Pricing
What are the key costs (hardware, server, maintenance) for on-premise signage?
Breakdown of on-premise setup costs.
An on-premise digital signage system is designed for organizations that want full control of their data, security, and infrastructure. While it offers great flexibility and independence, it also comes with higher initial costs compared to cloud solutions.
1. Hardware Requirements
The backbone of any on-premise system is its server hardware. Most businesses use a Windows-based i7 server that can manage anywhere between 50 and 200 screens. A reliable server like this costs about $3000 to $4000. If your network is larger, you might require multiple servers or backup servers, which will increase the total cost.
Each display also requires either a media player or an inbuilt system-on-chip that connects to your signage software. These players cost around $100 to $150 each.
2. Software Licensing
Unlike cloud-based software which uses a subscription model, on-premise systems are licensed on a perpetual basis. Essentially, you pay the vendor for the software one time and can continue using the software indefinitely. In most instances, the software license ranges from $2500 to $3000 for the server and $600 to $700 per screen. Depending on the size of your installation needs, some vendors also offer potential for custom pricing.
3. Maintenance Costs
Ongoing maintenance is another ongoing consideration. Annual maintenance contracts (AMCs) could be roughly 10% of the entire setup value and would include updates, technical support and troubleshooting support access. Additionally, you may require an IT technician or network engineer who is responsible for the ongoing maintenance and security checks.
4. Overall Cost Example
As an example, if a company implemented an on-premise system with 20 screens, their total installation price could be from $20,000-$25,000 inclusive of the servers, licenses and first year maintenance costs.
Steep upfront cost is a concern but on-premise digital signag is beneficial because you have full control over your infrastructure, confidence that your data is secure, and the long term cost savings associated with not paying any monthly fees.
