If you’re like many organizations in the new year – You’re staring at a proposal for a major AV system upgrade, and the price tag makes your eyes water. We’ve all been there. At VIcom, we’ve guided countless organizations through this exact scenario over our two decades in the business. The question isn’t just about whether to invest in new technology – it’s about how to do it smartly.
Let’s break down your options in a way that actually makes sense.
Understanding AV as a Service (AVaaS): The Game-Changer
Remember when everyone bought software in boxes? Those days are long gone, and AV technology is following suit. AV as a Service (AVaaS) is revolutionizing how organizations access and manage their audiovisual technology. Think of it as your all-inclusive AV solution – hardware, software, installation, maintenance, and support, all wrapped into one predictable monthly subscription.
We’ve seen organizations transform their entire approach to AV technology through AVaaS. Instead of wrestling with massive upfront costs, they’re accessing cutting-edge technology while keeping their finance team happy. It’s like having a premium cable package for your organization’s AV needs – everything you need, when you need it, without the sticker shock.
The Real Story Behind Leasing AV Equipment
Let’s be transparent about leasing: While monthly payments are lower than the upfront cost of purchasing, making it easier on your immediate budget, the total cost over time often exceeds the purchase price. However, this isn’t necessarily a bad thing. Think of it like choosing between buying and leasing a car – sometimes, the flexibility and predictability of monthly payments outweigh the long-term cost difference.
From our experience working with clients across various industries, we’ve seen leasing work particularly well for organizations that:
- Need to preserve capital for other strategic initiatives
- Want to maintain technological flexibility
- Prefer predictable monthly expenses
- Can benefit from potential tax advantages (though always consult your tax advisor)
The Truth About Buying AV Technology Outright
Here’s what we’ve learned from helping clients who chose to purchase their AV systems: While avoiding interest charges and lease payments can result in lower total costs (assuming well-managed maintenance and replacement costs), it’s not just about the money. Consider this: Technology evolves rapidly, and while you can sell owned equipment to offset upgrade costs, you’ll need to plan for eventual replacements.
Think of it like owning a home versus renting – ownership gives you control but comes with responsibilities. Our most successful clients who choose this route typically have:
- Available capital for upfront investment
- Strong internal technical support
- Clear technology roadmaps
- Stable, long-term AV needs
Navigating Financing Options
Between leasing and outright purchase lies a spectrum of financing options. Equipment loans and lines of credit provide ownership pathways with payment flexibility, while leases offer payment flexibility without ownership. Each option comes with its own set of trade-offs, much like choosing between different mortgage types when buying a house.
Making Your Decision: A Strategic Approach
After helping countless organizations navigate this decision, we’ve developed a framework that considers:
- Current and future budget constraints
- Technology refresh cycles
- Long-term AV strategy
- Internal support capabilities
- Growth projections
Our goal with every client we work with is to become a trusted partner in all phases, and that includes decisions involving investment because we know that can be as important as the solution itself. If you’re ready to sit down for a free consultation to discuss your next project, and the best way to budget for it – Simply fill out the form below and we’ll be in contact!