The financial downturn tightened lending in many industries, introducing changes to channel dynamics. A&S talks to security solution providers on how they have adapted to market conditions with options like leasing to help customers.
The financial downturn tightened lending in many industries, introducing changes to channel dynamics. a&s talks to security solution providers on how they have adapted to market conditions with options like leasing to help customers.
The cliché "When life gives you lemons, make lemonade" is about making the most of a tough situation. The economic meltdown was a bitter pill for many to swallow, even in security, as projects slowed and credit became tight.
Unfit or unscrupulous players were eliminated in lean times, while increased consolidation took place among the surviving companies. In April, investors Generation3 Capital and Waveland Investments acquired a controlling stake in wireless mesh provider Fluidmesh. It joins Avrio RMS Group — a specialist in IP surveillance solution for public safety — to form Carrick Bend. This combination of equipment and service offers greater value, as well as maximizing resources for clients with tighter budgets.
Other notable acquisitions included purchases in PSIM. ADT Security Services acquired Proximex and Verint
 |
| ▲ Mark Harraway, UK Country Manager for Controlware |
Systems bought Rontal Engineering Applications, both completing portfolio gaps in management software. PSIM unites disparate systems to work together as one, delivering enhanced efficiency and performance to users short on time and funds. Retail solutions provider Agilence made a similar boost to its solution lineup by acquiring Vidient's video analytics. Greater consolidation demonstrates how poolingresources can result in more targeted offerings that deliver added value to more discriminating customers.
Because of the lean times, manufacturers are supporting their integrators with special financing programs. Video solution provider Infinova and VMS provider On-Net Surveillance Systems (OnSSI) are among the vendors who extend financing options, such as special lines of credit.
The Internet is also leveling the playing field from the traditional security channel. Equipment prices are easily found online, making price-conscious buyers challenge integrators on why they charge more than the lowest deal, said Mark Harraway, UK Country Manager for Controlware. "If you do a system design, you have to justify camera selection more or the amount of professional services," he said. "People will ask if they need a high-end PTZ camera and if they can instead opt for a couple of static cameras."
Other users simply build their own DIY solutions by ordering from the Internet. "If someone's looking for additions to an existing system, they'll do a pricing exercise from the Internet," Harraway said. "You have to justify your pricing or value-add more."
More flexible payment options are also changing how business is done. "The recession has changed how we interact with customers," said Lance Holloway, Director of Technology Strategy, Stanley Convergent Security Solutions. "We have solutions move forward through our leasing program rather than paying everything upfront."