By now, most readers have heard the term SaaS, or Software as a Service, a new trend in the business of software. Instead of investing large sums every time you upgrade, you pay as you go, by the month. Some common examples include Dropbox or Amazon Web Services (AWS). Some readers may have heard of XaaS, which stands for everything as a service. So what about AVaaS? Audio/Video or Audiovisual as a Service, delivering software (DSP, videoconferencing, collaboration, and control code), professional services, monitoring, for a monthly fee. That’s right, I said a monthly fee for AV.
I am not the first blogger to write about AV as a Service. My online colleague Nermina Miller attacked the subject way back in July 2015 when she worked for Infocomm, in her article Redefining AV as a Service. More recently, rAVepubs blog squad writer Mark Coxon defined three areas to start selling AV as a Service: video conferencing, engineering, and digital signage. Gary Kayye suggested audiovisual integrators start selling digital signage content years ago. Some followed his advice, and the money, while others stuck with the traditional model, sell the equipment and installation, and then watched their flat panel margins shrink as the displays got thinner and thinner.
rAVepubs also recently interviewed the CEO of ZOOM, who has quietly snuck into the AV industry under the guise of videoconferencing Software as a Service. But ZOOM is more than just SaaS, ZOOM has a professional services department, providing engineering and installation services. If you are worried about ZOOM taking your business clients, Gary Kayye of rAVepubs asked the CEO directly about their policy:
If an AV integrator has an existing client relationship, all they need to do is register that client and ZOOM will not go or talk directly to the client without the integrator’s assistance. But, if ZOOM establishes the relationship directly, they will potentially sell the ZOOM system directly….But customers will purchase hardware by themselves […]
But customers will purchase hardware by themselves? You heard right, the leading collaboration software company will sell them the AV system, but minus the hardware. The clients purchase the hardware directly from CDW, or Amazon, and ZOOM does the installation, commissioning, training, and then charges a monthly fee for the ZOOM software. Boom, ZOOM! That is how AVaaS is done, people. Readers, take notes.
AVaaS is the OPPOSITE of what most AV companies call “Service”. Say the word “service” to most integrators, and they will think “some old client called, they must have broke something, or they are otherwise unhappy, now someone has to drive over there and see what needs to be repaired, replaced, or just rebooted”
I try to explain AV as a Service using the cell phone model. The average American cell phone user often spends a few hundred dollars on their phone, plus a monthly fee for service. Ok, I know, they mean cell service, aka coverage, but it’s the same model.
You need cell service or wifi to use your mobile devices, right? You need the calling or chatting software, plus the other apps, to run on your phone, or it is worthless, right? Some of those apps are free, some are a one time fee, others you might pay monthly. Some SaaS sales models will offer the first month free, then a monthly fee, or a discount if you pay annually. This is how you need to structure you AVaaS business.
OLD WAY: Integrator sells client conference room hardware, installation, and one time programming fee for the DSP and Control System. Annual service plan is optional.
NEW WAY: Integrator sells the client the hardware once, or leases it to them. For the hardware to work, the client pays the integrator a monthly fee, which includes all service calls and software upgrades. The client pay a monthly fee per room, just like you pay a monthly fee for your cell phone. In return, they get free reports because you are now monitoring their AV systems for bulb life, energy usage, and downtime.
Savvy programmers will figure out a way to lock the AV systems if the client misses payment, just imagine the touchscreen and wall-mounted flat panel display saying…
But most importantly, please remember that AV as a Service, is just that, a service! We are now in a service industry, not a sales industry. Customers can buy AV gear with a click of a mouse; what we offer our clients is our professional services. Keep that in mind the next time you get a “service call”. Instead of being annoyed, be glad your services are still needed. -pk
Like this post? You also may enjoy “We Used To Be Heroes” by Paul Konikowski, CTS-D