Hock,
I don't think he is saying that, but virtue of being in a marketplace with similar clients (a la PEG or government jurisdictions) one is to assume both would take marketshare from the other.
They probably don't even consider each other 'competitors' since looking at some of their clients, both share a lot of the same clients.
From what I gather Swagit's focus is on the streaming video, document integration, broadcast production systems with a hands-free niche. So their products are fully automated and require no 'client' staff to operate or maintain.
In comparison to Telvue, although they have some products that are along similar lines, Swagit doesn't deal with MSOs from what I can tell. The hardware side with playout for PEG operators is another I don't see Swagit in. Another thing I see is that Swagit integrates their products with other government players. A lot of Agenda Management companies and web design companies seem to white label Swagit products. I wouldn't be surprised to see Swagit and Telvue working together, since comparing the two is like comparing apples-to-oranges and it looks like many of Telvue's clients use Swagit for streaming.
I see Swagit and Rushworks have a partnership and think Rushworks would probably be more of your apples-to-apples comparison with Telvue. At any rate, FYI, looks like they will all three be at The Eastern Region Community Media Conference at the end of the month, so you could get a better understanding and we could see how they work or don't work together in the same marketplace of PEG.