MSPs are always on the hunt for lucrative offerings to add to their lineup, particularly if they bring in new monthly recurring revenue. Is offering your clients physical security services—video surveillance and access control solutions—right for you? If you don’t offer physical security, will you lose clients to competitors that do?
We talked to some MSPs who are offering physical security today. Here’s their advice on what to know before jumping in, including tips to get started and common pitfalls to avoid.
Why Offer Physical Security?
Offering physical security can increase client stickiness, says Eric M. Shorr, president of MSP Secure Future Tech.
Small and medium businesses typically lack in-house physical security teams. They’d rather outsource the function to the company that keeps their computers running. If you’re already managing a client’s IT and phone systems, it makes sense to address the need for physical security. “It’s another tool in the MSP tool bag,” Shorr says.
While MSPs are more comfortable with cybersecurity technologies, integration of cyber platforms with physical security tools is increasingly common.
For MSP Responsive Technology Partners, physical security aligns with a commitment to address evolving customer needs by integrating physical security with IT requirements, says Andrew Greenway, vice president, Florida.
“The demand for integrated security solutions is steadily increasing. Customers are seeking comprehensive solutions that address their evolving security needs,” he says. Typically, the service is delivered as a managed offering.
Integrated solutions, he adds, address heightened security concerns resulting from a rise in cyberthreats and physical security breaches. And the remote work trend creates a need for robust access and security solutions for a distributed workforce. “Integrated systems offer improved operational efficiency, streamlined access control, and enhanced data analytics,” Greenway says.
The Physical Security Market Opportunity
Physical security is a flourishing business. The market is growing at about 7% annually, on track to exceed $200 billion in 2030, and creating ample opportunities for MSPs to add a new revenue stream.
Driving the growth are various factors, including the need to protect critical assets, advanced analytics, and more sophisticated access control and video surveillance, according to Grand View Research.
As with cybersecurity offerings, MSPs can turn physical security into monthly revenue streams. After the initial hardware and monitoring software installation, providers can continue delivering ongoing support, managing systems remotely for customers. Some systems are getting highly sophisticated, featuring intelligent cameras that, for instance, distinguish between pets and intruders, and integrating functionality with point-of-sale (POS) systems and biometrics-driven access control.
What Physical Security Solutions Should Your MSP Offer?
Physical security isn’t what it used to be, thanks to innovations delivered by artificial intelligence and the Internet of Things. Responsive Technology Partners provides an array of services, from access control solutions with biometrics or card entry, to camera surveillance systems with facial recognition, to integrated, multifunction solutions.
Integrated offerings, says Greenway, seamlessly combine physical security with IT infrastructure for access control, video surveillance, fleet management, and other security systems through a centralized, multisite management platform. Among other services, the MSP offers real-time monitoring of live video feeds, advanced analytics with facial recognition, object detection and heat mapping, and POS integration.
Secure Future Tech, for its part, delivers video surveillance systems and services to 135 clients, including property management companies, housing authorities, and school districts. The company got into the space when a property management company expressed a need for better video surveillance. Rather than let the customer find a solution elsewhere, Shorr says he opted to research available technologies and how to implement them.
Getting Started
Initially, Secure Future Tech worked with a partner to deliver physical security solutions, says Shorr. “We knew very little about this space, so we partnered with another vendor to do the physical installations.”
Eventually, the MSP acquired enough knowledge to create an in-house team. Technicians got training on how to install surveillance equipment and low-voltage cabling. Jurisdictions such as Rhode Island, where the company is based, require licenses for this type of work. Secure Future Tech still uses subcontractors, but only for bigger jobs.
Responsive Technology Partners leverages a combination of in-house expertise and strategic partnerships to deliver implementation, maintenance, and support, says Greenway. “Our team undergoes continuous training and certification to stay abreast of the latest technologies and best practices.”
Both Greenway and Shorr recommend working with partners to get started in the space. Greenway suggests launching a small pilot program to test processes and gain experience, keeping the focus on customer needs to tailor solutions accordingly.
Shorr says it’s a good idea to install a solution in-house before taking it to customers so you can learn and work out the kinks. “When you are trying out any new technology, you need to use it internally first. Don’t have your client be the guinea pig. That doesn’t work out very well.”
Mistakes to Avoid
As with any other fledgling business venture, it’s easy to make mistakes when getting into physical security. Shorr learned the hard way that licenses are required for installation work. It cost the company $1,500, but he looked at it as a learning experience and got licensed.
Greenway warns against underestimating project complexity, neglecting ongoing maintenance, and overpromising to customers. “Clearly communicate the capabilities and limitations of the solutions to avoid unrealistic expectations,” he says.
As for pricing and margins, both Greenway and Shorr say they vary according to project. “Pricing is determined on a case-by-case basis, considering factors such as the scope of the project, the complexity of the system, and the client’s specific requirements,” Greenway says.” Margins vary depending on the offering.”
Shorr points out plenty of low-cost solutions are available, but they may not fully address client needs. Avoid that temptation and, as with other managed service offerings, focus on delivering quality and value.
For more on ways to expand your service offerings, check out Looking For High-Margin, Recurring Revenue Offerings? Try VoIP
