AV-As-A-Service:
Is it right for you?

Evaluating the As-A-Service model for your organization

Traditionally, organizations that use AV technology have purchased the infrastructure they need and shouldered the responsibility of maintaining and supporting their gear. Today, they have a compelling alternative to outright ownership. AV-As-A-Service allows customers to procure their audiovisual solutions – including expert solution design, procurement, deployment and managed services for support and maintenance – on a subscription basis rather than through a one-time purchase. But how does an organization decide which model will best meet their particular needs? Let’s take a look at what makes AV-As-A-Service so attractive to a growing number of users and why some users might turn away.

AV-As-A-Service conserves your cash

Cash is a powerful catalyst for business growth and a tremendous cushion when times are lean. Most organizations like to have cash on hand for revenue-generating activities and to maintain business continuity in the face of unpredictable events that might interrupt their revenues. Spending large sums of capital on a rapidly depreciating asset like technology equipment reduces an organization’s ability to spend money where it can generate powerful returns – such as marketing, R&D and various growth opportunities. By contrast, AV-As-A-Service does not require a massive upfront investment, and thus leaves more cash in the bank for you to use as needed. It all boils down to reduced upfront costs and predictable ongoing expenses.

Find out more about ClearTech’s As-A-Service offering

AV-As-A-Service keeps your technology current

Technology has advanced at a rapid pace and shows no signs of slowing down. Promising technologies come to the fore and just as quickly can be supplanted by new ones. Technical standards change and technology paradigms shift. When weighing a significant technology purchase, there’s always uncertainty. Will your collaboration technology become antiquated before you ever get full use out of it? With AV-As-A-Service, customers typically choose to receive the very latest technology, which is regularly replaced or refreshed to ensure they always have an up-to-date solution. Not only that, subscription AV can be scaled with greater ease – up or down – to match a business’s fluctuating needs.

It’s also important to note that employees want to work with current technology and are frustrated when saddled with yesterday’s systems. Staff view a commitment to providing a modern workplace as evidence that they are valued. Moreover, they strongly assert that an up-to-date technology infrastructure is essential to delivering the results expected of them.

With AV-As-A-Service, consider depreciation

Technology is expensive to purchase and its value lies in
the extent to which it is used and what the asset value is at the end of its useful life or during a business valuation.

Always keep in mind that technology advances rapidly and equipment depreciates quickly. AV equipment can depreciate as much as 30%-70% in the first year of ownership, so you may have to ask yourself: What do I really end up owning and what is the value of that asset at any specific time? Remember, too, that if you are using debt to finance that new equipment, there is interest to add to the cost of ownership.

One more point regarding depreciation: It’s not just asset value that plummets over time. As technology ages, it becomes a less attractive option for employees to use, and thus productivity drops as well.

AV-As-A-Service offers payment flexibility

It’s not widely known that providers of AV-As-A-Service typically offer a range of financing options to suit customers’

individual needs and preferences. For example, do you want to have more cash flow during different seasons of the year by paying monthly, annually or quarterly? Payment flexibility enables you to work in sync with your finance partner and your cash flow. That increases your flexibility while enabling you to maintain an essential communication asset.

Find out more about ClearTech’s As-A-Service offering

AV-As-A-Service can cost less in the long run

There’s always going to be some level of inflation, and that means the money you have in hand today is worth more than money in the future. Therefore, the sum of monthly payments made over time actually has less value and cost to you versus an entire upfront payment today. As AV-As-A-Service shifts costs from a CapEx to an OpEX model, there are also financial and tax benefits to procuring AV capabilities on a subscription basis. Every agreement between an organization and its AV-As-A-Service provider is unique, however, so it’s important to consider the details of your subscription.

Find out more about ClearTech’s As-A-Service offering

AV-As-A-Service typically bundles maintenance & support

While the technology provided by AV-As-A-Service is typically new and thus less likely to fail than older infrastructure, breakdowns can occur, and repair or replacement can be expensive. Likewise, even new gear requires software and firmware updates from time to time. With a monthly AV subscription, it’s easy to bundle in multi-year, fully-managed maintenance and support, which includes overall life cycle management of your entire solution. It only adds a small amount to the monthly cost and you get the peace of mind that comes from knowing you’re protected from the costs of a technology malfunction.

AV-As-A-Service improves operational efficiency

Financial flexibility isn’t the only benefit of subscribing to AV-As-A-Service vs. purchasing your AV infrastructure. You can also realize significant gains in operational efficiency. Outsourcing AV allows a business to focus its resources on core operations rather than on the management of AV equipment and infrastructure. Moreover, AV-As-A-Service providers typically offer comprehensive training and support for the technology. This enables users to utilize the AV systems correctly and efficiently, which enhances the overall user experience and boosts productivity.

AV-As-A-Service can positively impact business continuity & risk management

Disaster recovery and backup are typically included in a comprehensive AV-As-A-Service offering. In the event of a major disruption, these solutions can help a business recover quickly and maintain operations. Additionally, the end-to-end nature of an AV-As-A-Service offering minimizes the risks that come from managing multiple technology providers and systems.

Find out more about ClearTech’s As-A-Service offering

AV-As-A-Service can yield environmental & sustainability benefits

Responsible AV-As-A-Service providers commit to repurposing, recycling and – when necessary – properly disposing of AV equipment at the end of its useful life. In addition, they’re incentivized to use energy-efficient equipment and systems. This can help organizations minimize their carbon footprint and reduce energy costs.

Is AV-As-A-Service right for every organization?

Not all organizations will benefit from the subscription model for procuring and maintaining their AV infrastructure. Some organizations, for example, may require highly customized AV setups that they’re better off managing in-house. Similarly, an organization in a tightly regulated industry may conclude that their security and compliance requirements are better managed via an infrastructure they own and control. And what if you have already made a significant investment in your AV infrastructure? You might not realize the immediate value in switching to AV-As-A-Service.

Here’s another point to consider: If yours is an organization where the employee experience isn’t a top priority, maintaining a cutting-edge AV infrastructure might not be as important as it would be otherwise. In these circumstances, buying technology outright and getting the most possible use out of it could be the wiser course of action.

It’s important to examine AV-As-A-Service from every angle. While it may not be right for everyone, this model for AV procurement can be highly attractive to organizations looking for cost and operational efficiency, scalability, flexibility, and access to the latest technology without making a large upfront investment.