The physical security industry is undergoing a profound transformation after decades of incremental improvements in camera resolution, compression and low-light performance.
For decades, physical security for businesses was largely defined by hardware—analog cameras, digital video recorders (DVRs), and incremental improvements in resolution, compression, and low-light performance. Innovation moved gradually and was siloed across distinct subsystems such as video surveillance, access control, communications, and intrusion detection. But the industry is now in the midst of a far more profound transformation.
Over the past five years, several concurrent technological shifts have fundamentally changed how security solutions are deployed and used within the modern enterprise. The transition from analog to Internet Protocol (IP) video may have marked the beginning, but the next wave—driven by cloud, artificial intelligence (AI), and data convergence—is reshaping the industry's foundation.
Shift #1: From on-premises to cloud-native
The first and most visible transformation is the widespread adoption of the cloud. Just as enterprises have moved their core applications—customer relationship management (CRM) tools, enterprise resource planning (ERP) software, communications, and analytics—to cloud platforms, they are now demanding the same from their physical security systems. The exponential growth of data centers globally stands as a testament to this shift.
Cloud architecture delivers more than scalability and uptime—it provides centralized management, easier updates, remote accessibility, and significantly enhanced resilience. Security is no longer tied to a physical server room; it lives in the same digital fabric as the rest of the enterprise.
Shift #2: From intelligent automation to artificial intelligence
The industry has long used basic forms of intelligent automation—motion detection, line crossing, or object classification. But today, AI is redefining the very outcome of what security systems can deliver. At the heart of this transformation are vision language models (VLMs) —advanced AI systems that can interpret video footage through natural language. Deployed across hybrid cloud architectures, VLMs empower users to run forensic and real-time investigations using freeform queries like "person in a red jacket near the loading dock yesterday."
These models scan millions of video frames to identify visual matches and deliver actionable insights in seconds.
When integrated with access control logs, building telemetry, and other systems, VLMs enable a unified situational awareness layer – transforming security from a reactive measure into a proactive source of business intelligence.
Shift #3: The democratization of security
The sheer number and variety of devices—cameras, sensors, alarms, and readers—have made traditional system management costly and complex. Modern enterprises no longer tolerate siloed, high-maintenance infrastructure. They demand simplicity, scalability, and insights at the edge.
This demand is driving what I call the “democratization of security,” making intelligent, enterprise-grade security accessible and manageable across departments and geographies. It’s not just about better tools—it’s about empowering every stakeholder, from security operators to IT administrators, and employees, with real-time visibility and control.
Shift #4: From cost center to value creator
With this democratization comes an inflection point: the integration of physical security with broader enterprise IT systems. When security data feeds into operational dashboards, HR systems, point of sales platforms or workplace analytics, it becomes a business asset—not just a safeguard.
As a result, security transitions from a pure cost center to a strategic function that can reduce costs, optimize workflows, and in some cases, even drive new revenue streams. Think of examples like integrating with POS platforms to detect fraud, using occupancy trends to optimize building management systems, or combining video data with CRM logs to analyze visitor engagement and space utilization.
A call for responsible innovation
Of course, with great capability comes great responsibility. The ability to analyze and match individuals or vehicles with high accuracy using AI raises critical issues of privacy and ethical governance. To safeguard trust, the industry must establish structured controls—access management, audit trails, query moderation, and transparent data policies. Responsible use is not optional—it is foundational.
What this means for partners
For integrators, this transformation presents a powerful opportunity. As security shifts from standalone systems to intelligent, cloud-connected platforms, those who evolve from installers to trusted advisors will unlock long-term value. The winners will be those who build deep customer relationships, deliver integrated outcomes, and guide clients through digital transformation.
Manufacturers with a strong focus on enablement, education, and scalable platforms are empowering partners to succeed in this new era. Through advanced training, certifications, and support for advanced services, the right partners can grow beyond the traditional project model and tap into recurring revenue streams.
By aligning with vendors who prioritize long-term customer success and reward loyalty, integrators can scale their impact—delivering not just systems, but business outcomes, and being recognized for the trust and value they bring to every engagement.
The winners in this next chapter of physical security will be those who embrace the transformations in the industry including cloud-native and AI-powered solutions. And those who champion ethical innovation and simplicity. Because the future of security is not only about who builds the best camera—it’s about who turns complexity into clarity, and risk into insight.
Boudewijn Pesch is Verkada's Vice President of Japan and Asia-Pacific Channel Sales.
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