Plan for the Future with DAM Flexibility
Once a technology reserved for companies in the entertainment and publishing industries, digital asset management (DAM) is rapidly becoming a corporate enterprise solution due to the growth of digital media content (video, graphics, photos, multimedia presentations) and the demand for its consumption. Yet the capital and resources required to deliver a DAM system have caused mainstream companies to question whether they can prove a financial return. Exploring alternative delivery options, including DAM as a hosted service, may be the answer.
Seeking the Right Solution
Businesses searching for a DAM solution are faced with three basic choices: installed software with in-house management; a hosted solution with outsourced management; or a combination of the two. Each approach has its own benefits and considerations:
- Organizations that have a sophisticated internal IT operation are most likely to benefit from an in-house solution. They have the hardware, software, budget and network infrastructure to support an internal system.
- A hosted solution offers significant advantages to companies with constrained IT resources—staff and budget—or companies whose use-case requires maximum uptime with the failover and redundancy that a hosted solution can provide.
- For some organizations, a compelling alternative is a hosted solution that can seamlessly transition in-house. This allows the organization to implement a pay-as-you-go approach, launching the solution immediately—and realizing the benefits—while concurrently building out their infrastructure and staff, and modifying requirements to prove maximum value before making a large investment.
A DAM system that is available on both a hosted and installed basis provides a "best of both worlds" scenario in terms of flexibility. This benefit can only be gained, however, if the system is fully browser-based, with full user functionality and consistent user experience—whether it's hosted or installed. One such solution is ClearStory Systems' ActiveMedia 7, a Web browser-based offering that provides a consistent interface and feature-set in both hosted and installed incarnations, as well as a proven path for migrating from one approach to the other as a client grows.
"Hosted services are rapidly gaining in popularity among a variety of end users, primarily because of their versatility and ability to be rapidly deployed," according to Mukul Krishna, DAM expert and analyst with Frost & Sullivan. "Hosted systems are managed by experts, which alleviates the necessity for a massive in-house investment in both staff and equipment. It also gives the organization the ability to better focus their resources on core business efforts."
ROI and TCO Considerations
When measuring return on investment (ROI), a critical consideration is the total cost of ownership (TCO). For an on-premise solution, the TCO includes the costs of hardware, software, support, professional services and ongoing administration of the system. If separate business units can utilize the same DAM solution for different applications, TCO is reduced by leveraging the knowledge and/or infrastructure gained through the first deployment. Each additional DAM implementation, therefore, should account for a progressively lower TCO.
For an outsourced or hosted DAM solution, while there are no direct equipment costs, you must factor in the ongoing monthly or annual fees. Because the advantages of infrastructure scale are already accounted for in the hosting fees, the cost of additional implementations does not decline as substantially as it does for installed applications.
A significant benefit of a hosted model is faster deployment, which may allow you to take advantage of a market opportunity sooner, enable an accelerated product launch and realize increased revenue as a result. For example, if your ROI model proves returns are possible in six months and your internal deployment may be delayed 12-18 months due to infrastructure or other concerns, it makes sense to outsource and begin earning returns sooner.
Making the Choice
The optimal DAM delivery method for each company is determined by the company's overall business model, enterprise adoption rate, and resource considerations. Making the correct initial choice and planning for future growth are as fundamental to the short- and long-term success of a DAM solution as any features and functionality that the DAM provides.
ClearStory Systems is a leading provider of high-performance solutions for digital media communications. ClearStory's contemporary software suite manages the enterprise digital media supply chain—from creation and collaboration, to lifecycle management and delivery—to give companies a competitive advantage, marketing agility, cost avoidance and maximum efficiency. Backed by premier customer support and service, ClearStory's award-winning products are easy to use and readily align with our customers' business objectives for both a rapid return-on-investment and low total cost of ownership. For additional information visit
www.clearstorysystems.com.
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