Clear Channels
A brand sinks or swims depending on the manufacturer's choice of channel partners. The right partner finds quality customers and provides technical support to them, offering manufacturers and buyers a win-win proposition. However, not all partners have the knowledge or skill set to support network solutions, resulting in dissatisfaction and relatively low-margin business.
The traditional security channel has shown ambivalence about IP, but is picking up network know-how fast. “How we approach the market can be divided into three ways: electronics channel distribution (with the new budget product line), traditional value-added security resellers, and engineered solutions and software (closely with system integrators),” said Gert van Iperen, Chairman and President, Bosch Security Systems. “Given our comprehensive portfolio, our networks are not yet fully integrated at the moment, but training and certifying our partners will continue to be an ongoing process.”
Simplifying installation eases the learning curve for distribution partners. “We're primarily selling through the traditional channel,” Fernandes said. “They can just take out the camera from the box and turn it on. That's it.”
Training and education are continued efforts for security and IT channels. “It is clear to see that distributor businesses are changing, with traditional security distributors taking on network equipment product lines and hiring in expertise in this area,” Smith said. “Likewise, traditional network distributors are taking in security product lines and expertise.”
Social Media
The reach and immediacy of social media have made it indispensable for communication. More providers train channel partners through webinars. Users and integrators can get answers through Web calls, instant messages and even Facebook posts. “We see huge potential for use of social media for certain applications,” Edgecombe said. “You are able to identify your audience more easily than in traditional media.”
While it is hard to beat the trade show experience, microblogging through Twitter offers rapid online interaction. Some countries block social media, requiring familiarity with local equivalents, such as China's Sina Weibo tweets. “We are able to receive instant feedback that allows HID not only to better partner with customers and provide them with products and solutions that meet their specific requirements, but also enhance the customers and technical support they need to do business and perform at the highest levels,” said Simon Siew, MD for APAC, HID Global (an Assa Abloy company).
Blogs are common, but falling out of favor. Most ineffectively post self-promoting content, such as product releases or show announcements, defeating the purpose of dialogue. Instead of blogging, Digifort opts for direct online contact. “We choose and operate an online forum to communicate with developers and users, on top of webinars and periodic newsletters,” Bonilha said.
Services
Security procurement has long been an upfront cost, but new business models will require users to rethink this approach. Norbain introduced technical support fees in September 2011, as its diverse portfolio needs additional resources. “Companies need to create valueadded service,” Shakespeare said. “The single-digit margin in IT is bolstered by richer margins from value-added services with margin, such as training. In the IT space, people are very prepared to pay. In security, they expect a high product margin, but they don't expect to pay for service.”
Hosted Video and Access Control
Value-added service will be essential for survival in 2012, particularly in challenging financial and economic conditions.
Cloud deployments have taken place but have yet to gain widespread adoption in 2011. “IMS Research believes that while VSaaS will likely suffer from some growing pains due to up-link speeds and ‘the last mile,' the world market for VSaaS solutions is forecast to continue to grow strongly, by more than 18 percent year-on-year toward 2020,” Wong said.
Privacy concerns have limited current hosted services to private cloud offerings. MVaaS has not taken off though there's a lot of “fuss,” Mauritsson said. “It is a great opportunity for our market, and for system integrators to provide for customers and generate recurring revenue.”
Enterprise cloud deployments provide benefits such as scalability and low start-up costs, Srimoolanthan said.
However, questions remain about where information is stored, making hosted video unthinkable for a sensitive government application. Hosted video may be limited to smaller deployments such as homes and small shops, Bonilha said.
The kinks are being worked out, but the technology to deliver hosted video is already in place. “Improved IT, networking and unified communications will allow Xtralis to better integrate its fire and security solutions into seamless, comprehensive threat detection systems,” Loy said. Its remote monitoring app lets users view multiple sites at high refresh rates. “Mobility extends the reach and improves the reaction to security threats.”
Access control is closely tied to business systems, making a good fit for physical-logical hosted services. “IMS Research believes that SaaS for access control has potential to be used extensively, but this has not yet come to pass,” Wong said.
Service is differentiating players, particularly with data. An intrusion solution provider branched out with a home-monitoring pilot in Europe that successfully became a long-term offering. “Although the economic situation in Europe is complicated, we believe that providing a cost-effective solution with added values such as self-monitoring and smartphone apps will help our partners increase their market share,” said Max Gadot, Marketing Manager at Risco Group. “We plan to roll out our self-monitoring service in other regions as well.”