Tech Trends: Forecast - Cloudy with a Chance of Big Profits

Competition for RMR in the cloud is growing fast, especially in the residential market

Business Threats and the Residential Market
A real threat to the business status quo in the security industry actually comes from outsider companies. It is not a stretch to think that those who operate large data centers — Amazon, Google and Microsoft, for example — could evolve plausible security-targeted business models themselves.
A number of top-tier security integrators are migrating their business model to services, increasingly caring less about the hardware and installation revenue. Nowhere is this more prevalent than in the residential market - attractive because of its sheer potential for growth, both in number of users and services offered. Alarm monitoring can now be supplemented with video verification, off-site storage of alarm event data, energy management, lighting control and more.
Mobility is tightly linked to cloud services, and a homeowner’s ability to remotely check on a property is compelling. A good friend of mine, after suffering a very expensive break-in, moved to a video-enhanced alarm system with this remote capability. Now he’s telling all his friends about it. The system was installed by a very qualified regional systems integrator who displaced a well-known national brand.
It’s going to be  an interesting competition: there are the nationals who are accelerating their product offerings and advertising; the local and regional firms that are embracing cloud services; and the telecom and IT companies who are now deciding to throw their hat into the ring.

Ray Coulombe is Founder and Managing Director of and Ray can be reached at, through LinkedIn or on Twitter @RayCoulombe.