Business Security Today, Tomorrow and Beyond

Transcription

1 Business Security Today, Tomorrow and Beyond Luis Orbegoso, President ADT Business October 29, 2014

2 Business Security Today, Tomorrow and Beyond: The ADT Perspective Luis Orbegoso ADT #SNG2014 securingnewground.com

3 The Commercial Mid Market is Sweet $12.9 B US Commercial $26 B Market 14E-17E CAGR Enterprise Sec 5.8% Enterprise Fire 4.8% Mid-Market Fire 4.8% Enterprise: High Risk/Low RMR Profits made on project management, install, and product sales Low RMR, thinner margins Mid-Market Security Light Commercial SMB >7,500 SMB <7, % 5.0% 2.5% 2.5% Mid Market: Sweet Spot Profit or break even at install Opportunity for value added services that drive RMR Customers becoming savvier around large company technologies/services to reduce operating costs. SMB/Light Commercial: Consumer Oriented Investment required at install breakeven comes later in customer lifecycle RMR driven Consumer oriented product with some commercial features 3

4 Technology Acceleration Home Convenience Common starting point: Physical Security Added value/services have evolved in different trajectories Business Efficiencies Retail Restaurants Clinics Office Mechanical

5 US Commercial Mid Market It is all about Services Today s Commercial Integrators depend on project margin $$ Alarm companies have begun supplementing their BA / FA services Customers are more willing to accept fixed cost service agreements Customers are looking for ways to reduce their TCO Hosted & Managed Services are still in their infancy Monitoring Added Services Hosted 5

6 US Commercial Mid Market Services will be even more important in the future Technology has advanced; customers can avoid capital costs of servers & software Customers don t want to employ a large population of infrastructure technicians Service providers want to be an extension of the customer s operation Customer s user experience expectations are evolving rapidly Customers benefit as service providers use Cloud solutions to deliver faster innovative features Service Type CAGR Alarm Monitoring $1.1B 1.2B 2% Fire Monitoring $33M 40.1M 5% Video Verification $140M $244M 15% Video & Access Control HMS $120M $342M +30% Maintenance $6.1B $8M 7% 6

7 Tomorrow s Mid Market Commercial Success 6% Struggles in 2018 Company A Winning Ingredients: Highly vertical solutions Combination of Cloud and 15% 14% embedded user experience Minimum customization Low Complexity High 61% 29% Wins in 2018 Company B 37% 14% 9% 11% requirements by site Self configuring hardware Remote serviceability Down line upgradeability Monitoring (BA & FA) Hosted & Managed Services Alarm Installation Project Execution Service (Break / Fix & Contract) Low Verticality High 7

8 ADT Expansion: Increased Small and Mid Size Business Market Increased SMB Addressable Market New Market Light Commercial Hosted & Managed Services $7.1B Fire Monitoring Capabilities Dedicated Commercial Sales Organization Fire Monitoring Light Commercial SMB >7,500 Oct 1, 2014 Expansion SMB <7,500 SMB Enhanced Intrusion, Access, Video Portfolio 8

9 Q&A Special Thanks: SIA Paul Everette, IHS Inc. Jeff Kessler, Imperial Capital Mark McCourt, BNP Media 9

10 Commercial Market Track Hudson Theater (remain here) Residential/Consumer Track Room 3.11 #SNG2014 securingnewground.com