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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Recently, cybersecurity services firm Coalfire validated an end-user's use of Viakoo to support retail point-of-sale PCI compliance, finding that the audit- ing of 36 physical security PCI controls could be fully or partially automated by the soware. Using a tool to digitally verify the status of physical security controls, and packaging up such information for an organization's compliance reports, is a good example of an integrator provid- ing value-added service. Such oppor- tunities exist for integrators whose customers must comply with pro- grams like energy utility NERC CIP, data center TIA-942-A, supply chain CTPAT, and federal agency FedRAMP; but also for non-regulated customers who want high assurance of security system performance. "Having solutions – like Viakoo and others – that can address devel- oping needs around cybersecurity, corporate and regulatory compliance, and risk assessment is important to meeting customer needs," says Gina Stuelke, CEO of Kansas City-based Kenton Brothers Systems for Secu- rity. "As a first step, we have found that a focus on automation goes a long way towards delivering the kind of managed services that IT-savvy cus- tomers appreciate." "Integrators must find a way to actually add value to the services they provide in order to get the recur- ring monthly revenue," McMullen explains. "If you just sell the service contract and don't add value beyond that, you aren't in the Managed Ser- vices business." Stanley uses the Viakoo service to deliver its own Managed Services offerings. "Our customers get the com- bined value of Viakoo's automation and Stanley's deep service experience – a unique offering," McMullen says. Proactive service: Andrew Lan- ning, co-founder of Integrated Security Technologies Inc., of Hawaii, explains that just as the break/fix model of electronic security system mainte- nance gave way to the service contract model, the service contract model is expanding into the as-a-service model – which can include hardware (Platform as a Service), soware (Cloud ACS or VMS), maintenance (preventive inspection/maintenance), monitoring (system health, patch man- agement, etc.) and reporting (weekly, monthly or quarterly uptime) bun- dled together or a la carte into a single monthly payment. "is lets the client plan for annual security costs, which increase incre- mentally with system growth," Lanning says. "e real value for the client is in the monitoring and uptime reporting – what good is a system that is offline when you need it most?" "Our business has changed more in the last five years than in the pre- vious 50, and one of the most signif- icant changes is adding more man- aged services offerings to our lineup," Stuelke says. "e opportunities are as Recurring monthly revenue (RMR) is as much a state of mind as it is a financial strategy. For systems integrators to reap the financial benefits of RMR, they may need to rethink the way their business operates. Historically, systems integrators have seen them- selves as specialists. They focused on a select group of technologies, cultivated the expertise and certifications needed to deliver them, and sought discrete projects where these technologies and expertise were required. If they entered into service or maintenance arrange- ments, these were likely to be ad hoc rather than con- tractual, and payments tended to be intermittent. Switching to an RMR model requires systems inte- grators to think of themselves as providers of solutions, not just systems. This means broadening their capabil- ities. In addition to equipment, they might incorporate connectivity, redundancy, power and monitoring, if appropriate, into a comprehensive offering. This also entails growing accustomed with the idea of trading some portion of upfront revenue for a steady and potentially larger stream of revenue over time. Focusing on RMR does not mean, however, that systems integrators must give up their identity as specialists. Systems integrators who have made the transition to an RMR business model have typically targeted a well-defined customer segment. Take the example of an integrator who focuses exclusively on managed services for national account retailers. The company could develop a customized suite of services that exactly matches the needs of companies in this market niche. As this case indicates, the switch to RMR, in addition to generating a steady Cover Story Adopting the RMR Mindset It can be a challenge, but a successful shift to managed services can unlock an integrator's value By John Robuck 40 Security Dealer & Integrator / www.SecurityInfoWatch.com February 2018

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