Opinion: Page (1) of 1 - 04/08/04

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Gary Kayye, CTS

I've been a huge proponent of networked AV systems for years. Ever since Sony hit the market with their first networked projector, I've had a vision where the ProAV market could integrate networked AV gear and use it to create a completely new revenue stream.

In the beginning, networked AV gear consisted only of networked projectors. And, rightly so, the application for doing this was questionable. Why would anyone want to network a projector and where's the value in the additional 15-20% up-charge for a network projector? And, interestingly enough, the application that most manufacturers "pushed' as a value to networking was the one that's still, three years later, not caught on -- pushing PowerPoint slides via the network without the need for a VGA cable. Don't get me wrong, it will catch on, eventually, but that's still a few years away.

But, since that first Sony FX-50 hit the market, there's been a steady stream of networked projectors to enter the market and, as most of you know by now, we have a market where every major manufacturer of projectors has one. And, most have over 75% of their product line networkable. So, now what?

Well, we're almost there. Now we can network projectors but also switchers, screens, lighting control, plasmas and LCD monitors and, of course, control systems. And, that's the key.

You see networking all this stuff is useless without networking the entire system.

Why?

Well, remote management of a projector is cool, but isn't everything. Sure, in the case of the thousands of Christie Digital DLP projectors in Regal Cinema theaters across the country limiting remote control and management to the projector is justified and logical as all they need to do is turn on and off the projectors between the showing of the films and they can manage lamp life. But, in the case of the University of South Carolina and the University of Washington and the 60 or so campuses I have visited over the past seven months, they want to manage everything -- projectors, plasmas, switchers, lighting, screens, room scheduling, room set-up, operation and control. Their AV departments want to completely manage those campuses remotely. And, they're willing to pay for it.

So, it's time to start integrating it. Sure, it starts with the hardware and manufacturers like Crestron and AMX to have management tools that allow you to manage not only the projector via the network, but every piece of AV gear in a facility-wide and campus-wide application via a network connection using a single PC, laptop, PDA or even a phone. Each manufacturer's tools are different and they're not created equally, but I'm not going to get into those details here. So, do your homework and figure out which tool is better for you. But, either way, the solution exists and it's ready for prime time.

So, why should the AV integrator care?

Well, that's my point. Networking all the AV gear on campus or corporate-wide provides an AV integration firm the opportunity to build a completely new revenue stream with higher margin potential than simply selling the gear. And, it's a revenue stream that's continuous, billed monthly. It's a service model that's profitable. And, it's real. Just ask Scott Walker, principal at Atlanta-based Waveguide Consulting who recently told me he's integrating network management into almost 100% of the systems he designs and has been for months. Ask Kevin Thompson, president of Virginia-based Whitlock Group whose vision and application in networking AV systems is clear and already profitable. And, ask Max Kopsho at Christie Digital who designed the Regal Cinema's AV network. Ask SPL, ask AVI and ask my partner Jody Thomas who's been helping integration firms set up profitable service departments for two years - firms that now have the capability to make revenue selling the service of networked AV systems. These aren't visionary looks into the future any longer; the future is here.

Networking AV systems is really a precursor to the future of the ProAV dealership. I know many of you reading this may not want to hear this, but I am convinced that in the next few years it's going to be virtually impossible to sell ProAV systems profitably without a service revenue model. The gear's going to get less and less profitable because of competition and availability. It's, unfortunately, going to follow the path of the projector.

And take this seriously. I've been saying this for years, much to the dismay of some ProAV integration firms who believe my ideas about networking AV are premature. Some think it's too early to try to sell and integrate it. The most recent letter I received was eleven weeks ago from a guy who explained to me that he didn't see any of his clients buying a service like AV network management.

He was a regional manager at MCSi.

Reprinted with permission from Sound & Communications magazine.

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