Recurring monthly revenue, or RMR, from new types of applications is the focus of a new partnership announced between global security manufacturer RISCO Group Inc. and PSA Security Network and Integrator Support LLC.
“Providing ways for our members to increase their recurring revenue, and thereby the value of their enterprises, is one of PSA’s primary goals,” said PSA chief executive officer (CEO), Bill Bozeman. “RISCO Group has put together an intriguing opportunity that will enable us to do just that.” That opportunity is based on RISCO’s Advanced GSM/GPRS Module which allows integrators’ customers to remotely manage events without central station monitoring.
“The event monitoring service offered by RISCO is a unique solution that provides integrators a means to generate recurring revenue without assuming the risk associated with traditional monitoring services,” stated Sharon Shaw, vice president of Integrator Support. “This solution fits almost any application and could be a real game changer in our industry. We are delighted to add this solution to our managed services portfolio.”
According to RISCO Group USA CEO Len Friedman, this opens the door to an entirely new type of opportunity. “Integrators can now generate recurring revenue without the need for monitoring,” he explained. “Our AGM or Advanced GSM/GPRS Module enables users to receive notification of events on their mobile phones and then respond by activating outputs via simple text messages. There are countless opportunities where end users need notification only and not necessarily monitoring and dispatching.”
Friedman also pointed out that the revenue can be generated without increasing risk. “If there is no life safety involved, the risk should be minimal,” he noted. “Typically the only activity required after installation is billing the customer.” He also said that RMR generated through this program can be expected to earn the same market valuation as typical alarm monitoring RMR, thereby increasing the value of participating integrators more than service revenues which typically earn a lower valuation. This results both in improved financing opportunities and a higher return if the business is evaluated for potential sale.
The opportunity opened up with the introduction of RISCO’s AGM. The cellular communications device allows reporting and control via 4 inputs and 4 outputs, voice messaging, SMS notification and control, and other features. It can also work with any alarm panel to provide primary or back-up communications to a central station or function as a stand-alone alarm system.
RISCO, PSA and Integrator Support created a turnkey program for integrators under which Numerex SIM cards can be purchased and activated and network services arranged. A schedule of one-time and monthly fees is provided for data usage, voice and text messages. Most applications require minimal data usage. With end-users willing to pay ample fees each month for the convenience of event notification and remote control, integrators are in a position to earn significant RMR on each installation.
RISCO will also offer its entire range of security solutions to PSA members, including detectors, intrusion systems, access controls, enterprise level event management systems and other products. RISCO’s Agility two-way wireless platform will also be available. The ProSYS and Agility lines are available only through the RISCO Certified Integrator (RCI) program. Participants are offered protected territories, co-op advertising, RISCO Engineering Services, training and certification, leads and other benefits. RISCO will work closely with PSA to identify and enroll members best suited to the RCI program.