Matt Boone
Case 2 · Avigilon Alta, Motorola Solutions · 2021 to 2025

I ran finance for a hybrid hardware and software business growing +40% year-over-year: $7M to $174M in revenue in four years.

$7M → $174M
Revenue
$7M → $62M
ARR
Low 40s → 65%
Hardware gross margin
Under 3%
Annual churn
Then

Two acquired cloud businesses, access and video, mostly hardware at a margin in the low 40s, in a terrible supply market.

The calls

Earn the margin with product and sales, price the way our largest partner sells, keep renewals routine.

Where it landed

Revenue 24 times larger, hardware margin at 65%, churn under 3%, and a finance team that partners with the business.

The four years, at a glance
20212022202320242025 Alta formedAva live on SAP$174M revenue Partner pricing build, 2023 to 2025 Six team QBRs, Q2 2024 to Q3 2025
The calls, in order
Call 1 · 2021 to 2025
Earn the margin

Finance partnered with product to take out the costs we could manage, and with sales to bring rigor to the forecast and a sound demand plan. Better forecasts let us order larger quantities with confidence and negotiate harder with vendors.

The honest part: some of the gain came from leaving a terrible supply market, and I say so.
Hardware gross margin 2021low 40s 202565% Forecasts moved from once or twice a year to nine times.
What moved it, largest first
Forecast rigor, bigger orders, vendor termsPricing against the leaderCosts out with productMotorola's scale
Call 2 · 2023 to 2025
Price the way the partner sells

An integrator spun off to sell cloud video and access had been selling the market leader and wanted to make us its premier vendor. I built the first business case anyone had built on a partner's own economics, and we rebuilt pricing around how it sells.

What it took: 18 months alongside the day job, across two ERPs, keeping it moving while sponsors and people across finance, sales and partner teams changed. It went live, did what the partner asked for, and was built to repeat. It hasn't spread past this partner yet.
Before
  • Fixed plus variable
  • Priced per project, by us
  • Hard to explain to its customers
After
  • Per-unit cost; the integrator sets its own price
  • Volume tiers
  • One invoice on the 1st, PDF and CSV
UnitsPrice per unit Next tier lowers every unit
Illustrative shape. No real prices.
Call 3 · Every year
Keep renewals routine

An expensive install with a small, fairly priced recurring fee makes a subscription sticky. We added deliberate stickiness and built an efficient renewal motion on contract terms and data.

Annual churn
Under 3%
Expensive installSmall, fair feeRenewals on terms and data
How people's work changed

I put my finance team in front of senior vice presidents every quarter, with my staff presenting.

Q22024
Q32024
Q42024
Q12025
Q22025
Q32025
How the business saw finance
The group that printed the numbers
→
A partner with a voice in the room
One analyst
Came from an on-premise business
→
Our recurring-revenue expert, promoted twice

Peers in finance warned me the reviews were too exposed. My answer was to let them come.

Where it landed

Revenue from $7M to $174M and ARR from $7M to $62M over four years. Hardware margin from the low 40s to 65%, churn under 3%. Ava on SAP from July 2023. The partner pricing is still live, ready for the next integrator.

What I would do differently

Tell the story of the team's results more, and sooner. The people who decide need to hear the wins as often as the delays.

Decision this case informs

Whether I know the economics of hardware with a subscription attached, can build a team aimed at where the company needs to go, and will see a hard project through when the people around it change.

Read the full story (about 5 minutes)

Then, 2021

Motorola Solutions bought Openpath for cloud access control and Ava Security for cloud video, and put them together as Avigilon Alta. The aim was a cloud video and access business that could take on the market leader. Most of what we sold was hardware, at a margin in the low 40s, in one of the worst supply-chain markets in memory. Video was expected to grow to a multiple of access. At the time, access was the larger business.

What I owned

Finance for Alta. When Ava's CFO chose not to stay inside a public company, I took on his scope: the staff accountants, a demand plan built for the first time, the finance side of packaging and pricing, and a renewals model. I became the finance partner to Ava's leadership in front of Motorola's senior executives, and led finance for Ava's move to SAP, which went live in July 2023. Every other week I brought packaging and pricing recommendations to the portfolio's senior executive committee.

The calls, in order

  1. Earn the margin, 2021 to 2025. Finance partnered with product to take out the costs we could manage, and with sales to bring rigor to the forecast. We moved from forecasting once or twice a year to nine times, agreed on units together, and built a sound demand plan. Better forecasts let us order larger quantities with confidence and negotiate harder with vendors. Redesigned products used cheaper components, and we priced against the market leader. Part of the gain came from leaving a terrible supply market, and I say so. Hardware margin went from the low 40s to 65%.
  2. Price the way the partner sells, 2023 to 2025. Our largest opportunity was an integrator spun off to sell video and access in the cloud. It had been selling the market leader and wanted to make us its premier vendor. Its problem was our pricing: fixed plus variable, set per project, which it neither controlled nor could explain to its own customers. I built the first business case anyone had built on a partner's own economics, from its data and from time on its sites. We moved it to a per-unit cost, with the integrator setting its own price to the customer, and volume tiers where reaching the next tier lowers the price on every unit. It gets one invoice on the first of the month, as a PDF and a CSV, billed on a snapshot with no proration. I accepted a few days of possible revenue leakage for a bill anyone could audit. I led it for 18 months alongside the day job, across two ERPs, with IT, renewals, legal and product. The sponsors who approved it moved on, as did people across finance, sales and our partners' teams, and I kept the work moving. It went live, did what the partner asked for, and was built to repeat. It hasn't spread past this partner yet.
  3. Keep renewals routine. An expensive install with a small, fairly priced recurring fee makes a subscription sticky. We added deliberate stickiness and built an efficient renewal motion on contract terms and data. Annual churn stayed under 3%.

How people's work changed

From the second quarter of 2024 through the third quarter of 2025, I ran six consecutive quarterly business reviews for my own finance team: 60 to 90 minutes in front of senior vice presidents, run on a roadmap, with my staff presenting, a dry run before and an after-action review after. Peers in finance warned me it was too exposed. My answer was to let them come. The business stopped seeing finance as the group that printed the numbers. The team stopped seeing itself as a patch for data the company had not engineered, and started speaking up as people who think. One analyst came from an on-premise business, became our recurring-revenue expert and a trusted partner to sales, product, IT and renewals, and was promoted twice.

Where it landed

Over four years, revenue grew from $7M to $174M and ARR from $7M to $62M. Hardware margin went from the low 40s to 65%, and annual churn held under 3%. Ava ran on SAP from July 2023. The partner pricing and the single monthly invoice are still live, ready for the next integrator.

What I would do differently

I would have told the story of the team's results more, and sooner. Changing how a large company sells takes more than getting the design right, and the people who decide need to hear the wins as often as the delays.

Source: Avigilon Alta financials, FY21 to FY25, rounded to the nearest million.
Matt Boone | Finance executive | Case 2