Alarm.com's Surging VSaaS Growth

Author: John Honovich, Published on Oct 21, 2011

While most of the hype and attention about VSaaS has gone to Axis's questionable AVHS offering, a fundamentally different VSaaS approach is reporting surging growth. In this note, we examine Alarm.com and their hosted video offering, contrasting it to AVHS and analyzing its competitive positioning.

Surging Growth

When we first looked at Alarm.com in 2009, their video service was less than a year old. Alarm.com's core market is alarm monitoring and, at that time, Alarm.com had approximately 200,000 subscribers. Now, Alarm.com is reporting over 750,000 total subscribers with about 50,000 of them subscribing for the hosted video service. On the video side, Alarm.com notes that subscribers have surged from 5,000 to 50,000 in the past year with 1 or 2 cameras, on average, deployed per subscriber.

Offering Examined

Alarm.com positions video as an add on component integrated with their overall security/home automation offering:

  • Includes unlimited remote/mobile live video viewing
  • Limited storage (typically in the hundreds of MBs) designed for viewing clips
  • Triggers for video recording when a door is unlocked, armed, when an alarm is triggered, etc.
  • Inexpensive pricing - typically less than $10 per camera per month and sometimes bundled in to a package flat rate price for security, automation and video combinded
  • Sold and serviced by the same Alarm.com partner providing alarm monitoring to the residence

The two main value propositions we see is (1) making it easy to look in to what's happening at one's home or small business and (2) increasing the value of one's intrusion/access system by reviewing video of what happened.

Offering Analyzed

We see this as an easy sell with compeling value proposition:

  • As an inexpensive option, cost is not a barrier (as it is with a $80 per month / 4 channel AVHS offering).
  • As an add on to an existing service or a bundled package, it is relatively easy to sell (unlike AVHS which often is a new service to a new customer).
  • It is not trying to replace an existing mature solution (as AVHS is with DVRs).

A solution like Alarm.com is not and cannot replace DVRs or VMS software. However, with its pricing and complimentary position to intrusion monitoring systems, it does not need to do so.

We believe this approach has a high likelihood of success and should be treated seperately from the up hill battle AVHS providers have in replacing full surveillance systems.

Comments : PRO Members only. Login. or Join.

Related Reports

Milestone Disrupts Milestone With Arcules on Nov 19, 2018
Milestone is now competing against... Milestone's own spinout Arcules. New IPVM testing shows that Arcules has incorporated a substantial amount...
Solar-Powered, Smart-Phone-Based Access Kit (VIZPin) Examined on Nov 02, 2018
Cloud-based access control company VIZPin is releasing a solar-powered and smart phone based access control system for gates and other remote...
Cloud Video Storage Usage 2018 on Oct 31, 2018
Storing email and documents in the cloud have long been common, with on-site email or file servers increasingly eliminated. However, what about...
Directory of Access Control and Intrusion Startups on Oct 30, 2018
This directory catalogs access control and intrusion detection startups IPVM has found noteworthy. The directory is provided for your review to...
ADT Acquires Red Hawk, Becomes Billion Dollar Commercial Business on Oct 25, 2018
With its ~7th commercial acquisition in the past year, ADT is transforming itself from a residential provider to a commercial player with now more...
ADT and Brinks Home Security Struggles Impact On Industry Examined on Oct 23, 2018
ADT and Brinks Home Security have both been struggling over the last year. ADT valuation is 50%+ less than their IPO target. Brinks Home Security,...
Security System Health Monitoring Usage Statistics 2018 on Oct 09, 2018
How well and quickly do integrators know if devices are offline or broken? New IPVM statistics show that typically no health monitoring is...
Fall 2018 New Products Directory on Oct 03, 2018
Fall 2018 New Products Directory We have compiled a directory of new products released fall 2018, or at least since our Spring 2018 Directory. The...
Alexa Guard Expands Amazon's Security Offerings, Boosts ADT's Stock on Sep 21, 2018
Amazon is expanding their security offerings yet again, this time with Alexa Guard that delivers security audio analytics and a virtual "Fake...
Central Stations Face Off Against NFPA On Fire Monitoring on Sep 18, 2018
Central stations are facing off against the NFPA over what they call anti-competitive language in NFPA 72, the standard that covers fire alarms....

Most Recent Industry Reports

Milestone Disrupts Milestone With Arcules on Nov 19, 2018
Milestone is now competing against... Milestone's own spinout Arcules New IPVM testing shows that Arcules has incorporated a substantial amount of...
Pressure Mounts Against Dahua and Hikvision Xinjiang Business on Nov 19, 2018
Pressure is mounting against Hikvision, Dahua, and other companies operating in Xinjiang as an international outcry brews against the Chinese...
Arcules Cloud VMS Tested on Nov 19, 2018
Arcules is a big bet, or as they describe themselves a 'bold company', spun out and backed by Milestone and Canon.  But how good is Arcules cloud...
'Sticker' Surveillance Camera Developed (CSEM Witness) on Nov 16, 2018
The Swiss Center for Electronics and Microtechnology (CSEM) has announced what it calls the: world’s first fully autonomous camera that can be...
ISC East 2018 Mini-Show Final Report on Nov 16, 2018
This is our second (updated) and final show report from ISC East. ISC East, by its own admission, is not a national or international show, billed...
Facial Detection Tested on Nov 16, 2018
Facial detection and recognition are increasingly offered by video surveillance manufacturers. Facial detection detects faces in an image/video...
Throughtek P2P/Cloud Solution Profile on Nov 15, 2018
Many IoT manufacturers either do not have the capabilities or the interest to develop their own cloud management software for their devices....
ASIS Offering Custom Research For Manufacturers on Nov 15, 2018
Manufacturers often want to know what industry people think about trends and, in particular, the segments and product they offer.  ASIS and its...
Hikvision Silent on "Bad Architectural Practices" Cybersecurity Report on Nov 14, 2018
A 'significant vulnerability was found in Hikvision cameras' by VDOO, a startup cybersecurity specialist. Hikvision has fixed the specific...
French Government Threatens School with $1.7M Fine For “Excessive Video Surveillance” on Nov 14, 2018
The French government has notified a high-profile Paris coding academy that it risks a fine of up to 1.5 million euros (about $1.7m) if it...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact