Solution Requirements
While IP is gaining a lot of attention, analog is not “dying” anytime soon, Rosa said. “In terms of sales, analog and IP are about 70 versus 30; we are still seeing good growth on analog products. For bigger projects that require more than 100 cameras, IP gets specified, but it still depends on project type and available infrastructure.”
For existing establishments that require replacements or upgrades, local consultants and end users prefer devices or systems with hybrid capabilities that allow existing analog infrastructure to transmit signals over IP networks. “It is a strong selling bonus,” Charles said. “We tripled our sales in the first quarter over the same period last year, and we continue to work with more IT-level system integrators to service the entire spectrum of the market.”
To Borg, Australia is indeed in dire need of better IT and IP infrastructure. “While the economics around the NBN don't make much sense, we can definitely use newer, more reliable networks.” Analog technology is still robust, though. “A lot of system integrators, consultants and real-estate developers still ask for analog products, so we are still seeing singledigit growth; overall, sales figures split between analog and IP at 50/50.”
Started as an IT specialist 18 years ago, Lan 1 provides advice and support on network infrastructure. “Australia is a tech-savvy country, and growth in IP has accelerated for the last two to three years. With dollar appreciation and a number of budget offerings, users are enjoying 20- to 30-percent discounts (if not more), getting the biggest bang for their dollar,” Delimitros said. And more training is available today, further lowering t h e market's entry barrier.
For EOS Australia, the smartphone market is a good indicator. “We were a late adopter of smart cellphones, but look where we are today,” said Jeff Perrey, National Sales Manager. “The same goes for IP-based security systems; we are now seeing more organizations running multiple networks in parallel to support bandwidth requirements. The market is about solutions, not single products; Australians will use it if it is a robust, easy and open solution. It is a growth market beyond what people realize.”
Channel Challenges
With greater IP capabilities come both opportunities and challenges. While easier access and mobility are granted, the initial installation, integration and configuration can be very complicated, at least for the traditionally analog channel community in security. “Education is critical,” Rosa said. “It's our job to help the marketplace understand how to better leverage added benefits from IP-based systems. Product features and system limitations should also be made clearer.”
Keeping up with market growth and momentum is also a concern for Lan 1. For example, a number of Tier-1 suppliers are reevaluating and looking for more IT/IP-savvy distribution, installation and integration partners. “Aside from infrastructure shortcomings, we also need to think about our location. We live in isolation here, and not all manufacturers have local representation and support. So, we take device and system reliability very seriously, and we need more partners to help deliver that consistently,” Delimitros said. 
Altech Computers, an IT distributor carrying brands such as Vivotek and GeoVision, has had similar observations. “The market has turned 180 in one to two years,” said Adam Storo, Surveillance Manager. “We need to keep up with different demands and requirements from various verticals, such as government, transportation, education, residential and SMBs. Having an IT background is, therefore, a massive advantage. With technology rapidly changing, it does take delivering functional hardware, software, solutions and services to a whole new level.” And “converting” integrators and installers and making them grow with you are no small feat.
Another IT distributor, ACA Pacific, deems end users having fully functional IP networks as the biggest challenge. “It's a slow process, as is training,” said Henry Patishman, Sales Manager. “On top of that, everyone wants control within an organization.” As a result, channel partners have to take it upon themselves to demonstrate to their end users that having open APIs and interfaces does not mean giving up departmental turf.
The IT cusp and bubble a decade ago could serve as a good reminder and lesson. “Support, beyond warranties, is critical. When faced with market pressure and ‘leveling' of real value and prices, we need to think about real-life implementations and implications,” Perrey said. “Our biggest challenge is having futureproofed solutions and partners.”