How to Position Two Video Remote Surveillance Services with Different Value Logics?

Providers serving both residential and corporate clients should apply two distinct price–value positioning strategies, shaped by the needs of their respective customer segments.
At the same time, these two service tiers—built on different value logics—should be clearly and consciously separated from a business perspective.

Below is a structured explanation of why this approach is sound and how it leads to a stable, long-term pricing and portfolio strategy.

1. Private Customers: “Less for Less” – Consciously and in a Controlled Way

This is not a mistake but a necessary compromise. What does the residential customer actually buy?Not a video system, but: “Someone will check the cameras if an alarm occurs.”

Typical Characteristics

• URL-based access
• Browser-compatible live stream
• No archive integration
• No command transmission
• No Video Management System (VMS)
• Response = dispatcher + patrol

This is perfectly sufficient for most residential customers.

When Does This Become Risky?

• If it is communicated as a premium service
• If it is delivered under the same SLA as corporate services
• If it is not clearly defined what the service is not suitable for
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Key Positioning Statement

“This is not video-based incident management, but visual confirmation in case of an alarm.”

2. Corporate Clients: “More for More” – API + VMS + Accountability

At this level we are no longer talking about monitoring but about system-level integration.

What Does the Corporate Client Actually Buy?

• Integrated event management
• Verifiable response
• Auditability
• Post-incident traceability
• Contractual accountability

And yes—this model no longer works on a simple URL basis.

The Business Advantage of an API-Based Model

• Deep integration with the remote monitoring platform
• Live + archive + snapshots + command control
• Automatable processes
• Lower human workload per event

This structurally justifies a higher monthly service fee.

3. The VMS Question: Whose Investment Is It?

This is one of the most critical business decision points.

A) The Provider Finances It (e.g. HikCentral)

Advantages

• Faster onboarding for the client
• Stronger client commitment
• Higher monthly fee (justifiable)

Risks

• Capital expenditure (CAPEX) for the provider
• Return-on-investment risk
• Customer churn risk

In this case, a minimum contractual term is essential.

B) The Client Finances It (e.g. Luxriot, Axxonsoft, HikCentral)

Advantages

• Cleaner business model
• Lower financial risk for the provider
• Easier scalability

Risks

• Higher entry barrier
• Slower sales cycle

This model works best with more mature clients.

4. Pricing Logic – What Should Be Explicitly Stated

The market often makes the mistake of applying simple “number of cameras × fixed fee” pricing. In reality, the true cost drivers are:

• depth of integration
• number of events
• archive usage
• response liability
• SLA / high availability

Therefore it is reasonable that:

• Residential package → alarm system + camera
• Corporate package → number of cameras and number of events + system integration + SLA

5. The Most Stable Long-Term Model (Summary)

Two consciously separated strategies within one portfolio:

Residential

• “Less for less” strategy
• URL-based live stream
• Strongly limited commitments
• Mass-scale, highly automated operation

Corporate / Premium

• “More for more” strategy
• API + VMS integration
• Full event management
• High availability
• Contractual liability

The key to long-term stability: Do not mix the two models in communication, SLA commitments, or pricing.