A Pivotal Year For Security Dealers: More Changes In Store For 2015

Reinvention of go-to-market models proves integration business is place to be

Suffice it to say 2014 was a pivotal year for the majority of alarm dealers and installers. Many have had to change their way of thinking and their method of doing business, while adapting to ever-changing technology.

But those who continue to reinvent their go-to-market model prove that the integration business is the place to be – and there’s money to be made, albeit it not in simply installing boxes and hardware. In fact, that mindset changed several years ago, and the participating companies have not looked back since.

Competition is always at the doorstep and comes from every angle in the industry - from Google’s Nest energy management to recent announcements that U.S. Cellular (OnLook home automation platform) has joined the ranks of offering security and interactive services, to the likes of Comcast Xfinity, AT&T Digital Life and Time-Warner Cable.

And while U.S. Cellular and AT&T Digital Life duke it out, saying they both will excel at the customer “experience,” it’s something that has already fundamentally changed the face of the traditional security industry. Maybe it began after the first break-up of the “Bells” in the mid-80s or later, but most dealers and integrators understand that they are the local, national and traditional firms that can provide the much-needed service every customer craves. Customers will pay more for service, for that personal touch, for being able to reach a live person and perhaps even the owner of the company. And that mindset has also moved the industry more fully into the role of trusted service provider.

The Year of Managed Services

Across the country, managed services now takes a starring role. Guidant Partners of Nashville changed completely from a break-fix model to a fully-managed IT services role. The changeover required many technology adaptations and capital investments in-house so they could go about providing predictive analysis of networking equipment. The rewards have brought new business to the company and allowed technicians to work smarter, not harder, in many cases avoiding a costly ($250 on average) truck roll.

Securadyne Systems, Dallas, also takes the managed services approach, betting on cloud-based services to help its vertical market customers reduce the total cost of ownership and budget more efficiently for regular operating expenses, versus large capital outlays.

Advance Technology, Scarborough, Maine, also moved fully into managed services several years ago and calls its proactive plan White Glove Service. President Rob Simopoulos says it’s the only way for systems integration companies to thrive and prosper today.

Competition is always at the doorstep and comes from every angle in the industry

Technology also assisted the security community in 2014. Remote monitoringand maintenance devices have helped companies deal remotely with their customer’s networks and network-connected devices, and these predictive hardware devices will continue to mature and provide new areas of service. Video surveillance has moved squarely into the realm of business intelligence and data gathering, providing much more than security and adding further value to the arsenal of services, making dealers stickier to their customers.

Other 2015 Predictions:

• Cloud-based services will continue to gain strength, but integrators need to be assured customer data is safe and secure.
• Video surveillance will be more reliable and couple with intrusion detection and access control for additional layers of security.
• That sleeping giant, access control, will take center stage, and move from not only providing perimeter and interior security, but data, identity and credential management.
• Recurring monthly revenue remains critical, but how companies attain it is still in question. Many will see the proverbial “lightbulb” that they should work on their existing customers to garner more RMR and stop chasing too much from new customers.

The security industry is a great place to be and will continue to grow. However, only those companies who take it on full force will realize the potential. There are many family-owned businesses who will try to make the transition to the brave new world of services; some will make it and some won’t. Those who do will find their stature in the industry elevated like never before.