Your Decision: Why Buying a VCMS Helps Boost Your Return On Investment in Video

As video use skyrockets across every part of modern businesses, from marketing and training to sales, support, communications, and more, a video content management system (VCMS, or “business YouTube”) is essential for managing and enabling this newfound means of communication.

By Microsoft’s own calculations, its investment in its own video content management system, called the Microsoft Academy portal, has yielded a 569% ROI, driven largely by calculated cost avoidance of $13.9 million annually in saved training and travel fees.

The value is impressive. Yet that fact remains—when you look at the numbers, Microsoft spent far more in IT costs alone in building the portal than they needed to.

For most businesses, sourcing an established VCMS makes more sense. A sourced VCMS costs less, both up front and over time – improving ROI by delivering all the benefits with dramatically reduced requirements for development, operations, and support.

So, why is there such a difference in the ROI of building your own VCMS like Microsoft did and sourcing from a vendor like Panopto? Well, here are a few reasons:

Reduced initial build costs

Developing a video content management system requires a deep understanding of video technology and massive-scale digital libraries. Microsoft is in the great minority of enterprises with expertise in both, and even with this expertise, the company was still building the portal three years after the project began.

It’s hard to overstate the amount of effort required to build a video content management system. Organizations considering this option will have to code, test, and scale technology that enables transcoding of different and evolving video formats, storage and management of multi-gigabyte files and multi-terabyte libraries, big data analytics, access control, integration with existing systems, metadata management, video streaming, and unstructured data search, and more.

Reduced maintenance costs

Sourcing your VCMS helps reduce the burden of product maintenance. Working with a vendor reduces the amount of internal resources required to support the system, and most VCMS vendors make their support teams available 24×7 to respond to any issue and ensure it’s resolved quickly.

Along with support, you can rely on your vendor’s team to ensure that your product is always up-to-date. Video content management systems that are hosted in the cloud receive automatic upgrades to the latest release, and for on-premises deployments like Microsoft’s, VCMS vendors typically provide upgrade assistance.

Cost savings through cloud hosting at scale

Working with a VCMS provider allows you to take advantage of the reduced costs these organizations can offer through their own scale.

It’s no secret that cloud storage has seen costs plummet as providers wage a long-term price war—major VCMS providers are reaping those savings by using storage at vast scale, and then passing the savings on to their clients.

Sourcing is fast

In-house IT projects can take months to identify product requirements. Add to that the design, development, and testing time required to build and deploy a video library and it’s easy to understand why Microsoft’s project was still in development 3 years after launch. Sourcing eliminates virtually all those cycles, often even when custom additions or features are required.

A sourced VCMS can bring all the value as Microsoft experienced when it built its Academy portal. And they can do so dramatically faster, and at dramatically lower cost.

Find out more! Download our latest white paper, “Your Corporate YouTube: Build or Buy?” today

Published: March 07, 2014