GLOBAL ELECTRONIC SECURITY FORUM
Vol. 1, No. 7 JULY 2025
Page 6
By Rory Russell, AFS Mergers & Acquisitions
With the security industry rapidly transitioning to incorporate ad-
vanced technology and home automation elements, productive new
ways to generate recurring monthly revenue have arisen for alarm
companies. By offering service upgrades and add-ons related to the
Internet of Things, security system providers can increase their profits
and business value, all while providing in-demand services to their
customers.
What is the Internet of Things?
Essentially, the Internet of Things (IoT) represents the idea that
many devices, systems and services we use in our daily lives are now
connected to the Internet. Everything from thermostats to exercise
routines can be adjusted or tracked through the use of smart technol-
ogy. Most of the products that surround us – from phones to cars to
washers and dryers – incorporate some type of smart technological
element to make our lives easier and more convenient.
Technology is advancing rapidly and consumers are no longer
simply accepting the high level of connectivity associated with the
Internet of Things – they are expecting it.
Increasing RMR with the Internet of Things (IOT)
As a result, consumers are shifting more and more away from tradi-
tional alarm systems and towards home automation, defined by the
Consumer Electronics Association (CEA) as “technology that allows
users to remotely monitor and control one or more systems in their
home including security, lighting, heating and air conditioning, audio/
video, intercom, energy and irrigation (sprinkler system).” Safety and
security features are key elements that consumers choose to incor-
porate into their home automation systems, and alarm companies
are developing and integrating the necessary technology to enable
consumers to do so.
While accommodating the Internet of Things poses a challenge for
alarm and security system companies, it also presents an opportunity
for increasing revenue. Businesses that sell traditional alarm systems
have the opportunity to incorporate additional services related to IoT
that can help them to drive up their recurring monthly revenue.
As more and more elements of the average consumer’s home
become automated, security system providers can help homeowners
manage it all. Additionally, as these technologies become increasingly
popular, many consumers will expect remote control and monitoring
capabilities to be included with any security system they purchase.
Outside the realm of residential security, there are other opportu-
nities for generating RMR with the Internet of Things. Expanding into
commercial security can be a great way to increase your company’s
recurring monthly revenue. If you’re a security business that has not
yet explored the commercial realm, now may be the time to start
exploring the chance for growth and new sources of RMR in that area.
You can learn more about pursuing commercial security RMR here.
By providing these additional monthly services to clients, alarm
companies can increase recurring monthly revenue (RMR) by aug-
menting the new profits and bolstering the overall value of the
business.
If you own a security alarm business, take a moment to consider
your current position in the industry. Do you have the resources,
knowledge and desire to take your business in this new, technological-
ly advanced direction? Can you incorporate service upgrades related
to the Internet of Things into your current offerings to drive RMR, add
value to your company and keep up with your competitors?
The answers to these questions will have a direct impact on the
sustainability of your business moving forward.
For more than 20 years, Rory has been president
and owner of Acquisition & Funding Services (AFS).
As a top alarm company broker, he specializes
in mergers, acquisitions, and financing for fire
alarm companies, security companies, integration
companies - representing over a billion dollars in
transactions. Prio to founding AFS, Rory Russell
owned and operated Empire Security, at the time
the largest regional security company in the North-
east, handling $5 million per year in sales and
installations.