Change within the audiovisual industry is nothing new to those of us that are familiar with this industry. As we have addressed in the past, many dealers that traditionally focused on product solutions are now turning to new opportunities to reinvent their businesses. Dealers that have offered systems integration services for many years have successfully streamlined their businesses into successful operations that can address the many facets of presentation systems from a broad perspective. They have developed companies that can address everything including boardrooms, conference rooms, demo facilities, training and classrooms, command control centers, auditoriums and even home theaters!

The dealers that are just entering the systems integration market that seek our advice always hear a consistent message; focus marketing efforts and opportunities in the couple of applications that they will be able to provide the best service and be most successful. Recently, I have recognized that there is a hybrid base of companies that are taking this approach to the extreme. I tend to recognize these companies as Vertical Systems Integrators (VSI's). So what makes a VSI different? These companies share some common characteristics.

- Each of these companies focuses their attention in not only a specific application category, but in addition focus their attention on marketing a specific solution. This solution is usually marketed worldwide.

- All VSI's make a significant portion of their revenue from some type of ongoing service, instead of on hardware and integration.

I was recently discussing a specific VSI application with a manufacturer in our industry, and realized that the lines between the manufacturer, integrator and buyer are blurred. I could not categorize a VSI as any one of the above, but realized that they fit into all three areas. Their solution is so unique, that in many cases they have been forced to manufacture some or all of their own products to meet the requirements of their solution. In most cases, these companies integrate their own systems, as opposed to contracting with other companies. Lastly, some of these companies actually do not charge for hardware or integration AT ALL! They basically provide the solution at no charge, in exchange for monthly service agreements for the service that they provide with that specific system.

So, who are these companies? Here is a brief listing.

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