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Mabat Viewer: Migrating On-Premise Video Surveillance to SaaS With 90% Gross Margin

Legacy on-prem product became a SaaS with 90% gross margin

Client: Mabat Viewer
Mabat Viewer: Migrating On-Premise Video Surveillance to SaaS With 90% Gross Margin

The Challenge

What Mabat Viewer Was Facing

Mabat Viewer sold on-premise video surveillance software under perpetual licences with annual maintenance contracts. Renewal rates were declining, margins were thin due to support costs, and competitors were launching cloud-first products. The transition to SaaS meant migrating existing customers without disruption, re-architecting the video processing layer for cloud delivery, and building a subscription billing model that replaced a lumpy perpetual licence revenue stream.

The Solution

What We Built

We designed a cloud-native SaaS architecture using edge processing for video compression at the camera level, with only processed metadata and alerts streamed to the cloud — keeping bandwidth costs manageable and gross margin high. A subscription tier structure was built around camera count and retention days. Existing customers received a managed migration path with a grandfathered pricing period to reduce churn risk. Stripe handled annual and monthly billing cycles with prorated upgrades.

Mabat Viewer: Migrating On-Premise Video Surveillance to SaaS With 90% Gross Margin – solution

Results

Measurable Outcomes

Gross margin improved from 52% to 91% within 18 months of the SaaS transition
Annual recurring revenue (ARR) surpassed the previous perpetual licence revenue by month 14
Existing customer migration achieved with under 3% churn during transition
Customer support costs per account fell 65% due to reduced on-site service calls

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Mabat Viewer: Migrating On-Premise Video Surveillance to SaaS With 90% Gross Margin | SaaS Development London