A&S #A118 Nov.2015 by Messe Frankfurt New Era Business Media Ltd. Taiwan Branch

CONTENTS 30

NOVEMBER 2015

MARKET DYNAMICS

Malaysia Sees Silver-Lining in the Long Term The Malaysian economy is going through a difficult phase and its security industry is worried about slower growth in the coming years. In the short term, things do look bad indeed. But this does not mean that its long-term potential and role as a prominent market in Southeast Asia can be denied, and it’s precisely this reason that continues to attract foreign players to this country.

PRODUCT EXPLORATION

OPEN

Hotel Keys Go Mobile Guest safety and hotel security are paramount concerns for all hotel operators. As such, access control through the use of electronic locks has become somewhat of a norm for most hotels. The industry is seeing a growing trend of using locks not merely as a security measure, but rather, as a means to streamline services, enhance convenience, and improve the overall guest experience.

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Wireless Locks Bring Flexibility to Electronic Access The many benefits of wireless locks are becoming more apparent as electronic access control continues to gain popularity. Without extra wires and cables, wireless locks can provide many different verticals with an electronic access solution that is not only more cost-effective, but allows for more flexibility as it is easier to implement and manage.

Contents................................P.14 Editor’s Note .........................P.18 Application Cases .................P.20 Products of the Month ..........P.24 Asia at a Glance.....................P.36 New Products ........................P.80 Show Calendar ......................P.84 Companies in This Issue ........P.86

Global Security Awareness Rises Due to Recent Incidents

a&s Asia, published by Messe Frankfurt New Era Business Media Ltd., is a monthly professional publication for channel players in the regional electronic security industry. It caters to importers, distributors, OEM/ODM searchers, systems integrators and other product purchasers on product sources and identifies developments in video surveillance, access control, biometrics, intrusion alarm, intercom/video doorphone, home automation, and other fields relevant to electronic security.

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ust around the publication date of this issue, France experie n c e d E u ro p e ’ s m o s t terrifying terrorist attack in the last 10 years, which killed 129 people and wounded over 300. Going back in the history of terrorist incidents in France, 2014 and 2015 have witnessed the most attacks, with the mass shooting at the satirical magazine Charlie Hebdo, which resulted in the deaths of 20 people and 22 injured. This year, the rise of the Islamic State (IS) militant group has caused many countries to strengthen their national security and safety measures, including Asia. In Southeast Asia, security threats also remain very high. At this time, how to provide the most updated security solution to prevent future disasters should be what we work on now. In this issue, we are also proud to present the Security 50 report and ranking for 2015. From this year ’s rankings, we can clearly see the shakeout of the current industry, which we highlighted in several of our past issues. This time, via Security 50, we are able to support our statements with actual figures. Thanks to the contributions from the top 50, we are able to have a clearer picture of the whole industry. Due to the commoditization of security products and the world expansion of some major Chinese brands, mostly in video surveillance, we are now seeing the consolidation of certain brands. This year, it was extra obvious.

However, consolidation doesn’t mean the security market is not growing. The market demand is still there, which is also driven by the numerous security threats, but I would say, the market needs something different from the past. In the past, a simple device could satisfy most needs, but now, customers might need a solution with some special technologies or customer support, such as video analytics, biometrics, facial recognition, or cloud service, to actually solve their problems. From the recent terrorist attacks around the world to our findings in the Security 50 report, it is clear to see the market needs effective security solutions to actually predict and deter crimes and attacks in the early stages. We hope to see more companies in the near future focus on developing innovative solutions, especially now as the world is under such a huge terror threat. Hope you enjoy this year’s Security 50 report. You can also find the report and ranking online, please check http://www.asmag.com/rankings/ or scan the QR code.

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Senior Consultant Consultant Executive Editor-in-Chief

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Editorial

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VIVOTEK IP Cameras Secure Cosmos Bank in India

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APPLICATION CASES

The Cosmos Cooperative Bank is headquartered in a building with a built-in data center and high-security safe in the center of Pune, India. Three key risk areas were considered for the security system: threats to people, to property, and to the image of the bank. The final security solution involved the installation of 132 VIVOTEK network cameras across the bank headquarters. They employed 103 ultra-mini fixed-dome network cameras featuring megapixel sensors in the interior spaces along with 29 bullet cameras with day/night functionality and IP67-rated weatherproof housing in the basement parking area. Lastly, four additional speed-dome cameras helped secure the headquarters’ periphery. These cameras allowed for a cost-effective IP surveillance system without additional accessories and empowered the security team with the ability to identify and recognize objects and number plates, even in the dark.

Xtralis VESDA-E Protects Largest Shopping Complex in Southern Hemisphere

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LILIN IP Surveillance System Increases Security in Prime Intelligence Agency of Bangladesh The Special Branch (SB) is the prime intelligence agency of Bangladesh which works on all strategic, operational, and tactical levels. They wanted to update their existing analog video surveillance system to a

high-resolution IP surveillance system after it was incapable of identifying the culprit of a bomb attack on their SB headquarters. Authorities decided to deploy Merit LILIN’s IP surveillance system at SB. Fifteen 20X Full HD PTZ cameras now cover the main gate of the SB headquarters in Malibah, Dhaka, while Full HD IP-based bullet cameras secures the whole branch. The system is being monitored and controlled from three different locations using NAV Client, and all video data is recorded for 30 days in the NVR using WD surveillance hard disk. Additionally, Elsy True Online UPS system ensures 24-hour uninterrupted power supply.

The Chadstone shopping complex in Melbourne, Australia, is the largest shopping center in the southern hemisphere. As part of its expansion project, a four-level glassroofed atrium was completed in the northern part of the complex. The high ceiling and the unusual curvature of the glass atrium presented a fire detection challenge. Mounting locations for fire detectors were limited and pre-determined to comply with management standards. VESDA-E VEU was the obvious solution because of its early and reliable detection and extended pipe lengths that can accommodate for the height of the ceiling. It is flexible enough for longer pipe runs and can provide detection from the

APPLICATION CASES

pre-determined mounting locations. Only four detectors were required and its centralized architecture allows for quick service and maintenance with no special tools needed. In addition, the detectors can be constantly monitored and managed remotely with mobile devices and an iVESDA application.

QNAP NVR and CMS Monitors Chinese Culture University Campus

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The Chinese Culture University (CCU) in Taiwan previously used a PC-based video recording software solution that was unstable and would shut down from time to time. CCU reached out to their systems integrator partner, Wergen Technology, who recommended an upgrade to a QNAP surveillance solution. CCU now have mini monitoring rooms to monitor nearby cameras. NVRs were installed in each room to provide HDMI local display and aid easy monitoring. Camera videos with D1, 1.3M, and 2M are now recorded for one month, while QNAP RAID 5 is used to protect the footage from possible hard disk crashes. At the main control center, video input from the NVRs are centralized, monitored, and managed by QNAP central management software. Bandwidth consumption between each mini monitoring room and the main control center is effectively

controlled as the system allows users to choose a smaller video stream. All the devices are connected by a dedicated gigabit LAN environment, ensuring no interruptions from other network services.

Axis Solutions Aids Effective Central Monitoring for Safexpress in India Safexpress, one of India’s leading companies in supply chain and logistics services, has a warehousing space of over 8 million square feet. Before, they only had analog cameras installed at a few sites which yielded poor quality video footage and couldn’t be centrally monitored. The primary objective then was to have a centralized monitoring system to keep track of remote warehouses across India and provide high-resolution images and video. The company decided to install over 150 Axis Communications network cameras in warehouses across India which could be centrally monitored. The cameras also provided high-resolution video, enabling authorities to monitor minute details at the warehouses. As the entire solution is based on IP cameras, Safexpress was able to use the existing network. The company is planning to add more Axis cameras to monitor all the facilities and offices in the near

future and they will be able to do so without installing any additional IT network infrastructure.

Salto’s Keyless Smart Access Solution Secures Australian Public Facilities The Infrastructure Services Department of Randwick City Council, in Sydney, Australia, was finding it time-consuming to maintain and secure a number of community centers, parks, and public toilets which all used mechanical keys. Ongoing maintenance was costly, especially if keys were lost, necessitating the changing of locks to maintain security and sorting which keys fitted which door. The Council went with Salto System’s keyless smart access solution and has now secured over 50 doors with a mix of online wireless electronic lock handle sets, cylinder locks, and electronic padlocks. Salto locks allows the council to control access to every door and have a full audit trail. They did not need to cable or hard wire to individual doors which delivered substantial dollar savings.

TS, founded in 1998, has proven itself as a leader in providing fiber optic solutions, boasting a diverse, comprehensive portfolio that includes managed fiber switches, media converters, and CWDM (coarse wavelength division multiplexing) solutions. In recent years, the company has realized the huge market potential for PoE and has set its eyes on PoE products. According to Antony Chen, President of CTS, PoE has become an increasingly popular method for delivering power to networked devices. “We’re definitely seeing more and more smart and energy-efficient security devices that receive both power and data from one Ethernet cable. This is in contrast to the past where you need to run a separate cable for power,” he said. “The delivery of power and other signals on one cable will be the trend, and this is something we’ll be focusing on.” The current standards for PoE switches include IEEE 802.3at/ af, which supply 15.4 and 25.5 watts, respectively, on each port. Yet right now a new standard is in the making — bt — which specifies 60W power delivery from each port. This is exp pec ecte ted d to t pow ower er up evven en mor oree he heav a yav y du duty tyy sec ecur uritityy

devices, such as speed dome cameras, and further drive the growth of PoE, Chen said.

NEW PoE BUSINESS To seize PoE’s growth opportunity, CTS has established a new PoE business called iConnectivity, with the brand name of iConnectron. Both commercial and industrial applications are available. Products include four- to eight-port, hardened PoE switches for industrial applications, as well as multi-port, rack-mount products for server room use in commercial applications. Next year, the company will further roll out 48-port products for commercial use. Commercial or industrial aside, Chen states that the company’s real focus is on differentiation, setting itself apart from standard, commoditized products that are out in the market. For example, CTS has a 24-port commercial-grade PoE switch with a 500W power budget, as opposed to similar products in the market with just 200W. “Say you have a 24-port product and need 30W from each port. p That translates into a total power budget of 720W 72 0W,, w which would incur a higher price,” said Chen. “Our

by CTS

ron on PoE:

ize and Connection Technology Systems (CTS), already an established provider of fiber optic solutions for home and ICT applications, has now moved into the power-over-Ethernet (PoE) field, providing customized, value-added products that deliver power to security devices. BY William Pao

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position is very clear: delivering a solution that customers need, with a price that is more balanced and reasonable.”

POWER REDUNDANCY AND MANAGEMENT But for CTS, the biggest differentiator is power redundancy and management, which the company has already had a lot of success with on its non-PoE products. Now, CTS wants to replicate that success on its PoE devices. “We want to make sure all our products can continue to deliver power in the event of a power outage. This can be done by way of battery, for example those from motorcycles or cars,” Chen said. “A battery can either be built-in or attached from the side of the switch. For certain industrial applications, the switch comes with two power inputs, one from the regular power source and the other from a backup source. Power redundancy and uninterrupted

supply is an area that we put a lot of emphasis on.” Further, power scheduling and smart distribution functions will also be included. “The switch can be set so that it turns off automatically after 10 p.m. It will also determine which ports are more important based on user behavior, and make the necessary prioritization. This way, in the event of a power shortage, the ports that are prioritized get the power first,” Chen said. All products go through stringent testing procedures in CTS’s own laboratory for quality assurance. “Some of our products lie in chambers for six months under extreme conditions. If they can withstand those conditions for six months, then they can work in regular conditions for ten years,” he said.

TARGET CUSTOMERS AND REGIONS Right now, CTS deals mostly with security systems integrators with PoE demands. “These SIs see security installation as a major source of revenue and have developed expertise in installing cameras, access control, and other devices in schools, retail spaces, and offices,” Chen said. “More recently, they have also entered smart home, building automations, and digital signage

We enter a market and find out what solutions local customers really need, and customize our products to those needs. This way we create brand awareness and retain customers. Antony Chen, President, CTS

a migration from analog to IP video surveillance is seen. “For them, PoE would be a cost-effective solution. In the era of analog-based CCTV, you need to run power lines along with the coaxial cable. With IP-based video surveillance, you can just run an Ethernet cable, and the power issue is solved,” he stated.

LOCALIZATION According to Chen, the company strives to be the biggest or second biggest player in whatever market it goes to. In fact, in terms of CTS’s fiber-to-the-home solutions, it already ranks within the top two in countries such as Sweden, Norway, and India. The key to achieving a leadership position, according to Chen, is product and service localization,

Customize segments to widen their presence. And their demands for PoE are very clear.” However, dealing with these installers has its share of challenges, as most of them already have their own PoE suppliers but don’t know the value of having good PoE products. To demonstrate what good PoE solutions can do, CTS is looking for certain segments with special customization and bespoke demands. “We’re trying to find certain market niches that can’t be satisfied with commoditized products,” Chen said. As for the regions CTS will distribute its PoE products, it will first target the Middle East, due to its mature IP technology, solid network infrastructure, and unrivaled software capability — not to mention a booming constructions market with security installation needs. “The local customers are willing to pay for something that’s high-quality, and once you establish a good relationship with them, they will keep coming back,” he said. Afterward, the company plans to expand westward to Europe. In fact, PoE is ideal for markets such as the U.K. wheree

tailoring the company’s solutions and offerings to the taste, demands, and needs of local customers. “We enter a market and find out what solutions they really need, and customize our products to those needs. This way you create brand awareness and retain customers,” he said. “For example, there are users who demand just online connection, versus users who are into IPTV. For the latter group we need to sell them hardware that optimizes bandwidth usage to enhance the viewing experience. That’s where we can differentiate, selling value-added solutions instead of just selling the hardware itself.”

FUTURE PROSPECTS BRIGHT Beginning as a supplier of ICT solutions, CTS has moved into the PoE arena, seeking to deliver value-added products to certain markets and customers with unique needs and demands. As PoE becomes an increasingly popular power supply option for security players, CTS, with its clear strategy to differentiate, customize, and localize, it is all but expected to achieve success in this field.

Malaysia

Sees Silver-Lining in the

Long Term

BY Prasanth Aby Thomas

The Malaysian economy is going through a difficult phase and its security industry is worried about slower growth in the coming years. In the short term, things do look bad indeed. But this does not mean that its long-term potential and role as a prominent market in Southeast Asia can be denied, and it’s precisely this reason that continues to attract foreign players to this country.

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t’s definitely not the best of times for the Malaysian economy. The oil prices are down, its major trading partner, China, is struggling, and politicians at the highest level are squabbling over corruption allegations. It’s no surprise then that local businesses across sectors are concerned about the future. At least in the short term there don’t seem to be any reasons to cheer. But being a young market, the Malaysian security industry’s growth potential in the long run is solid. According to Verghese Thirumala, MD of Maxitulin, who quoted a research report, the total value of Malaysian safety and security market is estimated at US$2 billion and is expected to increase in the future. “The year 2015 was robust for security though many claim it was a tough year. Market is probably growing at double digit,” Thirumala said. “For my company, growth was 25 percent over the previous year. Network solutions in both access control and video surveillance are growing rapidly, at least by 25 percent in each category.” These numbers speak for themselves, indicating the growth potential of the security industry in the country. What makes things even more attractive for foreign companies is that Malaysia, with its multilingual population, is an ideal place to serve as a launch pad to other emerging markets in Southeast Asia.

LOCAL DISTRIBUTORS CAUTIOUS ON SHORT-TERM Distributors are considered some of the worst-hit when it comes to an economic slowdown. This seems to be quite true in Malaysia, where several local distributors maintain a rather pessimistic view of their short-term prospects. Most of them admitted their desperation at the dire straits, stating the future could take any direction. “It’s a very challenging time for the Malaysian market,” said Dato’ Avent Yap, MD of AAC Distribution. “The economy is looking bad, overall market is slowing down, and the currency has dipped much more than anyone expected. I’m yet to see light at the end of the tunnel.” Indeed, the national economic projections so far have been bleak, with the World Bank forecasting a 4.7-percent growth for the year, way lower than the 6 percent recorded in the previous year. Only by 2017 the World Bank expects the economy to see some significant activity, when it is expected to expand 5 percent. This fragile macroeconomic picture is compounded by a political crisis. The country’s Prime Minister Najib Razak is accused of corruption, prompting protests and calls for his resignation. Ryan Tan, Executive Director at Entry Pass explained this has complicated business outlook for the industry. “We are affected by the political instability and the currency depreciation that has created uncertainties about the future and worries that business may be affected,” Tan said. Bryan Liew, Marketing Director of DotCom Engineering echoed similar sentiments, adding that the current year

poses several challenges for the industry and end users. “This year might see an up and down in overall revenue,” especially in the fourth quarter," Liew said, giving an approximate idea of the seriousness of the situation.

ONGOING PROJECTS AND DEMAND — CALM BEFORE THE STORM? The economic concerns cannot be ignored, but for most local distributors and systems integrators (SI) the issue is not as much about this year as it is about the coming years. This is in line with Thirumala’s comments mentioned earlier. Tan said that the current year is still better than the previous year as there is still revenue from the businesses of last year and the year before that. “Right now what we can see is that the business is continuing to grow, compared to the previous year,” he said. Renee Goh, Manager for Marketing and Communications at Sensorlink said that the year 2015 has actually seen more business enquiries, albeit at a slower pace. “Because of the economic concerns a lot of end users are cautious on their budget, but there are still business enquiries,” Goh said. AAC’s Yap further added that most of the Malaysian security industry is in the outdated analog technology and the market is still in the transition stage to IP. This has created some demand which the distributors and SIs are trying to exploit. Yap said his company’s sales have largely remained flat over the year. Such opinions aside, some distributors pointed out that the real reason of growth this year is a recent change in government policy and not any rise in market demand.

Malaysia’s economy still depends on oil to a large extent, and the recent dip in oil prices has hurt growth. Hassan Uddin Ahmed, International Sales Manager, MEA, Pyronix

Dato’ Avent Yap, MD, AAC Distribution

Renee Goh, Manager, Marketing and Communications, Sensorlink

Marc Chan, Business Development Manager, Security, APAC, FLIR Systems

Abhay Joshi, Business Manager, International Security Sales, Matrix Comsec

SECURITY 50 2015:

SPECIAL R EPORT ..............................................................................................................................

FINDING THE

RIGHT FIT AFTER INDUSTRY SH A By Jill Lai

a&s reviews 2014 & 2015 financial reports of 50 worldwide leading security manufacturers. Global market demand is still high; however, multiple factors have caused the security industry to shake up. This year’s report shows how Chinese companies have risen and how its opponents are ready for the competition. The new market order is soon to come. Sponsors

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AKE-UP

lobal market demand for security equipment reached another historical height in 2014 and 2015. Terrorist attacks and civil unrest keep pushing end customers in various market sectors to invest in security equipment for safer environments. According to IHS 2014 report, the global market size of video surveillance and access control was estimated to be US$15 billion and $3.5 billion in 2014. Furthermore, these markets are forecast to grow to approximately $23.6 billion and $4.9 billion annually by the end of 2018, respectively. The global demand for security remains; however, multiple factors have remodeled the security industry landscape. Two big Chinese companies have been leveled up to the international stage, while their opponents have been left behind or forced to branch out. Meanwhile, the changeable global economic and political status has also made future growth for many companies uncertain.

TOP 50 GROW, SHADOWED BY MULTIPLE FACTORS The top 10 companies with the highest sales revenue in 2014 remain the same. The biggest change is brought by Hikvision Digital Technology and Dahua Technology, both of which grew quite enormously. Hikvision grew 57.5 percent moving up in the ranks to number 2, replacing Bosch Security Systems. Dahua grew 35.5 percent and surpassed the Global Technologies Division of Assa Abloy to rank fifth. Safran and Assa Abloy still maintained healthy growth with their new innovations for access control and high demand from national projects. On the other hand, Samsung Techwin weakened a bit in 2014. After the acquisition this year, the companyâ&#x20AC;&#x2122;s Korean operations was renamed as Hanwha Techwin. Axis Communicationsâ&#x20AC;&#x2122; ranking was influenced most from the growth of Tyco Security Products and FLIR Systems, rounding out the top 10. Looking at the financial reports of the top 50 companies in 2014, companies maintained mild growth but a major reduction of net profit was observed in many companies in 2014 and also the first half of 2015. The

We see a rising need for highly advanced products that enables interconnected solutions. The Milestone Husky is an advanced futureproof intelligent NVR that enables our partners to deliver the perfect solutions asked for by our mutual customers. Peter Biltsted, MEA Director, Milestone Systems

SPECIAL R EPORT .......................................................................................................... S

The security industry has had quite an eventful year so far, with several incidents prompting increase in demand for integrated solutions. The market has also seen signs of consolidation, with a number of large mergers and acquisitions. With new technologies like the Internet of Things and initiatives like smart cities, the industry looks poised for more activity in the coming years. By Prasanth Aby Thomas

GLOBAL

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RUSH TO BE SMARTER AMID RISING SECURITY CONCERNS 52

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mong the numerous sentiments that have floated across the globe this year, a significantly common theme was “fear.” To be more precise, an increase of it. A quick scan of global media reports over the year would show reasons for it too. From the rise of terrorism and war-induced migrant crisis to modern technological developments that have spiked privacy concerns, 2015 has seen the world struggling to come to terms with the fact that security is indeed an issue that has to be dealt with. This is evident in market analyses too. A recent report from Transparency Market Research showed that the global physical security market will expand at a healthy CAGR of 14.9 percent from 2013 to 2019, driven by growing security concerns around the world and accelerating budget allocation for physical security by governments.

Tristan Haage, CSO, Mobotix

Hagai Katz, Senior VP, Business Development and Marketing, Magal Security Systems

INCREASED SECURITY CONCERNS A CUMULATIVE IMPACT The security industry is not oblivious to the rising safety concerns and its potential to boost market demand. Major security solutions providers, who have all seen their revenues rise this year, acknowledge the fact that there is an increased awareness on the need to be protected that has boosted demand for sophisticated security systems. “Certainly the continued high threat level in many of our major markets such as the U.S., Middle East, and Europe is resulting in the continued review of security policies and systems, particularly within the corporate enterprise and public sector spaces,” said Brian Song, MD at IDIS Europe. “This is compounded by many high profile cyber-attacks, and so organizations are looking for a very high Incidents such as the migrant crisis in Europe have spiked global demand for certain specific security solutions.

William Ku, Spokesman and VP, Brand Business Division, VIVOTEK

Leon Langlais, Senior Director, Growth Markets and Regional Strategies, Tyco Security Products

level of resilience from their network surveillance solutions.” Hagai Katz, Senior VP of Business Development and Marketing at Magal Security Systems listed the concerns in more concrete terms. He pointed out that issues range from serious problems like the continued militant activity in African countries, immigration concerns in Europe, and terrorist concerns in the Middle East to more isolated incidents like a drone intrusion into the White House and escape of a drug baron from a Mexican prison. William Ku, Spokesman and VP of the Brand Business Division at VIVOTEK agreed. “European migrant crisis and ISIS terrorism increase the new infrastructure and new government projects in the European and Middle East countries.” Others point out that it is in fact difficult to pick up individual events that have sparked a change in the market, ascribing it more to an aggregated effect of fragmented incidents across the globe. “While no single event can be cited as the cause of major shift, we are all well aware that unfortunately, the world is becoming more insecure due to a range of political, economic, and cultural factors,” said Bodil Sonesson, VP of Global Sales at Axis Communications. “But, surveillance technology has also been improving, with better quality images, smart analytics, etc., thereby helping society to better monitor environments, solve incidents, and prevent attacks.” But it’s not just increased or improved security solutions that are in demand. Along with security concerns, most customers have to contend with the weak global economic outlook; hence, what they look for is more customized solutions that can offer better ROI.

SPECIAL R EPORT .......................................................................................................... S

The Internet of Things (IoT) has become quite a phenomenon, as more and more networked devices are connected to the Internet and generate valuable data for users. Security players, meanwhile, have detected this trend and are adapting themselves to IoT, making products that are more networkable, integrative, and user friendly. In this article, some of our Security 50 companies discuss their ideas and thoughts on IoT, and how they have responded in the midst of the IoT craze.

IoT

By William Pao

SECURITY PLAYERS OPEN THEIR ARMS TO

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IoT

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he term Internet of Things (IoT)was first coined by British entrepreneur Kevin Ashton back in 1999 to describe the concept of a globally connected network of RFID devices. Today, the connected vision has become quite a reality as IoT has found its way into different parts of our lives, from safe cities to smart buildings. In fact, according to a recent forecast by Gartner, the number of connected devices in use will reach 25 billion by 2020.

Arjan Bouter, Head of Sales, Nedap Security Management

INTELLIGENCE

SECURITY AND IoT What does all this mean for security players? For starters, physical security is intricately tied to IoT — this is especially the case after security’s migration to IP, which allows devices to be all integrated on the Internet. “The security product is a part of IoT,” said Allen Liu, Product Manager at Dahua Technology. “Video surveillance, mobile devices, access control, and alarm systems are all tied to loT, and we are surrounded by them in our daily life.” “Security devices will be tied to the IoT as ‘sensors’ in the same way that other devices like phones, cars, and refrigerators are sensor sources — all bringing data to inform our lives,” said Lars Nordenlund Friis, VP of Incubation and Ventures at Milestone Systems. “The single common thread with all these technologies is connected components working together as an efficient, integrated whole.” Integrating various networkable devices on the Internet brings many benefits. These include enhanced security, better intelligence, and improved user experience.

percent of people who are aware that someone is watching them typically stop whatever wrongful activity they are engaged in. A horn speaker can make intruders or suspicious characters very aware that they are being observed.”

Martin Gren, Co-Founder, Axis Communications

Allen Liu, Product Manager, Dahua Technology

IoT brings much more to security than protecting lives and assets. The amount of good data generated by security devices can be extracted and analyzed to drive business intelligence. In retail, for example, cameras installed in stores and supermarkets have found their roles expanding from preventing theft to studying consumer behavior — what aisles shoppers visit more frequently or which way they look at a particular spot. This allows operators to make sales and marketing decisions accordingly. “To be successful, a deployment using the IoT needs to do more than just collect a data. It needs to have a concrete way to

ENHANCED SECURITY

When integrated, video surveillance, access control, intrusion alarms, and other systems add layers to security, making premises less vulnerable to intrusion and threats. “Traditional access control systems can be cracked by forged IC cards or fake fingerprints. Now security industry pays more attention to integrate video surveillance with burglar alarms, access controls, and other parts together,” Liu said. “With a camera that is only performing video surveillance it is limited because you really can’t talk to people. But if you add an integrated horn speaker, you can actually communicate to a person — for example, if someone is loitering, or in an area they shouldn’t be, or otherwise acting suspiciously. And you can do it through a single system that manages the video and not have to switch between different systems or interfaces,” said Martin Gren, Co-Founder of Axis Communications. “A recent study says that 74

Security devices will be tied to the IoT as sensors, all bringing data to inform our lives.

HOTEL KEYS GO MOBILE OPEN

BY Emily Lin

NOVEMBER 2015 Ć&#x201D; www.asmag.com

Guest safety and hotel security are paramount concerns for all hotel operators. As such, access control through the use of electronic locks has become somewhat of a norm for most hotels. The industry is seeing a growing trend of using locks not merely as a security measure, but rather, as a means to streamline services, enhance convenience, and improve the overall guest experience. 66

ELECTRONIC LOCKS FOR HOTEL ACCESS CONTROL One inherent feature that all hotel security systems possess is access control, the ability to restrict access and, in essence, control who can go in and out of the various areas in the property. Hotels traditionally turn to locks to fulfill this basic function, installing mechanical and electronic locks to doors both at the front and back of the house. Presently, it appears that electronic locks are dominating the field. IHS forecasted that the global market for electronic locks is set to surpass US$1 billion in 2015 and according to Vegard Prytz, VP and Regional Director of APAC at Assa Abloy Hospitality, electronic locks accounts for over 80 percent of the market in Asia and has an annual growth of approximately 6.5 percent. Since these locks can enhance security and provide the framework for future integration with other systems, many hotels consider this as a worthwhile investment in their property.

Hotel Credentials The majority of hotels are still using magnetic stripe readers (magstripes) as the authentication method for unlocking locks but radio frequency identification (RFID) technology is growing in popularity. Based on Assa Abloy’s figures, RFID locks makes up around 35 percent of locks in the current market and shows a yearly growth of 4 percent. “There is no difference in preferred technology between the different regions, but Asia was much earlier in adopting RFID technology,” Prytz added. Although many of the existing security systems employ magnetic stripe card systems due to their low cost, issues such as demagnetization and shorter lifespan resulting from wear and tear makes it a less attractive option for higher-end hotels. “With so many manufacturers of RFID locks, with varying levels of functionality and performance, most properties can find one that meets their budget needs; consequently, circa 95 percent of the hotel projects that are four and a half stars and above use RFID,” said David Rees, VP of APAC at Salto Systems Asia.

ELECTRONIC LOCKS USED IN MOBILE KEY SOLUTION Hotel operators are continuously finding ways to enhance the overall experience of the guest. One major hassle guests have to go through is the long and tedious process of checking in at the reception area. This has led to the development of the mobile key technology, which according to Rees, is the number one trend right now and is on everybody’s agenda. “More than ever hoteliers are focused on the ‘end-to-end’ guest experience to drive brand loyalty, offering quicker and more efficient service delivery to the guest. Utilizing innovative mobile guest room key technology as part of their on-line and app strategy sends a strong message about being ‘smart’ and customerfocused to prospective guests.” Industry research results also showed that approximately 70 percent of travelers would prefer to stay in smartphone-

Vegard Prytz, VP and Regional Director, APAC, Assa Abloy Hospitality David Rees, VP, APAC, Salto Systems Asia Jeffrey Wong, Assistant Product Manager, UTC Climate, Controls & Security

enabled hotels, while more than 70 percent said that they would choose to use their smartphones to check into the hotel if given the option to do so. With the successful introduction and resulting wide use of mobile app-based boarding passes, companies believe that mobile keys would achieve the same results in the hospitality field. “Major hotel brands have publicly stated the importance of mobile key initiatives. If the hotel industry follows the lead of the airline industry, mobile key technology could transform the industry,” said Jeffrey Wong, Assistant Product Manager of UTC Climate, Controls & Security. An example of the mobile key technology at work in Asia can be seen with Assa Abloy’s SPG Keyless system, which was developed for Starwood Hotels & Resorts Worldwide, a multi-national hotel and leisure company. It was launched last year in select hotels worldwide, including Beijing, Hong Kong, and Singapore; and the hotel conglomerate aims to install the system in all of their 150 global hotels. Using this system, registered members use an app on their phones to bypass the queue at reception and go straight to their rooms. A mobile “key,” in the form of an encrypted code, is sent to their phone via the Internet and used to directly gain access to the room through their phones’ Bluetooth function which can easily be done by holding the phone to the lock.

Picking the Right Hotel Lock Although aesthetics is an important consideration in hotel lock selection, functionality is still the utmost priority for hotel operators. “The most important thing is the security the lock provides; there are several critical parts in a lock as well as possibility to hack the electronic in the locks. The other important part is the quality of the lock; this is for the guest convenience since there is nothing more annoying than a situation wherein you cannot enter the room due to a malfunctioning key card,” said Vegard Prytz, VP and Regional Director of APAC at Assa Abloy Hospitality. Electronic locks should also be compliant with fire safety and functional test regulations that varies depending on the country or region. The location and function of the lock should also be taken into consideration, “A guestroom door lock must ‘dovetail’ into the overall design aesthetic of the hotel; however, storerooms, meeting rooms, offices, passage doors, staff lockers, etc., should have a product designed ‘fit for use’ installed, which should also be able to be operated with the same key as the guestroom lock,” commented David Rees, VP of APAC at Salto Systems Asia. Choices with regards to lock finish and design are quite subjective, wholly dependent on what the client wants or needs to complement the overall look of the property but some generalities can be made. “In Asia, the size of the lock should be as small as possible and even hidden in the door where only the lever is visible. There is also higher focus on the lever design,” Prytz added. As lock designs progressively get more minimal and streamlined, it is important not to lose sight that guests need to operate them, almost without thought. “On top of its security function, a guestroom lock should be discreet and intuitive to use, so that a guest enters their room virtually without pausing,” said Rees. “If I have to stop and wonder where to ‘badge’ then the lock has failed the ‘practicality’ test.”

Systems integrators working in the public transportation vertical can choose between fiber optics or wireless networks to transfer information between stations, mobile units, and control centers. However, budget and logistics constraints make a hybrid solution the most practical way to go.

etwork Transmission

for BY Israel Gogol, Freelancer

Public Transportation —

Combining Fiber and Wireless

NOVEMBER 2015 Ɣ www.asmag.com

ublic transportation is a massive user of surveillance technology. A quick look at a metro station for example will find cameras monitoring platforms, gates, escalators, elevators, etc. This footage is used to ensure the fast flow of traffic and commuters’ safety. Oftentimes, the discussion around surveillance systems for public transportation deals with the choice of the right camera, or choosing video analytics that can detect a person on the tracks or a slip-and-fall event. The challenges of transferring mass amounts of information from stations to the operations control center often stay in the background. In reality, the transfer media is not only a critical choice for the system, but also a costly one that requires detailed attention. The challenges in designing a scalable network for public transportation include designing a reliable, stable, and secured network. When surveillance systems are part of the network, having enough bandwidth and network load sharing are also important. “Between stations and terminals, there is a huge network designed for diversified systems’ data to be transmitted and exchanged; the requirements for network security and reliability greatly affect the total cost of the network system,” said Rich Shih, Senior Sales Manager at OT Systems. “The requirement for a network topology that offers faster recovery options in the millisecond level (so that in case of a malfunction the system is not affected too much) are getting more and more popular. Usually public transport operators

The transfer media is not only a critical choice for the system, but also a costly one that requires detailed attention.

Tom Larson, Director, Sales & Engineering, BCD Video

Umberto Malesci, CEO and Co-Founder, Fluidmesh Networks

Rich Shih, Senior Sales Manager, OT Systems

—

go for the Cisco network recovery protocols (whose response time is seconds) or choose a proprietary fast recovery ring topology for mission critical system applications.”

CHOOSING THE RIGHT ARCHITECTURE There are two basic architectures used in public transportation. The first is a distributed architecture — video footage is housed in a server on-site and then transferred to a central location. The second is centralized, all the data is relayed to a central location. In reality, many times there is a mix of the two, depending on the circumstances of each project. Usually, a centralized solution is considered ideal, connecting all the cameras and pulling all the video feeds to a central location through a high throughput connection with high availability and high redundancy storage solution. However, a centralized solution requires high throughput and high bandwidth. The distributed architecture can overcome bandwidth constraints as the recorders and servers are located in the stations. The central control center can then opt for viewing the footage through Internet connection or cellular connection which doesn’t require as much bandwidth as streaming the information to the center. Fiber and wireless technologies, or a combination of the two, are used to transfer information from station to station or from mobile units (e.g., rail car or a bus) to the control centers. Fiber optics is used in installations that have to cover large distances or where high bandwidth capacity is needed. Albeit providing secure and reliable data transfer, the costs and work associated with laying this infrastructure are relatively high. On the

Communicating With Mobile Units The expectations from public transportation networks are similar to those from other infrastructure projects: network transmission should provide failover capability, redundancy, and scalability for future enhancement. However, apart from stations, video monitoring also takes place on mobile units such as busses and metro cars. This poses a unique challenge to the public transportation vertical — how to get the information from the mobile centers to the control rooms. “Our wireless Ethernet products have been used on busses and trains as a link to upload surveillance video. The way it works is the surveillance video is stored on the bus or train on an onboard digital video recorder. When the bus or train pulls into a terminal or station, the remote wireless endpoint syncs with the central control center access point and the data is uploaded to the control

Louis Chen, Technical Team Manager, Sales Dept., EtherWAN Systems

center. All this can happen automatically, many times during the day at stations along the route,” explained Frank Haight, VP of Marketing at ComNet. Since trains and busses Frank Haight, VP, might only make Marketing, ComNet brief stops at stations before continuing on, there is a need to use self-managed switches with high-throughput. “These switches can aggregate incoming video data streams making them an easier upload to the central control center. The key is to manage the network. The use of these types of switches prevents flooding the network and keeps the important video records intact,” added Haight.

other hand, wireless solutions do not require human intervention. There is no requirement for a physical connection. The down side of wireless solutions is that they require a higher degree of expertise on the side of the systems integrator and are also more prone to outside interference. “The traditional systems integrator does a poor job of putting wireless infrastructure, so for that you need a specialized company,” explained Tom Larson, Director of Sales & Engineering at BCD Video.

BUDGET IS THE MAIN CONSTRAINT

Long Chang, Associate VP, Sales & Marketing Div., Yoda Communications

The biggest challenge in implementing the ideal infrastructure needed is budget. “Transportation boils down to what is the transfer media, fiber optic or wireless, because this piece of the infrastructure is extremely expensive compared to cameras and storage. The biggest problem in connecting stations one to the other is getting the money to put fiber in place,” Larson explained. Despite the constraints and problems of connecting systems to already existing fibers, Larson stated that cities that had the foresight to invest in fiber infrastructure 15 years ago are “ahead of the game” today. “Fiber infrastructure is where you need to go. Down the road we see more fiber optics being deployed in the US market. We see a shift of providers to much larger bandwidth. As we continue to scale up the connection eventually we will be able to stream the video back at a reasonable rate,” Larson said. Although a buried cable system can serve for many years, making changes to the system is difficult and involves a lot of complicated work.

Companies in This Issue Products of the Month • SALTO SYSTEMS • SECURITECH • ZKACCESS Cover Story • CTS Market Dynamics • AAC DISTRIBUTION • DOTCOM ENGINEERING • ENTRY PASS • FLIR SYSTEMS • GLOBAL TOP TECHNOLOGIES • MATRIX COMSEC • MAXITULIN • PANASONIC MALAYSIA • PYRONIX

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• SENSORLINK • STRATEL • VMNETWORK Special Feature (Security 50) • ALLEGION • AVIGILON • AXIS COMMUNICATIONS • COMMAX • DAHUA TECHNOLOGY • EVERFOCUS ELECTRONICS • EVERSPRING INDUSTRY • IDIS EUROPE • MAGAL SECURITY SYSTEMS • MILESTONE SYSTEMS • MOBOTIX • NEDAP SECURITY MANAGEMENT • SYNECTICS

• TYCO SECURITY PRODUCTS • VERINT SYSTEMS • VICON INDUSTRIES • VIVOTEK Vertical Market • BCD VIDEO • COMNET • ETHERWAN SYSTEMS • FLUIDMESH NETWORKS • OT SYSTEMS • YODA COMMUNICATIONS Product Exploration • ASSA ABLOY HOSPITALITY • SALTO SYSTEMS • UTC CLIMATE, CONTROLS & SECURITY

Product Exploration

Market Dynamics

VISITORS ENTRY CONTROL

CHINA

Special Feature

Vertical Market

2015 YEARLY REVIEW/2016 PREVIEW

CITY SURVEILLANCE

ADVERTISER INDEX *The index is provided as an additional service. *The publisher does not assume any liability for errors or omissions.

SURVEILLANCE PAGE NO.

ADVERTISER

MAJOR ITEM

COUNTRY

E-MAIL

AXIS COMMUNICATIONS AB

NETWORK VIDEO SOLUTIONS

SWEDEN

contact-sap@axis.com

5, 7

DAHUA TECHNOLOGY CO., LTD.

SURVEILLANCE

CHINA

overseas@dahuatech.com

DYNACOLOR INC.

IP CAMERA / NVR

TAIWAN

info@dynacolor.com.tw

FLIR SYSTEMS CO., LTD.

SURVEILLANCE

HONG KONG flir@flir.com.hk

FUZHOU FRAN M&E TECHNOLOGY DEVELOPMENT CO., LTD.

DOME COVER

CHINA

sales@fjsmt.com

GKB SECURITY CORPORATION

IP CAMERA / NVR / HD SDI CAMERA / HD SDI DVR

TAIWAN

sales@gkbsecurity.com

HANGZHOU JUFENG TECHNOLOGY CO., LTD.

AHD DVR / CAMERA / IPC / NVR / HOME SECURITY

CHINA

oversea_sales@jufenginfo.com

HDPRO CO., LTD.

CCTV

KOREA

sales@hdprocctv.com

9, 13

HIKVISION DIGITAL TECHNOLOGY CO., LTD.

SURVEILLANCE

CHINA

overseasbusiness@hikvision.com

IDIS CO., LTD.

SURVEILLANCE

KOREA

sales@idisglobal.com

INFINOVA

CCTV

HONG KONG sales-hk@infinova.com

MEERE COMPANY INC.

CAMERA

KOREA

sales@cube-eye.co.kr

MILESTONE SYSTEMS

SURVEILLANCE

DENMARK

sk@milestonesys.com

INSIDE BACK COVER

PANASONIC SYSTEM NETWORKS CO., LTD.

VIDEO SURVEILLANCE

JAPAN

28, 29

PIXELPLUS CO., LTD.

SEMICONDUCTOR

KOREA

kahn@pixelplus.com

QNAP SYSTEMS, INC.

NVR / VMS

TAIWAN

nvr@qnap.com

RIFATRON CO., LTD.

DVR

KOREA

contact@rifatron.com

INSIDE FRONT COVER, 1

SAMSUNG (HANWHA TECHWIN CO., LTD.)

CCTV / DVR

KOREA

apriler@samsung.co.kr

64, 65

SEAGATE TECHNOLOGY LLC

STORAGE

SINGAPORE

apj.sales.enquiry@seagate.com

2, 3

SONY CORPORATION SEMICONDUCTOR GROUP

SEMICONDUCTOR

JAPAN

SONY ELECTRONICS ASIA PACIFIC PTE. LTD.

NETWORK MONITORING SOLUTIONS

SINGAPORE

pro.info@ap.sony.com

VICON

SURVEILLANCE

USA

sales@vicon-security.com

WEBGATE INC.

DVR

KOREA

support@webgateinc.com

XIAMEN LEADING OPTICS CO., LTD.

CCTV LENS

CHINA

sales@leadingoptics.com

ZHEJIANG DALI TECHNOLOGY CO., LTD

CCTV

CHINA

sales@dali-tech.com

ACCESS CONTROL PAGE NO.

ADVERTISER

MAJOR ITEM

COUNTRY

E-MAIL

GIGA-TMS INC.

RFID MODULE / LOCK / READER

TAIWAN

promag@gigatms.com.tw

BACK COVER

HID GLOBAL

CARD, CARD READER

USA

asiasales@hidglobal.com

SUPREMA INC.

FINGERPRINT

KOREA

sales@supremainc.com

VOIM TECHNOLOGIES INC.

FINGERPRINT

KOREA

sales@ten-bio.com

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