Can the channel win big deals in the physical security sector?

The UK Physical Security System Services market consists of 2,203 businesses, employing over ten thousand employees, generating £1.4bn in revenue and with an annual growth of 11.8%.

The impending ISDN/PSTN switch-off is an especially compelling event in this sector because it effects almost every monitored device in the UK. Anyone involved in physical security is planning to upgrade to IP, either via a fixed connection or mobile data. Mobile data features disproportionately in this sector because for millions of devices an upgrade to a fixed connection represents a significant increase in cost.

Thousands of resellers and MSPs still don’t have a mobile data proposition and are therefore unable to offer a one-stop solution to their customers in the security sector, amongst others. Early-movers who have partnered with a mobile data aggregator have been surprised at the margins achievable. This is because independent channel-only aggregators are able to provide differentiated products, like un-steered multinet SIMs and preconfigured specialist hardware, that the MNOs don’t offer. They have also found the products relatively easy to sell, deliver and support and, with book-to-bill times of only a few days sometimes, revenues flow quickly.

Andrew Dickinson, CEO Jola commented, There is high demand for mobile data from customers in the security sector. For resellers it is an easy product to sell, provision, support and bill and if you get it right, you will quickly generate high-margin recurring revenue. Financial markets attribute higher EBITDA multiples to IoT/M2M so including it in your portfolio, increases the overall value of your enterprise. Jola partners have beaten the MNOs directly to win very large SIM deals from well-known logos in the security market. We have unique solutions with both network and device security built-in, protecting users from both DDOS attacks and hackers.”