Security Dealer & Integrator

FEB 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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wide-ranging as our customers are – some are very focused on knowing their systems are always working as they should; some need to ensure their security is compliant to industry stan- dards; and some want more remote management capabilities, just to name a few. ese are all best done 'as a ser- vice.' Most of our products now live on the network – through that, we are able to address our customers' critical need for responsiveness." The First Steps to Becoming an MSP Integrators must understand each customer's technical and operational environment before assessing the need for promoting whatever they can feasibly offer "as-a-service." us, the first step, according to Meltzer, is internal analysis: • Do we have the technical resources and expertise in IT networks and infrastructure? If not, will we make the necessary investments? • What changes need to be considered to the sales processes? • What changes need to be considered to the commission structure? • What additional training will be required? • Are new skill sets required from potentially new personnel? • Are there new vendor relationships that need to be established? Meltzer stresses that integrators must have the wherewithal to sell and deliver these services reliably and prof- itably – which may require organiza- tional changes. "Are they a service-led organization? Do they leverage service capability as a market differentiator? at will speak volumes into their cul- ture and whether an as-a-service strat- egy will be successful," he says. Once the groundwork is laid, Lanning recommends the company use a ticketing system to drive the managed services business model. "Learning to track time spent servic- ing is critical to understanding how to monetize the services you perform for your clients," he says. "We use Con- revenue stream, has the added benefit of creating a barrier to entry for competitors. For their part, commercial customers are quick to see the advantages of working with systems integrators who have made the leap to managed services. Thanks to the RMR model, some of the capital expenditures that customers might have faced on system installation can be allocated for operating expenses. Customers also like the idea of a single point of accountability. Whether a component fails or an employee needs training, there is one vendor to contact. In recent years, rapid advances in technology have further reinforced customer preferences for managed services. In the past, systems integration was often a turnkey process – once the system was installed, the customer managed and maintained it. As the pace of change increases, many customers are finding that they lack the experience or the inclination to invest continuously in new security technologies. No other provider is better positioned to assume this responsibility than the system integrator. In addition to more constant cash flow and greater customer acceptance, there are also significant valuation and credit advantages for managed service providers. This is especially true for smaller companies that lack RMR and often find it difficult to secure a meaningful line of credit. The same company with contractual RMR can more easily secure a loan, and because valuations of security companies can be informed by RMR multiples, systems integrators or their investors seeking a buy-out can do so on much better terms. Although it can be a challenge for a system integrator to think holistically about the services it might provide, it is ultimately worth the effort. A successful change in mindset can unlock value for its customers as well as the company itself. » John Robuck is Managing Director of the Security Finance lending practice within Capital One Bank's Commercial and Specialty Finance business. To request more info, visit www.securityinfowatch.com/12070948. February 2018 www.SecurityInfoWatch.com / Security Dealer & Integrator 41 Learning to track time spent servicing is critical to understanding how to monetize the services you perform for your clients." — Andrew Lanning, Integrated Security Technologies Inc.

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