Subscriber Discussion

NEST And MONI An Oxymoron?

LJ
Lee Jones
•Nov 12, 2017
Support Services Group

Google NEST SECURE partner with MONI / ASCMA…. an oxymoron!

A 2018 business model “nesting” with a 1970s business model.

Will NEST pull-up MONI, or will MONI pull-down NEST?

Remember MONI, formerly Monitronics, owns and services over one million recurring revenue customers that fit the 1970 model, ie remotely monitored motion sensors that produce near total error (false alarms). MONI is just one of several hundred of these licensed monitoring firms that require/hold a special operating license in most States, supported by powerful lobbyists and share in the $20 Billion market value. Even SimpliSafe has partnered with a similar licensed provider of remote monitoring. These are “consumer protection products” serviced under private contract. However law enforcement has “subsidized” these special entities for decades (up to 18% of local police budgets) but now alarm response is considered near total waste of public resources. Several states, including Florida, Georgia, Texas, have already passed legislation, representing hundreds of their municipalities, banning these licensed monitoring firms from calling the cops first… and must now call the customer located in these states as first priority. Moni is headquartered in Texas. Even San Jose CA, the neighbor city to NEST, has stopped responding to private property deterrent alarm systems.

We would hope firms like Google Nest Secure would finish their “product” with a compatible model for monitoring the next generation, without sharing the legacy liability. What do you think?

 

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JH
John Honovich
•Nov 13, 2017
IPVM

I don't follow Nest closely enough but it appears that they are trying things out as they attempt to expand into the professional / commercial market, e.g., Nest Wants You To Be A Pro Dealer.

Lee, what do you think is the right move for Nest?

LJ
Lee Jones
•Nov 13, 2017
Support Services Group
In reply to John Honovich

John… You asked, a fun “what if” question. What could be a good move for Nest Secure? If I had their money, their talent, their creativity, their infrastructure, I could focus on the new generation of “lifestyle markets”, formerly known as remote monitored residential property alarm security. This traditional market is beginning to collapse as noted earlier, and needs/ wants/ receptive for a new caretaker. 15 million receptive customers with invalid contracts, is a good place to start. The relationship with Moni could compromise their momentum. Start with the next gen of NEST remote interactive monitoring. Then pick up the pieces during and after the collapse.

Anybody else with “what if” suggestions?

LJ
Lee Jones
•Nov 15, 2017
Support Services Group

Update to “NEST / MONI oxymoron”

A colleague called to disagree with my observations…. Said Nest should buy Moni, then update/upgrade the one million existing customers, as a low cost marketing effort.

Good plan that could apply…. but… I stand-by my original oxymoron position…. because some of us insiders believe there is a high risk of a nasty legacy liability attached to many monitored customers of this business model. Millions of customers of this business model are led to believe that the local cops will come, fast, when their monitoring company calls for help. Alarm industry leadership and local management are fully aware that is not accurate… most AHJ have lowered the response priority, for calls from licensed monitoring firms, to slow or no response. Many traditional alarm users are paying $40 monthly for a $14 service. Customers expect police response, but often get only phone calls, texts, even snail mail from their monitoring source…. could be considered deceptive business practices, even consumer fraud. We would expect the “deep pockets” like Google Nest Secure to be aware of the risks.

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Avatar
Brian Rhodes
•Nov 16, 2017
IPVMU Certified

Just so Lee and others don't feel like they're talking to an empty room here.  :)

We've tested Nest Secure and will be releasing our full report on it in the next few days.

In general, I think the limited sensor performance of the Nest system will very much reduce the false alarm risk.  That isn't a 'pro' or advantage either.  Nest Detect combo motion sensors are pretty weak compared to traditional PIR types, and surface mount magnetic contacts are not big false alarm sources.

Even with the concerns that Lee notes, I'm not convinced that many Nest Secure buyers will voluntarily opt-in for a $50/m monitoring plan when they went with a DIY to begin with versus traditional alarmco offerings.

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