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Firm that sells home security systems started with a domain name

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By Sharon McLoone
Monday, July 26, 2010

More than a decade ago, MicroStrategy acquired the domain name www.alarm.com because it saw potential in such a short, pithy piece of Internet real estate. But the software maker, based in Tysons Corner, did not know what it wanted to do with the name.

So the company turned to Alison Slavin.

At the time, Slavin was brand new to MicroStrategy, armed with a philosophy degree and the title of general associate.

"This was my first job out of college, and I didn't have a technical background," she recalled, adding that the company felt it necessary to put her through six weeks of software boot camp.

They asked her to write a plan to build a security system company that would make it possible for customers to monitor their property via a cellphone or other mobile device, this long before smartphones really took off.

Building a business from scratch sounded like fun to Slavin, so she researched the security industry, attended conferences and found little competition to the idea.

"When you think about the standard alarm system -- when you open a door the alarm goes off, that's a very insurance-based model selling peace of mind," said Slavin, 31. "We saw an opportunity to offer people the ability to monitor and control a security system through a BlackBerry, for example."

Alarm.com is now is an established company with 400,000 customers. The privately held company declined to provide financial results but said it has been profitable for years.

In February 2009, MicroStrategy sold its entire investment in the Vienna-based firm to ABS Capital Partners of Baltimore for $27.7 million. Since then, the company has been working to expand its offerings. It just moved into the energy management market, offering customers a way to remotely control and monitor their thermostats and lights in a home or business.

A user can log on to the Web and change the thermostat from work or while on vacation. Slavin said some people use their iPhones to change the temperature or turn their lights on or off while they are upstairs getting ready for bed.

"We saw an opportunity for a tech firm to build something better than the gigantic firms that already owned the home security space," she said. "The manufacturers and providers weren't bringing innovative products to market, and their technology hadn't changed significantly as the world was changing significantly."

The company does not sell directly to consumers but works with about 1,000 security distributors of all sizes throughout the United States and Canada. The distributors, who typically bundle Alarm.com's service with traditional alarm systems, pay the company a monthly fee for each customer based on the level of service they buy.


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