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ACaaS

ACaaS and mobile access adoption growing

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Wednesday, August 15, 2018

Access-control-as-a-service (ACaaS) market revenues will increase to $950 million by 2022, and global mobile credential downloads are forecast to increase at a compound annual growth rate (CAGR) exceeding 100 percent from 2017 to 2022, according to recent findings from IHS Markit.

The London-based research firm found that small and medium-sized businesses are the leading adopters of ACaaS solutions, accounting for 21 percent of market revenues in 2017, with around 20 percent of the current installed base of access control readers will be mobile capable by 2022.

“Demand for ACaaS has grown rapidly over the past five years, and this growth is expected to continue,” Jim Dearing, senior analyst, security and building technology, IHS Markit, said in the announcement of the findings. “While there have been relatively few attempts to combine ACaaS solutions with mobile access, despite their apparent synergies, this type of integration will become more common over the next five years.”

Dearing pointed to following key benefits of integrating ACaaS and mobile access:

•    A significant segment of ACaaS end users opt for fully managed solutions. Providers of managed solutions would benefit from the ability to issue and decommission credentials remotely, allowing them to lower management costs.

•    Both mobile access and ACaaS are typically sold via subscription, or using recurring fee-based pricing models. Adding mobile credentials to an ACaaS contract would not be an issue for an integrator, and as mobile access becomes more popular in the traditional access control market, end users and installers are likely to become more familiar with the recurring-fee pricing model, which should generate additional interest in ACaaS.

•    Like ACaaS solutions, the majority of access control solutions are cloud-based. As both become more popular, end users are likely to become more comfortable deploying cloud-based security solutions.

•    ACaaS is increasing the penetration of access control systems in buildings, and many end users are owners of small and medium-sized businesses who have never owned an access control system before. This situation poses an excellent opportunity for mobile access, as providers can ensure that mobile-capable readers are installed from the outset.

In terms of overall adoption, Dearing said that, so far, early adopters of each solution are based in different industries. “Mobile access has seen its strongest adoption in the education and hospitality sectors, while ACaaS is gaining traction with small and medium-sized businesses and the property management segment,” he explained. “Due to the large number of smaller projects, a significant portion of ACaaS end users value affordability over advanced feature sets and functionality. ACaaS providers may struggle to convince end users to install readers that are mobile-capable but also more expensive.”

Despite both solutions typically being billed on a monthly or annual basis, the pricing models vary slightly, Dearing said. “ACaaS solutions are priced according to the number of doors, while mobile access is priced according to the number of credentials or users,” he noted. “Creating an intuitive but optimal pricing model for the combined solution could prove tricky for suppliers. If both original metrics are kept, suppliers are likely to encounter difficulty as end users scale their solutions.”
 

Why managed access gets adopted, why it doesn't

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Wednesday, January 7, 2015

Managed and hosted access control systems, or access control as a service "ACaaS" has been on the rise for some time now. IHS's Blake Kozak put out a research note today with some interesting ACaaS projections.

From the report: "IHS estimates that newly installed hosted and managed access control doors represented about 3 percent of the total new readers and electronic locks installed in the Americas in 2013. A total of about 80,000 doors of ACaaS were added in the region in 2013. IHS has forecast there will be about 1.8 million total doors of ACaaS in the Americas by 2018."  

ACaaS is good for end users and integrators alike, the report points out.

For integrators, it's a source of RMR and it also increases "stickiness" of accounts. For end users, outsourcing access control provisioning and permissions to an integrator removes a major hassle internally. Very important also, is that the fact that ACaas is sold as a service, so the funds come from the operating budget rather than the capital expenditure budget, making it easier for end users to "sell" internally.

However, Kozak notes that it's not always possible to fully fund ACaaS through the OpEx budget. "For example, a system with 100 doors and 400 card users would likely not use a 100% opex model. The integrator/installer will need to obtain some amount of revenue upfront."
    
Kozak also says that "Web-based panels are continuing to experience growth, potentially impacting the adoption of ACaaS."
    
IHS predicts that we'll see more hybrid systems "a mix of onsite management, monitoring and hosted infrastructure."
    
Finally, the note brings up another important topic: Big Data. A buzzword for sure, but if they can figure out how to capture and collate the data efficiently, access control data, like video data, should be in important source for advanced business intelligence in the future.

Report: Growth rate for service offerings to soar

VSaaS, ACaaS expected to enjoy some of highest growth rates in security equipment and services market during forecast period
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10/01/2014

WELLINGBOROUGH, England—The North American market for physical security equipment and services is poised to exceed $61 billion by 2018, up from $44.4 billion in revenues in 2013, according to a new report, “Physical Security Equipment & Services Report—2014,” from IHS Research, a market research firm based here.

IMS study: ACaaS offers additional revenue and penetration

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01/07/2013

AUSTIN, Texas – Access Control as a Service generates additional revenues and end-user penetration opportunities that traditional control solutions do not, according to a recent study published by IMS Research.

IMS Research clarifies the cloud

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12/04/2012

AUSTIN, Texas—A new report published by IMS Research, titled “The North American and European Markets for Access Control,” addresses some of the confusion surrounding cloud-based access control, according to an IMS statement.