Dependency or Opportunity? – Extended Edition

Some remote monitoring service providers are concerned that developing a strong dependency on their supplier may increase their exposure to risk.

A perfect example of this is MOHAnet, a Hungarian company that develops and manufactures GSM signaling devices and remote monitoring systems. The company has been a technology supplier for over 90 remote monitoring providers for 19 years, yet there are still a few players in the market who remain cautious. According to its business model, MOHAnet sells the GSM signaling devices for a one-time fee, while the system components necessary for operation are provided on a subscription basis for a monthly service fee.

Small and medium-sized remote monitoring companies are generally less worried about supplier dependency and more concerned about their limited financial resources, which may prevent them from implementing the best and most modern remote monitoring technology available. The professional remote monitoring system developed by MOHAnet includes all components—such as a dedicated cloud server, encrypted virtual private network, web-based device configuration software, web-based remote monitoring software platform, mobile remote monitoring application, SIM card, and related data plan—which can be accessed through a subscription model with usage-based pricing and no initial investment.

To avoid dependency and continuous operational costs, some service providers—if financially able—prefer a one-time investment. This choice is intended to reduce risk exposure and avoid recurring monthly fees. However, this is an illusion in both respects. The idea of owning all resources independently to reduce dependency is no longer viable. Electricity, gas, or fuel all represent unavoidable dependencies for any business, not to mention increasing taxes. Finding and retaining qualified personnel also presents a serious challenge and rising costs. A fixed monthly service fee for secure and uninterrupted operation is more of a relief than a burden for providers—especially when they themselves generate revenue based on monthly service fees. In independent operation, labor costs, ongoing training, proper workload utilization, and availability of staff all further complicate the provider’s operations. Many of these costs are unpredictable and require contingency funds—something not necessary in a subscription model.

Businesses with fewer financial resources can only make decisions based on their available budget, striving to find the best solution within their means—even if it creates dependency. By continuously developing, maintaining, operating, and monitoring the remote monitoring system and its related infrastructure on behalf of service providers, MOHAnet spares them from many expenses and unexpected situations. For those providers who view subscription-based collaboration as a dependency rather than a competitive advantage, MOHAnet also offers the option to purchase the entire system outright. In this case, however, remote monitoring providers must plan for the tasks and costs mentioned above. These days, it is rare for a company to invest in everything itself, but MOHAnet is open to such business collaborations and has a business model tailored for this as well.

MOHAnet’s subscription-based business model serves two primary purposes.

One aim is to ensure that establishing and operating a professional remote monitoring system is not a privilege reserved only for those with the financial means for implementation. It is crucial that every remote monitoring business can access the most modern technology system without initial investment—enabling them to operate securely with high availability. Through this approach, MOHAnet helps remote monitoring businesses grow quickly and make better use of their resources. This allows providers to focus more on customer acquisition, which generates revenue for them, while outsourcing system operation also reduces costs.

The second aim is the sustainable development of the remote monitoring market, which requires the continuous sharing of different capabilities and resources among market participants. This is the key to both growth and survival. MOHAnet contributes its hardware and software development capabilities, nearly 20 years of experience in operating remote monitoring systems, and its intermediary role—facilitating close cooperation among MOHAnet partners for shared monitoring, dispatcher services, or even simple professional knowledge exchange.

In summary, the fear of risk exposure due to dependency is not entirely unfounded for a remote monitoring service provider. However, it is a serious misconception to project this concern onto just one area, because in reality, we are all dependent on something or someone in every aspect of life—be it politics, the economic or legal environment, or even deviant human behavior.

When we aim for independence, we also choose to rely solely on ourselves in every area. The boundaries between various related fields are blurred, but when a problem arises, the search for a responsible party begins—and remediation is attempted based on competence. The only question is whether we can always manage the situation and solve the problem. When a provider sources the GSM devices, SIM cards and data plans, server, remote monitoring software, and other related components from different suppliers, responsibility becomes fragmented. As we’ve long known, a chain is only as strong as its weakest link. In the event of a major malfunction, finger-pointing and blame-shifting may occur among suppliers, as each is only responsible for their specific component. The real issue is that in such cases, the client becomes lost in the maze of suppliers and their communication. It takes a very capable person to make the right decision in such a situation.

Does this kind of dependency seem less realistic to a service provider? Those who’ve been in similar situations know there is nothing worse than a problem with no clear owner. That’s precisely why this kind of risk exposure must also be addressed—because the fear behind it is valid. Subscription-based service models provide reassuring answers to these concerns. There’s no finger-pointing—any problem clearly falls under the responsibility of the service provider. Would you pay a monthly flat fee for a service that’s not reliable?