In the 17th century, an anonymous literate ancestor of marketing invented the subscription form. The convenience of paying in advance for a delivery of periodicals and newly published books caught on, and 400 years later people use subscription services for anything from movies to cars.
Businesses are also seeing the benefits of this form of payment. IT departments are increasingly choosing not to buy hardware or software but to pay for them as-a-service instead. Despite this, some organisations still pay upfront for certain hardware, specifically digital signage, when the as-a-service solution is a more flexible alternative for larger projects like these. In this article we explain why.
Digital signage as-a-service
By switching to as-a-service, you get more than just the equipment or solution you choose. You enter into a relationship with a business partner who has all the necessary expertise in house, which means the cost includes many helpful services in addition to the equipment.
When you use digital signage, you have to deal with:
- a data source
- a ‘transmitter’ (display or other image carrier)
- software that links the two
It is reasonable to assume that your organisation does not have a specialist in all three of these areas; the maintenance of the displays, the architecture of all necessary software or the data expert. However, if you purchase digital signage as-a-service, you benefit from the expertise of your provider, without having to hire external IT support.
If there’s one thing finance departments hate, it’s unexpected costs. If an organisation is growing rapidly and needs to implement a range of IT applications, including digital signage for example, the cost of such an investment can be unpredictable.
Purchasing the solution as a service provides financial predictability, as the costs are fixed and spread over a longer period. When signing an agreement with Econocom, you know exactly what you will be paying for, when and for an agreed duration. This way, your company will preserve its investment capacity and credit lines for its core business needs!
Staying up to date
Development of digital equipment is rapid, the moment you get your head around it, the technology is already outdated. The depreciation period for buying IT solutions is often around five years. This means that your devices have to perform for five years before you replace them, which is usually too long. It’s like buying a DVD player one day before Netflix, only to be forced to use it to watch a limited selection of films for five years.
In an as-a-service solution, organisations often purchase their signage for 36 or 48 months. This means they can replace the equipment earlier than the fiscal depreciation period. They therefore have a much better chance of staying up-to-date with market developments and strengthening their competitive position.
Interested in Digital Signage As-a-Service? Contact us at firstname.lastname@example.org.