Attack high and low

Editor / Provider: Hayden Hsu, asmag.com | Updated: 5/10/2013 | Article type: Security 50

Established in 1998, Milestone Systems has come a very long way in assisting the security world's transition to IP-based surveillance architecture. “The more (channels), the merrier” has been the growth ingredient for most open-platform VMS solution providers, but things are changing as global economy enters into a plateau. Sunny Kong, the newly appointed Sales Director for Asia, shares with asmag how he will lead the team to bring the VMS market leader into new markets in the region.

Currently, top markets for Milestone are Korea, Thailand and Singapore, as the company focuses on growth verticals like city surveillance, transportation, retail and finance. Vertical managers and specialist partners are empowered through professional training and certification, guaranteeing that only the most apt solutions are brought to end users.

**Don't forget to check out video interviews!**

Multilayered
The Danish headquarters has high hopes for emerging economies, and Asia is certainly one of them. As growth targets are set between 30 to 40 percent, Kong plans to enter into relatively new markets, such as China where traditional CMS/analog systems rein, with Milestone's comprehensive portfolio (Professional, Corporate and Interconnect) and recharged training and partnership programs, to address various solution requirements from a multitude of site scenarios.

Tomorrow's distribution model

Editor / Provider: Memoori Business Intelligence | Updated: 4/7/2013 | Article type: Hot Topics

The traditional distribution model for physical security products right across the globe was often referred to as “box shifting;” it offered products off the shelf but with few value-added services, according to a recent Memoori Business Intelligence report. This is now rapidly morphing into a sophisticated system delivering value-added services that its clients are now demanding.

There are five main reasons why the change in the structure of the physical security industry is causing the distribution model to change.

1. Manufacturers have over time extended the range of their products, which now have a rich layer of features and capabilities. The supply chain must be able to understand and identify where their clients can benefit from them.
2. A strong brand and channel infrastructure giving reach and efficiencies. Marketing across the globe can now be achieved by small companies through the Internet at lower cost and this has increased the number of suppliers and solutions.
3. The pace of innovation is speeding up. Edge based storage and advances in analytics are creating more and more applications for IP video.
4. Open standards are starting to take a hold. This will open up competition even further and will reduce the barrier to smaller companies. Real competition will then kill off weaker companies and consolidation will come about through open market forces.
5. Increasing demand for full integration across all aspects of physical security solutions and now the business enterprise.

The channels of distribution in the physical security industry are changing to take account of these factors, particularly in the video surveillance sector, where IP network products have taken a major leap forward in the last three years requiring new skills for designing and installing systems. In the vast majority of cases the manufacturers don't want to be directly involved in providing these services to the end user and they therefore require the distribution chain to take on these responsibilities.

This has required new and existing suppliers to set up under the broad classification of distributors but broken down into resellers, system integrators and solution providers. Normally they buy directly from the manufacturer and some have a strong partner relationship to one or a few brands. The term distributor is still used by larger companies from the traditional supply chain and new ones from the information and communication technologies (ICT) business, but these companies now offer to supply all the components necessary to deliver a solution to installers. In addition, many of these companies will also operate straight online sales. Finally, a few manufactures normally having specialist products selling to a few verticals have opted to sell direct to the end user and install themselves. So one size does not suit all. However, for those manufacturers that want to obtain huge global scale (hundreds of millions in revenue) they need to operate through all the distributor channels, but not confuse the market by selling direct.

Since 2006 there have been major changes across the developed markets of the world in how products reach the end user. Our research shows that the value of product passing through the distributor channel has fallen off drastically from over 50 percent in 2006 to around 30 percent in 2011. Their market share has been taken by direct sales to resellers, system integrators and solution providers which have increased share to approximately 50 percent in 2011. The installer system integrator route has been joined by specialists from the ICT industry, and it would appear that the distributors have lost most of their share to these companies that have partnered with the manufacturers of IP network products to offer packaged solutions.

Whilst these trend appear to be most marked in the developed markets of Europe and North America similar trends are now being realized in Asia, and at the same time are now taking place in the access control market; but as yet it's not as pronounced. Getting IP network products to market is going to be a challenge for distributors and one they will have to meet because it will eventually take 100 percent of the business.

These changes are not so startling when taken over a six year period, but their consequences are now being felt, with the recent exposure of weaknesses in the distributor chain and the major European distributor Norbain's demise and fall into receivership. IP network products do not lend themselves to the traditional box shifting treatment of analog products and require more sophisticated application of skills; but few distributors have seen the need to work with the manufacturers to acquire the necessary skills.

Distributors that have become more IP savvy, such as the AES Group and Digitalcom in Thailand and Tri-Ed / Northern in the USA have been able to maintain their share by taking on more system integrator duties especially with regard to system / network design and commissioning. But not all distributors have taken up the challenge and have opted to beef up their eCommerce operations, which may well work provided they can achieve scale on this low margin business.

There is a place for the distributor but not in the traditional role, at least not for long. Knowledge is paramount, especially in a market increasingly connected through integrated building and security environments and bringing together packages that meet these needs and the IT services that they require is now necessary across the distribution network.

The Controlware Group has provided IT communications networking solutions since 1980. During this time Controlware has accumulated extensive experience in the design, delivery and maintenance of cost-effective IP networks. Since 1997 they have also specialized in the integration of applications such as IT security, storage and video surveillance systems. They can now offer total packages of IT communications networks, CCTV cameras, encoders, VMS, recording, and video content analytics systems. They work closely with installer and integrator partners to provide security systems for users from all vertical markets. Their value-added services range from consultancy, product advice and supply through to systems design, project management, commissioning, maintenance and installation through their channel partners.

Alliance and partnership is playing a major role in winning market share in the security business as manufacturers extend the range and depth of their alliances and partnerships with other manufacturers of adjacent products and their system integrators and solution providers. More formal arrangements of sharing data within the distribution chain has resulted in many new solutions for the end users going well beyond improving security. In the last 12 months we have identified more alliance arrangements between manufacturer's distributors and system integrators, working together to provide a solution for a particular vertical market and sharing the development and promotion costs.

Some 2012 IFSEC exhibitors showed a number of case studies on how business intelligence can be gained through IP video surveillance systems brought together through partnerships. Two companies Axis Communications and Panasonic had displays showing how, in particular vertical markets, they had used video streams to provide business intelligence. In both case the concept was instigated by the camera manufacturer as a means to increase sales, but they have worked with other suppliers of surveillance products and access control systems to produce a seamless solution that fitted the needs of the end user. In addition, they have worked with system installers and distributors not only to orchestrate the marketing sales strategy, but identify new applications where they can add value for the end user.

The trends show that alliance has moved on from just joining different manufacturer's products together to providing a total solution between all the stakeholders and is driven by what the end user needs in order to deliver real benefits over and above improving the security performance. So if you want to compete with the top camera manufacturers you not only need to be up there close on performance, but also drive innovation in providing solutions that deliver more value-added and a quicker ROI for the buyer. The distribution network has a vital role in making this happen.

Increasingly the shape of the market is changing as security systems supplied for new projects are increasingly delivered as fully integrated systems, whereas in the past they were supplied as three separate and discreet systems. This has changed the balance within the routes to market with more of this business going through resellers, system integrators and solution providers.

We believe that as the physical security manufacturing business further consolidates the distribution network will be forced to follow suit, and over the next five years we shall see fewer but larger distributors playing an enhanced role. The market share of the resellers, system integrators and solution providers will increase as systems become more sophisticated and integrate with the business enterprise.

Good products sell well but they sell better when distributed through the right channel.

What makes IP cams tick

Editor / Provider: Tevin Wang, a&s International | Updated: 3/21/2013 | Article type: Tech Corner

According to IMS Research's (part of IHS) 2012 forecasts, the global market for IP-based video surveillance equipment is expected to surpass US$5.4 billion this year (overall video equipment market at roughly $13.6 billion). As competition continues to intensify, a&s looks into how mainstream megapixel cameras differ and differentiate in terms of features, promotion, and after-sale warranties and services.

Today's mainstream IP cameras are 2-megapixel (MP) ones. “Even if a camera captures images in higher resolution than 2-MP, major displays support full HD only and the whole image cannot be shown in one display,” said Alex Iida, Senior Manager of Visual Security Solutions for APAC, Sony Electronics.

As more pixels do not necessarily translate to clearer and more usable footage, features that need to be highlighted and compared lie elsewhere. “In fact, the higher the resolution, the significantly less the sensitivity is. This is one of the most important considerations in security applications, especially in low-light environments,” Iida elaborated. “Capturing images with higher resolution means data sizes will be larger, which cause problems in network bandwidth and storage, and result in higher expenses in integration and implementation.”

Sensitivity & Bandwidth
Image sensors are the deciding factor between good and excellent megapixel cameras, as light sensitivity becomes tricky with more pixels crammed onto the same piece of silicon. Sony has dedicated significant R&D efforts to this area. “The aspect ratio of our image sensors in the 2-MP cameras we have developed and adopted is 16:9 native. Compared to conventional 4:3 or 5:4 image sensors, 16:9 ones enable a larger pixel size for each pixel.” Thanks to this bigger pixel size, even with full HD resolution at 2-MP, sensitivity improvement is clearly visible.

As a pioneer of network cameras, VIVOTEK has also invested significantly in optimizing image quality, with respect to brightness, contrast, gamma and sharpness. “We have many parameters for image tuning and testing,” said Steve Ma, Executive VP at VIVOTEK. “Another difference would be bandwidth control. For more efficient bandwidth allocations, we advise our clients and integrators on ideal camera settings, such as SVC, CBR, cropping and local storage.” SVC provides more effective bandwidth and processor resource management by simultaneously dividing video data into multiple layers at different resolutions, picture sizes and frame rates, to meet the requirements of different client devices and network conditions. CBR offers flexible bit rate control in terms of maintaining stable bandwidth and allows users to simultaneously set an upper-bound mode for live viewing and choose an average mode for recording.

Multistream
Multistreaming means a number of video streams with different types of compression, such as H.264 and M-JPEG. These streams facilitate bandwidth-efficient viewing and recording. Streaming capability is highly dependent on the camera's processor and brand. Some make the most out of this feature as a key differentiator, while others do not believe it is a game changer.

Most manufacturers offer at least two streams, with some supporting three or even four independent streams. “Currently in our high line portfolio, we have three image sensors representing 720p and 1,080p resolutions. The sensor defines the maximum resolution for four streams and the type of streams that can be generated in HD streams; SD or HD streams, as a copy of the first stream; i-frame only streaming for recording; and MJPEG streams,” said Ad Biemans, Product Marketing Manager for Video Systems in EMEA, Bosch Security Systems.

Avigilon has a proprietary HD-stream management feature. “The feature enables users to manage video signals through the transmission and storage phases, without losing any of the visual quality of the signals,” said Rick Ramsay, Senior PM. “With this feature, only the requested portions of captured images are sent to operator workstations, optimizing the amount of bandwidth required. In addition to reducing client bandwidth usage, the feature also greatly reduces the processing load on the remote client, offering a unique way of working with multiple streams of H.264-compressed video to overcome many trade-offs. When a single stream is zoomed in for more detail, that stream will be automatically sent in full resolution while other streams are kept in low resolution for an overview version of the image.”

Verticalized Approach
Vertical segments such as commercial buildings, education, retail, transportation, city surveillance, traffic monitoring, airports and banking have specific demands for image clarity. “We have a range of cameras that are designed to be used in the most demanding conditions. One example is a vandal-proof corner-mount camera which is specified for prisons, hospitals and elevators,” Biemans said. Another example would be its ALPR line for vehicle surveillance and intelligent transportation applications.

Others like Axis Communications and Brickcom design and manufacture cameras for desert-like environments. “In desert areas — which make up about one-third of the earth's land surface — there are mining sites, oil and gas fields, pipeline installations as well as cities that need surveillance cameras that can withstand extreme heat and harsh conditions such as sandstorms,” said Erik Frannlid, Director of Product Management at Axis Communications. “It is critical for cameras with moving parts to have a high enough operating temperature to ensure optimal and reliable performance. The reason is that a camera with direct exposure to sunlight can be heated to a temperature of at least 15 degrees Celsius over the surrounding temperature, so an air temperature of 45 degrees may mean that the camera has to operate at 60 degrees. Our climate control system can handle rapid temperature changes to eliminate condensation.”

Similarly, Brickcom has launched cameras exclusively for places such as Russia, the Middle East, Thailand, Indonesia, Australia and New Zealand, for their volatile weather conditions. These cameras are IP67-rated with built-in fan and heater to cope with outdoor environments, said Max Fan, Sales Director for Brickcom.

With the rapid growth of cities, Hikvision is eyeing the opportunity of traffic monitoring. “With detailed recognition and fast image capture speed, our solutions bring smarter surveillance and relief to traffic monitoring,” said Adler Wu, PM at Hikvision Digital Technology. “The improved resolution allows authorities to not only assess situations more quickly, but to allow them to respond in a timely manner.”

Regardless of the countless opportunities that megapixel cameras bring, manufacturers are advised to look at creative service models and solution offerings, to stay in business amid difficult trading conditions. Although reliability has always been key, it is financially and operationally sound to think outside the box to cater to the needs of customers of different verticals, regions or even cultural practices.

Making a Sale
The HD benefits are clear. What is not clear is how users should approach this new technology and what they should expect from it. As seeing is believing, live demonstrations are gaining popularity.

Brickcom started out as a network gear provider and prefers using toy trains to display full HD images via wireless transmission in real time. “We also designed an interactive demo of 2-MP cameras to highlight the plug-and-play, easy-to-use and auto-focus features,” Fan said.

With the omnipresence of the Internet, Secubest puts detailed product information and live demonstrations of its 2-MP cameras online. “Customers can experience live HD footage, along with the durability and design of our cameras through online demos anytime,” said Eva Chu, GM of Sales and Marketing at Secubest.

Sensing the proliferation of social-media marketing, LILIN has readjusted its marketing and promotional strategies to better cater to local taste and unique requirements, with the help of its seven subsidiaries worldwide, said Steve Hu, PM at Merit LILIN.

Securing the Investment
Customers do not want to purchase disposable cameras that need to be replaced or require maintenance constantly. Camera maintenance can be a huge expense, which is why end users pay attention not only to specs, features and algorithms, but also to warranties and after-sale support. Most manufacturers provide two- or three-year warranties. If other types of warranty are requested, some solution providers offer extension programs.

To further differentiate itself, IQinVision offers an all-inclusive five-year warranty on the majority of its products. “The only products which come with our shorter, three-year warranty are those with auto back focus or motorized zoom and focus lenses,” said Alex Doorduyn, Director of Product Marketing. When certain models are no longer manufactured, “we charge for repairs but still offer free telephone support for cameras outside of warranty.” IQinVision believes that customers should not allow manufacturers with poor-quality products and manufacturing processes to dictate the life span of a technology, especially in such a vital industry like security.

Thai university conference center boosts sound and video via IP-based system

Editor / Provider: Bosch Security Systems | Updated: 1/7/2013 | Article type: Education

End User
Prince of Songkla University International Conference Center (PSUICC) was established in commemoration of the 60th anniversary of His Majesty King Bhumibol Adulyadej's accession to the throne. PSUICC is Thailand's newest convention center in this vein and the largest in the country's southern region. It is situated within the Hatyai campus of Prince of Songkla University and located just nine kilometers from Hatyai International Airport. The conventional center is also in close proximity to the full spectrum of modern amenities and features splendid southern style architecture.

PSUICC is equipped with state-of-the-art multi-media technology. Thus, this excellent convention center is the pride of the south.

Business Objective:
The southern star convention center provides an international scale convention center which is capable of hosting the full range of leading-edge local and international events. Hence, high quality as well as technology products including outstanding security and communication systems were required to be installed within the center.

Solution:
In conjunction with the Bosch partner Libra Network and Security, the persons in charge of the PSUICC decided to rely on Bosch Security & Communication Systems. Thus, CCTV, Congress and Prosound systems were installed around the center.

The purpose of the CCTV system is to observe, recognize and identify everybody sojourning in the area. Therefore, recorded images are relayed to the control room, where they are finally shown on the video wall for the people who are in charge of the technology. The system provides a complete overview of what is going on in the center with the help of 19 Dinion IP cameras, 27 Dome cameras as well as 47 other cameras which are supported by two DiBos DVR and two AutoDome controllers, Moreover, it makes possible to zoom in on specific situations or areas in order to discuss what measures should be taken.

Full control of meetings and discussions without being dependent on any operator is provided by DCN wireless systems consisting of 8 basic central control units, 80 concentus basicunits as well as 8 concentus chairman units in every conference room. The system can be easily extended and provides ease of use for every of its various functions, its unique features as well as its state-of-the-art system.

With the help of Electro Voice (EV) Prosound systems the ideal solution for each required situation is provided. Thus, PSUICC could benefit from EV's technical expertise and long years of experience in this area yielding a product portfolio that is at the same time comprehensive and of uniform excellence.

Result:
PSUICC is very pleased with the benefits of this flexible and easy-to-use conference and CCTV system. Hence, it helps a lot to facilitate the numerous meetings taking place in the center nowadays.

Once more PSUICC trusted in Bosch's high quality products, its experience and competence. Thanks to the reliability of the products and the excellent work of the Bosch dealer Libra Network and Security.

Scoping out Southeast Asia in 2013

Editor / Provider: By Alyssa Fann, a&s International | Updated: 12/25/2012 | Article type: Hot Topics

The International Monetary Fund has cut global growth forecasts twice since April 2012. Despite widespread economic woes, security is keeping its momentum in certain regions, with Southeast Asia being particularly noteworthy given its game-changing population, rich natural resources and urgent needs for both public and private infrastructures.

The American Chamber of Commerce estimated that close to US$1 trillion worth of infrastructure projects will be opened to foreign investment in Asia over the next 10 years. "As APAC continues to attract investments from IT companies, we are expecting to see advanced electronic requirements from such companies in 2013," said Alan Parker, Director of Global Accounts and Vertical Markets for Asia, Tyco International.

Indonesia and Thailand, in particular, should not be overlooked. “Government expenditure in security is unlikely to decrease,” said Patrick Lim, Director of Sales and Marketing for Ademco Security Group. “Businesses that have done well will continue to spend on security, especially the ones dealing with expensive parts and high-value goods.”

Terrorist attacks, large-scale natural disasters and rising crime rates have raised the general public's security awareness; government initiatives are also helping fuel the demand and market for security systems and services.

Indonesia
In Indonesia, the demand for security equipment stems from the growing needs of various verticals, which range from the government sector to the booming construction, commercial, industrial and residential sectors. In particular, demand for security and safety equipment in industrial plants, commercial buildings, public facilities, oil/gas facilities, mining operations, airports and seaports has increased substantially.

On May 27, 2012, President Susilo Bambang Yudhoyono announced the country's Master Plan for Acceleration and Expansion of Indoneisa's Economic Development (MP3EI), which will carry the country through to 2025. The MP3EI aims to make Indonesia, the 17th largest economy in the world, one of the world's 10 biggest economies by 2025, by taking GDP to $4.5 trillion and increasing the per capita income from the current $3000 to $15,000. In 2012, for example, the Indonesian government planned for 110 projects worth almost $41 billion for the eight designated sectors in MP3EI — agriculture, mining, energy, industrial, marine, tourism, telecommunications and the development of strategic areas. This creates a pressing need for infrastructure development and a huge potential market for the security industry to tap into.

Thailand
Having recovered from the devastating floods of 2011, the Thai economy is expected to grow 6 to 8 percent in 2013, estimated US Commercial Service. Not just another high-growth market in Asia, Thailand is also the largest security market in Asia with plenty of security opportunities. The Thai security market was expected to grow 30 percent by the end of 2012; the Thai government would account for 70 percent of this growth.

Government needs for security stem from a recent counternarcotics drive; border tensions with Cambodia that require higher technology in surveillance and transport infrastructure; a general increase in security expenditure for Bangkok and the south due to ongoing violence since 2004; and rising crime rates. According to US Commercial Service estimates, government verticals account for a large share of the security market at 50 percent, while retail and office complexes account for 30 percent, and industrial facilities and universities take the remaining 20 percent.

Over the last two years, growth in the adoption of IP-based security technology has been phenomenal. This trend is expected to continue, especially with a nationwide fiber-to- the-home project that will rev up data speeds to 100 Mbps. Hence, the IP market is expected to grow 30 to 40 percent; not only are private sectors seeing more IP-based product adoptions, but government projects are also specifying IP-based systems.

In the following year, major projects that will bring opportunities to the security industry include the following. The Thai government has pledged up to $5.6 billion over the next five years for the development of its railway systems. There are also plans to expand the Bangkok Mass Transit, the Laem Chabang Port, the Suvarnabhumi Airport, and to invest in high-speed train networks, along with two new prison facilities. In the prison vertical, the government is planning to introduce electronic prisoner monitoring and combat the smuggling of contrabands such as mobile phones.

Commercially, industry experts estimate that the completion of four large shopping complexes in Bangkok, namely Central Plaza Rama IX, Terminal 21, Mega Bangna and Central Embassy, will generate 750,000 square meters of additional retail space in need of security systems and services.

Smart tech, safe house, simple life

Editor / Provider: By Tevin Wang, a&s International | Updated: 11/27/2012 | Article type: Tech Corner

Rapid advances in video, communication and networking technologies have driven up adoption of home automation and control systems considerably. Homeowners can now, more easily than ever, keep an eye or ear on their property and loved ones, through smartphone video streams, text messages or app alerts, to look or listen in on any anomalies and take control of security, safety, automation and HVAC systems in real time, on the go.

- Globally, the home automation (HA) and control systems market is estimated to grow at a CAGR of 16.1 percent, from US$16.9 billion in 2011 to $35.6 billion in 2016, according to MarketsandMarkets' research. Over the next five years, the managed HA market will grow at a CAGR of 60 percent between 2012 and 2017, based on ABI Research estimates. Annual worldwide revenues from the residential remote video monitoring and surveillance market were projected, by IMS Research, to surpass $480 million by 2013.
- According to the US “National Crime Victimization Survey,” more than 17 million US households experienced property crimes in 2011. The US market for HA devices and systems was approximately $3.4 billion in 2011, and is expected to exceed $5.5 billion in 2016, representing a CAGR of 10.5 percent, according to an Electronics.ca Publications report; about 58 percent of the market goes to lighting, home entertainment and security systems, and the remaining 42 percent consists of HVAC and energy management.
- The growth of the APAC HA market is fueled by high-speed broadband connections, developments in home networking and advances in 3-G communications technologies, according to In-Stat. Japan and South Korea hold the leading positions, while Australia and New Zealand present high development potential. Among these, South Korea has the highest penetration of HA systems and services in the region. China, Taiwan, Thailand, Hong Kong and Singapore are potential markets.
- Remote home security is growing rapidly in Europe, at a CAGR of roughly 20 percent, as cloud-based services become more readily available to householders, according to IMS Research. Although Europe is a strong market, it is only 40 percent of the size of the Americas market. Prominent service providers include CameraManager.com, Y-Cam, NeoCam, Logitech, D-Link, VSG, IPeye, 1000eyes and Virgin Media's IP CCTV. Research from Frost & Sullivan indicates the European HA market will reach $300 million by 2015.

HA in Various Capacities

Basic integration is where a cause-and-effect relationship is established; for instance, a detector will send a signal directly to a relay that will switch something on or off. No programming is required. Full integration involves constant monitoring and controlling, and programming will be required. For instance, if an alert is sent to the control panel, the control panel will then signal the monitoring station to dispatch emergency services to your home. Most building codes today require hardwired smoke detectors be placed in homes, with battery-powered type detectors being used as backup only.

 
Geo-fences can now be set up indoors, to allow for access to specific areas of the house; this is particular useful when temporary help (such as babysitters or contractors) is needed and the homeowner is not always around. Some service providers now add two-way audio to control panels to provide verbal verification or deterrence, preventing unnecessary dispatch of first responders, which can be costly and punishable by hefty fines. Surveillance cameras are offered in advanced packages by some; any motion in the house triggers a text, app or video verification, and a prompt for proper response.

Approximately 56 percent of the average home's energy usage is on HVAC, according to the US Department of Energy. Some service providers offer more efficient energy management by connecting thermostats, refrigerators, lights and window shades to the control panel. Lighting control is another HA feature; dimmers and switches are integrated and programmed with motion detection so that lights can be automatically turned on or off wherever and whenever necessary. All the functions can be combined with physical security and intrusion detectors, and be controlled and viewed on the same control panel or a smartphone or tablet computer.

 
The US market for telemedicine devices and services will be worth more than $3.5 billion by 2014, according to Pike & Fischer research. A home medical-alert system includes a two-way voice intercom with a pendant. In the event of an emergency with a press on the intercom or pendant, monitoring personnel will send help, dispatch an ambulance or notify a relative or neighbor. Other processes suited for residential machine-to-machine telemedicine include diabetes, blood pressure and cardiac rhythm management monitoring. Telehealth is often less costly and produces better health results than occasional checkups and repeated hospital stays, according to a New York Times interview with Dr. Steven Landers, Head of the Cleveland Clinic's home health care unit.

Downs & Ups
Homeowners are staying put in the wake of the current housing market, said Sean Goldstein, VP of Marketing at Crestron. “Instead of moving, they are adding value to their homes in the form of HA. We see this as a tremendous opportunity for HA.” To maximize security, safety, convenience and energy savings, all the disparate systems should be intelligently integrated and controlled in a fundamentally different and new way.

Price is still the biggest growth inhibitor for HA systems. To manufacturers, how to keep costs down while offering quality and easy-to-use products and satisfying services should be a key development focus. At the end of the day, HA is not rocket science; with the maturation of technology and education of the market, the HA market is expected to prosper.

With larger and clearer touch screens, user can access more information without constant button-pushing or screen-sliding. Geographic-information systems (GIS) can be integrated with HA. In case of emergency, the message or alarm sent by the HA system could integrate GIS coordinates so that dispatchers can contact the proper authorities with specific directions, thus speeding up response time and minimizing damage.

Customizable HA systems are now possible, as flexible packages or personal designs are a key to winning the heart of the client. “A revolution is taking place in the appeal, deliver, support and pricing of HA systems, as the technology moves from being a high-ticket investment to becoming another newly essential monthly service,” said an ABI Research analyst. Easy, reliable and stable HA systems that are also fun to use are the key to winning greater adoption.

A Nov. 2012 study from IMS Research projects that the global market for smart-home devices will more than quadruple in the coming five years, growing from less than 20 million nodes in 2012, to more than 90 million in 2017. One of the main drivers is the increasing number of service providers branching into the managed home control space. A number of American telcos and security providers, such as ADT, Verizon, Comcast, Rogers Communications, Time Warner Cable and Cox Communications, are already offering a range of smart-home solutions via a cloud-based managed service approach.

Similar offerings are also either deployed or in the pipeline for European counterparts, such as Swisscom, Bouygues Telecom and many others. Some companies are instead opting to develop and white-label a common platform for partner companies, as Deutsche Telecom is doing with the Qivicon solution.

To date, ZigBee and Z-Wave have been favored by a number of managed service providers. According to Lisa Arrowsmith, Associate Director of Connectivity at IMS, “Z-Wave and ZigBee have both gained strong traction in the North American market, deploying in managed home systems which are predominately aimed around home monitoring — with a high number of relatively low-cost nodes, such as magnetic contacts as well as in comfort and convenience applications. In the European market, energy management is set to be the key driver of managed home system deployments, with devices such as smart plugs and HVAC controls. Here, there is a more fragmented approach to connectivity technologies, with a range of standards and proprietary technologies being used.”

While ZigBee and Z-Wave dominate the managed service market today, a range of other low-power wireless technologies, such as EnOcean and DECT ULE, are set to take the stage as shipments of these technologies gain traction. Arrowsmith continued, “The energy-harvesting properties of EnOcean can be attractive for service providers and consumers alike, reducing maintenance and support costs. DECT ULE will also see significant uptake in managed systems, as it can enable existing DECT gateway customers to add home control functionality via an over-the-air software upgrade.”

Cultivating security awareness in Thailand

Editor / Provider: Secutech Thailand/Messe Frankfurt New Era | Updated: 11/21/2012 | Article type: Hot Topics

Today at Grand Mercure Hotel in Bangkok, Secutech Thailand hosted “Together We Promote Security,” which welcomed approximately 100 security professionals and media. The event started with contract signing between international event organizer and publisher Messe Frankfurt New Era Business Media (MFNE) and TTF International, a trade show organizer, television producer, magazine publisher and online directory operator in Thailand.

“TTF has more than 30 years of experience in the trade show business, with a particularly strong local network in the building and architect industry,” commented Parson Lee, MD of MFNE. “This local touch will add great value to Secutech Thailand in terms of visitor synergy and event promotion.”

Chatree Munka, MD of TTF International added that the two organizations will pool resources to promote the Secutech brand and associated events throughout the country, as well as neighboring countries such as Cambodia, Laos and Myanmar — as Thailand is well-poised to be the center of the ASEAN Economic Community.

The event “Together We Promote Security” called for closer collaboration among international and local solution providers and stakeholders/decision makers. A themed panel discussion also took place, with APSA Thailand, Building Safety Inspectors and Officers Association, Thai Security Association, AES, Axis Communications, Chubb (UTC), Bosch Security Systems and TSolutions in attendance, to talk about how they see local developments next year. They all agreed that Secutech Thailand is the platform of choice to promote security, to connect and to educate.

Secutech Thailand 2013 will take place on July 3 to 5 at BITEC in Bangkok.

Bigger Ain't Always Better

Editor / Provider: Hayden Hsu | Updated: 11/13/2012 | Article type: Hot Topics

For more than three decades, Ademco Security Group has been delivering comprehensive and integrated electronic security, fire detection, monitoring and business intelligence systems to more than 5,000 institutional, commercial and government clients across Asia. With a strong base in Singapore and an expanding regional footprint in Malaysia, Indonesia, the Philippines, China, Thailand and Vietnam, the group and its success would not be possible without the two Koh's.

Founder T.C. Koh came from a modest family, and has always been a driven pioneer and salesperson. In his long and decorated security career, he held many directorship and advisory positions at several security technology start-ups in the U.S., some of which became established names in the industry. When Ademco (now Honeywell) wanted to set up shop in Asia in 1977, it headhunted T.C. and appointed him Regional MD. “The electronic security and safety industry was virtually nonexistent in Asia back in the 1970s, so we had to conduct needs analyses and create the business from scratch,” T.C. recalled. “We went to guarding companies and electrical engineering companies to train and convert them into electronic security and safety. New sales channels also had to be created and fostered.”

Competition was limited at that time, as most companies were not even aware of the technology available to them. Within a short time, the business flourished as T.C. expanded the regional headquarters and established offices in Singapore, Malaysia and Hong Kong.

Several turns of events in the 80s led to an eventual management buyout from the original Ademco, in which T.C. quickly turned the APAC division into an independent total security solutions provider, with an emphasis on alarm-monitoring services. With T.C.'s know-how, experience and credibility, Ademco became a founding member of the Security Systems Association of Singapore, and maintains membership status with the Association of Certified Security Agencies in Singapore, Security Association of Singapore, US Security Industry Association and US Central Station Alarm Association.

Koh Junior
Then entered Toby Koh, T.C.'s son. Toby joined Ademco in 1995 as Business Development Manager and became Executive Director in 2002, which led to his current group MD appointment. His career in the security industry also saw him hold the positions of Executive Director at Shepherd Systems, a technology company in remote digital video surveillance solutions based in Sacramento, California, and Executive Director at Visual Alarm Verification, a technology company in remote video transmission systems based in Miami, Florida.

“When I took over, we moved on to a full-service systems integrator model with central monitoring capability because the distribution model was badly affected by the free but oftentimes confusing flow of information on the Internet,” Toby said. “We saw an opportunity in providing mid- to high-end solutions to the market, and distanced ourselves from being labeled ‘box movers.' We started to look more at the risk profile of our client and customize a system that solves their security problems and enhances their business operations.” Toby also played a key role in helping update the local Fire Standards and Legislation in using wireless transmission for fire alarm-monitoring purposes. Under Toby's directions, Ademco has established itself as an innovative solutions and services provider, with a growing regional presence.

“Risk profile was vastly different back in the day. Loss prevention in terms of goods and valuables was almost always the main security objective,” T.C. echoed. “In present-day risk management, we are concerned not just about loss of goods and valuables, but also intellectual propriety, confidential information, business data, staff safety and so on. Risk profile is evolving constantly and sometimes rapidly, and a holistic security and risk management approach is required.”

For Toby, it is of paramount importance that systems integrators (SIs) stay informed of the latest technology that matters to their target market, but at the same time not over-specify a solution that may not be the best fit for their client. “SIs must refrain from deploying the latest technology just for the sake of it. Make use of technology to improve your service delivery — that is one key differentiator between you and your competitors. Make use of technology to increase the turnaround time to solve your client's security and business problems.” Ademco maintains a knowledge database, which its technical staff can access on the move from their wireless-enabled tablets. “No one can remember everything, so having knowledge available on demand is vital,” Toby stressed.

Second Coming
In 2007, U.K.-based multinational property management specialist Rentokil Initial acquired Ademco, and T.C. became an advisor behind the scene. The financial crises in the U.S. and U.K. later on led T.C. to another management buyout, bringing Ademco and a group of security business entities in Asia back to private ownership. T.C. is now Chairman of Ademco Security Group.

In infrastructure and technical support, Toby's team revamped their back-end system to be a fully cloud-based platform. “We were an early adopter, having launched our cloud platform about three years ago. Our engineers carry laptops or tablets with them for service calls. We have gone virtually paperless,” Toby said. On top of saving 20 40-foot trees per year, this upgrade has enhanced project and service efficiency several fold. “In the past, we would write on a carbonized service report form. Copies were required for the client, accounts department, customer service and technical support. Deployments are now even more precise and cost-effective.” Across the various regional offices and mobile workforces, remote access to client/contract details, technical information and field assignments is possible through any Internet browser, easing internal IT service maintenance and workload significantly and saving travel costs.

Ademco has and continues to execute projects across most Asian countries, following its clients as they open new or retrofit existing facilities. “We intend to increase our geographical footprint across the region to 10 countries within the next few years. We are priming ourselves for a public listing either in Singapore or Hong Kong within two to three years. In fact, we could go public at this time if we want to, but our team would like to grow our business to a size which makes it even more compelling for investors,” Toby shared.

Ademco Security Group now has offices in Singapore, Kuala Lumpur, Jakarta, Manila, Cebu City, Shanghai, Shenzhen and Chongqing, with staff of more than 400 and a vision to reach 500 by the end of 2013. One of the group's strengths is to provide consistent quality of service across the region, and it has won (over the likes of Honeywell, Johnson Controls, Siemens and Tyco) and implemented prominent projects such as Resorts World Sentosa, Resorts World Manila, Exxon, Chevron, Hewlett Packard and many other MNCs.

For today's SIs, being able to remain nimble and adapt to current market conditions is a must. “There is growing demand for clients to outsource their security function to us, including remote monitoring or putting our staff on their premises. That's why we are offering a full managed-service portfolio to our clients who choose to focus on their key competencies and leave security matters to us. We also help our clients who do not wish to increase capital expenditure by renting equipment as part of our offering. It is a holistic service with hardware, software, people, and, most importantly, process and protocol control to ensure that service levels remain at an agreed level, if not better.” Ademco has also been using its security platform to assist its clients to better manage their businesses through integration with their operations, whether it is warehousing, logistics, human resources and so on.

The challenge is always to get the best possible talent to execute, while still meeting budget. “The next challenge is to train and mold them into a cohesive working team, and substantial effort has to be placed on staff development and retention strategy. Currently, we have a very international team at work, and managing human capital takes up a full one-third of my time,” Toby said. “Outside of Singapore, most of our expansion efforts are joint ventures with a local partner. I am a firm believer that local know-how is incorporated into every business decision. Getting a partner that shares the same goals and managing expectations are the key to a long-term, mutually beneficial relationship. I always talk it out with potential partners, hashing over all business possibilities and scenarios, just to make sure we are clear about each other's thought process and concerns.”

More than three decades of dedication, vision, thought leadership and precise execution have turned Ademco into a self-made, trend-setting, ever-expanding multinational systems integrator and services provider. It will be interesting to see where the dynamic duo is taking the company and Asian security industry for the years to come. Stay tuned!

About T.C. Koh
The concept of standardization in security and safety was also brought into the region by T.C. He was instrumental in helping draft the Singaporean Fire Standards and Legislation in the 1970s and 80s. When elevator robberies were common back then, he spearheaded the national campaign to put panic alarms in elevators. In the late 80s, T.C. rallied for schools to beef up their security and safety measures. In the 90s, the visionary proposed the adaptation of a reliable wireless packet data network for fire alarm signal transmission, putting Ademco almost a decade ahead of the competition in alarm monitoring.

About Toby Koh
Toby graduated from the University of San Francisco, majoring in Finance with a minor in Economics. He had been a corporate banker for three years, focusing on IPOs and syndicated loans in the property and construction industry. Toby has consulted for various ministries and statutory boards of the Singapore government, especially in Class A high-security requirements, which include proposals in times of national emergency. He has also provided consultancy for a number of mostly American and European MNCs in the region. His expertise revolves around crisis management, loss prevention, and physical security audit and design.

Thai market spiced up

Editor / Provider: Hayden Hsu | Updated: 9/11/2012 | Article type: Hot Topics

Talk to any business professional in Thailand, and the term AEC — ASEAN Economic Community — is bound to come up, as the entire country prepares itself to be the center of (and driving force behind) this thriving economic entity by year 2015 when zero tariffs on almost all goods and free flow of human resources are legally and officially permitted. It is estimated, according to US Commercial Service, that the overall market for security equipment and system sales (at the manufacturer to distributor level) is between US$200 to $300 million, growing at a CAGR of 25 to 30 percent.

While everyone agrees that the country's growth potential is phenomenal, considering the various financial and economic crises across the globe, this security market still requires those who wish to capitalize on the uptick to take the time and effort to cover their bases: product/solution reliability and affordability; people and connections; and specialization, verticalization and education.

Security is not a brand new concept to Thailand or its people. In fact, analog security systems can be found all over the vast country, with some of them having been around for more than two, three decades. “The annual video surveillance equipment market is roughly US$70 million; the installed analog base is easily 10 times that, so business potential is definitely huge,” said Sakchai Somsuk, MD of TSolutions.

With the three pillars of the Thai economy (agriculture, manufacturing, tourism) thriving healthily, even MNCs like Axis Communications and Bosch Security Systems are confident in achieving much better and faster growth in this exciting market, which was troubled by sociopolitical unrest not too long ago. “From the quick recovery from the floods last year, we can see that Thailand's fundamentals are really strong. New buildings and infrastructure are continuously being built,” said Sivakumar Pichai, GM of Thailand, Bosch Security Systems. “We expect the overall market to grow at a rate of at least 10 to 15 percent. In surveillance in particular, 2011 saw 25-percent growth, and in this year and the next few years, annual growth of more than 25 to 30 percent can be expected.”

Axis saw a minor setback in growth in the first quarter of this year, but the second quarter quickly climbed back to the usual 30-plus percent. “In addition to the typical city surveillance and critical infrastructure (border, rail and utilities) segments that we serve, we are also working with our partners on quite a few midsized projects involving 100 to 200 cameras each,” said Oh Tee Lee, Regional Director of South APAC, Axis Communications. “The benefits of IP-based security systems might not be immediately clear to this demographic, so we have to invest more resources in reaching out, educating. After we demonstrate an overall lower TCO and the management and operation headaches saved over a five-year period or more, security professionals in this country get onboard and catch up really fast.”

For Sony, the country is on par with Australia and Malaysia, with each surveillance market sized at roughly $100 million. “The entire region is growing stably at a CAGR of 16 to 20 percent, and we have quite some room to grow in terms of market penetration,” said Riki Nishimura, GM of Security Solutions in APAC, Sony Professional Solutions (a Sony Electronics company). “Analog still accounts for about 80 percent of new purchases, but we expect IP to catch up to 50 percent by 2015/2016.”

As Southeast Asian economies continue to expand and integrate and global investments increasingly pour into these markets due to limited prospects elsewhere in the world, Verint believes that video security opportunities in this region will rise significantly. “We believe governments and businesses will continue to invest — some more cautiously than others — in video surveillance solutions, regardless of macroeconomic conditions,” said Wilson Chin, VP of Marketing for APAC, Verint Systems. “Our video surveillance and analytics solutions are well-recognized in the government, critical infrastructure and transportation sectors, thanks to our many years of experience in securing complex projects, high reliability, proven performance and technology innovation. ‘Partners-focused' has always been our go-to-market strategy, and we are investing more in recruiting, training and enabling our partners in this region.”

Making Commitments
To properly serve a huge, fragmented market like Thailand, many solution providers have resorted to a two- or three-pronged channel strategy. “We work with Smartcomputer (SMC) Group, which is one of the leading distributors with well-connected dealers and integrators throughout the country, on large-scale installs,” said Rio Mao, APAC Sales Director for Dahua Technology. “At the same time, we also work with IT retail outlets, to help SMBs and the general public with DIY projects.” The shift to IP and budding growth in smaller cities and towns are not unnoticed. “Together with SMC, we are offering more IP training courses and affordable, bundled DIY kits (such as NVRs and cameras with PoE capability), to lower the barrier of adopting network-based solutions.” These are equally popular in Indonesia, Cambodia and Myanmar, as they look up to Thailand for growth patterns and models.

D-Link, which has been committed to cultivating the Southeast Asian region with a multilayered, team-oriented approach for the last 17 years, is also appreciative of the rapid changes in technology adoption and buying behavior of an evolving Thailand. “We have spent more than 10 years in this country building up a solid, strong retail network,” said Sam Wong, Regional Sales Director for D-Link International. “Mobility is very high in Thailand, so we make sure anyone can find our easy-to-install/use business and home solutions in any of the top four IT chains. Advances in technology also mean that you can get more features today at half of the price last year. To cope with such dynamics, we will very soon have in place a dedicated business development manager, to service this market with the right portfolio and training seminars.”

From a components point of view, the transition to and adoption of IP-based, megapixel solutions in Thailand are much faster than the rest of the region, observed Tetsuji Emori, Operating Officer for the Optical Devices Business in APAC, Fujifilm. “All of our lens sales here are megapixel. The double-digit growth doesn't come automatically though, as competition from Chinese lens suppliers is not something to be overlooked. We organize customer visits regularly, to educate on plastic versus glass quality differences via on-site demos and shoot-outs.”

For end users that are not yet ready to embrace IP-based solutions either technically or managerially, high-resolution alternatives that rely on analog cabling infrastructure, such as HD-SDI, are available. “Establishments like banks and jewelry shops require HD footage but don't need to stream it elsewhere,” said Jackey Kim, Director of Netinfo. “HD-SDI caters to such needs. We are increasing our market education and partner recruitment efforts here, as well as in Malaysia and the Middle East.”

Outside of the video surveillance realm, there is a significant presence of access control, time and attendance, intrusion detection and fire safety solution providers actively developing the Thai market. “We have spent two years of R&D efforts on an integrated megapixel camera with facial recognition capability built in,” said Allen Hu, Marketing Manager at ZKTeco. “This technology is good for airports, as well as time and attendance or access control applications in the education, office and residential sectors of this market. We are also working on alarm products that are integrated with video, locks and smoke detectors.” The company now has 70 to 80 dealers nationwide, with a dominating market share in fingerprint verification.

XID is also coming to the market with facial recognition to target the mid- to high-end market. “Biometrics are intuitive, and our facial recognition technology has overcome technical obstacles such as position, distance, lighting and 3-D surroundings with our proprietary illumination techniques and algorithms,” said Carmelo Pistorio, Chairman and CEO of XID Technologies. “It's good for construction sites — which there are many in this country — commercial establishments, banks and shipyards.”

Not every market segment, as Pichai adequately pointed out, requires high-end, engineered products; sometimes, “good enough” products would suffice. “We have been around since 2003, and our focus has been on aesthetics, without too many seldom used features,” said Steve Ho, International Business Executive at Archtron Research & Development (Bluguard). “Our home alarm system comes with easy-to-configure home automation functionality, and is very popular in Malaysia, Indonesia and the Middle East.” Thailand, Vietnam and Cambodia are not too far behind in terms of potential, and the company is working on releasing mobile apps for instant alerts soon.

In fire safety, the government has started to enforce the building inspection law more rigorously as the country welcomes more foreign investments and construction projects of various sizes, said Warodom Sucharitaku, Country Coordinator of National Fire Protection Association. “American standards such as UL and FM are adopted here in Thailand, just so we can inspect and certify tens of thousands of buildings in a more timely fashion. We are also working with banks to provide building owners with low-interest loans for necessary system upgrades.”

Verticals Galore
Based on US Commercial Service estimates for the nonresidential property market, growing demand is expected in the government and retail sectors. City surveillance, airports, rail, government offices and ongoing mass rapid transit projects account for half of system sales to nonresidential property; retail and office complexes account for 30 percent of the market; industrial facilities and universities make up the remaining share.

“Public projects rely quite heavily on IP-based systems, and the retail and banking sectors use a mixture of hybrid and IP,” Nishimura said. Emori seconded the observations, as Fujifilm is ready with a megapixel zoom lens for long-distance requirements (up to 10 kilometers) in applications such as city surveillance, traffic monitoring, airports and oil/gas facilities. “High-end, infrastructural projects look at long-term TCO and ROI, and our transmission solutions work particularly well with large or multisite applications like airports, hospitals, hotels, universities and banks here in Thailand and elsewhere,” said Francis Ng, Regional Sales Manager for East Asia, Network Video Technologies.

Bosch's revenue breakdown is also reflective of US Commercial Service's estimates. “We are very strong in the public sector, with about 50 percent of the revenue coming from government projects and 10 to 20 percent from the education sector,” Pichai said. “We are also looking at the commercial sector, such as shopping and industrial complexes, for more growth.” Medium-size projects in the retail, hospitality, health care and SMB sectors are also on Brickcom's radar, said Ethan Lee, Regional Sales Manager.

 

 
The retail vertical is of particular interest, as average disposable income of Thai people and purchasing power of visiting tourists continue to increase by leaps and bounds. (Data source: CBRE Research)

No Easy Pickings
Some observe that the size of the Thai electronic security market might not be very substantial at the moment, but the potential will be quite significant and noticeable in the very near term. “Selling IP cameras alone will be increasingly challenging,” Wong cautioned. “You need to have balanced feature sets, product/solution portfolios and dedicated partners that are convinced of your goal and approach.”

Despite being one of the biggest economies in the region, there is still room for improvement for Thailand. “The public network infrastructure at the moment is a major challenge for business development and security implementation,” Nishimura said. “While we have our work cut out for us, we at Sony are still looking to outpace the average national growth of 17 to 18 percent, at 20 to 25 percent. Business practices are relationships-driven here, so we will engage in more face-to-face meetings and training seminars with our channel partners and local trainers, both in and out of Bangkok.”

Physical, electronic security continues to be a highly fragmented market. “Competition in the hardware market is particularly intense in APAC, with many suppliers from China overpromising and underdelivering. But as customers become more sophisticated and knowledgeable in the solutions they purchase, they start looking for value-added features and services, and Thailand is no exception,” Chin said. And the next section of this feature looks at how the market fragmentation has given rise to channel players of different calibers that work to address varying solution and service needs.

Channel positive energy into ASEAN

Editor / Provider: Hayden Hsu | Updated: 9/12/2012 | Article type: Hot Topics

Compared to the other markets in the Southeast Asian region, Thailand's channel structure is rather mature. One can easily find capable master distributors/integrators that have a nationwide network of consultants, dealers and installers, serving respective cities or regions with different solutions tailored to specific project requirements. As the prospects of an integrated economic community emerge and become clearer, some are already looking to expand their reach over the borders and export their expertise to neighboring, underserved countries.

In Thailand, a rapid transition from employing guards or guarding services to deploying electronic security systems, due to drastic rises in minimum wages (from an average of around US$600 per bilingual guard per month to $835), can be easily palpated, said Henny Beeber, CEO and CTO of AES Group. “A timely example would be the ongoing metro system expansions (purple, red and blue lines); the construction sites now rely more on security electronics for 24/7 monitoring than posting guards.”

Traditional guarding services have also evolved, due to increased competition. “Security services, and providers of such, in Thailand have come a long way,” said Vallop Kingchansilp, CEO and President of Guts Group. “Back in the 1980s, there were only foreign companies (such as Chubb and Secom) operating locally. We started as a guarding services company with less than 100 people, and have grown to be a force of more than 15,000 (thanks to assistance and support from our friends at Certis Cisco in Singapore), encompassing guards, personal protection and investigation teams, and system distribution, integration and installation. We expect to double our revenue from systems in the next five years. Our target verticals would be the ones where we are already strong with our physical presence, such as industrial and military sites. Spurred by legally mandated increases in guards' minimum wages, we will see a rapid switch to electronic security systems and solutions in these and other sectors.”

In Thai security, the business culture is such that relationships between local partners and local governments or users are valued most, stressed Suwich Chitkasemsuk, MD of Digitalcom. “Other than the three southern provinces that are experiencing social unrest and are directly monitored (via thousands of cameras) by the central government, solution providers or distributors are advised to foster and build rapport with individual provincial governors, city mayors and managers, police chiefs and local system integrators/installers/resellers. To facilitate proper channel development and communication, the Thai Security Association (TSA) was founded in April, of which we are one of the founding members.” The key mission of the TSA is to bridge all the gaps, through face-to-face events like seminars and road shows, among solution providers, channel partners, large users/buyers and academia.

Just like doing business in other sizable countries like the U.S., China and India, there is no one company in Thailand that can cover the entire geography alone. Various collaborative or business development models are thus adopted. “As a master distributor of Axis, Milestone and many other brands, we actively work with hundreds of dealers, resellers and integrators throughout the country, to compete in city surveillance, traffic/transportation, border crossing and commercial/enterprise projects,” Chitkasemsuk said.

National Reach, Targeted Approach
Having a national presence is pivotal, especially when many solution providers are moving toward system- and service-based models, Kingchansilp said. “Our four monitoring stations and 10 solid dealers throughout the country put us ahead of our competition (consisting of more than 2,500 security distribution, integration, installation and consultation companies). City surveillance is a national directive, and we, together with our partners, will focus on the increased funding in the north, northeast and south.”

When Smartcomputer started the distribution operation 14 years ago, no one would have thought that the Thai security market would get this big, shared Kittichai Samittiwuttikul, President of Smartcomputer Group (SMC). “Now, we have two separate teams, analog systems and IP solutions, servicing different clients with varied requirements. The IP team was formed three years ago, to cater to increasing market demand and to demystify that network-based security technology was too costly, too difficult to install and configure, and too cumbersome for operators or end users to handle.” IP shipments today account for 15 to 20 percent of SMC's sales revenue, of which government projects make up about 40 percent; it has been a significant rise from less than 10 percent three years ago.

Another IP-focused distributor agreed. “Over the last two years, growth in the adoption of IP-based security technology has been phenomenal; for example, one of the brands that we represent, Vivotek, has experienced 400-percent local sales growth, particularly in government projects (city surveillance, transportation, buildings), retail and department stores, and manufacturing and commercial sites,” said Sakchai Somsuk, MD of TSolutions. “To properly service and sustain this growth, we have a dedicated system integration team, offering training demos/courses and project design and commissioning support.” Affordable, easy-to-install/use systems and customizations fit for specific vertical markets are also offered.

In Thailand, where network infrastructure is shaky in most parts of the country, having an IT/IP background definitely helps. “When Advance Integrated Technology (AIT) was established in 1993, the company started as an IT system integrator, providing customized hardware, software, solutions and services,” said Nisakorn Charintharawuti, MD. “In 1997 as the Asian financial crisis hit, we shifted our focus to digital surveillance, working with Korean and Taiwanese DVR brands. One of the first prominent projects during the transition was a national bank with 600 branches, paving our way and reputation for the next 10 years. In 2009, global recession, fierce competition, low margins and heavy service loading pushed us to do something different. We began to focus on one brand, Mobotix, because of its pure IP approach and durable, reliable products. What Mobotix provides are turnkey solutions, not simple box cameras, so we took the time to educate the integrator and installer community on overall TCO and ROI through road shows.”

As the market matures and competition intensifies, change is in order. “The system integration market in Thailand was already a red sea, so we decided to focus on the distribution business, per agreement with Bosch Security Systems,” said Kritsada Phanbamrung, MD of CCTV Thailand. “In addition to the government, high-end hospitality and industrial sectors, we are beginning to serve mid-end hotels, banks, schools and retail shops with Bosch's new budget line (Advantage), both within greater Bangkok and the surrounding regions/provinces of the city.”

Another great example of transformation is Bangkok OA Coms. “We started in the 1970s, selling office automation products (hence the company name). About 15 years ago, we began to dabble in physical security, with Samsung Techwin cameras,” said Dej Churdsuwanrak, MD. “It was not easy selling the security surveillance concept and breaking into new market segments, so we approached hotels and condominiums with existing, old equipment (mostly European, American and Japanese brands) that were looking to replace or upgrade. Then came an opportunity for change; the Bank of Thailand issued a mandate requiring all commercial banks to install security cameras and systems. We won two projects, each with about 900 branches nationwide, and became known as a system integration specialist in physical, electronic security. The success stories helped Bangkok OA secure other prominent retail accounts with national presence, and the boost of extra cash flow also allowed the company to extend its reach into neighboring countries Laos, Vietnam and Bangladesh in 2000. Three years ago, another change came as Samsung restructured internally; we transformed from a system integrator to a value-added distributor, by providing even better project support, knowledge transfer and profit-sharing models. We will also be working closely with Vantech from Vietnam, to promote the brand throughout the ASEAN Economic Community (AEC, Thailand and Indonesia first). The partnership can even go beyond security, to other home appliances and electronics.”

Multitiered
To cater to a huge market like Thailand, sealing deals requires a multitiered approach, in both partnerships and solution offerings. “The key brands that we represent (such as AVTech, CNB, Dahua and Nuuo) ensure that we have the right solutions at the right price points for each market segment, from small residential to large city surveillance applications,” Samittiwuttikul said. “For example, there are currently more than 3,000 villages nationwide undergoing ‘safe town' projects, with an average financing package (from the central and municipal governments) of $30,000. This is just Phase 1, as Thailand strives to become the center of the AEC by 2015; the ultimate goal is to rid the country of drug problems, starting from schools and town centers, before and after the borders open up. We design various systems that are fit for different budget ranges to help our dealers (more than 600) compete in project bids. It is about having functional, manageable, reasonably priced system solutions.”

While Pacific Technology Distribution (PTD) is a pure distributor, it takes a system-based approach, offering the ammunitions (surveillance, access, intrusion, scans and fire safety, bundled in every way possible) that its integrators (about 100, medium-size) need to build relationships and win projects, said Phitsanu Tamphanuwat, MD. “For the government and financial sectors that we excel at, European, American and Japanese brands, such as Bosch, OnSSI, Panasonic (Sanyo) and UTC, are still preferred. We also have other ongoing industrial (factories and oil/gas), high-end retail and hotel, and residential projects.” Software and services are where Tamphanuwat sees the most growth and where the company will invest more resources in.

A friendly competitor, Digital Focus, agreed on the service approach. “We have been around for more than 10 years, and currently partner with more than 150 dealers nationwide,” said Somchai Prajaksoot, MD. “We also work with system integrators on financial, highway and military projects, and with three types of retail outlets (Fortune Town, Digital Gateway and CCTV Outlet) for direct sales. Multiple brands (for example, AVTech, Hikvision and Honeywell) and multiple channel partner types ensure our reach to every segment of the Thai market, as a true total solutions provider.” And being a pure distributor in this market is simply not enough; the company is looking to provide monitoring services through an in-house, ISO9000-certified central station.

As an integrated solution and service provider that recently merged with Tyco Thailand, Takachiho focuses on offering everything that its Japanese clients and Tyco's global accounts in the country would need, said Bussakorn Kaewmorakot, Security Business Manager at Takachiho Fire, Security & Services. “We have been around for about 17 years, so we know those needs and the key decision makers well. For the clientele that we serve, individual brands don't matter too much; it's about delivering the right overall solution and getting the best result (from both business and security operations) possible.”

Beyond Boundaries
AEC is a hot topic right now, and Thailand is preparing itself to be the center and propeller of it by 2015. “Two thirds of our revenue comes from system integration work (the rest being distribution) within the region, especially in Thailand, Cambodia, Laos and Myanmar,” Beeber said. “It definitely helps having long-standing, cross-border relationships. For example, Gallagher Group, one of our technology partners, introduced us to a building project in Cambodia, as it has had close ties with one of the decision makers for almost two decades (since his school days); the entire project was worth $150 million, almost the same as another embassy project we had in that country. We are also working closely with a number of multinational mechanical and electrical companies active throughout the region.”

Digitalcom is considering setting up joint ventures in Laos, Cambodia and Myanmar, to help the region advance with appropriate security technology, and is also looking into cloud offerings with the right infrastructure, telecom and camera partners, Chitkasemsuk said.

“Chinese brands have significant penetration rates in AEC, but we believe it's a very high-potential market that can fuel the emergence of local brands like Vantech,” Churdsuwanrak said. “We have the upper hand in local knowledge, connections and credibility. Thailand comes first, but the region is for us to grab and grow.”