Uncovering new business opportunities through AVoIP

Oct. 5, 2022
The right knowledge and the right distribution partner can go a long way toward building your contracting business as a value-added provider of AV systems.

It seems that everything we do these days has a pre-COVID dividing line. We’ve begun measuring things against what happened before 2020 while also considering how our lives have transformed. This period segmentation usually occurs after a dramatic change—and the pandemic certainly changed things, didn’t it?

What was the norm before the pandemic has been upended. According to a global study by McKinsey, executives reported that their companies accelerated technology adoption by as much as 7 years since the winter of 2020. Between digitalization, automation and artificial intelligence, COVID encouraged advancements by leaps and bounds.

The professional AV (pro AV) industry is no exception. In the last 7 years, pro AV has been migrating away from closed proprietary systems, effectively lowering barriers to entry for pro AV integration. This migration is opening pro AV integration to a broader community of datacom networking professionals. The shift from proprietary, channel-limited matrix switching to IP-based switching has changed the way we do business.

This approach is called audio visual over Internet Protocol or AVoIP. Unlike the proprietary, channel-limited matrix switches, IP switches have unlimited channel capacity. You’re no longer constrained by the channels available on a matrix switch. If additional channels are needed, it’s as easy as adding another IP switch to the network.

Gone are the days of swapping out one proprietary matrix switch for another with higher channel capacity. And what if the manufacturer’s switch is no longer available? These obstacles are a thing of the past. Pro AV integration is now available to anyone with IP networking expertise.

An expanding business opportunity

Pro AV integration and expansion opportunities begin with existing datacom or security customers open to AVoIP. When a datacom contractor or security integrator leverages these customers’ networks, they can use their expertise in IP networking to quickly implement value-added solutions and expand into new and profitable AVoIP business.

So how can businesses capitalize on AVoIP opportunities? It’s all about building solid customer relationships, paying attention to the customer’s environment, asking questions and working with the right value-added distribution partner.

From there, business expansion opportunities abound and could range from updating existing AV applications to adding or expanding applications such as unified collaboration and conferencing (UCC) or mass notification.

For example, imagine an integrator installing or upgrading a customer’s datacom network or physical security system in a commercial building, sports bar or casino. On the job, the integrator notices multiple monitors stretching across the sports bar, casino or perhaps on each floor of the commercial building. The monitors display entertainment and promotional content throughout the building or venue. The integrator notices that some monitors are displaying error messages. With a little extra knowledge provided by the right distribution partner, that integrator can ask some key questions to unlock an opportunity. It’s a win-win.

As illustrated above, there are major opportunities for datacom contractors and security integrators to expand into pro AV. According to a Userful.com infographic, AVoIP is expected to grow globally to $51 billion by 2027 with a 55% compound annual growth rate.

With the right distribution partner, IP network professionals can expand their pro AV business, capturing new revenue by tapping into their distribution partner’s capabilities and experience.

The global distribution partnership

In an increasingly competitive global marketplace, savvy integration professionals are recognizing the need to connect with distribution partners who provide access to global supply chains, a wide array of products and logistics expertise. These integrators have seen these relationships increase access to new customers without the hassle or expense of traditional business development.

Taking this further, with the right distribution partnerships, integrators can gain access to new accounts. From the pro AV side of things, new accounts can include traditional AV applications like conferencing and collaboration or mass notification, not to mention additional pro AV needs these customers may have down the road.

Local integrators install the customer’s pro AV solutions and provide ongoing service as needed. And when new AV needs arise, the business opportunity naturally falls to them, because they already have an established business relationship—a true win-win-win situation for customers, integrators and distribution partners.

Partner for the future of AVoIP

The industry is rapidly shifting to digital AV systems (AVoIP) and “as-a-service” solutions. The need for pro AV integrations is growing as the migration to diverse hybrid work environments continues. It’s a complex, fast-paced world, and this train is not slowing down. The truth is, AVoIP-based solutions are easier to administer, more dependable, connect over standards-based network infrastructure and can be remotely managed. And in this rapidly changing pro AV landscape, integrators are more important than ever. Integrators help buyers navigate evolving technologies and identify the best solutions for end users.

Likewise, tremendous business opportunities develop when integrators leverage the knowledge and expertise of the right distribution partner.

About the Author

Phil Langley

Phil Langley is Wesco’s senior vice president, global pro AV and UCC. Phil’s extensive background in power distribution and substation control set the stage for an early entry in the European pro AV industry. For more than 20 years, Phil has consistently led in nearly every facet of the enterprise AV space to consultancies to system integrators, global manufacturers like Bose, AMX and Harman as well as with ICT distributors across the globe.

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