Physical Security as a Service (PSaaS)
The BluBØX management and technical team spent 12 years in their previous company defining, developing and selling the “PSaaS” model to end–users in the Security Industry.
It has evolved the concept so it can be sold to end-users through the integrator channel and licensed to competitor manufacturers.
Observation: As the margin of physical security hardware continues to erode the value of physical security services remains high and even tends to increase over time.
Therefore: Provide PSaaS which consists of 7 interlocking Recurring Revenue streams instead of selling hardware.
PSaaS Strategy
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BluSKY Licenses - Software as a Service (SaaS) |
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1. Support/Maintenance Agreement |
2. HaaS - Equipment Upgrade |
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3. Supplies |
4. Digital Credentials |
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5. Managed Services |
6. Annual Increases |
BluBØX’s team spent 12 years in a previous company refining a recurring revenue model for the security industry which it has labeled PSaaS for “Physical Security as a Service”. It has evolved the concept so it can be sold to end-users through the integrator channel, and can be licensed to competitor manufacturers who wish to accelerate their entry into the market.
PSaaS acknowledges that, as the margin of security hardware continue to erode, the value of physical security services remains high and is even increasing.
The basis for the PSaaS sale is BluSKY, the cloud-based software that serves to administer the security system. Several dozen features are licensed independently, and billed as a monthly fee – (in effect a Software-as-a-Service model). But the BluSKY licenses create the foundation for 5 other types of services that are in high demand and can also be sold on the recurring revenue model to form the full PSaaS sale. They are:
1.System Support which is mandatory in the BluBØX model, and held in-place by the client’s desire for BluSKY.
2.The “Hardware as a Service” option (Haas) –whereby the client prepays for the periodic upgrading of the system hardware. This is covered in a forthcoming slide.
3.The Recurring Refreshment of Supplies (such as cards and badges); supported by BluSKY usage tracking ability.
4.The Management and sale of Digital Credentials (such as biometrics or smartphone tokens); and
5.Managed Services (such as system monitoring and administration on the client’s behalf).
There is a 6th contributor: very simply Annual Price Increases for all of the above.