As AI transforms the digital signage landscape, integrators face a strategic crossroads: keep investing in expensive proprietary CMS platforms, or collaborate with established software providers and relinquish some control. In this op-ed, Stefan Schieker examines this high-stakes dilemma – one that could define the future success of many integration businesses.
Opinion: The Integrators’ Dilemma – Control vs. Scale in the Age of AI
Software has always been the backbone of digital signage, and for years, integrators sought to control this critical layer by developing their own CMS platforms. The rationale was clear: owning the software meant tailoring solutions to client needs, maintaining flexibility, and safeguarding margins. Entry barriers appeared low, and the perceived benefits of control were high. But reality soon set in – developing and especially maintaining a competitive CMS is expensive, and many integrators underestimated the long-term costs. Only those with scale – typically above 100,000 active licenses – could justify the investment. The rest leaned on the term “strategic investment,” often masking unsustainable economics.
Now, the landscape is shifting. AI is changing the game, bringing both opportunity and challenge. While coding costs are falling, the integration of advanced AI features demands significant investment – particularly for CMS platforms lacking modular, API-first architecture. The break-even point is no longer 100,000 licenses but closer to 500,000, a threshold reached only by a few global players like Stratacache, Samsung, Uniguest, Navori, and Poppulo. At the same time, lower development costs are accelerating innovation, making it harder for smaller platforms to keep pace.
This creates a dilemma for digital signage integrators. Do they continue investing in proprietary software, absorbing short-term losses in hopes of reaching critical scale? Or do they pivot, relinquishing some control and partnering with established ISVs to stay competitive? Neither path is easy. The former risks financial strain; the latter creates dependencies.
As AI reshapes the digital signage ecosystem, integrators must rethink their software strategies. It’s a tough call, but one that must be made deliberately – because the wrong move could jeopardize not just margins, but the future of the business itself.
