If Your Security Guard Software Is Charging By The Device, Just Say No!

As a business owner, you know cash flow is key for your growing organization, and you’re always looking for ways to get the most value. And one way owners of growing security firms have sought value is with per-device — also known as per-user or per-seat — pricing for security guard software, with the thinking that the format will allow for scale as their company grows. Under this pricing model, your company pays for the number of “seats” or devices, such as company-issued smartphones, that can access the software; the more devices, the higher the cost.

The problem is, once you look into per-device pricing for report management and how it plays out over time, it becomes clear that it’s an outdated way of doing business that can end up costing your company more than it should. And the industry is responding: Global consulting firm Gartner says customers are driving demand for cloud-based software-as-a-service models that offer concurrent and pay-as-you-go licenses, rather than older IT services that might rely on per-user models. Gartner predicts that more than 80 percent of vendors will switch to subscriptions by 2020.

Here is a review of several reasons why the per-device pricing model is off-target for your firm’s security guard software.

It Creates Budget Uncertainty

When you’re focused on cash flow, you need a clear idea of where your money is going every month. Being able to map your money months in advance makes it possible to set more accurate budgets, determine the right time to hire and bid more competitively on contracts.

The problem is, when you’re paying for software use per device, it can be hard to pinpoint what you’ll be paying after months of growth. If you’re faced with a raft of quick hires and suddenly have to pay for more users than you budgeted for, the financial squeeze might be too much to bear, even if it’s short term. A cloud-based software service is much more consistent and makes it easier to forecast your cash flow each month.

Example of Security Guard Software Pricing

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It Is Financially Inefficient

As the owner of a growing security business, chances are you serve as an officer yourself on occasion. Because per-device models often make you pay for both administrator and user accounts, you’ll in effect have to pay twice to use the software.

This just doesn’t make financial sense. If you’re having to decide between hiring another officer or paying for multiple accounts, you’re going to lose one way or the other.

It Is An Administrative Headache

Business growth is a good thing, but it can raise challenges beyond financial concerns if you’re on a per-device pricing contract. As you grow, you’ll need to add more devices — and every time you do you’ll have to create new permissions and policies. You’ll also spend time going back and forth with your vendor to get the contract updated.

Some companies try a bring-your-own-device (BYOD) option to pass along registration issues to employees, but that’s not a solution either. If an officer’s phone is lost or stolen when they’re off the job, the user account is lost because the software “lives” on the device, and another must be purchased.

It Limits Productivity

Productivity is what makes your company money — if people don’t work, you don’t get paid. When you have only a certain number of user permissions on a software platform, that means only so many people can access the technology at any given time. If you want your company to grow, they need to be able to access tech tools when they need them.

Your security firm relies on accurate, timely reports, and technology has made reporting easier than ever before. Just make sure you’re choosing technology that best fits your business. Chances are that the best option is a cloud-based subscription model rather than a per-device one.

What kinds of pricing models for security guard software do you tend to favor at your security firm?  Please feel free to leave your comments below.

 

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By Chai Nguyen
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