Major league losing market share

Editor / Provider: Memoori Business Intelligence | Updated: 3/13/2013 | Article type: Hot Topics

The message from the market seems clear; major conglomerates in the security business have given up on their long standing strategy of growth through acquisition. None of them excluding Tyco, have made a significant acquisition since 2010. In the 5 years prior to that they were all active in acquiring businesses both large and small; increasing their geographic scope and updating their technology.

Instead the market now faces, what Martin Gren from Axis Communications calls, "Consolidation by Starvation". He continues "There are now more than 500 manufacturers of IP Cameras and this high amount is not sustainable. The bulk of smaller players will be forced to exit the IP camera industry as they will not be able to afford the necessary R&D costs. The top players, who can effectively execute their strategy and invest in R&D will prosper. Some, but not all, will acquire the relevant technology". Axis fully expect that in 10 years time, the top 10 companies in the world will own about 90% of the total Video Surveillance market.

As the major conglomerates have turned off the acquisition tap the flow of innovative products has declined and with it market share has been lost. So why adopt this strategy?

* They don't think it's the right Time to buy as Exit Values will Fall – Trading conditions in the last 3 years have been difficult and margins have tightened. Larger companies may well have decided to lie low for this reason. But many medium and small specialist companies have grown rapidly and demand in some sectors and countries has been in double figures.
* Difficulty in Raising the Cash – The Conglomerates are cash rich and also have access to plentiful supplies of low interest finance; So this can't be the reason.
* Better Opportunities to Invest in other areas of their Business – This is a strong possibility for Honeywell, Schneider Electric (Pelco), Siemens, UTC, Panasonic, Samsung etc. Some are strong in Energy Conservation, Smart Grid and Aerospace, where they have made significant investments.

The majors have been more successful in the System and Integration business where size and scale is a basic requirement and they feel more comfortable.

We agree with venture capitalist Paul Graham in his statement “It turns out that the rule “large and disciplined organizations win” should be appended by “at games that change slowly”.

We have for some time argued the case that a new model for the products business will kick in and that seems to be happening. The security industry whilst not the fastest mover is undergoing some significant shifts in technology.

There are 4 main reasons why we expect the "new economy" to change the structure of the physical security industry:

1. The pace of innovation is speeding up, not slowing down. Edge based storage and advances in analytics are creating more & more applications for IP Video.
2. Open standards are starting to take a hold and eventually best of a breed will be de rigueur. This will open up competition even further and will reduce the barrier to smaller companies.
3. This increase in competition will then kill off weaker companies and consolidation will come about through open market forces.
4. The strong brand and channel infrastructure of the conglomerates which gave reach and efficiencies in marketing across the globe can now be achieved by small companies through the Internet at a lower cost.

The fact that products become more important in the “new economy” is not a reason to totally write off conglomerates that have interests in security. However it will require them to improve their products performance and in the short term they are more likely to achieve this through acquiring the relatively newer successful companies out there.

For more information, visit Memoori.

**A special thanks to Martin Gren of Axis Communications for his insight and contribution.**

Axis releases affordable wireless HD cam with one-touch setup

Editor / Provider: Axis Communications | Updated: 3/13/2013 | Article type: Security 50

Axis Communications announces the small and cost-efficient Axis M1004-W Network Camera with advanced wireless connection capabilities, 720p HDTV video quality and Axis' unique One-Click Camera Connection technology. With support for Wi-Fi Protected Setup (WPS), easy hosted video connection and edge recording to a network attached storage device, Axis M1004-W is an ideal match for small retail, office and residential surveillance users searching for a simple-to-install, flexible and affordable indoor IP camera solution.

Support for WPS protocol simplifies the process of configuring logical security on wireless networks with a push-button for automatic WLAN pairing. This helps installers or integrators save installation time and easily set-up high network security in Wi-Fi areas, especially where it is not possible to install Ethernet cables.

AXIS M1004-W network camera also features support for AXis video hosting system with One-Click Camera Connection, making the cameras ideal for a hosted video solution. In addition, it includes an I/O port (one input, one output) for connecting devices such as sensors and external relays to activate lights or open/close doors upon video motion.

The camera will be supported by the industry's largest base of VMS through the Axis Application Development Partner Program as well as Axis Camera Station. AXxis M1004-W also includes support for Axis video hosting System with One-Click Camera Connection for communication with cloud-based video systems, ONVIF for easy system integration and AXIS Camera Application Platform for third-party application developers to create additional intelligent video capabilities.

Indian manufacturer assures safety and quality on IP platform

Editor / Provider: Verint Systems | Updated: 3/12/2013 | Article type: Commercial Markets

Sahajanand Medical Technologies, a manufacturer of minimally invasive coronary stent systems in India, recently deployed a Verint Systems IP video solution at its Surat manufacturing facility to help enhance the safety and security of its employees and overall operational efficiency. The system consists of VMS, VCA and video encoders, and helps Sahajanand adhere to compliance and quality standards.

To meet the manufacturer's stringent requirements, local integrator Innovative Telecom & Software (ITS) designed the system, sourced the technology, provided the integration, and is responsible for the postsale service and support. “We partnered with Verint based on its reputation, open and scalable solution architecture,” said Mihir Chahwala, MD for ITS. “Its solutions complement [our system] and business objectives, all without placing strain on existing resources.”

The video surveillance system enables Sahajanand to capture high-quality video images, leverage flexible video search capabilities, and benefit from programmable video retention and storage. In addition, it helps improve the management of captured data through monitoring, searching, protecting, securing, archiving and evidence authentication. The VMS performs in conjunction with networked storage to continuously record and archive video data for viewing incidents in real time from any location.

“The solution is a key part of our infrastructure, helping us execute against our security strategy to further advance safety and security across our facility, adhere to government regulations and evolve with changing operational requirements,” said Jayanti Vaghasia, Director of Sahajanand Group. Ady Meretz, President of APAC, Verint Enterprise Intelligence Solutions and Video and Situation Intelligence Solutions, also noted partnerships with companies like ITS can deliver comprehensive solutions to organizations like Sahajanand and help enhance security while mitigating risks.

Asia Update: LILIN revamps to embrace IP

Editor / Provider: LILIN | Updated: 3/11/2013 | Article type: Hot Topics

Merit LILIN, a company that is no stranger to the security industry, was established in 1980 in Taipei, Taiwan. Under the charismatic leadership of Cheng Chung Hsu, President of LILIN, it is one of the few dynamic Taiwanese companies that was able to confront and overcome the turbulent times associated with the economy. Today, it has successfully transformed and shifted its main strength from analog to IP video surveillance.

Hsu, the personification of honesty and determination, embodied his ideals into his company. Since LILIN cares a great deal about the quality of its products, its high manufacturing costs make it almost impossible for the company to accept orders for OEM/ODM. Hsu once joked that he had no other choice but to set up his own branches to sell his products. All humor aside, it is evident that LILIN is a company dedicated to upholding its ideals of product quality and company image. Over the past 30 years, though LILIN did not invest in flashy marketing hype, the company still earned a reputation for quality based on exceptional product performance.

Determination to Go IP
LILIN had originally focused mainly on hardware and analog video surveillance products, but the falling prices for analog products, along with the increase in competition from China, from 2006 to 2007, drove Hsu to redirect his focus to IP products. Slowly, Hsu led his company to embark on its journey of IP development. LILIN took four years to launch its IP line into the market. Underlying factors can be attributed to a number of reasons. IP requires vast software proficiency, but LILIN's strength had been in hardware. In comparison to analog, which required a team of no more than 10 to develop, IP needed a much larger team, including network communication and software specialists. To produce and manufacture IP products, LILIN sought experts in IP and software design.

After encountering a series of obstructions in its early stages of development, LILIN was able to overcome its obstacles and ensure the compatibillity of its products with third-party solutions. The company successfully launched its IP products in 2011. Currently, its products are fully compatible with the top 15 leading VMS brands.

LILIN's network cameras are aimed at the mid-to high-end market, and emphasize excellent quality and reliability, Hsu said. Taking into consideration its late entrance into the IP market, LILIN's prices are set to be more flexible, providing end users with more quality products at an affordable price.

Aside from network cameras, LILIN also developed back-end storage systems, such as NVRs, available in four, nine and 16 channels. LILIN launched the industry's first embedded stand-alone touch NVR that supports a multi-touch screen and records 16 channels in full 1,080p HD at up to 25 frames per second. This NVR is currently at the forefront of its kind, as NVRs of other brands can only record four channels in 1,080p or 12 channels in full D1. Hsu reasoned that if the NVR was stand-alone, it should not resemble traditional models with regular front panels. Thus LILIN incorporated touch-screen technologies into the device. When connected to LILIN's own network cameras, the NVR will automatically detect and connect to them, simplifying the setup process for end users.

The NVR touch is also supported by LILIN's own software, a VMS capable of face recognition, tamper detection, masking and other functions. LILIN had strict requirements for the VMS, since it plays a crucial role in an IP system. Not only does it have to possess smooth and reliable performance, it must not skip any frames, lag, or freeze. After all, each frame is critical in terms of video surveillance. As of now, LILIN's software is free for up to 36 channels, while registration is required for 72 channels and above.

Furthermore, LILIN wants to strengthen its solutions for vertical markets. The field of IP revolves highly around system integration, and that is something LILIN plans to concentrate on. It is focusing on the retail sector, which requires highly integrated solutions with POS, alarms and audio systems.

Reforms in Products, And New Organization for IP
Today, LILIN has successfully established 12 branch offices all over the world, including the U.S., the U.K., France, China, and even Germany and Australia. This is something rarely seen from companies founded in Taiwan.

In the five years since the company made the decision to go IP, about 70 percent of its foreign sales are from IP products and the remaining 30 percent come from analog. Each of the foreign branches is able to rapidly grasp the IP technology within a short period of time because each product manager must enroll in all the trainings. Strict implementations were set in place for new hires as well. Even new sales candidates must have prior knowledge of this technology or have previous experience in an IT-related environment. They must also be able to develop new clients, while they educate existing clients about the benefits of IP video. New employees with IT-related knowledge hired in foreign branch offices rose to 60 percent.

Staying Ahead
As for 2013, LILIN is more than ready to embrace this new year with a fresh start and leave 2012 behind. LILIN will begin a total restructuring of all of its offices worldwide. The company's regulations will also change accordingly to allow for further advancement. Not only will Hsu continue an internal review of all his branches, Hsu plans to have all marketing for its different branches centralized at its headquarter in Taiwan. As of right now, LILIN's US office assumes first priority since the U.S. makes up a larger part of the global market share. Hsu intends to increase the number of employees in his US branch and distribute the remaining employees evenly throughout his different branches. LILIN's Chinese branches assume the next priority of total restructuring, as the market potential is enormous and proper management must be put in place.

An industry veteran, LILIN humbly reforms its teams and products to accommodate the swift transformation to IP. The company is striding into the new world of IP with the same serious dedication it started with

Mobotix releases remote management app on iOS

Editor / Provider: Mobotix | Updated: 3/11/2013 | Article type: Security 50

The newly available Mobotix App is a mobile video management solution for Apple iPhone, iPad, iPad mini and iPod touch devices that improves everyday convenience and security. With this free-of-charge App, Mobotix users can access their video systems anytime from anywhere in the world and have mobile Internet access via WLAN (Wi-Fi) or UMTS/3G. Bandwidth-optimized remote access to live feeds and recordings, as well as an easy-to-use, easy-to-understand interface with a wide range of system functions make the Mobotix App an outstanding premium solution.

Thanks to the Mobotix decentralized system architecture for high-resolution IP video systems, data storage, alarms and recording take place directly inside the cameras. The networked cameras form a kind of data cloud that the App accesses to display the desired information in a user-friendly manner. This makes management and control of Mobotix cameras and the IP video door station easy and convenient. Thanks to the App's intuitive user interface, all cameras and recorded events can be viewed immediately at any time.

With the App, it is easy to establish an intercom connection with cameras that have microphones and loudspeakers. This works both for local networks and for remote access. The recordings from individual cameras and camera groups can be filtered by events or chronology, and played back via the integrated video player. If the Mobotix App is on the same local (WLAN) network as the video source, live feeds and recordings can normally be viewed in the App at full resolution. When the App is used on the road and the connection is too slow for high-resolution video, the requested live feeds and recordings can be compressed and scaled down inside the camera before being transmitted to the App.

The App automatically detects all cameras connected to the local network. Cameras that are outside of the local network can be connected via DynDNS. Once set up, the App remembers all the settings and automatically switches to the right configuration as soon as the iPhone/iPad joins a familiar WLAN network.

The App automatically provides mobile notifications when someone rings the doorbell, as well as offering options for two-way communication with the visitor and for remote door opening. Thanks to Mobotix hemispheric video technology, the entire entrance area of the IP Video Door Station can be viewed.

To avoid any unauthorized access to Mobotix video systems in the event of theft or loss, the device owner can set up a security PIN for accessing the App. Individual App functions can also be PIN-locked for persons that have access to the iOS device but should not have all user rights.

Australian mall security setup woos law enforcement

Editor / Provider: Merit LILIN | Updated: 3/11/2013 | Article type: Commercial Markets

LILIN Australia recently supplied an IP-based video solution to a shopping center in Perth, Australia. The system consists of 30 2- and 3-megapixel iMEGAPRO cameras, deployed to monitor the inside and outside of shopping and parking areas. This installation also included the use of LILIN's license-free CMX management software and high-end server to control the storage and overall system operation.

The customer was more than impressed by the project that they were already contemplating adding additional cameras and servers even before the final system was commissioned. What further impressed the customer was that during the installation, a purse-snatching incident was captured by the LILIN cameras. The reaction of the local police when they saw the video footage and the color print-out of the culprit was nothing short of “Wow!”

The featured image above was captured by LILIN's iMEGAPRO IPD2220ES4.3 2-MP HD IP mini dome.

Sponsored by:
LILIN, dedicated to innovation, creativity, progress and excellence, is a global developer and provider of IP video solutions with more than 30 years of experience.

Spanish university hospital combats theft with IP video

Editor / Provider: Axis Communications | Updated: 3/8/2013 | Article type: Commercial Markets

The Miguel Servet University Hospital that opened in 1955 in Spain installed a network video surveillance system to protect the 1,345-bed facility from theft. The hospital with 4,800 employees previously had no video surveillance system and had experienced a spate of property thefts, with one particular case amounting to the loss of more than US$7,800 (€6,000) in a month. After consulting hospital staff several times, Axis Communications' local partner and system integrator, DeInta, installed the system that comprises 18 IP cameras, video servers and encoders, and Milestone VMS.

DeInta chose the networked approach because of its flexibility and scalability, and implemented in several stages. Initially, network cameras were installed in the main corridors to monitor the hospital entry and exit points and were connected to the building's network. In the second stage, a dedicated VLAN was created within the main network. A storage server was then installed to store the video feeds sent by the cameras. Cameras installed in the project include 15 cameras streaming at 15 fps, two cameras with varifocal DC-iris lens for outdoor light conditions, and one with simultaneous M-JPEG and MPEG-4.

A similar system is also to be installed in all the new buildings being constructed on the hospital site and to extend existing infrastructure to additional, vulnerable floors and other critical areas. The system supports existing analog equipment and enables staff to remotely monitor the hospital, record and review images generated by sensors or alarm triggers, and receive e-mail or text alert notifications. Staff can monitor the system using mobile devices or PDAs.

“Since the video surveillance system was installed, the improvement has been absolute; from an average of one theft a week, we had none during the first five months the system was operating,” said José Ramón Vera, Security Section Manager of the hospital. “We also have peace of mind knowing that with the new digital video surveillance system, the new control center and the security staff, the hospital is being constantly monitored.”

UK bike 'garage' simplifies locker control

Editor / Provider: Salto Systems | Updated: 3/7/2013 | Article type: Residential & Consumer

H2 Bike Run, a gym and bike club with 400 bike-parking spaces for cyclists and runners commuting to work in London's SOHO area, recently had Salto Systems electronic locker locks installed on more than 1,400 lockers in the facility to provide members secure storage. Local partner Ansador Security Solutions installed the locks that can be fully integrated with the Salto access control solution or be operated as a stand-alone system, said Chris Saxby, Sales and Specification Manager.

"Part of the belief was that the lockers had to be flexible enough to allow for change of use patterns, allowing for permanent storage use or variable — maximum 2 hours — use,” Saxby continued. To achieve, this Ansador fitted the locks with nine electronic escutcheon handle sets for European mortise locks, which provided the benefits of full access rights programmable via software, and an automatic audit trail facility to record the last 1,000 events at each locker.

Most OEM lockers are supplied with very basic mechanical locks that offer little in the way of protection. Salto locks solve this problem by offering the latest technology in a simple form factor. “The battery pack, electronic components and locking mechanism are all located on the inside of the locker door, safe from potential vandalism or sabotage,” commented Rex Palmer, Area Sales Manager for Salto.

The access reader is built into the locking handle, and the ID carrier — be it key card, wristband, key fob or bracelet using i-Button, Mifare, Mifare plus, DESfire, DESfire EV1, Ultralight C, HID iClass, Legic, Picopass or SKIDATA protocol — is simply presented to the reader and the lock will grant or deny access. A family option is available for multiple ID carriers to operate a single locker if required. In addition, the ergonomically designed handle is easy to operate even with wet hands, and a durable wipe clean construction is highly resistant to chemicals, UV radiation, physical wear and tear, Palmer added.

H2 founder and owner Piers Slater is already looking at 10 more potential sites in London. With future expansion plans and a possible move to other cities, the flexible lock system can easily grow to meet new requirements from H2.

Manhattan luxury condo tackles unmanned access and key control

Editor / Provider: Morse Watchmans | Updated: 3/6/2013 | Article type: Residential & Consumer

Keeping residents and the facility safe and secure is a serious undertaking at the Promenade Condominium. For the past 17 years, management has relied on Morse Watchmans' key control and management systems to help achieve this goal.

Located on the Upper East Side of Manhattan, The Promenade Condominium is a residential high-rise luxury condominium with 191 units on 38 floors. It is distinguished by spectacular views and full amenities including a health club and pool. The building offers an outdoor jogging track and a fitness center, wrap-around roof terrace, conference room, party room, children's playroom, billiard room, bicycle and storage room and a garage – all with controlled access. Building management holds keys for these areas as well as keys for each unit and uses the Morse key control and management system to secure, control and track keys.

"Holding the keys in the KeyWatcher eliminates any issues of unmanaged access," said Dominick Camilleri, Resident Manager at The Promenade Condominium. "The system works very well and over the years we have never had a problem." The Promenade's original key system was recently updated with the newer Morse Electronic Key Cabinet system, along with the complementary key control software to enable improved tracking of key usage.

Similar in appearance to the original, the new Morse system offers several convenient features that make controlling keys for a large residential property easier and improve accounting and tracking. Built into a rugged steel cabinet with highly illuminated key slots, the improved design makes it easier to locate keys and maximize wall space. The illuminated two line by 16 character screen clearly displays messages and user prompts for a variety of different functions, including removal and replacement of keys. The cabinet is wired with a tamper-proof mechanism and alarms can be sent automatically via email to designated managers.

The Key-Pro software enables Camilleri to monitor activity from any desktop connected to the network. He can also trace key movements by time, date and user code. The automated record keeping software can also help to reduce the number of man hours spent searching for keys or following up on incidents.

Mobotix partners with wireless backhaul specialist Radwin

Editor / Provider: Mobotix | Updated: 3/6/2013 | Article type: Security 50

Mobotix announced that Radwin, a provider of advanced wireless broadband solutions, has joined the Mobotix Technology Partner Program. Participation in the partner program ensures seamless integration of Mobotix IP surveillance devices with Radwin's wireless solutions.

There is an ever-growing need for high-quality, wireless video surveillance to serve a variety of applications, including municipal surveillance, perimeter security, critical infrastructure protection and transportation security. Due to its unique decentralized concept, Mobotix cameras are uniquely positioned to perform well over wireless networks due to lower bandwidth requirements.

“Radwin's product portfolio offers the quality and performance necessary to support both fixed and mobile broadband wireless video transmission networks," said Mike Cook, GM at Radwin North America. “By partnering with Mobotix, VARs and joint end-customers benefit from carrier-grade wireless solutions together with top-notch surveillance cameras to address public safety agencies and private security companies' needs."

Mobotix pioneered the decentralized, edge-based approach to video surveillance. The intelligent Mobotix cameras incorporate a high-speed computer and internal MicroSD flash memory card to enable all recording and storage to occur within the camera, reducing the need for a separate server. All data is processed within the camera to lower network bandwidth, which maximizes the use of virtual PTZ, video analytics and 360-degree hemispheric technology with panoramic view.

"Radwin has a vast portfolio of wireless broadband technologies that deliver reliability, robustness and cost effectiveness while easing complex installations," said Steve Gorski, GM for Americas at Mobotix. "By working closely with Radwin, Mobotix can meet the needs of surveillance users and VARs that seek high-quality, cost-effective wireless solutions for remote and perimeter surveillance needs.”