Atlanta, GA, October 11, 2018 --(PR.com
)-- Tech startup Xook LLC today launched a crowd-funding Kickstarter campaign to provide $1 per month home security monitoring to consumers. The new service will use voice-over-IP (VOIP), voice recognition, and cloud services to eliminate building and staffing expenses that drive up costs for traditional home security companies. With those savings passed directly to the consumer, Xook’s service is being offered for 30x less than traditional home security monitoring services. One notable Kickstarter reward is lifetime monitoring for $100, which will only be available to a limited number of backers during the campaign.
Almost 40% of the homes that have alarm systems installed do not have monitoring, primarily because of the costs. A lower cost solution would provide improved security options for more than 7 million homes that already have a security system. The problem is that current regulations protect the traditional security companies who still control more than 90% of the market. The National Fire Alarm Code Section 72 stipulates that central monitoring stations must be certified by authorized third-party approvals agencies, such as Factory Mutual to provide fire alarm monitoring. Additionally, alarm systems that monitor merchants and banks who have vaults must be certified to meet UL 872 standards for central monitoring stations. To comply with these regulations and standards, alarm monitoring companies must have at least two buildings with full time employees on staff at all times. To cover these costs, companies like ADT charge between $25 and $30 a month.
Many homeowners desire the protection of alarm notifications but are unwilling to pay the current monthly fees, which they perceive as being too high. “It really bothered me knowing I was paying for people and office buildings that I would rarely, if ever, use. Basically, I was just paying for insurance. I felt like this was a perfect application for automation,” says Xook CTO Tim Archer. The new tech savvy generation seems to agree. According to a 2015 report by Citi, do-it-yourself (DIY) systems that are self-monitored are becoming the new norm for home security. Innovative new technologies from Silicon Valley backed tech companies are expected to capture 40% of the market over the next five years.
Google, Amazon and Apple see home security as a natural entry point into the home automation market. DIY systems like Blink, Ring and Nest provide options that eliminate monthly monitoring fees by sending the notifications directly to the homeowner on a smartphone app. However, the products require the homeowner to purchase new equipment that can be expensive. The basic Ring DIY home security kit starts at $299 but homeowners will incur several hundred dollars more in expenses for additional sensors and options such as the Ring doorbell. “If my home already has a security system that monitors all the doors and windows, then it is difficult to justify the costs of a new DIY wireless system,” says Xook CEO Jon Ussery. “What I really wanted was to connect my existing system to a lower cost monitoring service, but nothing like that exists on the market. With a service like Xook, I could have alarm monitoring for 25 years for the same price as a basic Ring system.”
Xook’s approach is different than the other new self-monitored systems. Homeowners that already have a home security system can reconfigure it to send the calls to Xook’s cloud service, which in return sends instant notifications via voice, text and email. Like other DIY solutions, Xook avoids the UL 872 requirement for central monitoring stations by offering the solution only for homeowners. The service is not approved for merchants and banks. Xook is also limited to burglar alarm notifications because fire alarm monitoring requires NFPA 72 certification. “We recognize Xook has limitations, but we are targeting the homeowner who is not willing to pay thousands of dollars for monitoring services,” says Ussery.
Xook will only develop the new service if it can reach its crowdfunding goal. “Going through Kickstarter is our way of verifying the market. If we can find enough backers through Kickstarter, then we are confident we can make this a successful business,” said Ussery. If the Kickstarter campaign is successful, Xook plans to start offering the service to the general market within 10 months.
For more information, visit http://www.xook.io/
About Xook LLC
Xook’s mission is to provide affordable home security solutions by helping homeowners connect their existing systems to the cloud to receive burglar alarm notifications for $1 a month or less.
Contact: Jon Ussery