At the high end, Cisco Systems Inc. and Hewlett-Packard Co. have focused over the past year on the realism of videoconferencing -- they call it telepresence -- with their separate systems. Both companies rely on strict standards for the networks they use, as well as special rooms equipped with proper lighting and furnishings to improve video and sound.

But several vendors focused on videoconferencing products, such as Polycom Inc. and Tandberg, are embracing high-definition products as well, while also allowing customers to interoperate with other vendors' products using the Internet Protocol.

Most recently, videoconferencing infrastructure vendor, Codian, based in London, unveiled a high-definition upgrade to its networking bridge, the Mult-point Control Unit (MCU) 4500. The bridge works with endpoints from other vendors and provides high-definition video at 30 frames per second. The flexibility and low cost of Codian's earlier product, the MCU 4200, made it attractive to Permira Advisors in London, said Carolyn Lees, IT director for the investment advisory company.

Lees has heard about high-end telepresence systems from Cisco and HP. But Permira found Codian's MCU 4200 to be advanced enough and flexible enough to work with video cameras, monitors and sound equipment from LifeSize Communications in Austin, Texas more cheaply than a costly telepresence system. Permira installed the 4200 in June in London to work with nine endpoints globally and expects to upgrade to the 4500 in January, she said.

In all, the company invested about US$50,000 in the MCU and $9,000 for each endpoint, which she called "nice state-of-the-art technology for fairly little money." By comparison, Cisco's system could cost between $80,000 and $300,000, she noted, while HP's requires use of a special studio that might be inconvenient for users. Cisco's and HP's telepresence systems "sound quite spectacular.... But at present, we have the highest level of value that suits our environment," she said.