Asia No.116 September by Messe Frankfurt New Era Business Media Ltd. Taiwan Branch

34 THAILAND Security Demand

MARkET DyNAMiCS

Opens Up

Since the military government took over in 2014, expectations for Thailand have been optimistic. Unfortunately, the economy has yet to benefit from the efforts the government has taken, as the country sees project delays and a recent bombing tragedy that took the lives of 22 people. BY Lisa Hsu

BY Eifeh Strom

42 Media Social Marketing for Security — Is the Investment Worth It? SpECiAl FEATURE

Social media has undoubtedly become a major platform for marketing; however, research shows that the security industry is a bit of an outlier when it comes to this trend. a&s reached out to several companies to hear about their perception of social media marketing and its effectiveness. BY Israel Gogol, Freelancer

Australian Security Continues Steady Climb The security market in Australia is mature; however, compared to other mature markets like in the U.S. or parts of Europe, the adoption of IP, electronic access control, and recurring-monthly-revenue models have been much slower. Despite this, Australia remains a tech-savvy security market with many opportunities for new entrants.

SEPTEMBER 2015

NEWS FEATURE

CovER SToRy

Q&A With Battery Ventures: Betting on PSIM

SEPTEMBER 2015 ● www.asmag.com

Hikvision Solutions Make Asian Cities Safer

The region’s rapid urbanization has become a common phenomenon. Population growth and increased people flow have caused cities to become bigger and more vulnerable to safety issues, therefore spawning greater demands for security. BY William Pao

Derek Yang, General Sales Director, Asia, Hikvision Digital Technology

In early August, NICE Systems announced it will be selling its physical security business unit (PSBU) to Battery Ventures, an American venture capital and private equity firm for a sum of up to US$100 million. The new company will become a standalone company headquartered in New Jersey, U.S. — with offices in London and Singapore, and a R&D center in Israel — and will focus mainly on NICE’s situation management offering. BY Israel Gogol, Freelancer

CONTENTS

SEPTEMBER 2015

Tailoring Mobile Surveillance Solutions for Enhanced Onboard Security

Surveillance solutions on public transport systems have their unique requirements, mostly depending on the nature of the vehicle, location, and government regulations. To make things complex, more and more applications are getting integrated into these solutions. Here we take a look at the features that typically go into mobile DVR/NVR systems and how they are expected to evolve in the future. BY Prasanth Aby Thomas

Identifying Challenges and Priorities to Keep Concerns at Bay Vertical Market

SEPTEMBER 2015 ● www.asmag.com

Seaport security is considered critical in any country and is often given priority over several other segments. But given their large size and the tough environmental conditions they are in, securing and monitoring seaports while being able to accurately identify potential risks requires an optimum combination of right equipment and trained personnel.

industry report

6 Things Leading the Future of Security Development

A lot has happened in the eight years since a&s International’s 100th issue in April 2007. Now, as we celebrate our 200th issue, we take a look at what has had the biggest impact on the industry since 2007 to give us the industry we have today. BY Eifeh Strom

IP Revolutionizes Access Control The past eight years has been eventful for the access control industry. Major security events, coupled with conflicts in certain regions, have kept demands intact even amid the aftermaths of the 2008 financial crisis. BY William Pao

Contents................................P.14 Editor’s Note .........................P.18 Application Cases .................P.20 Products of the Month ..........P.24 Asia at a Glance.....................P.40

BY Prasanth Aby Thomas

Show Calendar ......................P.80

product exploration

New Products ........................P.82 Companies in This Issue ........P.85

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

City Surveillance Gears Up Asian Security

SEPTEMBER 2015 ● www.asmag.com

t took Thai police half a month to find the suspects of last month’s tragic Bangkok bombing — in early September one of the suspects finally confessed to the crime. A lack of modern forensic technology is the main reason that hampered the search. According to our interviews with Thai security equipment suppliers, most of the street cameras have low resolution and many were broken. Given that there are around 57,000 security cameras in Bangkok according to some local media, security cameras are still not that widespread to cover most of the intersections. The bombing, instead, has urged the government to make city surveillance the top priority to protect its people and property, and further secure economic growth. With higher security awareness in the country after the bombing, the Thai government and security industry have started to standardize its security equipment specifications and are also trying to make security equipment purchasing more transparent. We hope all of this can stimulate the current staggering Thai economy and drive the growth of Thai security market. Actually, city surveillance or safe cities have become a hot topic, especially in emerging countries in Asia. China, compared to other regions

in Asia, probably has the most comprehensive and systematic development of safe city projects. Hikvision Digital Technology shared with us that in China, safe cities projects have been deployed in first- and second-tier cities, even fifth-tier cities. First-tier cities have even entered the third-generation stage with more connected devices and more widespread video surveillance camera coverage. In addition, several other Asian cities in Thailand, Vietnam, India, and others have also deployed safe city initiatives. In non-Asian countries, we found that being “safe” is not the only focus of a modern city development. Instead, smart city projects have gained the limelight. According to Frost & Sullivan, the global smart city market will be valued at US$1.6 trillion in 2020. By 2025, over 26 global cities are expected to be smart cities, with more than 50 percent of them in Europe and North America. Using intelligent solutions and technologies to improve operational efficiency in different industries should be the main focus. Overall, safe city and smart city projects are being rolled out globally. We hope they can continue to help emerging countries grow their security industry.

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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Sony Secures Yicheng Prison in China

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ApplicAtion Cases

Yicheng Prison, China, has upgraded its analog video surveillance system with Sony’s new video security and monitoring solution. Budget constraints have traditionally forced Chinese prisons and detention centers to install low-quality video monitoring and security systems, which forced them to deal with blurred and inferior images resulting from dust, extreme weather, and electrical interference. Security and replacement issues also occurred whenever there was a camera malfunction. Yicheng Prison opted to install 201 Sony Full HD video security cameras across all outdoor areas of the facility as they are recognized in terms of image definition, smoothness, and noise performance in low-light conditions. Integration with the prison’s existing Sony video conference system went smoothly, while the new cameras were found to also be compatible with the existing indoor Chinesemanufactured cameras. Going forward, Yicheng Prison plans to compile a detailed operating manual and provide professional training to their staff to help them use the system to its full potential.

Wavestore Secures the 2015 Southeast Asian Games in Singapore

SEPTEMBER 2015 ● www.asmag.com

Mongolian Bank Covers 530 Branches With QNAP Solution Khan Bank is one of the largest commercial banks in Mongolia and provides banking services to an estimated 70 percent of Mongolian

households. Since each of Khan Bank’s 530 branches handles large amounts of transactions and customer enquiries every day, a reliable surveillance solution to safeguard their branches and ATMs was needed. The bank decided to replace their analog video surveillance systems with a digital surveillance solution that features an all-IP solution utilizing NVRs and NAS. The system’s smart recording mode allows for selective recording of high-resolution videos only when notable events occur or alarms are triggered, rendering additional hard drives unnecessary thus leading to additional savings for the bank. The three-stages of IP surveillance deployment started from Khan Bank’s central office to all branch banks in the capital city and then to the rural areas. For the next stage of their surveillance system upgrade, Khan Bank plans to install the turnkey solution to manage their NVRs, cameras, and events easily and efficiently.

Wavestore successfully provided an enterprise-level video management solution for the Southeast Asian (SEA) Games 2015 in Singapore, which commenced on June 5, 2015. The system was designed by Wavestore’s distribution partner in Singapore, Cyrus Innovations. Live images from over 500 cameras installed at sporting arenas throughout Singapore were transmitted to a central control room where they were recorded and stored onto an enterprise-level

ApplicAtion Cases

Wavestore video management software (VMS) solution. The users were able to use Wavestore’s review suite to search and instantaneously retrieve recorded video of any incidents and display them alongside live images of any activity occurring within the arenas and surrounding areas. Chris Williams, Director of International Sales for Wavestore said, “We worked closely with Cyrus Innovations in order to ensure that the client was able to take full advantage of the innovative and technically advanced features of the Wavestore VMS, in order to create a safe environment for everyone who attended or participated in the games.”

users who can simultaneously log in and watch the students take their lessons from 10 to 120 users. The combination of cameras positioned at the entrances of these schools and an access control device can record and send parents real-time notifications of their child’s arrival and departure from the school.

Axis Cameras Protect School Children in Japan

NEC Facial Recognition Helps Police Increase Public Safety in Australia

Matrix Video Surveillance Solution Secures Indian International School

SEPTEMBER 2015 ● www.asmag.com

A renowned international school in India sought to improve the security and learning experience of its students. In each of its five branches, they decided to adopt a new video surveillance system that would address their need for high-quality video recording, access control integration, and simultaneous viewing of cameras for both the student’s parents and the principal supervision. They decided upon the Matrix solution, which features hybrid video recorders that can provide video feeds to absentee students and significantly increase the number of

successfully identified 300 individuals and aided the NT police solve crimes and prevent safety threats.

NEC Australia, along with NEC Corporation, has partnered with the Northern Territory (NT) Police Force in Australia to implement NEC’s Neoface Reveal solution, a forensic facial recognition technology. This system allows police to quickly search through their photo database and match the results against any image or video surveillance footage, as well as photos taken from body-worn camera videos, drones, and phones. It also helps the police identify hundreds of individuals by enhancing the value of the video footage for investigation purposes. The police department currently has 190 video surveillance cameras and a number of mobile video surveillance units that can be moved on-demand to “hot spots” and major public events. The government has also issued 1,330 tablets to police officers and installed satellite communications in 51 police vehicles in remote locations. Since early 2015, the system has

The Minoh City Council in Osaka, Japan, decided to install security cameras on all elementary and middle school routes to address their residents’ concerns about the number of kidnapping cases of young children throughout Japan, as well as reports of what seemed to be attempted kidnappings within the area. They selected Axis network cameras for this task. Axis’ Lightfinder technology can capture clear color images even in low-light environments. The cameras also come with a privacy masking function. Cameras were installed on 14 municipal school routes. On average, 50 cameras were installed per school route, totaling 750 throughout the city. The collected data is stored for about one week and can be provided to the police for investigations. Since the installation, the number of reports about suspicious incidents decreased by 50 percent from the year before.

NAS Chooses Hybrid Cloud to Enhance SMB Convenience and Security Editor’s Note:

Targeting home, solo offices, and small-to-medium applications, now companies are releasing compact NAS devices with large capacity for multiple data storage. In addition, these devices provide hybrid cloud solutions to end users to easily stream and share HD multimedia and surveillance content.

QNAP HS-251 SileNt NAS

SyNology DiSkStAtioN DS214Se

APAcer clouD Drive

SEPTEMBER 2015 ● www.asmag.com

• Centralize data, files, and backups • Sync files across computers, tablets, and mobile devices, and share files across different groups and communities • Expand functionality by installing apps from QNAP App Center • Fanless design allows for limited background noise • Dust-free with thermal design to intelligently dissipate heat • Compatible with a wide-range of network streaming protocols

• Floating-point unit enabled CPU favors multimedia processing • 102 MB/s reading, 58 MB/s writing • DLNA-certified media server • 19 W low power consumption • Hassle-free system installation • Running on Synology Diskstation Manager

• Supports 3.5/2.5 HDD, up to 4 TB • Supports USB 2.0 port and USB external storage device • Supports SDHC card slow for one-button backup • Supports IEEE 801.11b/g/n and Wi-Fi direct • Wireless AP function

Supplier: QNAP Systems

Supplier: Synology

Supplier: Apacer Technology

URL: www.qnap.com

URL: www.synology.com

URL: eu.apacer.com

he HS-251, powered by a dual-core Intel Celeron 2.41GHz processor, was created as a silent NAS solution that allows users to enjoy files and media with no distractions. Coupled with the support of HDMI connectivity for 1080p video playback and hardware transcoding capability, the HS-251 is an ideal companion at home for multimedia entertainment. QvPC technology enables users to use the NAS for features such as cloud integration, RAID protection, and more. Compatible with the Surveillance Station app, users can monitor real-time video playback to gain complete control of home or office surveillance. The HS-251 can become one’s personal cloud, so users can be always connected to their data. They can also take advantage of the myQNAPcloud service, which allows them to remotely access the HS-251 wherever they are, and instantly stream or share their multimedia content with friends and others.

entering on the core features of NAS devices, the Synology DS214se provides budgetfriendly, handy, and effective network storage. The DS214se centralizes and backs up digital content, and makes cross-platform and cross-device sharing effortless. Combined with Synology’s mobile apps, including DS cam for home security, users can watch up to six channels simultaneously, take snapshots anytime, and browse through recorded events. With Synology’s cloud applications, DS214se serves as a personal cloud whose content is available anywhere on demand.

pacer Cloud is designed especially for the use of the general public, providing various yet easy-to-use ways to browse, upload, download, and manage files. The solutions of Apacer Cloud include personal cloud storage, home automation, home secure surveillance, and audio-visual entertainment. The Apacer Cloud offers instant connection and integration of various smart home devices and appliances, such as event triggers, push notifications, device interlock, and community sharing.

HIKVISION SOLUTIONS MAKE ASIAN CITIES

SAFER The regionâ&#x20AC;&#x2122;s rapid urbanization has become a common phenomenon. Population growth and increased people flow have caused cities to become bigger and more vulnerable to safety issues, therefore spawning greater demands for security. BY William Pao

Residential Security SEPTEMBER 2015 â&#x2014;? www.asmag.com

Apartment entrances, car parking facilities, as well as outer perimeters are secured to keep residents safe.

Road Monitoring

Public Places

Hikvision has the solution to help administrators deal with traffic congestions and track suspicious vehicles.

Hikvision products are deployed in public places such as plazas and parks to secure citizens and visitors.

Public Transportation

Video surveillance is installed ubiquitously on public transportation vehicles and stations, leaving no blind spots.

Border Control

Hikvision IR and thermal cameras are used in border areas where conditions can be harsh and extreme.

ccording to Derek Yang, General Sales Director for Asia at Hikvision Digital Technology, population growth is a common issue facing cities across Asia. “For example, over the last decade Singapore’s population grew from some 4 million to 5 million now. Kuala Lumpur and Bangkok also experienced a 15 to 20 percent population growth over the last 10 years,” he said. “At the same time, young people keep moving into cities, making them even bigger and more populated.” With that, daily operations such as crime prevention, law enforcement, and traffic control have become increasingly difficult for city administrators. Against this backdrop, Asian municipalities turn to safe city projects to maintain security and manage daily operations more easily and effectively.

Hikvision solutions in AsiA Cities While cities vary from region to region across Asia, most of them are faced with the same public safety issues. Transportation facilities, residential areas, and public places where crowds easily form — such as parks and plazas — must be kept safe at all times. Measures are needed to keep traffic flow as smooth as possible. If cities are near borders, high security must be in place to prevent disruptions or sensitive activities from happening. To those ends, Hikvision’s safe city solutions are deployed throughout the region to help city administrators meet those objectives.

Road Monitoring Hikvision’s road monitoring solution has benefitted Korea, where surveillance cameras are deployed at various sections of roads to monitor traffic and track suspicious vehicles.

While cities vary from region to region across Asia, most of them are faced with the same public safety issues. Our safe city solutions help administrators deal with them.

Roads and intersections can be dangerous and are difficult to manage. Poorly done traffic control may cause logjams that no one wants to get into. To properly address these issues, Hikvision has the solution to help enhance traffic control and road monitoring. According to Yang, the solution has been deployed in over 200 cities in China as well as in other Asian countries. Key cities in Korea, for example, have benefitted from Hikvision’s solution, which allows operators in the command center to control fixed and PTZ cameras at the site and communicate with field workers seamlessly to respond to various situations. “Cameras are installed on the middle of the road to detect the colors and license plates of vehicles, helping administrators track suspicious cars or better understand the traffic situation of the area. Then, cameras are also placed at intersections to detect vehicles running red lights or making illegal turns,” he said. “On the backend, there is CMS that monitors traffic flow and keeps track of vehicles. When there is a congestion in a certain area, it alerts the administrator so that they can do something, for example shortening the red light time,” Yang added. “Then, if there is a criminal on the run, the system can also track his position and keep relevant authorities situationally aware.”

Public Places Hikvision solution is deployed in Singapore’s Esplanade Theatre, helping administrators to manage the overall visitor flow.

In public places such as plazas and parks where crowds easily form, accidents or criminal activities can be destructive and produce tragic results. For these places, the needs are constant surveillance, fast reporting and response in the event of an emergency, and post-event investigation. Again, Hikvision has the solution to help administrators deal with those needs.

Derek Yang, General Sales Director, Asia, Hikvision Digital Technology

“Our solution combines video surveillance with public address systems, through which command center personnel can direct people to safe grounds during the evacuation process,” Yang said, adding additional cameras may be required to enhance surveillance. “Besides those that are already fixed in place, we need additional ones set up on a temporary basis, for example those that are installed on police cars or on polls five meters above ground to provide aerial views of the area.” This solution is being deployed in different parts of Asia. For example, Hikvision installed over 200 smart IP cameras for Singapore’s famous Esplanade Theatre. “Coupled with Hikvision’s 96 series NVRs and iVMS-5200 professional software, the system delivers a truly vivid smart solution for the site, boasting intelligent features such as face detection, intrusion detection, and line-crossing detection, well helping the administrators to manage the overall visitor flow,” Yang said. “The solution also supports the RAID 5 technology, enhancing the quality and reliability of data storage.”

Public Transportation In Malaysia’ international airport, over 200 pieces of Hikvision’s 5MP high-resolution network camera are installed to secure key spots, including the luggage claim and check-in areas.

SEPTEMBER 2015 ● www.asmag.com

Unlike road monitoring, surveillance of public transportation facilities tracks people constantly on the move and takes a different approach. If something happens, and the suspect walks away, there must be a mechanism to track that person to ensure timely search, arrest, and prosecution. Citing the July 7, 2005 London bombings, Yang said video surveillance deployed throughout the city was able to help authorities identify the four suicide bombers within days and make related arrests and raids. To optimize security, Hikvision’s solution connects sensors, cameras, and audio detectors on buses, subways, trains, their respective stations, and airports to form a system that allows authorities to track suspects as they move from one form of transportation to another. All video clips are high-definition to enable detailed analysis. As an example, Yang cites a primary Malaysian international airport where over 200 pieces of Hikvision’s 5MP high-resolution network camera are installed. This is mainly to secure key spots including the luggage claim area and check-in area, leaving no blind spots that allow criminals or suspects to hide or get away. All HD footage can be kept for a long time. At the same time, Hikvision, together with its local partner in Singapore, also deployed over 400 mobile NVRs and video management software for the Singapore MRT circle line. The mobile recorders have massive data storage capability, feature stable and consistent operation against constant vibration and electromagnetic interference, and are designed specifically for recording in small, closed space such as the interior of trains, well ensuring data transmission to the remote control room where the administrators can understand the situation in motion without any clips missing. “The current challenge is not the technology, but dealing with different transportation authorities, which are separate entities,” Yang said. “Some of them are private and some are public. Unifying them together is a difficulty.”

Residential Security Hikvision designed an integrated IP video system for Singapore’s public housing. Some 100,000 IP cameras are installed to keep the areas safe.

Residential areas are another critical element in safe city projects. Areas that are particularly vulnerable and call for special attention include apartment entrances, car parking facilities, as well as outer perimeters. Hikvision’s solution connects security systems commonly seen in residential implementations — video cameras, access control, alarms, panic buttons, fire detection, public address systems, visitor management systems, alarm systems from the user’s home, as well as systems from the security management company — to keep residential security intact. A major use case is public housing in Singapore, managed by the country’s Housing and Development Board (HDB). “Hikvision designed an IP video system for HDB facilities in Singapore by installing 100,000 IP cameras managed by its powerful VMS,” Yang said. “The system can send alerts and transmit relevant videos to provide insights for command center operators. It is fully scalable and can support facial recognition, ANPR, behavior analysis, and other intelligent functions on the frontend and backend.” According to him, Asia’s unique residential pattern gives Hikvision the opportunity to succeed with its solution. “In Asia, residential complexes are mostly high-rise buildings with commonly-shared public areas. Securing these places can be more efficient. This

is in contrast with North America and Europe, where homes are mostly independent,” Yang said.

Border Control Some cities themselves are close to borders. Examples include Singapore and Seoul. In these places abnormal traffic patterns or other suspicious activities might indicate trouble and must be monitored. Meanwhile, considering these borders might be poorly illuminated at night or subject to extreme, harsh conditions, devices for critical environments must be used. “We have new IR and thermal cameras with coverage of between two to ten kilometers. These are megapixel cameras with different form factors such as boxed and speed dome,” Yang said. Hikvision also has anti-explosion devices that can be used at militarized zones, as well as anti-corrosion products that are especially suitable for coastal implementations commonly seen in Southeast Asian countries. All these products and solutions can greatly enhance Asian countries’ border control efforts, Yang said.

sAfe City future: to seCurity And Beyond Right now, most safe city projects are meant for security and protection. Yet, according to Yang, the future trend is such that these projects will move towards management and energy savings that enhance citizens’ quality of life. “Safe city projects go through a natural progression. In the first phase, security is used primarily for keeping people safe. In the second phase, where you have tens of thousands of sensors in place, they can be used to control traffic and enhance traffic flow. In the third phase where you have even more sensors, you can use them for energy conservation purposes — for example keeping streets lights off late at night unless a vehicle is passing by,” he said. Most cities in Asia are still in phase one, with some major cities transitioning to the beginning stage of phase two, Yang said. As for phase three, it will take some five years, but “that is definitely the direction we’re moving towards,” he said.

future ProsPeCts BrigHt With Asian regions becoming more urbanized, security demands in cities will only grow. Having transitioned from a hardware manufacturer to a total solutions provider, Hikvision has already become a strong force in safe city projects throughout Asia. With future safe city projects to focus on energy conservation and other quality of life issues, Hikvision is expected to play an even bigger role in delivering value-added solutions.

KEY ELEMENTS IN SAFE CITY PROJECTS

According to Yang, to work effectively, a safe city project should include the following elements: citizen friendliness, ubiquitous deployment, critical access coverage, fast response, and data sharing.

Citizen Friendly

A safe city implementation must be done in a way that does not make citizens feel uneasy or being intruded upon. “When there are so many sensors, they must be installed in a way that does not intrude on citizens’ privacy and create issues in non-public areas,” he said. “Cameras, for example, have functions that mask or prevent the capturing of undesired areas. Installation must also be somewhat scientific, with cameras being installed in a way whereby only public areas are captured.” Conversely, certain places come with visible signs saying there is video surveillance present. “Sometimes, people do not mind sacrificing their privacy a little bit for the greater good of the public,” Yang said. “This is also citizen-friendly, though with a different approach.”

Ubiquity

In order to optimize a safe city project, cameras and sensors should be ubiquitous so that no place is left unattended. A safe city solution that only supports 100 cameras or sensors, for example, can create loopholes — data may be missing, leaving operators unable to retrieve critical footage. “Coverage must be wide in order for the data to be meaningful," Yang said.

or subway stations, call for special attention. “These are critical nodes that must be effectively covered so that people or vehicles coming in and out can be better understood,” he said.

Fast Response

In an effective safe city implementation, first-hand information should be brought back to the command center in the quickest manner where authorities can make quick and informed decision based on that information. “In large events where crowds gather in a short period, operators must respond to emergency situations like terrorist attacks in the fastest time. Sensors can be fixed or installed on a temporary basis,” he said.

Data Sharing

An effective safe city project should enable seamless communication and data sharing between the different stakeholders, for example police, fire brigades, city officials, and private parties. While Hikvision solutions can address most of the aforementioned points, the data sharing part remains a challenge. “While the technology is available, how to get these agencies to open the data for sharing is an issue that needs to be dealt with,” Yang said.

Critical Access

Important access points, for example those at train

Q&A With Battery Ventures: Betting on PSIM

he sale of NICE Systems’ physical security business unit (PSBU) is the second such move by NICE Systems — earlier this year, in May, NICE sold its cyber and intelligence unit to an Israeli company, Elbit Systems. The move was part of NICE’s strategy to focus on its core business in enterprise software and “off-load” other units. The identity of the buyer is what makes this deal different. a&s spoke with Jesse Feldman, General Partner in Battery Ventures who lead the deal, to hear more about the potential and future directions for NICE PSBU.

a&s : The purchase of NICE PSBU by Battery Ventures came as a surprise to the security industry. In the past two years there were many M&As of security companies, but all from within the industry. What were the processes that lead to the deal? Were you actively looking for investment in the security industry? Feldman: Our focus is on technology and not sectors. For the past 30 years Battery has focused exclusively on technology companies and we have identified physical security as a market with growth potential. Prior to the acquisition we were actively looking in this space, we spoke with several dozens of companies and have known NICE PSBU for some time.

a&s : What drove you to invest in NICE’s physical security business unit?

SEPTEMBER 2015 ● www.asmag.com

Feldman: We have identified two macro themes that we believe will push the industry to grow further. The first is the advent of knowledge “beyond physical security” — particularly around operations. In the past, security systems could tell you if there was a breach, today users can benefit from their systems by gathering more data regarding their operations. The second is the continued improvement in technology used in physical security solutions. From these two perspectives, we identified NICE PSBU as a market leader with regard to the technology they have. I divide the NICE PSBU offering into three: the video

manufacturers? Will NICE PSBU remain focused on software? What kinds of security companies are you interested in?

Jesse Feldman, General Partner, Battery Ventures

management software (VMS), physical security information management (PSIM), and video analytics. The VMS platform which is stable and robust is an excellent core product for the high-end market. The PSIM product, Situator, is an industry leader in a sector we believe holds big opportunities; especially regarding operations management. Regarding analytics, my honest opinion is that a lot in the industry has been promised but not too much delivered. We believe that NICE’s new suspect search is the exception as it has made great inroads in using big data from video to make informed decisions and will deliver on its promise.

a&s : PSIM is also problematic in that sense. It promises a lot of value but when push comes to shove the integration efforts and costs are not simple at all. Feldman: True, we are aware of that; however, as part of our due diligence process we spoke with several customers and what we heard consistently is that even though it is a complex product to implement, NICE enabled successful implementation and services, so we do expect this will continue to be the trend with future installations.

a&s : Your initial press release mentioned “complementing NICE’s technology with strategic acquisitions.” Many of the recent acquisitions in the security sector have been hardware+software, are you also considering acquiring hardware

Feldman: We do think that PSBU is a fantastic platform to grow organically and inorganically. One of our investment ideas in this opportunity is adding complementary products to the company. As an example, if we look at the PSIM product, it is VMS agnostic, but VMS is an important part that can complement it. There are of course many other systems that can feed in the PSIM but we think access control will be a natural complement to the portfolio we have today.

a&s : What is your future vision for NICE PSBU? What kind of strategy will it follow? How will it increase its competitiveness? Feldman: We are excited about the market opportunity in the security industry and we will focus on helping the company grow and become a successful standalone business. We have seen that while inside NICE the PSBU has executed very well. We believe that as a standalone business they will be more focused and more flexible. This will give better responses to our partners and customer requests. The plan is not to combine NICE PSBU with any of our existing portfolio companies; NICE will be a platform which will combine new investments in physical security. As far as strategy is concerned, we have seen a trend of companies in physical security focusing on vertical solutions and NICE PSBU will continue to play a role in this as well. NICE has a strong position in several verticals, transportation, finance, governments, and we expect those relationships to continue with continued expansion of NICE Situator in the operations field.

Betting on PSIM – The Future is Not Clear

The transaction is scheduled to close during the third quarter of this year. There are several possible outcomes for the new company. Feldman points to the potential future growth of the PSIM market in which NICE PSBU has a successful track record of implementations. However, the PSIM market has long been a relatively small niche market within security, with high costs and pains associated with integration efforts and the lack of open standards in the industry. If the new NICE PSBU chooses to focus on “information beyond security” and operational management, this could potentially give the product the needed push that will increase its adoption rate. By focusing on operation management more, stakeholders (and not just security managers) can be tied into the system thus making it more justifiable. For this to happen, NICE will have to bring to the table not just technology but also a strong consultative capability in all operational aspects, which will help clients discover and solve the challenges in their respective vertical. An acquisition of an access control platform that will be combined with the NICE VMS could also open up more market opportunities for NICE. An access control and VMS combination will allow NICE to explore opportunities also in the mid-end and become more product-oriented, as opposed to PSIM deployments which are more project-oriented and high-end. Battery Ventures can give NICE PSBU a firm financial back as well as experience in converting a business unit into a standalone company. The acquisition of NICE PSBU definitely has a lot of potential, the new company’s performance will reveal whether or not Battery’s bet was right in its analysis of the market.

SECU OPEN

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AILAND

RITY DEMAND S UP

hailand’s economic growth slowed in the second quarter of the year as improved government spending and tourism failed to counter weak local demands and exports. A main reason for the decline is the rise and deceleration of the Chinese economy which has impacted Thailand’s export-dependent, open economy. According to Thailand’s Ministry of Commerce, imports in Thailand decreased to US$17.5 billion in July from $18 billion the previous month, while exports remained flat. GDP growth in the second quarter grew by 0.4 percent, compared to 0.3 percent in the first quarter. As the government makes plans to boost the economy, along with the ASEAN Economic Community (AEC) to be implemented by the end of the year, it won’t be long before we see an economic upturn. The security industry on the other hand, has reached a turning point as recent events will create more requirements for security equipment and projects.

DelayeD Projects affect security Players The sluggish growth of the economy has led to delays in projects due to limited government budget, and a number of infrastructure projects have gone through specification and budget reviews. “The government annual budget appropriation is made by the end of every year, and as the Thailand government had experienced some

Masami Eguchi, GM, APAC, Panasonic System Communications Joy Hu, Sales Engineer, Dahua Technology Abhay Joshi, International Business Development and Sales Manager, Matrix Comsec

regime change, most of the budget of the security-related projects which were made by the end of 2014 still got delayed or cut,” explained Joy Hu, Sales Engineer at Dahua Technology. An example is the CCTV Safe Zone School project, to be implemented in three provinces in southern Thailand. “With plans to implement more than 6,000 surveillance cameras, the project should have started operation from the beginning of 2015, but could only be restarted again by the second half of this year, while the total scale has been reduced,” she commented. The lack of government projects has indeed impacted the security industry. To handle the current situation, government project-oriented security players have also turned to the private sector to maintain growth. “Panasonic prepare solutions for government projects and compensate the shortfall by providing private sector businesses, such as retail store groups and manufacturing companies with up-to-date solutions fulfilling customers’ requirements,”

said Masami Eguchi, GM in APAC at Panasonic System Communications. Delayed government projects have a smaller impact on players who are more focused on the private sector. “Private sector investments and decision making have been faster, and also has seen substantial growth in the last two years,” said Abhay Joshi, International Business Development and Sales Manager at Matrix Comsec. According to Joshi, the company has been involved with a number of automobile companies providing security solutions to fit users’ requirements, as well as other valueadded services, which has fueled their growth.

Government Provides SME Stimulus

SEPTEMBER 2015 ● www.asmag.com

In efforts to revive the economy, the government recently approved a new round of economic measures worth US$5.7 billion to help small and mediumsized enterprises (SMEs). The short-term stimulus measures include $2.8 billion in seven-year soft loans, which will give the government an interest burden of approximately $555.6 million during the time. Existing SMEs will have their income tax dropped to 10 percent for two tax years, whereas startups in certain sectors will receive a five-year exemption. According to the Finance Ministry, these measures will help 60,000 SMEs continue business and maintain approximately 240,000 jobs, which are expected to improve the economy. A d d i t i o n a l l y, T h a i l a n d ’s R e v e n u e Department recently approved a new investment promotion policy that will offer more incentives and benefits for international headquarters and trading centers, hoping to lure in more foreign companies. The new policy provides qualified companies with more tax and non-tax privileges. According to Kelvin Lim, Country Manager at D-RON Technology, “Import policies have been improved which sees many brands of cameras reduced to zero percent on import duties. This will boost the growth and demand to improve and bring in better quality cameras.”

Additionally, delayed projects could also push up the nation’s public debts. There have been consistent budget deficits for the last four years and the public debt is expected to reach 52 percent of the GDP by 2020, according to the Public Debt Management Office.

selecteD Government Projects roll out to fuel Growth

Vallop Kingchansilp, President, Guts Group of Company Arnon Kulawongvanich, GM, Sales and Marketing, Bangkok OA Coms Kelvin Lim, Country Manager, D-RON Technology Kritsada Phanbamrung, MD, CCTV Thailand Somchai Prajaksoot, MD, Digital Focus Tanakrit Rodjanasiraprapha, MD, Bacom Internetwork

Despite a lack of government budget, major projects are continuing to roll out in order to push economic growth and help with tourism. According to Kritsada Phanbamrung, MD at CCTV Thailand, although many security-related projects have been delayed, the government will still roll out critical projects if required. Thailand’s Ministry of Transport is pushing 17 infrastructure projects that include land, rail, water, and air transport. For water transport, the government is developing 19 piers along the Chao Phraya River to improve convenience and safety for passengers using express boat services. An eTicket system will be introduced that will be valid for river transport, buses, and metro train services. Coastal ports will be improved to handle cruise ships in efforts to transform Thailand into a marine hub in ASEAN. For air transport, there are several development projects, including the construction of phase two facilities and the third runway at Suvarnabhumi Airport, the renovation of Terminal 2 at Don Mueang Airport which is due for completion in November, as well as the extension of Phuket Airport, ready in February 2016. Once completed, Thailand will have a capacity of 100 million passengers per year, considerably higher than the current 45 million. For the security-related government projects market, the Ministry of Information Communication Technology will implement specification and price standards for surveillance cameras, which will allow for more transparency in projects. According to Hu, these actions will provide more opportunities and access for all qualified parties, but will also trigger more market conflicts and competition among the qualified parties.

BomBinG traGeDy Boosts security DemanD On August 17, a bombing occurred inside the Erawan Shrine, Bangkok, which killed 20 people and injured 125. Unfortunately, according to local authorities, most of the security cameras on the culprit’s getaway route were broken, and the lack of modern equipment needed to track the culprit led to several setbacks in the investigations. “Following the bombing, security have been tightened around Bangkok, particularly in areas frequented by tourists, with additional

security officials positioned and additional security checkpoints put in place,” said Arnon Kulawongvanich, GM of Sales and Marketing at Bangkok OA Coms. Moreover, city surveillance has been one of the main government projects. In Bangkok, there are already a large number of existing cameras which are generally a mix of many different brands. According to Kelvin Lim, Country Manager at D-RON Technology, video analytics software will also be important to implement due to recent events. “The police will try to find any solution to analyze suspicious objects and prevent any criminal activities in advance,” he explained. The tragedy has indeed drastically raised security awareness, and added several requirements for equipment upgrades. The government plans to implement laws that would set a standard for camera resolution, making high resolution mandatory for street cameras in order to help with future investigations and deter criminal activity. “Because of

Despite a lack of government budget, major projects are continuing to roll out in order to push economic growth. For example, there are several development projects, including the renovation of Terminal 2 at Don Mueang Airport.

this tragedy, not only authorities, but the whole country will put more emphasis to public safety and the security industry. The authorities of Thailand will plan to update the public surveillance system with more high definition and intelligent security cameras in the city,” said Kulawongvanich.

AEC 2015 Creates More Opportunities Across ASEAN Soon, Thailand will have a free flow of labor with other ASEAN member countries, thanks to ASEAN Economic Community (AEC) 2015. The 10 nations of ASEAN have prepared mutual recognition arrangements (MRA) that specify the basic qualifications for professionals to work freely in each other’s countries, as well as creating an environment for local companies to increase sales, open operations outside their domestic market, and enable sourcing on a region-wide basis. “AEC will be a major change to the regional economy in ASEAN, as it will be free for competing in all business types — not only security. It won’t be easy for distributors to remain profitable unless they are willing to come up with innovative strategies to remain competitive. Because right now, Chinese manufacturers are flooding the market with low-cost products, prompting a price war, which is a disadvantage,” said Tanakrit Rodjanasiraprapha, MD at Bacom Internetwork. The AEC will increase the partnership of security professionals in the ASEAN countries. “Thailand is the center location for AEC, and there will be more activities for video surveillance, as our neighboring countries

are confident in Thailand products and services. Therefore, systems integrators from Thailand will have opportunities to get more projects in Laos, Myanmar, and Cambodia. It may be a good time to have strong strategic partners from out neighboring countries, such as Singapore and Malaysia. We have to improve our knowledge and service after sales to maintain and increase our customers,” said Somchai Prajaksoot, MD at Digital Focus. Additionally, the Thailand government has plans to invest in a high-speed train to connect the ASEAN countries to Bangkok, which would enable wide-area logistics. This will generate other needs of safe city demands and transport/vehicle safety management. “AEC 2015 will help improve economic situations for ASEAN as a region, and is beneficial to Thailand due to its geographically strategic location in ASEAN and also in the Mekong Frontier Region which is the new manufacturing hub for the world. We hope this will bring about more business in security and safety markets as all business required for their investments and resources. Competition is good for us as it brings out higher awareness of security and safety needs,” said Ong Kah Seong, GM of Thailand at Bosch Security Systems.

security GuarD reGulation to aDD more emPhasis on security

“This will greatly affect security service companies as it will be difficult to find qualified security guards, and they much increase service costs. But it is good for physical security equipment companies, because security service companies must combine physical security equipment with their guards to provide best security solution with reasonable price for customers,” said Somchai Prajaksoot, MD at Digital Focus. As Johnny Trivitayakhun, MD at Security Communication Center said, “I would personally welcome the Thai authority to launch a professional educational curriculum, to help standardized physical guards, as well as to grant them opportunities to earn more income and improve their welfare. Education and understanding the level of threat is very important, what to look for and how to observe, along with the fundamental understanding and usages of security systems, albeit alarm systems, surveillance systems, metal detectors, and X-ray machines, etc. All of this should be well thought. Having such knowledge will eventually help create demands for equipment and solutions.”

SEPTEMBER 2015 ● www.asmag.com

In efforts to standardize the security services sector, Thailand’s national legislative assembly is reportedly considering a bill that would regulate security guards. The bill would stipulate standards that security services companies must comply with. Some of the mandatory qualifications to be a security guard include: minimum education level of Mathayom 3 (Grade 9), Thai nationality, and a course completion certificate designed by the Royal Thai Police. “The new laws for security guard regulation are great opportunities to control and improve our social organization. The situation will create a big age change to the security industry and because of the low quality standards of human resources, the equipment will become a key part in driving the security business,” said Vallop Kingchansilp, President at Guts Group of Company.

Ong Kah Seong, GM, Thailand, Bosch Security Systems Johnny Trivitayakhun, MD, Security Communication Center

thailanD stays resilient Thailand, as always, will remain resilient through their most recent tragedy. With plans to create a brighter future, the economy and security industry is looking up as security awareness breaks through in the country. With the help of AEC 2015 and regulations for security services, the industry is bound to reach new levels as Thailand recovers from its stagnate state.

AsiA At A GlAnce

THAILAND Weak consumption has not been helping an already slowing Thai economy. However, the terror attack in central Bangkok in August, the worst the country has seen, is likely to help drive security adoption, as security awareness has undoubtedly been brought to light.

Thailand’s GDP grew 2.8% year-on-year as of Q2 2015. Source: National Economic and Social Development Board (NESDB)

Ease of doing business 2015 ranked Thailand 26th in the world. Source: World Bank

There were

Thailand is the second-largest economy in Southeast Asia. Source: International Monetary Fund

Thailand was ranked the

8th best FDI host economy

93.5 million mobile subscribers in Q1 2015. Source: National Broadcasting and Telecommunications Commission

Approximately 7.9 million international tourists arrived in Thailand in Q1 2015.

Source: Ministry of Foreign Affairs (MFA) of the Kingdom of Thailand

Exports account for 60% of Thailand’s GDP. Source: Tourism Authority of Thailand

for 2014 to 2016.

Source: United Nations Conference on Trade and Development

The Thai government plans to derive 25% of total energy consumption from alternative energy sources by 2021.

Source: Thailand Board of Investment

SEPTEMBER 2015 ● www.asmag.com

Automobile parts and accessories were the top export products for January to April 2015. Source: MFA

Medical tourism is expected to generate earnings in excess of US$3 billion in 2015. Source: International Medical Travel Journal

Did you know? Thailand is the only nation in Southeast Asia to not have been colonized by a European country.

In Q2 2015, private construction increased reflecting an expansion in office building and commercial building. Source: NESDB

The security market in Australia is mature; however, compared to other mature markets like in the U.S. or parts of Europe, the adoption of IP, electronic access control, and recurring-monthly-revenue models have been much slower. Despite this, Australia remains a tech-savvy security market with many opportunities for new entrants. BY Eifeh Strom

Continues Steady Climb

SEPTEMBER 2015 ● www.asmag.com

nlike most countries in the world, crime rates in Australia are actually on the decline. In fact, despite the hostage situation at a Lindt Cafe in Sydney at the end of last year, Australia rose to number 9 on the Institute for Economics and Peace’s Global Peace Index, up four spots from the previous year. “Essentially, Australia has been seen as a more secure market,” said Naz Circosta, MD of Australiabased Ness. “The risks haven’t been as bad. There haven’t been as many muggings or other types of violence like in the U.S. or other places.” Low levels of crime make security less of a crucial investment than in countries where security and surveillance measures are more critical. Yet, this is not the reason that adoption rates of technologies like IP-based surveillance and electronic access control have been slower than in the U.S. and Europe. Factors such as high labor cost and Internet infrastructure are what Adam Storoschenko, GM of O-Lin Security, says has caused IP adoption to be slow.

“Australia is an expensive country to live in. High labor charges is one result of the cost of living here,” Storoschenko said. “As labor charges are high, by replacing a complete analog system, including your coax cables, etc., it can turn out to be a very expensive option to rewire complete buildings with networking cable.” Aside from cost and infrastructure, Circosta offered another reason. “In Australia, we actually trail the U.S., in terms of trends, by probably five years. For example, Automation is just beginning to happen here. People are only just beginning to think about it. It’s certainly not the technology because in many respects when we [Australia] do things we do them better than the rest of the world.” Regardless, many security players in Australia say that the security market right now is very strong. According to Peter Grimshaw, National Sales Manager at Central Security Distribution (CSD), “The security industry in Australia is probably the strongest it’s been in a long time.” Scott Fraser, GM for Australia and New Zealand at Salto Systems shared a similar belief, saying, “There’s a bit of a shift from the reliance on mining into other areas of the market now, but the market is still quite good.”

AustrAliAns Know their tech Despite slower adoption of new technologies, it does not mean that Australians are not tech savvy. “I think Australians are fairly progressive in terms of technology,” Fraser said. Specifically speaking on access control, Fraser pointed out that while Australians may not be quite as quick to accept technologies such as biometric fingerprint locks as they are in say Korea, overall, they are still very accepting of new technology. Marc Chan, Business Development Manager for Security in APAC at FLIR Systems pointed out, “Australia is an important market for us because it’s a technologically advanced country. It’s receptive to new technologies, for instance thermal technology — they were one of the early adopters for it.” When it comes to buying, Chan added, “Australians make very informed decisions. Customers know a lot about what they’re buying; they’re not just blindly buying. A lot of them actually know the technology pretty well. Newer technology takes some time for them to absorb, but in general they are pretty informed.”

Did Somebody Say NBN? Australians and non-Australians are all eagerly awaiting the roll out of the National Broadband Network (NBN), which promises to deliver Internet speeds of up to 25 megabits per second regardless of location in the country. When it finally is implemented, Internet speeds and bandwidth availability will exponentially improve nationwide. However, like most government projects, the NBN rollout has been met with delays and more delays. The reality of the NBN could be on the near horizon though. Recently, the Australian government announced that the first of two new NBN satellites will be launched on October 1 of this year. These satellites will “provide high-speed broadband to even the most remote areas of Australia,” according to a news release from Australia’s Minister of Communications.

the GreAt iP Push Most security players in Australia will attest that the current network infrastructure, while not nearly as strong as it should be, is plenty good enough for an IP system, despite slow adoption. However, the trend in Australia now is definitely going to IP and the eventual roll out of the National Broadband Network (NBN) will hopefully only further drive IP growth. In fact, some of the largest security distributors in Australia say that in terms of sales between 80 and 90 percent go to IP now. While new projects are using IP-based solutions, retrofits and upgrades are still likely to hang on to legacy systems. This is where hybrid systems and HD-over-coaxial solutions come into play. While some believe that HD-over-coaxial solutions could be a good fit for the Australian retrofit market, most believe that with easy plug-and-play IP solutions available, taking the plunge and going IP is still the better option.

infrAstrcutre limitAtions While the current infrastructure is “good enough” for an IP system, where it really limits security is with the cloud and remote monitoring.

The eventual roll out of the National Broadband Network is expected to greatly enhance bandwidth limitations across Australia, thereby increasing the adoption of IP, cloud, and service-based models. 43

“You can still record and do majority in house. This [current infrastructure] doesn’t affect companies and others that only need local recording,” O-Lin’s Storoschenko said. “It’s only when you want to go remote that the infrastructure problem comes into it. That slow adoption is down to that main reason.” He went on to explain that the limitation in bandwidth with the current infrastructure makes trying to stream high-definition video streams remotely near impossible, as some locations might be very remote and lack the infrastructure necessary to handle it. The limitations have also hurt the adoption of the cloud and recurringmonthly-revenue (RMR) models, both of which have seen a lot of growth in other regions recently. According to local players, most security systems are proprietary, sitting on a server where they are held and managed in-house. Furthermore, the software-as-a-service model, going to a cloud-based security solution is described as “still quite literally in the ether.” Conceptually, local players say it’s there — users are thinking about it and most companies have plans for it, but it’s still a bit too new. At this point, people still like to have their security within their own server within their location. Salto’s Fraser further commented, “It [RMR models] is something that has a little ways to go. It is something we’re having to educate partners about.” He

said the same of the cloud, noting that there has been some good uptake by dealers for cloud access control, but from the user perspective needs more education.

Marc Chan, Business Development Manager, Security, APAC, FLIR Systems Naz Circosta, MD, Ness Ben Crosariol, Manager, Marketing and Business Development, Canon Specialized Imaging, Canon Australia Scott Fraser, GM, Australia and New Zealand, Salto Systems

SEPTEMBER 2015 ● www.asmag.com

This year, Australia rose to number 9 on the Institute for Economics and Peace’s Global Peace Index, which ranks the world’s most peaceful nations.

Chinese inCrease iP adoPtion But deCrease Margins Particularly in the last year, the influence of Chinese manufacturers on the overall security industry has been more that considerable, with the pressure felt from Chinese security players like Hikvision Digital Technology and Dahua Technology unavoidable even in a relatively independent market such as Australia. “They [Chinse manufacturers] have had a massive influence on the market growth, especially in the entry-level IP and top-end major projects,” according to CSD’s Grimshaw. But like other markets, reduced margins have now become a major challenge. One local company said, “IP should have made it a more lucrative market for all of us for a while, but actually it’s becoming a fast fight to the bottom,” referring to the effects of low-priced Chinese IP solutions. However, Chinese presence in Australia isn’t new, reminded Grimshaw; there has always been a presence of Chinese manufacturers via online sales. The difference is now a few of the key manufacturers have decided to have a clear channel to market — CSD became the exclusive authorized distributor for Hikvision in Australia in 2013. Dahua also signed an exclusive distribution agreement with Sedan Security and Electronics in January of this year.

not Like asia But not exaCtLy the West As a rather unique market due to its location, security players have needed to adjust to fit the Australian market. “One of the differences between ANZ/Oceania compared to the Asia market is the cost of doing business. In terms of installation, for example, here you’ll probably pay about AUD$100 an hour. Much more than in other parts of Asia,” said Wai King Wong,

Country Manager of the South Pacific Region at Axis Communications. As a result, Wong explained that labor costs are too high to use low-end, cheap solutions simply because the labor costs are too high to have to deal with repairs. “Reliability is most important here because if every time you have to go back in and do a replacement, that’s going to hurt your bottom line,” he said. Ben Crosariol, Manager of Marketing and Business Development for Canon Specialized Imaging at Canon Australia also emphasized the importance of reliability, noting that brand recognition is pretty important in the Australian market for this reason. In terms of channels to market, FLIR’s Chan explained that he feels a local partner with a strong distribution network for their visible camera range is the best way to go in Australia (FLIR works with Q Security). In line with this, Wong pointed out that Australia’s location requires special attention: “If the customer wants to buy directly they have to make sure they have the backend support. Australia is so far away from the rest of the world. If they buy direct, they have to make sure there is a support structure in Australia.” Legislation is another factor to consider in the country — each state/ territory has its own security legislation that regulates who can sell, install, and consult on security within that state/territory. In comparison, one company explained, “In England, I used to sell everything through IT channels and they had relationships on the business side. I came to Australia and tried to do the same thing, but everybody in Australia has

to have a security license to install or sell a camera. So, you can’t do it through the IT channels the same way.”

stAyinG on toP of security There is no doubt that the described “laidback” country is very in-tune with the current security market, regardless of whether or not they have adopted all the latest and greatest in security and surveillance tech. In fact, being a smaller market has its advantages. “Because we’re a small market, there is a lot of competitors. However, a lot of things are often tested or developed from here,” said Canon’s Crosariol. “We do a lot of testing with product and/or the market locally to see and hear what the market wants, that we then push overseas to other markets for solutions and other things.” Also, with large projects such as the development of the Barangaroo area in Sydney, which consists of new residential buildings, shopping areas, and a casino, there are many opportunities for security players to get in on. Additionally, the consistent stream of new players over the past few years makes it obvious that security players continue to see a lot of potential in the land down under.

45 045.indd 1

2015/9/18 上午1:38

Tailoring Mobile Surveillance for Enhanced Onboard Surveillance solutions on public transport systems have their unique requirements, mostly depending on the nature of the vehicle, location, and government regulations. To make things complex, more and more applications are getting integrated into these solutions. Here we take a look at the features that typically go into mobile DVR/NVR systems and how they are expected to evolve in the future.

BY Prasanth Aby Thomas

ecuring public transport has become a priority for nations across the globe. Governments and private companies are making significant investments towards this, and initiatives such as smart cities have increased its demand. Realizing the potential, several security companies are concentrating their efforts on providing mobile surveillance solutions that leave no stone unturned. A key ingredient of any mobile surveillance solution is the NVR or DVR. Although the recorders used in this vertical are fundamentally the same as their counterparts in others, the unique environment in which they operate demands certain specific modifications.

AdApted SolutionS for Mobile environMentS The nature of the vehicle largely defines the specifications for the recorder. An example is the number of video channels required, according to Wallace Ma, Executive Director of TeleEye Group. “We normally require one to two cameras installed in a taxi,” said Ma. “On the contrary, we would need much more cameras installed in a bus or a train compartment.”

StandardS to Secure railwaY carriageS

SEPTEMBER 2015 ● www.asmag.com

Things do get more complex on larger public transport vehicles like buses and trains. Johan Slotte, Deputy CEO of Teleste said that issues such as vibration and electromagnetic fields demand specific requirements in the railways, necessitating the need for rail-certified mobile DVRs and NVRs. EN 50155, a common standard covering electronic equipment used on rolling stock for railway applications, is what manufacturers are often required to adhere to. “In addition, products and components need to fulfill certain fire and smoke certificates,” Slotte said. “The obsolescence management of the components is equally important and suppliers often need to guarantee component availability and functionality up to 30 years.” Derek Tai, Product Manager for the Rail Communications Division at Moxa said that while the EN 50155 is an EU standard, IEC 60571 is the global standard. The latter has very specific requirements, in terms of electromagnetic compatibility (EMC), vibration, temperature, and reliability for railway equipment. For example, in most cases “EN 51055 requirement for temperature is from -25 to 70 degrees, Moxa can fulfill the highest standard requirement, from -40 to 70 degrees, which is very unique in IP camera for railway application,” said Tai.

Derek Tai, Product Manager, Rail Communications Division, Moxa Johan Slotte, Deputy CEO, Teleste Musk Li, Product Manager, Dahua Technology Ruslan Salimov, Regional Sales Manager, EMEA, EverFocus Electronics Wallace Ma, Executive Director, TeleEye Group.

Solutions Security

Yet another standard is expected to come out soon. “A new standard, IEC 62580-2, is to be issued by the end of this year or early next year which will list train location as part of the ‘metadata’ that should be taken by the video surveillance system,” said Kevin Shen, Product Manager for Industrial Video Networking Division at Moxa. “This standard will be very specific in the functionality, applications, specifications in areas that should be covered by video surveillance cameras, and also based on the network communication standard IEC 61375.” In other words, the IEC 62580-2 standard could be more detailed in application, to the extent it might even note how clearly a camera can see a certain area in varied lighting conditions. This in turn might help specify the types of cameras to be used in different places, and ensure overall improvement in security.

Lack of UniversaL standard in BUses When it comes to buses, the equipment is largely the same as those used in railways (due to similar harsh environmental conditions like temperature, vibration and dust), to the extent that those who do projects in buses tend to follow the same certification standard as for rolling stock, according to Ruslan Salimov, Regional Sales Manager for EMEA at EverFocus Electronics. Speaking of the Russian market where the company has a strong presence, Salimov noted that there is more demand to secure public transportation such as buses and ambulance cars, as trains and mass rapid transit (MRT) systems come with a significant level of inherent security. “For buses, there is no international standard yet, due to the difficulties in reaching exact specifications of a vehicle,” Salimov said. “Systems integrators (SI) mostly look at their local regulatory requirements and compliance with the EN 50155 standard. If you comply with the railways, you definitely comply for majority of other mobile projects.”

CertifiCation requirements in Different Countries In Asia there is no single certification for mobile surveillance solutions, as different countries maintain their own approval systems. Slotte pointed out certain standards other than EN 50155 that are mandated in the continent. “Suppliers providing rail solutions should be IRIS certified, which ensures proper processes and a sufficient quality as well as obsolescence management and RAMS [Reliability, Availability, Maintainability, Safety analysis],” Slotte said. Giving an instance of the varied certification systems in different countries, Salimov said that in Taiwan there is the Bureau of Standards, Metrology and Inspection (BSMI) that ensures the surveillance solutions in buses adhere to their specifications. But he added that regulations in buses are relatively easier than those in trains, as railways have stricter norms on energy distribution and security. “For a MRT project in Russia, the authorities had demanded

“Some countries in the EU won’t allow the video to be exported via any wired/ wireless communication,” Tai said. “They will fetch the hard disk directly. This is because their local regulations, considering the risk of modifying the video during transmission.” There are also specific mandates on how long the video should be available, which is often different for railway and buses. According to Tai, videos should be stored for minimum three to four days to one week on the train. Videos on the bus are usually retained for a day. There are also countries that need a watermark on video clips. In Asia, different countries have their own systems to approve mobile security solutions.

integration with UPS systems,” said Salimov. “If there is any untoward incident, the system should not go down. It should always have backup power enough for saving all the relevant data and soft reboot option.” Such demands force the solution providers to adapt their firmware and components to the end users’ surge requirements. There are also other requirements. Surveillance videos from the trains are usually exported when trains arrive at terminals, but in some countries there are certain mandates on how this video is handed over.

technicAl SpecificAtionS thAt deMAnd the beSt infrAStructure Given the nature of this vertical, a necessary requirement for onboard systems is sufficient storage and redundancy to enable a minimum storage time. To keep this requirement of storage capacity as low as possible, solid wireless links are needed to transfer data from vehicles to the ground systems. Solid state drives (SSDs) are considered the best option, although they are expensive. “This means that cameras and the storage system should ideally be accessible from the driver panel as well as from the ground system 24/7,” said Slotte. “The security in storage of data as well as in remote access to the monitoring system is essential. The back-up system of the data should exist in the vehicles, but especially in the ground systems, where the data is stored for longer duration.” Ma, on the other hand, believes that the data rate of Wi-Fi is still not sufficient if an organization has a large fleet, recommending the use of wired LAN at depots as a more practical solution. For remote monitoring, he agreed that the options are limited, and 3G/4G solutions are currently the best available options to date. Musk Li, Product Manager at Dahua Technology pointed out that the limitations of

Transmission Technology Optimized for the Environment

SEPTEMBER 2015 ● www.asmag.com

Bandwidth is increasingly a concern in security solutions on trains, as more cameras are being installed in rail carriages. Increasingly, data from passenger information systems (PIS) and public address systems are also being integrated with video and emergency call with a camera, to be delivered to the driver’s room. “Since we have more cameras, there’s also the issue of limited bandwidth,” Kevin Shen, Product Manager for the Industrial Video Networking Division at Moxa said. “Carriages are grouped in threes to form a total of about six groups, with copper cables used as media to carry the data from all the electrical devices. However, the number of pins is limited.” Gigabit Ethernet, which offers bandwidth of 1,000 megapixels per second, needs eight pins as backbone. In addition, there is the issue of peak that impacts videos transmitted on trains. Bandwidth will not always be stable and at times it peaks because the camera continuously records moving objects or the camera is getting too close to the people. Such things lower the compression efficiency of the cameras and hikes bandwidth requirement. Shen said that recent developments in onboard video surveillance systems aid the standardization and multiple applications of Ethernet

for all the onboard electronic/electrical devices.

Ensuring Power Supply for Ideal Performance The EN 50155 standard does not just takes into account vibration and temperature, but also ensures stable power supply. In trains the power is 24 to 110 V DC. Companies such as Moxa design its own power supply systems that make sure there are no interruptions to the surveillance equipment. Its power supply can remain stable even when facing surge during normal operation from -30 to +25 percent. Ring topology is the ideal redundancy solution in trains. If power is off in one Ethernet switch the system will automatically take different route to recovery. But so far the recovery time of standard RSTP is three to five seconds, and different companies have taken up their own proprietary technologies. In many cases there would be video loss of about three to five seconds, which is about 130 to 150 frames. But Moxa’s engineers have ensured that any such loss is limited to 20 milliseconds, which, at the most, is only one frame lost, to ensure video surveillance runs smoothly without system downtime.

cellular network necessitates more focus on the strategy and technology, adding that his company’s products utilize a high-performance encoding algorithm, video coding rate control, synchronous transmission of multi-channel video, and audio coding data priority to meet the requirements. But depending on the location, the infrastructure may not support 3G or 4G, and may be limited to GPRS, restricting performance of the solution. This is particularly relevant in developing economies and areas outside cities. In Salimov’s opinion, high capacity internal storage is a must, as well it would be best to separate meta data, such as GPS/speed/G-sensor information, and video data to provide administrator with all the relevant information using minimal wireless connectivity.

Security of connected deviceS And trAnSMitted dAtA As mobile surveillance solutions increasingly integrate different kinds of applications, there are widespread concerns on how secure the data being transmitted is. Earlier this year, such concerns were up for public debate when news of two researchers demonstrating how they could access a Jeep Cherokee and hijack it from the user went viral. A recent report from the cybersecurity company Kaspersky had also indicated that video surveillance systems are increasingly vulnerable to misuse by third party. Such apprehensions are significant in mobile surveillance solutions as well and industry players agree they should be taken seriously. “All systems should have sufficient safety and security measures to begin with,” said Slotte. “End-to-end encryption is recommended whenever possible. Also the access rights management for the systems should be controlled and well monitored.” Ma agreed that hackers are a real threat in general to video surveillance and mobile DVRs, insisting that professional mobile DVRs should come with robust hackerresistant design. Users too have to be diligent and fully utilize the security features that the products offer. According to Salimov, EverFocus now uses Linux-based software platform for its solutions, which is considered more secure than Microsoft Windows-based applications. Although this is not a traditional approach, he insisted that SIs who deal with mobile and security projects realize that his company’s systems optimize the resources better and provide a higher flexibility for expansion and integration with any other existing solutions (Windows- or Linux-based)

current And upcoMing trendS in the verticAl

SEPTEMBER 2015 ● www.asmag.com

Intelligent systems are a general direction towards which security solutions are moving, and it’s no different in the mobile surveillance vertical. More applications could be integrated together, paving way for more comprehensive solutions. “For example, the mobile DVR on the public bus can use the people counting function to calculate the people flow statistics of each bus station,” said Dahua’s Li. “It can help the bus transportation company to do operation and business analyses and arrange reasonable bus lane and schedule.” According to Tai, if carriages from different manufacturers need to be connected in a train, a standard Ethernet network would also be necessary. To this end, IEC 61375 is a new standard. And Moxa as the International Electrotechnical Commission (IEC) working group is the industry pacesetter for this new standard. In addition, to have higher passenger security level, the next step is to make the video surveillance systems more pervasive, so that it extends seamlessly from the station on to the train itself and can follow activity no mater where it occurs. In order for this to happen, there needs to be a solid wireless train-to-ground (T2G) network that can transmit video data from the onboard IP cameras to the trackside network

and control center. At present one-megapixel cameras are the norm for onboard solutions, but this is expected to move to two megapixels soon, increasing the costs of cabling and storage, and posing more challenges to transmission. There are also attempts toward introducing video analytics in trains, although this has not become popular yet. Slotte added that mobile passenger information systems (PIS) are also becoming a trend. Combining infotainment with PIS could be advantageous to overcome the costs and assist in financing PIS solutions. “Different wireless applications and technologies are now emerging in transport business,” Slotte said. “The capacity to transfer data is increasing remarkably due to the evolution of different wireless technologies. We also see a trend of end-to-end solutions with the same system covering both stations and vehicles which leads to more efficient systems and savings in both capital and operating expenditure.”

SMArt citieS And SAfe citieS to drive growth An increase in the number of applications, the data they supply, and an improved transmission system are definitely in the cards for mobile surveillance solution providers. More effort may also be seen towards seamless integration of different applications. With more smart cities being implemented across the globe and improving infrastructure especially in emerging economies, there is still quite a lot of room for growth in this vertical. It’s just about the right time for security companies to focus on it too, as public concerns on safety are high. With the right government support, these solutions could go a long way in making public transport systems safer and smarter.

Identifying

Challenges Priorities

and

BY Prasanth Aby Thomas

to Keep Concerns at Bay

eing a major entry point in any country, seaports warrant special attention when it comes to security. Besides the obvious concerns such as unauthorized access, cargo theft, and smuggling, post-9/11 terrorist fears and piracy concerns have all made it vital that seaports are given a critical infrastructure status in nations across the globe. There are several important points to consider while providing security surveillance solutions for seaports. But to Louis Noriega, Physical Security and Port Operations Technology Consultant at Automated Port Solutions and former CIO of the Port of Miami who headed the team that implemented security solutions at the port, the one single key requirement that installers need to ensure is that security does not impede the movement of cruise passengers or cargo. “Congestion is the single main problem that seaports face today, in getting containers in and out,” said Noriega. “Anything that may slow down the movement would cause a negative impact on the bottom line of the port and its various partners.”

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Challenges and RequiRements in the VeRtiCal Given the large number of equipment that goes into a seaport security solution and the complexity of integrating them, ensuring that non-intrusive security is indeed a core issue. But from a systems integrator’s (SI) or a solution provider’s perspective, this is only one among the many such concerns.

Juan Echavarria, Business Development Manager, South America, Mobotix Daniel Hearn, Director of Sales, Northeast, Pelco by Schneider Electric

Nick Swift, Business Manager for Maritime Security at Sonardyne International insists that conditions at seaports are some of the most difficult to implement an ideal security system. “The reliable detection of underwater intruders — and discrimination from marine fauna — is a notoriously difficult problem,” said Swift. “Any intruder detection system must work in the most challenging acoustic environment with ports being one of the most complex, thanks to reflections of dockside walls and constant noise from vessel movement.” To Aditya Morampudi, President of the India-based SI Morcorp Solutions, which installed the physical security solutions at the Vizag Seaport, the primary concerns begin from selecting the right equipment that can withstand the conditions and perform at the optimum level. Given the environment, a general norm would be ruggedized industrial products. “The major challenges are mostly related to the environment,” Morampudi said. “Salty air, due to the proximity to sea, dust, and the kind of cargo being handled in the port/terminal will all affect the physical

parameters of the system.” Morampudi added that ensuring proper network connectivity is also a challenge due to the constant activity at a seaport. Accidents such as cable being unearthed or a cargo vehicle snapping an over-ground cable could happen at any time. Natural events such as hurricanes and lightning strikes will also have a magnified impact at seaports. In fact, for an SI, the very nature of seaports and its operation itself would be the major challenge. John Romanowich, CEO of SightLogix, agreed to this. “Ports cover large geographic areas that include varied perimeters that are not capable of being secured the same way as you would approach most perimeter security applications,” Romanowich said. “For example, fences aren’t feasible for the waterside segment of a perimeter. Physical barriers also do not provide the necessary situational awareness over the large areas typical for a port setting. Lighting is often poor or unavailable, and ports are often adjacent to public areas or neighborhoods where pedestrian intruders represent both security and safety threats.” Then there is the issue of old equipment that is already in place. Eric Olson, VP for Marketing at

The role of freight seaports on the global economy makes them an important site to secure.

M Kumaraguru, MD, Maha Asia Aditya Morampudi, President, Morcorp Solutions

PureTech Systems feels that providing integrated security solutions with minimal impact to the system infrastructure to minimize cost is not easy. “Upgrading entire server suites or replacing existing cameras with megapixel models can be very affordable, but once infrastructure (wiring, poles, etc.) requires modification, costs begin to escalate rapidly,” Olson said. “Fortunately, as seaports move to IP-based systems, this provides them the flexibility to more easily upgrade to other IP-based sensors and migrate to faster servers with minimal impact to infrastructure.” Derek Tan, Director of Integrated Solutions Asia at Tyco International, gave a wider picture on the issue as he explained the potential risks that seaports are often vulnerable to. “Most of the security systems deployed [at seaport] are to ensure not only the port compound but also the perimeter and surroundings are safe,” Tan said. “In addition, they need to ensure that the ships and cargos in hold are safe from the multi-faceted threats from land, air, and also the sea.”

Global Growth for Different Reasons SEPTEMBER 2015 ● www.asmag.com

Naturally the markets with the highest growth for seaport security are where the threat is highest. But according to some industry players, almost all parts of the world are experiencing some kind of security concern at present. “The rise of extremist organizations means that the market in the Middle East is growing,” said Nick Swift, Business Manager for Maritime Security at Sonardyne International. “However, tensions in places such as the South China Sea are also driving demand. Elsewhere, drug smuggling in the U.S., South America and Europe, is motivating the authorities to investigate and invest in sophisticated surveillance systems to protect their national borders.”

Getting a bit more specific, Juan Echavarria,Business Development Manager for South America at Mobotix, pointed out that South and Central America could be considered the most important market at present due to several major infrastructural and policy developments in the region. These include the second Panama Canal, the Nicaragua Canal and free trade agreements between countries there. “South America is a major raw material provider of the world and also and emerging market. Therefore, the increase of operations at the ports has a growth a factor of five in the last five to 10 years,” Echavarria said.

Ensuring Security Beyond Land Port authorities and solution providers often give primary importance to landside perimeter protection, as this would seem to be the most vulnerable part of the site. But Nick Swift, Business Manager for Maritime Security at Sonardyne International, pointed out that the seaports are never fully secure until the underwater environment is secured as well. “As surface-based security and surveillance systems become more sophisticated and ‘harder to beat’, criminals and terrorists are looking at exploiting the underwater environment to gain access to harbors and ports,” Swift said. “Many ports have neglected their underwater security requirements, so have a serious gap in their perimeter protection capabilities. They are simply not able to tackle threats posed from access under the water in the form of divers and submersible vehicles.” Daniel Hearn, Director of Sales for Northeast at Pelco by Schneider Electric, touched upon this as he mentioned the equipment that is vital to securing seaports. “Radar detections systems are often used to detect objects

diffeRentiating seCuRity at fReight and PassengeR PoRts Given the nature of operations, security requirements at freight and cruise seaports are quite different. Modern ports are often multifunctional combining both activities, and SIs have to know the specific requirements on each side. For the cruise port, passengers’ safety is always the priority. According to Noriega, security systems at cruise terminals are more relevant than at cargo terminals, indicating that people who come to cruise are on holiday, which is not an absolute necessity. Speaking from Any security issue at a cruise seaport can have a disastrous impact on the industry.

Louis Noriega, Physical Security and Port Operations Technology Consultant, Automated Port Solutions Eric Olson, VP, Marketing, PureTech Systems

Experts points out seaport security systems often neglect the importance of underwater safety. or vessels along and outward into the body of water,” Hearn said. “Sonar systems are often required for detection of objects or humans approaching the port from under water.”

his experience at the Port of Miami, he added that of all the surveillance cameras installed at the site, 80 percent were in and around the cruise terminal. “You’re moving probably around 10,000 people in and out on the same day, getting all the passengers off the ships, through the garages, out of the garages, out of the parking garages, having them pay for the parking and then getting ready for the passengers who are leaving on the same day,” Noriega said. When it comes to freight seaports though, it’s a different ball game altogether. According to James Somerville-Smith, EMEA Channel Marketing Leader at Honeywell Security, securing the perimeter is the primary concern in freight seaports. “Many ports and their warehouses are large and poorly lit, and thus theft and damage to property are the two biggest threats,” SomervilleSmith said. “Moreover, with many port employees relying on heavy machinery such as forklifts, there is an increased risk to health and safety as well as inventory security.” Juan Echavarria, Business Development Manager for South America at Mobotix, added that security solutions at a freight port will also have to specifically consider the cargo specialty of the port. “Is it a ‘dry or wet’ port, is it loading/unloading at the open water (sea or river), or are they going from water to land,” Echavarria said. “In fact there are many possibilities here, and requirements can change day-to-day due to law regulations, operations, or any other factor.” In fact, M Kumaraguru, MD of the Malaysia-based SI Maha Asia, insists that freight seaports require more security precautions than its luxury counterpart. “Cargo shipping is a billion-dollar business, much more in value compared to the cruise shipping industry,” Kumaraguru said. “The movement of goods is crucial to global businesses and economy.” Daniel Hearn, Director of Sales for Northeast at Pelco by Schneider Electric, is of the same opinion. “Freight seaports are much more difficult to secure,” Hearn said. “These facilities typically require

protection of an entire perimeter including personnel access points, railcar access points and vehicle access points.”

the CuRRent teChnology and futuRe tRends The equipment that goes into most modern seaports would naturally include the state-of-the-art security solutions split into centralized and decentralized solutions with analytics at the edges. Somerville-Smith named certain specific equipment that often comes into play at the wharf and channel. “Radar video surveillance solutions are often installed to transmit radar and video to a central security center, which allows port officials to monitor ship traffic in the channel,” SomervilleSmith said. “If a suspicious vessel or individual is identified, then high magnification PTZ cameras can be used to track them and gather more details.” While such equipment is relevant, an increased awareness of potential sophisticated threats and an eye on ROI have heightened the need to improve the options. “3D imaging solution allows greater accuracy, depth, and detail in

LPR system has become an important tool for seaports due to the large numbers of vehicles that go through the terminals every day. James SomervilleSmith, EMEA Channel Marketing Leader, Honeywell Security Nick Swift, Business Manager, Maritime Security, Sonardyne International Derek Tan, Director, Integrated Solutions, Asia, Tyco International

validating the threats,” said Tyco’s Tan. “This saves precious time spent traditionally on physically opening and inspecting each container. This technology can also be applied to enhance precision and coverage during night surveillance.” Other similar solutions include unmanned aerial vehicles (UAVs) that leverage on Bathymetric LiDAR technology for scanning the underwater threats. Pelco’s Hearn added that he expects to see higher resolution multi-imager video cameras in the future. Puretech's Olson also gave his perspective on what to expect, indicating that a move to higher resolution cameras would be a natural shift. “As higher end sensors continue to become more affordable, seaports will add more diverse sensors such as radar, GPS, and long-range acoustic devices (LRAD),” he said. “These sensors will then be enabled to collaborate with the seaport’s existing video management capability for hands-free reaction to events.” Kumaraguru said he expects to see future installations using Power-over-Ethernet (PoE) LED lights that are integrated with cameras.

Varied Roles for Security Equipment at Seaports

SEPTEMBER 2015 ● www.asmag.com

Several different kinds of equipment are part of a typical seaport security installation. Juan Echavarria, Business Development Manager for South America at Mobotix, broadly classifies them based on their function. • Perimeter security: The first and foremost requirement is to secure the area using perimeter barriers, intrusion detectors, and surveillance cameras. • Access control: These mostly include gates, barriers, and equipment for human and vehicle identification. A typical port’s storage and warehouse will also be protected with access control systems. Of course, this would ideally be integrated with the surveillance cameras. • Operations: Equipment is also being used at the port’s cranes and similar sensitive areas to analyze operations, and sometimes even to provide “eyes” in those areas where human access is tough or difficult and even dangerous. In such cases, cameras

converge from their conventional security purpose to prevent accidents and overall operations use. • Underwater operations: Due to the nature of risks at ports, underwater security is increasingly critical. Hence it would be common to use relevant equipment to monitor threats or even any forbidden cargo attached to ships. • Ship traffic control: Electronic security equipment, especially cameras, is often used to monitor a ship’s entry to the ports. In fact, during difficult weather conditions such as heavy rain or fog, cameras are the eyes of the ship commander and control room personnel. • Border control and customs: Ports have the responsibility to make sure they enforce their respective government’s policies on allowing foreign individuals and cargo into the country. To this end, electronic security equipment is an invaluable asset for the authorities to ensure optimum control.

Such a combination could see intelligent lighting systems that could operate independently depending on the conditions and be extremely conducive to operations at sites like seaports.

seaPoRt seCuRity to stay a PRioRity After the 9/11 attacks, air travel took a major hit. But being an inevitable part of modern life, the airline business recovered quickly enough. But if a similar scenario is to come up in the cruise shipping sector, the end-result would be disastrous, according to Noriega. Such a concern is relevant to the cargo shipping industry too. As Kumaraguru and others pointed out, increased growth in global trade necessitates more freight seaports. But this comes under the shadow of terrorism and piracy concerns, demanding stringent security at ports. In short, this vertical is all set to continue growth as the global economy moves forward.

Easing Operations With Video Analytics According the Louis Noriega, Physical Security and Port Operations Technology Consultant at Automated Port Solutions, video analytics is a key to improving the operations at a seaport and boosting the business. “On the operational side of cruise ports, especially in those as busy as the one at Miami, they are using analytics for crowd control, traffic control, etc.,” Noriega said, adding that the scene at a cruise seaport at any point could seem pretty chaotic, given the large numbers of people who are trying to get on and off the vessels. M Kumaraguru, MD of the Malaysia-based SI Maha Asia agreed to this point as he narrated his company’s experience in working for the Westports Seaport in Malaysia. “Options such as license place recognition are important at seaports for several reasons,” said Kumaraguru. “If there is an accident at the location, authorities would want to quickly recognize the vehicles at the spot. The same technology would also be used to keep track of the vehicles bringing cargo into the port.” Aditya Morampudi, President of India-based SI Morcorp Solutions took the point further as he said that operation monitoring systems itself is the major strength of security solutions at seaports, and that it is the single main factor that attracts end users. “We demonstrate to the end user that 60-70 percent use of the security system can be for operations monitoring while 30-40 percent for security monitoring,” Morampudi said. “This helps us look at the ROI of the system and how it helps the organization to earn the money back which has been invested.”

Social Media Marketing

for Security — Is the Investment Worth it?

SEPTEMBER 2015 ● www.asmag.com

BY Israel Gogol, Freelancer

Social media has undoubtedly become a major platform for marketing; however, research shows that the security industry is a bit of an outlier when it comes to this trend.a&s reached out to several companies to hear about their perception of social media marketing and its effectiveness.

n 2014, the Security Industry Association (SIA) released a major study conducted by the Josh Gordon group designed to improve the marketing effectiveness of organizations selling products into the security market. The study, which surveyed 1,090 security managers, systems integrators, and dealers/distributors, found although security buyers search and evaluate information on suppliers’

websites, social media (with the exception of “professional” network LinkedIn) lags far behind trade magazines. Among the key findings of this report was that despite the seemed importance of digital marketing, in practice, security industry customers still tend to rely on trade publications and shun social media. Among the reasons given in the report was that respondents from the security industry

belong to a relatively older age group and that social media seems to be “too exposed” for an industry that deals with security and protecting assets. We reached out to several companies who are actively present on social media platforms to hear from them what benefits social media gives their marketing efforts and why they maintain a presence on social media despite a low adoption rate by the security industry.

Is socIal MedIa MarketIng PIckIng UP? The first question to our interviewees was if they feel there is wide-scale adoption of social media in the security industry. They all agreed that social media is not so popular and widespread adoption has been slow. Despite these setbacks, the consensus is that social media marketing is likely to pick up speed and its adoption rates in the market will grow. Therefore companies establish a presence on social media to prepare for the future. “On balance, our experience currently favors traditional media. We have a great deal of positive experience with printed and electronic trade media. However,

Anna Boudinot, Content Manager, Hikvision USA Alistair Enser, Global Sales Director, Vanderbilt Systems Lena Heden, PR Marketing Manager, Axis Communications Therese Hume, Digital and Social Media Marketing Manager, Oncam Technologies

the demographic of our customers will inevitably change,” said Alistair Enser, Global Sales Director at Vanderbilt Systems. “Social media seems likely to increase given the age of many social media users for whom the use of smartphones and online information is now second nature. It would be foolish to ignore the growing demand for social media and at Vanderbilt we have embraced it and for many of our employees it is second nature.” A similar view was voiced by Rachel Neiman, Director of Marketing Communications at BriefCam: “At this stage of the game, companies can still decide whether to engage in social media. But sharing is rapidly becoming the norm for getting information and soon it won’t even be a question of ‘are you in or are you out.’ Everyone will be in. So, that is the reason for at least creating — and maintaining — a presence, even a minimal one, on social media.”

BenefIts of socIal MedIa MarketIng Social media marketing has huge potential. Unlike trade shows or magazines which require substantial investment and expenses, even small companies with limited resources can use it to reach big audiences around the world. Another advantage is that since it is digital, it is measurable much more than traditional media. Marketers can quickly gain insight into what really interests customers in far greater detail than magazines or trade shows. “The analytics provided by each platform provides an opportunity to see how many impressions, clicks, likes, and shares a post received,” explained Kim Rahfaldt, Public Relations Manager at AMAG Technology. “Each time a post is shared, it receives more impressions. On social media I can see if people are engaging with our content, what type of content receives shares, and use that information to generate similar content to grow our community of followers and share our message.”

Cross-Platform Sharing The large number of social media platforms makes successful marketing challenging. In order to successfully get a message across, cross-platform sharing is necessary. Rachel Neiman, Director of Marketing Communications at BriefCam explained, “Cross platform sharing can bring out the strength of each platform. For example, BriefCam, as a company in the video field, has lots of content on YouTube — but it needs to be shared with the relevant audience and they are not on YouTube. For that reason, Twitter is most beneficial to us for posting videos from our YouTube channel, or for making quick announcements by sharing links to news stories, press announcements, or pages from our company website. Other platforms reach out to specific audiences: new players, like Yo and Meerkat, speak to a young audience. If you are active in China, register for YouKu and Weibo accounts, in the Far East, you’ll want to sign up for Line, if you have a very visual product, get an Instagram account. But in all cases, the idea is to share across platforms.”

fIrst steP: clear strategy Choosing to go on social media in preparation for the future or because “everyone else is there” can also be risky. Without clear priorities and planning such a move will be a waste of resources. “The most important thing companies should do before entering into the social media world is to have a clear strategy. Think about what you would like to accomplish and then execute,” said Therese Hume, Digital and Social Media Marketing Manager at Oncam Technologies. “There are many key values that social media delivers — ranging from increased traffic to your website, increased brand awareness, direct contact with your partners and customers, as well as real-time news and updates. However, the most important aspect is being involved in the conversation — that is, having a view or contributing to a discussion that serves to position you as a subjectmatter expert or thought leader.”

Rachel Neiman, Director, Marketing Communications, BriefCam Kim Rahfaldt, Public Relations Manager, AMAG Technology

Who Uses socIal MedIa?

SEPTEMBER 2015 ● www.asmag.com

Security manufacturers have certainly been the first adopters of social media within the security industry. “More and more manufacturers are practicing content marketing methods by providing useful information on the company’s websites and marketing the content via social media,” explained Eric Olson, VP of Marketing at PureTech Systems. “Right behind the manufacturers, are the consultants and integrators, which are actively using social media, especially LinkedIn,

to search out solutions and learn about the latest technology in an interactive fashion. End users are still at the beginning stages of recognizing the value of engaging in social media focused on security.” Axis Communications is an example of a manufacturer that makes wide use of social media to directly reach partners and customers. “When it comes to discussing technologies and solutions, especially between end users and installers, we see most dialogue taking place on LinkedIn. Axis has a large presence on LinkedIn with our company page having over 34,000 followers and our Axis LinkedIn group over 2,000 members,” described Lena Heden, PR Marketing Manager at Axis Communications. “We started our social media activities on YouTube in 2009 as videos are an ideal format to demonstrate what our products can do. While we see lots of video views on YouTube, engagement via the comment function on this social media platform remains quite limited. Social media channels (e.g., Twitter, LinkedIn, and Facebook) are used, as well as other communication tools like e-mails, phone calls, and events, to promote our digital campaigns.” Axis also employs an out-reaching social media strategy, sharing content with its distributors and partners. Axis implements campaigns on third-party media websites, generating leads for regional sales teams. In addition, Axis also provides supporting materials to partners that they can use in their social media conversations to offer added value. These are, for example, diagrams or a short video showing how to install a specific camera model.

PlatforM of choIce

Choosing the right social media platform is important to make sure your message is reaching the right audience.

With so many available platforms for social media and information sharing, it is important that companies focus on the ones that have the most relevance and impact for them. “LinkedIn is the platform of choice for dealers and integrators. It is definitely where we have the most interaction,” said Anna Boudinot, Content Manager for Hikvision USA. “Twitter is also valuable because it allows us to quickly disseminate short bursts of information — it’s a place where people go to get news. Facebook is important simply because one third of the world’s population has a Facebook account! It’s too significant to neglect. We’ve also found a lot of success using YouTube to share information about products, solutions, and the company itself. Sometimes the best way to tell a story, especially from the perspective of a video

Social Media Integration in the Sales Process Social media can be used for more than marketing — it can be used as a communication tool between companies and partners and clients. Axis Communications has done just that, making social media a part of the sales process to communicate with partners and clients. Lena Heden, PR Marketing Manager at Axis Communications explained, “Social media allows our staff to directly connect with contacts following trade shows, industry conferences, partner events, and other meetings. Social media makes it easy to keep in touch over time. Sometimes a quick question may not seem worth an e-mail but it may seem worth a quick ping via LinkedIn, Facebook, or Twitter. With social media, contacts are more approachable and the frequency of communication typically increases compared to that of more traditional exchanges via e-mail or telephone conference. In addition, social media channels are also viewed as a part of the sales process. Our sales staff are trained to use platforms like LinkedIn and Twitter, just like they would use the phone or e-mail. It’s an additional channel for establishing contact with a customer and it can be used for generating potential sales leads”.

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surveillance manufacturer, is through video.” However, the choice of the platform depends mostly on the target audience. “It really depends on the regions you are operating in,” said Hume. “For example, the United States and Europe tend to focus on LinkedIn, Twitter, and YouTube, as these are the most used platforms. For other regions such as Turkey and Middle East, the focus is on Facebook, as 85 percent of the population use this platform every day to get their news and updates. It’s important to be adaptable, but also to make sure that your messaging is clear and concise across all of these platforms.” LinkedIn was no doubt the platform of choice for our interviewees. “LinkedIn is by far the most effective social media platform,” said PureTech’s Olson. “LinkedIn’s groups feature provides a wide array of forums to share latest product developments, discuss issues, and share learnings. LinkedIn has been successful for the security community because it provides a central platform to create engagement around the problem, versus a specific product. Members of the value chain (e.g., manufacturer, integration, distributor, consultant, end user) can now share their product capabilities, experiences, or problems within this platform.”

Social media platforms such as LinkedIn, Facebook, and Twitter are second nature to millennials, making them a perfect place to disseminate marketing information.

engageMent Is key Engagement is the key term for social media marketing and it’s “holy grail.” It is the process of involving the readers in a conversation as opposed to turning social media into a broadcast channel where users only read content passively. “It is important to listen to social media conversations and to then chime in by adding value to the discussion. Instead of speaking about products directly it is important to speak about challenges and problems and how they can be overcome or solved. This will often include a software partner and systems integrator. Social media conversations are never one-on-one. Many more will follow a conversation than post a comment. It is therefore important to invite others to join the discussion, bring in other viewpoints, and raise new questions,” Axis’ Heden suggested. Despite its current low adoption rate in the security industry, it is safe to assume that it will pick up eventually. People rely on the Internet more and more as a source of information and social media is a natural complement to it. However, to be successful in this medium, companies need to choose the right platforms and also the right people to do the work. Being internet-savvy is not enough; social media marketers should also possess domain knowledge, without it their ability to meaningfully engage their audience will be low and their posts will be irrelevant and even damaging to the company.

Things Leading the

A lot has happened in the eight years since a&sâ&#x20AC;&#x2122; 100th issue in April 2007. Now, as we celebrate our 200th issue, we take a look at what has had the biggest impact on the industry since 2007 to give us the industry we have today. BY Eifeh Strom

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urn back the clock to 2007 and the security industry would look a bit different than it does now. The shift from analog to IP was hitting a lot of roadblocks. Chinese manufacturers like Hikvision Digital Technology and Dahua Technology were relative no ones. Ask an end user what they thought about Chinese products and words like “poor quality” and “unreliable” were common responses. Fast forward eight years and you have yourself a different industry. Rarely will you find a tender spec for an analog solution, as IP has become the surveillance standard. Resolution has entered into the ultra-high resolution range and security is going into the cloud. Those once relatively new Chinese companies have turned the video surveillance industry upside down with their low-cost, quality offerings. And some of security’s biggest names have been surprisingly (or not) acquired by unsuspecting companies. While technology has undoubtedly advanced over the years, actual new, innovative technologies within the security industry have been lacking; this has been observed by security players at trade shows around the world. It is true that resolution has gotten better, compression has gotten smaller, and storage has gotten bigger, but these advances are the result of basic technology laws that note the inevitability of technological progress. Therefore, the real change over the last eight years has been changes in the market. In this article, a&s examines some of these biggest industry game changers since our 100th issue and examines how the security industry has transformed over the last eight years.

China MarkeT To Take The Top SpoT

According to IHS, worldwide security equipment demand will increase 6.8 percent annually to US$125 billion in 2018. The regions with the fastest growth prospects are those with relatively underdeveloped security markets in Asia, Eastern Europe, Africa, and the Middle East. Frost and Sullivan predicts that the value of the Middle East physical security market will reach $10.9 billion by 2020, up from $3 billion in 2014, an incredible growth rate of 23.7 percent, which is more than double the global average rate. They further predict that by 2020 the Middle East will represent 10 percent of the global security market.

Currently, the U.S. is still the top market for security demand; however, Memoori Business Intelligence pointed out that Asian markets, particularly China, are taking market share from North America and the EU. In fact, Memoori predicts that China will be the largest single market by the end of 2020. Right now, the Chinese market is still overwhelmingly analog, but the transition to IP is happening and likely to gain momentum soon. According to Memoori, the Chinese government has invested in a massive program to research the Internet of Things (IoT), which will help push IP in the country and open up opportunities for overseas companies with strong IP technology. This could potentially mean huge opportunities for non-Chinese IP manufacturers. Even though China is pretty saturated with camera makers, the fact is that Chinese IP technology is not quite as mature as it is overseas. There are caveats to this: Conducting business in China is very different than it is in other parts of the world. In order to succeed in this market, overseas companies will have to maneuver their way through local market quirks, which from past experience has not always been easy for multinationals.

CiTieS BeCoMe Safer and SMarTer

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The upsurge in worldwide crime and terrorism along with the increase in urbanization has called attention to the need for safe city initiatives around the world. Safe city projects — which by definition of IHS integrate all security-relevant information obtained from video surveillance, CBRNE (chemical, biological, radiological, nuclear, and explosives) sensors, biometrics, etc., onto a consolidated IT platform — have since become an important application for the security industry with a lot of development potential and is expected to continue to be a strong area of growth for security players in the coming years. In 2011, Frost and Sullivan gave a presentation on growth opportunities for security in safe cities in which they talked about how the migration to IP surveillance was crucial to its implementation, since safe cities center around the integration of various systems throughout a city. But, the slower-than-expected mass adoption of IP surveillance, as well as the global recession, has limited growth. Now that IP surveillance has become standard and the global economy is recovering, more and more governments are implementing safe city initiatives, giving the security industry plenty of opportunities to capitalize on these large-scale projects. The importance of safe city projects can be seen in the

Major M&As From 2007 to Now 2007

Oct.: Schneider Electric completes acquisition of Pelco

2010

Mar.: United Technologies (UTC) completes acquisition of GE Security Dec.: 3M completes acquisition of Cogent Systems

2011

Jul.: S afran completes acquisition of L-1 Identity Solutions Jul.: Xtralis completes acquisition of HeiTel Digital Video Dec.: Tyco International completes acquisition of Visonic

number of major manufacturers that are now offering safe city solutions. Furthermore, safe cities have been a focus topic in the world market. For example, in 2009, the Mexican government, in cooperation with Mexican telecommunications company Telemex and French defense contractor Thales, began the “Ciudad Segura”(Safe City) project. The project included the installation of over 8,000 surveillance cameras around Mexico City, the country’s capital and largest city, and use of Telemex’s entire existing network and new optical fiber network. The project became fully operational in 2012. In 2010, the EU also started an initiative to improve public safety with their SafeCity project. The project, funded by the EU, focused on several key application areas, according to the European Commission’s website. This included decision support, video analytics, data fusion, 3D mapping, road and vehicle sensors, and video surveillance and citizen networks, all tied together through the EU’s FI-WARE generic enablers. Smart cities are also coming about, as smart devices, the IoT, and big data have all become major trends within the industry. IoT especially is helping to drive safe, smart cities by creating an environment of connectivity between different technologies, devices, and systems. Safeguarding CitieS in aSia

Several countries in Asia have really pushed forward plans to develop safe cities. Singapore is among those that have really embraced this concept, launching their Safe City Test Bed project

2012

Mar.: Optex completes acquisition of Raytec

May: Allegion spins off from Ingersoll Rand

2013

2014

2015

Apr.: Infinova completes acquisition of March Networks

May: Avigilon completes acquisition of RedCloud Security

Jul.: Canon Europe completes acquisition of Milestone Systems

Jan.: Avigilon acquires 96 international patents and 25 US and international patent applications from 4 unrelated vendors

Jul.: Tyco Security Products completes acquisition of Exacq Technologies

Jul.: Google completes acquisition of DropCam

Apr.: TKH reaches final agreement to acquire Aasset Security International Jun.: Newbury Investments completes acquisition of Norbain

Jan.: Avigilon completes acquisition of VideoIQ

Aug.: Vicon Industries completes acquisition of IQinVision

Sep.: Tyco International splits into 3 companies

Sep.: Anixter International completes acquisition of Tri-Ed

Dec.: FLIR Systems completes acquisition of Lorex Technology

Oct.: Infinova signs agreement to acquire Swann Communications

in 2013. The year-long project was deployed in four precincts in the country with the goal of helping different agencies achieve better data management, situational awareness, deployment and streamlining of resources, and response time. China has invested a lot in safe city projects. In 2011, the Chinese central government required 650 Chinese cities begin reforming their public security and safety infrastructures with new technologies, according to a 2013 report by Homeland Security Research. The report pointed out that the initiative would create the largest national safe city market in the world, worth a cumulative $138 billion from the period 2012 to 2022. Foreign-based companies will take up an estimated 35 percent of the safe city market share, counting for roughly $46 billion of the cumulative revenue during the projected period. With such a large population and China trying to move rural citizens into more urban settings, safety is a key priority, which should open up many opportunities for security players. Other countries such as India have also put emphasis on safe/ smart city projects. The government of India has plans to roll out 100 smart cities, in what they are calling the Smart Cities Mission, over the next five years. In addition to smart cities, safe city projects are also being rolled out countrywide.

SeCuriTyâ&#x20AC;&#x2122;S neweST TrifeCTa: Canon wiTh MiLeSTone and axiS

As in any industry, consolidation is bound to happen. M&As in the security industry are common as the industry has always been highly fragmented. The last eight years particularly has seen a lot of significant M&A activity, including those of Schneider

Jan.: Avigilon completes acquisition of ObjectVideo patent portfolio

Apr.: Canon Inc. completes acquisition of Axis Communications Apr.: On-Net Surveillance Systems (OnSSI) enters agreement to acquire SeeTec Apr.: Kaba announces merger with Dorma Jun.: Vanderbilt Industries completes acquisition of Siemens Security Products Jun.: Allegion enters agreement to acquire SimonsVoss Technologies Jun.: Hanwha Group completes acquisition of Samsung Techwin Aug.: NICE Systems announces selling of physical security unit to Battery Ventures

Electric and Pelco, UTC and GE Security, Safran and L-1 Identity Solutions, Canon Europe and Milestone Systems, and Canon Inc. and Axis Communications, just to name a few. Whether it be the merging of companies looking to acquire technology, market share, or combine forces to offer a more complete solution, consolidation is expected to continue. While there have been many significant M&As since April 2007 (See our security timeline above for a more complete picture.), easily one of the most impactful was Canonâ&#x20AC;&#x2122;s acquisition of Milestone in June 2014 and Axis in February this year. The Canon acquisition of Milestone came as quite the surprise, mostly since up to that point Canon did not have a strong foothold in the security arena. Canon further stunned the industry when they announced their acquisition of Axis. The acquisition of one of the top 2 video management companies and grandfather of IP video showed security players that Canon is targeting security with guns blazing. Besides the shock of Canon acquiring two of the biggest names in security, there are several factors that play into why this acquisition is so significant. One is that these two companies seemed to be at the top of their game, not in need of a knight in

shining armor to rescue them. There is no questioning that Axis is a market leader in IP technology — the quality and reliability of Axis’ products are undeniable. So why sell to Canon, a company whose presence in the security industry has been relatively nonexistent? The Canon name has been synonymous with excellence in the world of consumer photography, meaning their know-how when it comes to cameras is top notch. Additionally, Canon is a large company with many resources and as a brand under Canon, Axis now has access to those resources. Regardless of whether or not Axis was at the top of their game, further growth for the company would be limited without more outside investment. The same goes for Milestone. Concerns surrounding the formation of this trifecta regarding the continuation of Milestone’s commitment to open standards are understandable, yet likely to be unnecessary. As the industry has shifted to IP, open standards are definitely necessary for integration and going proprietary would just drive users to other vendors. So, for now it seems that Canon will keep to their word in keeping the two companies as independent entities supported by their new parent company. How Canon will do in the security industry post-M&As, we’ll just have to wait and see. However, with the 2020 Summer Olympics to be held in Tokyo, Japan, where the company’s headquarters is, Canon may just be gearing up for what could possibly be a massive project.

no STopping ChineSe ManufaCTurerS

In 2007, Security 50 introduced a new Chinese manufacturer into its ranks: Hikvision Digital Technology, debuting at number 21. The following year another Chinese manufacturer made its Security 50 debut at number 32: Dahua Technology. The impact that Dahua and Hikvision have had on the current video surveillance industry is indisputable. Each year since their debuts these giants have climbed the ranks, overtaking established, well-known global

brands. In only a few short years, Hikivsion had broken into the top 10 and by 2011 placed number 5, breaking into the top 3 last year at number 3. According to IHS, Hikvision currently ranks number 1 in market share in the global surveillance equipment market, holding an astounding 16.3 percent. While not quite as massive, but also impressive, Dahua has made a rapid climb to the top of the Security 50 rankings as well, breaking into the top 10 by 2010 and is expected to break into the top 5 this year. Dahua came in at number 2, in terms of global surveillance equipment market share, according to IHS, with an estimated 5.6 percent in 2014. The leap these companies have made in terms of quality and performance in the past few years has put every surveillance equipment manufacturer on guard. Low prices have created price wars, driving many well-known camera manufacturers to find new target markets and ways of differentiating themselves. One way companies are doing this is by developing end-to-end solutions and vertical-specific solutions. Margins for distributors have also been driven down due to the low price point of Chinese products. Despite an increase in volume sales, low prices have made it difficult for distributors to find that margin, resulting in the need to provide more value-added services to keep competitive. While the effects of Chinese manufacturers can be argued as both good and bad, it seems that the only place Dahua and Hikvision are going is up. Both of these companies have dominated their home market of China, but have also been actively expanding to other markets. In fact, Hikvision just announced the opening of their Canadian branch office, their second branch office in North America. Not only have they been expanding, they have been doing quite well in markets that were previously biased against Chinese products, particularly the high-end, large-scale project markets. As a result, these two giants, as well as other lesser-known Chinese brands, will continue to grow and take more of the global market share. It is now up to the rest of the industry, including multinational companies, to find ways to compete and succeed against them.

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oTher aSian ManufaCTurerS geT knoCked down, BuT wiLL geT up again

Asian manufacturers have been hit the hardest when it comes to how Dahua and Hikvision have impacted the market — those from Korea and Taiwan have especially been affected by these growing pains. Where Korea and Taiwan once had the edge on quality, performance, and technology, Chinese companies have not only caught up but attached an attractive looking price tag

Hikvision Develops Intelligent Systems that Benefit Various Verticals

as well. As a result, many Asian manufacturers have seen sales and revenue decline each year, which has been evident when looking at the Security 50 rankings from 2007 to 2014. It is no secret that Korean companies have had a difficult time adapting to the IP shift of video surveillance. Strong in analog, Korean companies such as CNB Technology have seen declining sales growth caused by both the move to IP and competition brought on by Chinese manufacturers. At its height, CNB ranked in the Security 50 top 20 in both 2011 and 2012, at 14 and 17, respectively; however, as global IP adoption has grown exponentially in the last two years, the company’s sales revenue took a hard hit, falling to number 38 in 2014 with negative 32.1 percent sales growth from 2013. Korea’s strongest security player Samsung Techwin has maintained a top 10 position in the Security 50 rankings since 2011. Even so, the company has been hit hard by the price wars initiated by the Chinese. Once the top video surveillance company in the industry, especially in the entry-level market, Samsung has seen their revenue shrink year by year as companies like Hikvision and Dahua have taken over that market sector. Additionally, with their sale to Hanwha Group at the end of 2014 and name change to Hanwha Techwin, currently in the Korean market only (for now), in late June 2015, how this will affect the company and sales remains to be seen. PriCe WarS Hurt taiWan ManufaCturerS

Taiwanese companies have also been hit hard by price competition and technology changes. The effects of IP are especially noticeable when looking at EverFocus Electronics and VIVOTEK, two very well-known Taiwanese brands. Since its inception, VIVOTEK has focused on network cameras, and as IP adoption has grown so has their revenue. In fact, the company has steadily risen in the ranks of Security 50, from 49 in 2007 to 19 in 2014. In contrast, EverFocus, who through 2011 always ranked higher than VIVOTEK, has continued to slip in the rankings, coming in at 34 in 2014; but has still done reasonably well compared to many other Taiwanese companies. The comparison between these two companies shows the role of IP in the changing market dynamics. Yoko Technology, another well-known Taiwanese company, is one that has had a difficult time coping with the industry changes. The entry of Hikvision and Dahua into the entry-level markets where Yoko was strongest hurt their bottom line. Aside from price competition, the

Over the years, Hikvision has become one of the biggest security companies in the world, having built a significant presence not only in China but also throughout the globe, including North America, Europe, and Asia. Overseas sales picked up around 2010, when the security world began to migrate to IP. “We seized that opportunity, focused on our IP business, and saw explosive growth afterwards,” said Keen Yao, MD at Hikvision. However, sensing that intelligent video, supported with cuttingedge software, is the trend of the future, Hikvision is now moving into software development as well and has launched its intelligent video management system targeting midto high-end users in China. “It differs from typical VMS in that, besides security, it can perform more management functions. It can benefit various verticals, including banks, education, and law enforcement,” Yao said. “In prisons, for example, if there are two people going in and one person coming out, the system can detect that and will immediately alert authorities who can then take action.” Besides intelligence, the Internet of Things is another key trend cited by Hikvision, which has also developed related solutions in response. “IoT is an inevitable trend and will definitely impact security. At the same time, bandwidth has become wider and less expensive, and this will also facilitate the deployment of IoT, which will be even more popular,” he said. “For us, we’ve already launched home applications that integrate video with access control and alarms, allowing users to manage their homes more easily.”

company also had difficulties with the IP change over, which only further hurt the company’s sales revenue. The company has since decided to move away from security as its main business, venturing out into the logistics and hospitality industries. Another Taiwanese company that has had a hard time adapting to the changing security environment is AVTech. Much like Yoko, AVTech was strong in analog but has had a tough time making the switch over to IP successfully. The company’s position in the Security 50 rankings has been slipping year by year, and in the last two years, they have seen negative double-digit revenue growth. Despite this, many Taiwanese companies have adjusted well with the industry changes compared to Korea. Leading Taiwanese companies such as VIVOTEK, EverFocus, Dynacolor, GeoVision, and Merit LILIN have all done relatively well in maintaining and growing their sales revenue.

SMBs CoMe up wiTh ConSuMer and diy produCTS

For a long time the security market ignored the small- and mid-sized business (SMB) market, opting instead to target larger, professional markets like government or enterprise. However, as competition within the industry grew fiercer, companies began looking for new markets to target — enter SMBs. SMBs account for the mass majority of the world’s businesses, and although the budgets are smaller, their need for security still exists. In the last few years, manufacturers have finally opened up to this fact, which is obvious with the number of solutions for SMBs growing each day. The popularity of consumer and DIY surveillance products as of late has also driven more companies to focus on the SMB market. SMBs often do not have an IT department, IT know-how, or budget to install fancy security systems. Therefore, plug-and-play, easy-to-use consumer- and DIY-type products suit SMB needs. Acknowledging this trend, companies like FLIR Systems, who acquired Lorex Technology in 2012, and Infinova, who acquired Swann Communications in 2014, made strategic acquisitions to tap into this market, which has paid off; according to IHS, FLIR and Infinova have been the two largest suppliers of consumer and DIY video surveillance in the last few years.

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The NexT 8 Years It is difficult to predict what will happen in the future, but based on the last eight years, it seems like anything could happen. While M&As will definitely continue to consolidate the industry, we hope that this can spark some much needed innovation. Also, as IP in video surveillance has reached maturity, we will see adoption by the access control market increase at a faster rate than it did in video. As for Chinese companies and their effect on the future market, their aggressive marketing tactics and rapid expansion to all regions of the world will continue to challenge other players. With any luck, the future of the security market will find new and exciting things to drive growth over the next 100 issues.

Dahua Focusing on Solutions for Security and Management Purposes Over the past years, Dahua Technology has enjoyed overwhelming success as a hardware manufacturer. Going forward, the company will also place a strong focus on total solutions that can meet users’ security as well as management needs. “For security, we’ve already built a strong lineup in China covering verticals such as retail and transportation. For overseas, we’ll work harder to make further inroads,” said Michael Chen, VP of Dahua. “In overseas market, we’ll strengthen our support to local SIs by working directly with them or through distributors.” For the non-professional security sector, Dahua will diversify offerings and roll out solutions that can integrate access control and other systems into video, helping users run surveillance as well as manage their operations more effectively. Meanwhile, control through users’ mobile devices has become easier, as smartphones have become more popular than ever. According to Tim Shen, Overseas Marketing Director at Dahua, smart homes, IoT, cloud, and big data are all inevitable trends for the future facing security players, and Dahua is moving towards those technologies. But along the way, there are also challenges that need to be addressed. “One concern has to do with the platform that integrates video, HVAC, home automation, and other systems. Which platform will become the mainstream … that remains to be seen,” Shen said. “Also, for the civilian market, how do we work with local cable or telecom operators to reach out to more users? A clearer business model has yet to emerge.”

The period between a&s International’s 100th and 200th issues, namely over the past eight years, has certainly been eventful for the access control industry. Major security events, coupled with conflicts in certain regions, have kept demands intact even amid the aftermaths of the 2008 financial crisis. But taking a look back, the biggest development in the industry during this time perhaps has been the migration towards IP-based access control, which has driven industry consolidation, created new applications, and prompted industry players to deliver integrated solutions that help meet customers’ various needs. BY William Pao

Froma&s 100 to 200:

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&s International published its 100th issue back in April 2007. Since then, the security world was hit hard by the 2008 financial crisis, which led to a decline in both construction projects and spending on security. According to IHS, a revenue drop was seen for access control players across the globe during that time. “In 2008 in terms of revenues, both the EMEA and American regions declined by about 16 percent, and in 2009, IHS estimated the Asian region declined by about 4.3 percent,” said Blake Kozak, Senior Analyst at the marketing research firm. Yet the access control industry, along with the rest of security, saw a rebound afterwards and proved itself to be somewhat resilient. Europe, meanwhile, saw upgrades to new access control technologies as the main growth driver. Overall, according to IHS’s Blake, the American region was faster to pick up after the financial crisis, expanding by a compound annual growth rate of 0.2 percent from 2008 to 2013, compared to the -1.9 percent for EMEA. Asia, meanwhile, was the most resilient, growing by a CAGR of 4.4 percent from 2008 to 2013. “The security market’s unique characteristics allowed the industry to stay relatively free from the effect of the recession. Security is viewed as a long-term investment and overall

Matt Barnette, President, AMAG

Arjan Bouter, Head of Sales, Nedap Security Management

John Davies, MD, TDSi

necessity,” said Baudouin Genouville, Global Alliances and Integration Manager at Suprema. In fact, the access control industry is driven not so much by economic factors as it is by security-related events, which were aplenty since 2007. In the Middle East, conflicts have triggered greater security concerns. In North America, tragedies such as the Sandy Hook Elementary School shootings and the Boston Marathon bombings have also changed the ways people deal with security, especially at schools and campuses. “Access control, video, and visitor management systems have been widely deployed at most school districts around North America now, and if they haven’t, they are in the planning stages to be done,” said Matt Barnette, President of AMAG.

The security market's unique characteristics allowed the industry to stay relatvely free from the effect of the recession.

A ConsolidAting industry A major development in the access control industry over the past eight years is consolidation. Perhaps the biggest driver for this phenomenon was IP, which allows different systems to be integrated into access control on the same IP network. Companies integrated resources and formed alliances to draft open standards that allow further integration and interoperability. PLAI agent, for example, is a standard developed by the Physical Security Interoperability Alliance to enable better physical and logical access control integration. Standard Offline Access Application, meanwhile, is a standard developed by Assa Abloy, Nedap, Dorma, and Zugang for offline locks. For biometrics, however, all major M&A deals with regard to security applications have basically stopped with 3M’s acquisition of Cogent Systems in 2010

and Safran’s acquisition of L-1 Identity Solutions in 2011. Yet, acquisitions in the non-security field continued to go on. One of the most famous cases was Google’s purchase of facial recognition technology company Viewdle. During this time, several famous merger and acquisition deals also occurred between companies seeking to boost product lines and regional presence. Some major examples include the merger between Kaba and Dorma in 2015 and Allegion’s acquisition of SimonsVoss Technologies also this year. “SimonsVoss is a top brand in Europe with a leadership market position in Germany,” said Patrick Shannon, CFO of Allegion. “By adding SimonsVoss to the Allegion family of brands, we are expanding our technological expertise in Germany, Europe, and the whole EMEA region, as well as strengthening our global leadership in electromechanical convergence.”

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Assa Abloy, meanwhile, has been a major acquirer, making as many as 200 purchases throughout the world since the group’s establishment in 1994 to boost its regional presence. Among the company’s recent purchases were China-based Jiawei in 2014, US-based Ameristar in 2013, UK-based Securistyle Group Holdings in 2012, and Sweden-based Swesafe in 2011. Also, there were several cases in which video surveillance players acquired access control companies to diversify their offerings. Examples included Avigilon’s acquisition of RedCloud in 2013, 3xLOGIC’s acquisition of infinias this year, and Brivo being purchased by Dean Drako, President and CEO of Eagle Eye Networks. Moreover, HID Global has also acquired several companies over the years, for example ActivIdentity, LaserCard, EasyLobby, Codebench, and Lumidigm, to boost its product lines, especially in the area of physical and logical access integration. The most recent example was its acquisition of Quantum Secure in March this year, a leading provider of software solutions for managing identities. Besides M&A deals, there were also well-known cases in which larger firms were split into different businesses. The most famous one was the spinoff of Allegion from Ingersoll Rand in 2013, a move that enabled both companies to concentrate more on their respective businesses. “We believe the spinoff allows both companies to enhance value by allocating capital and deploying resources in a more focused way,” Ingersoll Rand said in a news release announcing the spinoff. In summary, with access control moving more and more towards IP,

more industry consolidation and alliance deals are expected to be seen. In biometrics, on the other hand, more consolidation will occur in the non-security arena. New eNtraNts woN’t Be Kept out

Dean Drako, President and CEO, Eagle Eye Networks

Baudouin Genouville, Global Alliances and Integration Manager, Suprema

Blake Kozak, Senior Analyst, IHS

TCP/IP offers significant advantages in comparison to analog systems with its ability to transfer large amounts of data quickly.

While there are concerns that the consolidation trend will cause customers to be locked into fewer yet larger corporations, others suggest that the access control industry will continue to see new entrants bringing new products and ideas. “Consolidation can restrict the choices for end users, but this will provide opportunities for smaller security system manufacturers and service providers as well, as they can be more agile than the larger consolidated competitors,” said John Davies, MD of TDSi. “They will be able to develop new services or products without the constraints of systems inherent in larger organizations.”

Technology: 2007 To Beyond

In terms of technology, the access control industry has seen a variety of new technologies happening around the door over the past eight years. In essence, the industry has evolved from mechanical locks and keys to electronic locks and then to IP-based systems. In the process, users benefit by being able to do more with their access control than just opening doors.

iP AdoPtion One of the biggest breakthroughs over the years is the migration to IP-based access control, which, as mentioned, has driven further consolidation and standardization in the industry. “TCP/IP offers significant advantages in comparison to old analog systems with its ability to transfer large amounts of data quickly. It also allows systems such as video, access control, fire alarms, and detection to be integrated under a single communication standard,” said Genouville. In fact, since IP allows systems to be integrated all on the same TCP/IP network, IP-based access control has spawned various new applications that are detailed in the following sections. smart Cards

ID cards based on magnetic stripes have been used for decades, but with the passage of time their limitations have become more noticeable — for example their vulnerability to counterfeiting and tendency to waste users lots of time while opening doors. That gave rise to smart cards, which have become more popular and seen increased adoptions at

What the customer wants is a complete service. To meet the need, the channel will need to change to a services model. higher education campuses, government agencies, and other entities. Examples include the FIPS 201 Personal Identity Verification (PIV) cards used by US federal employees, the new US ePassport, and contactless payment cards issued by American Express, MasterCard, and Visa. “Governments often influence the private sector. As a result, the government sector and the use of biometrics and PIV and how it can drive the use of commercial identity verification cards will be something to continue to watch,” Kozak said.

Pierre Lahbabi, Senior VP, Strategy and Development, Morpho

Evan Morgans, Senior PM, Gallagher

BiometriCs

Biometric solutions are seeing wider installations due to their declining prices, increased accuracy, and better user experience. A recent ABI Research report indicates that the global biometrics industry will reach US$26.8 billion in revenues by 2020. Among the typical authenticators, biometrics are the most personal

Larry Reed, CEO, ZKAccess

— they are what makes a person who he or she is. That’s why they are now used to authenticate users in various secure activities, for example mobile payment and online transactions to prevent fraud. “The industry is expecting biometric-enabled cyber security against crime,” said Pierre Lahbabi, Senior VP for Strategy and Development at Morpho. “On the other hand, the extensive biometric awareness and readiness is bringing large opportunities to develop embedded biometric solutions and services in private sectors.” The turn taken in 2013 and 2014 towards massive adoption of smartphones and tablets with fingerprint authentication has driven the growth of biometrics. “It has made security credentials such as fingerprint to be more widely understood and made everyone realize that security can be this simple,” said Genouville. “The general public now views and associates biometrics as a way to protect their privacy and data, instead of viewing it as a point of breach in their privacy.” For years, biometrics were seen as the authentication technology for access into critical environments, such as server rooms, data centers, and sensitive government assets. Now, due to their falling prices and technological improvements, they are deployed at enterprises and offices covering various verticals such as banking, healthcare, and education. Many banks in the emerging economies of Eastern Europe, Latin America, Asia, and the Middle East, for example, have begun using biometrics for authenticating their customers. Currently, fingerprint remains the dominant biometric technology, although facial recognition is picking up steam as well, due to its contactless and easy-to-use features that are especially ideal for facilities, such as hospitals, where hygiene is a top priority.

autheNtiCatioN via moBile deviCes

The year we published our 100th issue, 2007, coincided with a major development in the consumer electronics field — the rollout of the first iPhone. As smartphones evolved over time, they have been added with more features and have allowed users to do more than just making calls, for example opening doors. With more and more user IDs now residing in the mobile device, authentication by way of smartphones via the Near-Field Communications (NFC) or Bluetooth Smart technologies has become increasingly common. “Bluetooth Smart short-range connectivity technology is one of the most exciting drivers for the adoption of mobile devices for access control,” said Simon Siew, Managing Director for Asia Pacific at HID Global. “Combined with gesture technology, it offers the additional user benefit of being able to open doors from a distance by rotating a smartphone while approaching a mobile-enabled reader.” wireless loCKs

SEPTEMBER 2015 ● www.asmag.com

Wireless locks were another major growth sector. The American market was worth about $200 million in 2008 and is now worth more than $320 million as of 2015, according to IHS statistics. There are several benefits offered by wireless locks, which save more energy and provide more flexibility and convenience for users without re-cabling, compared to traditional mechanical locks. “With batterypowered solutions and wireless technologies, users have more options to choose from, more functionality in their locks, and more

compatibility with existing systems,” said Shannon. “Recently, The Aperio Business Units are talking about the environment such as energy efficiencies, and the Aperio wireless technology has been designed to be less energy demanding. And right now we have our campaign ‘forget about keys.’ Since we rely on keys, if the keys get lost, the whole locking systems need to be replaced,” said Gareth Ellams, Aperio Business Development and OEM Accounts Director at Assa Abloy EMEA. “With Aperio products working with our electronic access control partners, a key card or pin will reduce the cost and impact of keys being lost or compromised.” As for the future, growth is expected to continue. “We are now expecting more than 10 percent year-on-year growth from 2015-2019 in North America, mainly due to the residential smart home market trend in the U.S. and Canada,” Kozak said. “In EMEA, the trend has been similar.” “The strong regions in Europe for wireless locks include Scandinavia, U.K., France, Dach, and Benelux, which are adopting wireless technologies and growing substantially. Other regions like Africa, Middle East, Eastern Europe, Spain, and Italy are now starting to adopt wireless technology and developing steadily,” Ellams said. iNtelligeNCe oN the edge

Traditionally, security intelligence resides on the central server in an access control system. But with IP-based access control, intelligence increasingly resides on the edge device. A pioneer in this field, CEM for example has unveiled a reader-controller terminal that has a large internal database in it, keeping the system running even if the communication between the controller and server is down. For users, benefits are manifold. First, as mentioned, intelligence on the edge eliminates single points of failure. Also, these edge devices are self-diagnostic. Any problems on them can be alerted to the administrator through the IP network, no matter where he or she is or what device is being used.

To make that kind of integration possible, a strong central server is needed, as well as clearer division of task among the end-user organization’s security and IT departments. This still remains a challenge. “There is a lack of common ownership over the overall convergence in that security or facilities management still focuses on the physical while IT looks after the logical,” Morgans said. In short, with logical access control, IT, virtual, and physical domains must converge, and suppliers must be able to adapt to the changing environment. Cloud

ideNtitY maNagemeNt

Over the past eight years, access control has seen itself linked with the human resources department to check employees’ time-attendance. As time went on, this functionality has been expanded to include identity management, or managing individuals’ identities within an end-user organization, both in the physical and logical space. As such, convergence of physical and logical access control is desired to increase efficiency for the administrator. For example, once an employee leaves his job, his record will be deleted automatically from both the physical and logical space. “The physical location of a person will help determine what they can access in the logical world,” said Evan Morgans, Senior PM at Gallagher. “For example, if I haven’t entered the building using my access credential, I shouldn’t be able to log into my PC — creating a far more secure converged physical and logical environment.”

Patrick Shannon, CFO, Allegion

Simon Siew, Managing Director, APAC, HID Global

Steve Van Till, CEO, Brivo

One of the major developments in security has been the movement towards the cloud. This has been especially the case for video, with IHS estimating video as a service (VaaS) to reach nearly $1.3 billion globally by 2017. Right now, access control is also moving in that direction, due to the cloud’s various benefits. “In a cloud-based system, rather than each customer having to buy a whole bunch of disk drives, do back up, and manage the infrastructure, basically it can be shared, so the efficiency goes way up,” said Drako. “You also have professionals managing the cyber security. And when you have professionals managing cyber security, you get better cyber security than if you were doing it yourself.” “For access control and enabling mobile platforms, cloud has been a huge driver. We’ve seen that in both residential security and in commercial security,” said Steve Van Till, CEO of Brivo. “Even in identity management, we’ve seen a lot of the convergence that’s going on taking place in cloud. It’s an easier place to do it.” And cloud-based access control is definitely here to stay. “What we’re going to see for the next 10 years is the move to the cloud,” said Barnette. “I do think we are going to see that happen more and more. Video and access control, all that data is going to be in the cloud.” iot aNd wearaBle deviCes

Another major trend is the convergence between access control and the Internet of Things (IoT), which extracts from various sensors data that can be analyzed, referenced, and used to help users achieve various purposes such as energy savings and management efficiency. “One of the characteristics of all IoT devices is that they produce data. So they act as sensors,” said Van Till. “That data, even if they were not created for security purposes, can be harvested for security purposes. It’s got an indirect relevance there.” TDSi’s Davies echoed that statement. “The Internet of Things offers big opportunities, and from a security point of view, this will probably involve greater intelligence at the edge of the network — using all the available input sources and big data to recognize when and where an event has happened or might happen,” he said.

A typical example of convergence with IoT is the integration between access control and building management systems. Lights and air-conditioning, for example, can turn on and off automatically once someone has entered the building. Elevators, meanwhile, can be activated only upon someone entering the premises. Such automation can help users save tremendously on energy. “Security and facility managers often want to be able to link security to other building systems in the future, such as the heating system, the air conditioning system, and the lockers for visitors,” said Arjan Bouter, Head of Sales at Nedap Security Management. “That’s why you can channel signals from different systems into one platform.” Finally, IoT can enhance access control when combined with wearable devices, which are expected to see growing popularity in the future. “The IoT will open the opportunity for new credential form factors such as smart watches, wristbands, and other wearables and smart devices,” said Siew. “These new form factors, coupled with the growing use of both Bluetooth Smart and NFC technologies, make it possible for users to simply ‘tap in’ to more applications than ever before while enabling administrators to leverage an access control ecosystem that provides a seamless user experience.”

VAlue MAtters SEPTEMBER 2015 ● www.asmag.com

With technology evolving, competition becoming more competitive, and users demanding more out of their access control products, it is vital for security players — vendors and channel players alike — to deliver products and solutions that provide value. For channel players, rather than

adhering to their former box-moving mentality, they must start to think about what the customers really want. “The key component of what the customer wants is a comprehensive, complete, and reliable service. And they want that service to run all the times without any issues or headache,” said Drako. “To meet that demand, the channel will need to adapt and move to a services model rather than a selling-of-hardware model.” For vendors seeking to launch new products or solutions, they must keep simplicity and user friendliness in mind. “It’s still debatable what the prevailing wireless and access control technology used in future access control systems will be. But what is certain is that suppliers of next-generation access control technology must provide a simple, affordable upgrade path for their customers,” said Larry Reed, CEO of ZKAccess. “If not, their respective products, no matter how technologically advanced, will remain on their respective drawing boards and in their testing labs.” Ultimately, surviving and winning in the industry all boils down to whether access control players can truly deliver total solutions. “From access control to video to alarm monitoring to identity management, customers are looking for less vendors and more integrated solutions from fewer companies,” Barnette said. “Companies that provide these solutions are what the end users are really looking for today.” Access control has evolved from traditional locks and keys to complex systems that can truly perform wonders. In fact, access control is expected to become a central platform that integrates other systems to offer more efficient management, heightened security, and energy savings for users. A recent market research report published by Persistence Market Research cites that the global electronic access control systems market is expected to grow positively at a CAGR of 12.6 percent between 2014 and 2019. Given the rapid development that this industry is seeing, access control’s future potential is truly infinite.

April 19-21, 2016 Taipei, Taiwan

International Exhibition and Conference Designed for Smart Home Key Players â&#x20AC;˘ Source in complete value chain of smart home, from key components, cameras, devices to integrated systems and solutions â&#x20AC;˘ Meet 200+ premium smart home manufacturers of strong R&D talents, flexibility, and customisation prowess

www.secutech.com/SMAhome

September 2015 – May 2016

WORLD SECURITY EXHIBITION DIRECTORY Exhibitions marked with ★ indicate a&s portfolio's scheduled participation. See a&s personally at these shows. Please refer to the "Yearly Show Calendar" at www.asmag.com/main/global_events.aspx.

September 2015

Seguriexpo • Date: 2015/09/15-09/19 • Venue: La Rural Predio Ferial, Buenos Aires, Argentina • Tel: + 54-11-4514- 1400 • Fax: +54-11-4514-1404 • Email: info@argentina.messefrankfurt.com • URL: www.seguriexpo.com

IFSEC Southeast Asia • Date: 2015/09/02-09/04 • Venue: Kuala Lumpur Convention Center, Malaysia • Tel: +60-3-2176-8788 • Fax: +60-3-2164-8786 • Email: ifsecsea@ubm.com • URL: www.ifsecsea.com

Adria Security Summit 2015 • Date: 2015/09/08-09/10 • Venue: Sarajevo, Bosna I, Hercegovina • Tel: +387-33-788-985 • Fax: +387-33-788-986 • Email: contact@asadria.com • URL: www.asadria.com

ISAF Istanbul

SEPTEMBER 2015 ● www.asmag.com

• Date: 2015/09/17-09/20 • Venue: Istanbul Expo Center, Istanbul, Turkey • Tel: +90-212-503-32-32 • Fax: +90-212-503-32-31 • Email: marmara@marmarafuar.com.tr • URL: www.isaffuari.com October 2015

CPSE • Date: 2015/10/29-11/01 • Venue: Shenzhen International Convention & Exhibition Center, Shenzhen, China

• Tel: +86-755-88309123 • Fax: +86-755-88309111 • Email: zb.yang@cps.com.cn • URL: www.cpse.com.cn November 2015

Sicurezza • Date: 2015/11/03-11/05 • Venue: Fiera Milano (Rho), Milan, Italy • Tel: +39-2-4997-6444 • Fax: +39-2-4997-6252 • Email: giuseppe.garri@fieramilano.it • URL: www.sicurezza.it January 2016

Intersec • Date: 2016/01/17–01/19 • Venue: Dubai International Convention and Exhibition Center, Dubai, UAE • Tel: +971-4-389-4500 • Fax: +971-4-358-5533 • Email: intersec@uae.messefrankfurt.com • URL: www.intersecexpo.com March 2016

Safe Secure Pakistan • Date: 2016/03/01-03/03 • Venue: Pak-China Friendship Center, Islamabad, Pakistan • Tel: +92-21-111-734-266 • Fax: +92-21-324-10723 • Email: info@safesecurepakistan.com • URL: www.safesecurepakistan.com

April 2016

ISC West • Date: 2016/04/06–04/08 • Venue: Sands Expo & Convetion Center, Las Vegas, U.S. • Tel: +1-203-840-5602 • Email: inquiry@isc.reedexpo.com • URL: www.iscwest.com

secutech India 2016 • Date: 2016/04/14-04/16 • Venue: Bombay Exhibition Center, Mumbai, India • Tel: +91 22 4286 3800 • Fax: +91 22 2636 7676 • Email: info@secutechexpo.com • URL: www.secutechindia.co.in

secutech International 2016 • Date: 2016/04/19-04/21 • Venue: Nangang Exhibition Center, Taipei, Taiwan • Tel: +886-2-2659-9080 • Fax: +886-2-2659-9069 • Email: echo.lin@newera.messefrankfurt.com • URL: www.secutech.com

Expo Seguridad • Date: 2016/04/26–04/28 • Venue: Centro Banamex, Mexico City, Mexico • Tel: +52-55-5524-1822 • Fax: +52-55-1084-3070 • Email: marreola@reedexpo.com • URL: www.exposeguridadmexico.com May 2016

Exposec Security Show • Date: 2016/05/10–05/12 2016 • Date: 2016/03/08-03/11 • Venue: Tokyo Big Sight, Tokyo, Japan • Tel: +81-3-3512-5610 • Fax: +81-3-3512-5680 • URL: www.shopbiz.jp/en/ss

• Venue: Sao Paulo Expo Exhibition & Convention Center, Brazil • Tel: +55-11-5585-4355 • Fax: +55-11-5585-4359 • Email: international@cipanet.com.br • URL: www.exposec.tmp.br

Global Brand. Local footprint. With professional recognition and 20+ years experience, Messe Frankfurt New Era Business Media (MFNE, formerly a&s Group) is regarded as a well-known and trusted partner for the security and smart home industry. MFNE provides optimal marketing options in both global and regional markets to meet the needs of security players.

Europe Market Asia Market

Global Market

mySMAhome.com

International Security Expo

14 a&s Magazines 5 sites under asmag.com 2 pad-version magazines 4 Secutech in 5 cities 6 GDSF(global digital security forum) in 10 cities

Brand yourself with our global reach of the integrated marketing network.

Haivision Calypso Enterprise Video Platform

Kantech KT-1 One Door Controller

HID Global ActivID One-Time Password (OTP) Tokens

Features:

• O rganize and prioritize content within custom enterprise channels for simplified navigation • Extensive file-based metadata makes it easy for users to find content • Record up to 50 HD sources in one session, locally or remotely with SRT • Extend platform experience to remote facilities with Calypso Gateway • View real-time snapshots of any activity • Simulated multicast

• O ne door IP controller — supports 2 readers (entry and exit) • Flexible power input — PoE, PoE+, or 12 VDC • Secure 128-bit AES encryption • Single touch-sensitive button for fast and automatic controller enrollment • Compatible with EntraPass security management software v6.02 or higher • Built-in electronic tamper

• O ne-time password • Support provided for multiple security services, standards, and algorithms • Intuitive user interface includes icons and message as visual prompts for user • Full graphical and configuration customization • Cost-efficient — combines high functionality and flexibility at low costs for mass deployment • Integrated into Genuine HID authentication and management solutions

■ Kantech (Tyco Security Products)/U.S. ■ Email: kantechsales@tycoint.com

■ Haivision/Canada ■ Email: sales@haivision.com

■ HID Global/U.S. ■ Email: apetrucci@hidglobal.com

EnGenius Wireless IP Surveillance System EDS8015 Features: • R emovable IRC filter and built-in IR LEDs for monitoring in low light up to 32 ft/10 m • AP’s 360-degree 3-axis pivoting arm locks for precise alignment • Up to 400 mW transmit power sends wireless signals long range • PoE support and included injector extends power to unwired areas up to 328 ft/100 m

• H .264 video provides 1,280 x 720 HD viewing performance with less bandwidth • Camera supports ONVIF standard for easy integration with third-party hardware and software ■ EnGenius Technologies/U.S. ■ Email: partners@engeniustech.com

Axis P5515 PTZ Dome Network Camera

Suprema BioStation 2

Features:

• I nstant matching and authentication • Massive memory capacity — can manage up to 1 million fingerprint templates • Send user data at a rate of 5,000 users per minute • Offers wet and dry fingerprint capture performance suitable for use in harsh environments • IP65 weatherproof • Standard TCP/IP and RS485 interfaces

F ull frame rate, HD video: 1080p, 30 fps Multiple resolutions: SD, HD 720p, HD 1080p Multiple video streaming: Two independent streams Low light operation: Built-in, infrared lighting 20 meters • Vandal resistant: IK10/IP66 rates • Edge analytics: Built-in motion detection

■ Suprema/Korea ■ Email: inquiry@supermainc.com

■ IndigoVision/U.K. ■ Email: sales@indigovision.com

• • • • • •

3 60-degree pan with auto-flip 12x optical zoom HDTV 1080p resolution IP-rated protection against dust and water Easy installation including PoE Affordable price

SEPTEMBER 2015 ● www.asmag.com

■ Axis Communications/Sweden ■ Email: pressoffice@axis.com

Features:

IndigoVision GX HD Bullet Camera Features: • • • •

Hikvision DS-9600NI-I8 Features: • U p to 12 MP resolution recording • Supports H.265/H.264+/H.264 video formats • 2-channel HDMI and 2-channel VGA output interfaces provided, HDMI1 output at up to 4K (3,840 x 2,160) resolution • Dual gigabit network interfaces • 320 Mbps or 200 Mbps (when RAID is enabled) • 8 SATA, 1 eSATA, 2 USB 2.0, 1 USB 3.0 ■ Hikvision Digital Technology/China ■ Email: overseasbusiness@hikvision.com

Sunell 4 MP Vandal Network IR Mini Dome SN-IPV56/41ZDR

Video Intercom System DT31M/TD10

Features:

• 1 0” digital TFT • Capacitive touchscreen with high resolution • Embedded home Wi-Fi module for mobile app control • GSM module is optional via DIY installation • Picture memory or SD video recording • Image quad-split is supported

• • • • • •

Features:

1 /3” progressive scan CMOS 2.8 mm, 3.6 mm optional 4 MP at 15 fps, 3 MP at 25 fps, 1080p at 30 fps Low bitrate, low-light performance 3D NDR, dWDR, ICR ROI, defog, HLC, corridor mode, DIS

■ Video-Tech Electronics/China ■ Email: hebe@v-tec.com.cn

■ Sunell Technology/China ■ Email: sales@sunellsecurity.com

Cynix AHD (2.0) PTZ Camera — X30 Optical Zoom EC-N30WW-A Features: • A HD (1080p) 30 fps high resolution PTZ speed dome camera • Up the coax (UTC) Pelco-C (Coaxitron) control • 360-degree endless pan rotation • WDR, true D&N, DNR

• 2 50 presets, 10 swings, 4 patterns, 8 groups • Vandal-proof, weatherproof (IP67) ■ Cynix/Korea ■ Email: overseas@cynix.co.kr

Daiwon 3 MP 3.6 mm DBPF Lens 36420-3M

HD&P 3G/HD-SDI Fiber Optic Video Extender

Hitachi Full HD Compact Zoom Chassis Camera DI-SC210

Features:

• 3 MP for 1/2.7”, 1/3”, 1/4” CMOS sensors • 3.6 mm focal length is specially designed for HD-IP camera and HD-SDI camera • IR-cut removable (ICR) can be replaced by dual band pass filter • Reliability and durability are increased without using ICR holder • Minimize production process and BOM cost down • Cost effective

• 3 G, HD, and another SDI video transmissions • Error-free SDI pathological pattern operation • More than 30 km transmission distance • Latch locking power connector • Slim package

• • • • • •

■ HD&P/Korea ■ Email: sales@hdnpinc.com

F ull HD 1080/60p, 50p 10x optical zoom lens Minimum sensitivity 0.4 lx Enhanced intensity, whiteout reduction Auto defog Wide dynamic range

■ Hitachi Home Electronics Asia/Japan ■ Email: chassis.cameras@ml.itg.hitachi.co.jp

■ Daiwon Optical/Korea ■ Email: sales@dwopt.com

Visionite NVR System – NV9-F127-2i/ VN100-D2300-4E Features: • O NVIF 2.4/2.6 Profile-S compatible • 4-, 9-, 16-, 25-, 36-, 64-, and 100-channel Full HD display • 4/6/8 TB HDD and full-hardware RAID5 support • Live/replay/record/network simultaneously • Linux & X-Windows with 3D GUI by OpenGL • Easy and fast interactive user interface

Altasec ANVR5025 IP Camera Features: • L inux-embedded, highly reliable standalone NVR • Plug-n-play with integrated cameras and one-click auto installation • Local display and configuration • Up to 5 MP resolution recording • Support H.264 smart dual streaming • Dual Ethernet ports, isolated local network environment for IP cameras ■ Altasec Technology/Taiwan ■ Email: sales@altasec.com

■ Visionite/Korea ■ Email: info@visionite.com

March Networks MegaPX ATM Camera Features: • P urpose-built for ATMs • High dynamic range (HDR) for superior images in bright backlight conditions • Excellent low-light performance • Single self-contained unit that’s easy to install • 2 M12 lens options: 2.8 mm standard lens and 3.7 mm pinhole lens • Complaint with ONVIF’s S profile ■ March Networks (Infinova)/Canada ■ Email: media@marchnetworks.com

Satatya Samas Enterprise Video Management Software Features: • A ll-in-one centralized management and monitoring of 100,000 cameras • Video analytics: Motion detection, missing object, intrusion detection, view tamper • Live monitoring on multiple devices simultaneously • Real-time notification via SMS and e-mail with snapshot

• D atabase level integration with access control • Simultaneous login of multiple users with different user modes like PC, mobiles, tablets ■ Matrix Security Solutions/India ■ Email: customer.care@matrixcomsec.com

SEPTEMBER 2015 ● www.asmag.com

Hundure Fingerprint Standalone Access Controller RAC-970 PEF/ PMF

Everfocus EQN100 Mini IP Cube Camera

Features: • A ccess controller: EM type and fingerprint, or MIFARE type and fingerprint • Supports 950 users/18,000 events • Sensitive touch keypad and blue backlight LCD design • Built-in TCP/IP and RS-485 works with HAMS or standalone operation

• 1 /3” progressive CMOS image sensor delivers 1.3 MP resolution • 30 fps at 1280 x 1024 • Compact design • Easy and flexible installation • Multi-streaming from H.264/MJPEG • ONVIF compliant

■ Hundure Technology/Taiwan ■ Email: overseas@hundure.com

■ EverFocus Electronics/Taiwan ■ Email: marketing@everfocus.com.tw

Features:

asmag.com Product Focus

To view the most updated and complete content for new products, please visit the “Products” section of our website at www.asmag.com, or scan the QR code below! For more information, contact as-pr@newera.messfrankfurt.com

Companies in This Issue Products of the Month • APACER TECHNOLOGY • QNAP SECURITY • SYNOLOGY Cover Story • HIKVISION DIGITAL TECHNOLOGY Product Exploration • DAHUA TECHNOLOGY • EVERFOCUS ELECTRONICS • MOXA • TELEEYE GROUP • TELESTE

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Market Dynamics • AXIS COMMUNICATIONS • BACOM INTERNETWORK • BANGKOK OA COMS • BOSCH SECURITY SYSTEMS • CANON AUSTRALIA • CCTV THAILAND • CENTRAL SECURITY DISTRIBUTION • D-RON TECHNOLOGY • DAHUA TECHNOLOGY • DIGITAL FOCUS • FLIR SYSTEMS • GUTS GROUP OF COMPANY • MATRIX COMSEC • NESS • O-LIN SECURITY

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SURVEILLANCE PAGE NO.

ADVERTISER

MAJOR ITEM

COUNTRY

E-MAIL

ADLINK TECHNOLOGY INC.

SURVEILLANCE

TAIWAN

tw@adlinktech.com

AXIS COMMUNICATIONS AB

NETWORK VIDEO SOLUTIONS

SWEDEN

contact-sap@axis.com

5, 7

DAHUA TECHNOLOGY CO., LTD.

SURVEILLANCE

CHINA

overseas@dahuatech.com

EVERFOCUS ELECTRONICS CORP.

CAMERA / DVR / IP CAMERA

TAIWAN

marketing@everfocus.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

FRONT COVER, 9, 26, 27, 28, 29 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

30, 31

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

SHENZHEN COMMANDER TECHNOLOGY CO., LTD.

CASING

CHINA

sjw@yjdcase.com

SHENZHEN NANFANG HANBANG TECHNOLOGY CO., LTD.

NVR, IP CAMERA

CHINA

sales@hanbangoverseas.com

2, 3

SONY CORPORATION SEMICONDUCTOR GROUP

SEMICONDUCTOR

JAPAN

SONY ELECTRONICS ASIA PACIFIC PTE. LTD.

NETWORK MONITORING SOLUTIONS

SINGAPORE

pro.info@ap.sony.com

WEBGATE INC.

DVR

KOREA

support@webgateinc.com

ACCESS CONTROL PAGE NO.

ADVERTISER

MAJOR ITEM

COUNTRY

E-MAIL

CHIYU TECHNOLOGY CO., LTD

ACCESS CONTROL / TIME ATTENDANCE

TAIWAN

sales@chiyu-t.com.tw

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

PAGE NO.

ADVERTISER

MAJOR ITEM

COUNTRY

E-MAIL

ETHERWAN SYSTEMS, INC.

TRANSMISSION

TAIWAN

info@etherwan.com.tw

OTHER

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The 19th International Exhibition & Conference 19 – 21 April 2016 Taipei, Taiwan

Asia’s Largest Security Solution Show • Source in Broader Scopes of Solution From single device to palette solutions such as transportation solution with integrated parking system, retail solution with PoS system

• Gear up with tech know-how at System Integrator Forum Big data, cloud service in Smart City, and more tech insights and cases from prominent security associations and industry experts