COVID-19 and the resultant lockdown saw an unprecedented demand for cloud-enabled technologies across Europe. Such services enabled people to stay connected and allowed some businesses to relocate personnel and continue to operate successfully. With enterprise-focused video conferencing mobile app downloads showing a weekly 90% increase in comparison to pre-COVID-19 figures, it’s clear that cloud services have proven invaluable in these challenging times.

Now, as the benefits to business of cloud technology become apparent, and the grip of COVID-19 begins to loosen, senior decision makers must consider the learnings from the past few months and look to apply them to boost productivity, streamline costs or become more agile in the long term. Digital transformation presents some enticing advantages for those companies that have been slow to adapt. The physical security industry, traditionally video surveillance cameras (CCTV) and access control, will have witnessed how cloud infrastructure is not only cost effective and safe, but is a force multiplier for connecting platforms, services and people with potent business benefits.

The future is VSaaS and ACaaS

In today’s modern, connected world, dated technologies are giving way to their cloud-enabled successors, video surveillance as-a-service (VSaaS) and access control as-a-service (ACaaS). In this context, cameras and readers are added to a network as IoT devices that bring security systems up to date and represent a vital component in any modern, cyber-secure digital strategy.

Frictionless access control has meant touch free access to buildings

But better security is just one benefit of a much greater system that can bring real value. Built in analytics, for example, that utilize the data from network video cameras and smart access control devices, produce valuable business insights that help to inform and automate decision making. In the recent pandemic, frictionless access control has meant touch free access to buildings; while occupancy tools have helped retailers adhere to strict government guidelines on social distancing.

And as more security equipment becomes connected to the wider IT network, the advantages have not been lost on the IT industry that is expressing more than a passing interest in the adoption and management of such systems. Morphean recently conducted a survey of 1000 IT decision makers across the UK and Europe, with the purpose of providing clarity around their security purchasing intent in the 2020s. Findings revealed that as many as 84% of IT managers are currently using or considering VSaaS or ACaaS systems, pointing to an appreciation of the convergence of physical security and IT security, and a willingness to embrace systems when integrated with IT in the cloud.

An adaptable business model with recurring revenues

Of course, it is not just the IT industry that is changing mindsets towards hosted physical security. As a result of COVID-19, end customers are demanding it too and found it easier to scale at speed when business circumstances changed. Rather than being tied to fixed IT infrastructure on premises, a hosted solution offered greater dexterity as operational challenges around the pandemic arose. Businesses were able to customize and scale quickly to meet ongoing need without the need for large upfront capital investment, instead, paying for the convenience as-a-service out of operational expenditure as a monthly cost.

This is the proven business model of cloud, yet the security industry has been slow to adopt it. One key challenge is the way in which the prevalent business models in the sector operate. VSaaS is still alien to installers and integrators used to selling hardware on narrow margins, reliant on existing financial arrangements with distributors to fund new equipment. Transitioning to sales cycles based on monthly licences rather than up-front purchases won’t be easy, but the security channel must learn how if it is to remain competitive and drive new business opportunities.

This recurring revenue model will be interesting for the physical security industry who will have witnessed uncertainty and, in some cases, a downturn in revenues as decisions around capital expenditure were put on hold during the crisis. Instead, convenient and recurring monthly payments will have put the installer on a firmer footing and guaranteed ongoing vendor support backed by the latest software updates and firmware upgrades to ensure delivery of a high quality service that’s always up to date and online.

What is driving your digital strategy?

VSaaS and ACaaS provide a flexible and fluid security and business solution

Cloud is here to stay. Its resilience and ability to connect the world during the COVID-19 pandemic has proved its worth, even to the uninitiated who have now witnessed first-hand the value of connected systems. VSaaS and ACaaS provide a flexible and fluid security and business solution to meet the demands of a rapidly evolving industry, where the changing threat landscape means investing in the cloud is an investment towards success.

CEOs and CIOs within the physical security reseller industry must learn the lessons and apply the learnings to drive their businesses forward in the ‘new normal’ where hosted security solutions must surely play a major part to expand their offering to a wiser customer base. Cloud-enabled physical security solutions represent an investment into improving security and operations, and a chance to forge new business relationships to face the challenges of an ever changing world.

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