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marketing information to create more effective business strategies. As for the service-oriented business model, the company expressed that it provides all hardware and installation services for free and will only charge an annual service fee. The company is also able to provide the end user with a free trial of its data analysis report for a certain time period. If the end users want professional business management consulting services, the company could provide the extra service by charging an additional fee. For the

end users, especially from major chain stores who are unwilling to invest a large amount of money in security equipment, the service-oriented business model seems to be more attractive. Now, many industry experts say that end users have become more aware of the value of using customer flow analysis, which is now standard in stores and shopping malls in China, and how it can contribute to their corporate management strategy.

clOud SErVIcES BOOST cOmmErcIal marKET This new service-based business model has been gradually accepted by end users due to the popularity of cloud service. Cloud service is foreseen to be widely applied by retail stores and in intelligent building solutions in the near future. Instead of installing a local server, a chain store’s end user can easily obtain data, analysis reports, and surveillance videos from the cloud server, which is convenient, scalable,

This new servicebased business model has been gradually accepted by end users due to the popularity of cloud service.


FEB 2014

and budget-friendly. In fact, some manufacturers in the security industry have already begun to provide some basic cloud services for SMBs to watch real-time surveillance footage in the store, factory, or office. Nevertheless, cloud service is not exclusive to the security industry; some Internet service providers have been proactively promoting their real-time surveillance service with free camera devices as well. For these companies, they do not intend to gain profit only by selling products but also additional services, which is growing to be a trend in the security market. Cloud service can also be applied to integrating time-attendance records, salary counting, and human resource management. Employees are able to check their salary and attendance record through a given account at any time, anywhere. Even though cloudhosted time-and-attendance service is broadly accepted by the U.S. and European markets, most companies around the world still hold doubts in regard to privacy and security issues. Despite its potential, the cloud service market is still developing. There are many problems to be solved before it turns into a fully developed solution. End users may find it convenient to access and save information no matter where and when; nevertheless, privacy and security concerns are still going to be the primary challenge for manufacturers. Still, we can expect the industry to provide pertinent solutions for it in the near future.


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