COMPUTER BUSINESS REVIEW

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Issue Date: November 2004 (es)

The rise of the security reseller

November 2004 (es)
The arrival of truly integrated electronic security systems will benefit security managers in a manner far greater than they could ever before consider, argues Mike Smiles. MD of Masc Solutions.

Canvass the majority of security managers regarding the major advantages they expect from the convergence of IT with security and most will indicate more control, efficiency savings and superior security. Pertinently, as has been the case in the US market, new entrants and global standards are increasing demands on the industry's traditional service providers.

Much has been written about the new generation of integrated security products and the significant anticipated end-user benefits of these devices migrating onto the IT network. Indeed, a stroll around any recent electronic security trade show provides an indication just how much security products have changed since the 1990s.

The information technology industry is one of the most competitive industries in the world. Global standards mean global competition. Margins are low, qualified staff costly and product life cycles short. Hardware has become a commodity, subject to ferocious price competition. Software has often crippling development costs. There is a need for global scale or to be first to market, dominating a niche sector, to be confident of being around next year.

The high development costs and short product life cycles within the IT industry has resulted in suppliers requiring huge volume sales to be confident of a return on their investment. Technology firms have grown to serve global markets, this needed their dependence on a network of intermediaries in each local sales territory to become efficient and competent, to sell, integrate and support their products.

Organisations are also under increasing pressure to reduce overhead costs. Despite the increasing emphasis on the protection of workers and company data, staff functions such as the provision of security, are non-revenue generating activities and therefore under constant budgetary pressure. Demands are increasing on security managers who are now expected to broaden their roles within an organisation to include the managing of additional facilities provision, this often includes the performing of a consulting role across the entire organisation. IT managers are progressively more involved in the approval of security systems and in many cases electronic security projects are now funded from within the larger IT budget.

In most instances, the majority of organisations have had tried and tested physical security systems in place for some time. The emphasis has now shifted to include both the protection of information assets.

"As an IT-centric manufacturer whose chosen field of endeavour is security management solutions, we have seen a slow adoption of new converged technology by the traditional security channel", comments Phil Mailes, UK director of Lenel Systems. "Most security companies initially ignored the warnings that the industry was changing and we are now seeing a scramble to embrace the IP revolution. It has been a case of catch-up or lose your client base."

Many of the leading incumbent security companies continue to focus their management and resources on making their existing operations more efficient or are busy digesting their latest acquisition. Mailes concludes: "As reluctant and late adopters, the traditional security channel has, in my view, missed the opportunity of integrating certified database administrators and network specialists into the fabric of the company before these skills were required at the sharp end which is on the customer's site."

Given this background of rapid product innovation, a rise in customer expectations and an abject failure by incumbent installers to embrace this technology, it is no surprise to see the arrival of electronic security's version of the VAR, the security integrator. Rather than supporting vast product ranges, security integrators align themselves with a few strategic suppliers, investing heavily in staff training and developing networks of partnerships to deliver the optimum combination of products and services required by each customer, just like their peers in the IT industry. These talents are becoming a pre-requisite to deliver services upon which the new security business model is based. Free of the burden of huge field forces with progressively more unsuitable skills as well as legacy products and software to support, security integrators can focus on a single-minded customer proposition: peace of mind.

For more information contact Phil Mailes, Lenel Systems International, 0944 1483815234, phil@lenel.com

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