The cloud has significantly disrupted the security video market, creating more opportunity for dealers to expand their recurring monthly revenue (RMR) streams than ever before.
But it requires dealers to be adaptable, creative, and willing to step away from traditional business models.
Video Surveillance as a Service (VSaaS), or hosted video security, is one way to leverage the cloud to boost RMR, as end-users increasingly value visuals for monitoring and verification.
Today’s clean interfaces and wireless on-the-go capabilities make VSaaS platforms a clear winner for end-users.
Here’s how hosted video can also be a champion for dealers:
- New pricing models: For some dealers, the dawn of wireless technology and DIY trends has reduced the demand for installations and equipment, diminishing upfront cash flow. However, there are ways of benefiting from this shift long-term with hosted video solutions; a dealer might consider offering a lower installation price at the onset, and spreading revenue over the length of a contract.
For example, providing a VSaaS solution from a trusted manufacturer and building cloud storage fees into end-user contracts is one easy, guaranteed path to increased RMR. Most customers value the convenience of being able to remotely view their homes and businesses, and have no issue paying small monthly fees for the services that enable it.
- Saved time and operational costs: Hosted solutions are designed to integrate well with other aspects of a security system, adding tremendous value. For example, many VSaaS platforms integrate wirelessly with access control to lock and unlock doors upon verifying an event with video footage. While this helps end-users manage various security pieces and facilities on one intuitive dashboard, this also helps dealers alleviate operational burdens related to set-up and maintenance.
With the plug-and-play software of hosted solutions, dealers can install and support a system in a fraction of the time it used to take – no drilling and wiring required. A hosted system also means the dealer doesn’t have to spend unnecessary time upgrading PCs and solving compatibility issues, since that’s the manufacturer’s responsibility. This allows dealers to help more end-users in a day, and focus efforts on other strategic business initiatives.
- IoT industry advancement: At a higher level, cloud technologies break down proprietary barriers, driving improved industry standards. As a result, dealers and manufacturers can work across lines to establish recurring services rather than be limited by product competition.
For example, many hosted platforms at Honeywell are designed to work seamlessly with cameras, locks, and other devices from third-party manufacturers. This opens the door, not only for customers to integrate systems without having to replace their equipment, but also for dealers to find new ways to connect larger systems—for example video, access, and fire—for increasingly centralized, efficient building security.
Overall, cloud-hosted video solutions can benefit dealers with a monthly service model, ease-of-installation, and the same IoT integration opportunities it promises customers. It’s no wonder VSaaS is projected to grow at a compound annual rate of more than 18 percent until 2020.
John Smith is the senior marketing manager for Honeywell’s services business. His responsibilities include identifying and deploying a global market strategy, developing comprehensive business cases utilizing market research and customer needs, product portfolio management, business growth projections and strategic positioning. He brings more than 15 years of experience to Honeywell from the security industry including positions as inside sales manager, regional inside sales manager, product manager and senior product manager. John’s education consists of a Bachelor of Science in business administration from Cardinal Stritch University in Milwaukee, WI.