Hanwha Techwin
drops Samsung brand
name on new cameras.
www.securityinfowatch.
com/12297258
Paladin Security merges
with Marcomm Systems and
CONTAVA to create the largest
integrator in Canada; then in March
expands into the U.S. by acquir-
ing Criterion Security to form a
security super-company,
PalAmerican Security.
www.securityinfowatch.
com/12304599
www.securityinfowatch.
com/12320024
Alarm.com settles anti-trust lawsuit
with Honeywell and completes its acquisi-
tion of Icontrol's Connect and Piper businesses;
then acquires remaining assets of ObjectVideo.
www.securityinfowatch.com/12314148
www.securityinfowatch.com/12317891
Tyco Security Products
brand name dropped to
become Johnson Controls
Security Products.
www.securityinfowatch.
com/12338391
ADT settles
huge class action
cybersecurity
lawsuit.
www.
securityinfowatch.
com/12335708
Bosch's partnership
with Sony gains antitrust
approval; Sony cameras
appear in Bosch booth at
ISC West.
www.securityinfowatch.
com/12312872
www.securityinfowatch.
com/12325149
Convergint Technologies makes its first
of seven integrator acquisitions in 2017:
Post Browning (Feb.), Operational Security Systems
(May), Integrated Security Systems (June),
SigNet Technologies (July), Integrated Security
Systems Division of SDI Presence (Sept.),
Security Products Company (Nov.),
Genesis Security Systems (Dec.).
January
February
March
March
June
May
February
36 Security Dealer & Integrator / www.SecurityInfoWatch.com January 2018
Challenges Ahead
Although the market holds much
potential, there are still plenty of
challenges facing integrators in 2018
and beyond.
e race to the bottom: Integrators
by and large recognize the fact that
product commoditization is a real-
ity that must be confronted moving
forward – as the "race to the bottom"
consumes the video surveillance
market in particular.
"ere is no question that there will
be a continued commoditization of
components, such as cameras," Varco
says. "Convergint has been fortu-
nate to be able to counteract product
margin erosion with a service-cen-
tric approach. e industry, and in
particular integrators, need to strive
for equilibrium between installation
and service work by focusing on and
developing higher-level advanced
and professional services to mitigate
the erosion."
In an effort to combat margin ero-
sion, Matthew Ladd, President of e
Protection Bureau, says his firm has
chosen to partner with surveillance
vendors that seek to differentiate their
products through enhanced features
and streamlined integration rather
than on price.
Boethel has positioned Securadyne
as an integrator that can demonstrate
value beyond product features and
functionality in order to mitigate this
trend. "Commoditization of security
products is real and it continues to
create margin pressure in our industry
for both the OEMs and their chan-
nel partners," Boethel says. "However,
many integrators have done a good
job of finding ways of preserving their
gross margins by carefully select-
ing value-oriented customers and by
demonstrating value in ways other
than simply reselling product."
Other integrators say they have felt
little impact from the so-called price
wars. "I agree that the video surveil-
lance market has been flooded with
more installation companies trying to
undercut the competition; however,
we have been able to maintain our vid-
eo-based sales numbers," Zucker says.
"We can offset competitors who try
to manipulate the pricing of potential
projects via our sales process, educa-
tion of proper installation, and most
importantly, our reputation of superior
work in the field."
According to Philippou, video sur-
veillance manufacturers are doing sev-
eral things to offset the falling prices
of cameras. One tactic is product
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