Security Sales & Integration August 2022 - 36

Percentage Companies' Total
Revenue Comprised of RMR
Original Research
2022 SSI Recurring
Revenue Deep Dive
Percentage Companies' Total
Revenue Comprised of RMR
Percentage Residential Revenue
Comprised of RMR
Revenue Comprised of RMR
Revenue Comprised of RMR
Percentage Residential
Percentage Residential
More than 75%
9%
On average,
21% of survey
participant
companies'
residential
revenues are
recurring in
nature.
Approximate RMR Growth
During Past Year
Approximate RMR Growth
During Past Year
41%75%
9%
21%-40%
8%
11%-20%
19%
6%-10%
12%
About
four in five (77%) respondents have
some form of RMR linked to their customers'
service. On average, 21% of survey
participant companies' residential revenues
are recurring in nature.
1%-5%
20%
None
23%
Percentage Commercial/Industrial
Revenue Comprised of RMR
Percentage Commercial/
Industrial Revenue
Comprised of RMR
More than
75%
18%
41%-75%
12%
21%-40%
7%
11%-20%
26%
None
11%
1%-5%
8%
6%-10%
18%
Percentage Commercial/
Industrial Revenue
Comprised of RMR
Dealers and integrators continue to
generate a higher percentage of RMR
in commercial/industrial business than
residential, with the gap widening further
the past year. The average is 33%, placing
this sector 12 percentage points ahead of
the residential market.
Approximate RMR Growth During Past 5 Years
Approximate RMR Growth During Past 5 Years
NAPCO: As a Service Translates to More RMR for Savvy Security Dealers 12%
1%-5%
Declined
Declined
▶ Security
as a service
(SaaS), access
control
as a service
(ACaaS), video
as a service
(VaaS), etc. - known by
any name or tech specialization,
the security industry is
increasingly transitioning to
an " as a service " model vs. a
traditional hardware-centric
one. Reflecting today's consumer
tastes and behaviors,
the most successful dealers
(a.k.a. next-gen end-to-end
service providers) offer a
host of interactive connected
services, enabling accounts
to stay in constant contact
with their homes or businesses
from anywhere. For
example, routinely updating
them of all that's happening
there, conveniently controllable
via their smart device.
Much like getting the
scoop from omnipresent
social media, here the 24/7
security " news " is provided
by the connected/integrated
smart system, via smart
device on-the-go or online.
The new RMR business as
a service model is actively
delivering text messages,
push notifications and/or
live-view or (shareable) video
clips, offering smart easy
app control, and communicating
with our accounts
and our monitoring stations,
digitally and/or cellularly -
1%-5%
6%-8%
9%-10%
11%-20%
21%-40%
No growth
No growth
More than 40%
More than 40%
6%-8%
9%-10%
11%-20%
21%-40%
the faster the better.
The more marketed the
better, these RMR-services
are what we use to demonstrate
accounts' ongoing
security and our ongoing
value. That is an advance
from the passive promise
for peace-of-mind, like the
old days where a system
sat seemingly dormant
except in a rare emergency.
With broadband, faster cell
network connectivity and
smarter device technology,
integrators/dealers can
market an evolving host of
account-retaining services,
often from their own
custom-branded app. That
includes remote control
or notifications, seemingly
mandatory VaaS and
newer, embedded hosted
and/or Cloud-based ACaaS
offerings.
More affordable and right18%
12%
18%
6%
6%
11%
15%
11%
22% 15%
22%
sized for the mass volume
of SMBs, hosting these end
users' access/security/monitored
account can avoid
onsite hardware hassles, IT
networking necessities or
deployment delays. Yet it
creates still higher volumes
of RMR-earning/revenue
opportunities for security
pros (all made more palatable/readily
adopted during
COVID's remote working
conditions).
- Judy Jones, Vice President,
Marketing, NAPCO
Security Technologies
11%
11%
5%
5%
36
Security Sales & Integration AUGUST 2022
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Security Sales & Integration August 2022

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