10 Dec 2018 · 4 min read

Music to UCaaS Ears? The Audio Productions "as-a-Service" Model

The progressing demand for services delivered over the cloud and a focus on OpEx instead of CapEx expenses has transformed go-to-market strategies for many m...

Rob Scott

The progressing demand for services delivered over the cloud and a focus on OpEx instead of CapEx expenses has transformed go-to-market strategies for many modern businesses. We've already started to see things like Software as-a-Service and Communications as-a-Service. Now, Audio Productions, a leader in the audio marketing world, has begun to offer a Music on Hold as-a-Service solution.

Audio Productions is a company that has built it's entire reputation and brand around the concept of customer service and experience. We caught up with Andrew Jones, Director at Audio Productions, to learn more about their recent as-a-Service offering, and why the company has decided to move into this new OpEx space.

What Is the Audio Productions as-a-Service Model?

The Audio Productions team is made up of people at the forefront of the audio marketing world. This company believes that it's important to have the right lasting first impression on your target market and that Music on Hold solutions are an excellent way to do that.

"The new as-a-Service model was something that we started rolling out in May. Before that, when we were speaking to partners about what they needed from us, a lot of them said that we could benefit from exploring an OpEx model, so that's where this idea came from. We actually don't have a name for the service yet, because it's just finished trial, but we're excited about what it means for our resellers. We built the OpEx service around a three-year license that fits with the needs of most resellers, although we can be flexible with that package."

What's the Difference Between the Existing Model and the New Model?

I was interested to find out more about how the Audio Productions as-a-Service model offered something unique to channel partners and resellers. Andrew told me that the original model was a purely up-front CapEx solution, with payment due within thirty days of an invoice.

"It was just a one-off package that resellers would buy. They might get a two-prompt on-hold message for circa £100 for instance, and the next time the customer wanted to order a new recording they would pay over again. That was the original model, and it was something that had a place, and continues to have a place because customers will always need to make ad-hoc changes."

The as-a-Service model was designed to offer resellers something that they could bundle into every sale.

"This new OpEx service fits more naturally with the swing towards cloud that we're seeing among companies today."

Is the Shift to OpEx Significant for You Right Now?

There's been an overarching shift in mindset towards more agile, cloud-based communications and OpEx solutions for business of late. This is something that Audio Productions has undoubtedly noticed and aimed to rectify with their new go-to-market solution.

"There are very few businesses out there that are looking to pay for everything up-front these days. A lot of companies prefer to charge on an OpEx model, so it just makes sense for them to be charged on an OpEx model too."

Andrew noted that there are still some legacy players out there, but they're already consulting with experts on how they can switch into the new OpEx framework. "I think it is difficult for some resellers to move into this new environment, but Audio Productions tries to work with the portion of the market that's committed to creating a business for the future, based on a recurring revenue model."

There's a financial benefit of embracing the OpEx option for resellers, as it allows them to build the relationships that they have with their customers on a deeper level. They can then start to develop new marketing conversations and sales opportunities. As Andrew said, "We're giving our resellers a complete sales package for their customer, and people will be appreciative of that."

With Music on Hold solutions, Audio Productions aims to give their customers a portal into what the business can offer, and an insight into the kind of experience that end-users are going to get.

Has the as-a-Service Model Been Popular So Far?

The Audio Productions as-a-Service model has only been on trial since May, but I was interested to see whether the company had seen any growth in the offering yet. Andrew told me that in his opinion, access to an Audio Marketing solution is a crucial part of building a successful branding proposition.

"Ultimately, the marketing you have with your music on hold solution has to be as strong as it can be because you're only as strong as the weakest link in your branding chain. We're seeing the trend of customer experience becoming more important in the marketplace, and businesses know that they only way they can differentiate is through those meaningful moments."

The as-a-Service model has been a particularly popular solution for many businesses so far, and Andrew told me that Audio Productions already sees traction with their offering. "We've had more interest from existing accounts because they've been asking about an OpEx solution for a while now. With our newer accounts, we find that it's sometimes easier for them to start with the ad-hoc one-offs and work their way up."

Currently, Out of the 200+ UK resellers that Audio Productions serves, a good percentage of them are already moving to or thinking about using the OpEx model.

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