sounds interested. A few of questions. You reference security monitoring as the RMR model. Are you going to offer/include security monitoring as a one stop shop? Also any plans to expand to other non Snap products for those of us that on occasion don’t use their products? And finally is the self service app dealer branded? Kinda like the OvrC Home client app?
Hi Jason….. Good introduction of the new Parasol venture.
A short article like this cannot display all of the Parasol RMR business model, so maybe a followup article. We are missing an important part…. what do you do for the RMR. You are monitoring what, to do what? I went to the website, but not the answers.
Several days ago, we posted a related comment with the IPVM Discussion Group. Excerpts are cut/paste here because Parasol could get some blowback. Is Parasol in the same space?
Really big deal worth watching and planning:
The licensed remote monitoring segment of the alarm industry is still highly fragmented, leaderless, and functioning in conflict with public safety. This status was reinforced by recent Newsletter debates among leading providers of hardware, software, services, responsibilities… and arrogance. Their ageing business model (with added bells and whistles) assumes local police will jump, on-demand, whenever they call for help, for whatever reason. Which provides justification for law enforcement to exit from the aging “public/private partnership”… ie. treat monitored deterrent property alarms like nuisance auto alarms.
Local cops are focused on UPR “Unnecessary Police Response”, while monitoring firms are still focused on management of “Alarm Signals & False Alarms”… very different problems/solutions. And the recent ADT/Apollo IPO has forced lots of uncomfortable “disclosure”. The basic business model is broken and needs to be replaced, not just tweaked or repaired (Near 99% error/false = 8-15 % police budgets). The cops will win this tug-o-war!!
Firms in this space include ADT; Lydia/dba COPS; Rapid Response; EM24; Monitronics/Moni; (2000 more); about 20 Million monitored customers that produce about $600 Million RMR with market value about $20 Billion. This could dilute the market value of RMR by several $Billion … a really big deal worth watching and planning if you are a player in this space. .
Source: Lee Jones; Support Services Group; email@example.com
Great questions! Check out http://www.getparasol.com/product-information/ and the Sample Dealer Sell Sheet to find out more about what Parasol can monitor and support. We are not in the security system monitoring business. OvrC supports hundreds of products from many different manufacturers. Do you have to use all OvrC enabled brands with Parasol? No. Keep in mind the more visibility Parasol has into your installations, the better the client experience. Think of Parasol as better with OvrC-enabled products, but we welcome myriad products into the mix. What’s the common thread? Great Parasol dealers are willing to participate in standardizing their installations and labeling outlets, etc. using consistent language. All of these lessons we’ve learned inside our own integration businesses first.
I’m trying to figure out the math.
I say this because I cannot see how this covers the costs of a full time 24/7 staff with enough bandwidth to handle ‘hundreds’ of clients.
I know Henry is a business guy so I am sure all of this has been thought through.
Maybe you could shed more light on it?
Thanks for your question about Parasol’s revenue model! We studied our costs to serve clients very closely and arrived at a price point which is profitable for the integrator, affordable for the homeowner and sustainable for Parasol’s long term growth.