Count Them Down: Integrators Name Top 5 Technologies for 2010
New technology has steadily changed the way the security
industry does business all along; new product offerings are what have kept the
market alive. Most recently, however, developing technologies have not only
required adoption and adaptation, but complete business model retooling!
SDM asked the 100 largest
systems integrators, as ranked by its annual Top Systems Integrators Report,
which five technologies they believed would have the greatest impact on their
businesses this year. These are the results, ranked by number of total picks.
Coming in at No. 5, and disputing the title with storage and
compression technologies, was hosted and
managed services. While not a “technology” in the strictest sense, more and
more in the industry agree that product margins are shrinking and will never go
back to what they once were, and so more and more companies are switching their
focus from products to services that will allow them to generate recurring
monthly revenue (RMR) to sustain their businesses and allow them to continue to
install low-profit “boxes.”
One managed service enabling technology that many
integrators agreed would have a high impact was Web-hosted services. “As
integrated security management system software applications become
browser-based, it gives the client better remote access during off hours and
enables more users to view the system simultaneously,” commented Integrated Security Technologies Inc.,
Herndon, Va.
For end-users, remotely hosted systems mean one less
headache — or five — and for integrators, it’s an added opportunity for revenue.
“This technology is becoming more popular with IT-centric customers as they’re
relieved of hardware/software maintenance issues. From our perspective, we’re encouraged by the
RMR sales model,” said Protex Central Inc.,
No. 4 on the list was integration
platforms. North American Video, Brick, N.J., explained the need for
convergence of security systems: “As IP moves forward systems will become one
over a shared IT protocol the customer develops, instead of separate video,
access, time-keeping systems. Customers will require more in-depth and complex
integrated systems that operate with each other.”
Among the responses, physical security information management
(PSIM) was the most popular among the solutions cited for accomplishing full
integration. Chicago-based SDI detailed the advantages of this software: “PSIM
is becoming widely adopted across industries and clients, and the demand for it
is growing considerably. PSIM offers solutions to many of the problems that
plague modern security organizations, like incompatibility of video systems,
lack of conformance to CONOPS during the response to an incident, need for
faster and more effective responses, and the ever-growing tide of information
that is overloading security staff. PSIM is becoming the ‘security dashboard’
of large organizations, and will continue to grow in popularity and evolve.”
This is also where organizations such as PSIA and ONVIF strive
to improve usability, developing open platform interoperability standards.
For some, integration may help compensate for low product
margins. “Allowing integration between disparate systems by manufacturers will
allow for more complex sales. This will increase the value of our services to
the customer, which will allow for a higher margin on those services to offset
the margin erosion we have been experiencing on equipment,” SecureNet Inc.,
Video analytics
came in at a close No. 3. This is a technology that, as it develops, has
created long-awaited applications such as face recognition and tracking, but
also has become more accessible in terms of pricing. The result is a technology
that provides opportunities for “improving value propositions,” as Henry Bros.
Electronics Inc.,
“Once we can affordably analyze the data at the camera, we
can finally do more with less,” said NAVCO,
No. 2 was wireless technology.
The fact that wireless installations have proven to be cost-effective and less
labor-intensive have been big incentives for integrators to adopt wireless
systems. Milwaukee-based Johnson Controls Inc., SDM’s Systems Integrator of the
Year, chose wireless first as a relevant technology for 2010 because “the need
to retrofit without ripping and replacing provides a low-cost implementation.”
Finding an alternative to plain old telephone service (POTS)
lines being disconnected every day was also a widely reported concern. With
POTS on the way out, ASG Security, Beltsville, Md., among others, have chosen
to be proactive with alternatives such as GSM. “We are moving our customers
toward total independence of traditional land line communication to avert
future conversion cost and to future-proof our customers’ security
communications,” the company responded.
Other companies believe more advanced wireless alternatives
will even more radically change the way they do business. “Mesh networks, IP-ready
edge devices and related technological changes will drive the traditional
installation and wiring revenues out. Integrators are going to need to develop
alternative sources of revenue to support their companies,” Surveillance
Specialties Ltd.,
Unsurprisingly, an overwhelming number pointed in the
direction of IP — including video,
access control, audio and edge devices powered by PoE — making it the No. 1
most influential technology for integrators this year.
The advantages of IP over analog systems are broadly
recognized. Integrators cited “reducing traffic and extending capabilities” by
having technology at the edge of the network, lowering “cost of implementation
of access control… by lowering infrastructure costs,” and simplifying
installations by using PoE to power security devices, among many other
advantages.
Until now, the biggest hurdles have been cost and need for
compression technologies to limit bandwidth requirements — which would also go
a long way in achieving cooperation from the “IT guys.” As many survey
participants agreed, these issues are currently being worked out. Thereafter, the
IP takeover is presumably inevitable.
“More and more people are asking questions. IP is the future. As soon as the pricing gets a bit more
competitive, analog will start taking a back seat to IP. The transition has already begun,” said BCI
Technologies Inc.,
Allied Fire & Security,
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