Security Providers’ Changing Role
Security Providers’ Changing Role
A Closer Look at 2018 Security Trends: How are the Roles of Security Providers Changing?
One of the biggest trends in 2018 security is change. Nowhere is this more evident than in the market itself, where companies ranging from industries that wouldn’t ordinarily handle security, like Comcast and Amazon, to start-ups eager to cash in on a hot market, increasingly enter the residential security scene. They are shaking up the landscape and changing the services being offered as well as the revenue models that drive them.
We reviewed how mobile device security and the use of the cloud are both augmenting overall security in our last post. As we move forward into 2018, the changing role of security providers is a trend that will also strengthen the residential security industry.
Trend 7: Security Providers Are Changing
There’s no typical security provider these days. Both IT-focused companies like Best Buy and start-ups like August Home (recently acquired by ASSA ABLOY) are jumping into the traditional residential security monitoring services business. Harnessing the cloud and the IoT, many of these companies are offering everything-as-a-service with convenient tie-ins to smart devices.
Traditional security providers have picked up the trend as well, changing the subscription model to a month-to-month payment plan. With this freedom comes the death of the typical security services contract.
Security Industry Best Practices: How Can Providers Adapt to the Players?
Providers must stay on their toes to move with this market. With so many new and powerful players in the game, security providers need to add value wherever possible to enhance the consumer experience while providing the convenience and smart features they’ve come to expect. Differentiation is everything. If a security provider can offer superior services, they will stay ahead. Service is prized over price; consumers will not be as price sensitive moving forward for this reason.
Within the services themselves, we’re moving from a heavy emphasis on product sales to cloud-based services. Therefore, the shift is towards security services, not installation of monitoring or deterrent devices. Flexible providers that harness these trends will move ahead.
In fact, IST is right on top of this trend. In addition to our 20+ years of security expertise protecting people, property and data in the enterprise market, we’ve embraced the move towards cloud-based services and are up-to-the-minute on leveraging the cloud for your utmost security using your existing systems or deploying new solutions. We also stay competitive by offering affordable month-to-month subscription style plans for our customers’ convenience.
Trend 8: Entrepreneurs Enter the Security Scene
Entrepreneurs want a piece of the security action too.
Their relentless focus on data analytics, convergence and IoT are pushing the residential security industry forward faster. It’s a win-win for both providers and consumers, although the market is tightening with these new entrants. Multi-system operators (MSOs) like AT&T, Comcast and Cox Communications upended the U.S. intrusion market from 2013 – 2015. Likewise, start-ups made their mark. In fact, IHS Markit noted that companies that were two years old or younger claimed over nine percent of global consumer video-camera market revenues in 2016, up from just six percent one year before.
Security Industry Best Practices: How Can Providers Adapt to the Game?
The players have changed and so has the game. In addition to dealing with the challenges of shifting from hardware and project focused work to a service, maintenance and remote monitoring model, subscriber acquisition costs (SAC) are up and recurring monthly revenue (RMR) margins are down. Technology obsolescence has increased, so manufacturer and service providers are also grappling with shorter product development cycles. Companies that can keep up with these changes will come out on top in the residential security market.
Additionally, consumers are demanding interoperability among their devices and services for streamlined experiences. Companies need to work together to create interoperable standards so consumers can integrate their current security devices.
Again, IST is following this trend closely on the enterprise side. We monitor all new security products and remain manufacturer agnostic so that you get the solution that works best for your needs. We also help you integrate these updated security solutions to keep them interoperable with yours.
Our last entry in this series will explore how cyber-breaches are becoming more common for physical security, and we’ll look at how everyone in an organization needs to play an important role in mitigating these risks. IST has solutions for these and your other most pressing security concerns. To learn more, contact us here.