How Multi-Site Businesses Can Save Millions in Security Costs by Switching to Cloud Solutions

How Multi-Site Businesses Can Save Millions in Security Costs by Switching to Cloud Solutions

 

For multi-site businesses, managing security across multiple locations is a significant challenge. From securing assets to ensuring compliance and monitoring employee safety, the cost of traditional security systems can quickly skyrocket. On-site surveillance systems require extensive hardware, maintenance, and storage—all of which add up to substantial expenses over time.

However, the tide is turning, and many businesses are realizing that there’s a more efficient and cost-effective solution: cloud-based surveillance. By switching to cloud surveillance solutions, multi-site businesses can save millions in security costs while improving overall safety and operational efficiency. Let’s explore how cloud technology transforms security and the real-world savings it can deliver.

The Problem: The High Costs of Traditional Security Systems for Multi-Site Businesses

Whether you’re managing a chain of retail stores, a network of warehouses, or a portfolio of office buildings, traditional on-site security systems can weigh heavily on your budget. Here’s why:

  1. Initial Hardware and Installation Costs: Setting up on-site surveillance systems across multiple locations requires significant capital investment. Cameras, servers, storage units, and cabling quickly add up, with the cost per location easily reaching $20,000 to $50,000 for installation.

  2. Maintenance and Repairs: On-site systems are prone to malfunctions, breakdowns, and outdated hardware. The cost of repairs, replacement parts, and system upgrades can average $5,000 to $10,000 per year per location.

  3. Data Storage Costs: Multi-site businesses must store large amounts of video footage, especially in industries with regulatory requirements for long-term data retention. This means constant upgrades to on-site storage systems, adding thousands of dollars in annual costs.

  4. Limited Flexibility and Scalability: As businesses grow and expand, on-site systems require expensive upgrades. Adding new cameras, opening new locations, or expanding surveillance coverage requires additional hardware, installation, and storage, increasing costs even further.

A Real-World Example: Retail Chain Saves Big with Cloud Surveillance

Consider the case of a national retail chain managing 50 locations across the country. Each location had its own traditional NVR/DVR surveillance system, with an average installation cost of $25,000 per site. Over five years, the company spent an additional $150,000 annually on system maintenance, storage, and upgrades, totaling $1.25 million in five years.

Frustrated with the ongoing costs and inefficiencies, the retailer decided to switch to cloud-based surveillance provided by Arcadian.ai. By moving to the cloud, the company:

  • Reduced upfront costs by 40%, saving $500,000 in installation fees.
  • Cut maintenance expenses by 50%, saving an additional $300,000 over five years.
  • Eliminated on-site storage costs, resulting in annual savings of $150,000.

In total, the company saved over $950,000 in five years—nearly $1 million in security cost reductions—while benefiting from enhanced security features and centralized control.

How Cloud Surveillance Saves Millions for Multi-Site Businesses

  1. Reduced Upfront Hardware Costs With cloud surveillance, businesses can say goodbye to costly on-site servers and storage equipment. Cameras connect directly to the cloud, eliminating the need for bulky hardware installations. This significantly reduces the initial investment required to set up surveillance systems across multiple locations. Businesses can expect upfront cost savings of 30-50%, depending on the number of sites.

  2. Lower Maintenance and Repair Expenses Cloud surveillance systems are managed remotely, meaning fewer maintenance visits and repairs are needed. Automatic software updates and remote troubleshooting ensure that your system stays operational without costly downtime. On average, businesses can reduce maintenance costs by 40-60% by switching to cloud-based systems.

  3. Scalable Storage with No Hidden Costs One of the biggest advantages of cloud surveillance is scalable storage. Instead of constantly upgrading physical storage systems, businesses only pay for the storage they use in the cloud. This eliminates the need for frequent storage upgrades, saving businesses thousands of dollars annually. Plus, the cloud offers virtually unlimited storage capacity, ensuring you never run out of space.

  4. Effortless Expansion and Scalability For multi-site businesses, growth is inevitable. Whether you’re adding new stores, expanding warehouses, or acquiring new office buildings, cloud surveillance makes scaling your security system seamless. Adding new cameras or locations to the cloud is easy and cost-effective—no need for new servers or complex installations. This scalability can save businesses $10,000 to $50,000 each time they expand, depending on the size of the project.

  5. Centralized Monitoring for All Locations Cloud surveillance allows multi-site businesses to centralize security management. With a single dashboard, security teams can monitor all locations, review footage, and respond to incidents in real-time. This level of control enhances operational efficiency and reduces the need for separate on-site security personnel at each location. Centralized monitoring also leads to faster response times and fewer security breaches, further driving down costs.

Long-Term Savings: A 5-Year Cost Breakdown

Here’s a cost comparison between traditional on-site systems and cloud-based surveillance for a multi-site business with 30 locations:

  • Traditional On-Site System Costs (30 Locations):

    • Upfront installation and hardware: $750,000
    • Annual maintenance and repairs: $200,000
    • Storage upgrades: $150,000 over 5 years
    • Expansion costs for new locations: $100,000

    Total over 5 years: $1.2 million

  • Cloud-Based Surveillance Costs (Arcadian.ai):

    • Upfront setup: $450,000
    • Annual cloud subscription and maintenance: $120,000/year
    • No additional storage or expansion costs

    Total over 5 years: $1.05 million

By switching to cloud surveillance, the business saves $150,000 over five years. However, when you factor in reduced security breaches, improved operational efficiency, and fewer insurance claims due to enhanced security, the total savings can easily exceed $500,000 to $1 million.

A Success Story: How a Logistics Company Cut Security Costs by 45%

A logistics company with 25 distribution centers faced high security costs due to outdated surveillance systems. Each year, they spent over $250,000 on maintenance, storage, and system upgrades. In 2021, they transitioned to Arcadian.ai’s cloud-based solution, reducing their annual security budget by 45%.

By eliminating the need for on-site storage, cutting down maintenance fees, and using AI-powered analytics to prevent theft, the company saved over $1 million in security costs over five years. In addition, their improved security system reduced theft by 30%, saving an additional $500,000 in lost goods.

The Future of Security: Why Cloud Surveillance is the Smart Choice for Multi-Site Businesses

Cloud-based surveillance is more than just a cost-saving tool—it’s the future of security for multi-site businesses. By transitioning to the cloud, companies can enjoy scalability, flexibility, and real-time insights, all while dramatically cutting costs.

With Arcadian.ai’s cloud solutions, you can protect your assets, streamline security operations, and save millions over the long term. It’s time to stop relying on outdated, expensive systems and make the switch to the next generation of security.

Call to Action: Ready to Save Millions with Cloud Security?

Are you looking to cut security costs and improve efficiency across all your locations? Let Arcadian.ai show you how cloud-based surveillance can save your multi-site business millions in the long run. Request a free consultation today and discover how our solutions can transform your security operations!

Back to blog