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security-as-a-service
which in turn leads to less costs.
Also, the user doesn“t have to
update, install or backup data. All
this is taken care of by the supplier
of the cloud service.
Digital technology functions
also have profitable properties.
Remote camera monitoring
contributes to less false alarms and
less call-outs, which means saved
money on personnel costs and en-
vironmental advantages. In other
words, Security-as-a-Service has
several upsides, both for the cus-
tomer and for society in general.
Supplier advantages
It has taken a long time, but today
the technology exists and is ready
to be used for SaaS purposes. But
the security industry as a whole
has not yet clearly seen the need
for services in this way. Some
companies have started to review
their packaging and business
models, but it is a slow process.
There is also a risk for a slow
down due to the global economic
situation, which is very unfortu-
nate. With SaaS the industry can
cope much better with times like
alarm communication we will see
a corresponding transition. The
upsides of digitalisation have also
become evident in these segments
and have opened up a security
market where there is an emphasis
on customer needs and where ser-
vice usage controls customer costs.
Function and customer value
in the form of services is what
the security industry will charge
customers for. How to package
these services within the different
sectors is something Detektor will
highlight in coming articles about
Security-as-a-Service during 2013.
Profitable for the customer
For the end-user, SaaS brings
several advantages, especially when
it comes to costs. With an infra-
structure provided by the supplier
the customer can avoid expensive
overhead costs for the services, for
example local purchases of hard-
ware and software as well as costs
for personnel administration and
servicing of the security system.
With scalable technology and the
use of cloud services, resources
can be shared between customers
could gain speed and momentum
especially with a plummeting
world economy. Migrating to SaaS
and reviewing the business model
is a good way to be prepared for
market fluctuations. And with to-
day's very scalable technology the
opportunities are several when it
comes to packaging service offers
based on customer security needs.
The supplier also needs, apart
from an infrastructure based on
technology resources and security
personnel, a financing solution
in addition to a starting cost to
be able to offer "security service
subscriptions"
Network cameras
make it possible
The network technology arena has
added several new functions. This
is especially clear when it comes
to the security industry, with for
example video analysis which can
generate several services based on
individual customer needs. And
with more and more network
cameras being installed the op-
portunity for SaaS rises. Several
companies have already acknowl-
edged this and have started camera
monitoring centres from where
applications can be remotely
monitored and from where alarms
triggered by IVA cameras can be
handled.
Technical SaaS
It is not only camera systems that
are able to generate SaaS ooportu-
nites. Within access control and
Technology based services are
perhaps mostly associated with IT
and telecommunications, but the
private home alarm market has for
many years been service based. On
the market for so called profes-
sional security installations this
has yet to have a break through,
which can be easily explained.
Until scalable network technology
came along there were not suf-
ficient opportunities to effectively
package a portfolio of service
offerings. But now these have
become commercially attractive
to professional security buyers,
and for the suppliers many busi-
ness opportunities are suddenly
emerging.
Security technology can be a
cost effective alternative to tradi-
tional guard services, for example
when cameras replace stationary or
patrolling personnel. Even more
common is when cameras con-
tribute to avoiding unnecessary
emergency call-outs. But those
delivering these services normally
do it in the form of a traditional
offer where the customers buy the
technology and pay for the instal-
lation. The products are in other
words still the main focus of the
purchase.
New business models
Migrating from product focus
to SaaS is a slow process. On a
market tormented by worsening
product margins and by tradition-
ally low hourly rates it would be
a very healthy move if the process
Security-as-a-Service
fromacommoditydriventoaserviceorientedmarket
Many industries have already acknowledged that
merely selling products isn“t the way to growth. In a
globalised market where Asia and China in particu-
lar are in the front line of world production western
companies will struggle if trying to compete and
make money on products. Instead, delivering services
and value is the way to go, and the security industry
is no exception.
By Lennart Alexandrie
New series of Detektor articles on security services
The future of the security market including technical solutions will be all about
suppliers delivering an infrastructure from which functions and services are gener-
ated, packaged and priced. These are the points that most market analysts agree on.
But what does this mean for the security suppliers and customers? During 2013
Security-as-a-Service (SaaS) will be a reoccurring topic in Detektor International
starting in this issue.
The private home alarm market has for many years been service based, but SaaS has yet
to have a break through on the professional security market.