AV goes soft?

Let’s take a look at how the AV world is approaching software, what its place is in our industry, and how well it can be monetised. Hurrairah bin Sohail reports.

In the world of technology, hardware and function have been abstracted. This feat has been made possible by a mixture of standardisation and software. Ask users and consumers about the hardware specifications of their iPhone and you are most likely to be met with a blank stare. Sure, they will be able to tell you the model number but specifications like processor speed and chipset make do not hold meaning. But talk to them about the apps they have installed, and they will be happy to show how they curate and leverage software to get the most out of their devices.

The rise of software, especially in the realm of consumer technology, has also fed the shift to as-a-Service (-aaS) models. Everything from your workplace, WeWork, to the movies you want to watch, Netflix, and the music you want to listen to, Spotify, comes in an easy to consume -aaS package.

Which brings us to AV technology where the development towards this software enabled -aaS future is slow and the conditions to reach this eventuality remain significantly unmet.

Hardwired for hardware?

Let’s start the conversation with hardware and its standardisation which varies across AV product segments.

Protocols, regulations, and compliance guidelines push hardware towards eventual standardisation and Brian Pickowitz, VP of marketing, LEA Professional, presents an example: “Look no further than EN54 for life safety applications and the separate SKUs many manufacturers have for compliant and non-compliant versions of their hardware. Standardisation is realistically a moving target – the AV industry semi-regularly introduces new versions of standards (HDCP, PoE+++, USB-C), and governments are imposing new mandates (European Cyber Resilience Act) that may impact products or firmware.”

Jim Kidwell, principal product marketing manager, Audinate, adds: “I think the state of standardisation varies by vertical and even by region. Some industries like hospitality have specialised standards, protocols, and best practices and even specialised standards for specific applications like guestrooms. And you have the emerging resimercial field where there may be preferred standards, protocols, and specialised systems at different cost strata.”

But when it comes to AV hardware product expertise, proprietary knowledge, and intellectual property remain relevant. Take something as simple as a microphone. The art and skill to manufacture a device that picks up audio faithfully cannot be standardised. And if a manufacturer can achieve better quality audio by innovating microphone hardware design then this achievement should be rewarded.

Jakub Kolacz, manager product and commercialization, business communications product management, Sennheiser, gives his thoughts: “We strongly believe that high-quality hardware still makes a real difference, even as standardisation continues to shape our industry. Across our portfolio, we’ve embraced the standards that matter most to our customers - Dante for professional audio networking, encrypted REST APIs for control communication, and enterprise security standards like IEEE 802.1x. We also hold all the certifications for major platforms such as Teams and Zoom. But here’s the thing - implementing standards is just table stakes. What sets us apart is how we combine these standards with genuinely superior audio and video capture and processing.”

Kolacz from Sennheiser continues: “We are fully committed to industry standards –they’re essential for smooth integration and interoperability. But we’re doing it in a way that doesn’t compromise what we do best: delivering exceptional audio and video quality. It’s about giving our customers the best of both worlds – top-tier hardware that is compatible with everything else in their AV ecosystem.”

Pickowitz from LEA Professional adds: “I think hardware is still a differentiator because of user preferences, and I don’t see those going away. If an integrator has had success with a product, they will likely want to reuse it on future projects. I know there’s a push to commoditise the industry and go with the lowest-cost product, but the adage is very true – especially in our industry – you get what you pay for.”

Soft power

We have established that hardware considerations remain relevant in AV. However, this does not mean that software loses importance.

Pickowitz from LEA Professional says: “It’s an essential aspect of our offering. As a pioneer in cloud-based remote management and monitoring, we recognised the benefits of shifting our software to the cloud early. We use our software to build brand preference. Our hardware offerings are excellent and offered at a competitive price, but the free software and the benefits it provides our customers help us sell into more projects.”

Kidwell from Audinate adds: “For Audinate, software has been a foundational concept — coupling AV and IT into one cohesive, interoperable solution — and it’s our north star going forward. Just look at the industry-leading work we’re doing to advance interoperability, discovery, monitoring and control, encryption, and video. Each of these realms requires vision, investment, and resources, which we’ve been doing here at Audinate for several years now.”

The way forward is challenging. LEA, Audinate, and Sennheiser are not the only players in the market that recognise the importance of software and the opportunity it presents for growth. Which brings us to the first obstacle facing AV manufacturers. Kolacz from Sennheiser says: “The market is pretty crowded right now, and every manufacturer is pushing their own software solutions for example. We hear from customers all the time that they’re overwhelmed. They just want one platform that can handle everything in their AV setup.”

He adds: “Security is also a big challenge and we take it very seriously. We have a dedicated security team that sets the standard across our portfolio. The idea that AV needs to live in its own isolated network because of security concerns is outdated. We’re pushing for the same security standards you’d expect from enterprise-grade IT equipment. That’s why you hear everyone talking about ‘AV goes IT’. It’s not just a buzzword, it’s the way we approach security.”

Pickowitz from LEA Professional says: “Change is hard, especially in the AV industry. Integrators will keep using products until they go end-of-life because they’re familiar with them and have a proven track record, even if something better is available. Regarding software, the easiest way to overcome customer hesitation is to make a reliable and user-friendly product. I know that sounds simple and self-explanatory, but a lot of effort, and debugging, goes into making software run flawlessly. If you want a customer to try something new, it has to work perfectly the first time, because you seldom get a second chance.”

The challenges of fragmentation and adoption when it comes to software have been solved before. Once again AV can turn to consumer technology, specifically to mobile devices and smartphones, for an answer i.e. a cohesive hardware platform.

Kolacz from Sennheiser says: “We make sure our hardware and software work together like a charm – it’s non-negotiable. Second, we offer full REST APIs and plug-ins, and have received all the major platform certifications, because we know our products need to work seamlessly with everything else out there.”

But more work must be done. For smartphone and mobile devices, iOS and Android reign supreme with application marketplaces on both platforms enforcing standards but also leaving users secure in the knowledge that any software offering or app will function to a reasonably high level. A platform of similar significance is missing in the world of AV. While efforts have been and are being made to rectify this, it remains to be seen whether they will bear fruit.

Making money?

Finally, we come to the heart of the matter. Can you make money with software? The rest of the technology world has certainly figured out how to monetise software and apps, so why can’t AV do the same?

As with most answers, the solution is not simple. Hardware does not work without software, and this makes it difficult for manufacturers to put a price to it. The challenges of getting user adoption numbers up in a competitive and oversaturated market, as discussed earlier, amplify the issues. And so, many manufacturers offer software for free.

Pickowitz from LEA Professional says: “Our software offerings are free. We position them as market differentiators to make our customers’ lives easier. That said, there’s nothing stopping integrators from using our cloud-based remote monitoring and management platform as a mechanism for offering support contracts to end users for additional revenue opportunities.”

Kolacz from Sennheiser states: “At the moment we offer all our software features and applications at no extra cost – it’s part of the value you get with our hardware. But we’re also realistic about monetisation. We believe that monetising software only works if customers see real value in what they pay for. You cannot charge your customers for something they simply expect to come with the hardware. That’s why we take a collaborative approach, working directly with our customers to develop the features they really need. We’re not interested in adding costs just because we can - any future paid features must deliver clear, measurable benefits.”

Software that delivers value is an eventuality that some have reached and many more can reach down the line. Kolacz continues: “We’re thinking about the future. We’re focusing on building features that add real value, so that when we introduce paid options down the line, customers will see it as a worthwhile investment rather than just another expense.”

Kidwell from Audinate sheds more light on the subject as Audinate focuses on paid software offerings. He says: “The underpinning premise of Dante is a solution that provides a central, consistent, interoperable technology for multiple manufacturers to adopt. Rather than a ‘standard’ that’s inconsistently implemented, the fact that Dante hardware and software are centrally managed ensures that Dante devices provide reliable media transport to other Dante devices. Monetisation of this technology is required to fund ongoing development of new, interoperable features, as well as the necessary ongoing maintenance of existing software.”

Kidwell from Audinate concludes: “Consumers and businesses pay for software for accounting, entertainment, banking, video editing, gaming, social media, and so much more. Monetisation pays for innovation, security, interoperability and everything businesses expect from software. They also understand the cost-benefit equation and are choosing software-based tools and technologies versus nothing.”

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