces are accessible via a regular PC, allowing users to control personalized avatars.
Mesh offers a co-presence experience, enabling employees to customize 3D environments through a no-code editor and a Unity-based toolkit, enriching hybrid work setups by overcoming existing limitations.
In contrast, NVIDIA has bolstered its position in the video conferencing domain with NVIDIA Maxine. The Maxine AI Developer Platform elevates real-time video conferencing applications with AI-driven features, enhancing user flexibility, engagement, and efficiency, accessible through the NVIDIA AI Enterprise software platform.
NVIDIA has also unveiled impending feature updates to the Maxine platform with the introduction of Maxine 3D, a cloud micro-service enhancing 3D video conferencing engagement with real-time NeRF technology.
