***************************
67 MILLION FOR 900K IN RMR
***************************
    According to an article in Security System News, Monitronics paid $67 million for LiveWatch's $900K in RMR.  The infra structure came with it.  By my math that comes to over 74 times RMR.  LiveWatch's RMR is monitoring DIY systems.  I did tell you that this was a great business model to consider, but don't count on 74 times RMR when it comes time to sell.  My guess is there are plenty of bean counters out there that cannot justify this purchase price, yet others, including those making decisions at Monitronics, who believe in the growth potential of not only the monitoring of DIY systems but the RMR business model.
    Reportedly the acquisition involves 32,000 subscriber accounts, which computes to roughly $28 a month.  Should take about 2.6 years to break even assuming no cost to monitor or invoice subscribers.  Justification for this acquisition undoubtedly relies on the LiveWatch team producing a lot more RMR in the future, and there certainly is value in an established and trained sales team.  I am curious what value would be put on a trained door knocking sales team if they came with an RMR acquisition.  Someone must have that insight.  [BTW, don't be confused, I don't know if LiveWatch uses door knockers - but from the article it appears that sales are through the internet and telemarketing]
     DIY monitoring is going to require a nationwide agreement, which means an agreement that can be used in all states and still be enforceable.  You most likely don't need an alarm license to sell DIY equipment, but you will need a license in some jurisdictions to provide monitoring, especially if you enter into a written agreement, which you should do.  A nationwide agreement is available by contacting our Contract Administrator, Eileen Wagda at 516 747 6700 x 312.
**********************
COMMENT ON CLOUD BASED SERVICES FROM APRIL 13, 2015
***********************
Ken,
    It has been a long time ago, nearly 40 years but a national company, Guardian Alarms, closed their doors and left thousands of customers without coverage. Quite a fiasco at the time, so there is some precedence for concern.
Thank you,
Bill Johnson, LEED AP,ISP
Security Operations Team Leader, FSO
Johnson Controls 
*******************************