The security industry is in the middle of its biggest transformation since CCTV went digital. Gate access control, LPR, visitor management, and building security are no longer seen as isolated hardware installs. They’ve become mission-critical software ecosystems—platforms that communities rely on every day to stay secure, compliant, and operational.

And in every industry where hardware becomes software, one thing follows:

Recurring revenue becomes king.

Systems integrators—especially those who specialize in gate systems, access control, LPR, HOA technology, and community security—are reorganizing their entire sales frameworks around recurring services, recurring software, and recurring value.

This shift isn’t just about predictable cash flow. It’s about:

• Higher margins

• Higher enterprise value

• Private equity consolidation

• Exit multiples that didn’t exist five years ago

• And ultimately, staying competitive in a software-first world

This article breaks down why the recurring revenue model has become the north star for successful security integrators, why private equity is pouring money into this space, and how platforms like Proptia are helping integrators turn every installation into a long-term, compounding revenue engine.

1. The Security Industry Used to Be Hardware-Heavy—Now It’s a Software Business

For decades, systems integrators in gated communities, HOAs, apartments, and mixed-use developments made their money in a predictable but limited cycle:

1. Bid the project

2. Install the hardware

3. Offer optional maintenance

4. Wait for repairs or upgrades

But there were two massive problems with this model:

Problem #1: Revenue Was Lumpy

You could have a strong quarter followed by two slow ones. Cash flow was dependent on new construction cycles, customer budgets, or property management turnover. It wasn’t predictable, and it made growth difficult.

Problem #2: It Devalued the Integrator’s Business

Hardware-centric integrators historically sold for lower multiples because:

• They had inconsistent revenue

• They didn’t own long-term customer relationships

• Their recurring services weren’t scalable

• Their revenue wasn’t software-based

In private equity, these factors directly reduce valuation.

Then the market changed.

2. Software-Driven Access Control Changed the Economics Completely

New security platforms—especially smart visitor management, POI awareness, license plate recognition, and Bluetooth/mobile credential systems—turned gate and access management into a daily operational system, not a one-time installation.

Once the industry shifted from static hardware to cloud-based interfaces, three things happened simultaneously:

A. Every customer needed ongoing software

Communities started asking for:

• Cloud dashboards

• Multi-gate syncing

• Self-service visitor access

• Vehicle databases

• Mobile credentials

• Real-time notifications

• LPR analytics

• Multi-property manager permissioning

• Remote gate control

• API integrations with PMS platforms

You don’t “install” that.
You maintain it.
You power it.
You update it.
You secure it.
You grow with it.

And that creates recurring revenue every single month.

B. Integrators became essential, not optional

The integrator became:

• The advisor

• The installer

• The trainer

• The hardware provider

• The account manager

• The escalation layer

• The recurring revenue partner

Instead of “sell and move on,” the new model is “sell and grow.”

C. Software revenue dramatically increases valuation multiples

In hardware companies, average valuation multiples range from:

• 0.5× – 1.5× revenue

In software-anchored integrators with recurring revenue, multiples jump to:

• 4× – 12× recurring revenue

• 2× – 6× total revenue

That’s a 4–10× increase in exit valuation.

This is the #1 reason the industry is seeing private equity consolidation:

• PE firms want recurring revenue

• They want software-anchored businesses

• They want long-term customer contracts

• They want predictable cash flow

Integrators that align themselves with modern software platforms—like Proptia—position themselves perfectly for this next wave of deal-making.

3. Why PE Firms Are Actively Consolidating Access Control & Gate Technology

If you track the last few years of deals in physical security, you’ll notice something: private equity firms are aggressively buying up integrators, especially ones with:

• Cloud access control

• Recurring monitoring

• LPR & traffic enforcement tech

• SaaS management platforms

• Gate automation services

• Multi-product recurring bundles

Why?

Reason #1: Software Creates Stickiness

Communities rarely switch platforms once their daily security operations rely on it.

Reason #2: Predictable Recurring Revenue

PE firms love businesses where 40–70% of revenue is predictable.

Reason #3: Cross-Sell & Upsell Expansion

Once a community adopts a platform like Proptia, integrators can layer additional modules:

• License plate recognition

• Visitor self-service kiosks

• Speed enforcement integrations

• Mobile credential upgrades

• Multi-gate expansions

• STR integrations

• Access to additional property features

Reason #4: Defensibility

It’s much harder for competitors to poach accounts when the community’s entire security stack runs on your platform.

Reason #5: Higher Margins

Recurring software margins are significantly higher than hardware margins.

Long story short: recurring software has become the core value driver for integrator acquisitions.

4. The Real Economics: Why Integrators Are Leading With Software First

Let’s talk numbers, because that’s ultimately what drives strategy.

There are four major revenue streams integrators can unlock when they pivot to software-anchored security:

1. Installation Revenue

This includes:

• Controllers

• LPR cameras

• Visitor kiosks

• Barcode scanners

• Arm operators

• Network equipment

• Readers

• Bluetooth access points

• Cabling/labor

These are high-ticket, high-margin jobs that still anchor the integrator’s top line.

2. Hardware Markup

Integrators can continue selling:

• LPR

• Cameras

• Controllers

• Pedestals

• Sensors

• Intercoms

• Mobile credential readers

And with a platform like Proptia, installers often sell more hardware because the software enables more advanced use cases.

3. Services & Support

Examples:

• Upgrades

• Preventative maintenance

• New gate expansions

• System redesigns

• Additional kiosks

• Software setup

• User migrations

• Custom workflows

Services are pure margin.
They build trust.
They create retention.

4. Recurring Revenue (The Holy Grail)

This is where everything changes.

With Proptia, integrators earn:

• Monthly revenue share

• No published end-customer pricing

• Flexibility to use MSRP or mark up services

• Recurring software margins with near-zero overhead

• Revenue that compounds every month

When integrators adopt Proptia as their main platform, they unlock a revenue engine that grows without requiring additional labor or overhead.

Which leads us to a real-world example.

5. Case Study: A Southern California Integrator Generated $9.4M in Three Years by Leading With Proptia

In 2020, a mid-sized security integrator in Southern California made a strategic decision:

Proptia would become their primary platform for gated community and building security.

Over the next three years—through 2023—the results were transformative:

✔ $9.4 million in total revenue generated

That’s an average of $3.1 million per year.

This included:

• Installations

• Hardware

• Software setup fees

• Services

• Recurring software revenue share

✔ Recurring revenue became their most profitable business unit

Every new community added new recurring revenue on top of installation and hardware.

No additional overhead.
No additional headcount.
No new trucks.

Just pure, compounding margin.

✔ Client retention skyrocketed

Communities became “sticky.”
Proptia became the backbone of each site’s:

• Gate management

• LPR

• Visitor operations

• Access control

• Vehicle lists

• Staff workflows

Once property managers rely on a system every hour of every day, they don’t switch.

✔ Support calls dramatically decreased

Property managers and gate attendants found the system intuitive enough to self-manage:

• Resident lists

• Guest lists

• ePasses

• Vehicle registration

• Reporting

• Visitor controls

Which meant fewer service calls and more profit for the integrator.

✔ The integrator’s valuation increased exponentially

Their recurring revenue grew so quickly that private equity firms started contacting them about acquisition opportunities.

Why?

Because recurring revenue is the most attractive, most scalable, highest-margin segment of the entire business.

This case study isn’t unique—it’s a repeatable playbook.

And it’s exactly what more integrators are doing today:

• Lead with software

• Bundle hardware

• Layer services

• Build recurring revenue

• Improve valuations

• Get PE attention

Proptia just happens to be the platform that makes this shift the easiest, most profitable, and most defensible.

6. Why Systems Integrators Choose Proptia for Recurring Revenue Growth

Here’s the core value proposition integrators consistently highlight when switching to Proptia:

1. Proptia Gives Integrators Recurring Revenue Share

Unlike many SaaS platforms that sell direct to the end customer, Proptia:

• Does not publish monthly pricing

• Does not market its platform directly against integrators

• Allows integrators to adopt MSRP

• Allows integrators to mark up SaaS pricing if they choose

• Shares recurring software revenue with the integrator

This means:

Every new community adds monthly profit forever.

2. Proptia Makes Customers Stickier

Once a customer’s entire gate, access, and visitor operation runs on Proptia:

• It’s too valuable to remove

• It’s too integrated

• It’s too operationally essential

• It reduces support burden for the integrator

• It cements the integrator as the long-term partner

Customers don’t leave a platform they use every hour of every day.

3. Proptia Expands Your Hardware & Services Business

Because Proptia unifies the ecosystem, integrators often sell more hardware:

• More LPR

• More Bluetooth readers

• More kiosks

• More controllers

• More cameras

Why?

The software enables more advanced configurations, more automation, more gates, and more opportunities to modernize.

4. Proptia Creates Enterprise Value—Not Just Project Revenue

If you ever plan to:

• Sell your integrator business

• Bring on investors

• Acquire other integrators

• Position for PE interest

Recurring revenue is the difference between:

A business worth 1× revenue
and
A business worth 6–10× recurring revenue + installation/services value

Proptia helps integrators make that shift.

7. The New Go-To-Market Strategy: Lead With Software, Not Hardware

Here’s how top integrators are winning today:

Step 1: Lead with Proptia as the platform

This becomes the “operating system” for the community.

Step 2: Build the hardware quote around Proptia

Once Proptia is the foundation, hardware becomes the natural extension.

Step 3: Add service contracts and expansions

Communities often add:

• Additional gates

• New LPR

• More readers

• Visitor kiosks

• STR integrations

Step 4: Build recurring revenue on top

Every site produces compounding monthly profit—year after year.

8. The ROI for Integrators Who Adopt the Proptia Model

Let’s break down the measurable benefits.

Benefit #1: Predictable Monthly Recurring Revenue

This smooths cash flow and creates financial stability.

Benefit #2: Higher Customer LTV (Lifetime Value)

Customers stay for 7–15 years because switching becomes too disruptive.

Benefit #3: More Hardware Sales

Software doesn’t replace hardware—it amplifies it.

Benefit #4: Reduced Support Costs

Proptia’s user interface reduces configuration and training overhead.

Benefit #5: Higher Margins

Recurring revenue > one-time revenue.

Benefit #6: Higher Valuation Multiples

This is the #1 reason integrators are reinventing their business models.

9. Why Integrators Who Don’t Pivot Will Fall Behind

There’s a split happening in the market:

Integrators who adopt software-first models are scaling fast.

Integrators who remain hardware-only are losing bids.

Communities expect:

• Cloud dashboards

• Mobile credentials

• APIs

• LPR access

• Automated visitor management

• STR integrations

• Real-time reporting

• Alerts

• Remote management

If an integrator does not offer these features, they are increasingly disqualified from RFPs.

10. Why Proptia Is the Right Platform for Integrators Looking to Build Recurring Revenue

There are many access control systems in the market. But Proptia is uniquely positioned for integrators who want both:

• Recurring revenue

• A modern, community-centric security platform

Here’s why:

✔ We don’t publish prices

You control your margins.

✔ You get recurring revenue share

Every install becomes a long-term annuity.

✔ Our platform is built for communities

HOAs, gated communities, country clubs, condos, resorts—
This is our specialty.

✔ We reduce support burden

Less training. Less hand-holding. More margin.

✔ We help integrators win more bids

Property managers prefer platforms that give them independence and modern workflows.

11. Closing Thoughts: The Future Belongs to Software-Anchored Integrators

In every major industry—from HVAC to automotive to manufacturing—the companies that embrace software and recurring revenue leave their competitors behind.

The gate and security industry is now experiencing the same shift.

Integrators who adopt platforms like Proptia are:

• Increasing margins

• Boosting enterprise value

• Winning more jobs

• Creating stickier customers

• Attracting private equity interest

• Building equity instead of just revenue

And most importantly—
they’re future-proofing their business.

If you’re a systems integrator looking to:

• Build recurring revenue

• Expand hardware sales

• Increase valuation

• Create lasting customer relationships

• Grow without increasing overhead

…then becoming a Proptia Channel Partner is one of the smartest strategic moves you can make.

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