Brivo Launches 'Hardware as a Service'

By Brian Rhodes, Published Dec 10, 2014, 12:00am EST

Brivo was one of the first and still few 'hosted access' providers that uses cloud-based servers instead of dedicated head-ends.

Now they are introducing "HaaS", or 'Hardware as a Service' where even the physical door controller is provided as part of a monthly service.

Does this new approach make sense? We take a look at the details of the offering and its tradeoffs in this note.

Plan Overview

With HaaS, Brivo has essentially adopted the traditional intrusion alarm business model for access control. Typical upfront access equipment costs are instead packaged as an equipment lease that coincides with a service contract.

Even within Brivo's own traditional "SaaS-only" offering, the upfront equipment costs ~$500 per door which is not charged when using the HaaS program. Instead, the customer leases the controllers for a contracted service period at a higher typical rate.

Brivo told us: "Its a bundle of our Brivo OnAir services and the hardware (IPDC) that supports the service.  The hardware is under perpetual warranty and we also guarantee to upgrade it if a newer version comes out"nlike the typical Brivo system, old hardware will be exchanged for new when it is available at no cost to the user.

Unlike the typical Brivo system, old hardware will be exchanged for new when it is available at no cost to the user.

Brivo Overview

The vendor's promo video below offers a general marketing overview of the platform. Structurally, Brivo's biggest differentiator is they host the access management and maintenance servers for a monthly service cost, trimming out that system component from a hard cost and replacing it as a service cost:

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HaaS is only compatible with Brivo's proprietary IPDC controller.  Up to two doors can be controlled by the ethernet based, PoE powered device.

Pricing

Brivo tells us MSRP for HaaS will be roughly double the non-HaaS rate, or about $30 per door for 36 months.  Over the lifetime of the contract, the cost will equal ~$1100 per door.  This is fairly even to the non-HaaS Brivo cost, which equals ~$1000 of hardware and service at the end of 36 months, with the major difference being the customer owns all the hardware.  Customers may potentially be able to depreciate the cost of a SaaS-only Brivo system, where they cannot with a HaaS system.

Three-Year Contract Required

With HaaS, Brivo (and Brivo Dealers) will require minimum service contracts to offset the defrayed hardware costs. Like alarm providers that routinely offer 'Free System [link no longer available]' promotions, Brivo structures the hardware costs as part of the monthly service fee.

Application Pro and Cons

Some integrators may find this attractive as it helps build RMR, the 'holy grail' of the security industry. In particular, RMR based businesses generate significant higher valuation than project ones, an important point for companies looking to eventually sell their business.

On the other hand, integrators who are used to getting all their money up front may find this uncomfortable or challenging to delay / spread out immediate cash inflows.

Your Thoughts?

How appealing do you think Brivo's HaaS offering is?  Vote Below: 

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