I guess there are three lessons here. The first is that security contracts using DHS grants will often go to the best "name", as long as that company can be competitive. Second, the economy of scale is busy at work in the world of integration. Finally, I think the biggest lesson here is that if private systems integration businesses and VARs want to bid against the Goliaths in the government contracting industry, they may need to consolidate to pool resources â€“ or work with a name that the government already knows. Coincidentally, that's just what PSA members did recently with CondorTech to try to land government projects. Time will tell whether that alliance can bear the fruit that the mid-sized integrator needs to stay competitive.
The Buzz in the Industry
Research on network video, following the Coke espionage case, and more
In case you've been under a rock these last couple years, networked video is a nicely growing market. That point was further reinforced by a not-so-ground-shattering study from IMS Research which puts high percent growth for network video products in the next few years, and which also found strong sales for hybrid IP/analog as systems make their conversions. â€¦ Mike Horgan has joined SIAC's board. Horgan has been very involved with the Wisconsin BFAA and is considered an NBFAA representative to the SIAC board. â€¦ Last week in this newsletter, I mentioned what was going on with HR1 â€“ the house bill would require 100 percent cargo screening. Well, the verdict is out. While the House of Representatives may love this bill, it's not loved back by industry. Here's what you should read to stay abreast on this subject: APTA President William Millar's statement to the Senate, an exclusive Q&A on SecurityInfoWatch.com with Global Security Associates' William McGuire, and a new position column from International Cargo Security Council Chairman Scott Dedic. â€¦ The other thing going on is the Coke internal-espionage case which allegedly saw a worker steal and try to sell Coke secrets of its new BlaK cola to rival PepsiCo (which wasn't interested in becoming involved with the fraud).
The recent weeks have also seen some major acquisitions and moves toward acquisitions. Biggest of all, Bioscrypt and A4Vision will merge in a business venture that reflects major consolidation within the biometrics industry. It wasn't a typical acquisition but an anonymous blue chip bought up the leftover assets of IPIX Corporation's bankruptcy proceedings. No word on who that is just yet, though. Stanley finished the paperwork on its previously announced intent to acquire HSM Electronic Protection, a move that puts Stanley in the commercial/national accounts monitoring space. Mace Security received an offer of purchase from Kelly Capital, an investment corporation. The last of the big buys was Mark Ein's acquisition of Kastle Systems, a company which delivers monitoring and integrated electronic protection to corporate buildings and office parks.
Finally, we close with a look at our most popular stories of the week: