SS03: Cloud RMR Opportunities for Integrators
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1 SS03: Cloud RMR Opportunities for Integrators Ray Coulombe SecuritySpecifiers.com April 11, 2013 The Opportunity Worldwide video surveillance market will reach $37.7 billion in 2015 Major video hardware component sales expected to grow 21% from Video delivers results arrests and more 1
2 Panel Brian Carle, Director of Product Strategy Salient Systems, Inc. Steve Pineau, CEO Viscount Systems, Inc. Scott Haugland, COO SureView Systems Chris Brown, Executive VP CheckVideo Rob Hile, CEO Integrated Fire & Security Solutions, Inc. VSaaS & Hosted Video Brian Carle, Salient Systems April 11,
3 Leased equipment is managed remotely Proven model Business opportunity -generate recurring revenue Low upfront investment as compared to traditional deployment model 3
4 Small business office (medical, dental) Small stores and chains Gas / Convenience / Quick Lube Watch the watchers Small camera count (4-8) / available bandwidth Would benefit from remotely located recording equipment VSaaS Market & Growth 1200 Market Size (M) Market Size (M) Source: IMS Research, Video Surveillance as a Service (VsaaS) Market Set to Double over Next Three Years 4
5 Market Demand Visual alarm verification Open & close monitoring Safe openings Video escort service Investigations Operations quality report Business analytics POS People counting 5
6 Cloud RMR Opportunities for Integrators Stephen Pineau Viscount Systems April 11, 2013 Cloud Access Control Capex vs Opex RMR for Cloud GUI vs. an alarm based model (0$ down + $/month per door) Cloud device triggering for small sites vs. onsite backup for large Cloud based alarm management/mobile 6
7 Cloud Visitor Management/ID VM as pure SaaS PhotoID as a service eliminate printers Incident reporting Cloud Mobile Tracking New technologies MS tag, QR Code, NFC Mobile Mustering Mobile Contractor Tracking Mobile Guard tour Mobile Time/attendance 7
8 Cloud Business Continuity Cloud based file storage for: As Built and riser drawings Building schematics/first responder Business continuity plans Cloud RMR Opportunities for Integrators Scott Haugland SureView Systems April 11,
9 Video Monitoring in the Cloud The Customer Challenge Disparate Systems Complex System Deployments Limited Capital for New Systems Limited IT Skills Technology Transition Single Platform Requirement Remote Access Video Monitoring in the Cloud The Customer Solution Blended Solution Simple Web Based Deployment No Upfront Investment No IT Skills Required Analog to IP Transition Single Interface for All Systems Mobile Apps Supported 9
10 Integrator Benefits Solution Sale Ease of Deployment Instant On Customer Stickiness Software Drives Hardware Sales Opening Accounts for Future Growth PERMANENT RMR! Integrator Evolution Margin Erosion Product Commoditization Multiple Systems to Integrate Unknown Technology-Cloud & SaaS Customer Requirements on Limited Capital Budgets Exit Strategy 10
11 Integrator Opportunity Cameras per Customer: 80 Customers per Year: 6 RMR per Year: $16,128 RMR 5 Years: $80,640 Considerations Business Valuation-Multiples Add Access Control RMR Add Video Storage RMR Cloud RMR Opportunities for Integrators Chris Brown CheckVideo April 11,
12 Managed Video Services Millions of cameras are already deployed with no associated managed video services Existing customers are primed for additional video-based services Turn $30 per month customers into $300 per month customers! Challenges Businesses need solutions to key problems Cameras and DVRs are commodities Key features are often not used due to lack of training When an incident occurs, often the equipment is found to be non-operational Security has been seen as a necessary evil or an insurance policy 12
13 For your business: The Value Proposition Grow Differentiate Retain Increase by offering valuable video-based services your business from the competition customer loyalty and reduce attrition the value of your business The Value Proposition For your client: Receive superior security protection with little time invested Deliver real-time, relevant information to authorities Gain valuable operational information Prevent crime and send a message with higher arrest rates Obtain insurance discounts 13
14 The True Power of Video Send video of real events to anyone who needs to know: Owner, Manager, Command Centers, Police, Loss Prevention The True Power of Audio Become interactive: Direct, motivate, deliver announcements, give and receive critical information 14
15 Pick Your Market: The 80% Opportunity Market Break Down 10% Video verification Limited RMR services 10% Custom solutions Pay big but are expensive to maintain Require constant touches Don t scale easily 80% The true pot of gold Easy to understand Easy to deploy Scale quickly Leads to other opportunities 7 Steps to Building a Sustainable Video-Based Business 15
16 Step 1: Build Your Core Offering Define a menu of services Create packages that are simple to sell and understand Price each service and make them profitable Define monitored and non-monitored services Define which require a VMC and which can be direct to the client Make it all scalable Step 2: Choose the Right Tools System platform Storage Audio Detection Transmission path Cameras Point of sale interface 16
17 Step 3: Select a Monitoring Center What to look for: Services currently offered Video experience Audio capability Pricing model Control software platform Reporting system Scripting tool End user support Step 4: Develop a Marketing Plan Mine your existing customer base Develop collateral material that s easy to understand Create a scripted visual based sales tool to lead you through the sale and close Build campaign around a select market you know Pilot a friend of the family 17
18 Step 5: Arm &Train Your Sales Team Educate your team on video RMR services, markets and applications Move them from equipment selling to solution selling Define questions and make them ask the questions Put the proper incentives in place for your sales team to successfully sell Communicate defined pricing and packages Make them look for the add-ons Step 6: Deliver to Your Client Ensure the installation is simple and clean Set clear expectations with the client Ensure the SOP is understood by the VMC Measure the results daily, weekly, monthly Follow up, follow up, follow up! 18
19 Step 7: Be a Partner Not a Vendor Market through associations in select vertical markets Ask for referrals Stay in the game with your client Grow your solutions menu Always ask questions Listen to the details Follow up, follow up, follow up! Net RMR Potential: Single Installation Burglar Alarm System Video Verification Basic Video Services Extended Video Services 19
20 Net Revenue Potential Assumptions 5 Services Sales per month (2 Small, 2 Medium, 1 Large) Sales ramp up in first three months Does not include any additional revenue from installation services $122,000 Net Revenue in Year 1 $235,000 Net Revenue in Year 2 How RMR Builds 20
21 The Value of Video RMR Year Systems Sold Yearly Total Systems Sold Year End RMR Estimated RMR Value Factor Total Estimated Value of RMR $23,760 18x $427, $50,184 18x $903, $74,099 18x $1,333, $96,818 18x $1,742, $118,401 18x $2,131, $138,905 18x $2,500, $158,384 18x $2,850, $176,888 18x $3,183, $194,468 18x $3,500, $211,169 18x $3,801,036 Assumes 5% attrition $5.2 MILLION With 25x Factor Key Takeaways Keep it simple The 80% rule Become a partner not just a vendor Move to the cloud Video can be a complete system Millions of cameras already deployed Add-on services are limitless Scalability is the secret 21
22 Cloud RMR Opportunities for Integrators Robert Hile Integrated Fire and Security Solutions, Inc April 11, 2013 Integrator Question: What s in it for my company? True Differentiator Bigger, More Sustainable Service Base Traditionally Higher Margins More Stable Business Create Growth Opportunities 22
23 OK, you have my attention, now what? Assess Your Current Customers: - Look For The Low Hanging Fruit. Hosted Video? Assess Your Own Business Model - Sales, Service, Operations, Accounting Build A Short Term Strategy - Set Reasonable Goals - Short Term Wins! Wow, this stuff is pretty cool. what s next? Hosted / Managed Access, PSIM? - Traditionally not in your current customer base Who Do I Target and How? - New customers and new technology partners - What s the value proposition and ROI Build A Long Term Strategy - Set reasonable goals - Invest in your future! 23
24 Challenge the Panel Contact Info Ray Coulombe Brian Carle Steve Pineau Scott Haugland Chris Brown Rob Hile 24
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