How Selling VSaaS Drives Business Growth

Video surveillance as a service (VSaaS) is revolutionizing the way video security is offered to businesses everywhere. By choosing an advanced VSaaS solution, you’ll be able to provide a more complete system that benefits both you and your customers. The US market for VSaaS is projected to grow at a compounded annual rate of 25.7 percent through 2028, significantly outpacing the total video surveillance market, which is expected to grow at a rate of only 10 percent annually. 

In this article, we’ll define and analyze traditional and VSaaS pricing models, as well as explore the many advantages of VSaaS. 

What is Video Surveillance as a Service (VSaaS)? 

VSaaS has several key differences in how its pricing works in contrast to traditional models. We’ll explore both below to determine how VSaaS is ultimately a better solution for end users and partners. 

VSaaS Defined 

As a subscription-based model, VSaaS provides customers with continuous access to an advanced and ever-improving video surveillance platform. 

Revenue is generated recurringly from subscriptions that auto-renew on a monthly/yearly basis. As opposed to a single up-front payment, you’ll create a continuous income stream. Subscriptions are offered per video channel, allowing greater scalability for your customers to ensure their needs are met today and tomorrow. 

One of the key advantages of the VSaaS model is its ability to address customer expectations for ongoing service. When customers pay monthly, they expect consistent value and improvements, unlike traditional video surveillance models. VSaaS solves this by delivering continuous updates and features, ensuring they are supported and engaged. This ongoing service model not only meets customer needs but also drives higher customer retention, creating a win-win scenario for both you and your customers. 

Traditional Models Defined 

Traditional pricing models involve a one-time fee from customers. After that single payment, they then own their solution and can use the video surveillance software perpetually. 

With this model, revenue is generated project-by-project and can therefore be inconsistent. Additionally, due to the one-time purchase, there tends to be higher upfront costs, which can be a significant barrier to entry for customers. While access to the solution is perpetual, the traditional model does involve a larger initial investment from the customer. As software depreciates and becomes outdated, the user may find themselves with a solution that requires constant maintenance and lacks the advanced features offered by the latest solutions, without a clear path to upgrades. 

How VSaaS Grows Your Business 

Due to the flexibility and scalability offered by a VSaaS solution, this pricing model can benefit customers everywhere with a streamlined path to the cloud and access to advanced features. What were once large upfront expenditures transform into manageable ongoing payments for customers, allowing you to provide a service accessible to a broader customer base. However, the benefits of VSaaS impact more than just the end user. By selling a VSaaS solution to end users, you can more effectively drive business growth through recurring monthly revenue (RMR) while improving overall customer retention. 

Recurring Monthly Revenue (RMR) 

Recurring monthly revenue (RMR) provides long-term and consistent revenue via VSaaS’ month-to-month pricing model. In addition to subscription revenue, RMR can also be generated with additional managed services based on your business’ capabilities. 

The VSaaS model also creates continuous upsell opportunities by offering advanced, premium features to businesses as their needs change over time. This provides you with opportunities to further increase RMR while delivering even more value to the customer. 

These aspects of RMR help benefit your business in several ways. Bundling higher margin services with subscription revenue improves your bottom line and increases profitability to drive future growth. Improved forecasting helps reduce uncertainty and risk. You can plan better, enabling smarter investments in growth opportunities. Finally, RMR enhances business valuation. A higher valuation is more attractive to investors, allowing you to raise money, fund new initiatives, and accelerate growth. 

High Customer Retention 

VSaaS improves customer retention by delivering new features and continuing to meet customer needs as business and technology evolve over time. Unlike perpetual solutions, which will only be at their best on the first day they’re activated, VSaaS delivers the latest advancements to businesses, ensuring solutions are future proof. 

Automatic updates deliver ongoing value, providing peace of mind by ensuring customers always have access to the latest features and updates. These updates not only enhance functionality but also ensure systems are cyber secure against threats. For customers, this means confidence in their investment and assurance that their systems are always up to date, delivering continuous value month after month. 

For partners, subscription autorenewal makes it easier for customers to make recurring payments, with no need to actively renew subscriptions. Additionally, the VSaaS model fosters ongoing relationships. Regular touchpoints about new features, updates, and changing needs increases customer loyalty while providing opportunities to expand service. This proactive engagement reduces attrition and minimizes the risk of customers switching to competitors. 

By improving customer retention, you can lower customer acquisition costs, helping you focus more on acquiring new customers without worrying about losing existing ones. Additionally, you’ll increase customer lifetime value, in turn driving long-term revenue and profitability. 

OpenEye’s VSaaS Solution Boosts Business 

OpenEye’s flexible, scalable VSaaS solution helps meet the business needs of today and tomorrow, providing a complete surveillance solution for your customers. 

OpenEye Web Services (OWS), OpenEye’s cloud-managed video solution, experienced a 99 percent customer retention rate in 2024, proof in the value delivered to those that use the platform day-in and day-out. OWS’ low upfront cost allows customers to implement an advanced video solution in the way that works best for their business today, with continual improvements and added functionality to meet their ongoing security needs for a complete, future-proofed offering. This helps reduce the barriers to entry for your customers, while convenient features, including remote troubleshooting and regular system maintenance, lower your operational costs.  

Interested in learning more about OpenEye Web Services as a VSaaS solution? Talk to an OpenEye sales representative now to learn how offering OpenEye’s advanced cloud-managed video platform can grow your business. Contact us here.