Migration to IP and Integration - What Do End-Users Have to Say?

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An analysis by Matia Grossi, Research Manager, Commercial Security – EMEA, Frost & Sullivan.

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Migration to IP and Integration - What Do End-Users Have to Say?

  1. 1. Migration to IP and Integration -What Do End-Users Have to Say? Matia Grossi, Research Manager Commercial Security - EMEA
  2. 2. Matia Grossi Functional Expertise • Over 8 years of market research, business development and consulting expertise. Particular expertise in: - Competitive, technology and market analysis, including market entry and product launch strategiesPlace photo here - Client management and business developmentShadow - Project managementBackground for Industry Expertiseeffect Experience base covering broad range of sectors, leveraging long-standing working relationships with leading industry participants’ Senior Executives - Physical security - Information technology - DefenceMatia Grossi - ConvergenceResearch Manager What I bring to the TeamPhysical Security & • Deep industry knowledge gained over 5 years of continuous research in various markets worldwideConvergence • Understanding of key technological and market trends shaping the physical security market • Strong recognition in the market as key expert in physical security and convergenceFrost & SullivanEMEA Career Highlights • Extensive expertise in market research and business development. • Frequent speaker at tradeshows and conferences such as IfSec, SEA, Essen and so on. • Frequently quoted in international magazines such as Washington Journal, Herald Tribune, Economist, Milano Finanza, A&S International and so on. Education • MBA International Business, Trieste, Italy • MSc Electronics Engineering, Parma, Italy 2
  3. 3. Focus Points• Customer Research – Demographics and Objectives• End-users’ Views on IP• Decision Makers• Frost & Sullivan View• Key Takeaways 3
  4. 4. Customer Research – Demographics and ObjectivesTotal # of interviews Interviewees (job titles):• Retail (100) • Security Managers/ CSOs (~30%)• Mass Transit (100) • Facility Managers (~30%)• Critical Infrastructure (100) • IT Managers / CIOs (~30%)• Commercial buildings (100) • Other Senior Executives (~10%)Key objectives• Assess end-user awareness of various technologies, systems, and solutions• Evaluate planned spending, purchasing structure and changes in selection/purchasing criteria• Evaluate key business challenges, related to security spending• Assess customer demand for fully converged systems and identify key drivers and restraints• Evaluate customer unmet needs and requirements at a technology and service level and determine sensitivity to pricing versus value 4
  5. 5. Huge Legacy Analogue Infrastructure Hinders Migration to IP Cross-Usage of Video Surveillance Cameras Predominant Technology in the Facility 5% 11% Network IP 66% and Analog Analog 19% 84% Mass Transit Network IP 14% Netw ork / (IP) Neither is Predominant Analog Source: Frost & Sullivan Vendors need be able to offer solutions aimed at supporting end-users (slowly) migrating to IPQuestion: Given that facility utilises both network/internet protocol (IP) video surveillance and analog cameras, which technology does your facility predominately rely? Approximately, how manycameras in your facility are network/internet protocol? How do you expect that your facility will change its primary reliance on network/internet protocol (IP) video surveillance within the next twoyears? 5
  6. 6. Low Overall Growth Potential - Evenly Distributed Between Analog and IP Cameras Usage Trends of Video Surveillance Cameras Increase significantly (+20% or more) Increase somewhat (+ 6% -19% ) Stay roughly the same (+/- up to 5% ) Dont know Network/ Internet Protocol (IP) Video Surveillance 19% 69% 9% Cameras (N=32) Limited Growth Analog Video Surveillance 14% 83% Cameras (N=29) Commercial Buildings Usage Trends of High Resolution Cameras Aware and currently using in facility Aware and currently trialing in facility Aware and will likely adopt in the next 12 months Aware but no plans to adopt in the next 12 months Heard about, but little understanding 53% 26% 11% 5% 5% (Surprisingly) High usage and high growth potential for HD/Megapixel camerasQuestion: Within the next two years, do you expect that the number of network / IP-based (analogue) video surveillance systems installed in your facility will…Question: Please indicate your awareness, usage status, or adoption intent for HD and megapixel cameras. Source: Frost & Sullivan 6
  7. 7. Lack of Integrator Capabilities and Internal Obstacles are Further Slowing Migration to IP and Further Integration Main Restraining Factors External Challenges IT Department Integrator 30% 52% collaboration recommendations Other priorities Other priorities within the within the 23% 21% organization organization Internal Information Challenges Technology Do not understand the 18% 18% Department technology collaboration No clear business case Do not understand (never seen a Total Cost of 4% 12% the technology Ownership) Critical No clear business Mass Transit Integrator Infrastructure case (never seen a 2% 9% total cost of recommendations ownership) Source: Frost & Sullivan Need to educate/ train both end-users and channelQuestion: When considering new physical security technologies for your facility, what do you perceive to be the biggest obstacles? 7
  8. 8. CIO/IT Managers are Already Key Decision Makers when Purchasing Physical Security Equipment Key Decision Makers Top-Two Decision Makers 100% 97% 93% 80% 82% 60% 40% 29% 20% 24% 22% 0% Chief Security Officer Chief Information Facility Manager Chief Operating Officer Chief Financial Officer Chief Executive Officer Officer All Verticals Source: Frost & Sullivan • CIOs/ IT managers speak a “different language” compared to CSO/Security managers • The focus with these new decision makers must be on ROI and solutions not on single systems/ productsQuestion: Given your experience, what is the degree of influence that each party listed below has in determining which brand of technology or type of product is used/adopted in your facility? 8
  9. 9. Technology is a Driving Factor However, Unclear ROI and Lack of Channel Competency are Limiting Migration to IP Video Surveillance Cameras Market: Revenue Forecasts by Analog vs. IP (Global) Analog Cameras Revenues Revenues ($ Million) Network Cameras Revenues 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Better Image Quality (HighLevel of Certainty Res Cameras) Lack of Channel Competency Huge Legacy Infrastructure Benefits of IP in Handling Data and Unclear Benefits Providing Common Platform No clear ROI Market Drivers Market Restraints Level of Importance Source: Frost & Sullivan 9
  10. 10. Key Take-Away’s• The move to IP and integration is happening slowly need to manage the slow migration process• There are limited perceived benefits need to educate both end-users and channel on benefits of IP (e.g. easier integration, managed services)• IT managers (and other CxO) are having an increasing role but they speak a “different language” need to move to a consultative approach to security as crucial element when approaching new IT audience• Focus needs to move from cost of products/systems to the ROI of the solutions offered vendors/integrators need to start exploring further and showcasing the use of security system beyond security (e.g. workforce management, energy efficiency, marketing, business intelligence) 10
  11. 11. Next Steps Request a proposal for Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. (enquiries@frost.com) Join us at our annual Growth, Innovation, and Leadership 2011: A Frost & Sullivan Global Congress on Corporate Growth occurring in London on 17 – 18 May 2011. (www.gil-global.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities (www.frost.com/news) 11
  12. 12. Your Feedback is Important to Us What would you like to see from Frost & Sullivan?Growth Forecasts?Competitive Structure?Emerging Trends?Strategic Recommendations?Other? Please inform us by rating this presentation. Frost & Sullivan’s Growth Consulting can assist with your growth strategies 12
  13. 13. Follow Frost & Sullivan on Facebook, LinkedIn, SlideShareand Twitter http://www.facebook.com/FrostandSullivan http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivan 13
  14. 14. For Additional InformationJoanna Lewandowska Andrew ThorndykeCorporate Communications Manager Sales Manager+48 (0) 22 390 41 46 Aerospace, Defence & Securityjoanna.lewandowska@frost.com +44 (0)7961 772545 andrew.thorndyke@frost.comMatia GrossiResearch ManagerCommercial Security+44 (0) 785 6543 824Matia.Grossi@frost.com 14

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