Security Dealer & Integrator

AUG 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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46 Security Dealer & Integrator / www.SecurityInfoWatch.com August 2018 Manager for Cox Communications, said during the recent industry panel. "When you start to see all these new players come in, it brings more rec- ognition of our products to a broader base of people. When I started my company (Cutting Edge Solutions) back in 2007, I can't tell you how many blank stares I got when I told people about home automation – they had no clue what it was. Today, there are very few people who don't know what home automation or the connected home is about – it has brought a much broader group into this industry." "e threat is that they are coming in with a $10-a-month monitoring, but I do believe it is an opportunity, in that a lot of the products that they are offering allow us to go aer this 80 percent of the market that we have never been able to hit, like the renter market," says omas Nakatani, VP of IT in the Customer Monitoring Tech- nology department at ADT Security. "It is a huge opportunity for all of us, and we should be looking at it that way by trying to tie into this advertis- ing and buzz – but we have to look at the pricing very carefully and keep an eye on those margins." Another effect on the market dynamics is an expansion into the commercial security market by one- time pure-play residential companies, who may view the commercial seg- ment as a more stable business propo- sition. ADT has led the charge in this area, acquiring Acme Security Sys- tems, Aronson Security Group, Protec Inc., MSE Corporate Security and Gaston Security in the past 11 months. e company has also launched both commercial and residential cybersecu- rity services thanks to its acquisition of Datashield and a new partnership for phishing detection with Cofense. "On the commercial side, you are (earning) more installation revenue and selling more products," ADT CEO Tim Whall said on a recent earnings call (available at seekingalpha.com). "en we bring a different level of ser- vices and service capability." Adds Kessler: "It is no secret that ADT's management is moving toward commercial, where the value propo- sition to customers is very different… and where there is less risk that Ama- zon and Google can blur the trusted partner function." Professional Installation? For many observers, one of the barri- ers to Amazon taking over the secu- rity industry is its inability to offer anything more than a DIY installation product – a task from which many home security and automation users tend to shy away. Separate from the announced Ring Alarm system –which appears to be strictly DIY from an installation standpoint – Amazon in May rolled out five residential security packages providing varying layers of smart home and security technology. According to its webpage, "all pack- ages include installation, customiza- tion and training." It goes on to say that when an Amazon technician "arrives at your front door...they will listen to your needs and customize your smart home package." is opens a huge can of worms for Amazon while potentially creating the side-effect of significant secu- rity industry consolidation. "Ama- zon Home Services" offers consum- ers professional services such as TV wall-mounting, grill assembly, house cleaning, etc.; however, as most secu- rity industry professionals know, a technician cannot simply show up somewhere and install a security sys- tem. Individuals and companies need a license to do so, and those vary widely on a state-by-state basis. "Amazon is looking into installs and consultations in select areas, but as most of you who work in multiple states already know, that's not going Cover Story "Amazon Home Services" offers consumers professional installation services; however, for security installations, state-by-state licensing requirements may make providing those services difficult for Amazon in the short term. We need to figure out what our competitive advantage is, because the sky might actually be falling this time." – Chris Johnson, President, Direct to Consumer Division, Brinks Home Security Photo: Amazon.com

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