Introduction: Welcome to Issue 2!
Editorial: Selling Service Agreements to Anyone
News:
1. TeleSuite Perfects Life-Like Virtual Meetings
2. Optoma Announces High-Res Home Theater Projector Under $5,000
3. Learn to Sell Networked AV Systems at Kayye Consulting's NSCA Course
4. A Gary Kayye eNewsletter Exclusive Scoop: Crestron Tells Extron to 'Try Again'
5. Perfect Partners – Smart and Polycom
6. Barco's Compact Digital Cinema Projector Built for Smaller Screening Rooms, Editors
7. Another ProAV Company Eyed by the SEC
8. New 40-Inch LCD Panel From NEC-Mitsubishi Electronics Display
Feature: My Predictions for 2003 – Part 2 of 2
Introduction Welcome to Issue 2!  Welcome to Issue 2 of my (still unnamed) newsletter. I can't begin to tell you how grateful I am for all the positive feedback — I have received compliments about both the content as well as the format. Admittedly, I was extremely nervous when I finally pressed SEND for that first issue to go out, but I am happy to report that it went out without a hitch. We had over 25% of you forward it on to others to read so I think that's a positive sign. And, the best part is that we increased our subscriptions after the first issue and only had one person, yes one, unsubscribe – and we never actually found him on the list to unsubscribe him!.
As expected and anticipated, Part 2 of my 2003 Predictions article is enclosed in this week's issue in addition to the news stories I felt were newsworthy enough to include below. It's a lot harder to pick the stories for each issue than I thought it would be as there is just a lot of news. But, as promised, each story has a relevance to the ProAV market and I hope that you see value in the ones I selected. Finally, as I was writing this introduction to Issue 2, I just received an e-mail from ICIA http://www.icia.org stating that it just discontinued its relationship with Köln-Messe, producer of the Photokina Show – the show in which InfoComm Europe was held. Instead, ICIA is planning to hold its own trade show in early 2004 – the location of which will be determined later this year. Although we do have quite a few readers in Europe, this news generally wouldn't be newsworthy. But, I find it interesting as it leads me to believe that ICIA and Koln-Messe may have had some kind of "falling out" at the last minute, since ICIA's announcement of this new show doesn't provide any details of the when, where or how. It is unusual to announce a show and not announce its location or dates. Could it be the economy or the outlook for 2003 in Europe or was there simply a disagreement between ICIA and Koln-Messe? I doubt it, as what really appears to be happening is, based on their news announcements, Koln-Messe has decided to target end-users as its attendees while ICIA wants the focus to stay on the dealer channel – if this is the case, I commend ICIA for this decision. Both plan to have their shows this year, independent of each other. Stay tuned for more on this story later. Well, I hope you enjoy reading Issue 2 of my new newsletter and feel free to forward this on to anyone you feel may benefit from its content. Subscription information is at the bottom of the newsletter. (be sure your browser's settings for pop-ups are not disabled before you subscribe!). Anyone who subscribes before March 10 is eligible for our random drawing for a free TiVo system! And don't forget to send in a suggestion for a name for my newsletter. We're giving the lucky winner a TiVo Series 2 and a home networking kit. Send your suggestions to [email protected] by March 10th!
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Editorial Selling Service Agreements to Anyone By Gary Kayye, CTS I must admit, I was overwhelmed by the positive response I received to my last editorial – Service Contracts are Easy to Sell: Sell Job Security. It is obvious that most of you see the value proposition of selling service contracts as well as the margin potential. Many of you asked how to do it, exactly, and I have set up a link to a White Paper our firm wrote last year describing the concept of Proactive Service Agreements and how to integrate and sell them, profitably! If you're interested in downloading a copy of it (in Adobe Acrobat's PDF format) simply go to http://www.kayye.com/whitepapers/psa.pdf and you'll be able to download a copy of it. There is no question, as you will see once you've successfully set-up a proactive service agreement sales team or approach, selling service or preventative maintenance contracts that are proactive are a lot more profitable than selling equipment. And, as such, commissions for selling such services should be higher than those for selling products. This will encourage systems sales people to not only sell service contracts up-front, but also to attempt to sell service contracts for legacy systems (systems installed either by your company a long time ago or sold and installed by one of your local competitors who don't have a service department). And, of course, this is all assuming that you are taking advantage of the new "proactive monitoring" tools available from virtually any IP-addressable ProAV equipment, or, better yet, equipment integrated using a full-fledged Ethernet-based control system such as Crestron's new MP2 system – the one I talked about in our last issue. This applies to both your current systems as well as the legacy systems I mentioned above. Simply by adding an Ethernet card to the current control system in that legacy system will allow you to proactively monitor and control the system. And, don't forget, this won't just crack the door for you to be the in-house AV company of choice for upgrading and adding on to the client's current system, but will basically kick open the door for you to be adopted as their ProAV partner of choice. Back to top
News 1. TeleSuite Perfects Life-Like Virtual Meetings  TeleSuite announced the TeleSuite Managed Video Array, its first digital video system for virtual conference rooms. The solution combines software, hardware and network infrastructure for unbelievable image quality (1.23 million transmitted pixels) and lowered bandwidth requirements. The MVA-400 product line utilizes a 16-foot wide display (4 feet tall) that fills the entire field of view of the human eye and accommodates a room of up to 20 participants. The MVA-200 line incorporates an 8-foot wide display to accommodate up to 10 participants. These MVA systems can be incorporated into their room infrastructure, which takes control of acoustics, lighting and seating configurations. Sound complicated? I was told that attendees do not have to touch a SINGLE button to conduct a meeting with the remote location. Just schedule, then show up!
The system is centered around a super high-resolution (4096 x 768) panoramic display (using 4 XGA projectors connected and seamed together visually), while transmitting that same resolution to a remote location, using a 100% digital end-to-end (camera through display) connection. This is NOT your traditional videoconferencing system! How the heck do you transmit four times the resolution of XGA between two locations? Very carefully. By using a proprietary, high-resolution array camera (16:3 aspect ratio) and customized panoramic lens, a wide field-of-view can be captured in each location, and then input into TeleSuite's Compression Array Codec, which is an extreme implementation of the new H-264 (MPEG4) compression standard. The high definition signal is carried over a controlled IP network, through TeleSuite's management center. On the other end of the system, the Telesuite codec outputs the signal to an array of edge-matched projector engines (4 and 2 in the MVA-400 and MVA-200, respectively) using a digital DVI link. The resulting image is projected on a panoramic curved rear screen. Although you may not have heard of TeleSuite, they have been around since the early 1990's perfecting this technology. Pricing on the MVA starts at $80,000. For more information, go to http://www.telesuite.com  2. Optoma Announces High-Res Home Theater Projector Under $5,000
Optoma claims that its new H56 projector is a new XGA DLP projector and has 2000:1 contrast ratio (but, this can't be ANSI contrast ratio), 1024 x 768 in 4:3 ratio and 1024 x 576 in 16:9. Optoma's biggest gain, however, is its noise level. Rated at 32 dB, that is about as quiet as I have seen on a DLP spec for a projector of this caliber. And, of course it accepts HDTV connections in the form of component video cables. But it also accepts HD through its DVI port – something a lot of home theater aficionados are purporting may be the eventual HD home format connector (although, I doubt it). Optoma is aiming this projector toward the home theater market, but I can see it being used in just about any small venue for video-intensive applications. The Optoma H56 sells for $4,399. For more information, go to http://www.optoma.com  3. Learn to Sell Networked AV Systems at Kayye Consulting's NSCA Course
Have you known you have to get into ProAV networking but been putting it off? No problem! Kayye Consulting will lead an NSCA seminar March 13, 8 a.m. to noon, to teach dealers how to sell networked AV systems. At "Networking for ProAV Dealers: How to Justify It, Sell It and Apply It," you can learn how networked projectors, switchers, control systems and other networked hardware can be integrated into a system. During the seminar, you'll also hear several case studies of successful network installations. The course is targeted to integrators wanting to become AV/IT integrators, to sales people who sell the systems and to business owners wanting to provide AV/IT to their customers. The NSCA convention is March 11 – 15 (the seminar is March 13th) in Dallas. Click here for more information  4. A Gary Kayye eNewsletter Exclusive Scoop: Crestron Tells Extron to 'Try Again'
I can't wait to get this product in my office and evaluate it. I am privileged to be the first news-source to bring you information on a totally new product from Crestron. And, finally a company has recognized the clear advantage and profit-potential of the IP-controlled ProAV system. Crestron's new RMC2e is the best, THE BEST, integration of Ethernet-to-serial conversion I have seen thus far. Coming less than a month after Extron introduced its Ethernet-to-serial interface, the IPLT S2, Crestron's RMC2e is much more than the Extron box at virtually the same price. Both the Extron and the Crestron products allow you to control virtually ANY serial (i.e. RS-232) controllable ProAV gear via Ethernet or IP commands, but the Crestron box adds one-IR serial control port as well as 4-input control ports, all for $700. And, since it's compatible with Crestron's RoomView software means that, in my opinion, it's really a complete (mini) control system in a box. Although Crestron is obviously positioning the RMC2e to compete head-on with Extron's IPLT S2 IP-interface, I think that Crestron is selling this product short. I really think there are a lot of small systems where 4-input device, 1-IR device (remember, one IR port can control multiple IR devices) and 2-RS-232 control ports are good enough for some complete control systems. And, connect the RMC2e (via Ethernet) to a PC or a PDA on a network, use Crestron's eControl2 software and it's a full-fledged MINI control system that's capable of competing with both the Extron MediaLink system as well as the SP Controls systems – all for less than half the dealer cost of both of those systems! I have asked Crestron to send me one of these RMC2e control interfaces and I'm going to evaluate it and I will let you know in April what I thought. But, at first glance, it's clear to me that Crestron might want to take another look at this product and re-market it. Sure, it does everything the Extron box does so it should be compared to that product, but it's really more of a mini-control system – so why not promote it that way? As this was a Gary Kayye eNewsletter Exclusive Scoop, the RMC2e isn't officially being introduced into the market until next week, so there is no link to the brochure for it on their web site yet. But, I was told by Crestron's PR department that it would be there by the end of next week! So, keep checking http://www.crestron.com  5. Perfect Partners – Smart and Polycom
Video and Audio conferencing company Polycom and electronic whiteboard maker SMART Technologies teamed up to integrate their products, creating a whiteboard specifically for multimedia collaboration and conferences. Although this is just one joint product from these two companies, this is a perfect marriage of technology and I suspect you will soon see more. SMART is a company I consider to be the ultimate in understanding the trend toward collaboration and away from presentation. Polycom is considered by many to be the premiere VTC company now and this collaboration has produced a powerful product. No, this product is not as big of a deal as the Sympodium, but I suspect future versions may be! The new product, called the 3000iPower Integrated Solution, combines video and whiteboard systems in a touch-enabled display, so it eliminates the need for a keyboard or remote and the on-board PC lets you access and share PC applications. The system comes with a 67-inch XGA rear projection display, a high-fidelity audio system, an interactive SMART electronic whiteboard and a mobile cabinet to hold components. The new system is a combo of Polycom's iPower 9000 and the Rear Projection SMART Board 3000i. The iPower 9000 series has an embedded 12-port multipoint control unit that can bridge up to 12 locations in a call over IP without requiring cascading links. It comes as a complete enterprise system or as a standalone codec for integrators. SMART's 3000I has the 67" screen and an integrated projector. It lets the user control computer software using the touchscreen and they can write over top of any application with either their finger or a stylus. Those files can be saved, edited and distributed. The latest version of SMART Board software for Windows is now available in English, French, Spanish, German, Japanese, Chinese Traditional, Chinese Simplified, Korean, Portuguese and Italian. For more information, go to http://www.polycom.com  6. Barco's Compact Digital Cinema Projector Built for Smaller Screening Rooms, Editors
We, the ProAV market, will not be part of the digital cinema roll-out later this decade as it is likely to be financed and managed by the movie studios. But we will be part of everything in-between as well as all the "other" venues that have historically shown films and will suddenly have to switch to digital projection – as that's how movies will be exhibited. So, this new projector is a start, and should be considered as a formidable one for not only what Barco's promoting it for (screening rooms, etc.), but also consider university on-campus student union theaters, old art house theaters and even as a potential replacement for traditional slide projectors in local theaters. The new DLP digital cinema projector from Barco is designed for screens up to 33 feet wide. Those who benefit are people with smaller theaters and those in post-production houses responsible for editing digital masters, and I doubt that niche will be filled by anyone other than the ProAV market. The DP30 supports RC567 touch screen control, lets you manipulate the color space, and allows you to download proprietary 3D Color Look-Up Tables to match the look and feel of the film. The DP30 has Barco's 'Communicator' setup, calibration and remote control software and it supports the RC567 touch screen control. It has the security, subtitling, color and contrast imaging benefits of the Texas Instrument's DLP Cinema* processing. A few tech. specs: - Single or twin anamorphic lens attachments for quick display format change
- Local and remote (Ethernet) diagnostics
- 1280 x 1024 per red, green and blue channels.
- Bit depth: 45 bit (15 bit per color)
- 1350:1 contrast ratio (full white / full black – meaning, NOT ANSI contrast ratio)
- DVI standard resolutions (640×480, 800×600, 1024×768 and 1280×1024)
For more information on the DP30 go to: http://www.barco.com 7. Another ProAV Company Eyed by the SEC Not writing about the recent SEC probes would be akin to ignoring the kangaroo in your living room. But it's hard to know what to say when such serious events happen to companies in our industry and information from the SEC is, to say the least, absent.. For those who don't know, in January, the SEC began investigating ClearOne for improper revenue reporting, and while the company is complying with the requests for documents from the SEC and Nasdaq, it denies the allegations. MCSi, Inc., too, announced that it is under investigation by the SEC and received a subpoena from the SEC seeking production of documents. MCSi announced it will fully cooperate. Reuters news service reported that Sharmila Rao, Vice President of Corporate Communications, told them: "We've been working with the SEC and based on the documents that we've received they need more clarification so that's where we are right now," she said. "At this point, I'm not at liberty to give more information." In addition to the SEC complaints, there are also class-action lawsuits filed against both companies (but that virtually ALWAYS happens, as law forms seem to always make money with these sorts of situations). Still, all this has to hurt, as it not only is drawing corporate resources to fight the lawsuit, but they are a disctraction in this kind of an economy. Our industry and every industry is going to see more of this sort of thing since the SEC has ramped up its resources for investigating corporate accounting practices. The SEC has a new leader, more power granted to it by Congress and a much bigger budget proposed for 2004 for precisely this purpose. So, I am sure these will not be the only two companies probed this year. For more information, go to http://www.clearone.com or http://www.mcsinet.com
 8. New 40-Inch LCD Panel From NEC-Mitsubishi Electronics Display.
There is no doubt, in my mind, that LCD will eventually displace plasma in the static signage markets. LCDs are brighter than plasma and, best of all, don't burn in. But, as plasmas are phosphor-based imaging devices (like the CRT) and are as close to color-accurate as you can get, plasma looks a lot better, so far, on video processing. But, if your installation need is for static signage (menu boards, logos, arrival and departure times, etc.) you need to consider specifying LCD instead of plasma. There are a host of manufacturers who have or are getting ready to introduce large-format LCD displays including Samsung, Clarity and Sharp. Now, NEC-Mitsubishi Inc. just introduced its largest LCD display – a 40-inch LCD panel for public display, conference rooms, information kiosks, financial operations, trade shows and retail and airport signage (in other words, digital signage). The NEC LCD4000 has 1280 x 768 resolution, is purported to have a 600:1 contrast ratio, RS-232 control and, doesn't burn in. It lists for $5,799.99. For more information, go to http://www.nec-mitsubishi.com Back to top
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Feature Article My Predictions for 2003 – Part 2 of 2 By Gary Kayye, CTS Last issue, we reviewed my predictions for 2002 and I gave you my predictions for 2003 such as WiFi5 and IEEE 802.11a, the improvements in videoconferencing systems and the increase in networking. Today, we look at the biggest trend I see for 2003. The biggest trend of the year for dealers to watch is that 2003 will bring a power shift from AV to IT. In other words, IT managers will become the most influential decision makers in large corporation and universities. Maybe, right about now, you are thinking, so what? What's the big deal? They're just another kind of buyer – just another type of personality. Well, in some cases that may very well be true, but I don't think that will be the case the majority of the time. Let's take a look at why. First, they buy cheap. IT managers are accustomed to buying based on price. They seek and seek the cheapest solution to a problem and generally,. are not loyal. They're loyal to the cheapest seller – most of the time. They are loyal to manufacturer brands and models, especially software-oriented ones, but not loyal to the distribution channel. And finally, they aren't early adopters. They are tried and true buyers. Most IT managers don't like to be guinea pigs with new products, systems or technologies, so they love simplicity in design. There's that simple word again. Speaking of simple, I am simply amazed how far projectors have come. The engineering that's gone into the new generation of LCD and DLP projectors is staggering. But what impresses me most is how simply they produce awesome images. It all started with the auto-image adjustment imbedded in the projector and now it's virtually a perfect alignment control. I commend manufacturers like Sony, Texas Instruments and EPSON for setting the standard that will surely make the projector a mainstream purchase in 2003 and 2004. In fact, new imbedded technologies and features bring us the industry's first generation of sub-$1,000 projectors. They will not just be cheap, education-oriented projectors either. They will be fully-featured, SVGA and VGA models with enough light output for most environments. They won't be aimed at the install market, but you'll certainly see a few of them appear there. And, speaking of full-featured projectors, watch for manufacturers like Dell, HP and maybe even Apple to become mainstream projector brands in 2003. Dell's already caused a stir by continuing to lower the price bar every few months. And Dell now has models with end-user pricing matching what half the ProAV dealers pay manufacturers for similar models. Of course, none of these models are install boxes, but it's still creating a price model that makes them extremely competitive, instantly. And, speaking of competitive, the big story on the horizon for many of the projector manufacturers is the pending competition from Taiwan, Korea and even China. While everyone was predicting a consolidation of the projector market into a few, powerful manufacturers, these countries were busy funding a host of future LCD and DLP manufacturers that will certainly take the lead in many of these price-oriented buyer models. But don't count out InFocus, Sony, Epson or NEC yet. They will respond, and will respond in a big way. Finally, let's talk about the economy. Who would have thought we would still be deep in a recession that we all thought would never happen in the first place?. I predicted that we would be free and clear of this recession months ago. All indications are, however, that we are starting to come out of it as consumers start to buy again. But as I said earlier, I feel there will be pricing model changes. In fact, I believe that this recession has re-established or re-positioned the price of technology forever. Where we could charge virtually anything for new technologies as they debuted before the recession, you can't do that now and will unlikely be able to do that any time in the near future. But, that doesn't mean the future is bleak – to the contrary. In fact, the recession has created value in services. Look who's growing, Target or K-Mart? Target. Why? They both sell stuff cheaply, but Target does it with better perceived and real value in services. Better people, better stores and better merchandise. I know you must be reading this and wondering what the heck this has to do with ProAV sales. Well, think about it. People are spending less money and are spending it more wisely – not necessarily on better value (if that were the case, K-Mart would be growing faster than Target and not only is that not the case, but they are bankrupt). People will pay for better services. Sure, they want better prices and will continue to seek them out, but they will be willing to pay for better service as technology will no longer be the driving force factor in most decisions. People will be that driving force. And, last time I checked, we had some really good people in this market. Back to top
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Well, that's it for the second edition! Thank you for spending time with me as we muse the industry's happenings. To send me feedback and news tips, write to me at [email protected]. A little about me: Gary Kayye, CTS, founder of Kayye Consulting. Gary Kayye, an audiovisual veteran and columnist, began the widely-read KNews, a premier industry newsletter, in the late 1990s, and created the model for and was co-founder of AV Avenue – which later became InfoComm IQ. Kayye Consulting is a company that is committed to furthering the interests and success of dealers, manufacturers, and other companies within the professional audiovisual industry. To read more about my background, our staff, and what we do, go to http://www.kayye.com Back to top
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