IP Fallout
IP offers tremendous benefits, but presents a high technology threshold to cross over. “The market is highly fragmented,” Holtenhoff said. “As the world moves to IT-fication, we're going to see shakeout.”
Scaling the IP learning curve can be lucrative but difficult. “Since the cost of entry to IP-based security is higher than it used to be with analog, there will be fewer players in the future as IP technology becomes more advanced,” Clocher said. “Only a few companies will be able to master this technology to the degree needed in the video security space.”
However, a steep learning curve for IP does not mean the security industry will wind up in the hands of a single company. "Our industry is specialist," said Charlie LeBlanc, President of Security Services for FrontierMEDEX, a US consultant.
"For a large company, it consolidates all that and reduces the ‘speciality' for efficiency. It's hard under one umbrella to be efficient and active with the client base."
More Than You Bargained For
The migration from analog to IP means security is no longer an isolated system but a business enabler. “What we learned in the past few years is people understand the value of IP-based solutions,” said Bill Stuntz, VP and GM of the Physical Security Business Unit for Cisco Systems. “You get information on the basic situation and better communication for first responders.”
As security goes IP, network administrators deal with more security management, introducing a new dynamic involving more stakeholders. “Over the next five years, the convergence of security and business operations management will in crease several-fold,” Koh said. “Business cost is increasing globally, and well -managed companies are on a constant lookout to improve processes.” The security platform, with a renewed focus on understanding more diverse customer needs and solving their business problems, will be key to achieving this.
More companies now extend the value of their offerings by addressing business efficiencies, not just security needs. When solutions not only improve security but also enhance the bottom line or business processes with concrete metrics, security proves itself to be a smart investment. The IP world operates on a larger scale, requiring a better handle on a wider range of organizational needs and “turf war.” “IP has greater benefits for multiple sites,” Stuntz said. “Those small sites will hold onto DVRs and stand-alone systems longer than large customers. The opportunity for growth is on the IT side.”
IP offers the ability to specialize through more data, for better management and know-how. “IP and integration have been around for a long time now, often used but never completely understood or embraced,” Hussain said. “Fortunately, time and money have been invested in creating systems that take the complexity out of integrations, allowing physical security information to be aggregated and managed. We see huge growth here in the next few years as organizations look to harness the power of these systems.”
Smarter integration promises to make security better. “The first set of the value proposition delivered to the customer is more effective security systems,” Stuntz said. “We can be tying the security systems into operations in a store. The same cameras used to protect the store at night could look at traffic or shoplifting patterns in the day. Customers can get multiple uses of the cameras, spread costs throughout department sand accelerate deployment.”
IP goes beyond securing an enterprise, producing a result that was not previously possible. “The same hardware, software and databases that comprise an access control system can be used in a manufacturing setting, for example, to integrate with plant automation systems in order to ensure that the right number of qualified personnel is logged in at assembly workstations,” McCaughey said. “IP makes this integration possible, achieving a new result that impacts the customer's bottom line.” Such business-security integration requires understanding customer operations and business requirements deeply.
Take retail. Management may be interested in understanding customer and employee behavior, or improving operational efficiency. “The key is minimizing the time and equipment on-site, while making it easy for a broader range of users to access the information they need on a range of devices — Web, mobile and so on — in a range of formats,” Brown said.
IP demand will grow in both the public and private sectors. “We see a decent shift from analog to IP-based security, and that's because, as SMBs and enterprises grow particularly in emerging markets, they realize the advantage of having safety and security based on IP as opposed to analog,” Kan said. “Governments are taking stringent measures to enhance security infrastructure. Additionally, large enterprises, transportation and educational institutions are investing in securing their premises from external threats.”