In recent decades, it’s become clear that cloud-based access control systems represent the future of security management. These solutions offer significant upsides over traditional, on-premise systems, including improved efficiency, flexibility, and advanced security features. The increasing role of these solutions has also presented an exciting opportunity for integrators to improve their service offerings and scale their businesses. This article is a comprehensive guide for businesses, ranging from locksmiths to gate operators and full-systems integrators, on the unlimited potential of cloud-based platforms like PDK and how to capitalize on it.
What is Cloud-Based Access Control?
Cloud-based access control systems like ProdataKey (PDK) play a critical role in the security of a wide range of organizations. They replace mechanical locks and keys, allowing organizations to effectively manage access to their properties and monitor activity from a centralized platform. Unlike traditional systems, which typically require on-premise servers, system-specific computers, and dedicated IT teams, solutions like PDK are hosted through the cloud.
Cloud-hosted solutions directly address the shortcomings of traditional systems. They offer features accessible to major enterprises and small businesses alike, including remote management, real-time monitoring, and convenient mobile access. Another major advantage is automatic updates. The PDK.io platform updates automatically as new features and security enhancements become available without having to roll a service truck. As new security threats emerge, PDK can quickly push updates, giving new peace of mind to end-users. This is a stark contrast from on-premise solutions, which require on-site manual updates and often require full hardware replacement every five years.
Market Opportunities with Cloud-Based Access Control
The market for cloud-based access control is essentially unlimited, driven by rising security concerns, quickly evolving technology, and a growing need for flexible, streamlined solutions. As mentioned before, it’s not just enterprise-level organizations that have access to these kinds of solutions. Small organizations, too, with as few as one entry point, are investing in solutions like PDK to revamp their security and management processes.
“Access control has its place in every vertical market,”
explained Corey Cleghorn, owner of Proguard Technologies. Industries such as healthcare, education, multi-dwelling residential complexes, and manufacturing, in particular, have had a rising demand for cloud-based access control for both new builds and retrofits. Security businesses have the opportunity to tap into these growing markets and, or find their own niche.
Benefits of Cloud-Based Access Control for Security Businesses
Efficiency and Cost Savings
By adding cloud-based systems to their service offerings, security integrators can improve the efficiency of their business and find extensive cost savings. First, ProdataKey streamlines the installation process with early configuration and mobile programming. Integrators have the ability to upload user databases and pre program rules before physically installing hardware to save time on-site and secure bids earlier on in the selling process.
Once the physical installation begins, integrators can use the ProdataKey mobile app to automatically discover new access controllers without having to use an on-site computer. Integrators simply use their mobile device to adopt new devices, name them, and conduct live tests as they walk around the site, saving significant time and hassle. Moreover, all of the preconfigured settings are automatically applied to the system.
Second, integrators can remotely manage and troubleshoot cloud-based systems, leading to reduced workloads, improved customer service, and more time to acquire new projects. Integrators can remotely manage all of their customer accounts from one centralized, easy-to-use interface. They can add new users, create groups and schedules, and run real-time activity reports from any web-connected device to instantly implement changes without making a service call.
ProdataKey also saves integrators time with the comprehensive System and Health dashboard. The dashboard lists detailed information and sync statuses of devices across locations, ensuring complete visibility and swift responses to any system disruption or network failure. In some cases, integrators can even use the ‘Restart Controller’ feature to get systems back up and running. These remote capabilities are critical to security businesses, especially those with smaller teams. Marshall Merrit, owner of MK Consulting, pointed out,
“We actually spend more time doing new installs than we do service calls or anything else.”
The efficiency found by partnering with cloud-based solutions like PDK gives integrators new potential to grow their businesses.
Scalability and Flexibility
As organizations grow and their security needs evolve, ProdataKey systems scale seamlessly to accommodate added doors, users, and new locations. This flexibility is necessary for security integrators to be able to service customers with expanding needs or multiple sites. Part of this flexibility lies in PDK’s diverse hardware lineup, featuring 1-8 door controllers, expansion boards, and WiMac™ and PoE++ options to deliver value-driven solutions for any application.
“There are a number of ways to work within the customer’s parameters to help them accomplish the goal of providing a safe(er) environment for people and assets. ProdataKey offers a myriad of door controllers to precisely fit the customer’s current needs or provide them with expandability beyond the initial deployment,” said Mike “JR” Andrews, PDK Regional Sales Manager.
The other aspect of PDK’s scalability is the system’s robust yet easy-to-navigate platform. Through PDK.io or the ProdataKey mobile app, integrators and system administrators can effortlessly manage one to hundreds of individual locations attached to a customer account.
“It’s really an opportunity for our partners to grow with a business. It would be easy for a dealer to extend one customer to add multiple locations as their needs expand,”
explained PDK’s VP of Product, Brad Baldwin. By partnering with PDK, security businesses have the potential to grow as their customers do and handle projects larger than ever before.
Recurring Revenue
One of the biggest advantages of adding cloud-based access control to a business’ offerings is the new opportunity to generate recurring monthly revenue (RMR). Before the introduction of the cloud, traditionally, access control had involved a one-time installation fee along with routine on-site maintenance, requiring businesses to actively seek out new customers to remain profitable. ProdataKey and other cloud-based solutions operate on a subscription model for hosting services, offering a steady stream of income and a way to maintain strong customer relationships.
“Transitioning to hosted solutions that provide recurring monthly revenue promotes a healthier overall business. No one wants to rely on the next contract to meet payroll and overhead expenses. Consistent monthly revenue from hosted services stabilize business cash flow and remove the stress of soft sales periods or economic swings,” said Evan Tree, ProdataKey President & CEO.
Integrators can count on a steady revenue stream that continues to compound with every added customer account, exponentially boosting the company’s value and financial stability. During the COVID-19 pandemic, for example, many security businesses survived on cloud-hosting payments alone despite not being able to install new systems. Moreover, the ongoing services associated with cloud-based access control help build customer connections and encourage repeat business or referrals.
Building Your Business Model
Identifying Your Niche and Target Market
Many security integration businesses have found success focusing on specific industries or customer segments. As discussed earlier, access control has a place in every vertical market, but identifying a specific sector may be a helpful strategy in building a security business around cloud solutions. Adding cloud access control may even fit seamlessly with your existing customer base. Narrowing down a sector is also an effective way to start fine-tuning how you design systems, adhering to industry-specific codes and other requirements, especially if new to the access control scene.
For example, Granite State Gate, based in Dover, NH, transformed its business by partnering with PDK, focusing on small storage facilities and campgrounds. Bryan Aube, head technician, shared, “We’ve been installing PDK systems for the past three and half years now, and it's been a game changer.” Though the company operates with a smaller team, they were able to tap into this niche market with PDK’s user-friendly features and remote management capabilities, all while driving the value of their business with recurring revenue.
“PDK, it just integrates perfectly with what we do,”
Bryan added.
Selling the Value of the Cloud
Before the introduction of cloud solutions, customers were used to paying for a one-time installation cost for access control. Because of cloud technology’s relatively recent development, selling end-users on a subscription-based model can, in some cases, be a hurdle; however, by developing a solid value proposition, integrators can address these apprehensions.
It’s important to highlight the unique benefits and features of cloud-based solutions that on-premise systems simply can’t bring to the table.
“To really sell cloud-based solutions well, integrators have to fully understand and believe in the products and benefits they provide to end-users. Becoming a leader in hosted security solutions requires complete buy-in and understanding of their incredible value and stability,”
Evan Tree explained, “These solutions are the way modern businesses run these days, and customers want to work with the best-in-class integrators that know how to tailor a solution to their needs.”
Creating Service Packages and Building RMR
Security integrators can create customized service packages and build their recurring revenue by combining strong product knowledge and maximizing the capabilities of PDK beyond simply securing access. First, in the initial bidding process, it’s critical to ask the right discovery questions to create a solution that aligns with their priorities. For example, integrators can offer add-ons like PDK Red™ Bluetooth-enabled readers, advanced reporting plans, and specific integrations depending on the application. Another strategy is to provide ongoing support through maintenance agreements, extended warranties, and leasing options to make subscription fees more reasonable to customers, effectively presenting these costs as part of the service rather than additional expenses.
Getting Started with Cloud-Based Access Control
Transitioning from On-Premise to the Cloud
Evan Tree offered advice to security owners hesitant to transition to cloud solutions, “It is sometimes difficult to invest the time and effort into new advanced security products when legacy on-prem systems have been on a security integrator's line card for many years. It's easier to go with what you know instead of getting trained and certified on new more advanced systems...
"However, recognizing market dynamics and changes will be required to survive in our new, always connected world.”
Becoming proficient with current on-premise solutions typically takes months of training. In contrast, solutions like ProdataKey are intuitive and much easier to learn and manage. Technical and sales certifications take just a few hours, and most end-users need little to no training to start managing their system.
Finding a Distributor
Choosing the right distributor is essential for security integrators who want to deliver excellent solutions and services to their clients. It's essential to consider factors such as the distributor's location, which can help avoid shipping delays by allowing quick pick-ups. Seeking out competitive pricing can also save costs, which you can pass on to your customers. Today, distributors are differentiating themselves by offering more than simply supplying. Look for a partner that offers extra services, like free shipping or extended warranties, to add more value. Lastly, building a strong relationship with your distributor can provide crucial support and reflect well on your business.
Conclusion
In conclusion, transitioning to cloud-based access control systems is a significant opportunity for security integrators to enhance their service offerings, improve efficiency, and generate recurring revenue. By leveraging the technology of solutions like ProdataKey, integrators can not only meet the growing security needs of their clients but also revamp their business model. Embracing cloud technology isn’t just about meeting customers where they are; it’s about staying ahead and positioning yourself for success in our ever-evolving world.
PDK is a team of security integrators with decades of hands-on, in-the-field experience. PDK believes that the best technology is created by professionals who know what it takes to secure a facility properly and provide the end-user with a solution that instills confidence and safety.
PDK is passionate about creating technology to enhance the security, safety, and overall experience of both the professionals installing electronic access control and those that live with and use the system. PDK continues to create technology every day to enhance its products and the products of its technology partners.
