Revamped business strategy pays dividends for Vivint

Company grew by more than 400 percent between 2008 and 2012

SIW: How are you bracing for the impact of new entrants into the home security and automation market such as large cable firms and telecommunications providers? How are you going to be able to differentiate yourselves from them in the long-term?

Bywater: First off, I think it’s actually good because I think they’re helping enlarge the market. They bring a greater awareness that helps enlarge the market, so we view that as an opportunity. With regards to how we’re going to do it, we’re going to do it the same way we’ve always done it which is how do you out innovate? How do you provide substantially better customer service and provide a phenomenal economic value proposition? There’s no secret sauce there. We think we’ve got, relative to our peers, a substantial advantage when it comes to our customer service and we’re continuing to find ways to improve that and enlarge that gap.

SIW: Home automation and energy management have obviously opened up new RMR streams for the security market in general, but where do you see new RMR streams coming from in the future?

Bywater: There’s the obvious stuff where you see the bundling of additional services. Whether it’s your own solution or a partner’s solution, I’m sure you’ll see more and more of that over time. I think there’s still enormous penetration to be realized as the industry finds a way to expand the full suite of existing solutions to customers as they’re aware of them and demand more features and functionality. For us, we very much expect a lot of our customers to want to cross-penetrate into solar, so that’s huge for us.