10.20.2008 — Lifeware is giving distribution another go, selling its automation software and Media Center servers through AVAD.

"We've appointed AVAD as the exclusive distributor," says Lifeware chief strategy officer Steve Cashman. "It will be the sole source of where dealers can buy our product."

It isn't the first time Lifeware has tried distribution. Previously, it was offered through the Digital Delivery Group, a consortium of 17 independent reps and distributors across the nation. That plan fizzled after about a year, though.

Now Lifeware is going all in with AVAD. Lifeware products will no longer be sold direct through Lifeware itself.

Cashman promises, however, that service through AVAD will be even better than Lifeware could provide on its own, thanks to the distributor's 37 branches, soon-to-be trained personnel, and demos in every location.

"It'll be just like doing business with us, only there will be 37 branches," says Cashman. "We're growing our sales team to work with AVAD."

Lifeware is adding four regional sales managers to bring the total to 10. Each rep will cover four AVAD branches.

"They'll spend one week per month at each branch," Cashman says of the AVAD rollout.

Citing the AVAD mantra that the distributor is "better than direct," Cashman explains dealers will enjoy the same pricing as previously, and have better opportunities for training.

"Today, the only venue they [dealers] can go is a trade show or our headquarters [in Columbus, Ohio] to get trained or see products," Cashman says.

He adds that, while other manufacturers may boast of having several training locations and a few "experience centers" nationwide, through AVAD Lifeware will offer "37 training locations, 37 experience centers, and 37 customer service counters."

Another AVAD Integration Partner

Lifeware is yet another "complete solution" that AVAD will offer its dealers, along with NetStreams, Elan and Remote Technologies Inc. (RTI).

Lately, the group has put heavy emphasis on its "Integration Partners" program, showcasing completely integrated demos at its branches as well as trade shows – most recently the CEDIA Expo in September.

"We're missing a piece of that [integration program] when it comes to the ability to deliver a solution at the highest level," says Wally Whinna, EVP of marketing for AVAD. "Also, we don't have a complete Media Center solution and it appears to us that that is becoming more popular."

As part of AVAD's integration program, the distributor and Lifeware will work closely to ensure that Lifeware automation software plays well with products from other AVAD vendors.

"To see devices work better together – that's the leverage that Wally has," Cashman says. "We can accelerate our technology as a group."

For its part, AVAD can "work with all of these vendors to get the integration to the highest level possible, where our customer has to do the least amount of work," Whinna says. "We can present a more reliable, repeatable, profitable service to our clients."

Has Media Center Arrived?

This isn't AVAD's first foray into the Media Center realm.

For some time in 2007, the distributor offered high-performance Media Center machines from Niveus, but few of the boxes were sold and the two companies parted ways.

Whinna says the unsuccessful experience was less a reflection of the viability of Media Center, and more the result of too few resources on the vendor's part.

"Lifeware has much more in the way of resources than Niveus had," Whinna says. "AVAD tries to create a lot of places where integrators can go and see products. Niveus really didn't have the resources to do that."

The Media Center rollout with Lifeware will occur "on a much bigger scale," Whinna says.

Only a few months ago, AVAD co-founder and former CEO Bob Gartland expressed little faith in Media Center's near-term prospects.

He said then, "If you can tell me someone that is successful with Media Center, I'll carry it."

Whinna says that Gartland was not necessarily mistaken, but that nowadays, "The timing seems to be right."

He explains that some AVAD customers have been asking for Media Centers and he believes "it's a growing product category."

How about that Lifeware Pricing Scheme?

Since it launched a few years ago, Lifeware has followed an unusual pricing scheme – one that has come under fire from many integrators.

Unlike most automation vendors who charge a single price for operating software, Lifeware has been charging dealers per subsystem and/or per device that is connected to the system.

Integrators have complained that the formula is unwieldy to implement, and particularly onerous for system add-ons.

At the recent CEDIA Expo, Cashman says, Lifeware introduced a different formula for pricing its software.

The company still charges for each client that is running Lifeware (Media Center, Ultra Mobile PC, iPhone, etc.). For products connected to the system – security sensors, audio zones, dimmers, etc. -- dealers now pay for "device bundles," Cashman says.

"Devices are now just bundled in fairly large increments. They [dealers] used to have to say six audio zones or eight lighting zones. Now they can just say 50 [or so] devices."

Dealers will begin to see Lifeware demo's in AVAD branches on Oct. 27. Two-day training takes place Nov. 10 – Dec. 9.