classic | mobile
Follow us on:
Follow us on Facebook  Share via Twitter  Share via LinkedIn
 

Search...
Hi-Tech Security Solutions Business Directory
Residential Estate Security Handbook 2018


Managed services or rats in a trap
April 2017, CCTV, Surveillance & Remote Monitoring, Asset Management, EAS, RFID, Security Services & Risk Management

Managed services are the bomb. Or at least it seems so: your operational expenditure is capped at a specific amount for a certain number of years and you get an all-singing-and-dancing security solution that your integrator/service provider takes care of. All you do is pay the bill and enjoy the service.

But does it really work that way? The idea is a good one for integrators looking for annuity income over the long term, but is it the best deal for the client? It’s probably in everyone’s best interest to pay a set amount per month (or annually), knowing what the cost is way in advance than to have to pay a lump sum for a surveillance project and then have the hassles of maintaining it and getting the service you want from your suppliers. But what are the pitfalls?

Hi-Tech Security Solutions asked Bernard Senekal, MD of Naxian, about the benefits of managed services.

“Typically, these type of contracts are capped at a specific monthly rate with a clearly identified scope of which activities in the maintenance and service level agreements are included, and which will incur ad hoc charges,” explains Senekal. “In many cases these contracts make provision for an annual increase based on either an agreed percentage or inflation. The customers benefit because the cost of ownership of the investment is kept inline against approved budgets and without nasty surprises.”

The right deal?

From the integrator perspective this can also be a good deal, but not always. Any person who has been on the service side of the security industry knows that, while an annuity income is great, there is always the potential for a customer who is never happy to upset the applecart. Moreover, sometimes the technology one chooses refuses to cooperate and, in either case, the integrator spends far too much time sending people to site, fixing and replacing technology, to the extent that the whole contract becomes a loss-making exercise.

While this is always a possibility, Senekal says most integrators use well-known products that have proven their reliability over time and they have the experience not to play the margin cutting game which will see them making a loss. “The true test on whether an integrator runs back and forth to sites is in the quality of the installation and the associated infrastructure, as well as the policies created at system level to ensure that system users are not enabled to ‘break’ the system.

“In our experience, the best strategy in keeping demanding clients happy is to ensure that client relationship management forms a big part of the overall strategy. Moreover, the SI (systems integrator) must also make sure they have the system tools that allow them to act in a preventative instead of reactive way to system health issues.”

Breaking the chains

In the real world, despite everyone’s best intentions, sometimes deals go sour and one of the parties involved (or more) want to end the contract. This in itself is a major undertaking as some parties may be happy with the way the contract is running. It is therefore a critical aspect of any managed services deal that the requirements and responsibilities of all parties are spelled out in detail in the contract, as well as the mechanisms for its termination.

Regardless of the terms and conditions of the contract, Senekal believes the shortfall in terms of these contracts are typically based on the fact that there is no performance management against actual statistics related to the health and general uptime of the systems.

“If you cannot accurately measure this, then how can you have a strong contract that is

fair to both parties? This is the Achilles Heel and what I believe forms part of what Naxian is bringing to the broader security market

as a solution.”

“While managed services contracts increase revenue for integrators, they also lead to a similar growth curve in expenses. Essentially, the more sites you need to service, the more technical resources, vehicles and associated costs you will have.

“At Naxian we have a Smart Services Platform that is built specifically around this pain point and ensures that SIs drastically reduce their cost of servicing sites, thereby enhancing overall net profits and changing the shape/enterprise value of their businesses for the better. We will be launching articles in Hi-Tech Security Solutions on our Smart Services Platform over the coming months.”

For more information contact Naxian, bernard@naxian.co.za, www.naxian.co.za, +27 (0)87 820 0620


  Share via Twitter   Share via LinkedIn      

Further reading:

  • Significant differences in ­perceptions on state of digital trust
    November 2018, CA Southern Africa, Access Control & Identity Management, Security Services & Risk Management
    Nearly half of businesses admit to selling customer data, despite claiming data ­protection as paramount; consumer behaviour shows strong correlation between loss of business and lack of digital trust.
  • Panasonic’s Face Recognition Server
    November 2018, Panasonic South Africa, Access Control & Identity Management, CCTV, Surveillance & Remote Monitoring, Products
    Panasonic has adopted deep learning technology in its face recognition products that overcomes the difficulties of conventional technologies.
  • Your face tells a story
    November 2018, Technews Publishing, Access Control & Identity Management, CCTV, Surveillance & Remote Monitoring, Government and Parastatal (Industry)
    Facial recognition has advanced to the point where it can be rolled out over large areas and accuracy is no longer a hit-and-miss affair.
  • They sure don’t make them like they used to
    November 2018, Technews Publishing, Access Control & Identity Management, CCTV, Surveillance & Remote Monitoring, Integrated Solutions
    The latest offerings in the market with respect to doorbells and intercoms, and what functionality they offer.
  • Video-based parking management
    November 2018, Access Control & Identity Management, CCTV, Surveillance & Remote Monitoring, Integrated Solutions
    Using surveillance video for vehicle counting improves parking management at an attractive cost and limited installation hassles.
  • Identifying good visitor management practices
    November 2018, Excellent ID, Access Control & Identity Management, Asset Management, EAS, RFID
    There are a number of factors that security managers need to consider when implementing visitor management and access control protocols.
  • Reliability a fundamental in visitor management
    November 2018, Powell Tronics, Access Control & Identity Management, Integrated Solutions, Security Services & Risk Management
    With the rapid evolution of biometric technology, there are many options available in the marketplace that promise varying levels of performance.
  • Integrated security and event management
    November 2018, Johnson Controls, Access Control & Identity Management, CCTV, Surveillance & Remote Monitoring, Integrated Solutions
    High-end central London multi-zone development chooses Tyco Security Products’ C•CURE 9000 Security and Event Management system.
  • Hospital adopts integrated solution
    November 2018, Bosch Building Technologies, Access Control & Identity Management, CCTV, Surveillance & Remote Monitoring, Fire & Safety, Integrated Solutions, Healthcare (Industry)
    Adana sets the standard for patient safety in a system marked by low overall cost of ownership, maintenance costs, and failure rate.
  • Optimal selection of CCTV operators
    November 2018, Leaderware, This Week's Editor's Pick, CCTV, Surveillance & Remote Monitoring, Security Services & Risk Management
    Technology is often seen as the primary factor in the success of CCTV surveillance control rooms, yet Dr Craig Donald has seen new control rooms with the most up-to-date technology fail.
  • How close has video analytics grown to AI?
    November 2018, Technews Publishing, CCTV, Surveillance & Remote Monitoring, Cyber Security, Integrated Solutions
    Hi-Tech Security Solutions asks how far artificial intelligence has changed the video analytics market and how it will make an impact in future.
  • The latest X-ray scanning solutions
    November 2018, Technews Publishing, Asset Management, EAS, RFID, Security Services & Risk Management
    Hi-Tech Security Solutions asked three suppliers of X-ray scanning equipment for some insights into the latest products and their safety.

 
 
         
Contact:
Technews Publishing (Pty) Ltd
1st Floor, Stabilitas House
265 Kent Ave, Randburg, 2194
South Africa
Publications by Technews
Dataweek Electronics & Communications Technology
Electronic Buyers Guide (EBG)

Hi-Tech Security Solutions
Hi-Tech Security Business Directory (HSBD)

Motion Control in Southern Africa
Motion Control Buyers’ Guide (MCBG)

South African Instrumentation & Control
South African Instrumentation & Control Buyers’ Guide (IBG)
Other
Terms & conditions of use, including privacy policy
PAIA Manual
         
    Mobile | Classic

Copyright © Technews Publishing (Pty) Ltd. All rights reserved.