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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Powerful quakes again hit New Zealand's Christchurch | 10:43am EDT Samsung and Apple to end Nokia's smartphone reign 8:53am EDT "Meaningful probability" of a China hard landing: Roubini 9:31am EDT Activists slam Syria "Gay Girl" blog hoax 10:55am EDT U.S. adds formaldehyde to list of carcinogens 11 Jun 2011 Discussed 123 Alabama governor signs nation’s toughest immigration law 105 Obama weighs new steps to boost jobs 78 U.S. debt default unimaginable, creditors say Watched Obama resigns from church Mon, Jun 2 2008 Bodypainters apply their skill Mon, Jul 19 2010 Battles rage on the outskirts of Misrata Sun, Jun 12 2011 Logitech sees no threat from Microsoft-Skype Tweet Share this Email Print Related News Microsoft loses U.S. Supreme Court case on patent Thu, Jun 9 2011 Dealtalk: Plenty of rumors but no real suitors for Nokia Thu, Jun 9 2011 Vidyo rolls out low-cost videoconferencing Wed, Jun 8 2011 UPDATE 1-Vidyo rolls out low-cost videoconferencing Wed, Jun 8 2011 Nintendo lifts lid on Wii U, seeks hardcore gamers Tue, Jun 7 2011 Analysis & Opinion Is U.S. business abandoning the middle class? How Microsoft lost 8-0 at the Supreme Court Related Topics Technology » Logitech headquarters are pictured in Morges near Lausanne January 6, 2009. Credit: Reuters/Denis Balibouse By Tarmo Virki, European Technology Correspondent HELSINKI | Mon Jun 13, 2011 4:36am EDT HELSINKI (Reuters) - Logitech expects a boost in its business from Microsoft's $8.5 billion acquisition of Skype as the deal should lift wider take-up of videocommunications, a senior executive told Reuters. Craig Malloy, co-founder and chief executive of Logitech's LifeSize unit, dismissed analysts' fears that Microsoft's acquisition of Skype created further risks to it and other video technology providers. "It is a good thing. I do not see it negatively impacting our business at all. It has increased awareness and demand for videoconferencing," Malloy told Reuters in an interview. "Microsoft would have not paid $8.5 billion if they did not see a massive new market here. There is an enormous amount of growth left in this industry. There are many, many years of high growth left," he said. Logitech, maker of computer mice, speakers, webcams and keyboards, bought Lifesize for $405 million in 2009. Wider take-up of videoconferencing could also boost sales of its webcams. Analysts say companies such as Logitech's Lifesize were first in line to be hit if Microsoft succeeds in turning Skype more toward businesses, but Malloy said that was unlikely as Microsoft has its own strong enterprise videocommunications offering. "Skype was moving into enterprise and was a bit of the wildcard. It is likely going to be the consumer videoconferencing business of Microsoft," Malloy said. The cheaper end of the $3 billion videoconferencing equipment market is already suffering from inroads that Skype and other video applications are making in the market, historically controlled by stand-alone conferencing devices in offices. Malloy said the fast growth of desktop videoconferencing would not replace demand for dedicated equipment. "A dedicated device will always do a better job," he said. Analysts say some replacement, especially in the lower end of dedicated videoconferencing equipment, will probably happen. Last month research firm Ovum forecast the market for videoconferencing gear to grow an average 6 percent a year through 2016, with the take-up of desktop applications hitting sales of cheaper conferencing room equipment. The growing market has spurred a wave of acquisitions in the sector, with Cisco splashing more than $3 billion on Norwegian firm Tandberg, and Polycom buying HP's videoconferencing unit only this month. (Editing by Will Waterman) Technology Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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