The security industry is heading down the path of metamorphosis, which Webster's defines as "a profound change in form from one stage to the next in the life history of an organism, as from the caterpillar to the pupa and from the pupa to the adult butterfly."
While the security industry is hardly a caterpillar-or a butterfly-it is fair to say that it is moving toward profound changes in the structure of its traditional business model. Several factors are prompting these changes and will likely lead to redefined roles for security integrators as well as new ways of doing business for manufacturers and end users. These modifications are occurring over time, with large corporations leading the way. While much of the industry may currently see nothing different in their day-to-day work, change is on the horizon.
What's Prompting Change?
While it's been said many times, its significance cannot be overstated: The convergence between the security industry and the information technology industry tops the list of factors driving change in security. The security industry has grown up in parallel to the computer industry, with both leveraging the same electrical engineering improvements-from relays to microprocessors-along the way.
These parallel paths have converged in recent years, prompted by technology advances and economics. As computer networks became commonplace in the business environment, it simply made more sense to connect security systems using network pathways rather than by running separate security cabling, especially when connecting buildings in different geographic areas. Recognizing this, security system manufacturers began designing IP-based equipment that could run on the networks and that employed standard computer fare, such as client-server architecture and standard operating systems like Windows and Linux.
Technology Changes Lead to
New Players
While IP-based equipment has led to significant enhancements in security, it has also changed the industry landscape. When security systems began hitching a ride on corporate networks, suddenly the people at the decision-making table shifted. IT staff now took a prominent seat and had significant input about which systems should be selected and allowed to run on their networks.
For security integrators accustomed to working with directors of security, this has meant learning to deal with a whole new set of individuals from the IT department. The integrator must ensure that the needs of the security team are balanced with the concerns of the IT department. Because IT systems are mission critical, IT departments are understandably concerned about possible system failures and have very strict rules and regulations about network use to prevent such occurrences. Because of these concerns, the security integrator who understands both IT networks and security equipment becomes an extremely valuable component in this new equation.
Manufacturers Play a Key Role
While new technologies are pushing IT professionals into the security loop, they are also playing a small but important role in changing the traditional methods of security equipment purchasing. But to understand this trend, one must first review the consolidation of the security equipment manufacturers.
The electronic security industry's growth over the last 15 years, and its continued potential for growth, has not been lost on corporate America. A number of large, multi-national companies, such as Honeywell, General Electric, Tyco and Bosch, have, over the past few years, purchased many manufacturers of electronic security equipment. This is a key part of the security industry's metamorphosis: the transformation from a number of small manufacturers, with specialized offerings, to an oligopoly, where a few major corporations have market control and, consequently, considerable influence. While the large corporations bring many advantages, not the least of which are stability, top-flight engineering skills and the financial wherewithal to launch new, more advanced solutions, they also bring with them changes to the traditional purchasing model.
Today's manufacturers are taking a more active role in the end user relationship, often calling directly on the end user. In contrast to the previous "best of breed" model, where security integrators advised clients on selecting the best of products from a variety of manufacturers, the new model emphasizes branded solutions promoted by the manufacturer.
This is where the rise of IT professionals into the security realm, mentioned above, also plays a role. In the IT world, end users, particularly large corporations, buy directly from manufacturers. While a manufacturer "selling direct" is currently the exception in our industry, many predict a trend toward end users breaking the traditional turnkey security integration package into three components. The first component would be a pure equipment sale. The second component would be a contract to install devices and wiring infrastructure, something already subcontracted by many integrators. The third component would be a service contract to provide design, engineering, commissioning, training and warranty. Each component would carry a different level of risk with a commensurate level of reward. A variation of this approach involving one party providing components one and three is commonly known as providing "parts and smarts."
While this new model has its good points, there is also a potential downside. Manufacturers will work hard to make sure that the best interoperability occurs when a customer stays within their family of products. Consequently, customers will find themselves steered more and more to a particular brand, making the prospect of changing brands or adding products from other vendors a difficult challenge.
New Times Shift Integrator's Role
For security integrators, direct equipment sales from manufacturers to end users means the loss of one component of their traditional role: that of selecting and purchasing equipment on behalf of the client. Instead, the integrator's role becomes more centered on good integrator skill sets such as project management, system engineering, security equipment configuration and programming. In essence, the integrator's role becomes more like that of a consultant. In this new era, integrators' selection will depend more on how good they are at the business of making a company secure than on how good a deal they can get a client on equipment.
This shift to a consulting role will not trouble most security integrators, who know they have specialized knowledge that both IT chiefs and security directors can depend on. As one integrator, Dave Shelton, president of D/A Central Inc. in Oak Park, MI, put it, "IT directors understand networking, but they probably don't understand things like camera design and layout. The application of security equipment raises a multitude of questions that it takes a seasoned professional to work through.
"Understanding which camera works best where or if you want to cover a doorway, what's the best way to do that? If you have windows in the background, what considerations do you deal with? There's a lot of technology in the cameras that can make up for back lighting or dim lighting," said Shelton, who has 35 years of industry experience. "You must be familiar with that technology and know how to deploy it'the list of considerations goes on and on."
A lot still remains to be seen as the security industry charts a new course. What roles will each key industry component play? Only time will tell. But one thing's for sure, it's going to be interesting.
Jim Coleman is president of SecurityNet, a 16-member organization of independent systems integrators offering clients across North America a single, responsible source for meeting all of their electronic security needs. He is also president of Atlanta-based Operational Security Systems, Inc., serving the needs of clients since 1972.
This article was published in the March 2005 issue of ST&D magazine.
