9 Mar 2020
RMR 101: Everything You Need to Know About Managed Services
As we’re seeing the recurring monthly revenue (RMR) business model become more prominent in the security industry, it’s natural to have questions about what this concept means and how it plays out for all stakeholders involved.
We recently explained how both end users and integrators are approaching this new strategy, but now, we’re taking an in-depth look at the overall process and addressing common questions related to how exactly RMR works.
The Cloud’s Impact
It’s critical to note that the development of the cloud has greatly contributed to the opportunity for RMR to exist. More and more end users are transferring the storage and management of their security system data to the cloud, which provides numerous benefits but also adds another layer of oversight. Small- and medium-sized businesses (SMBs) may not possess the resources, such as a robust IT team, required to handle this task effectively.
The Integrator’s Role
Managed security solutions, such as Access Control-as-a-Service (ACaaS), allow the end user to establish a service-based setup with an integrator that takes cloud and data management out of their hands. Both parties can experience advantages from this type of structure, as a strong relationship is developed that facilitates a clear understanding of the end user’s needs and tailored support when necessary.
The Nitty Gritty
As with any new process, there may be a learning curve associated with developing an RMR business model, which is why it’s helpful to work with an established access control or intrusion software provider to explain some of the various topics that may arise, such as:
- How the pricing structure is set up. The manufacturer charges the installer/dealer a minimal fee per device on a recurring schedule. The installer can then charge the end customer however they see fit and with whatever scheduling frequency works best for their business model.
- How the billing process works. Many service providers that already offer alarm or central station monitoring have subscription-based tools and applications in place to help streamline the billing process on a monthly, quarterly or annual basis.
- Ensuring data privacy and security. Today’s manufacturers must prioritize adhering to the latest data privacy guidelines, such as the European General Data Protection Regulation (GDPR), as well as strong cybersecurity protocols to ensure data transmission to the cloud is secure.
- The communication of maintenance and updates. It’s important for manufacturers to communicate clearly and effectively how and when updates are taking place, which can be done through e-newsletters, emails or system notifications.
Leveraging RMR and managed services can be a valuable experience for end users and integrators, but transitioning to this newer business model requires knowledge and insight to ensure a smooth process. Vanderbilt is dedicated to providing the information needed to achieve this goal and we’re here to help with any questions you may have. Check out our white paper on RMR for more on the above topics as well as information on how Vanderbilt can help support your transition.