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Catching up with Tri-Ed after Anixter integration Pat Comunale on the company post-acquisition p. 8

Integrator Roundtable: What customers want

Five firms share their thoughts on how the end users’ needs are changing p. 16

Q&A with Avigilon’s founder and CEO

Alexander Fernandes discusses acquisitions and the future of analytics in security p. 26

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Contents April 2015

www.sptnews.ca www.sptnews.ca epartments

over Story

4 Editor’s Letter

20 Money from the masses

6 Line Card • 3xLOGIC buys access control solution • Pivot3 puts technology front and centre • Eaton appoints new national sales manager • What Tri-Ed looks like postacquisition

rowd- unding can make the world o di erence to start-ups with dreams o marketing a success ul security product

By Linda Johnson

26 Q&A Alexander Fernandes, CEO, Avigilon

olumns

eatures

15 Lessons Learned

The special value attached to RMR

16 Integrator Roundtable 2015

By Victor Harding

AS A

ive anadian integrators share their thoughts on how the market is changing and what today s end users are looking or rom their providers

Network security appliance

Talkaphone’s compact video door entry station features a new design and IP66 weather rating for tough environments

www.sptnews.ca

Editor Neil Sutton provides some behindthe-scenes insight into news and features going into each new issue of SP&T News

Looking for the latest IP camera? What about a new managed access control system?

www.sptnews.ca/videos

@ www.twitter.com/SecurityEd

Integrator Roundtable: Growth of IP

SP&T News: Issue Insight

ind these products and more at our online buyer s guide www.securitypages.ca

Extending Ethernet for IP cameras

By Colin Bodbyl

Video door entry station

visit us online

15 Camera Corner

SP&T News asks integrators to offer insight on new security technology and how end users perceive it both in the home and the office

www.sptnews.ca/videos @SecurityEd • ovember ecember 201

EDITOR’S LETTER

By Neil Sutton

Engaging conversation

Your Partner in Securing Canada

Why the Integrator Roundtable continues to be an annual event

’ve heard from some people who work in the security industry that they will only attend some of the major trade shows every other year, or sometimes more infrequently than that. It could be cost considerations — travel can be expensive — or time away from the office that affects that decision. But the most common reason I hear is that technology doesn’t change that much year to year. I think there is an element of truth to that. If you visit a vendor’s booth one year, chances are, they won’t have something radically different to show you the next. But we publish this magazine eight times a year, and post daily updates to our website because, taken as a whole, the industry is moving quite quickly. In some cases, it may not be the technology that’s changing, but the manner in which it’s deployed. To a large degree, the end user sets that agenda. Quite recently, one of the speakers at our Focus On School (K-12) Security event, hosted by sister publication Canadian Security, espoused that philosophy. “You should drive technology, and not let technology drive you,” said Larry Johnson, president of the National Association of School Safety and Law Enforcement Officials. He also urged the end users in the audience, mostly from Ontario school boards, to work closely with security vendors in order to achieve their desired outcomes in terms of equipment on site. The end user is generally more knowledgeable than they might have been a decade ago, in large part due to the vast quantity of information that is available online. They may also be under increasing budget pressure, so they need to know

that what they’re getting is going not only produce the desired result, but work reliably over a longer period of time. Perhaps the biggest change is the degree to which security technology development is beginning to mirror that of the consumer world. More people have smart devices now than ever before. Most of these devices are capable of streaming their favourite TV shows as well as view an IP camera feed through an app that may have been supplied by a manufacturer. For these reasons and many more, SP&T News’ Integrator Roundtable has become an annual event. End user knowledge, mobile solutions and the continued proliferation of IP-based security equipment were front and centre in the discussion. These are important trends, worthy of scrutiny, and I think we’d miss something if we skipped a year. Moreover, the world looks quite different now than it did a year ago. The roundtable discussion I had with the five integrators who graciously gave their time eventually addressed the changing global tide in terms of terrorist threats — those real, perceived and possible. The events that transpired in Ottawa and Quebec last October, where two Canadian soldiers lost their lives as a result of terrorist attacks, have irrevocably changed perceptions of security in Canada, as have the other terror incidents that have occurred around the world since then. I think the full weight of how these incidents will affect the security community has yet to by fully appreciated, and it’s important we keep the discussion going. Talking to integrators is a great way to do that.

“Taken as a whole, the industry is moving quite quickly.”

INTEGRATOR

Online Editor, Rob Colman rcolman@annexweb.com Art Director, Graham Jeffrey gjeffrey@annexweb.com Account Coordinator,Trish Ramsay tramsay@annexweb.com Director of Soul/COO, Sue Fredericks

EDITORIAL ADVISORY BOARD Carlo Di Leo, Double Vision Group Colin Doe, Veridin Systems Canada Anna Duplicki, Lanvac Travis Firth, Tyco Security Products Mike Jagger, Provident Security Carl Jorgensen, Titan Products Group Bob Moore, Axis Communications Tom Richards, Lionsafe Security Paul Swan, Tri-Ed Distribution Josh Weidman, Medeco

Printed in Canada ISSN 1482-3217

Supporting Innovation

CIRCULATION e-mail: lthomson@annexweb.com Tel: 866-790-6070 ext. 201 • Fax: 877-624-1940 Mail: P.O. Box 530, Simcoe ON N3Y 4N5 SUBSCRIPTION RATES: Canada: $40 + hst/yr, USA: $60/yr and International: $75.00/yr Published 8 times a year Occasionally, SP&T News will mail information on behalf of industry-related groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above.

Help us recognize excellence in security integration in Canada and nominate a project today.

SP&T News • www.sptnews.ca

Editor, Neil Sutton nsutton@annexweb.com

PUBLICATION MAIL AGREEMENT #40065710 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO CIRCULATION DEPT. P.O. Box 530, Simcoe ON N3Y 4N5 e-mail – lthomson@annexweb.com

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Submission Deadline: July 3, 2015

Group Publisher, Paul Grossinger pgrossinger@annexweb.com

@SecurityEd

2015

See www.sptnews.ca for more details or contact Neil Sutton at nsutton@annexweb.com

Security Products & Technology News is published 8 times in 2015 by Annex Business Media. Its primary purpose is to serve as an information resource to installers, resellers and integrators working within the security and/or related industries. Editorial information is reported in a concise, accurate and unbiased manner on security products, systems and services, as well as on product areas related to the security industry. Feature articles and all other types of newsworthy submissions should be forwarded to the Editor for consideration via mail, e-mail or fax (all listed below). These should be written to reflect the interests of professionals serving the Canadian protection industry.

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Annex Publishing & Printing Inc. disclaims any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect of the results of any action taken or not taken in reliance upon information in this publication.

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3xLOGIC buys access control solution intelligence information, according to company CEO Matthew Kushner. A little more than a year ago, the comestminster, Colo.-based pany “mapped out what our business 3xLOGIC has acquired ambitions are in this market: to build the access control product a fully Cloud-based integrated securilines of infinias in order to round out ty solution. The missing its Cloud-based security piece in our portfolio was solution. access control,” he says. The deal closed on After surveying the Feb. 27 and all major market, the company moves, including personidentified infinias as an nel, were completed by acquisition target and March 2, according to approached Observint 3xLOGIC. Wayne Jared, Technologies, owned by president of infinias, joins Carlyle Group, to arrange 3xLOGIC as vice-presa sale. ident of engineering Observint bought and the company’s total Matthew Kushner, 3xLOGIC infinias in September headcount is now 120. 2012 and says it has doubled the busiFinancial terms of the deal were not ness since then. “After almost seven disclosed. months of discussions, they agreed to 3xLOGIC’s focus is using intellicarve out infinias from the Observint gent video systems to drive business

y eil Sutton

group,” says Kushner. In future, 3xLOGIC will be able to offer its own VIGIL branded solutions integrated with the infinias product line either as an on-premise server-based integration or as a Cloud-based solution. “What really got us attracted to the infinias product was the investment the Carlyle Group made into their Cloud-based initiative,” says Kushner. “Infinias has their own Cloud-based infrastructure that mimics what we have built — the same fundamental Cloud-based architecture approach but on an access control discipline versus a video discipline. We will blend these two products together.” Kushner says 3xLOGIC will maintain the infinias branding, which he says is strong in several vertical markets including K-12 education and

Pivot3 puts technology front and centre y eil Sutton

ivot3’s CEO Ron Nash says the company is updating the way it sells solutions, highlighting a greater number of technical aspects. “When we were in video surveillance [engagements], we never talked about the technology because for the most part, the buyers in the security industry are business buyers, they’re not technology buyers,” says Nash. The Austin, Tex.-based company specializes in storage infrastructure appliances and while security is a key market, it discovered new opportunities in other markets that valued robust architecture. As such, Pivot3, founded in 2007, was able to move into selling back-up and recovery solutions and virtual desktop products, but it still shied away from a more technical sales pitch. “We just kind of hid the technology. Talking about the technology did nothing for our sales process, so we just didn’t talk about it,” says Nash. “We just talked about things in the language of security and surveillance, but underneath it was very

SP&T News • www.sptnews.ca

Part of that marketing push will sophisticated technology. [When] we involve a more technology-focused went into virtual desktop, we folsales strategy to appeal to a broad set lowed the same script.” of customers. “What you’re seeing is Nash says that a number of comus starting to come out of the closet petitors were beginning to create with our marketing approach and be more sales opportunities through more technically orientdata centre clients by ed,” says Nash. providing greater detail But that doesn’t on how their products mean the company is work. That prompted abandoning its busiPivot3 to re-evaluate its ness-based approach sales approach. entirely. For users who There is also a groware more interested in ing level of technical the solution and the sophistication amongst problems it can address the user base, he says, rather than the underlyand the company is ing architecture, Pivot3 dealing with more IT Ron Nash, Pivot3 will still be able to prodepartments as well as vide that level of expertise. “I don’t IT resellers and integrators than it want to scare people off by being did in the past. too geeky about the whole thing,” Pivot3 recently announced says Nash. US$45 million in financing. A new The company’s future growth investor for Pivot3 is Argonaut will also hinge on its ability to generPrivate Equity and the company’s ate a greater number of channel partmanaging director Steve Mitchell ners, he adds; Pivot3’s products are has joined Pivot3’s board of directors. currently available through a variety The bulk of that new investment will of partners, including distributors, go towards marketing efforts, says integrators and resellers (both secuNash, with a smaller amount devoted rity and IT). to continuing product development.

multi-tenant environments, the hallmark of which is “one or two doors of access control, one or two cameras, but thousands of locations,” he says. “They are exceptional at that, and they will pull 3xLOGIC through that market.” 3xLOGIC will also leverage infinias’ existing channel partnerships. The company’s go-to-market strategy emphasizes a hybrid approach, selling direct to dealers, but also going through major distributors. “We’re going to respect the distribution model infinias has. We’re not changing anything there,” says Kushner. “We’re going to take advantage of the good relationships they have with their distribution partners and start expanding our reach in the market.” Kushner estimates that approximately 10-15 per cent of 3xLOGIC’s business comes from Canada. But there is considerable room to increase that, he says. “We believe there’s an opportunity for us to substantially grow our business in Canada with the combined offering and a stronger, focused push. We see Canada as a growth market.” Kushner says 3xLOGIC is primarily a Cloud-based company, and will continue to grow its business on that platform. Its key market is retail, using multiple data points (such as people counting, dwell time and transactional data) to generate business intelligence information. “The speed at which we can collect the data, splice the data and put the data in a dashboard in front of the operator is achieved with a level of efficiency. We can’t find any better way of doing it than taking that data and dropping it into the Cloud, run it through it the business intelligence engine then re-present it to the operator in a very [visual] fashion so they can make a quick, informed decision,” he says. Kushner acknowledges, however, that Cloud is still a new concept in the minds of many, and education is required to convince some of its advantages. “There is apprehension,” he says. “I remind folks, you’re either a company that is offering service solutions in the Cloud, or you’re a Cloud that is ultimately going to lose your grip on the market.

When it comes to electronic access control, you expect more. We’re listening. Now with Keyscan as a member of the Kaba Group, our horizon has broadened significantly. With access to more products we are now, more than ever, well-positioned to provide innovative solutions in the networked access control marketplace. As a result, all of our integrator customers and end-users stand to benefit from more products, more integration, and more solutions.

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Eaton appoints new national sales manager wider Eaton salesforce facilities to help customers and provide solutions across the Canadian market.” aton is increasing the presence of its mass Eaton’s Cooper Safety and Cooper Notifinotification and life safety business in cation brands include Wheelock and ALERiTY. Canada, starting with the hiring of a new While Eaton already has a signifiCanadian sales manager. cant presence in Canada, the comAndrew Dodsworth recently pany is looking to increase its visimoved to Canada from the U.K. bility here. “It’s very easy to throw where he worked for Eaton as the things out in the market, but you commercial director for lighting have to support that. It’s all about products, based in Doncaster. supporting the customers and “One of the benefit of working making sure they get what they refor a large company such as Eaton quire,” he says. with the footprint that they’ve got, He adds that the company will there’s always the opportunity to support its products through varilook at new, interesting developous marketing and educational iniments. This [opportunity] certainly tiatives, as well as by engaging concaught my eye,” says Dodsworth. In Andrew Dodsworth, Eaton sultants, architects and engineers. Canada, Eaton is based in Toronto, “We are about getting the message but Dodsworth will operate from the out there: Eaton has a very strong offer; Eaton has company’s Calgary facilities. Eaton has 46 locaa very compliant offer.” tions in Canada and more than 2,000 employees. Globally, Eaton employs 102,000 and sells “They’re not all focused on the life safety products in 175 countries. Last year, the company business, but the footprint is significant,” says had sales of US$22.6 billion. Dodsworth. “We have the opportunity to use the

By Neil Sutton

SECURITY STATS The global “action camera” (used to capture extreme sports activities) market is forecast to grow at a CAGR of 23.07

per cent over 2014-2019.

The global managed security services market will be worth US$15.4

billion

2015.

Source: ABI Research

What security technology gets the most consumer hype, inflating expectations? Alarm monitoring

Mobile integration

4.8%

Biometrics

Surveillance capabilities

Home Automation

61.9%

28.6%

Source: Conducted on www.sptnews.ca in Jan/Feb 2015

ix months after the acquisition of Tri-Ed Distribution was completed by Anixter, Tri-Ed’s president of global security solutions Pat Comunale says it has become a “best of both worlds” scenario for customers and vendors. The US$420 million deal was first announced in August last year and closed in September. Since that time, Comunale says, most of the back office functions of the respective companies have been integrated. Comunale says that Anixter and Tri-Ed have put in place a strat- Pat Comunale, Tri-Ed egy that would allow customers of each to access all products. “We’ve set up a process whereby if customers that need products that were typically carried by Anixter we can facilitate the transaction. That really hasn’t been an issue,” he says. Tri-Ed currently operates 55 branches in the U.S., and 10 in Canada. The company recently renovated its Toronto and Montreal branches.

market watch Company (ticker) Price (Mar. 12) 52-week low 52-week high

Source: TechNavio

by the end of

What Tri-Ed looks like post acquisition

SP&T News • www.sptnews.ca

ADT (ADT) $38.34 AlarmForce Ind. (AF.TO) $10.30 Allegion (ALLE) $58.40 Anixter International (AXE) $77.32 Avante Logixx (XX) $0.40 Avigilon Corp. (AVO.TO) $20.70 Checkpoint Systems (CKP) $10.89 Cisco Systems Inc. (CSCO) $28.24 Diebold (DBD) $34.02 Flir (FLIR) $31.51 Gentex (GNTX) $17.98 Honeywell (HON) $102.46 Johnson Controls (JCI) $49.13 Mace Security (MACE) $0.42 Napco (NSSC) $5.65 Richardson Elec. (RELL) $9.13 ScanSource Inc. (SCSC) $37.65 Stanley (SWK) $96.47 Tyco Int. (TYC) $42.38 United Technologies Corp. (UTX) $121.24 Verint Systems Inc. (VRNT) $58.84 Vicon Industries (VII) $1.40 Viscount Systems (VSYS) $0.05

$27.93 $10.03 $43.81 $73.34 $0.23 $13.15 $10.64 $21.27 $30.63 $28.32 $13.17 $82.89 $38.60 $0.30 $3.98 $9.02 $31.32 $75.90 $38.15 $97.30 $41.44 $1.29 $0.04

$39.98 $12.25 $59.50 $105.89 $0.44 $31.15 $14.65 $30.31 $41.45 $37.42 $19.06 $105.39 $52.00 $0.48 $7.05 $11.40 $42.99 $100.44 $46.64 $124.45 $61.46 $6.14 $0.15

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AXIS Camera Station 4.0, AXIS Camera Companion and Axis’s newest S10 Series Recorders; allowing for simple, event-triggered video integration. The controller’s color coded connectors and the configuration wizard enables fail-safe and effective installations. The controller supports most reader types and is fitted with configurable input/output ports and controllable power outputs for external equipment such as door locks and positioning sensors. AXIS A1001 comes with built-in software for basic access management. It’s also open for third-party software, allowing the unit to be integrated with solutions provided by Axis partners. With the largest partner network in the industry, you have the possibility to integrate with a large variety of the newest technology on the market today. Our aim is simple. We’re committed to helping you build a simpler, smarter physical access control system to meet your customers’ needs today and into the future. What are you waiting for? Open the door to the future and a world of new possibilities.

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alendar Las Vegas hotel installs mobile access system

Indonesian health company gets a boost from surveillance Sido Muncul an ndonesian producer o herbal health drink amu as well as a wide range o other health products decided that its old analogue security monitoring system was no longer o ering high enough uality coverage and lacked an capability. A new video management system was also needed. As a result a total o 200 E cameras were installed across Sido Muncul s largest plant. or the warehouse and actory 150 E 2 ay and ight etwork ullet cameras were chosen. or o ce spaces capability is provided by 1 xed dome network cameras. or outdoor areas 2 2M ull network bullet cameras and 1 day and night network bullet cameras provide coverage o the hectare grounds.

Hawaii expands facial database

Access to awaii s Morpho ace nvestigate mugshot system is being expanded to all counties in the State a ter a year in operation. osted and maintained by the awaii riminal ustice ata enter in onolulu Morpho rak s Morpho ace nvestigate system provides acial searches based on photos and videos. he database contains more than 50 000 photos with known identities. he Morpho ace nvestigate system is able to link a crime to a suspect by matching acial images as well as link di erent crimes by matching similar acial images. he system can also be used to search or missing and wanted persons when a photo is available. Morpho ace nvestigate has enabled the onolulu olice epartment to identi y previously unknown criminal suspects and homicide victims as well as provide other critical investigative intelligence.

April 26-29, 2015 S anadian on erence ttawa nt. www.bicsi.org

Exhibition

May 1, 2015 ri-Ed ali ax S ands-on raining Seminar ali ax S www.tri-ed.com

aba has installed a mobile access system at he romwell in as egas. loud-based aba keys operate in all hotel rooms allowing guests to open their room doors with their own mobile phone. he use o luetooth ow Energy means that Apple i S smartphones are supported. aba s mobile access solutions integrate with the hotel s online system via secure communication between the ront desk and the guest door lock. uests can check in online with their mobile and then use it during their stay as their own mobile room key. Mobile access authorizations are encrypted using the egic onnect loud solution trans erred to the hotel guest and only decrypted within the lock o the hotel room.

Appointments

May 13, 2015 Security anada Alberta Edmonton Alta. www.securitycanadaexpo.com June 2, 2015 A Expo Edmonton Alta. www.adiglobal.com June 3, 2015 Security anada ttawa ttawa nt. www.securitycanadaexpo.com June 10, 2015 anadian Security s ocus on Series etail ichmond ill nt. www.focusonseries.ca June 17, 2015 Security anada est ichmond . . www.securitycanadaexpo.com June 23, 2015 A Expo algary Alta. www.adiglobal.com September 15, 2015 Security anada Atlantic ali ax S www.securitycanadaexpo.com September 17, 2015 Anixter Showcase oronto nt. www.anixter.ca

Iain Morton

•

Tim Bell

Paladin Security has announced that Iain Morton has joined the organization as director Eastern Canada. Working from the company’s Toronto office, Morton will form part of Paladin’s senior leadership team. Morton’s previous positions include vice-president, Canada, ADT Advanced Integration. Tim Bell has joined the 3xLOGIC sales team. He comes to the company after spending time launching video analytics sales strategies with VideoIQ and ioimage. AMAG Technology has hired Bill Daniel as the new Western Canada regional sales manager

10 SP&T News • www.sptnews.ca

Bill Daniel

•

James I. Chong

and Kristina Connor as the new Northwest U.S. regional sales manager. Bill comes to AMAG from Stanley Security Solutions where he was the senior national account manager. Kristina spent the last four years at Digital Monitoring Products as a dealer development manager managing new and existing business. VidSys announced that its board of directors has named company founder and chief technology officer James I. Chong as the new chief executive officer. Chong founded VidSys in 2005 and has more than 20 years of experience in software, IT, video surveillance and security.

Scott Swann

•

William Kennedy

MorphoTrak announced Scott Swann has joined the company as the senior director of innovation for the Criminal Justice and Public Safety Business Unit. He most recently served as Special Assistant to the FBI Executive Assistant Director of the Science and Technology Branch. William Kennedy has joined Whitby, Ont.-based Keyscan as regional sales manager, Southwest U.S. covering Southern California, Nevada, Arizona and New Mexico. Kennedy was previously responsible for driving sales for Westinghouse (Honeywell) Enterprise Access Control products.

September 24, 2015 anadian Security s ocus on Series ospitality ichmond ill nt. www.focusonseries.ca September 28 – October 1, 2015 AS S nternational Seminar and Exhibits Anaheim ali . www.asisonline.org October 6, 2015 Anixter Showcase algary Alta. www.anixter.ca October 14-17, 2015 E A Expo allas ex. expo.cedia.net October 21-22, 2015 Security anada entral oronto nt. www.securitycanadacentral.com

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LINE CARD New site for Armstrong’s dealers

Armstrong’s National Alarm Monitoring has launched a new website, armcom.ca, aimed at independent security dealers and installers. The new website combines many new features for Armstrong dealers and their employees, including resources for their office staff, sales departments and on site security alarm technicians. Those features include: Online depository of documents for dealers, including sales tools and Human; resources tools; notifications on special pricing on equipment for authorized dealers; direct access to dealers accounts; and company newsletters. The website also contains an electronic fillable contract form which will allow dealers to fill out and submit all new customer information directly on-line. This will also provide simultaneous verification of the documentation and what was received directly to the end-user and the dealer for their review. The data entry department at the monitoring station will also be alerted to review the entry. The finished form is fully customizable to each dealer, and can include their company logo and specific information.

foot office building from Telus Communications in downtown Vancouver for $42 million. The building is adjacent to Telus Garden, a $750-million real estate project, and was recently updated with a new technology infrastructure. The company has paid a $2 million deposit to purchase the building with

the closing of the purchase conditional upon Avigilon paying the balance of the purchase price, as well as completion of

certain required construction work, registration of applicable documentation with the City of Vancouver, and other conditions. The transaction is expected to be completed in October 2015, and the company plans to transition its Vancouver-based employees to the new space in 2016.

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Genetec has announced that its flagship security platform, Security Center, now supports the Prism analytics package from Prism Skylabs, to provide Cloudbased, business intelligence tools for retailers. By integrating Prism with Security Center, the company says, retailers can extend their existing video surveillance camera system to provide in-store data and metrics to monitor store traffic reports, monitor customer shopping trends, and remotely inspect store merchandising and brand displays. “It’s our goal to bring next-generation analytics technology to new classes of devices,” says Prism CEO and Founder Steve Russell, in a company statement. “Genetec is one of the best video management systems in the world, and together we offer a powerful solution for retailers.”

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Avigilon to purchase new property in Vancouver Avigilon announced that it has agreed to purchase a nine-story, 135,000 square Altronix_SPT_April.indd 1

@SecurityEd • April 2015 13 2015-03-24 12:01 PM

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ADI recognizes Honeywell Cable in Canada

DI recently announced the recipients of its 2014 Vendor Awards, naming Honeywell Cable as its vendor of the year for Canada. The awards were presented earlier this year during the Vendor Symposium at ADI’s 2015 Kickoff Meeting in Champions Gate, Fla. The event was attended by more than 400 people representing more than 175 manufacturers. ADI selected Hikvision as its U.S. Vendor of the Year. “Congratulations to all the ADI 2014 Vendor Award winners. Each of these suppliers has demonstrated their commitment to ADI and delivering

Tyco company appoints rep firm for Canada

xacq has appointed Titan Products Group as its Canadian manufacturer’s representative for its exacqVision product line with an official start date of March 1. Titan now represents three of the major Tyco Security Products brands in video and access control: Exacq, American Dynamics video solutions (including Illustra and VideoEdge) and Kantech. Tyco’s video and access control products have been represented by a number of different firms in the past, but Tony Williams, Exacq a decision was made to unify that representation under a simple company, says Exacq’s regional sales manager for Canada Tony Williams. “It’s just more cohesive and it makes a lot more sense,” he says. “Our thoughts are to ensure that Canada-wide we have a solid, consistent message for the Exacq platform,” adds Titan president Carl Jorgensen. Jorgensen says Titan recently hired new personnel to cover Eastern and Central Canada and plans to hire an additional person in the West.

value to our dealer base,” says Michael Flink, president of ADI Global, in a statement.

Other winners included: • New Product of the Year United States/Canada: e alt ordless yroscopic Screwdriver • Best Sales Support United States: Axis Communications • Best Sales Support Canada: Trendnet • Best Marketing Support United States/Canada: Digital Watchdog • Rookie Vendor of the Year United States/Canada: Bose • Best Supplier Delivery United States/Canada: 1st Place: eyscan

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LESSONS LEARNED

By Victor Harding

The special value attached to RMR When calculating a realistic value for an alarm business several factors must be taken into account

ecently, I have been shown valuations of two different alarm companies that have been substantially lower that what I think they were worth. In one case, the valuation was less than half of what I thought the company was worth. Both of these valuations were professionally done by Chartered Business Valuators. How can a professional valuation firm be that far off the mark? The first answer is that the CBV probably did not take into consideration the special value attached to recurring monthly revenue (RMR). Both valuations that I saw valued the company based using a multiple of earnings methodology, a very common and in most circumstances proper method, without looking at the special values that RMR can produce. Now most small to medium-sized alarm companies that I have seen do not produce huge earnings. They simply don’t make that much money. Yet that same company might have 1,000 alarm accounts generating $25,000 of RMR. Using the multiple of earnings method and assuming that the company earned

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“In simple terms, $1,000 of RMR is worth more than $1,000 of regular revenue.” an average of $80,000 per year, then that company might be worth a multiple of 5X $80,000 or $400,000. And 5X is a fairly high multiple to be using here. But we know that in the open alarm account market that same company’s alarm accounts alone will almost certainly fetch 33X $25,000 or $825,000 less an amount for deferred revenue — a value that is almost double that done using the multiple of earnings method. Why is that? The first reason has already been noted. Using a multiple of earnings method does not attach any special value to RMR. In simple terms, $1,000 of RMR is worth more than a $1,000 of regular, non-recurring revenue. This is because RMR is higher margin than most revenue and it recurs every year. But secondly, in

arriving at the higher value of $825,000, we perhaps unknowingly assumed that the purchase of the company with the 1,000 alarm accounts would be a “tuck-in” acquisition where few costs that the seller incurred running the company would carry forward to the buyer. This second factor plays a big role in allowing the buyer to pay the higher price of $825,000. If the buyer had to assume a large amount of costs, the 33 multiple for those 1,000 alarm accounts will definitely drop. So what can we learn here? First be careful using a multiple of earnings method to value alarm companies. It will almost end up producing a value that is way off the mark. Secondly I want to issue a caution to those alarm company owners that want to sell their company, leaving most of the existing costs intact for the buyer after, and yet still expect to get multiples up in the 30’s for their company. In simple terms, this is not going to happen. Victor Harding is the principal of Harding Security Services (www.hardingsecurity.ca).

By Colin Bodbyl

Extending Ethernet for IP cameras Overcoming distance can be a challenge, but there are options available to help integrators

hen IP cameras were first introduced, one of the largest complaints was the distance limitation associated with them. Several technologies had already been developed at the time to help other IP products overcome the 328 foot Ethernet distance limitation and dozens more have been introduced since. Unfortunately, there is no one-size-fits-all solution and understanding the options available to installers is now key to their success.

Fibre Optics Fibre optic communication was in use decades before the invention of the IP camera. It’s a fast and reliable solution for extending Ethernet connections to distances that far surpass the needs of most surveillance systems. Fibre optic technology also supports the most bandwidth of any Ethernet transmission type. The downside to using fibre optics is mostly related to its cost. Besides being expensive, fibre optic technology does not support PoE. It’s also fragile and

“Using professional wireless products and installing them correctly can yield results.” requires special tools to install and troubleshoot. Due to its high cost and power limitations, fibre optic technology is best used for connecting two networks together across long distances that require a lot of bandwidth. In the surveillance industry, fibre optic technology is commonly used for interconnects between two distant buildings, particularly when cables need to be pulled through long underground conduits, or where bandwidth requirements are high.

Wireless Wireless has been stereotyped as unreliable and finicky, but that reputation comes from low-end consumer products or professional products installed incorrectly. Using professional wireless products and installing them correctly can yield results just as reliable as a

hardwired system, and at a fraction of the cost of fibre. Downsides include that wireless (of course) does not support PoE and also has limited bandwidth options.

Ethernet Extenders Ethernet extenders and repeaters are devices that can be added either every 328 feet, or at either end of a longer cable to allow for Ethernet transmission over Cat5e cable well beyond the 328 foot limitation. They are relatively inexpensive and extremely simple to use. Major downsides to these products are their bandwidth and power restrictions. The longer the cable, the less bandwidth and PoE wattage will be available at the furthest end. That being said, Ethernet extenders are an excellent choice for long runs to single cameras. Ethernet extenders are far cheaper than fibre and support PoE, so no power source is required at the camera end. If your bandwidth requirements are small or if you just barely need to extend your cable beyond 328 feet, then Ethernet extenders are a good choice. Colin Bodbyl is the principal of Zeecure (www.zeecure.com).

@SecurityEd • April 2015 15

A E

THE NEW SECURITY anadian integrators weigh in on -based systems consolidation standards and working in today s rapidly changing industry

ord an er rinten reedom ock Security Jarrod Budd: I would agree that IP is — not a newer thing — but it’s more of a natural progression, so people are starting to have more of a buy-in into the way the technology is given. There’s greater communication between departments within organizations and, in doing so, as I said, it’s a natural progression into that path of IP. So everything from a basic residential alarm system all the way up to an enterprise-level access control and camera system, they’re all starting to communicate more by IP. Piero Romani: The shift to IP, we talk about it as a transport protocol, to be able to take your video off the traditional infrastructures and put it over IP. But I think what people are starting to realize is that it has overarching elements to it that perhaps we’re just starting to get comfortable with. And that is, now you’re on a common transport platform, everything can talk to everything else. So now, your software doesn’t need to reside on a dedicated device, on an isolated network. You can start to inte-

16 SP&T News • www.sptnews.ca

Ed Fitchett: I would agree with everything that everyone has said. I would add that we were brought into the IP world somewhat kicking and screaming through the CCTV land, and I think it’s a really relevant question now because the rest of the products are jumping onboard the IP bandwagon. Transporting of information and getting the information out to PDAs and other off-site devices is certainly hot. I would add video analytics into the mix because we found recently the video analytics side of things has gotten much better. Some products are performing much better than they ever have, and I think video analytics is going to drive an awful lot of product sales in the next five or six years. RW: On the question of product standardization, I don’t know if it’s going to be as clean as it should be. It’s problematic. If we talk about the standard of camera communication, that this camera should work on this DVR, or this NVR, that is not as it should be. The standard is not really there. I think we’ve all experienced buying an NVR and another camera and they’re supposed to work together, and they don’t. A lot of manufacturers are not playing fair game on this one because they put out there that their product will work with someone else’s. On the flip side, they also have a conflict of interest making sure that their product works with

GV: I think it’s also brand loyalty. Even as an end-user installer, my bottom line might be 20 points higher by using a specific manufacturer that I know is tried, tested and true and I’m not going to have any headaches. So the brand loyalty is something worth the value because they’ve done the testing, they’ve brought it to the bench and it’s going to work for me and in the long run save me money. If I have to shave points as the end guy, that’s an installation that maybe I don’t need.

“Now everything certainly is stronger, and IP is the foundation.”

Gord Van Der Grinten: Even on the small integration side, for sure, I would say the IP world is the foundation, the platform, now of what everything is being built on. A few years ago, when IP was starting to become the focus, it really wasn’t supported, so IP devices needed a lot more tending to or babysitting because they’d fall out from the peripherals that were supporting it. But now, everything certainly is stronger, and IP is the foundation.

Rod Wechsler: It’s primarily IP technology that is driving us forward. How we design and how our systems communicate. That’s the main technology. It’s reshaping how everything is communicated from camera surveillance to access control, even voice – as well as the PDA device, how we manage and control things using portable devices. Those are the two forces.

grate the software; you can go to open platforms. Manufacturers can start to talk to competitor products or integrate competitor products a lot more easily than they ever could.

PR: Again, the security industry is transitioning to IP. So a lot of people need to learn and work their way through from a manufacturing perspective. There are going to be some integration issues and, as an integrator, we’re working with our customers all the time to say, “You really want to be careful before you start to stray too far away from products that you know are going to integrate and know they’re going to work well.” And to a certain degree, they’re coming back to us, saying, “This is what you guys do, right? Do they work or not?” That’s part of the responsibility we need to start to take on, to say, “These are the products we’ve tested, and these are what we know work.”

AS A

SP&T News: What is the major technology driving force in security today?

EF: The ONVIF standard is loose. The ONVIF standard — we hold it up as a benchmark that people have to make their cameras adhere to, but often they don’t. The industry is still fragmented that way, and I don’t know what it will need to pull that standard off.

Gord Van Der Grinten Owner, Freedom Lock & Security

S SA

t’s not enough to provide a list of SKUs, or sell based on brand strength or simply point to a dollar figure. Today’s end users want their security issues addressed by knowledgeable people — people who can not only solve problems but come up with answers to questions the end user didn’t even know they had. SP&T News asked a group of integrators to come to the table to talk about the changes the industry is going through. Being knowledgeable is Job 1. In many ways, it’s always been, but the level of technical sophistication required today has never been higher, at every level of a security integration company. Piero Romani, Stanley Security Solutions; Rod Wechsler, INTO-Electronics; Gord Van Der Grinten, Freedom Lock and Security; Jarrod Budd, Life Safety Security; and Ed Fitchett, Fitch Security Integration sat down with SP&T News editor Neil Sutton to talk about the business of selling and installing security solutions, and what that means to successful Canadian integrators today.

their product. I think that’s a big problem for us because it’s not so easy knowing if what you’re reading, whether that’s actually going to work in the field. It’s a big problem for us. It’s very, very costly.

ware. It’s selling expertise. It’s a question of, what service we can deliver them most efficiently, in the most effective manner — is what’s really going to drive the successful organization. It’s not about the hardware. It might be at the end of the day the client is going to buy 40 cameras through their own purchasing departments and IT department. They just may have to bring in the professional group of people to put it together. It’s about our labour. It’s about our charge. SP&T: Does everybody need to have the technical skills, not just the technician?

Ed Fitchett Owner, Fitch Security Integration

PR: You can’t test and integrate every single product. You have to pick the ones you’re comfortable with. RW: I think on the positive side, if you’re optimistic about it, what the video does now for us is it gives us amazing clarity of picture — the identification we have now compared with what we had five, 10 years ago. And I think because of that, the customer will end up wanting to spend more money because of the information they get out of it. If you think back to VCRs, then to DVRs — things were blurry. It’s very different now. The result you get out of video today is incredible. I think that will help us to make a better margin because the client is getting something much better out of it than they used to. The client has picked up an iPhone or a Blackberry or a Samsung, and they’ve got this incredible amount of technology in this device. You take a picture on your portable device, and it’s a megapixel camera or whatever you’ve got. But at the end of day, that’s driven so much expectation from the client; I think it’s really helped us. How many times did we have a client call us 10 years ago and say, “Someone broke into our garage. I can’t even recognize the person,” and we have to say, “Yes, but that’s the best we can do.” And today, we get less of those calls because you’ve really got a much better picture. JB: The consumer side is bringing a focus on the security side. GV: Sometimes, you bring on the higher megapixel camera. You show them the benefits of a better quality image. They don’t care: “I’ve got a DVR that’s still chugging away in the basement. I just want to see if a car pulls up.” So, I can show them the new stuff, show them why they should spend the extra dollars, and “I just want an analogue camera.”

RW: It used to be you’d buy 20 cameras and a coax cable and some connectors and you get it sorted. You had to figure out how to set the clock and the VCR. That was the hardest part. It’s a completely different ball game now. For sales people now to sell a system, it’s not so simple. They have to know what pieces they’re selling and the compatibility. JB: That’s the point I was about to bring up. In our trainings, there’s a lot of my sales people going to more of the technical training. So we’re not dividing

“The consumer side is bringing a focus on the security side.” arrod udd i e Sa ety and Security it between technicians and salespeople anymore. It’s more of a hybrid solution. And that is where our company — we’re more on the solution-based side. It’s hard for us sometimes because we don’t have a specific product in our pocket, or we don’t lead with a specific line. We find out what the client’s needs are first, and then we find the products that will fit their needs. We spend a lot of money testing things and figuring things out and not necessarily getting any return on it. But the investment that we’re making is hopefully for a client for life. RW: And there are layers to that. I don’t know all the layers myself. I’m involved mainly on the strategy and on the sales side. Talking to our technical group — to get back to your original question — is that the skill-set for the installers in this environment is, they have to be network savvy. They have to understand networks. No question about it. That’s hard because there’s not that many guys — and we’re all short

RW: There’s that as well. But, at the end of the day, it’s really helping us. And your point is dead on, about analytics. That’s a big positive. EF: That’s a game changer. PR: As an integrator, I think customers are going to start looking to us for the expertise in how to really leverage integration of those analytics, how to pull them together and how to pull meaningful data that they can then bring back into their organization and drive their business. RW: That’s where the margin is: It’s not in the hard-

Rod Wechsler Director, INTO Electronics

of finding technical guys — that can understand the security industry and be able to put this stuff together. EF: The thing is now, in the technology game, your backflow of information from the field is so much greater. It’s almost like an ISO compliancy you need, to get the amount of information back from the field that documents what you did, how you did it, what those addresses are, everything, serial numbers, all of that... RW: Licences, when you install, when they’re going to expire, and all this has to be documented. Otherwise, the client is the loser. EF: And all of that is done for whatever price we do the job for. It’s not like we get paid to manage that information. It is client information, but still, that information has to be managed by the dealer because generally the client doesn’t, unless their IT department is heavily involved, which is becoming more common these days. I totally agree with you about the information. It’s a big information world we live in. RW: It’s no longer: write up a quote, invoice the client and you’re done. If you’re not tracking your information, if you’re not on top of that information, you’re in for a big surprise a few years down the road. SP&T: You have your own database solutions that make sure all this information is where it’s supposed to be? RW: We built our own information system to track that information. EF: We did, too. We have our own database. SP&T: How much of your time is spent on managing that? RW: I would say that, on average, probably every two months we spend a few days writing code or doing something, somewhere in our system, to keep it on a par with what’s going on in our office. SP&T: So, to a degree, you’ve become your own software developer? EF: That is absolutely the case. With every change the industry makes, our platform has to adapt to it — if you add a field, if you do this or that, if you add this device, if you need that information coming back. We’re at the point now we’re 100 per cent paperless at the end of the trail. We’re still a lot of paper; it’s getting less and less all the time. But at the end of the day, everything is information in the database. PR: It has to be there because your customer has the right to call up and say, “Can you give me an inventory of what’s been installed over the last six months, or what’s been serviced? I need the new serial numbers or whatever.” And with a lot of our larger customers, it’s a very fluid thing. So, how do you integrate with the people in the field to make sure, when they swap that camera — it’s a new camera — was it replaced with something that is no longer available, from a part number that’s been discontinued? What’s that new part number? What’s the new serial number, so we can maintain the warranty with the manufacturer? Those are all responsibilities that come back to us.

@SecurityEd • April 2015 17

And if the customer comes back and says, “Show me what’s new. What do I need to swap out? This year I want to replace anything’s that’s over five years old.” Well, if we can’t tell them, we haven’t maintained our responsibility to the customer to have information available to them. At the same time, from an internal perspective, it’s a lost opportunity for us because now we have an opportunity to replace any camera that’s more than five years old, and we can’t tell them if it’s five cameras or 500. So we lose out. There’s a mutual benefit to be able to maintain that data.

“That’s where the margin is: It’s not in the hardware. It’s selling expertise.” od echsler

-Electronics

SP&T: What are the customers’ expectations? Are their demands more sophisticated than they were five or 10 years ago? GV: What they want is what they see. It’s like smart phones. There’s a new release: “I want that one.” I’ve found that the hot topic is video, in the fact that, “I want to see my front door on my smart phone. How do I do that?” They saw someone else with it, and now they want it. Now, are they going to afford it? That’s a different story. You give them a pricing on it, and here’s what it costs, and it’s either yes or no. But, when they see things, it’s more at their disposal now. So all of a sudden, you get a call: “I want this. My neighbour has it. How do I get that?” RW: Forget the debate about the best service at the best price. Let’s not even go there. They want stuff yesterday. They see you now; they want a proposal done yesterday. The whole world of email and information; you don’t have time to think. That’s really the challenge: it’s the speed of how you have to give them information. They want it now, and they want it put in next week. PR: I think one of the things I’ve seen over the last five years is, from a customer perspective, there’s been a shift in the visibility of security within an organization to where it may have been 10 or 15 years ago. I think some of the events in the world we’ve seen have now made people realize it’s not enough to assume that four cameras are good enough or our access control system is where it needs to be. It’s now something that’s being reported back through an executive committee because health and safety has become paramount. A lot of our customers that are in target segments, or target verticals, where they need to show they’ve done their due diligence in making sure it’s a secure environment is there. We’re dealing with a lot more professional people, in that they’re putting in specific people with the mandate of security. I’ve seen a lot of organizations — I could name five — that last year for the first time appointed security directors. EF: We’ve thought very differently in Canada about security. When I go to the U.S. or deal with U.S. clients that have locations up here, they think com-

18 SP&T News • www.sptnews.ca

pletely differently than we do. They are in a very much protective mode. JB: And everybody understands exactly what needs to happen and why it needs to happen. To your point, the incident that happened in Ottawa, everyone around the world for about two days noticed it, talked about it, said everything is going to change. Life is not going to be the same anymore. And here we are, sometime later, and we’re right back into the same routine. We’re a very reactive nation when it comes to that. PR: What we’re starting to see now is centralization of the security management in organizations. We deliver services coast to coast. There is now one person who is checking that installation in Vancouver, the one in Calgary and the one in Halifax to make sure they were all done to the same corporate standards. And if that cable isn’t cleaned the way it should be or if that power isn’t the way it needs to be, then we’re being told to go back and fix it. Because now they’re looking at national standards to make sure that, if something were to take place, they can say we’ve done our due diligence: we bonded our integrator and everything is consistent coast to coast. That puts more responsibility on us to track our installations, to create our standard playbooks that say when a technician goes out to do customer A, it doesn’t matter what part of the country he’s doing it in, it’s being done to the company’s standards. RW: It’s different standards for different types of clients. Fortune 500 companies have different standards. A Jewish day school has a different standard from another type of public school. A different type of risk, a different type of standard, a different solution, a different concern. I do a lot of Jewish schools in the city, and I can tell you, for years and years we go through these discussions about the level of security at Jewish schools based on the threat level. Only in the past three weeks, some schools are talking about putting fences around and turnstiles around schools. That’s reactive to what’s going on. But at the end of the day, does it really resolve the threat? Does it deal with the threat? I don’t know. Yes, for sure, when you have a serious threat at a government building, there are certain ways you have to protect that. You’re locking doors, you keep people out, you’ve got cameras and you have guards. But you don’t want to create expectations in your client that you can stop something happening by card readers and some cameras and things like that.

Piero Romani Vice-president, Stanley Security Solutions Canada

GV: And based, too, on the integrator. So, one school might have a different assessment, because of its geographical location, than another one. It’s more of a layering of the security, based on budget and the design, and it’s just lowering the probability of an issue happening. EF: What I’ve seen is a much greater interest in having a full security audit done by an independent security auditor. And that isn’t just to figure out their weak spots; that is also to reduce the liability. They have had someone come in that’s considered to be a professional security consultant, they’ve produced a report and, let’s say, most of the things in the report were addressed. Should something happen, they have done their due diligence. And I think, since the terrorist threat, it has become more important to people to understand their liability. SP&T: What kind of impact is the number of major acquisitions in security having on the market? PR: To me, it’s a sign that the industry is maturing and it’s getting a lot more visibility. And, with all the other things we’ve talked about — like dedicated security professionals, the transition to IP and analytics — it’s becoming something that’s being integrated into the rest of the corporation. It’s becoming a significant line item. And it’s becoming a place where manufacturers can make money. So they’re looking to acquire. EF: In Panasonic’s case, they don’t have software. That acquisition [of Video Insight] made sense. In Canon’s case, they didn’t have hardware; so, in Canon’s case that made sense too. I think, in the manufacturer acquisitions, there’s nothing I’ve seen that really raises a flag. PR: I don’t think anyone’s going to be concerned about the Axis acquisition [by Canon] because it shows further stability in the product. If it was another, smaller organization or a niche provider, then you’re wondering what the going concern is: are they going to be here five years from now? EF: Or, if it’s a competitor, that would be worse because then you wonder who is going to win the battle of the product?

Jarrod Budd Director of sales and operations, Canada, Life Safety Security

RW: I think the concern is more about how we feel than what the client feels. I don’t think they’re so connected to the details of these mergers the same way we are.

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Money Masses rom the

For self-starters in security, crowd-funding can be a means to get a new project off the ground y inda ohnson

rowd-funding has been used to finance every kind of venture, from video games to potato salad to the preservation of a Star Wars set in Tunisia. For costly, high-tech projects, platforms like Kickstarter and Indiegogo are an alternative to traditional means of raising investment. Many security companies have run successful campaigns, raising hundreds of thousands, even millions, of dollars in a matter of months. Not every crowd-funding campaign, however, is successful. The dangers can be all too familiar. For Jean-Luc David, a Toronto-based freelance software developer, who spent a year working on a smart alarm system before launching it on Indiegogo, the problem in the end was mainly one of timing. The security system, Alertly, which he started developing after his friend’s car was broken into,

20 SP&T News • www.sptnews.ca

received much encouraging feedback, says David, co-founder. Alertly was a learning system that used facial recognition to distinguish between family members and strangers, and motion detection and image recognition to differentiate between pets and humans. The Alertly team attended a four-month incubation program that provided training and mentorship. They built the product. Then, weeks before they were to launch their campaign on Indiegogo, a competitor announced its intention to launch a product on the same site.

“Even if you don’t agree, you have to be responsive. You have to be communicating.” on Shulsinger mmedia Semiconductor

“Within the first 15 minutes, they had sold 100,000 units of their alarm system. They were featured on CNN, on MSNBC. They were featured everywhere. That campaign ended up making $3 million,” David says. “We released two weeks later and had less than stellar results. A lot of the people who might have considered buying our system bought the one just two weeks prior.” In addition to timing, he says, their project suffered from the proliferation of similar products on the market. “There was so much saturation that it was hard to differentiate.” It can be very difficult to get a start-up off the ground, says David, who has worked at Microsoft and Yellow Pages Group. “It depends on what kind of company it is. With a software start-up, you can bootstrap your efforts without any cost incurred, and it’s much easier to run and potentially have success with it.” With a hardware start-up, however, costs are higher, he adds. Along with overhead, you have to build a prototype and demonstrate it to investors. Manufacturing the hardware product can be very expensive. The cost of producing their product, for example,

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was estimated at $3 million to $5 million. Though his crowd-funding venture was disappointing, David says, it was a great learning experience. The team, which included an industrial engineer and graphic designer, learned a lot about hardware and the security industry. They also learned how to run a more effective campaign. They researched to figure out what went wrong and talked to other startups who had run more successful campaigns. They also discovered “growth hacking,” techniques that allow campaigns, David says, “to engineer their own success.” By buying its own product in the first few minutes of a campaign, for example, a company provides “social proof” that the product is much more popular than it actually is. “Growth hacking has three characteristics: it’s not quite illegal — you’re not going to go to jail for it but you might go to court — it’s definitely unethical, but it’s 100 per cent effective,” he says. Andover, Mass.-based Immedia Semiconductor was more successful with its venture. The company launched its product, Blink, on Kickstarter in July last year, with a target of raising $200,000. By September, they had raised more than $1 million. The technology at the core of the Blink home security system, says Don Shulsinger, vice-president of marketing and sales, is a battery-operated camera with built-in motion detectors. When an event triggers an alert, the user receives not just the message but also a five-to-10-second video clip showing what happened. The system also provides greater viewing ability, he says. Because cameras are battery-operated, users can place them anywhere and move them anytime. In addition to funding the product, Shulsinger says, the campaign validated their approach and product concepts. “We had almost 7,000 backers, who bought the product sight unseen, just based on the concept.” The decision by Immedia, then solely a fabless semi-conductor company, to launch a crowd-funding project for Blink, he says, was made in part because of the difficulty of raising money to develop camera chips. “It’s very competitive, and the venture capital market for semiconductors in the U.S. is extraordinarily difficult. So we were challenged in raising money to fund the company to continue to build the business.” Like David, Shulsinger believes the campaign was very instructive. They learned, first, they had to run an effective PR campaign. They also learned the crowd-funding community can be very vocal, providing a stream of ideas and feedback. “The Kickstarter community gets to be demanding,” he says. “They’ll tell you that if you exceed your goals, you should have something called ‘stretch goals.’ They say, for example, ‘If you meet $600,000, you might add a new feature or new function.’ ” In fact, Shulsinger says, they received a lot of interesting feedback about future features, which has helped them develop their business. Traditionally, the company, which was selling to OEMs in Asia, found the feedback cycle very slow. It could take a couple of years to go from offering a concept to bringing the product to market. “What we learned here was that you can take an idea, do some basic prototyping and get it in front of the end consumer within months to validate the premise of your business,” he says.

Jean-Luc David with company co-founder Eugene Joe in 2013. The pair developed a home security product called Alertly. The project met with numerous obstacles, but David says the experience was highly informative

“So we learned that times have changed. One had an old business model and, now, one has a Technology from Vancouver-based UonMap Information Technologies can be used for new business model, which is much personal emergency response and remote video monitoring quicker and can be much more nimble in terms of developing the business.” Another highly successful camGermany, where they exhibited a prototype of their paign was run by Sentri, a San Francisco, Calif.-based new product, UON. The system can be used to company. Its Kickstarter campaign last year for a provide personal emergency response, remote-access plug-and-play home security system raised $391,000 video monitoring of a home, office or car and as a in one month, almost twice as much as its original smart home system. goal of $200,000. What really sets battery-operated UON apart, Wendy Qi, company co-founder, says the Sentri however, says Alex Timchenko, CMO, is that the device is like a “dashboard for the home,” a single device’s sensors allow users to get information about customizable unit containing a camera, motion their vehicle’s position on the road. Through a feadetector and sensors that track the home’s environture called ESNaR, the device provides emergency mental health. situation notification and reconstruction. “In case “Beyond tracking of a car accident, the phone builds a 3-D model in physical security, we think your online UonMap account that reconstructs the a home’s environmental situation and shows how the crash happened,” he says. health is going to be more While raising funds for their project, Timchenko and more important. Today, says, they are also eager to use the crowd-funding we don’t really know how platform to show people their idea. our home is doing in terms “We’re very interested in creating a community of humidity, air quality levof people who are interested in this field and who els. Sentri will help people want to develop this kind of product with us. We endy i Sentri track that, so they can take still have the possibility to make changes in product care of their homes better.” design, in specs, and so on,” he says. “We want to Qi, too, believes crowd-funding feedback promake a product that people will love.” vides a fantastic opportunity to any company that Although crowd-funding can deliver great wants to launch a new product. “You no longer have rewards, David says, every campaign also creates serito build in a vacuum and hope it will be something ous risks to the start-up. people want,” she says. “When it’s successful, it’s great because you have It also helps the company adapt the brand to social proof, social validation, that people want your consumers. In the past, a “brand” meant a company product. And if you show that to an investor, they love talking to consumers. “But more and more today, a it. They think it’s great,” he says. “The disadvantage is, brand is about consumers being involved in that conif you’re not able to meet those goals, you’re basically versation and building it together. And crowd-funding proving that your product doesn’t have the market. has been a tremendous way of doing that,” she says. So, it can backfire on you — and make it appear that Vancouver-based UonMap Information your product isn’t worth what it is.” Technologies launched their campaign in midMarch, following the CeBIT 2015 expo in Hanover, Linda Johnson is a freelance writer based in Toronto.

“More and more today, a brand is about consumers being involved in that conversation.”

22 SP&T News • www.sptnews.ca

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Product Previews

Access Control

IP access control camera ZKAccess

BioCam300 is an HD IP access control camera that combines long-range facial recognition, video surveillance and time and attendance, in a single device. It can operate standalone (no computer nor panel needed) for quick and easy installations requiring no special wiring, and can also be tied into any existing third-party access control panel having Wiegand input. BioCam300 embedded facial recognition technology unlocks a door once authorized users walk within 12 feet of its camera. Its built-in infra-red illuminators ensure accurate face recognition, even in low-light conditions.

Mobile access solution HID Global

www.zkaccess.com

HID Mobile Access enables a smart phone and other mobile devices to securely open a door or gate. This solution enables new iCLASS SE or multiCLASS SE readers to activate with a close range “tap” of a smartphone, or from a distance with HID Global’s patented “Twist and Go” gesture technology. HID Mobile Access supports both Android and iOS operating systems. The solution is powered by HID Global’s Seos technology.

Proximity card reader Farpointe Data

The P-640 Patagonia reader supports popular proximity card and tag technologies with an integrated keypad for 2-factor verification applications. The proximity card reader features an expanded eight-inch read range for increased convenience as the user enters a PIN on the keyboard. Since many of the P-640 units are slated to be used outdoors or in dusty environments, the proximity/keypad combination is designed to meet IP67 certification.

www.farpointedata.com

www.hidglobal.com

Classroom lock Securitech

The QID (Quick Intruder Deadbolt) classroom lock functions as a classroom function lock for everyday use but features the ability to instantly deadbolt a classroom door with the push of a single red button. With one press, the person closest to the door can instantly activate both the deadbolt and the lever handle lock. A visual indicator lets the teacher know that the door is secured by the QID deadbolt and the outside lever is locked.

PSIM solution Proximex

Surveillint Essentials is an entry-level PSIM solution. Surveillint Essentials is suggested for users in small- to mid-size environments seeking integrated situational intelligence from existing video, intrusion, access control and fire systems. Operators can view multiple cameras live as well as automated video guard tours. Surveillint Essentials’ response workflow guides operators in incident response.

www.proximex.com

www.securitech.com

Video door entry station Talkaphone

This compact video door entry station features a new design and IP66 weather rating for tough environments. The embedded wide-angle megapixel camera is ONVIF compliant and offers a clear view of the caller. It works with major video management system (VMS) vendors and offers deployment flexibility to higher education institutions, healthcare and corporate facilities, and other institutions where it is necessary to retain video evidence. The speaker and microphone components coupled with a proprietary audio enhancement algorithm offer sound clarity. The compact video door entry station is also SIP compliant.

www.talkaphone.com 24 SP&T News • www.sptnews.ca

Single gang illuminated signs

Card-reading device

CM-AF500 Series single gang illuminated signs are designed to provide critical messages, as needed, to building occupants. When not illuminated, the sign (text and/or graphics) is invisible. When illuminated, the text/graphics are highly visible, even in bright sunlight. The new features include an increase in the range of power input voltages from 10 to 36 volts DC, and two wire leads in place of 12V, 24V and common.

The new S3040 portable reader is a lightweight and rugged hand-held card-reading device for roaming security. Key features include card swipe and visual verification of cardholder photograph and high-resolution 3.5” sunlight readable display. Stored cardholder photographs are displayed on the reader along with name, date of birth and job title, allowing for additional visual verification. The reader can store up to 200,000 cardholders and includes mustering, occupancy, roaming and random check modes. The S3040 portable reader connects to host via encrypted Wi-Fi or USB Ethernet hub and supports 125kHz Proximity, MiFare or DESFire CSN, iClass/iClass SE and PicoPass.

Camden Door Controls

www.camdencontrols.com

Network security appliance Genetec

The SV-32 appliance comes pre-installed with Genetec’s open platform security system, Security Center, allowing end-users to deploy their choice of a unified security solution, or a standalone access control or video surveillance system. Designed to secure any site requiring up to 32 cameras, or up to 100 readers, the SV-32 supports a wide range of IP cameras and provides native integration with a variety of IP-ready door controllers and electronic locks. When deployed as a unified system, the SV-32 provides a consolidated view and control of video and access control activities with monitoring, alarm management, and reporting tools.

www.genetec.com

CEM Systems

www.cemsys.com

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2:44 PM

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@SecurityEd • April 2015 25

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QA &

vigilon is not about to let the grass grow under its feet. The company purchased video analytics firm VideoIQ a year ago, and late last year purchased the patent portfolio from ObjectVideo for US$80.3 million — a total of 76 patents and more than 50 patent applications. At the time, Alexander Fernandes, the company’s founder, president and CEO, said, “The future of the video surveillance industry is in video analytics.”

“With video analytics, it opens up a whole other adjacent opportunity in the realm of business intelligence.” Barely a month later, Avigilon stated that it had completed the acquisition of an additional 96 patents and 25 patent applications from another four vendors for US$13.37 million, bringing its grand total to 213 patents and 215 patent applications. This new batch related to video analytics capabilities such as emotional response measurement, behavioral analysis, anomaly detection and a great deal more. SP&T News recently spoke with Fernandes about all these acquisitions and why the company is putting so much faith in analytics as a driving force behind security. SP&T News: What are the major technology shifts occurring in surveillance today? Alexander Fernandes: Simply put, we see the future of the video surveillance industry to be seated in video analytics and putting intelligence in the video. There’s this ongoing trend of conversion from analogue cameras to HD cameras. Analogue sales are still quite strong and account for somewhere between 40-50 per cent of new sales. But they’re obviously on the decline. Avigilon is at the very forefront in leading the way of this convergence. We’re in a very different position over the next five to seven years — that’s the time frame we estimate for ultimately replacing all of these cameras as they get old. For most other manufacturers, whether analogue or digital or HD, [sur-

26 SP&T News • www.sptnews.ca

with Alexander Fernandes, Founder, President, CEO, Avigilon By Neil Sutton

veillance] is a post-incident tool. No one’s really watching all this video. There are tens, if not hundreds, of millions of cameras around the world, and there simply isn’t enough money or people to watch all this video. If something bad happens, most often they don’t even realize it until after the fact. It’s a great tool in being able to apprehend after the fact: a bomber, a terrorist, a mugger. There’s value in catching these people, but there’s even more value in being able to detect the bad behaviour or catch people on a wanted list before they even commit an offence. That’s really what the analytics is all about. It’s putting intelligence into the video system and automating the process. We firmly believe the future of the industry is in analytics. A year ago, we purchased VideoIQ, which we believe had the most robust, strongest video analytics technology in terms of products and source code. SP&T: What was the rationale behind your more recent patent acquisitions? AF: The rationale behind acquiring ObjectVideo and subsequently these other patents from four other video analytics companies is really to build the biggest intellectual patent portfolio, both in terms of technology that came from VideoIQ as well as all the patents related to that technology. We feel that today, we have the strongest portfolio and offering related to video analytics in the world. We have some core, fundamental patents upon which all other analytics are built upon. We feel we have the strongest video analytics offering. We have begun incorporating the VideoIQ technology into our Avigilon HD end-to-end platform. SP&T: How much of your decision to buy ObjectVideo was driven by the opportunity to earn revenue through its licensing program? AF: The royalty program is a secondary benefit — it’s a nice to have. Our business is selling security solutions; we’re not a licensing company. That’s not to say that we don’t intend to receive payments or give permission to others to participate or to commercialize technology that belongs to us, but that’s a secondary consideration. SP&T: How much of your development of analytics is focused on business operational benefits versus security? AF: It’s two fold. Our core business is

providing security solutions that incorporate access control, video, as well as analytics — and that’s made up of hardware and software and all the accessories needed. But with video analytics and all the data, it opens up a whole other adjacent opportunity in the realm of business intelligence. Think of it as big data beyond security applications — increasing visibility to operate efficiently, to do quality control. So, for example, in cargo and logistics, it could be used for tracking of vehicles or containers or other assets. In retail, there is a tremendous amount of information that, to a large extent, is being unused. If you think in conceptual terms, data becomes information and information, when it’s aggregated in a useable way, becomes knowledge and knowledge is power. SP&T: With a number of your competitors in the market being acquired by larger companies, what does that mean for the security landscape? AF: I think it’s inevitable, I think it’s a good thing. I think it’s long overdue. If you look at the security industry, it has been around for a very, very long time. To some extent, it’s a bit of an anomaly. It still hasn’t been consolidated. There’s been some moves, but I think there’s a lot more consolidation to be had yet. If you look at the plethora of manufacturers and providers, it just creates confusion and a lot of inefficiency. You don’t need 150 companies all doing more or less the same thing, servicing one market. It’s an interesting time in the market. It’s a growing market and it really touches everyone’s lives in one shape or another. Consolidation will simplify the purchasing process for end users. It should ultimately create efficiency and serve to eliminate a lot of the bottom feeders — the smaller companies that really aren’t

adding a lot of value but creating confusion, more than anything else. SP&T: What are the skillsets the industry needs to develop in order to capitalize on this wave of technology innovation? AF: It’s really about getting away from what I call the speeds and feeds and selling cameras by the pound. Rather than selling technology or widgets, what Avigilon is all about, and ultimately what the customers want, is solutions. If you think of it as an automobile, there’s obviously motor enthusiasts who get into the spark plugs and the horsepower . . . and what’s going on under the hood. But for the most part, what people want to do is get from A to B and when they switch on the ignition and push the accelerator, the car moves and when they push the brakes, the car stops. They don’t want breakdowns or unexpected interruptions. For the most part, people don’t really care what’s under the hood, so long as it works and it makes sense and it’s economical. SP&T: How much of your investments will pay off in the short term and how much is a long-term strategy? AF: It’s already paying off. In the short term it’s paying off, because people recognize that if they want to get the latest and greatest technology, they can buy it from us. People know that what they’re buying from us is the best and is also protected by our intellectual property portfolio. Long term, we feel we have the strongest video analytics portfolio in the world, both in terms of patents and in terms of technology. We’re in a very strong position to emerge as the market leader. The spend last year — the estimates are approximately US$15 billion in global spend, but it’s also growing. It’s projected over the next 24 to 36 months to exceed US$30 billion.

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