Video conferencing is a live, visual connection between two or more remote parties over the internet that simulates a face-to-face meeting. Video conferencing is important because it joins people who would not normally be able to form a face-to-face connection.

At its simplest, video conferencing provides transmission of static images and text between two locations. At its most sophisticated, it provides transmission of full-motion video images and high-quality audio between multiple locations.

In the business world, desktop video conferencing is a core component of unified communications platforms that also include calling and messaging capabilities. Standalone on-premises and cloud-based video conferencing platforms are also available from numerous vendors who support desktop- and room-based video, as well as the ability to embed video conferencing into business applications, such as Telehealth, customer service and distance learning.

The widespread availability of cloud-based services enables organizations to implement video conferencing with minimal upfront investment and to take advantage of rapidly emerging AI-powered features to improve audio and video performance.

How video conferencing works

The video conferencing process can be split into two steps: compression and transfer.

During compression, the camera and microphone capture analog audiovisual (AV) input. The data collected is in the form of continuous waves of frequencies and amplitudes. These represent the captured sounds, colors, brightness, depth and shades. Once captured, codecs convert data into digital packets, typically with compression to minimize bandwidth usage.

During the transfer phase, packets are sent over the network, typically to the cloud service provider, which then transmits them to other conference participants (and combines voice and video from multiple participants).

Once packets reach the endpoint, the codecs decompress the data. The codecs convert it back into analog audio and video. This enables the receiving screen and speakers to correctly view and hear the AV data.

Components of video conferencing systems

The components of a video conferencing system include the following:

A network for data transfer, such as wired/wireless local area network, wide area network, cellular wireless and residential broadband.

Two or more video cameras or webcams that provide video input.

Two or more microphones — either an external microphone or one built into the accessing device.

A computer screen, monitor, TV or projector that can broadcast video output.

Headphones, laptop speakers or external speakers that can be used for audio output.

Codecs, which can be hardware- or software-based, to reduce bandwidth by compressing and decompressing AV data. They typically include acoustic echo cancellation capabilities, which reduce audio delays to support real-time communication. Codecs may also include features like noise cancellation and acoustic fencing to minimize background noise during conferences.

Benefits of video conferencing

Video conferencing services carry many benefits. In businesses, they can increase productivity among employees, as well as provide an improved way of communicating and interacting with colleagues, partners and customers.

For businesses, the tangible benefits of video conferencing include lower travel costs — especially, for employee training — and shortened meeting and project times as a result of improved communications among team members. Businesses can also increase revenue through higher quality virtual sales meetings.