Cloud for All: AV’s Next Chapter

Trends and reality met in Xyte’s recent AV Cloud Summit, as our insights were backed up by real-time industry sentiments from the hands-on AV decision makers in the audience.
December 4, 2024

4

min read

Cloud for All: AV’s Next Chapter

In our recent AV Cloud Summit, Xyte VP Sales Andrew Gross shared his take on three key AV market trends regarding the cloud. We polled the Summit participants, and were pleased to see that Andrew’s insights were backed up by real-time industry sentiments from the hands-on AV decision makers in the audience. Here’s what we learned:

Trend #1 – Cloud for All

Andrew introduced the concept of a "cloud for all," which is a challenging trend in AV. Many in the industry recognize the potential benefits of cloud technology for issue detection, management, and monitoring. Yet Andrew noted that the industry's integrated and complex value chain make bringing this vision to fruition challenging. Current cloud solutions often serve only manufacturer-specific or dealer-specific clouds, resulting in siloed systems.

To address this, Andrew advocated for a unified cloud platform (spoiler alert: like Xyte’s Device Cloud) that connects all participants in the value chain, including manufacturers, dealers, integrators, consultants, and end users. This type of solution also provides visibility and collaboration across multiple brands and stakeholders – ultimately fostering full interoperability. He envisioned a "single pane of glass" approach for remote monitoring and management (RMM), enabling seamless communication and functionality across the industry landscape.

The ultimate goal, Andrew explained, is to move beyond managing individual devices and instead focus on managing entire rooms. Achieving this would require a cloud that delivers clear value at every step of the process and encourages collaboration among all parties. While this level of integration poses significant challenges, Andrew emphasizes its potential to transform the industry and improve efficiency through true cloud interoperability.

Trend #1 – What Do the Polls Say?

Our polls supported the idea that establishing standards in the cloud is critical to achieving "cloud for all" by fostering interoperability and collaboration across the industry’s fragmented value chain. Current cloud solutions are often siloed, serving specific manufacturers or stakeholders. Standards enable a unified platform where manufacturers, integrators, dealers, and end users can seamlessly collaborate.

Trend #2 – Fostering Sustainability Through the Cloud

Andrew made the case for renewed emphasis on sustainability and green initiatives in AV, with a focus on how the AV cloud can support these efforts. 

While many associate sustainability benefits of the cloud solely with reduced travel (owing to cloud-based remote management), Andrew explained that the cloud offers even greater sustainability benefits for manufacturers and integrators. The cloud is the key to moving beyond unnecessary hardware replacement and focus on creating a software-defined experience.

This approach, Andrew explained, involves enabling hardware upgrades, premium features, and extended functionality through software, reducing waste and increasing the lifespan of existing devices. He drew a parallel to Tesla, which transformed the automobile industry with software-driven updates, increasing sustainability by keeping vehicles on the road longer and retaining customers. Tesla’s 90% customer retention rate - compared to Toyota’s 50% - is a testament to the success of this model.

Andrew also addressed the importance of solving immediate problems while preparing for future innovations like AV-as-a-Service. By adopting standards-based cloud platforms and prioritizing software enhancements, the AV industry can not only improve efficiency and customer retention but also achieve significant sustainability goals.

Trend #2 – What Do the Polls Say?

Sustainability is increasingly important to the majority of AV Summit participants, as highlighted by our poll findings. 

By prioritizing a software-defined approach, manufacturers and integrators can enable hardware upgrades and premium features via software, reducing unnecessary hardware replacements. A standards-based cloud can advance green initiatives by transforming hardware into long-term, upgradable assets while supporting the industry's sustainability goals.

Trend #3 – Cloud-Enabled New Revenue Streams

Lastly, Andrew addressed the practical question: How does adopting cloud solutions generate revenue or save costs? He explained that while cloud initiatives may seem abstract, they actually provide tangible business benefits across the industry.

  • For manufacturers, Andrew noted that the cloud creates new revenue streams like aftermarket sales, software licenses, and feature upgrades. These not only increase profits but also enhance customer retention, creating a recurring revenue model. 
  • System integrators, he said, can finally make service contracts more tangible by leveraging cloud solutions. Instead of simply promising maintenance, they can now demonstrate ongoing value through visualization tools and proactive updates delivered via the cloud. 
  • For end users, the benefits primarily lie in cost savings. By utilizing cloud-based tools, organizations can reduce travel for site visits, minimize hardware replacements, and cut downtime, all of which enhance operational efficiency. 

Andrew emphasized that the “cloud for all” approach - through standardization and increased visibility - delivers clear financial returns, whether by generating new revenue streams, retaining customers, or lowering costs.

Trend #3 – What Do the Polls Say?

Concerns about budget (11.4% of respondents) and buy-in (31.4%) at the AV Summit can be alleviated if cloud solutions for AV are seen as revenue generators. 

The AV cloud enables manufacturers to unlock recurring revenue streams through aftermarket sales, software licenses, and feature upgrades, improving profitability and customer retention. System integrators can create more valuable service contracts by offering proactive updates and visualization tools via cloud solutions. And end users improve operational efficiency through cost savings from reduced travel, fewer hardware replacements, and minimized downtime. These tangible financial returns justify budget allocations and foster organizational buy-in.

The Bottom Line

The AV Cloud Summit happened in a pivotal moment for the AV industry – a moment in which cloud adoption has the potential to redefine its landscape. While the challenges of interoperability, sustainability, and financial viability are clear, the opportunities for transformation are even more compelling. 

More effective collaboration - through standardized platforms, software-defined functionality, and unified revenue models – will help the AV industry break down silos and foster innovation. This isn’t just about improving individual processes but about reshaping how stakeholders interact and drive value collectively. Such a shift requires not only technological advancements but also a cultural mindset change across the value chain.

Moreover, the emphasis on sustainability and customer-centricity are signs of a mature industry that recognizes its responsibility to both its clients and the environment. As hardware becomes increasingly software-driven and the concept of "rooms over devices" takes hold, the AV industry may find itself operating more like a tech-driven ecosystem than a traditional hardware market.

Ultimately, Andrew underscored (and the polls supported) that the road to a "cloud for all" is as much about vision as it is about execution. Those who embrace these challenges have the opportunity to lead the charge in defining the next era of AV innovation.

Intrigued and interested in getting even more AV cloud market insights? Watch the full summit here!

Tags

AV
AV Dealers
insights
device cloud
cloud
sustainability
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Cloud for All: AV’s Next Chapter

by

Julie Zuckerman
Senior Director of Product Marketing
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