Transcript Managed vs Unmanaged Networks for Home Security

Managed vs Unmanaged Networks
for Home Security
AICC Meeting
September 10, 2013
Roy Perry – VP Ecosystem Alliances
What Are Managed vs Unmanaged Networks?
• “Managed” means all the devices in the path are under the
management and control of a single responsible party
• Home routers are “Unmanaged”, and so introduce an element
beyond the party’s control, and increase technical and support
costs, especially for single path communications
Cellular
Licensed
Spectrum
Cell Modem
Security
Panel
Managed
Service
Platform
Broadband
Licensed
Spectrum
Managed
BB
Modem
Ethernet
Home
Router
Unlicensed
Spectrum
Security
Panel
Unmanaged
Battery Power
Grid Power
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Context for Discussion
• Total cost of ownership/operation increases when
using unmanaged networks due to many factors
• Panels that transmit alarm signals for fire/smoke
must conform to NFPA 72 which has supervision
requirements that increase costs to central stations
• This analysis does not include the support costs
associated with supporting other home monitoring
and automation applications (eg video, lights, locks,
thermostats)
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Not a “Broadband vs Cellular” Issue
•
•
•
•
A home network vs service provider network issue
A licensed vs unlicensed spectrum issue
An active vs passive supervision issue
A powered vs unpowered issue
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Why Does It Matter?
• Unmanaged home networks introduce significant service
quality issues that create risks for customers and costs for
dealers and central stations
– Vulnerable to service interruption with loss of power, miswiring,
router failure, user error, wifi interference, wrong passkey
– Increasing complexity due to increasing variations in home routers
– Cable and telco provided routers with aggressive firewall policies
can block third party devices
• The total cost of ownership may exceed the cost of paid
cellular connections
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Cost of Involving Home Networks
1) Customer support costs
– Increased support costs for home security dealers and central
stations
– Increase in customer contact, trouble tickets, troubleshooting,
truck rolls
2) Hardware costs
– Increased hardware costs to work around home routers
3) Central station supervision costs
– Increased supervision costs due to more incidents requiring
central station response
4) Customer churn and dissatisfaction costs
5) Training costs for IT skills
– For installers, technicians, and customer care
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1) Customer Support Costs
• Additional support load (inbound calls, Tier 1 tickets,
truck rolls)
• Additional complexity
• Additional time to resolve
• Unique challenges per customer
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Quantifying Customer Support Costs
• Alarm.com Findings
– 10x home network tickets vs cellular
• Motorola White Paper (2011)
– “Reducing Costs, Increasing Retention by Automating
Home Network Support”
– Quantifies support costs associated with home networks
• Roughly 30 percent of inbound calls to carriers or cable operators
deal with Wi-Fi issues
• Each call costs about $5 (5 min avg = $1/min/call)
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2) Hardware Costs
• Adding dedicated broadband modem/router
• To bypass home router (~$120)
• Adding dedicated wifi access points
• To bypass customer wifi (~$60)
• Adding UPS (standby power) equipment
• IP based fire alarm communications does not specifically
require standby power
• Cable modems and routers will fail during power outages,
unless UPS used
• UPS can achieve standby power equivalent to cellular, but 8
hour UPS for cable-modem-wifi-router expensive (>$200)
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3) Central Station Supervision Costs
• NFPA 72 imposes supervision requirements on central stations
– Single path connections must exchange signals no less frequently than
5 minutes (eg 2010:26.6.3.1.4)
• Single path cellular has had special exemption (24 hours for commercial and 30
days for residential)
– Dual path connections no less frequently than 24 hours
– Upon loss of connection, the central station must respond
• Must call occupant or local dealer
• Many home router vulnerabilities (loss of power, misconfigured/bad router, etc)
• NFPA 72 2013, Section 14.2.7.2 updated
– No longer any distinction between technologies except for dialer
(DACT)
– 60 minutes/6 hours for commercial
– 7 days/7 days for residential (tightens cellular from 30 to 7 days)
– Dramatically reduces supervision costs but will take years for adoption
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NFPA 72 Supervision Requirements
(5 Minute Supervision Required for Single Path Until 2013 Code Adopted By Local Jurisdictions)
Edition
Type
1999 Commercial
Residential
2002 Commercial
Residential
2007 Commercial
Residential
2010 Commercial
Residential
2013 Commercial
Residential
Phone (DACT)
Cellular
Other Single Path
Other Dual Path
24 hrs [5-5.3.2.1.6.2 (2)]
30 days [5-5.3.2.1.6.2
(Exception No. 1)]
5 minutes [5-5.4.4.1]
24 hrs [5-5.4.4.3.2]
30 days [8-4.3.1]
same as commercial
same as commercial
same as commercial
24 hrs [xxx]
30 days [xxx]
5 minutes [xxx]
24 hrs [xxx]
30 days [xxx]
same as commercial
same as commercial
same as commercial
24 hrs [xxx]
30 days [xxx]
5 minutes [8.6.4.4(1)]
24 hrs [8.6.4.4(5)]
30 days [xxx]
same as commercial
same as commercial
same as commercial
24 hrs[26.6.3.2.1.5 (6)]
30 days [26.6.3.2.1.4 (B)
(Exception No. 1)]
5 minutes [26.6.3.1.4.1]
24 hrs [26.6.3.1.4.2 (2)]
30 days [29.7.8.1.2]
same as commercial
same as commercial
same as commercial
24 hr [26.6.3.1.5]
1 hr [26.6.3.1.5]
1 hr [26.6.3.1.5]
6 hrs [26.6.3.1.6]
30 days [29.7.9.1.2]
7 days [29.7.9.1.4]
7 days [29.7.9.1.4]
7 days [29.7.9.1.4]
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State Adoption of NFPA 72 Editions
(As of July 2012, Only 1 State Had Adopted 2010)
ALABAMA
ALASKA
ARIZONA
Phoenix
ARKANSAS
CALIFORNIA
COLORADO
Denver
CONNECTICUT
DELAWARE
Sussex County
DISTRICT OF COLUMBIA
FLORIDA
GEORGIA
HAWAII
IDAHO
ILLINOIS
INDIANA
IOWA
KANSAS
Wichita
KENTUCKY
LOUISIANA
MAINE
MARYLAND
MASSACHUSETTS
MICHIGAN
MINNESOTA
MISSISSIPPI
Jackson
MISSOURI
St. Louis
2007
2007
1999
2002
2002
2007
2002
2002
1999
1999
2002
2007
2002
2002
2007
2007
2002
2007
2002
2002
2002
2007
2002
2010
2007
2007
2002
1999
2007
IFC2009
IFC2009
IFC2003
IFC2006
IFC2006
IFC 2009
IFC2006
IFC2006
IBC2003
IBC2003
IFC2006
IBC2009
IFC2006
NFPA1-2006
IBC2009
IFC2009
IFC2006
IBC2009
IBC2006
IFC2006
NFPA1-2006
IBC2009
NFPA1-2006
IBC2012
IFC2009
IBC2009
IBC2006
IFC2003
IBC2009
MONTANA
2007
IBC2009
NEBRASKA
2002
NFPA101-2003
Lincoln
2007
IFC2009
NEVADA
2002
IFC2006
Las Vegas
2007
IBC2009
NEW HAMPSHIRE
2007
IBC2009
NEW JERSEY
2007
IBC2009
NEW MEXICO
1999
IFC2003
NEW YORK
2002
IFC2006
New York City
2002
NFPA 72-2002
NORTH CAROLINA
2007
IFC2009
NORTH DAKOTA
2007
IBC2009
OHIO
2007
IFC2009
OKLAHOMA
2007
IFC2009
OREGON
2007
NFPA 72-2007
PENNSYLVANIA
2007
IFC2009
RHODE ISLAND
1999
NFPA1-2003
SOUTH CAROLINA
2002
IFC2006
Sioux City
2007
IBC2009
TENNESSEE
2002
IFC2006 | NFPA 101-2006
TEXAS
1999
IBC2003
Dallas
2002
IFC2006
Houston
2002
IFC2006
UTAH
2007
IFC2009
VERMONT
2002
NFPA 1-2006 | NFPA 101-2006
VIRGINIA
2007
IFC2009
WASHINGTON
2007
IFC2009
WEST VIRGINIA
2007
IBC2009
WISCONSIN
2007
IBC2009
WYOMING
2002
IFC2006
SOUTH DAKOTA
Source: Data from law.resource.org updated as of 7/31/12
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4) Customer Churn and Dissatisfaction
• Router password is often forgotten or unknown,
frustrates installers and customers and results in longer
installation times
• Future home network problems may be blamed on home
security provider
• Customers hold alarm company responsible when
monitoring fails, not router manufacturer or network
provider or power provider
• This results in decreased customer satisfaction and
increased churn through circumstances beyond dealer
control
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5) Technician IT Training for Home Networks
• Installers, customer care, and technicians must now
be trained on how to setup and troubleshoot home
routers and wifi networks, and how to escalate issues
to ISP
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Broadband Can Be A Managed Connection Too
• Some cable operators use a dedicated cablemodem/wifi router to bypass home router
• This reduces support costs but increases hardware
cost, opportunity cost
– ~$120 for cable-modem/wifi router
– Consumes static IPv4 address
• Future: Embedded cable modems could be used in
panels with benefits similar to cellular (operation
during power failure and bypass of home router)
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Does Dual Path Help?
• Dual path reduces supervision costs, since NFPA 72
supervision is relaxed from 5 minutes to 24 hours
• Updated to 7 days for both single and dual path in 2013
Code
• Dual path can actually increase support costs, since it
adds a second path that must be supported
• Cellular backup meets requirement as dual path, but is
not continuously active (only used upon failure of alarm
transmission via broadband) so requires test signal
monthly (weekly in new 2013 code)
• Redundant managed/managed active/active dual path in
theory is highest reliability, but cost prohibitive today
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Single vs Dual Path Arrangements
Cellular
Cell Modem
BB
Modem
Broadband
Service
Platform
Broadband
Cellular
Broadband
Cellular
Broadband
Cellular
Unmanaged
Active
BB
Modem
Home
Router
Standby
Active
Cell Modem
BB
Modem
Home
Router
Active
Active
Standby
Security
Panel
S1. Managed
Security
Panel
S2.Unmanaged
Security
Panel
D1.
Unmanaged/
Managed
Security
Panel
D2.
Unmanaged/
Managed
Security
Panel
D3.
Managed /
Managed
Cell Modem
Dedicated
BB Modem
Dedicated BB
Router
Cell Modem
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Single Path
Grid Powered
Dual Path
Standby Powered
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Cost Analysis – 2010 Code Compliance
SINGLE PATH
S1
S2
Type
Network Provider
Router Type
Redundancy
Operation During Power Failure (<24 hrs)
Power Failures*/mo
Home Router Failures*/mo (incls wifi)
Broadband Failures*/Mo
Supervision Events Triggered
Cellular Support Calls
Wifi Support Calls (Wifi= 10X cellular rate)
Support Cost (Wifi calls 5x longer)
Supervision Cost (5 minutes)
(ALL CALLS ARE $1/minute)
Access Point Hardware ($60 ea/60 months)
BB Modem/Router ($120 ea/60 months)
Incremental Hardware Cost /mo
Cellular Transport Cost
Total Cost/Mo
Unmanaged
DUAL PATH
D1
D2
D3
Unmanaged/ Unmanaged/ Managed/
Managed
Managed
Managed
Cellular
Broadband
Broadband + Broadband + Broadband +
Cellular
Cellular
Cellular
None
Dedicated BB
Modem
Home Router Home Router Home Router /Router
Managed
Yes
Active/
Active/
Standby
Active
Standby Only Yes
No
1
1
1
0
0.1
$0.10
$0.00
$0.00
$0.00
$0.00
$1.00
$1.10
1
1
1
3
1
$5.00
$15.00
$1.00
$0.00
$1.00
$21.00
Active/
Standby
Standby Only
1
1
1
3
0.1
1
$5.10
$15.00
1
1
1
0
0.1
1
$5.10
$0.00
1
1
1
3
0.1
1
$5.10
$15.00
$0.00
$0.00
$0.00
$1.00
$21.10
$0.00
$0.00
$0.00
$1.00
$6.10
$0.00
$2.00
$2.00
$1.00
$23.10
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Cost Analysis – 2013 Code Compliance
SINGLE PATH
S1
S2
Type
Network Provider
Router Type
Redundancy
Operation During Power Failure (<24 hrs)
Power Failures*/mo
Home Router Failures*/mo (incls wifi)
Broadband Failures*/Mo
Supervision Events Triggered
Cellular Support Calls
Wifi Support Calls (Wifi= 10X cellular rate)
Support Cost (Wifi calls 5x longer)
Supervision Cost (5 minutes)
(ALL CALLS ARE $1/minute)
Access Point Hardware ($60 ea/60 months)
BB Modem/Router ($120 ea/60 months)
Incremental Hardware Cost /mo
Cellular Transport Cost
Total Cost/Mo
Unmanaged
DUAL PATH
D1
D2
D3
Unmanaged/ Unmanaged/ Managed/
Managed
Managed
Managed
Cellular
Broadband
Broadband + Broadband + Broadband +
Cellular
Cellular
Cellular
None
Dedicated BB
Modem
Home Router Home Router Home Router /Router
Managed
Yes
Active/
Active/
Standby
Active
Standby Only Yes
No
0
0
0
0
0.1
$0.10
$0.00
$0.00
$0.00
$0.00
$1.00
$1.10
0
0
0
0
1
$5.00
$0.00
$1.00
$0.00
$1.00
$6.00
Active/
Standby
Standby Only
0
0
0
0
0.1
1
$5.10
$0.00
0
0
0
0
0.1
1
$5.10
$0.00
0
0
0
0
0.1
1
$5.10
$0.00
$0.00
$0.00
$0.00
$1.00
$6.10
$0.00
$0.00
$0.00
$1.00
$6.10
$0.00
$2.00
$2.00
$1.00
$8.10
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Cost Rankings of Solutions (2010 Code)
Type
Network Provider
Redundancy
Total Cost/Mo
Unmanaged/ Unmanaged/ Managed/
Managed
Unmanaged Managed
Managed
Managed
Broadband + Broadband + Broadband +
Cellular
Broadband Cellular
Cellular
Cellular
Active/
Active/
Active/
Standby
Active
Standby
$1.10
$21.00
$21.10
$6.10
$23.10
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Cost Rankings of Solutions (2013 Code)
Type
Network Provider
Redundancy
Total Cost/Mo
Unmanaged/ Unmanaged/ Managed/
Managed
Unmanaged Managed
Managed
Managed
Broadband + Broadband + Broadband +
Cellular
Broadband Cellular
Cellular
Cellular
Active/
Active/
Active/
Standby
Active
Standby
$1.10
$6.00
$6.10
$6.10
$8.10
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Key Conclusions
1.
2.
3.
Single-path managed (S1) connection to home security panel avoids
customer network problems and therefore reduces support costs
Single-path unmanaged (S2) connection (eg using customer router)
offers lower connectivity cost but introduces support and supervision
costs exceeding the savings
Dual-path managed/unmanaged active/standby (D1) is no more
reliable than single-path managed (since cellular used in both cases),
but introduces support costs even though secondary path may rarely
be needed
Bottom Line: NFPA 72 Supervision requirement of 5 minutes remains in
effect until 2013 Code adopted; compliance when using IP-only can be
costly; need states and localities to adopt asap; recommend cellular or
dual path in the interim.
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Thank You
Roy Perry
[email protected]
Backup Slides
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2010 Code
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2010 Code (cont)
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2013
Code
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