Electronic security-as-a-service (E-SaaS), which is a remotely managed, cloud-based security service, is emerging a lucrative opportunity for traditional vendors of security and surveillance systems to cash in on a fast growing ₹500 crore market.

One of the major players, Zicom Electronic Security Systems Ltd, which launched the service 18 months ago, now expects to more than double its revenue growth this fiscal. The entire market itself is poised to touch ₹750 crore by 2016, as estimated by consultancy firm, Deloitte.

Pramoud Rao, Managing Director of Zicom, expects revenues from the company’s E-SaaS offering that garnered ₹18 crore in FY 2014 to more than double to ₹50 crore in the current fiscal. “BFSI contributes to 70 per cent of our E-SaaS revenue and retail contributes the rest. BFSI will continue to be a major contributor in FY 2015, fuelled by demand for attendance systems, ATM security, intruder alarm monitoring, fire alarm monitoring and CCTV monitoring” said Rao.

Zicom has some 12,000 customers across the country on a recurring monthly revenue model ranging from ₹500 for basic alarm systems to ₹50,000 for comprehensive security solutions.

Silvan Innovation Labs, which operates in the security and home automation markets, is gearing up to launch its E-SaaS solutions in three hubs across the country – West (Mumbai and Pune), South (Bangalore and Chennai), North (Delhi and NCR). “We look at E-SaaS as an opportunity beyond just security,” said Avinash Gautam, CEO, Silvan.

Elaborating, he said “a whole gamut of opportunities exist wherein cloud enabled solutions are needed for security, sensing, analytics and controls.

These could include homes, retail outlets, ATM chains, distributed commercial buildings etc. The over-riding value being asked for in various applications could be different – ranging from security, energy optimization, operational efficiency, business intelligence, to name a few.” Silvan is currently piloting its cloud enabled IPSM (Integrated Property Service Manager) technology platform in Bangalore and will partner with Systems Integrators for installation of systems.

Rahul Gupta, Managing Director of Smile Security and Surveillance Pvt Ltd, told Business Line that the company launched its hosted video surveillance business in collaboration with Iveda Solutions six months ago which is in great demand by logistics firms, restaurants, café chains, public transit stations etc.

“Our unique hosted video surveillance comes with tight security where the video travels over a secure VPN (virtual private network) which we have been exporting to customers in the US and Taiwan since the last two years,” he said. The company charges ₹350–600 per camera per month.

Godrej, another player in the security equipment and solutions space, is yet to enter the E-SaaS fray, but is currently in the process of offering a hire and lease model to banks to take care of physical and electronic security requirements.

Related Topics