Security Systems News

February 2011

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14 NEWS FEBRUARY 2011 SECURITY SYSTEMS NEWS Verizon, Ascent signal ‘evolution of the industry’ T By George DeMarco he electronic security industry has been going through a metamorphosis for some time. This is a result, in my opinion, of the advent of Fortune 500, multi-national and large, well-funded companies over the last ten years. Recently, we had Ascent Media, a content provider for media and entertain- ment services, entering the security monitor- ing business in a huge way [see story, page 1]. Now we have Verizon [see story, page 1], with a market cap of $106 billion, announcing their official entrance into the “connected home” arena, offering cameras, motion sensors, smart door and window locks and energy efficient devices. What we are witnessing is the evolution of the industry, being driven by new players Roundtable Continued from page 12 In addition, the upgrades to IP systems are starting to happen. Paul S.: We have not seen adoption of IP security technology impacted by the down- turn in the economy. Expansion slowed sig- nificantly in 2009, but that is because overall industry growth was down. We have seen recovery in 2010 and we believe the recovery will continue considerably in 2011. Martha and Dan: What are some of the coolest IP innovations you saw in 2010? What do you think is the next big thing? Sam: For cool in 2010, I would say remote management of video servers across the U.S. from a central site, and mobile video surveil- lance pods deployed just in time for special events. As far as the next big thing, I would say increased intelligence in applications that take output (data) from end security devices (readers, cameras, sensors, etc.) and focused on penetrating a very large market opportunity or increasing their customer share. Energy savings and remote access into the home will become a huge driver for hom- eowners in their buying decisions and Verizon recognizes this value proposition for their customer base. It is fast becoming a race to capture the attention of customers interested in convenience, savings and security, and con- sequently capturing the recurring revenues associated with these services. Technology is allowing suppliers and service providers the ability to deliver more desirable products and services that offer more power- ful solutions for end-users. I believe these newest non-traditional players are “thinking on the fringes” of the box and are ready to storm the castle so to speak. The question suggest actions to address impending critical situations. Dieter: The remote-focused camera is one of the best innovations to come around in a long time. Hosted video also has a huge future in moving costs from the capital budget to the operating budget and opening up the available market. Resellers can benefit from hosted applications as it allows them to build recurring revenue, while end users find business efficiencies through third-party management of their security systems. Steve: Cloud is really the next big thing in security, and we’ve seen that story building for a while. In terms of innovations in 2010 (or 2009), I suppose that the most interesting thing has been the rise of more than a dozen new, hosted IP video pure plays. This sudden increase in the number of players has been facilitated by the relative ease of setting up these services is can companies, such as Verizon, deliver that personal touch expected by so many end-users? And, of course, from a regulatory aspect, is Verizon prepared to go it alone or will they be partnering with the industry? The industry says past history has proved that these companies have failed miserably; however, past history is no guarantee of future performance. From my viewpoint, I think competition is a good thing. Just don’t under- estimate your competition. Think about this: Verizon has 93 million customers nation- wide. This number is extremely compelling as they develop their go-to-market strategy and uncover their execution results. How many of their customers own homes? How much will it (using third-party cameras and third-party software), so there will be a lot of shake-out going on over the next few years. Bob: The virtualization of credentials that Paul Bodell provides flexibility. Virtualized video recording that eliminates a lot of costly servers, and the virtualization of entire security environments, enabling simulation of various events and scenarios. But the next big things are likely going to be hosted security services and the use of smartphones in security. Users, dealers and integrators are going to find that hosted services eliminate configuration complexity, and main- tenance headaches, and they will like the convenience of pay as you go security with perpetual free updates. The growing utilization of smartphones for secu- rity is going to impact how users view events and receive alerts, as well as enabling them to respond from almost anywhere. With Near George DeMarco cost them for lead generation? How effective will they be penetrating their own customer base? What is their current bundling strat- egy? What is the percentage of customers that choose all their available services in a bundled offering? This is where I offer words of caution: Be careful. Be very care- ful. At some point, they will get it right and many alarm dealers and integrators will simply say, “What the heck happened?” The current business environment offers a great opportunity for long-time industry professionals to reevaluate their game plans and consider writing new play books to effectively compete at a higher level, no matter who your competition is, today or tomorrow. SSN Field Communications- enabled cell phones, you will see vendors offering NFC credential readers. So these new phones will become your credential ... And with many of these phones having megapixel cameras and cameras for video conferencing, you may see a few being used to stream events, just like a security camera. Paul B.: 2010 was a slow year for innova- tion. H264 was probably the most significant. Video lifecycle management is very interest- ing and seems to be catching on quickly. It also seems like folks are figuring out how to make money in hosted video so that will be interesting to watch. The increased capacity of solid-state storage is making on-camera recording a viable, reliable option. The race and/or merger between ONVIF/PSIA will be interesting to watch. Jeremy: Most IP innovation has been in the video space. Intrusion and access control companies have been mostly enhancing what has been out there. I am looking for the next perspective on access control that completely removes traditional hardware while lever- aging the mobile and wireless networks. Near Field Communication, 10G backbones, mobile apps and 4G wireless will be the drivers of what’s next. Paul S.: 2010 brought with it some very cool technology, the most Paul Smith Sam Docknevich significant was applications for remote monitoring on mobile devices, including the iPad and iPhone. Another very useful advancement in technology was the move from fixed maps toward interactive mapping systems, such as Google Earth. Lastly, ASIS was all-abuzz about 3D technology. The abil- ity to see things in three dimensions allows for easier monitoring in crowded areas, such as a train platform or airport. It is also being used with mapping to see a more “virtual reality” in VMS solutions. It simplifies video analytics configuration and can reduce video analytics false alarms, since now the third dimension is known and can be used by the video analytics algorithms. SSN

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