Technologies may be converging, but when it comes to the revenue models of security dealers and electronic systems contractors, the differences are vast.
A confluence of both opportunities (energy management, mobile technologies) and challenges (depressed home construction, reduced consumer spending) keeps pushing installation companies into market segments in which they’ve never gone before. One result is that more security dealers are seeking sales of residential systems that go beyond traditional security, especially those targeted for the existing home market. Another result is that electronic systems contractors (ESCs) are looking at security technologies, in addition to their more traditional products of home theater and audio, as a way to boost their revenues.
This convergence has led to product offerings from both industries that appeal to each set of installers; for example, systems that have security as the familiar platform, but also do energy management for the cost-conscious homeowner. But until now, no one has addressed how the convergence among these two particular industries plays out in their respective business models.