Can Amazon Become The Next ADT?

Author: Brian Rhodes, Published on Sep 19, 2013

The world's largest online retailer wants to sell you security. Amazon, who sold over $60 billion direct to end users last year, wants to add security, surveillance, and home automation to your orders for books, movies, and breakfast cereal. Will customers change the security market by cutting out the multinational alarm companies like ADT, Vivint, and Protection1, and choose Amazon? We look at those dynamics in this note.

The Amazon Threat

** *** ******** *****, ** ****** ***** ******** **** ******* an *********** *** ******:
  1. ****** ** **** **** ******* **** ***** *******
  2. ***** ******* ****** / ***** ********* ** **** ********* ****
  3. ****** ** **** ** **** *** **** ***** ******* *** no ***

New '**** **********' ******

****** ****** * **** ********* ** ********* *****,*** *** ******** ************* *** ******** ****** '**** **********'**** ******** **** *****, ******** *******, ***** *******, *** ***** thermostats. *************, **** *** ** ********* *** **** *** ****** of ******** ********** *** *******, *** ****** *** ***** **** 4,000 '**** **********' ******** ** ***** ****** ** *** *****:

Headline *********

* ***** ***** ** *** ****** ****** ****** ** ***** portal ******* ******** ***** ****:

  • **********: **** ******** ** *** ** '**** *****' *******, **** DIY ********* ****** ******** *** **** ****** *****, * *** dialer, *** *****-**-***** ********** ** * $** ******.
  • **** ********: ********* ******* * ***-$*** '*****' ****** ** ******* * doors/windows
  • *****: ********* ******** **** ***** *** ********* *******
  • *******: ****** ** ****** $***, ********* ******** ** ***** **** '***' ** ****
  • ******* ****: ********* ******************* ** ** ****** **** **********
  • *********: *********** ****** *******, **** ****** ********** *** *************
  • *-****: ****** ******** ********* ** '**** **********' ******** ********.**.* ********** 
  • *****: ****** *****, ****** *************, *** ****
  • *-***: *** *** **** *** **** '** ***** **** *****'

******, ***** ***** ********* *** *** *********** '******* ******' **** field *********** **** *** ** ******* ** ****** ******** **** mainstream ********** *******, ***** ********* *** ********* ** ********* **** a **** ******: *** ******** ***** ** *****.

Amazon's *****and *****

***** **** ** ********* **** ***** ******* ** ****, **** of **** *** ***** ******* ******* **** ***** *** ******** with *** ******* ********. ****** *** ~*** ******* ********* *** an***********+ ******* '***** *******'. 

Peer *******

**** ***** ***** ******* **** ******'* ******** *******. ****** ********* offerings **** *** **** ** '*** ** *******' ********* ** alarm ******* ** *** ***** ****** *** *** ****, ******** on ****** ******** '****** ******' ******* ****** ******* * ******* ****** ** *** ******* pages. ********* *** **** ** **** *** **** ********** ** reading ******, ******* ********, **** ***** ******* *** ******* ******* whatever ********* ** ******. ***** ****** ******* *** ********** ** ************, **** *** ******* ** *** *********** *** *** ********* available *** **** **** ******** ********.

No ******* ********

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A ********** *** ******

*** ****, '***** ** ********' ** ** ********* *********** ** the ******** ****** ** *** ****. ****** **** ******** **** a *****-**** ********* **** *** ****** ** ***** ********* ***** **************** ******** *************** ****** ********, ****** ** ****** **** **** **** ********* ****: **** security ******* ***** ******* ** ********* ***** *********.

***********

*********, ******'* ********, **** ** ** *******, **** **** *********** limitations *** ***** *** ****, *** *** ******, * *******, service **** ********* **** ********.

Strongest ******

***** ******* ********* ****** *** ******* ** ********* **** **** 20% ** *****. **** *********, *** ****, ********* *** *** complaints ***** ***** ********* *** ********** ** **** **********.

******, ** ** ***** **, **** ** **** ********* *** non ********* ** *********** ****** ******* *** ***** ******** ********* who **** ***** ***** *** ******* *******. ***** ****** *** take **** ****** ***** ******** **** *** ****, ** ***** prove ** * ***** ******* ** ******* ****** ** ********* of *********** ***** *******.

 

Comments (2)

I have long said that DIY will be the death of the small mom and pop dealer, as technology makes the systems ever easier to install, the internet makes communications issues obsolete, and cost reduces to the point that it's cheaper to just replace a bad device than to call for service. While Intrsusion and Surveillance have been dealing with this trend already, it is just starting to impact Access Control. The dealers and integrators that survive will be those that add value to the the end users's experience, including customer service, seamless integration of systems, customer service, better products at competetive prices, customer service, and a focus on meeting the customers needs rather than forcing them into whatever system the integrator happens to be selling. Oh, and Customer Service.

I used to work for an Integrator and now that i do not (and don't have access to cheap monitoring) I would use Amazon in a heartbeat as long as the reviews were good.

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