Commercial Integrator + Security Sales March 2024 - 49

becoming more familiar with what video
surveillance is and does, and they're asking
for it by name when they talk to their
favorite security integrators. And, while
we're likely to never get past the time
when security installations are done when
it's too late, more end users are now seeming
to be proactive in protecting themselves
with video surveillance systems.
The Emergence of
Video Surveillance
" If there's a hot button that I think about
2024, that's video surveillance, " says John
Loud, president of 2023 SSI Installer of
the Year LOUD Security Systems and
chairman of the Electronic Security Association
(ESA).
" We, as an industry, have watched over
the 20-plus years about how video and
cloud and storage and what people can
see and does it allow audio or not allow
audio and NDA compliance? There have
been a lot of mitigating factors throughout
the years, " says Loud.
Loud has always loved doing installations
with an access control component,
because it offers four pieces of recurring
revenue, " ...but video surveillance is just
going to absolutely dwarf the recurring
revenue model that you see in the access
control space today, even when people do
manage the solution for their customers
or do the maintenance and do the monitoring
and do the cards. "
Video surveillance is becoming an
emerging piece of the pie for 2021 and
2022 SSI Installer of the Year Acadian
Total Security and Acadian Monitoring
Services, a regional integrator based in
southern Louisiana, says vice president
Brandon Niles.
" Video surveillance and those pieces
probably result in or make up about
somewhere between 40% and 45% of
everything that we sell, " he says. " On the
recurring side of it, it's not quite as large
right now. We do sell a lot of monitoring
services and that consists of probably
about 10% to 15% of all of our RMR
(recurring monthly revenue) is from the
video surveillance side, not including
service plans. "
He continues, " We do look at that to be
a little bit different for the most part with
service plans. We get that on about a little
better than 50% of all the camera systems
that we sell. We would love to see that
higher and we're actively working on that. "
" With the monitoring side of our
business, we are at this point almost
100% video monitoring-focused through
our dealer partners, " says Niles, noting
the company sold its alarm monitoring
business a couple of years ago so it could
focus on video monitoring.
" In that time, we've seen that part of
our business grow by about 200%, " says
Niles. " I'm not sure that we saw that level
of increase in the five years that preceded
those two years. "
Eric Yunag, vice president of global
service-based systems integrator Convergint,
which has almost 10,000 employees
in 200 locations on five continents and
serves primarily enterprise mission-critical
environments calls video surveillance
" ...a huge part of our business. "
" The knowledge and understanding
of a lot of the current video ecosystem
as well as a lot of the emerging trends
around AI and cloud, those kind of things,
are an important part of the capabilities
that we bring to customers in the video
surveillance space, " he says.
" There's a high importance in that now
31% to 35%
7.5%
To what extent are lingering
supply chain issues continuing to
negatively impact your company's
new video surveillance sales and
upgrades?
No
continuing
impact
10%
12.5%
22.5%
Moderate
continuing
impact
Supply chain issues, although not
entirely in the rear-view mirror, are no
longer a major encumbrance in this
segment for most integrators.
What is your company's
approximate gross profit
margin on video surveillance
installations?
76%
to 100%
2.5%
51% to 75%
5%
41%
to 50%
7.5%
10%
36% to 40%
17.5%
7.5%
10%
21% to 25%
17.5%
16%
26% to 30%
to 20%
5%
More than half of respondents put their
gross profit margin between 21% and
40% for video surveillance installs.
11%
to
15%
0%
2.5%
1% to 5%
7.5%
6% to 10%
Minimal
continuing
impact
55%
Significant
continuing impact
March 2024 | Commercial Integrator+Security Sales & Integration
49
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Commercial Integrator + Security Sales March 2024

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