Prosumer Devices and Hardware-as-a- Service Models

While most firms and remote employees rely on the same tools as before for productivity (e.g., Excel for spreadsheets), the decline of in-person interaction has focused greater attention on solutions targeting collaborative workflows and intra-team communication.

Even prior to the pandemic, video conferencing software boasted wide adoption. Many remote workers had exposure to consumer solutions such as Skype, Facebook Messenger, and Apple FaceTime, or to corporate solutions such as Zoom, Microsoft Teams, and/or GoToMeeting.

This was key to the software's quick adoption as the defining tool for remote teams. Parks Associates consumer survey data confirms that remote employees utilize video platforms on a more frequent basis than typical internet users, albeit at levels well below 100%.

In its “New SMB Landscape 2020” research, Parks Associates surveyed over 1,000 IT decision makers at small and medium businesses. The study finds that:

• Videoconferencing services comprise four of the top 25 business applications used, with Zoom ranking #2 overall, trailing only Microsoft Excel (42%).
• Two-thirds of SMBs conduct internal meetings using Zoom and other common platforms like Skype, Microsoft Teams, GoTo Meeting, and Cisco Webex, with external sales calls (44%) and vendor support (39%) rounding out the top three use cases.

Initially in the pandemic, it was unknown how suitably video tools would replace in-person communication, but such concerns have since dissipated, with 79% of respondents in one survey by Global Workforce Analytics rating video meetings equally as productive as those held in-person. Frequency continues to grow steadily, with Microsoft telemetry data indicating a global 2.5X increase in (time spent via) Teams meetings since the pandemic began.

Prosumer Devices and Hardware as a Service Models

Laptop-integrated webcams may be ubiquitous, but their audio-visual capabilities are designed for casual home users rather than the demanding needs of remote workers.

According to research from the Ponemon Institute, external headsets and webcams provide an initial step up in quality and are the leading accessories requested from IT managers since the pandemic began.

Given sub-$100 prices for full HD or even 4K resolution, plus light correction, noise cancellation, and other advanced features, these webcams provide cost-effective improvements for conducting remote meetings.

Beyond prosumer-level hardware, video conferencing platforms promote enterprise-level solutions for hybrid teams working both on-premise and remotely. Designed primarily for larger groups in dedicated rooms, they feature integrated large-screen displays, multiple camera streams, AI computer vision, and sound algorithms; list prices are accordingly beyond the reach of most individuals or even SMBs.

To improve affordability, vendors have introduced HaaS (Hardware-as-a-Service) programs lowering upfront costs and streamlining upgrade cycles while locking customers into related subscription lease agreements (I.e., "Zoom Room" licenses are an additional $50/month).

Due to their appealing décor and novel combination of premium features, Parks Associates believes these products will attract interest from quasi-residential customers like MDU communities, college campuses, and hotels. Instead of drab “business centers” that are often little more than a few computers and a printer, these underutilized locations can be transformed into a marketing differentiator generating additional revenue streams.

Parks Associates’ recent “Opportunities in Multi-Family Properties” study found high willingness amongst current renters to pay additional fees for improved community features, with 30% indicating they would pay an average of $19/month for shared office space.

Communal offices are also a top amenity desired by those intending to move into an MDU soon, with 62% of current non-residents rating the feature as important. Even if allocated across smaller properties with only a few dozen residents, the additional rent generated more than covers the associated monthly OPEX. These new videoconferencing centers also naturally complement bulk internet services modern MDUs often bundle with rent, bolstering resident uptake of high-quality, turnkey internet connections.

This research is an excerpt from Work Transformed: Impact on Communications and Technology Markets. This report, authored by Eliot Jarrett, Sr. Contributing Analyst, Parks Associates, outlines how different industries have adjusted their work environments and processes to accommodate social distancing guidelines, the technologies that businesses have adopted to accommodate new work processes, and the emerging support needs driven by the adoption of these new technologies.?More info: Work Transformed: Impact on Communications and Technology Markets

We welcome all comments and feedback about our research.

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