Integrators should note that a manufacturer's support with system design might be limited to its own products and misses components like servers, switching or integration with legacy equipment, Harraway cautioned.
To survive in this multifaceted industry, learning the IP language would allow SIs and installers to earn more project opportunities. “It's difficult to provide numbers, but we noticed that different types of engineers are coming through which allows traditional installers to bid on more and more IP-based projects,” Harraway said. “This in turn opens up more business opportunities to traditional SIs and installers in various areas and verticals.”
“Many traditional SIs and installers are already adopting the IP technology, but there are some markets which are critical and do not wish to gamble with the IP technology, and therefore stick to analog,” Wong said. The majority of projects are analog, with many system migrations that will give installers with IP know-how an edge, Wong added.
Even in the U.K., where analog dominates, IP-based solutions are gaining ground. “Within the UK customer base, we confidently expect to see revenue growth in excess of 50 percent fueled by increasing interest in IP-based solutions from the traditional analog installer market, and by new entrants to the installation market with proven IP integration skills,” Harmer said. “Overall, growth opportunities may be limited due to reducing numbers of new-build projects and cutbacks in publicsector spending; however, as a whole, the market prospects for those that embrace the IP opportunity remain very strong for the foreseeable future.”
It is expected that growth in IP will persist throughout 2011, but it is difficult to project an exact figure due to challenging economic conditions in different regions, Harraway said. “Not only do we see a migration of analog security to IP, but the same shift is witnessed in projects around process control and health and safety compliance — IP fits these types of installations due to its flexibility and reduced TCO, easy installation and integration and even more redundancy options.”
To keep up with the evolving industry, traditional SIs and installers need to consider how necessary it is to start picking up the IP language.