Digital signage - A new solution with SaaS?

Digital signage

Digital signage is a great way of targeting consumers, and that's pretty obvious from the numbers - digital signage solutions deliver an 18 percent increase in sales, compared to a two percent purchase rate in an ordinary retail environment.

But digital signage isn't perfect and can fall on its face if it isn't managed properly; issues like poor content, a poor carbon footprint and the ability for hardware to fail can be expensive. However, arguably the most significant issue for retailers is the hassle of linking the hardware and software of all the component parts; the screen, the media player and all other hardware and software. Component parts not talking to each other can can manifest itself in several ways, like an increase in downtime, high operating costs, a distorted image, an image size not suited to the monitor or in a lot of cases: no image at all.

This is where Software-as-a-Service (SaaS) comes in. There are hundreds of digital signage software developers offering various static solutions out there, available to all retailers - the key for them is to realise the most suitable for their business. Where traditional (and not always successful) shrink-wrapped software solutions may have been the software of choice in the past, an increasing number of software developers are offering SaaS as a more accessible, pay-for-what-you-use option.

What is Software-as-a-Service?

It is important to note that SaaS isn't a totally new concept. Indeed, SaaS was introduced in the 1990s with the emergence of the internet to eventually overrun the rigid, static, IT managed garden-walled environment of previous signage. 

SaaS works across all levels of digital signage, from delivery, cost-saving and functionality. As it is web-based, it can be accessed from anywhere in the world, essentially lending itself perfectly to global companies. Retailers who are not ready to realise a full digital signage package and all the associated services can utilise SaaS by saving on upfront licensing fees, reducing maintenance, management and infrastructure costs.

"One of the fears that permeates the digital signage industry is how to deploy and manage a digital signage system. SaaS takes the fear away from the process and provides a time for the user to get comfortable with the technology and realize the benefits. As time progresses, users learn to take more control of their digital signage system, if they choose to, and vendors should provide a path for users to evolve to a more user-controlled model," said Richard F. Trask, VP of Marketing Systems.

Key SaaS characteristics

• Providers network and software is accessible to customer.

• Activities can be managed remotely from the internet as opposed to on a retailers site.

• Application delivery is typically closer to a one-to-many model than to a one-to-one model, including architecture, pricing, partnering, and management characteristics.

• Patches and upgrades are updated automatically by the provider, meaning costly IT departments are unnecessary.

• Frequent integration into a larger network of communicating software - either as part of a mash up or as a plug-in to a platform as a service.

Breaking down the cost of SaaS

Customers who use SaaS are charged a hosting or subscription fee by the provider. This can be charged to the customer on a monthly or quarterly basis.

Providers can download SaaS straight to the end-users device, which then allows the end-user to have access to the providers service. This is beneficial because any software updates would be automatically updated for the customer, making the whole process more user friendly. Alternatively, shrink-wrapped software would need to be updated from an in-house IT department.  Plus, with shrink-wrapped software there are upfront license fees, plus fees for upgrades, and in some cases there are additional support fees. Under the SaaS model, the cost of software and associated services becomes an operational expense. Under the shrink-wrap model, the costs are a capital expense.

"Of all the drivers of the SaaS model, perhaps the key one for digital signage networks is the hesitance on the part of corporate buyers to invest in the resources, equipment, and specialized skill sets to deploy and manage a network," said Ken Goldberg, CEO, Real Digital Media. "For many entrepreneurial enterprises, the hesitance is replaced by financial inability. The SaaS model lends itself quite readily to meeting the scaling demands of each, allowing those interested in digital signage to test the concept while focusing investment on execution rather than back-end infrastructure. It has always been our view to enable customers to grow into an enterprise model, rather than burden them with one from the outset."

Although shrink-wrapped software solutions may seem antiquated, for some retailers this option of signage may still be successful. However, with the emergence of the web and SaaS pay-per-use optimisation and more software providers using SaaS, it is becoming a very real alternative to the traditional methods of delivering a successful digital signage message.

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Ross Densley

Ross Densley is a graduate from Bath Spa University, and has freelanced for several magazines ranging across a section of topics such as animation, business, film and lifestyle. When Ross is not working he writes and edits his own satirical website.

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