Security Dealer & Integrator

NOV 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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November 2018 www.SecurityInfoWatch.com / Security Dealer & Integrator 33 2018 STATE OF THE SECURITY INDUSTRY REPORT Access the full report online at www.securityinfowatch.com/12432021 Sponsored by HID Most impactful commercial business threats for 2018 Respondents were asked what they expect their most impactful commercial business threats in 2018 to be. They were asked to select their Top 3 threats. Here are their responses in order of priority. 1. The infl ux of lower-cost technology alternatives into the market, especially in the video space 58.7% 2. Outside players like Google, Apple and Microsoft entering the integrated systems space 38.1% Service companies that are offering bundled options that might include alarm systems & monitoring, hosted access control and video management 37.6% Your manufacturer or supplier merging or being acquired by another company 27.6% Economic downturn 22.8% Shifting of buying power to IT departments 22.3% Managed network suppliers offering VoIP or other IT infrastructure services 21.4% Competing with smaller local firms 14.7% Confusion related to new tax cuts and Jobs Act 3.8% Other 3.8% Commercial Integrators Worry About Cut-Rate Technology One issue that has stayed top of mind for integrators is concern with the influx of lower-cost technolog y alternatives flooding the security marketplace – especially in the video space. That figure ticked up just over a percent, but was more than 20% higher than the second leading response. Outside players like Google, Apple and Microsoft entering the integrated systems space (38.1%), which was up from third in 2017. The saturation of low-cost video camera systems, primarily from China, has integrators worried about margins and gross revenues. As one integrator said; " The most significant challenge we face is the continued commoditization of the security industry – the 'race to the bottom' as it relates to price. (Our company) has addressed this challenge by developing value-added services that ultimately create business outcomes for clients." Also a top three concern a year ago, integrators' fear of service companies like Verizon, Comcast and others that are offering bundled options that include alarm systems, monitoring, along with hosted service in access control and video management would impact them. Close to 38% of respondents expressed fears of these non-traditional competitors. When it comes to real outsiders, almost 37% of responding integrators see the ultimate outsiders like Google, Microsoft and Apple as potential threats if they make their way into this space. "The most signifi cant challenge we face is the continued commoditization of the security industry – the 'race to the bottom' as it relates to price. Convergint has addressed this challenge by developing value-added services that ultimately create business outcomes for clients." – Tony Varco, Vice President, Security, Convergint Technologies

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