Memoori: Acquisitions Have Doubled in Past Two Years, Without Major Suppliers

Editor / Provider: Submitted by Memoori Business Intelligence | Updated: 10/6/2011 | Article type: Hot Topics

One of the more baffling and intriguing findings of our third annual report The Physical Security Business in 2011 is that despite a surge in acquisition activity, which has doubled in the last 2 years, most of the traditional market leaders have not participated and watched this going off from the sidelines.

It is not easy to fathom out why... because like all multinational companies, up to 2008 / 9 they had an active policy of growth through acquisition and they all have strong cash reserves. By 2010 the security industry had got itself back to profitable growth and the industry had proved itself to be an attractive robust business, as our report shows. Although company valuations have gone up they are still below 2008 levels. So what could be the reason or reasons for this change of attitude to this business? They have the money and attractive companies are available to buy at realistic prices. This has been proven when outsiders (some with deep pockets) are taking their share of the market, through acquisition without any 'retaliation' (so far).

In the report we delve into the details of the structure and shape of the market showing that most of the relatively medium to small companies are focused on one product area; specialise in introducing innovative technologies. Those that backed IP Networking products 10 years ago now hold the strong ground.

The multinational companies such as Bosch, Honeywell, Johnson Controls, Schneider Electric, Siemens and UTC Technologies are both product manufacturers and system suppliers and cover almost all aspects of physical security. When you take account of this and review market share on the basis of product sales (which our report does), then it shows that average market share figures are little more than 3 percent with the highest around 12 percent. If you then start to look at market share in some of the segments, say the fast growing IP Video networking camera market (not inconsequential at $1.3 billion) then the leading supplier Axis Communications has a share around 35 percent with no other supplier in reach.

You then have to wonder if some of the major traditional suppliers are spreading themselves thin on the physical security front and need to refocus on either the product or systems business or combine these to focus on particular product areas for specific vertical markets.

Most have been successful in growing their systems business during the last 3troubled years. One of the major reasons for this is they have fed off their heritage estate business and at the same time have integrated activities from other parts of their organisation such as fire detection and extinguishing, evacuation control, mass notification and energy management into holistic solutions for their clients. Siemens have shown an acquisition appetite for specialists in verticals such as transportation; last year they acquired Republic Intelligent Transportation Services to expand their reach in the traffic solutions and services business. A combined portfolio of Siemens' products and solutions and Republic's services and maintenance provides an opportunity to leverage their expertise.

It has been quite clear since the beginning of this decade that in order to grow the business some fundamental changes had to be made to attract buyers. The new business model had to be built around "How through IP technology, do we move the clients security operations from a cost centre to a cash generator and converge with the business enterprise?" Because growth will get little benefit from marginally better economic trading conditions in the future but from new products and systems that deliver a better return on investment.

Our report shows that much of the investment in acquiring security companies in the last 2 years has come from outside the security business particularly Defense and IT / Communications companies. They are able to leverage their expertise to join up solutions with the business enterprise and we think they see this business as much more than a safe port in a storm.

So the traditional majors of the physical security business now have a growing number of new competitors from outside the industry and a stronger competition from product specialists in the middle ground. The recent manouverings of Tyco to split in to 3 separate companies with 2 based on security and safety is very likely to open up the opportunity for at least 1 "mega merger" in 2012 and our betting is that the traditional major players in our industry will not sit it out this time around.

Memoori: Will Economic Setbacks Reduce Business Opportunities in the Security Industry?

Editor / Provider: Submitted by Memoori Business Intelligence | Updated: 6/8/2011 | Article type: Hot Topics

This time last year economic indicators took a hit with major concerns about the need for countries within the Euro Zone to cut back on public expenditure; in order to repay their massive debts. While this did have an effect on demand for security equipment it was marginal and the fragile recovery in the economy has limped on in the last nine months. But recent events in Greece, Portugal and Ireland would suggest that the bail outs have not worked and they are likely to default on the loan repayments. This has both extinguished any recovery in these markets and has taken its toll in other weak economies in Europe. It will have an adverse impact on world trade. Stock markets across the world have significantly marked down share prices and the buoyant forecasts of economic growth made some five months ago are being revised.

However the emerging markets of China, India and Brazil have so far not been affected. For some years financial markets have turned tail at the mere hint of bad news and have exaggerated the possible consequences; but by the same token the upswing also responds as rapidly. The facts and statistics shown in this month's do not flag up any serious adverse trends that will reduce the opportunity to grow the security business in the near term of the next six months, but they do suggest that there is less confidence and a hint of caution in the air.

Our figures for the first quarter of this year showed that consolidation had slowed down with the number of acquisitions down by 20 percent on the same period of 2010. The last two months have seen a significant recovery, Tyco Fire and Security claim they are about to close a US$110 million deal, there is serious talk about Securitas and Niscayah making a reunion and the possibility that Cisco will put Linksys on the block reach fruition, then we will be on track to beat the 2010 record for value of deals exceeding $7.98 billion.

Investment for the first five months of the year is marginally up on the same period of 2010 but much of this is the result of arranging new lines of credit. There appears to be little change in the area of venture capital funding.

The most encouraging feature of the business is reflected in the financial performance of security players. The fourth quarter 2010 and first quarter 2011 financial announcements made recently show for the most part revenues and profitability well up on the same quarter of 2010; and the full year outperforming 2009. With almost all anticipating improved trading conditions in 2011, it looks as though revenues and profitability will improve on 2010.

The star performers in 2010 include Axis Communications, Mobotix, Basler, Authentec and Bio-Key, despite the fact that their fourth quarter was well down on 2009. These companies are very specialist and perform in the high growth areas of the business and / or strong in geographic markets that performed well in 2010. They are all companies that spend on product development in the high-tech areas of IP networking.

Similarly the world's major security companies such as Tyco, Honeywell Security, Schneider Electric and Siemens Security Systems all increased both profitability and growth, they are bullish about 2011. Cooper Industries and Ingersoll Rand likewise also increased their growth and profitability, while Bosch Security Systems returned to profitability on increased sales.

With trading conditions looking buoyant in some geographic regions and the drivers that accelerated consolidation and investment in 2010 still well in place that the slowdown of acquisitions and stagnation in funding in the first five months of 2011 does not indicate in anyway a correction but is just a short-term deviation. One major acquisition would bring consolidation well back on track.

So despite economic setbacks it's expected the market to continue to flourish in the high-technology areas of the security business particularly where IT convergence can deliver better ROI. Working the emerging markets and the US with emphasis on some vertical markets will produce the best results while mainstream and low-tech business will continue to reduce its share of the business.

For more information, please go visit Memoori.

Calling All Nodes

Editor / Provider: a&s International | Updated: 5/24/2011 | Article type: Tech Corner

We now live in a world where wireless technology has become a “way of life” for many. Traditionally considered a last resort in security applications, wireless transmission has come a long way in signal reliability and resilience — in some cases, it is even the only option.

Ksenia Coffman

“Where we're going, we don't need roads,” said Dr. Brown in the 1980s' blockbuster Back to the Future. While we are far from eliminating roads today, technology has allowed us to remove something comparable — wires.

Three key wireless topologies exist today, namely point-to-point (PtP), point-to-multipoint (PtMP) and multipoint-to-multipoint (MPtMP). The flexibility of mesh allows it to be deployed in many scenarios for complete redundancy, said Ksenia Coffman, Senior Marketing Manager at Firetide. “Some deployments start as PtMP and then are reconfigured into a mesh topology when security needs call for ubiquitous coverage later on. Some integrators deploy mesh equipment in a PtMP topology, with ‘mesh on the edges' to provide reach into remote areas.”

Where the Wires End,Life Begins
The Americas and EMEA regions' combined market for wireless infrastructure used in video surveillance was estimated to be worth around US$175 million in 2009, with an estimated growth rate of nearly 20 percent in 2010, according to IMS Research.

Wireless transmission for security is getting adopted across a broad spectrum of use cases, said Manju Mahishi

Manju Mahishi

, Director of Wireless Products Strategy at Motorola Solutions. “Most notable is mass transit with trains and buses, where a wired network is not even an option, and perimeter security at large facilities, where wiring would be cost-prohibitive.”

Two of the key vertical markets with strong demand are government and public safety, Mahishi continued. “Other key markets for wireless mesh networks include manufacturing (such as petrochemical), transportation (airports, seaports) and construction (large sites/projects).”

“Three vertical markets where demand for wireless infrastructure for video is especially strong are government (city surveillance, homeland security, emergency preparedness, critical infrastructure), transportation (mass transit, railways, highway systems) and industrial (plants, construction, oil and gas, utilities),” Coffman added.

“Ease of deployment and low cost of ownership are the main advantages of using a wireless video surveillance system,” Mahishi said. “There are no disadvantages in using a wireless system if it is deployed correctly.”

For security applications, wireless transmission is often utilized in outdoor settings, where a wired infrastructure

Jeremy Damato

is nonexistent, cost-prohibitive or impractical, Coffman said. “Wireless networks are also ideal for temporary installations from days (such as special events, fairs, rallies) to months (construction sites). Wireless installations are much faster and do not require major construction or cause the disruptions that fiber installations do. We've seen wireless deployed for indoor surveillance in cases where it's impossible to wire, such as monuments with historical value.”

Wireless is best suited for locations with established infrastructure such as roads, parking lots and buildings, where trenching is cost-prohibitive, added Jeremy Damato, Technical Support Manager at KBC Networks. “It's also a cost-effective solution for systems requiring remote transmission from locations that exceed standard cable limitations.”

Meshed Together
Wireless networks for video surveillance must be reliable. A wireless mesh network typically utilizes the 802.11 standard and provides redundancy and multiple paths to ensure tolerance for failure of individual points within the network. “The advantage of wireless mesh networks is that redundant links eliminate single points of failure associated with conventional wireless networks, with multiple paths overcoming line-of-sight (LoS) issues,” Coffman said.

“Mesh systems allow for redundant paths in the event the signal is obstructed by a mobile object or if a competing device is turned on in the vicinity of the primary path,” Damato added.

Mesh networks are also designed to provide several different options, Damato continued. “Based on the radio integrated into the mesh node, the system can offer multiple frequency bands and networking parameters to better equip the system in harsh radio frequency (RF) environments. For this reason, wireless mesh systems are becoming more popular in traditional PtP environments, such as apartment complexes.”

“Today's multi-in-multi-out (MIMO, 802.11n) wireless mesh networks have already been deployed to support HD and megapixel video surveillance. One limitation compared to fiber continues to be throughput — wireless mesh is not yet capable of providing gigabit (Gbps) speeds,” Coffman said. “However, with up to 90-percent reduction in cost, this trade-off is often acceptable to our customers.”

Wireless mesh is essentially a companion technology to cellular broadband, Coffman continued. “For example, our customers build out mesh backhaul to connect the cameras (in lieu of fiber), and then use a cellular broadband technology to provide access to the feeds from the field (such as via cellular routers). So, the two technologies complement each other. To illustrate the point, wireless mesh provides 100 to 150 Mbps of user throughput per hop (essentially equaling wired Ethernet and approaching fiber). Cellular broadband, in contrast, provides an average of 5 Mbps for download and 1 or 2 Mbps for upload. Latency is also much higher in cellular broadband technologies.”
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A Virtual Pipe
Sufficient throughput is critical, especially with the advent of HD video. “Video surveillance requires an extensive amount of bandwidth, especially with the new megapixel and HD cameras. Without enough bandwidth, cameras cannot deliver evidentiary-grade video or support video analytics,” Coffman said.” The video security system is only as good as the network that enables the transmission from the cameras to the command center. That is why transmission can become the Achilles' heel of a project if cameras need to be deployed in areas where no networking infrastructure exists.”

“With the advent of products based on 802.11n technology, wireless transmission can achieve throughput speeds in excess of 100 Mbps and, therefore, can satisfy even the high-bandwidth requirements,” Mahishi said.

“The latest breakthrough in wireless infrastructure is MIMO-based mesh, enabling fiber-equivalent throughput over a reliable, self-healing network,” Coffmanadded . “ The high throughput (up to 300 Mbps) makes wireless mesh an ideal solution for professional security networks — from video surveillance to access control and mass notification devices,enabling extensive municipal, transportation and industrial security networks.” The high-bandwidth capabilities of a MIMO mesh make it an ideal solution for voice and video, the most bandwidth-intensive and latency-intolerant applications on the network.

Selection Criteria
The wireless technology used in a system is essential to its success; choppy or granular video caused by the network is a critical flaw when it comes to surveillance, Coffman said. “Not all wireless technologies are created equal, and extensive due diligence should be a part of any technology selection process.”

The most important criterion for choosing a wireless network should be the TCO, Mahishi said. “TCO includes cost of equipment, cost of installation and cost of maintenance. Low-power, short-range access points (APs) are generally cheaper than high-power, long-range APs, but may eventually cost more as more of them are needed to provide coverage in a given area.”

When considering IP-based or HD systems, throughput consumption should be considered. Mesh and MIMO wireless systems provide more throughput for bandwidthhungry devices like megapixel and HD video systems, Damato said. “The number of turbo-mode channels should be identified and used when throughput capacity is a key component of the wireless solution specified for a megapixel or HD streaming video project.”

“Other important criteria include support for standards; routing protocol (speed of convergence); quality-of-service support for video/ voice; support for reliable video multicast; and interference mitigation mechanisms as video is very susceptible to latency which could be introduced especially in challenging RF environments,” Mahishi said.

According to Coffman, some other key factors to evaluate are:
1.Video performance: Video applications can eat up bandwidth quickly,and any wireless infrastructure should have plenty of room to grow — even if current requirements appear limited.
2.Security and privacy of video streams: The most secure systems offer end-to-end encryption supporting WPA2 and WEP. Encapsulation schemes can also be used to add another layer of security, where only the mesh nodes can see the encapsulated packets.
3.Multiservice networks: The transmission medium must give appropriate priority and quality of service to mission-critical applications among various video, voice and alarm signals.
4.Ease of setup: Wireless negates the need to pull cable, drill holes or disrupt day-to-day operations. Unlike a PtMP system, any mesh node can act as a “head end,” allowing multiple command centers to be set up at any point on the network.
5.Multicasting: Multicasting enables video feeds to be sent to multiple destinations for simultaneous viewing and recording. Multicasting is essential for monitoring by multiple decision makers, but can minimize the impact from bandwidth requirements.

Environment First
When connecting via wireless, environmental conditions have an impact on the reliability and over-the-air throughput potential, Damato warned. “But there are several ways to maintain sufficient wireless links to help guarantee the pipe needed over the air.”

“LoS between antennae will become more critical if the distance increases.The presence of other possible interfering sources can also limit the distance transmitted or throughput gained in a wireless environment,” Damato said. “An open area should be available so that the entire Fresnel zone is free of obstructions, especially for streaming video over wireless. Clear LoS is necessary to pass the RF to obtain maximum signal strength and data rates.”

High-gain directional antennae are recommended to increase the signal strength and attempt to overcome noise. This would be similar to raising your voice to talk to someone across the room while music is playing or there are other people in the room who are also creating noise, Damato said. “Increasing the gain of the antenna can help overcome some limitations of wireless systems.”

Other options include configuring megapixel cameras to lower frame rates or other settings to reduce the overall throughput need on the mesh, Damato added. “Streaming IP video is different from standard Ethernet data packets, which consist of bursts of traffic when packets are accessed over the link. With a constant video stream with changes in the picture or the entire M-JPEG video frames, the traffic is a nonstop flow of throughput consumption with potential data bursts as well. A mesh network that can handle this form of throughput consumption is recommended for integrating a wireless mesh network for streaming video and management software.”

The availability of frequencies in a particular wireless environment should also be taken into consideration. License-free wireless transmission utilizes RFs and power output ratings allowed by the US Federal Communications Commission and other regulatory domains, Damato said. Different frequency bands are allowed for use for different industries.

However, the frequencies used for industrial, scientific and medical applications in the U.S. can also be shared by many consumer electronics, as well as commercial and industrialgrade devices, Damato cautioned. “For instance, radar technology can interfere with RF devices operating on the 5-GHz frequency band. Environments that contain signs of interfering sources and/or physical obstructions to LoS are places where wireless is the last-resort alternative, as certain requirements may be necessary to deal with the environmental restrictions.”

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Depl oyment Chall enges
High-performance wireless infrastructure is not easy to design and deploy, and professional wireless equipment is a considerable investment, Coffman said. “To ensure the success of any wireless surveillance installation requires intelligent planning from the start. You must perform site surveys, for example, to determine any issues involving LoS obstructions, RF environments, distances and access to camera sites.”

Major challenges in implementing wireless mesh networks include deployment and training, Mahishi said.

Deployment often requires coordinating resources that are not under the direct control of the customer or integrator, such as public utilities, telephone, cable and private companies, Coffman said. “From a technical point of view, ensuring LoS between nodes is essential. Design work may occur in the winter months when foliage is minimal; the spring-time foliage, however, can obstruct LoS. Such issues can be dealt with by going around obstructions; some projects call for the construction of a tower or mast.”

Securing power and gaining access to camera locations can also be challenging, if the customer does not “own” the light poles or buildings where cameras are to be mounted, Coffman continued. “Solar or power generators may be required to power remote installations. When allocating budgets and finalizing network design, the provider should consider all contingencies and discuss them with the end user.”

The learning curve for deployment of a wireless mesh network is longer than general wireless apparatus, Damato added. “Previous wireless and IT management experience, as well as previous experience with a particular manufacturer's mesh system, will assist with how to properly use specific diagnostics tools.“

Mesh topologies can involve redundant path scenarios which will require configurations to eliminate loops in the communication, Damato continued. “If a mesh system manufacturer does not simplify the interface for setup, it can be more difficult to integrate the system. On the other hand, if they simplify it too much, it becomes easier to cause loops. There should be tools and diagnostics within the GUI with which a user can determine the correct route(s) for the wireless c ommu nication with in the network.”

No Interoperab ility
Currently, there is no industry stand a rd for wire less mesh networks. All mesh solutions are proprietary, and wireless gear from different providers cannot be properly integrated together, Mahishi said. “However, IEEE 802.11s is very close to being ratified by IEEE and may provide this support in the future.”

No Silver Bullet
Most of the confusion and unrealistic expectations from wireless mesh networks arise from confusion between data rate and throughput; real throughput in noisy environments; throughput as the number of mesh nodes increases; and backhaul link throughput.

“Throughput across the wireless network is a common misconception. If the node has two radios, users assume that there is 100 Mbps combined. In reality, in turbo-mode channels, each radio can independently offer up to 50 Mbps, depending on the frequency, environment and local regulations,” Damato explained.

“The specifications should be closely examined. Often, a ‘signal rate' is thought to be the throughput over the air. The signal rate refers to the speed of connection between radios, whereas the throughput is the overall pipe capacity based on specs such as the signal rate, signal strength, possible interfering sources and other environmental factors,” Damato said.

Vendors should articulate clearly real-life performance metrics under various deployment scenarios to minimize confusion for their clients and better educate end users on realistic expectations in real-life settings.

Value of Training in Security

Editor / Provider: a&s International | Updated: 4/28/2011 | Article type: Hot Topics

Proper training is vital to consultants, specifiers, system integrators, installers, operators and end users. A&S investigates investments and efforts made by both training providers and trainees, and see how they help provide more well-suited solutions to the market.

Training provided by manufacturers, distributors and training experts aims to prepare consultants, specifiers, integration partners, installers and end users for the latest technologies and hands-on knowledge. A recent report by IMS Research points out that both training providers and trainees are always carefully evaluating the delicate balance between effectiveness and price. “The market is in a Catch-22 situation," said Niall Jenkins, Senior Research Analyst at IMS Research, in the report. “Integrators need training in the equipment before they can win wireless video surveillance projects but are unwilling to pay for the training because there is no guarantee they will win these projects. Wireless equipment manufacturers need integrators to be trained to win wireless projects but are unwilling to provide the training for free because there is no guarantee this will translate into sales revenue.”

While the report focuses more on wireless training for city surveillance projects, the dilemma is applicable to nearly all other product segments and vertical markets. This article looks at the two ends of the security channel and suggests how each may budget for and evaluate training investment in order to reach a win-win outcome.

Prices to Pay
The Internet today allows training materials to be more accessible than ever before. “End users, operators and system administrators have always had open and free access to e-learning, podcasts and tutorials, as these materials empower them to operate, maintain and use products to the fullest,” said Barbara Morgan, Global Training Director for Pelco (a Schneider Electric company). In fact, many instructor-led, classroom training sessions for end users and operators at certain vendor training centers and representative offices are offered at no charge, Morgan added. Vendors and training experts feel that much can be learned by exploring free online materials, watching tutorial videos and engaging in discussions on various boards.

The idea of free training can be misleading to some, said Jonathan Lee, Director of Alliance and Consulting for Training Partners. “There is no ‘free training' per se, as any kind of training needs to be funded by someone, somewhere — such as internal resources from a business unit that wants to drive certain new products, as part of package deal/bundled package and/or as a part of a larger project.”

For advanced and certification courses that come with fees, it is up to each trainee to determine how much training is required and how much investment should be made. “It is indeed a tricky situation,” said Patrick Lim, Director of Sales and Marketing for Ademco Far East. “The cost of training can be quite expensive, and if staff turnover rates are high, companies may not want to send staff out for training as willingly.”

[NextPage]E-Learning
Current social-network tools cater not only to recreational purposes, but also business applications. Training tutorials, video clippings and other materials are posted for trainees to study, and can be exchanged via blogs and discussion boards, allowing for more interactions in the cyberspace. “We have built an online learning network which is open to anyone: customers, partners, students, career explorers and employees, regardless of certification level,” said Fred Weiller, Director of Marketing for the Cisco Learning Network, Cisco Systems. Shared wikis, blogs, discussion boards and assessment-based learning tools provide richer feedback and two-way communication, as opposed to the traditional Web approach which presents information for the reader's perusal only, Weiller added.

Online materials might cover frequently asked questions, such as how to update firmware, how to install products and how to properly focus lenses, available in different languages to further reach global audience.

Face Time
Most on-site training in security comes with a price tag, however. For advanced and/or certification courses, fees can range between US$150 and $5,000. Aside from course fees, traveling expenses such as airfare, lodging, insurance and meals should be considered as well. Training fees depend on the length and depth of the course, as well as how advanced the products are, explained Courtney Pedersen, Communications Manager at Milestone Systems. Paid advanced or certification classes place greater emphasis on hands-on, practical training, and trainees are often more willing to participate in such courses to gain valuable, on-site practice with training equipment and interact with instructors, as well as their industry peers, Lee said. “Paid training will have less no-show or drop-out rates as the trainees will take the class more seriously.”

“The fees reflect the value of the materials provided, as well as the in-depth and hands-on training that trainees receive,” said Jason Schimpf, Director of Partner Relations for Arecont Vision. “It is important that trainees walk away with the tools necessary to properly demonstrate and present products for sales purposes.”

Similar observations are shared by many others. “Our customer feedback has shown that trainees prefer more hands-on courses where they can actually get practical advice,” said Gary Harmer, Director of Electronic Security Sales for Mayflex. “Although webinars can be far more convenient, the success of this type of training has never been as great as when trainees set time aside to learn while given the opportunity to actively take part.”

“Training provided over social-network platforms might be more suitable for basic training or introduction to a system,” Lim added. “Without hands-on training, it would be difficult to claim knowledge of a system at working level, which is crucially important for system integrators.”

In addition to training courses provided by manufacturers and their channel partners, other training professionals in the industry turn their attention to installation knowledge and techniques. “The majority of training given by many manufacturers tends to be productspecific,” said Kevin Matthew, Operations Director for Tavcom Training. “Physical hands-on training pertaining to the technological structure of the installation, rather than the features and benefits of individual products relating to the manufacturer's specifications, is equally important.”

[NextPage]Where It All Happens
On-site training can take place at various venues, depending on the nature and size of the training required. “When our channel partner program was first launched in 2004, we held them only in our offices,” Pedersen recalled. “Over the years, we have spread out to other locations to make it easier for attending regionally, with less travel costs or time involved for participation.”

There used to be very few training sessions conducted in Asia, but recently manufacturers are holding more in cities like Shanghai and Singapore, Lim said. “Some manufacturers are willing to hold private sessions for our engineers right in the office, but there are still several courses that require us to travel overseas.”

No One Left Behind
It is not uncommon that trainees from different sales and technical backgrounds sit in the same class during training. To better address the audience, some training providers now offer separate courses to allow for more flexibility. “In addition to providing different levels of product training, we now offer separate technical and sales training sessions, and trainees can choose to take both,” Pedersen said.

Others believe that intermingling technical and sales topics is beneficial to trainees. “Technical and sales topics can overlap,” Schimpf explained. “For example, a thorough understanding of the capabilities of various technologies is critical to understanding their ability to provide ROI, which is often the determining factor in the purchase process.”

Analog to IP
The shift from analog to IP is also reflected in the trainee makeup. “This is a critical issue in our industry today,” Morgan said. “We find an increasing number of IT professionals in our classes. Teaching an audience with such a mix of competencies and backgrounds can be challenging; however, instructors have trainees share their different perspectives, which adds to the learning experience.” It is common for constructive conversation to take place between the two groups, leading to a better, all-around experience, Schimpf added.

“We are finding that as the migration continues to pick up pace, there is a new generation of learners who are keen to keep up with the Internet/network technology,” Matthew said. “Not only from security personnel, but those from the IT industry are encouraged to embrace security applications such as surveillance, access control and intrusion detection, as well as transmission methods pertaining to IP.”

Currently, about 80 to 90 percent of trainees have IT/ IP knowledge prior to signing up for training, Lee said. “Trainees without prior IT/IP background might find training courses difficult to grasp initially; therefore, it is usually recommended that they attend basic training before working their way up the course ladder.”

[NextPage]Renewals
As a result of the many different certification courses and systems out there, renewals are required upon request from specific vendors. “We require recertification every two years, for partners to keep up with new versions of our software and other innovations in the industry,” Pedersen said. For others, new versions of training courses are updated every six months to one year, while slowly migrating to completely new contents in a span of two to three years.

Rapid changes in the industry mean that trainees continuously benefit from updated course materials even if renewals are not mandated. “We currently do not require certifications be renewed; however, with free training, many trainees attend courses to update their knowledge on a regular basis and, thus, receive updated certifications,” Morgan said.

Training for Better Security
Training courses are constantly under review for course contents and hands-on training given. “Our key vendors are regarded as partners, and, as such, there is a mechanism for dialog, feedback and review to ensure that both of us continue to deliver added value in the supply chain for installers and end users,” Harmer said.

Trainee feedback is incorporated into review as well. “Manufacturers usually lack field experience, as they do not deliver solutions and projects directly to end users,” Lim explained. “Our engineers will suggest blind-spot areas where new training materials can address some problems in these areas. Some manufacturers are willing to review their training contents and methods to accommodate our needs. These include ‘mock-up' scenarios, providing a more efficient way to install or calibrate a piece of equipment.”

For troubleshooting and product-specific, posttraining comments and inquiries, training providers normally direct questions back to the vendors for professional help, Lee said. “Trainees conduct a course survey at the end of every course. Through that mechanism, the trainees are able to provide feedback to the training provider about the improvements they would like to see on course content. Training providers like us also provide feedback to our vendor partner informally during partner meetings or other occasions. Through these various channels, the vendor's development team evaluates the comments and makes changes to new versions of the course contents as see fit.”

Ultimately, integrators and installers need to invest in learning and training on new technologies in order to continue to deliver systems and services that meet user expectations and needs, and manufacturers and channel partners need to innovate at all times on all fronts.

Assimilating Energy Efficiency into Security

Editor / Provider: a&s International | Updated: 4/20/2011 | Article type: Government & Public Services

Newer physical security products are made and used with energy conservation in mind. Continued efforts in R&D for products that utilize renewable energy sources while preventing excessive power usage have their role to play in ensuring a longer living earth.

CONTRIBUTING TO LEED
Many security electronics, sensors, detectors, access control devices and surveillance cameras can be designed and implemented to help meet LEED certification by understanding the characteristic of the buildings and the potential energy saving of each end user. “Most energy consumption in the building, which is generally around 60 percent, is used by HVAC and other electricity and water usage,” said Vincentius Liong, Director of Integrated Security System Solutions, Elektrodata Sistem Integrasi. “By implementing the proper security equipment product range — sensors and detectors, access control, surveillance cameras with motion detection, and more — integrated with the building automation system (BAS), a building manager could properly control, manage and monitor the usage of energy, electricity and water usage in the building.”

Physical security systems contribute to the BAS in terms of locating people in a building with efficient access control and occupancy sensors to determine the headcount per floor or per zone, said David Wilts, Director of Integrated Building Technology, Crestron Electronics. “We have worked on many projects where the occupancy sensor in the conference room turns the lights and AV system on and off, recalls shade settings, adjusts the set-point for the local thermostat, and tells the calendar application whether or not people showed up for the meeting. If no one showed up for the meeting, the room automatically became available again in the calendar.” There is a large opportunity to leverage the security system for energy efficiency and LEED efforts.

“LEED recognition does help keep an eye on the quality of products used to achieve green building goals,” said Peter Boriskin, Director of Product Management, UTC Fire & Security. “Efforts like LEED will become even more established and widespread in the near future to help initiate more green building projects and awareness.”

POWER BACKUP MEASURES
Shutting off power to conserve energy directly outside peak hours is common in green buildings. Temporary electricity suspension in response to excessive power usage or natural disasters is also a more frequent occurrence nowadays. Unfortunately this interregnum cannot happen to a reliable and active surveillance system, as emergency situations could happen any time. Security solutions must have a backup power mechanism, like an uninterruptible power supply (UPS), or else they fail in their foremost function, said Dave Bartlett, VP of Smarter Buildings, IBM.

City code requirements of backup measures in smart buildings are essentially the same as traditional buildings. “In terms of what is available beyond regulated by the codes, typically a backup system would leverage the building's energy generating system,” Boriskin said. “There is more adoption of solarpowered cameras, especially in remote locations, which conserves energy usage as well as providing the power needed.”

[NextPage]“One of the key components of a security system is a battery backup, although this is not a very green solution,” said Ryan Hughson, PM at Delta Controls. “Using alternative energy sources, such as photovoltaic power, can reduce the power requirements of the system, therefore making it more efficient and last longer.”

Renewable energy sources like photovoltaic panels or wind power feed a battery bank, which in turn feeds the building's power infrastructure, Wilts added. This could easily provide the UPS for security systems in an intelligent building.

RESIDENTIAL VERSUS COMMERCIAL
Security implementations for residential and commercial intelligent building differ in scope and complexity. “In terms of scope and capabilities, commercial-grade security management is designed more around the network, with an emphasis on the interoperability with third-party systems. There are typically more designing done to these projects,” Boriskin said. “Conversely, residential buildings often use one-vendor solution only. Except for mid- or high-rise apartment complexes, i f the residential building is a stand-alone complex, it typically would not need networking capabilities, scalability or third-party integration.”

“This makes things both easier and harder depending on different circumstances,” Boriskin continued. “A one-vendor solution allows vendors to provide an easy-to-use system for end users. However, if other third-party systems need to be integrated into the existing infrastructure, integration would not be easy or easily modified in the field. Basically, if it doesn't come in the box then the performance is not there.”

SUSTAINABLE FUTURE
Continuous R&D efforts in greener and smarter security products will facilitate the spread of intelligent buildings to save the planet. “In the past decade or so, the focus has typically been on protecting data centers and the IT resources which enterprises own,” Bartlett said. “We now need more R&D investment in security management for non-IT assets. Vendors of sensors and actuators must work with companies that can provide an integrated hardware-software solution to embed within their products. The added cost of adding security to these devices must be absorbed using more intelligent ‘system-on-aboard' silicon design. Investments in enterprise security software solutions must be leveraged to encompass these sensors.”

Smart/green building awareness could be better promoted through education on available technology and current cost considerations. “There is a misnomer in certain areas that going green equals added costs,” Boriskin said. “Once people realize that it is an opportunity to do what is right for the environment, while bringing cost benefits, acceptance and adoption of smart/green building initiatives would increase. As of now, the up-front cost of new smart/green buildings is coming down. More governments are spreading awareness by giving tax credits and constructing public green structures that people can point to and learn from.” Energy-efficient and intelligent security products will have a chance to grow and expand with this vertical.

“We see great growth potential in this vertical and are optimistic for the market situation in the next few years,” Boriskin added.

Converged Solutions Engage Security Personnel Ⅱ

Editor / Provider: By a&s International | Updated: 3/8/2011 | Article type: Infrastructure

Technical Assistance
Maintaining public transit security usually falls to the system integrator who installed the system. “It is the responsibility of the system integrator to ensure the complete integration together with the customer approving it,” Anderson said. “Typically several pilot tests are made and finally an acceptance test and sign-off in these kinds of larger surveillance system projects.”

The integrator has to be on-call for mishaps such as failing cameras to full-blown crises. While the transit authority will have its own security force, equipment issues are generally handled by the installer. With such a range of situations, integrators need to have good communication skills for problems and challenges, Segall said

Experience is a definite plus. “VidSys looks for integrators with physical security and IT industry expertise and demonstrated client engagements across vertical markets, a particular technology or industry niche,” Fowler said.

Public-transit work is carried out by reliable system integrators, who are either global or local. “Through this cooperation we can guarantee the supply of reliable and high-quality ticket and card materials for mass transit systems and be certain that they operate in the system without interruptions,” said Samuli Str?mberg, VP of Marketing, RFID, UPM Raflatac.

While having a long resume helps, it must reflect positively on the integrator. The U.S. is UTC Fire & Security's main market for public transit, which is large but tight-knit. “The properties know what the other properties are doing,” Szmania said. “They hear the good things and the bad things about the systems. Your reputation is extremely important to your business.”

Specifying Security
As any number of things could disrupt mass transit, careful planning is a prerequisite. “Typically, the mass transit system, integrator and Infinova work together on the design of the system to ensure that the resulting solution meets the mass transit organization's expectations,” Wilson said.

Newer technologies are seeing uptake, albeit slowly. Agent Vi has seen more requests for proposals specify analytics and has generated awareness by publishing case studies. “Offering case studies allows systems integrators and end users alike to read about our solutions and determine whether they are suitable for their needs,” Ashani said. “It's not a cutting-edge market; integrators and end users want to see results before they try it themselves.”

Most vendors certify installers or contractors on how to deploy their solutions in a timely fashion. “The sales cycle is pretty long and the project size is quite large, so it is normal to have more parties involved,” said Cosimo Malesci, VP of Channel Sales and Marketing, Fluidmesh Networks.

Because of the long sales cycle, as well as the extended product life span, scalability is a procurement consideration. “Purchasing a system with upward compatibility is important from the outset because it enables transit agencies to upgrade and enhance a system without having to purchase brand new equipment,” Notbohm said. “Transit agencies should also investigate the vendor's product road map to ensure they can equip additional vehicles that are compatible with the rest of the fleet, as budgets allow.”

Today security is factoring into station design long before they are built. “Security needs to have the infrastructure is in place to support it,” said Jamie Edgar, Global Director of Integrated Sensor Systems, Smiths Detection. “For metros built 20 years ago, it's costly to go in and provide retrofitted solutions. There's usually not enough space.”

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Future Challenges
Mass transit has evolved, with rolling stock vendors providing the security hardware for subway cars before they land on track. “They realize video surveillance manufacturers don't understand the hardware specifics to be installed on a train,” Segall said. There is also a great diversity in the hardware specifications for onboard video equipment on subway cars and buses.

It is less expensive for end users to specify security for new vehicles, because they can design for wiring and power, Szmania said.

Retrofitting trains is more costly, as older trains are not designed for video equipment. “The newer trains have the camera infrastructure built in,” Edgar said. “We're having discussions with train manufacturers such as Bombardier to do advanced planning for video cameras and video communications in train cars.”

Global Standards
Public transit is covered by many rules, but most regulations are regional and rarely international. As they vary nationally and even regionally, solutions must meet all the requirements of the individual customer, Notbohm said.

A customized approach for every transit organization is time-consuming and inefficient. “There are currently no national standards for bus security in China,” said Yingming Li, Product Director of Topshine Technology. “We are working with end customers and distributors for more uniform standards.”

Presently, no single standard covers public transit. “Certifications for FCC, CE, RoHS and ISO all must be passed to be specified for transportation projects,” said James Tseng, Senior VP of Telexper.

Public transit rules are detailed and country-specific. “In Europe, the mobile DVRs must operate from 30 degrees to 55 degrees Celsius,” Tseng said. “In the Middle East, operating temperatures go up to 85 degrees Celsius.”

A more universal standard is the Secur-ED consortium, which is striving for an EU solution. “All relevant stakeholders for equipment and operators are working together,” Segall said. “We're working very closely with Bombardier, Siemens, Thales, Alstom and manufacturers of rolling stock.”

For now, public transit rules remain highly detailed, with whole books dedicated to the subject. “It's a barrier to entry for many smaller companies,” Szmania said. “When we go and bid on opportunities, all our departments are involved to make sure we do everything properly for New York City or Philadelphia.”

A holistic approach will streamline public transit. “We talk about equipment, but ultimately, there are the personnel, processes and then the technology,” Segall said. “A good solution is a good combination of the elements.”

China Gears up for Transformation in 2011

Editor / Provider: a&s China | Updated: 2/15/2011 | Article type: Hot Topics

As the Chinese economy continues to boom, the security industry leaps forward to an exciting 2011. A&S explores what's ahead for product development and vertical markets.

Spurred by IP, Chinese manufacturers have embraced HD technology. HD will force key players to migrate to IP in response to increasing demand. In addition, enhanced business practices will help security providers survive a rigorous and competitive market. Several measures include corporate restructuring, product innovation and better channel management.

Chinese security tends to be fragmented, affirming the importance of a vertical-specific approach. With targeted verticals, suppliers can provide solutions suited for certain verticals. As some vertical markets are regulated by stringent government rules or international standards, a market-focused approach streamlines product development.

A company with a clear market position will stand out from its counterparts. Some international brands strive to distinguish themselves from Chinese competitors by adopting different marketing strategies.

Dallmeier electronic serves high-end markets by developing customized HD solutions, to stand out from the pack. Spanish manufacturer Fermax offers stylish product design and complete after-sale services to customers. Branding and a clear market position will be mandatory for security companies to stay healthy in China.

Comprehensive Solutions
Security suppliers are broadening their product offerings to meet various client demands in China.

International players such as Bosch Security Systems, Honeywell Security and Tyco Fire & Security have expanded their product portfolios to cover video surveillance, access control and intrusion. Sony Electronics launched IR HD cameras, completing its product line for greater customer flexibility. Samsung Techwin, on the other hand, has made strides into access control and intrusion. The experience will therefore lead to comprehensive solutions, enabling a one-stop shopping experience for end users.

However, success in China stems from more than just great product offerings. Vertical-market coverage, partner development and sound corporate management will be major concerns as well.

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HD
HD will be in the limelight for years to come. It provides more coverage and is suited for many vertical applications. The more advantages HD offers, the more benefits and value will be reaped by customers. HD adoption will increase for many upcoming Chinese projects.

Providers unable to bridge the HD gap may have to exit the security stage. According to Sony, the best way to perform image decoding for HD display is with strong management software. Manufacturers who used to be dedicated to analog offerings are migrating to IP HD solutions.

Experts predict high-resolution monitoring will be common in Safe City projects, as well as financial deployments in 2011. Most projects will deploy 1.3- and 2.0-megapixel cameras. High-end applications will favor 3-megapixel cameras in particular.

Korean supplier CNB Technology will support both HDcctv and IP portfolios. Despite the advantages of IP HD surveillance, network cameras require IT systems and complicated setup, discouraging some users. HDcctv saves cabling costs by maximizing existing investments. However, there are few HDcctv-compliant products and the price is still relatively high.

Extended Reach
With startling economic growth and incredible market potential in China, security players have expanded by adding more branches or subsidiaries. The inland region will be a key region for business development.

Honeywell has emphasized improved customer services by adjusting its marketing, sales and personnel management in 2011. Its long-term China plan includes expansion into Tier-3 and Tier-4 cities for more opportunities, which will also address more verticals than before.

To have better local customized service, Axis Communications and Dallmeier plan to set up several production facilities to meet domestic product demand.

Local security manufacturer Hikvision Digital Technology emphasizes its home turf experience with subsidiaries in 28 cities. As Safe City projects continue, Hikvision won a major US$8 million project for Chongqing's city surveillance.

Channel Education
More manufacturers are educating their partners about IP, as well as forming more partnerships in the IT channel. In 2009, Bosch formed an IP surveillance accreditation program for distributors and dealers, troubleshooting system installation issues.

In Bosch's experience, roughly 90 percent of project failures originated from poor network structure, inadequate bandwidth and limited storage. Education efforts for local partners will continue in 2011.

Axis takes another route for IP convergence. With a strong IT background, Axis has commissioned IT professionals for their expertise in system networking and software configuration. It also seeks installers from traditional security channels. A two-pronged approach enables Axis to maximize its industry presence.

Large government or commercial projects will require cooperation between several security giants. Some verticals require specific solutions or particular channels, which will allow manufacturers to differentiate themselves.

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Branding
International vendors in China have poured money into local development and channel expansion, while Chinese providers have improved product quality and increased manpower. Branding is becoming essential for differentiation in a competitive market.

Existing competitors will face pressure from outsiders as well. More telecommunications and IT providers have entered physical security, which will require current vendors to prove their worth.

User Needs
In the face of rigorous competition, understanding end user needs remains a must. Having a complete product line and experience will be the best way to go. The latter requires sound operation practices, ranging from customer consulting, after-sales services and targeting specific user needs.

Top verticals include highways, airports, educational institutions, hospitals and power plants. It is expected the Chinese security market will be prosperous in 2011 as the economy picks up.

Road Map
While IP and HD video technology has heated up, access control and intrusion alarm solutions are relatively unchanged.

However, logical access control is playing an increased role in physical security. HID Global (an Assa Abloy company) combined physical and data security, resulting in a partnership with Sony for laptops embedded with its logical access control solution. The crossover between physical and logical access control will extend to other security systems.

With healthy competition and robust market demand, Chinese security looks forward to an exciting 2011.

Security 50's Top Performers Rise Above the Fray Part Ⅰ

Editor / Provider: by a&s International | Updated: 11/30/2010 | Article type: Security 50

2009 witnessed a soft market, slow construction and tight security budgets. Despite tough conditions, 10 companies managed to beat the market with robust revenues. A&S examines how they performed and where they found blue oceans.

In the wake of 2008's Lehman Brothers collapse, 2009 was a grim year. A record number of banks closed and businesses went bust. Consumer spending dropped to all-time lows, with new construction and employment opportunities growing scarce.

As this year's Security 50 ranking reviews financial reports from 2009, the mood was somber for electronic security. Six of the top 10 performers suffered revenue losses, while the other four posted double-digit growth.

Of the four manufacturers who grew, two were video surveillance providers: Victor Company of Japan (JVC Professional Systems) and Hikvision Digital Technology. The remaining companies in the black were access control solution providers RCG and L-1 Identity Solutions — the latter was sold to BAE Systems and Safran in September.

The reasons why these four companies grew are varied, but do not mean they were immune to the recession. “The global recession in 2009 has affected our growth projections,” said Tony Yang, International Marketing Director for Hikvision Digital Technology. “We did grow overall, but not as much as expected.”

A complete camera lineup complementing its surveillance solutions helped Hikvision increase revenue. “While most of the overseas markets were hit harder by the recession in 2009, the domestic market in China still maintained its strong growth from policy-driven projects,” Yang said.

A holistic-solution approach helped RCG weather the storm. “For 2009, growth was driven by execution of strategies to face challenges caused by the financial crisis; RCG has recorded revenue growth by focusing on solutions projects, as well as the areas that were less affected such as Southeast Asia, China and the Middle East,” said Dato' Lee Boon Han, CEO of RCG. “The impact of the financial slowdown was fortunately not too significant, as RCG has been focusing on numerous verticals supported by government stimulus packages.”

L-1 Identity Solutions grew 15.6 percent in 2009, which was slower compared to its 44.5-percent jump in 2008. “During 2009, L-1 was awarded 19 of 20 competitive credentialing procurements and booked approximately US$289 million in global driver's license extensions and new contracts,” the company said in a prepared statement.

Hampered Sales
Thermal surveillance provider Flir Systems suffered a modest revenue loss of 3.2 percent in 2009, maintaining steady sales. “Flir has experienced excellent growth as measured in both revenue and unit volume for our thermal security cameras over the past two years,” said Bill Klink, VP of Security and Surveillance, Flir Systems. The company is offering cameras at lower prices, with increased uptake by industrial, federal, municipal, recreational and residential end users.

Government mandates also softened the recession's effect. “Many federal regulations require increased perimeter security of critical infrastructure, and these regulations drive demand for security cameras,” Klink said.

Bosch Security Systems fell 5 percent by nominal revenue, with currency effects pushing it down 7 percent from 2008. “The global market for security technology fell by 13 percent, and this downturn was particularly severe in Western European countries,” said Gert van Iperen, President of Bosch Security Systems. “These countries saw declines in double digits, with the market in Europe shrinking by 17 percent and in North America by 13 percent. The reluctance of investors and the suffering construction industry were key factors for declined sales.”

Assa Abloy's Global Technologies division had a soft landing, with revenue dipping 2.1 percent. “The underlying trends and growing uncertainty in the world put security high on the agenda, driving the development of increasingly advanced solutions and upgrades of existing security systems,” the company said in a prepared statement.

ADT's product sales fell $382 million or 19.8 percent in 2009, primarily due to reduced volume. “The remaining decrease is related to the unfavorable impact of changes in foreign-currency exchange rates of $122 million,” ADT said in a prepared statement.

Key Verticals and Regions
Most of the Security 50 participants saw growth in public projects, particularly in emerging markets. The commercial segment for retail and banking remained sluggish, with replacement cycles or expansion plans on hold.

US sales held steady for Flir Systems. “Balanced execution across all of our primary vertical markets — government, commercial, critical infrastructure and residential — and our broad product mix ensure that we have a solution for all challenging imaging situations,” Klink said.

Bosch did well in critical infrastructure, transportation, and public order and safety. Entertainment also had strong growth.

“In APAC, we are expecting a welcome rejuvenation in the market development, which is expected to grow by 14 percent in 2010,” van Iperen said. “Latin America will grow by 11 percent. Even in EMEA, a turnaround has been achieved, and we expect slow but positive growth of 1 percent. In Eastern Europe, we are seeing market growth of 4 percent.”

RCG benefited from public projects as well. “On the one hand, we have increased the number of government-based contracts, which is visible even in the future,” Lee said. “On the other hand, we combine cutting-edge technologies — biometrics, RFID, wireless technology and new technologies like the Internet of things or machineto- machine — with our unique ability to develop solutions that suit customer needs, ensuring sales and new revenue streams.”

America's reduced spending power affected ADT. “The electronic security business decrease was primarily due to the slowdown in the retail sector, as retail capital projects and new store openings were canceled or delayed,” the company said in a prepared statement.

Emerging markets made up nearly 17 percent of Assa Abloy's sales, up from 9 percent five years ago. “The group is deliberately focusing on increasing its presence in the emerging markets in Asia, Eastern Europe, the Middle East, Africa and South America,” said Johan Molin, President and CEO of Assa Abloy, in a prepared statement.

“The 18-percent mark was passed toward the end of the year as Asian markets showed good growth again, while North American sales continued to decline and European sales were stable,” Molin said in a prepared statement.

Asia was a high point for Aiphone, particularly China, due to economic stimulus projects, said Shusaku Ichikawa, President and CEO of Aiphone, in a prepared statement. Europe and the North American markets are seeing gradual movement.

The government market was crucial to L-1, which made more than 95 percent of its sales to federal, state, local and foreign governments and government agencies. “Sales to customers outside the U.S. accounted for 41 percent of our revenue in 2009,” the company said in a prepared statement.

Ove rcast in Land of the Rising Sun
While the recession pounded While the recession pounded markets the world over, it hit a weak Japan even harder. Despite the odds, the Top 10 performers included three companies from the world's secondlargest economy: JVC, Tamron and Aiphone.

Currency valuations had a negative effect, with the yen appreciating faster than the US dollar and the euro. “The Japanese economy remained sluggish, as the capital investment and employment situation remained at a low level and consumer confidence continued to be stagnant,” said Morio Ono, President and CEO of Tamron, in a prepared statement.

Tamron's revenue fell 20.2 percent, witnessing improvement in the fourth quarter of 2009.

Some economic measures have stimulated demand at home, showing signs of recovery, Ichikawa said.

However, Aiphone fell 13.9 percent due to the economic downturn, amid increased insecurity about employment and consumer spending in the future.

In the professional AV systems business, where JVC regards security as its highest priority business, it is striving to win more orders by introducing new products lineups that utilize its camera and mechatronic technologies, the company said in a prepared statement.

Find More 2010 Security 50 Articles :

● Asia Weathers the Storm

● Growing Profits in Lean Times Part Ⅱ

● Growing Profits in Lean Times PartⅠ

● Bucking the Downward Trend: Top 10 Revenue Growers of 2009

● Security 50's Top Performers Rise Above the Fray Part Ⅱ

Accessing and Assessing Biometrics

Editor / Provider: a&s International | Updated: 11/9/2010 | Article type: Tech Corner

Anyone accessing highly sensitive areas must be authorized, and there is no better authorization code than a person's biological signature. Although some areas of this technology are still in the development stages, other areas, such as fingerprint readers, have already been widely deployed.

According to Acuity and International Business Group, the total size of the biometrics market in 2009 was between US$2.6 billion and $3.4 billion. Much funding has been placed into the development of biometric technology and it is no surprise since it may become the most failproof method of reading a person's credentials. “The higher the security level is for a site, the more expensive the hardware investment is since the more complex the system will be,” said Vincentius Liong, a veteran security system consultant. “Site security and accuracy are determined, adjusted and fine-tuned based on the asset and people protected, security threats and overall security level and comfort. One of the best ways to do this is by providing access according to the department and authority and by limiting access through customizing the front-end management software. Every department will have its own PC workstation, user name, password and access level authority to monitor and control its area of responsibility through their own PC.”

The use of biometrics such as fingerprint, hand geometry, iris recognition and facial recognition, along with RFID contactless smart cards, is now becoming common in high-security applications, Liong said.

A Unique Key
Each type of biometrics has different benefits and vulnerabilities in terms of cost and performance. The “correct” one is chosen based on the client's system and the level of security required, said Philip Verner, Sales and Marketing Manager for CEM Systems (a Tyco International company). “Fingerprint and iris recognition have proved to be the most popular methodologies of choice.” Issues such as the environment, networkability, ease of use, processing time and vulnerabilities must be assessed when choosing a biometric technology.

“Clients have generally opted for fingerprint as it is relatively low-cost, easy to use and widely available,” Verner continued. "As a more accurate option, iris recognition is chosen by some but has issues such as a higher price per unit and slower speed of authentication. Thus, a fully integrated finger biometric solution is recommended.”

According to Daniel Ong, VP of Certis Technology International, Certis CISCO Security, fingerprint is the preferred form of biometric identification as it is still the cheapest, fastest, most convenient and reliable mode of unique identification. “However, iris and face recognition are rapidly gaining market share,” said Stewart Hefferman, CEO of Omniperception. As markets evolve, vendors are forced to move to commercially available, off-the-shelf components, using open platforms so that the production costs, and more importantly, support and installation costs, are reduced. Standardized interfaces and protocols will equal such cost reductions, Hefferman said.

In spite of such developments, biometric technology still remains unaffordable for certain applications. Only a small percentage of the market is using biometrics — less than 10 percent, Enser said. However, many clients have shown interest; so, efforts are being made to reduce the cost of biometric devices. “Biometrics are being used, starting from small and straightforward access control systems, to foolproof time and attendance for SMBs and other complex and comprehensive applications for critical data centers and other industrial applications,” Liong said.

Currently, however, cards remain the primary access key for physical access control. “Biometrics, specifically fingerprint scanners, are more commonly used as a secondary or alternative security layer,” Ong said. On the other hand, there are instances where biometrics are used as the primary form of identification. Accurate identity authentication through biometrics becomes essential for certain industries where the number of employees is very large, and shift rotation and remuneration are normally calculated by the hour. By being able to use biometrics to schedule shifts, both time and money can be saved by eliminating the hassle of filling out and filing paperwork.

Challanges
Reliability is still an issue of concern and debate. Many believe that the technology has yet to fully mature and has greater error rates compared to other forms of credential verification. In the case of finger and hand scans, common problems in faulty reads are generally due to dirt, oily fingers and fingers with almost no fingerprint. “Different sensor modules such as silicon-based, optical and capacitive, along with the algorithms, provide different performance and reliability,” Liong said. “The environment must be considered. High-traffic, outdoor conditions, electrostatic discharge, impact and scratches, and various contaminants such as sweat, dirt and oil can all affect the results.”

In addition, recognition algorithms can be used to compare credentials with all the templates in the database. “The common practice right now uses a group-matching technique, which groups users and only does print comparisons with templates within that group. The larger the user database, the higher the probability is of acuiring a high false-acceptance rate.” Ong said.

In terms of installations, the most challanging installations take place when the training and knowledge possessed by the installer and/or user are poor. “ Most commercially available products are underpinned by robust R&D, and while this aspect of performance can always be improved, it is generally the simpler things that go wrong. Biometric systems are particularly susceptible to poor user experience if training is poor,” Hefferman said.

The Future
It has been noted that the penetration of biometrics has been somewhat slower than originally forecasted. “This is due to a combination of the recent economic downturn, cost and, particilarly, the complexity of such solutions,” said Timo Jauhiainen, VP of Sales & Marketing, Idesco. “Another likely attenuating factor that we suspect is a rise in privacy concerns over the storing of biometric data. A competitive market itself will continue playing the largest role in differentiating product offerings over the short term as companies seek to leverage advantage in either quality or pricing." As the industry evolves, it is inevitable that growing demands for performance in accuracy, speed, security and convenience will accelerate product differentiation.

Vendors will distinguish themselves by focusing on different types of biometrics, and there are emerging ones such as ear, nose, knee and bone scans. Others will concentrate on specific geographical locations where support and cost of sale can be kept low. “Diversification across geographical and vertical markets is key for survival,” Hefferman said. For many smaller organizations, identifying niche applications and ensuring they add value to the sales proposition are critical in remaining in the game.

Smarter Response to Threats

Editor / Provider: a&s International | Updated: 10/13/2010 | Article type: Tech Corner

What makes a physical security information management platform good or bad? Reliability and cost-effectiveness are key issues, as well as an intuitive user interface suited for different operators.

Physical security information management (PSIM) expressly exists for situational awareness. A good platform has the potential to prevent situations from getting worse. In the event of a fire or other life-threatening scenarios, an integrated response may save countless lives.

However, a PSIM solution with a complicated user interface can create problems for operators to navigate and respond quickly, said Alf Chang, Senior Consultant for A&S magazines.

Good PSIM should unite systems into a holistic platform. “PSIM needs to have the ability to seamlessly fetch all data and then translate that in a single, analytical presentation and archival form,” said Bhaskar Ganguly, Global Marketing Director for Critical Infrastructure Protection, Automation and Control Solutions, Honeywell International.

PSIM systems must account for human psychology, especially in crises. “During an incident, it's imperative that the operators get all of the information they need in a way that is easily understood, without being overwhelmed with noncritical data,” Ganguly said.

Any platform for convergence should be simple to operate. “A system that requires less interaction with the operator is normally the best solution,” said Ken Pereira, CEO of OneBerry Technologies. “Automation is the main ingredient that makes or breaks a solid PSIM solution.”

Ease of use is achieved through intuitive features and extensive automated processes. “Workflows f o r ope r a t o r s on one GUI are essential, combined with the flexibility of portable communication integration,” said Stephen Moody, Security Development Manager, ViS Security Solutions. “This allows for incident control and the efficient deployment of operatives on the ground.”

A good solution should meet user needs and apply the most simple and efficient architecture, said Daniel Kok, Business Development Manager for ADC Technologies International. Conversely, a bad solution would include too many components from multiple vendors, which system integrators have no control over.

System Stability
A good PSIM platform should keep running, even if one of its subsystems goes down. “There have been a number of instances when a certain module or component did not meet the requirements of the project during actual usage,” Pereira said. “And when this particular module failed, the whole system was affected. It is advised that clients should go with a complete system that has been extensively tested. The key to a reliable system is decentralization.”

A modular approach can prevent installations from coming to a grinding halt, such as offline operation of building and security systems at certain times, Chang said.

Good networking practices can keep systems from crashing. “While system availability can never be 100-percent guaranteed, the risk of failure can be significantly reduced by incorporating standard IT redundancy and failover architectures,” said Brandon Arcement, Manager of Global Security Technology, Building Efficiency, Johnson Controls.

Along with network redundancy, users can use secondary verification techniques. “For example, an alarm can be validated through secondary sensing like video or access details,” Ganguly said. “In cases when a particular subsystem fails, there is always another sensing point available to the user.”

Customized Solutions
PSIM offers powerful functions, which are not required by every user. Providers need to design customizable but flexible solutions that are tailored to users or applications. A network infrastructure capable of supporting communications across a wide range of verticals would be optimum, said John Moss, CEO of S2 Security.

Computer Network Limited (CNL) uses template modules for specific vertical markets, enabling flexibility and reduced cost. “The advantage of this is the end user only pays for what they want,” said Matthew Kushner, President of the Americas for CNL. “If they need additional functionality in the future, they just need to add modules.”

Modules or business logic templates save administrators time. “These templates repurpose common actions and responses, and are also fully customizable,” said Larry Lien, VP of Product Management, Proximex. “Administrators and integrators can reuse these standard templates or create their own as necessary.”

As there are currently no PSIM standards, some providers make connectors for specific interfaces so systems can communicate. “As we build these connectors, they become part of a library of capability that is part of the commercial-off-the-shelf products,” said Bob Scott, Executive Director of Security Solutions Strategy for Intergraph.

Customers often bring their experience with hardware-based systems, which are notorious for underachieving. “With theses of tware-based systems , we encourage people not to overspecify the system since this can result in unnecessary costs,” said Kevin Daly, CEO of Maxxess Systems. “Once they understand how the system works, they can change it with little or no penalty. With software, you're better off undershooting requirements, getting used to the system and then getting additional functionality.”

Site-specific solutions are best addressed with flexible programming options, said Anand Mecheri, CMO of Siemens Building Technologies. “A rule engine is essential, to avoid proprietary customizations that become very hard to support over the life cycle of the solution.”

A set of rules and workflows can be programmed for one customer and sold to another user with similar needs. However, the client can claim exclusive rights to the solution, said Holger Maier, Product Manager for Building Integration System, Bosch Security Systems.

Multiple Stakeholders
PSIM platforms will be used by administrators and guards, who have unique needs. Authorization levels will also differ for sites with several stakeholders, such as airports with customs officials and law enforcement.

One system may be deployed, but use different GUIs. “You have to enable many protocol transfers in the system,” Chang said.

Administration and access rights are normally based on a hierarchical system, depending on the user's job function and needs, Ganguly said. A good system allows management

to assign authorization to individual users . “The system must be dynamic to the extent of being able to customize access rights for each operator, specifying what can be viewed and controlled, depending on the level of security privileges,” Pereira said. “This feature will allow management to determine the scope of responsibility and monitor the performance of each operator.”

Between Old and New
As PSIM must suit each project's needs, it requires careful planning and implementation. Most PSIM deployments are at new sites, as it is easier to put PSIM into a new site with nothing there, compared to a building with legacy systems. “If the owner wanted to substitute the original system with our system, this is in general more time-consuming,” Maier said.

Newer sites can select best-ofbreed products, making PSIM easier to integrate, Moss said. However, the cost of switching out subsystems may be prohibitive. The existing cable infrastructure, such as analog video lines, can limit upgrades as well.

Greenfield projects can include security in the planning phase. “All aspects concerning data management and integration among different devices must be discussed in detail to ensure that the security requirements are met,” Pereira said. “Locations of the different security devices like cameras and access controls must be part of the structural and electrical plans of new buildings.”

However, increasingly older buildings go through refurbishment for integration, Kok said. Arcement agreed, saying, “In fact, PSIM is often most valuable in facilities and organizations where an owner wants to leverage existing investment in disparate building and security technologies while still enhancing security operations through system integration.”

Regardless of whether the project is old or new, users will deal with stand-alone systems. “In today's world, it's all about sharing better information among systems and providing security operators and related stakeholders with an improved means of collaboration,” Lien said. “PSIM solutions bridge the gap between different technologies, improve processes, enhance security and save costs.”

Price Considerations The powerful performance of PSIM requires an initial investment, on top of existing equipment and subsystems. Most providers sell in modular packages, depending on the number of systems, features and licenses. Maintenance is usually charged separately.

Bosch sells by license, with several options. “The more doors, detectors, cardholders and cameras, the more the end customer pays,” Maier said. “With additional or customized features, you pay an additional price for it. And for the years after the warranty period, customized service maintenance agreements and service level agreements can be purchased to keep the system up and running for years.”

Pricing factors involved include systems, devices and how many manufacturers there are to support. Some installations could have three different ACS vendors, requiring additional integration. “This is largely dependent on the type of customer, as PSIM deployments vary a great deal, so different pricing structures are in place to suit different verticals,” Kushner said.

Going with one PSIM vendor can be cost-effective. “Normally, if the system requires more components to be integrated and the purchase is made under one contract, the cost savings may range from 10 to 30 percent, depending on the size of the project,” Pereira said.

Recurring support needs to be budgeted for. “We do have software support, with access to the help desk, updates and training, at an annual fee of 10 to 15 percent of software cost,” Daly said.

Intergraph combines licenses, maintenance and training in its pricing. “Our software is sold via a perpetual license fee — one time charge for licensed software, which is typically server-side and client-side software modules — with annual maintenance along with implementation services to configure, integrate, train and commission the system,” Scott said.

Users can decide what payment plans fit their needs. “Life cycle cost is always an important consideration when evaluating the purchase of a technology,” Arcement said. “As such, it's important that end users communicate which payment schemes and licensing structures work best for their organizations during the design process.”

Training Operators
PSIM is not plug-and-play and requires training to become familiar with its features. Training for operators can take two days up to two weeks, depending on the platform's complexity.

The system's complexity depends on the site's scale. “To get operators familiarized with the operational aspect of the entire system would depend on an individual's approach,” Kok said. “On the whole, we believe it will offer significant operational cost savings to the organization.”

While PSIM offers increased functionality, it should be straightforward to operate. “The interface and workflow of the platform should provide an intuitive user experience when designed and commissioned properly,” Arcement said. “It helps to have operators who are comfortable with a mouse and keyboard, but they certainly don't have to be programmers to be effective in the control room.”

Evaluation Criteria
PSIM providers usually look for experienced partners and integrators that are familiar with both electronic security and networking. “It is key to have long-term, stable partners when it comes to deployment of high-level, integrated solutions such as PSIM,” Mecheri said.

CNL's criteria include how long the company has been in business, average deal size and how many employees have relevant certifications, such as Microsoft and Cisco, Kushner said.

Maxxess offers training to partners but does not request third-party certifications from them. However, it can be helpful in some situations. “Networking issues are very significant, both in how they affect the performance of our system and how it integrates with other systems,” Daly said.

The integrator should also have a close relationship with the owner and understand the organization's business operations and security processes, Arcement said.

Along with networking skills, installers or integrators should have experience with the connected subsystems. “Many years ago, it was getting wires in a wall, then getting wires to the controller and some keystrokes. Today, this is the easiest part,” Maier said. “The challenging part is to design the optimal system and subsequently to program the functionality according to the customer's organization and requirements.”

System integrators should also evaluate PSIM providers. Irish integrator ViS Security Solutions partnered with Proximex after analyzing its system architecture, flexibility, cost and unique approach. “Proximex has taken significant steps in the U.K. and European region, which provides commitment and quality reassurance,” Moody said.

“We have also found the Proximex team to be proactive and contribute significantly to client requirements and system designs.”

Legacy Challenges
PSIM is undergoing growing pains, ranging from bringing systems together, keeping data manageable and planning for tomorrow. These challenges require time and effort.

Hybrid systems are a hallmark of PSIM for sites with existing equipment. “In an upgrade project, challenges tend to focus around the compatibility of integrating new technology with legacy systems,” Ganguly said.

Older systems can be thorny. “An end user asked CNL to integrate a system which does not have open SDKs or APIs. The manufacturer had developed its product in complete isolation of IT standards, to the point of anti-Microsoft,” Kushner said. “We managed to work around it, but it's the lack of standards that is the biggest challenge we are dealing with.”

A dearth of standards means interoperability is still a long way off.

“The challenges relate to evolving standards, evolving concepts of operations that support the use of integrated technology like PSIM, and the fact this is still an early market, so we are dealing with innovators and early adopters,” Scott said.

Human Touch
A PSIM platform may have countless slick functions, but still must be accessible to humans. Having the highest specifications will do no good if the interface is too overwhelming for practical use. “The challenge for Bosch is to bring a solution that connects to any subsystem and that can be customized to any user's needs, but can still be handled by our certified VARs and integrators,” Maier said.

As projects get bigger, the scope of PSIM becomes more complex. “The big challenge going forward is efficient use of people,” Daly said. “Organizations now are more distributed. It's not just one building or campus, but 40 to 50 sites being centrally managed, often with at least some information sent back to a central point. What you do locally and centrally can be a critical design consideration for these systems.”

It is important for machines to do what they do best — crunch data from multiple sources — while human operators decide on the most appropriate response. This frees up operators from tedious tasks and helps them work smarter.

Future-Proofing
Growth can be difficult to plan for in large projects. “A technical challenge facing PSIM vendors is enterprise scalability,” Kushner said. “Some systems have been designed without enterprise-level scalability in mind, and trying to add this capability is proving very difficult for some companies in the marketplace.”

The future is murky at best, throwing off the best-laid plans. “In a greenfield system, the challenge is to accurately predict and define customer requirements at an earlier stage,” Ganguly said.

A more abstract problem is proving futuristic PSIM systems are real solutions already in use. “Unfortunately, integration is something which has been put in front of end users many times before, and their expectations have been high, only to find very limited integrations,” Kushner said. “Thankfully, PSIM is changing this, and more end users understand that they can build systems that give them exactly what they want.”

Regardless of how the future pans out, integration will be the wave of the future. PSIM harnesses existing technology and networking capabilities, enabling better use of data in a timely fashion. With increased automation of tasks, security operators can see more and respond faster to threats.