The Romance and Realities of Recurring Revenue

Author: John Honovich, Published on Aug 08, 2010

Our industry's recurring revenue romance obscures the reality that such efforts may not be viable competitively. We believe this significantly increases the risk that video surveillance based recurring business revenue models will dissapoint.

Viable recurring revenue business models require ongoing material costs. If such costs do not exist, competitors can charge a moderate up-front price with no ongoing fees (as ongoing costs are minimal). For such offerings, a provider charging ongoing fees will be disadvantaged to a one-time charge option. The recurring cost provider becomes an inefficient loan provider. Securing bank loans/financing will provide savings to most customers.

******* ***** ********* **** **** *** ******* ******* *****, ****** no ******* **** *** *********. ******* ****, ** *** **** providers *** *********** ******** ******* ***** ********* **** ****** $**, $20, **** $** *** ****** *** *****. ***** **** ********* are ******* ********* (*********************** ***** *********), ** ** ********** **** ********* ***/*** ********* offer ******* ***** ** * **** ** **** *** **** add-on (********** ** *** ******* *** ********* *** *** *********). At **** *****, ********* ******* **** ** **** ** *******.

***** ****** ***** *** ******* ******* ***** (*.*., *******, *********), we ******* ******* ***** ******** *** **** ********* **** ******* at * *** ***** **** **** ****** ***** *** *******. The *** *** **** ***** ** ********* ****** ****** ****** anywhere *** **** ** - **** ******* *** ****** *** provide **** (****** ******* ******** **** ** **** ***** ****). Hosted *** ********* *** **** *** **-**** ******* ***** ********** on-site ******* **** (*** *** ********) *** ********** **** ** stolen **-**** ********. *******, **** **** *********** ***** *** ******* the ***** *******/****** ** ******* **** *** ** ********.

********* ******* ******* ****** ********* *********** *** ********* ********. ***********, if ****** ***-********* ******* ******** *********** ****** *****, ********* ******* providers **** ** **********.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Most Recent Industry Reports

Avigilon New COO James Henderson Profile on May 23, 2017
It has been nearly 2 years since the infamous Bryan Schmode 'resigned' as Avigilon COO. Now, Avigilon once again has a COO, promoting James...
Aura's 'Invisible Ripple' Next Gen Intrusion Detection Tested on May 22, 2017
Aura Home is a startup intrusion detection system, but it claims new, high-tech sensing that monitors the 'invisible ripples' movement creates,...
Pelco Shutting Down Clovis Line, Laying Off 200 on May 22, 2017
Pelco's Clovis facility once turned out some of the industry's most popular products. Now, the facility is mostly building "obsolete" equipment,...
IP Camera - 15 Year Shootout on May 22, 2017
How far have IP cameras come? We bought and tested 4 cameras across the past 15 years to understand how much and where performance has...
Remote Video Monitoring Providers Directory on May 19, 2017
Remote video monitoring can help integrators generate RMR plus end users lower their security costs and/or improve response to critical...
Axis Criticizes OEMs: "When You Buy An Axis Camera, An Axis Camera Is What You Get!" on May 19, 2017
When you buy a Honeywell camera, you likely get a Hikvision, Dahua or some other company's product. The same goes for easily 100 different...
Hackable 125kHz Access Control Migration Guide on May 19, 2017
Despite being one of the most popular credentials, 125 kHz credentials are easily copied and insecure as we showed in our test results, video...
Forget The Backdoor, "ALL HIKVISION PRODUCTS" On Sale on May 18, 2017
Less than 2 weeks after the Hikvision Backdoor was confirmed, Hikvision has launched a sale "ON ALL HIKVISION PRODUCTS". In this note, we examine...
Amazon Techs Installing IP Cameras Tested on May 18, 2017
In 2015, Amazon started offering video surveillance installation. Now, Amazon has made it a lot easier, with automatic add-on options and...

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