What to say to your boss as unit sales drop: If it ain’t broke, it will be eventually.

Currently, much of the market growth  in the U.S. is propelled by new unit sales in smaller sized facilities, but this won’t last. By 2016, growth is expected to slow down as PACS penetration rates reach high percentages across all market segments, effectively becoming a replacement market.

As this occurs, PACS vendors will engage in fiercer price competition while new unit sales drop and revenues will be mostly generated from system upgrades and service & maintenance.

What are purchasers thinking when buying a PACs system? Two words: upgrade costs.

To succeed in the PACS service & maintenance market, companies will need be aware of their customers’ considerations below:

  • Future software upgrades (this may be included in the service contract)
  • Storage capacity of the active archive may need to be increased due to increased imaging entries
  • A larger server may be needed to act as a backup for less frequently used archives
  • New workstations and/or digital display solutions may be required
  • Networking system upgrades and bandwidth increases may be necessary
  • Migration costs, if legacy PACS is to be replaced
  • Costs to train personnel to use the system
  • Offsite storage of PACS to ensure protection against flood and/or fire

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