Introducing A Genuine Turnkey

Digital Signage Solution for the SMB Market

Vernon R. SlackOffice: 801 623 8252vernonslack@aopen.com

TODAYS AGENDAWhat is a Genuine Turnkey Digital Signage Solution? A brief Market UpdateHow do we address the Customer’s Pain Points?Current Market ConstraintsThe Optimal Digital Signage Solution for the SMB MarketThe Solution Ecosystem

The ‘Services’ Overview What is our Solution Methodology?What’s our Value Proposition?Who is your Solution Support Team?What does your collateral look like?

Offers the customer strategic consulting services to help plan, select, evaluate and deploy the optimal digital signage solution

Includes all of the required hardware, software and infrastructure to meet the customer’s business and communications requirements over the life of the network

Is easy to use, highly reliable and scalable built around a certified software stack and commercial grade components to meet the special needs of unattended systems

Seamlessly integrates components, software and infrastructure with existing systems to insure minimal disruption to the customer's business continuity

Offers a suite of cost effective ‘Managed Services’ for Help Desk support, remote monitoring & repair, mobile & social engagement services and viewer analytics

Delivers to the audience relevant and timely digital media Provides the customer with a single point of contact during the planning, evaluation

and deployment phases and a single service provider over the life of the network through strategic partnerships

A Genuine Turnkey Digital Signage Solution …

A Brief Digital Signage Market Update

US Digital Signage Market Update

There were 1,250,000 digital display systems installed in the US at the end of 2010; a 25% unit growth over 2009

Over 50% were in the SMB Market The ‘average’ Digital Signage Network is 75 to 100 displays 62% of the 2010 shipments were networked 300,000+ Displays in Retail & 100,000+ Workplace Communications Displays 425,000+ Ad Network Displays with 2010 Ad Revenue of $2.1 Billion on 200 Ad

Networks Still a very fragmented market

Point ofTransit

Three Types of Digital Signage Networks

Point ofWait

Point of Sale

Three Digital Signage Business Models

Merchandising/Ad-Supported Networks

Retailers, restaurants, hotels,

Digital Out of Home (DOOH) Advertising NetworksMalls, airports, train stations, doctor’s waiting rooms, clinics,

Information - Entertainment NetworksSchools, workplaces,

Return on InvestmentIncrease Sales and Lower CostsEnhanced Customer Experience

Return on InvestmentAdvertising Revenue

Return on ObjectivesBetter informed audience, more efficient communications,

The Six Businesses of Digital Signage(US Total Available Market)

$1,4500MTechnology

$150MDeployment

$2,150MOperations

$2,500MDigital Content

Production

$2,100MAd Networks

New Market Measurement

The 2010 Total Available US SMB Market - $3.1 Billion

The Market Constraints

The market is extremely fragmented and the supply chain is overly complex There is little experience among users and vendors on how to plan, select, evaluate,

deploy and operate digital signage networks … for every 12 digital signage projects announced, only 1 is ever fully deployed

There is little capability among users to cost effectively produce timely and relevant digital media

2010 Average CAPEX at $3,720 per system is down 50% from 2005 (hardware, software & installation) … but the ‘Total Cost of Ownership’ is only down 15% from 2005 at $5,900/system ($16.15/day)

The Overly Complex Supply Chain

Digital SignageProject

Mounting Hardware

ContentManagement

Software

DeploymentServices

Aggregators

DisplaysOutdoor

LCD DisplaysLarge

LEDs

TVs

Ultra ThinDisplays

Display Tiles

VideoWalls

SystemIntegrators

ManagedServices

ContentServices

ForAd Networks

PCPlayersCommodity

PCs

CommercialPCs

Work-stations

OutdoorEnclosures

StandardMounts

Custom Enclosures

PlayerImaging

HardwareConfiguration

Servers

Work-stations

IndustryStandardServers

DisplayInstallation

VideoCabling

Fixtures/Enclosures

Kitting/Distribution

SaaS

Premise-based

NetworkedStreaming

Players

Picture Frames

StandaloneMPEG

Players

Non-PCPlayers

Distributors & VARs

NetworkServices

Video/Flash

Templates

DataFeeds

BrandStrategy

Reporting/Analytics

ScheduleMgt.

NetworkMonitoring

ApplicationHosting

OnsiteService/Repair

InternetISP

Satellite

WiMaxCellular

Corp.EnterpriseNetwork

Agencies

AdCreative

Install20.3%

LCD Display 37.5%

PC Player 24.7%

Software17.5% Op

er-ational La-bor 29.5%

Content Production 34.4%SaaS

0.7%

Maintenance 8.1%

Network

6.3%

Capital Cost (3 Years) 21.0%

Services - 80% of the ‘Total Cost Of Ownership’

$1,7403 Year Amortization

$1,240

$2,030

CAPEX 1

$3,720

Total Cost of Ownership = $5,900 per system per annum1 30” display systems to video walls (excludes <30” displays and LED systems)

1. Content Management SaaS Meets the functional requirements of each targeted vertical market Easy to use media management, playlist scheduling and placement Supports digital media from standard graphic packages - Photoshop, Illustrator, Flash,

Adobe After Effects, MS PowerPoint, Quark, Triggers media from inputs such as viewer proximity and Anonymous Viewer Analytics Local input and control of a predefined area to present content relevant to the location Easily integrated with existing systems (PLU pricing, inventory, etc.)

2. Remote Managed Services Help Desk support Hardware, software & network monitoring for remote problem detection Remote hardware and software repair using Intel’s vPro Software upgrades and changes to system’s configuration Optional ad placement and playlist delivery services

3. Digital Content Managed Services Media production automation using our ‘Media Mapping’ methodology Integration with external data sources & feeds On-going creative services, digital media repurposing & Flash Template development Local digital media creation capability with centrally controlled processes to drive re-use

What Services Are Offered?

4. Mobile and Social Engagement Services Near Field Communication (NFC) Mobile e-wallet and QSR Codes for transactional business Facebook connection for mobile latent conversations Coupon downloads for immediate and future discounts

5. Viewer Analytics and Customer Engagement Services Digital content Proof-of-Play data collection and analysis Anonymous Video Analytics (AVA) data synchronized with Proof-of-Play data Interactive usage data analysis for audience engagement measurement (touchscreen,

mobile device, NFC,) Sales by product promotion from the retailers POS and/or Trade Promotion Management

systems

6. Digital Signage Consulting Services Requirements Discovery Module – Identify the client’s optimal usage model, business and

communications goals and digital media requirements Qualification Module – How to cost effectively address the client’s key Business,

Marketing and Communications goals Strategic Media ‘Blueprint’ Module – A roadmap for relevant and cost effective media

production Evaluation & Production Deployment Modules - Program Management support

What Services Are Offered?

Retail Regional Grocery, Convenience, Specialty, Apparel, Home Centers,

Card/Gift/Novelty, Auto Aftermarket, Sporting Goods, General Merchandising, Home Furnishing, Office Products,

Financial Regional Banks, Credit Unions,

Internal Communications Corporate Campuses, Hospitals, Back Office

Restaurants (Menu Boards) QSR & Casual Dining (privately owned or franchises)

Hospitality Hotels (privately owned or franchises), Casino’s

What Vertical Markets will be Served?

SMB Bundled Solutions

Vukunet PC Media Player No Cost Content

Manager Very basic

functionality

SuperSign Basic Content

Management functionality plus newsfeeds from CNN

3 year agreement with PC Player + 47” Display + SaaS: $149/mo

iCompel Player appliance with

software included Controlled with a

server Advanced Player

(Core2): $2,995

ScalaQuickStart HP PC Media

Player: $1,120 47” LCD Monitor SaaS: $45/mo

Our Genuine Turnkey Solution’s ‘Total Cost of Ownership’ is a third lower than the leading Digital Signage Bundled Solutions

NEC Vukunet

LG SuperSign

Black Box iCompel

Scala QucikStart

PC Player (Core II Duo or i5) $1,000 $2,995 $1,12046"/47" Commercial Grade LCD Monitor $1,300 $1,300Installation $750 $750 $750 $750Mounts, cable, etc $250 $250 $250 $250

Total CAPEX $3,300 $1,000 $3,995 $3,420Annual Ammortization/3 year lease $1,100 $1,788 $1,332 $1,140SaaS $0 $0 $0 $540Hardware Maintenance $65 $0 $0 $0Operational Labor Costs/Managed Service $1,740 $1,740 $1,740 $1,740Content Production/Automated Content Production $2,030 $2,030 $2,030 $2,030

Total Cost of Ownership $4,935 $5,558 $5,102 $5,450

Open Services

$1,000$1,300

$750$250

$3,300$1,100

$600$0

$600$1,200$3,500

AOpen America – The largest supplier of commercial PC media players in North America

AOpen’s ‘Open Services’ – Contracts with the customer for the required ‘Managed Services’ – Offers Content Management SaaS, Remote Monitoring & Repair, Automated Media Production, Mobile/Social Engagement, Audience Analytics and Strategic Consulting Services

Content Management ISV’s – ‘Best of Breed’ Content Management software for each of the 5 vertical markets

Certified System Builders – Build AOpen PC media players configured to meet customer’s specific hardware requirements and imaged with the software stack needed to insure seamless integration

Partners – ‘The single point of contact for the prospect’ for coordinating the planning, evaluation and deployment a Turnkey Digital Signage Network … Open Services does all the rest over the life of the network

Our Solution Ecosystem

ClientDigital Displays

&Other Hardware

Turnkey Solution Deployment Model

Partners

HardwareDistributorsIngram Micro, Avnet, Arrow, Bluestar, …

AOpen America

AOpen Imaged

PC Players

Certified Reseller’s

System Builders

Seneca, Micro Industries, M&A

Technology, …

Site Surveys & Hardware Installation

AOpenPC Media PlayerCommissioningSprint

Intel

What’s the Value Proposition?

Using our ‘Remote Managed Services’ reduces operational labor costs at least 60% and maintenance costs by 75%

Customers are able to display relevant and timely high-impact digital media using our automated ‘Media Production Services’ at 40% to 70% lower than the industry average

Our ‘Consulting Services’ will reduce the time required to plan, evaluate and deploy a digital signage solution by up to 50%

Our Turnkey Solution with ‘Managed Services’ significantly improves overall ROI by reducing the ‘Total Cost of Ownership’ at least 33% saving $2,000 per system per annum

These savings recover all the CAPEX in 22 months

The Customer Value Proposition

CLOSE DEALS FASTER - Accelerates the decision process by simplifying the planning, selection, evaluate and deployment

WIN MORE DEALS – The only Genuine ‘Turnkey Digital Signage Solution’ available for the SMB market with a simplified ‘Sales Engagement Model’

MAKE HIGHER GROSS MARGINS – Focuses on the Total Cost of Ownership which shifts the customer away from obsessing over finding the ‘lowest cost’ hardware/software solution

CREATE A HIGH MARGIN RECURRING REVENUE STREAM – Creates recurring commissions for YOU from all contracted consulting and ‘Managed Services’ over the life of each digital signage network

What’s In It for YOU?

QUESTIONS?

Call Vernon Slack801 623 8252