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Safran releases 2012 financials

Safran releases 2012 financials

Editor / Provider: Safran | Updated: 2/22/2013 | Article type: Security 50

- Adjusted revenue up 15.5% at US$18.0 billion (Euro 13.6 billion)
- Adjusted recurring operating income grew 23.7% at $1,944 million, or 10.8% of revenue
- Adjusted net income - Group share - rose strongly 55% at $1,320 million
- Solid 2013 outlook

All figures in this press release represent Adjusted data, except where noted. Please also refer to the definitions and the reconciliation between 2012 consolidated income statement and adjusted income statement provided in the Notes of this press release.

Key figures for full-year 2012
- Full-year 2012 adjusted revenue was $17,925 million, up 15.5% year-on-year (8.6% organic).

- Adjusted recurring operating income of $1,944 million (10.8% of revenue), rose 23.7% year-on-year. After a net charge of (66) million for one-off items, mainly related to M&A transaction and integration costs, adjusted profit from operations was $1,878 million.

- Adjusted net income - group share up 55% from FY 2011 at $1,320 million (Euro 2.41 per share). Consolidated (non-adjusted) net income - group share at $1,721 million ($4.15 per share).

- Net debt position of $1,231 million as of December 31, 2012, with free cash flow generation of $745 million (38% of recurring operating income).

- A dividend payment of $1.27 per share (40% payout) will be proposed to the shareholders' vote at the Annual General Meeting on May 28, 2013 (to include the $0.41 per share interim dividend payment paid in December 2012).

- Full-year 2013 guidance: Safran expects adjusted revenue to increase by around 5% and adjusted recurring operating income to grow again by a percentage in the mid-teens. Free cash flow is expected to represent about 40% of adjusted recurring operating income.

Key business highlights for Full-year 2012
2012 civil after market was up 9.4% in USD terms driven by first overhauls of recent CFM56 engines.

Security : Safran acquired for $119 million General Electric's residual 19% stake in Morpho Detection, which is now wholly owned. Morpho Detection received a 5-year non-exclusive contract from the TSA with a maximum value of $528 million for its explosives detection system at airports.

Suprema partner receives Lenel factory certification

Suprema partner receives Lenel factory certification

Editor / Provider: Entertech Systems | Updated: 2/22/2013 | Article type: Security 50

Entertech Systems, the US, Canada and Puerto Rico operating partner for Suprema and its family of biometrics (finger, face, card & PIN), biometric algorithm, SDK, IP Network and application software products, announced its new BioConnect application is now available for systems integrators and users to utilize Suprema's line of leading biometric readers with Lenel's OnGuard access control security system. The company's new BioConnect application has completed the required testing with Lenel to certify its integration with OnGuard under Lenel's OpenAccess Alliance Program (OAAP).

BioConnect allows Lenel systems integrators and users to benefit from Suprema's range of biometric products - BioStation T2, BioStation, BioEntry Plus, BioEntry W – for use in access control or time and attendance. Instead of managing badge records in two different systems, OnGuard for access control and another for the biometric templates, the BioConnect application provides a sync between the two systems.

"The Lenel certification and the OAAP enables Entertech to fulfill our mission to overcome one of the obstacles to mainstream adoption of biometric access readers," said Rob Douglas, CEO of Entertech. "Using our BioConnect application, combined with the strength of OnGuard and Suprema, we are taking a strong step forward in reducing the cost, complexity and user onboarding issues for the benefit of the many Lenel customers."

Suprema consistently delivers market leading technology, and was included in a&s magazine's prestigious Security 50, a ranking of the 50 top security companies in the world. The Security 50 includes world-class security manufacturers in the areas of access control, biometrics, video surveillance and intruder alarms.

Are things changing in China?

Are things changing in China?

Editor / Provider: Memoori Business Intelligence | Updated: 2/21/2013 | Article type: Hot Topics

The structure of the business has morphed not just to compensate or accommodate but also to meet and beat the challenge and deliver growth. The latest report forecasts growth of 4% across the globe in product sales in 2013 but that will depend on much higher levels of growth in Asia and particularly China.

In this article we take a look at both the demand and supply side of the physical security industry and how it is shaping up in China and why we are about to see much more two way trading between the West and China.

China - The Fastest Growing and soon to be the Largest Market in the World
Despite a fall in GDP growth in the last few years demand for physical security in China has forged ahead delivering a CAGR of some 25 to 30% over the last 5 years, the highest growth recorded in our industry and there is no indication that growth will fall off in the near future.

One of the reasons for this is that the penetration of security systems in China is still remarkably low. The GDP per capita in 2012 is projected at $6,120, and sales per capita was $2.4 per capita showing that the potential for future growth is enormous and would have to grow 6 times to equal the current penetration level in North America. So why is it that US and European manufacturers are not making a better job of exploiting the Chinese market? Conversely why is it that Chinese manufacturers are having difficulty in establishing a solid presence in the developed markets of the world with the exception of delivering through OEM channels.

China is developing a strong indigenous manufacturing supply industry and in particular two companies Hikvision Digital Technology and Dahua Technology are growing fast increasing their share of the local market. They have also been taking product business away from Taiwanese and Korean manufacturers in western markets.

Hikvision sales in 2012 were somewhere around $1.2 billion, a growth of 40% over 2011 and of this export product sales of DVR/ camera equipment was around 35%. The majority of growth has come from domestic acquisitions, of access control, guarding services and specialist vertical market systems integration companies. They are developing a similar model to Honeywell and Schneider of developing a systems and product business separately.

Hikvision's latest Q1~Q3 report showed total assets around US$2b. At per share value of about RMB$32 and about 2 billion shares available (2,008,611,611 at the end of Sept 2012) giving it a valuation of US$10 billion. We don't have any recent info on the cash flow, but judging from the 2011 report and the growth rate of 40%, it could be around US$1.2 billion. So Hikvision (ranked by IMS Research as the world's largest supplier of DVR and video surveillance equipment) could also soon become one of the world's largest suppliers of security systems.

Technology and Getting the Marketing Message Across is Imperative
There is little point in comparing Hikvision ‘s success with that of Axis Communications the No1 supplier of IP surveillance networking cameras, because their business models are quite different, but it does beg the question of why Axis with its technological leadership has not yet made a bigger impact on the world's fastest growing market. One of the reasons could be that analogue systems are still flavor of the month in China and as such it is difficult to make the breakthrough with IP systems because the distribution channels are still immature. Local manufactures rather late in the race are now moving ahead with this technology but are way behind the western early adopters. Does this now leave the door wide open for Axis communications and other specialist manufacturers of IP products?

Some 15 years ago fire detection systems in China moved almost overnight to analogue addressable systems that cost double the price and no local manufactures could supply them. Imported products flooded in and the local system installers quickly learn how to install them. Although moving from analogue to IP requires more skill, it will happen, and in China it will come quickly. Price is no longer king in western markets but cost of ownership made up of many factors is; and this will also apply in China as IP takes hold and offers many different and improved solutions

So our take on the Pelco / Hikvision rumor is that it is nothing to do with M&A at this time but using Pelco's IP technology for the Chinese market pushed through Hikvision channels of distribution and Hikvision products into the US market through Pelco's channels of distribution.

Neither has established themselves in each other's backyard, despite a lot of time, money and energy being spent and here is an opportunity for them to do it in a joint market that our report predicts will account for 60% of the world's market by 2017. If the alliance works they can then join together to become the No 1 Video Surveillance manufacturer / system supplier in the world if it suits both parties.

Whilst China is about to become the largest market in the world and although it is dominated by indigenous manufacturers it does not have one company that strides the international stage comfortably with products at the leading edge. Hikvision come closest and its alliance with Schneider which was announced in July 2012 is one part of its strategy to change this. We think others will follow.

Morpho to maintain EU visa-matching systems

Morpho to maintain EU visa-matching systems

Editor / Provider: Morpho(Safran) | Updated: 2/21/2013 | Article type: Security 50

The European Commission Directorate General for Home Affairs has awarded a consortium of Accenture, Morpho (Safran) and HP, a contract to maintain the European Visa Information System (VIS). The contract is for three years with a possible one-year extension to a maximum value of €70 million (approx.US$93 million).

The project will support the exchange of visa data across border management authorities by ensuring the processing capacity of the system and the availability of high levels of search and matching capabilities required for visa applications. The VIS system went live, on schedule, in October 2011 and has since experienced increased usage by consulates in non-EU countries and external border crossing points of Schengen states.

As consortium lead, Accenture will assume overall project responsibilities, overseeing the integration of functional, technical and operational maintenance to the VIS, and Morpho will provide biometric matching services. Accenture and Morpho (as the Bridge Consortium) have worked with the European Commission since 2007 on the development and support of the biometric matching engine of the VIS.

“Morpho is proud to have been chosen, once again, to supply the biometric matching services for the VIS,” said Jean-Paul Jainsky, Chairman and CEO orpho. “Biometrics has become a key element for effective border management, and as the world leader in biometric technology, we are committed to developing state-of-the-art solutions to meet the current and emerging needs of this market.”

VIS is at the core of the visa application process to the Schengen area and enables Schengen States to store and exchange alphanumeric and biometric data relating to visa applications of third-country citizens. As a subcomponent of VIS, a biometric matching system enables the accurate identification of visa applicants through matching biometric data, such as fingerprints, to identities to establish and verify visa applications.

Bosch releases BIS 3.0

Bosch releases BIS 3.0

Editor / Provider: Bosch Security Systems | Updated: 2/20/2013 | Article type: Security 50

With the latest release of its Building Integration System (BIS), Bosch Security Systems offers improved scalability and third-party integration, efficient video and access integration as well as improved situational awareness. Combining different building management functions in one platform, the BIS presents a flexible, robust, standardized interface to various subsystems. This proven solution integrates security, life safety, communication, and building management in one front-end system with a customizable user interface.

Integration benefits
BIS features optimized third-party integration that allows connections to even the most complex subsystems, including building management systems with such analog sensor values as temperature, power consumption or oxygen levels, which can now be graphically displayed on the operator client. So for example, by monitoring energy consumption or air quality and temperature, an operator is able to react much earlier and therefore, before a critical situation arises.

Now, with the update to version 3.0, video integration has been further enhanced. It supports any Bosch recording solution from DVR 400/600/700 to BRS plus the latest VRM version. At the same time, new video devices can be integrated much faster due to frequently updated driver packages. The system can now also act on events triggered by the Bosch IVA, such as automatically initiating an evacuation procedure if an abandoned piece of luggage is detected. Or, if a crowd is forming in front of an emergency exit during a fire alarm, additional exit options could opened.

Similarly, at the user level, many small but effective improvements have been implemented to increase the situational awareness and efficiency of the security operator. These include a much better correlation of alarms and related videos reducing the response time in critical alarm situations and handling large amounts of card holders in the seamlessly integrated access engine. Finally, version 3.0 heralds the next BIS generation with an up to date modernized user interface.

TI offers iris recognition module on DSP

TI offers iris recognition module on DSP

Editor / Provider: Texas Instruments | Updated: 2/18/2013 | Article type: Component

Iris recognition is becoming an increasingly important biometric identification technology, growing at a CAGR of 27.5 percent, according to MarketsandMarkets research. Today, TI Design Network member IriTech announced the IriShield iris recognition module based on the TMS320C6748 DSP. Starting at the low price of $110, the IriShield module maximizes system security of applications requiring secure access and identification, including mobile banking, time and attendance, and point of sale systems. The module also integrates seamlessly into customers' existing product lines at a low cost.

Maximize system security
TI's C6748 DSP accelerates computationally intensive functions, enabling IriTech's embedded algorithms to complete a matching query against 1,000 stored user identities in 750 milliseconds. In addition, IriTech utilizes TI's DSP to securely store and communicate data using integrated security features.

"TI's DSPs offer parallel processing of computationally intensive algorithms to enable real-time biometrics access control and identification systems,"said Matt Kurtz, Business Manager of Singlecore DSP, TI. "In addition, our C6748 DSP offers a variety of integrated security features to safeguard proprietary algorithms and sensitive user data, giving both systems developers and users the ultimate in security."

Seamless integration
IriTech's IriShield module—with a form factor smaller than a credit card— integrates seamlessly into customers' existing product lines and is easily portable. The module offers an out-of-the-box demo that can be up and running within minutes. With a fully featured, productized application programming interface, developers can quickly and easily access embedded iris recognition functionality from the host processor.

Pricing and availability
IriTech's IriShield module, based on TI's C6748 DSP, is now available starting at $110 in 5,000-unit quantities — the lowest price in the industry. Unit pricing is $180. For more information about quantity pricing, please contact IriTech directly.

Analog integration
IriTech's IriShield module leverages TI's extensive analog IC portfolio. IriShield integrates TI's TPS650061 power management multi-channel IC solution as well as TI's TPS3805H33 high-accuracy dual voltage detector. The PMIC integrates one 1A buck converter with Spread-Spectrum-Clock (for reduced electromagnetic interference and two low drop-out regulators. The high integration reduces the bill of materials cost significantly by cutting six chips down to two.

Get smart with TI
TI's embedded analytics technology unites the power of embedded systems with the intelligence of the human senses to enable systems to analyze information and make intelligent decisions. TI offers a robust portfolio of real-time embedded processing system solutions integrated with smart embedded analytics.

IDIS to launch total IP surveillance solution

IDIS to launch total IP surveillance solution

Editor / Provider: IDIS | Updated: 2/14/2013 | Article type: Security 50

With a fifteen-year history leading the surveillance market as an OEM for some of the world’s largest security organizations, IDIS will launch its own suite of IP HD cameras, NVR and VMS built on IDIS’s game changing DirectIP framework and protocols. The solution suite provides the industry’s first true one-stop-shop HD surveillance solution from a single source provider, while the DirectIP framework and VMS allow simple, low cost installation and ease of use previously only associated with analog systems.

Brian Song, European Director, IDIS, noted: "As the proliferation of IP and HD systems has grown, our customers and partners frequently report frustration with the many challenges presented by an overly fragmented and unnecessarily complex surveillance marketplace.

Customers, installers and end-users face difficulties related to increased integration and implementation costs, growing complexity in network configuration, and the sheer effort and cost tied to the maintenance of varied equipment from multiple vendors. IDIS’s new, fully integrated DirectIP solution suite addresses these challenges both definitively and affordably"

IDIS has drawn upon its extensive R&D and on-the-ground expertise to develop a best-in-class HD surveillance solution. This DirectIP solution suite will provide unrivalled simplicity, evident immediately from ease of installation and integration through to daily use of its user-friendly interface DirectIP from IDIS will provide the first true end-to-end, plug and play solution by delivering instant recognition by the NVR of every networked camera ~ enabling end users to start monitoring live video immediately without cumbersome network configuration requirements. It will further eliminate the complexities of traditional networked surveillance systems with an installation that no longer requires the manual input of device IP addresses or related port forwarding and routing. The DirectIP switching hub and camera registration will allow multi-connection structures between NVRs while supporting PoE devices and simple, uncomplicated integration with intruder alarms and other electronic security systems.

The IDIS solution will provide real-time live monitoring with HD resolution from outstanding network throughput maintaining a stable HD resolution regardless of external network traffic while cameras will record direct to the NVR in real-time (in an HD resolution or higher). In addition, the IDIS NVR will be equipped to perform five key Pentaplex processes simultaneously, with no degradation of image quality or network interruptions ~ live-view, record, playback, remote access and backup of audio and video files, giving users greater choice and ease in everyday use.

Ease of use is the name of the game

Ease of use is the name of the game

Editor / Provider: Christina Phillips, a&s International | Updated: 2/12/2013 | Article type: Tech Corner

With the advent of affordable IP cameras and storage devices, the drastically enlarged surveillance market has given birth to a mammoth amount of surveillance data that needs to be properly maintained. Ease of access and management has become the name of the game.

Affordable IP products from major manufacturers have helped accelerate the digital migration, said Tim Biddulph, IP Product Manager for Europe, Samsung Techwin. "The main driver behind the migration from DVRs to NVRs is standardization. The vast majority of current buildings utilize a structured cabling system designed to support all the systems within, from telephones to building management. It is only logical that security systems should also use the same infrastructure."

New projects, as well as upgrade projects, in EMEA are gradually moving to IP, while in the Americas, government and enterprise sectors have already adopted IP solutions, said Evelyn Kao, Product Manager at Qnap Systems. "However, some developing countries are still using analog solutions," for presumably even lower prices and technical entry barriers

While larger projects are demanding networked solutions of some sort, analog is still the dominant choice for smaller installations or home applications, Biddulph added. However, with the advent of network home cameras and cloud solutions, even these sectors are starting to go with IP.

"Worldwide NVR sales will certainly expand. Among others, Asia's migration to IP systems is remarkable, and such a trend will reinforce the growing number of NVR sales," noted Alex Iida, Senior Manager of Visual Security Solutions for APAC, Sony Electronics.

NVRs are also starting to be used in more scenarios, especially with the launch of 4- and 16-channel units that look and feel much like analog DVRs, Biddulph said. With a monitor output and DVD writer, these NVRs make IP solutions easier for smaller installers and operators.

Another factor is PoE-enabled NVRs that allow for plug-and-play. "We are the first manufacturer to develop and successfully implement PoE NVRs. The plug-and-play capability makes everything much easier, especially for the SMB and DIY markets," said Colin Wang, PM for NVRs at Dahua Technology.

These days, NVRs are rack-mountable and are even available in one-rack unit sizes. Many NVRs are open platforms to facilitate maximum flexibility and scalability, which is especially useful when deploying large or enterprise solutions. Many of the embedded NVRs' functions bear resemblance to their DVR predecessors. In addition, many NVRs' GUIs are exactly the same as DVRs, so switching from DVRs to NVRs does not put any unnecessary burden on users as they do not need to change their usual routine or undergo additional training.

For 16 channels and under, only basic IT knowledge is required. With PC-based NVRs, the number of channels is "unlimited," and even more convincing is the VMS providers who offer free software that is preinstalled in their NVRs. For an even smaller number of channels such as 4 or 8, one can opt for a PC-based NVR approach by using a desktop PC and entry-level VMS; however this set up offers limited flexibility and functionality.

[NextPage] NVR Requirements
Thanks to the advent of storage media such as IP-SAN, eSATA, NAS and FireWire, embedded NVRs have overcome the perceived notion that their storage capacity is limited. Without storage capacity concerns, embedded NVRs are quickly gaining traction; now both types of NVRs are on a level playing field. Although everything is embedded, embedded NVRs offer more than what meets the eye; they support the interfaces of other surveillance devices to enable convenient integration with alarm and access control systems, as well as PTZ remote control systems.

Functions and features that a decent NVR should encompass are flexible recording and playback capabilities, a user-friendly and remote-controllable GUI, intelligent motion detection and PTZ camera control. "Based on our experience and industry reports, the CAGR of embedded NVRs is approximately 40 percent. Therefore, we predict the global market for embedded NVRs to reach $460 million in 2013," Kao said. "Both APAC and EMEA regions, especially with the popularity of smartphones and tablets, are showing strong demand for mobile surveillance. Access control, storage expansion, I/O and VCA features and capabilities are also frequently requested. For the Americas, most requests are for vertical integration, mobile surveillance and storage expansion."

SMB applications are taking an increasing market share of NVR products, especially with the price of embedded NVRs being relatively lower compared to PC-based NVRs (with additional VMS fees). "Embedded NVRs enable users to experience superior performance in terms of ease of use, system stability and decoding capability," noted Eric Shen, Product Manager at Hikvision Digital Technology.

Linux OS optimizes stability by only running relevant surveillance applications. Embedded operating systems contain only the software components necessary for the specific functions of the NVR, and are configured with optimum configurations (backed by rigorous testing) straight from the factory.

The precise architecture of embedded NVRs ensures that they are less prone to crash, such as fanless designs and wide temperature operations etcetera. As the controls are embedded right into the NVR, the activity of users can therefore be more easily restricted to work-related use. An industry expert warned that many security personnel who, not surprisingly, get tired/bored from staring at monitors all day think to themselves upon seeing the Windows logo, "Perhaps it's ok that I play or download games like I do with my home computer or perhaps I can download or upload stuff from my phone through the USB port." Entire security systems have regularly been interrupted by staff members "merely" plugging in their phones. With embedded NVRs, foreign devices are not recognized. In addition, most run Linux OS, which is basically free from the risks of being infected with viruses, spyware, adware and malware.

[NextPage] Decoding
Embedded NVRs consistently outperform PC-based NVRs in terms of complex decoding as well as being able to provide more reliable video playback and preview. Some of these NVRs are able to perform both local decoding and playback, and can decode up to 16 channels at 1,080p. To achieve comparable performance, PC-based solutions require more expensive CPUs to accommodate the processing demands.

The power consumption of an average embedded NVR is 70 Watts, which is less than a regular light bulb. In comparison, the average power consumption of a PC running an NVR is about 250 Watts.

Repair Process
Sending back faulty hardware through a manufacturer's return merchandise authorization (RMA) is costly, time-consuming and oftentimes frustrating. For mission-critical applications, extra hardware expenditure must be allocated for spares in order to eliminate down time. Another option is to look for NVRs that have VMS preloaded in the disk-on-module (DOM) chip. This way, instead of shipping the whole machine back, only the small DOM needs to be replaced, suggested Sara Lin, VP of Instek Digital. "Our NVRs can be equipped with a powerful DOM, which contains Linux operating system and management software."

Other Considerations
Perhaps choosing the right systems integrator (SI) is just as important as deciding between DVRs and NVRs. Common belief is that SIs with IT background have a distinct advantage over SIs without sufficient IT or network background, for they are thought to be able to offer better service and support. “Many SIs also act as the platform developer and provider, and because they have more experience in platform development, many times they can meet customer requirements in a shorter time frame,” Wang said. Solution developers now put more investment in software and services, transforming themselves from merely product providers to total solution providers.

"When choosing an SI for surveillance projects, it is important to look for a balanced level of knowledge with regards to surveillance and IT systems," Iida said. "In addition, we believe offering better service and support is part of the value and identity of SIs."

German credit union ups security and lowers cost at 64 branches with centralized surveillance

German credit union ups security and lowers cost at 64 branches with centralized surveillance

Editor / Provider: Axis Communications | Updated: 2/11/2013 | Article type: Commercial Markets

The main business of Sparkasse Kraichgau, which employs 756 employees, are medium-sized businesses and private customers. Originally, Sparkasse Kraichgau worked at their 64 locations with analog video surveillance systems from different manufacturers. Separate providers had been commissioned, even for the installation of the individual systems. This resulted in high maintenance costs, since the stand-alone systems were often difficult to reconcile. A central monitoring and control was not possible. In addition, each site required its own monitors and servers.

Since autumn 2009, Sparkasse has gradually been converting to a single system, using Axis network cameras, Axis video encoders and Seetec software. The advantages: Axis supports integration into the existing system and centralized management via the Sparkasse IT department. This saves costs and increases the responsiveness and, as a result, the safety of employees and customers.

The gradual transition to the new video surveillance system was conducted by SPIE Deutschland System Integration GmbH in Karlsruhe, Germany. “With the connection to the central video management, data exchange has accelerated considerably. In this way, we notice immediately if the system freezes, if the camera is rotated or if an object is moved in front of the lens,” says Hubert Roth of SPIE

Thanks to our video surveillance systems, security in regards to robberies, card fraud and technical difficulties has increased,” explains Edwin Roobol, Regional Director Middle Europe at Axis Communications. “The integration of existing systems and the central management also reduces operational costs.” Only in the commissioning and malfunction of the video system do the SPIE technicians enter the picture. The rest is done by the credit institution's in-house IT department. Even routine maintenance is carried out centrally via the IT department.

"The self-explanatory system by Axis in combination with Seetec offers distinct advantages," says Hubert Roth. "Sparkasse can perform most of the work themselves, before we have to intervene as an external IT service provider."

"Several things were important to us in the transition to a new video surveillance system," explains Klaus Gutermann, Director of Organization at Sparkasse Kraichgau. "We wanted to incorporate the video image into our own IT system, to manage it ourselves and to be able to expand it little by little, which naturally provides us with great economic benefits. We also wanted to be able to immediately see what was happening in the branches in the so-called K-case, in other words, in hold-ups, so that we could react promptly. The new Axis system meets all these requirements."

Installation and repair from a single source
One third of the surveillance cameras have already been replaced. A total of 60 Axis M3114-R network cameras are in use in 20 Sparkasse branches. The headquarters in Bruchsal is especially well monitored, for example. The gradual transition to the new video surveillance system was conducted by SPIE Deutschland System Integration GmbH in Karlsruhe, Germany. Their services range from the installation of the software, over the connection of the cameras to the server and the integration of the ATMs into the system, to troubleshooting.

Robberies have declined significantly. According to accident prevention regulations (BGV), wherever Sparkasse employees come into contact with cash, surveillance cameras are to be installed. At each counter, BGV certified Axis overview cameras are mounted which send razor sharp images by video streaming in HD at 720p resolution to the network center. Using progressive scanning technology, the cameras consistently obtain clear images, even if the objects are moving. “The cameras have a highly deterrent effect,” explains Hubert Roth, safety engineering team leader of the IT service SPIE. “Thanks to video surveillance with high quality images, the security for the customers and the employees has increased significantly.”

Danger is not always imminent. Even when experiencing technical difficulties, the system will automatically send messages in real time to the operator. “With the connection to the central video management, data exchange has accelerated considerably. In this way, we notice immediately if the system freezes, if the camera is rotated or if an object is moved in front of the lens,” says Hubert Roth.

Seamless integration of analog cameras via encoders
While robberies are becoming more and more rare thanks to cameras, credit card fraud is moving increasingly into the focus of surveillance. Particular attention is given to the events at the ATMs. Here, analog cameras are currently used, most of which were built by the manufacturers of the ATMs. With the help of Axis, video encoders can integrate them into the IP-based video surveillance system. One Axis M7001 video encoder per camera converts the analog video signals into digital signals, which are then sent to the head office. Also in other areas where analog cameras are still used, such as in the underground parking garages of the Sparkasse, digitization is conducted by Axis encoders.

Card fraud almost always detected in time
Thanks to its compact size, Axis M7001 is ideal for the discrete surveillance of ATM's, for which various data protection regulations have to be met. Thus, the typed PIN can not appear in the image detail of the camera. Recorded data may only be stored for a limited time, and it can only be evaluated when card fraud is suspected. Using software, card numbers, pictures and time can be associated to each other in retrospect – and with great success: “In 98 percent of all cases, Sparkasse can report the fraud to the police right away,” says Roth.

Multifactor authentication provides the pieces for peace of mind

Multifactor authentication provides the pieces for peace of mind

Editor / Provider: Tevin Wang, a&s International | Updated: 2/8/2013 | Article type: Tech Corner

According to Report Linker, the multifactor authentication market is expected to grow 17.3 percent from 2012 to 2017 to a market worth US$5.5 million. Something we have indeed removes the problem of forgetting something we know, but now the object(s) must be with the user at the time that he or she wants to be authenticated.

"In the realm of physical security, the failures of companies and governments to protect our private information (personal and financial) are a lesson that what once served as sufficient security (username and password) is no longer acceptable. We have come to accept that card access provides a low level of security," said Adam Shane, Senior Systems Design Architect, Amag Technology (a G4S Technology company). "Cards can be duplicated, spoofed, modified or stolen. There is nothing that validates the authenticity of the card, nothing that binds the card to its owner, and in some cases, nothing to verify the issuer still trusts the owner to have the card."

The driving factor behind multifactor authentication is to increase the security level in an organization and only allow entry for permissible personnel, said John Davies, MD of TDSi. Multifactor authentication is becoming more important because more systems are connected over the Internet and are exposed to huge numbers of people.

Aside from existing compliance and regulatory pushes, the cloud is another driver for deploying multifactor authentication. "Traditional barriers that have been deployed to secure IT systems, such as firewalls, are becoming less relevant due to a growing move toward the cloud, which means an increasing amount of company data no longer resides on company networks," said Julian Lovelock, VP of Product Marketing for Identity Assurance, HID Global (an Assa Abloy company). "Traditionally, enterprises have stored key IT resources behind a firewall on corporate servers, or in a ‘walled garden.' But, with the rapid growth of the remote workforce, the time and effort enterprises have put into reinforcing that ‘wall' have seemingly been wasted, as more data begins to reside outside of the corporate network. All of these trends are leading toward a model in which organizations focus on protecting individual resources with strong authentication, as opposed to simply protecting the wall."

Chris Cardell, CEO of SyferLock Technology, agreed. Megatrends, such as the emergence of cloud computing, server and desktop virtualization, the proliferation of mobile technologies and bring-your-own-device possibilities, the increase in employees requiring remote access, and the increased use of social networking in the work environment, have created new vulnerabilities and risks for companies. "Users expect to be able to access information from virtually anywhere via the Internet and mobile devices such as smartphones and tablets, and that means it is harder than ever for IT and security executives to ensure that all the organization's information assets are protected," Cardell said.

Growth Verticals
Growth verticals for multifactor authentication include hospitals, banks, airports, data centers, large corporations, IT server rooms, universities, research labs, government departments and other organizations working with sensitive materials such as defense. "In some industries such as health care and financial services, the emergence or evolution of regulatory requirements is forcing even more stringent implementation for strong authentication. For instance, in the U.S., health care organizations must be compliant with the health insurance portability and accountability act (HIPAA). Relying solely on usernames and passwords will no longer be sufficient for secure access to data, particularly sensitive information such as patient records," Cardell said.

The US government has also mandated that access to physical and cyber assets in the executive branch requires use of a personal identity verification (PIV) card, Shane said. "This card supporting PKI validation is federated and therefore trusted across all agencies, and supports multifactor authentication (credential, PIN and biometric). Not all systems will be upgraded to support this high-end authentication token as PIV cards can cost the US government about $100 per person and that does not include the regular maintenance overheads. But progress is being made."

Rick Focke, Senior Product Manager at Software House (a Tyco Security Products company) is optimistic about the retrofitting projects and potentials of biometric based solutions. “The US federal government is a large market and one where the need for upgrades and additional solutions are still needed. In this market and in others, as installation volumes rise, costs should begin to decrease.”

The increase in employees, contractors and e-commerce customers requiring secure access, both remote and on premise, to computers, networks and sensitive information are also drivers in the demand for stronger multifactor authentication approaches. For instance, multifactor authentication adoption in banks in the U.S. is not mandated, but more customers in this market are moving to more secure solutions, Shane said. "We see this as a general trend. There are many beneficial reasons to move to strong authentication such as, to reduce financial losses from crime or fraud, improve auditing capabilities (non-repudiation), reduce cyber espionage and terrorism incidents, improve public relations, and the list goes on."

Complex and Costly?
Cost and usability are perhaps the two greatest concerns from enterprises/end user when implementing multifactor authentication solutions. "Adding biometric authentication for identity binding requires not only a biometric capture device at every terminal, but also requires licensing software to perform the biometric comparison," Shane said. "In biometric authentication, there are different ways to handle the process of binding an individual to a card or their credential. In one case, the user's biometric map or template is stored on a card or in a computer database. If the binding process requires users to present their card/credential first, for reading identification numbers (known as a 1:1 match), then costs can be kept minimal as the ID number is used to pull users' biometric data from the protected storage and then the biometric match confirms they are the person they claim to be. Similarly, the presentation of the credentials could release the biometric data directly from the card. However, in other systems, a person may simply provide one biometric identifier (fingerprint, iris or other) and the system will match this against all samples in the database. If the best match exceeds a threshold for acceptance then it is assumedthey are that person. This is called a 1:N match or a search." Compared with a one-to-one match, one-to-many comparisons are expensive.

Multifactor authentication solutions also require the appropriate enrollment or registration software to build the identity database and to manage the identities. "This software can be quite expensive also," Shane added. "We try to help customers understand that there is a continuum of solutions from relatively simple to very complex. Their budget, security concerns, regulatory requirements and consequences are all considered in guiding them to an appropriate solution."

In the case of biometric security, end users may also be worried about purchasing a third-party or bolt-on biometric system that requires two separate devices at the door and two separate software systems being used in parallel. "Another concern is the rate of technology change within biometrics today," said Philip Verner, Regional Sales Director for EMEA, CEM Systems (a Tyco Security Products company). "An emerging biometric technology today can go end-of-line within a considerably short period of time and this can make end users hesitant when choosing a biometric solution. When considering Iris technology, patent or licensing modules used can also be a significant barrier for customers."

Throughput and convenience are still issues for users. For example, a system that requires extra layers of authentication equals an extra delay for individuals trying to enter a facility or an area. "Customers want to avoid time delays or bottlenecks at the door where there is a high volume of staff throughput. Where it may not be convenient to use multifactor authentication all day, we recommend that PIN and/or biometric security be enabled during certain times, for example, at night time when the premises are closed," Verner said.

Usage Considerations
Whichever security model is chosen, the total cost of ownership is a key factor in determining the value of a solution. First of all, end users need to evaluate the cost to use and maintain a typical username and password logon security system. Weak security can result in direct and indirect costs and devastating consequences, due to leaking sensitive information and resources to unauthorized users and intruders. This is not to mention issues resulting from noncompliance to industry regulations.

When evaluating a multifactor solution as an alternative, the hardware, software, system integration, installation, deployment, maintenance and device replacement must all taken into the equation. Besides the direct costs of solution purchasing and software licensing, there can be hidden costs involved. For instance, customers might need to take into account the cost of distributing hardware: tokens, smart cards or biometric readers. Support costs must also be taken into account as there will likely be an increase of support calls after the initial deployment.

These procedures are especially critical for those who do not have a proper risk assessment, and therefore are not clear on what their most important data or assets are or where they resides.

Security only works if the end user follows the policy. Quick and convenient solutions that do not disrupt daily routines are perennial favorites. What is required from any multifactor authentication system is not only enhanced security level but also functionality.

While most corporations purchase systems based on their current needs, scalability is another important factor to consider when evaluating multifactor authentication solutions. Some multifactor authentication systems require significant management when dealing with a high number of users. For instance, tokens can become difficult and expensive to manage due to the fact that they need to be replaced every few years.

Bumpy Yet Rosy
Cost continues to be a challenge, as budgets are tight. "However, the US government is providing funding for HSPD-12 upgrades through the OMB 11-11 memorandum with a stipulation that the money must go to installing multifactor authentication solutions," Focke said.

Current industries that recognize the need for multifactor authentication solutions represent a small market for vendors. "The larger commercial market sometimes is challenged to see the ROI in multifactor authentication when all of the infrastructure costs are considered," Shane said.

The lack of awareness about such solutions requires extra effort on market education. "I think that one significant challenge is the incorrect assumption that the only viable option for multifactor authentication is a one-time password (OTP), and the belief that if the OTP option isn't suitable, there are no other alternatives. The reality is that is not true, and that there are a large number of alternatives," Lovelock said. “"we need to push past that point and educate people as to what those alternatives are, and at the same time highlighting the other key aspects of implementing authentication technologies such as, lower deployment and management costs, the enhanced level of security the technologies provide, and better usability for end users."

Despite these obstacles, the growth potential for the multifactor authentication market is substantial. Biometric readers such as fingerprint verification are gaining traction. "Some specialty applications are also coming to the forefront. For example, the health care market is looking at noncontact devices to help ensure readers remain clean and germ free. This non-contact solution utilizes iris, palm vein or facial recognition level of authentication only," Focke said.

As an expert in physical and logical access integration, HID Global predicts the proliferation of contactless device-based authentication and embedded credentials. "I think we will see technologies that grew up in the consumer space around machine profiling and device forensics being used in the corporate sector, as the consumerization of IT takes a greater foothold. I also believe that an increase in the availability of NFC-enabled devices will open up options for contactless device-based authentication," Lovelock said. "We will see growth in embedded credentials, where endpoint devices like laptops, tablets and phones will be able to securely store, and make credential readily available for use."

Also, software-based authentication solutions are emerging fast. "Because many of today's emerging use cases (e.g., employees and customers requiring secure remote access) are not conducive to legacy hardware-based authentication solutions, we believe that there will be increased demand for flexible, adaptable software-based authentication solutions."

"With increasing concerns about security and with new regulatory requirements, authentication is a growing industry. This growth has resulted in the emergence of a range of authentication solutions, including hard tokens, smart cards, biometrics, SMS text to cell phones, among others, competing in the market place," Cardell said.

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