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a&s International, published by Messe Frankfurt New Era Business Media Ltd., is a monthly professional publication for channel players in the worldwide electronic security industry since 1997. It updates importers, distributors, OEM/ODM searchers, system integrators and other product purchasers on product sources and identifies developments in CCTV, Digital Surveillance, Access Control, Biometrics, Intrusion Alarm, Intercom/Video Doorphone, Home Automation and other fields relevant to electronic security. ISSN 1997-6267 中華郵政北台字第1571號 執照登記為雜誌交寄

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Contents

Nov. 2013

Market Update

Middle East Ready to Regain Its Nerves

The Middle East security market regained ground after the 2008 to 2010 global recession. Many projects in the Middle East are driven by new construction or new infrastructure initiatives, which are generally comprised of a mixture of government and commercial construction projects coming from countries that make up the Gulf Cooperation Council (GCC), particularly the U.A.E., Qatar, Saudi Arabia, and Kuwait.

14

18 Local Perspective toward Middle East Market 20 Total IP Adoption for Middle East 24 Key Verticals & Channels in the Middle East Vertical Market

SecUrity 50

46 52

Regulations Safeguard Bank Security Getting the Most Out of Black Gold

prodUct exploration

34 36 42

Stay Focused and Agile Macroeconomic Uncertainty Still Affects Security Rankings

4 Editor’s Note

2

6 Corporate News

56 62 66 70

What Makes Megapixel Cameras Stand Out Network Storage Caters to Different Applications Standalone NVRs Advance in Market Over PC-Based NVRs Food for Thought: Tips to Accurate VCA


Editor's Note Middle East Ready to Regain Its Nerves In 2012, civil unrest, fluctuating oil prices and demand, and the depreciating US dollar caused video surveillance growth rates to drop to only 5.3 percent, according to IHS. Based on IMF's latest report on Middle East and Central Asia Region, “the resulting cumulative GDP loss for the this region’s oil exporters in 2013 and 2014 could be about 0.5 percent; growth rates would also be lower in the medium term, because of lower export volumes and oil prices. Oil exporting countries, mainly in the GCC, generally face a more benign outlook.”

IMF also highlighted the US Federal Reserve's plan to withdraw the fourth round of quantitative easing (QE4) monetary policy stimulus, which might slow the growth rate of some developing countries. The conflict in Syria also affected the surrounding countries in the region.

The Middle East region in 2013 might continute to be gloomy. To ease these threats, Middle Eastern countries are now actively developing their non-oil sectors, particularly hospitality and higher education, and implementing new open market economic policies to attract foreign direct investments. The 2013/14 security equipment market in the Middle East could regain its nerves, as long as the social and political situation stabilizes.

Please check “Market Update” for the in-depth report. Enjoy!

Jill Lai

jill.lai@newera.messefrankfurt.com

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PRODUCT INDEX

*The index is provided as an additional service. *The publisher does not assume any liability for errors or omissions.

Click to see more information of each product. SURVEILLANCE PAGE NO.

COMPANY

MAJOR ITEM

COUNTRY

E-MAIL

3

DAHUA TECHNOLOGY CO., LTD.

SURVEILLANCE

CHINA

overseas@dahuatech.com

1

HIKVISION DIGITAL TECHNOLOGY CO. LTD.

DVR

CHINA

overseasbusiness@hikvision.com

17

MERIT LILIN ENT CO., LTD.

IP CAMERA / NVR

TAIWAN

sales@meritlilin.com

9

MILESTONE SYSTEMS A/S

SURVEILLANCE

DENMARK

sk@milestonesys.com

19

OB TELECOM ELECTRONICS CO., LTD.

FIBER OPTIC TRANSCEIVER

CHINA

overseas@obtelecom.com

39

QNAP SYSTEMS, INC.

NVR/ STORAGE

TAIWAN

nvr@qnap.com

13

S2 SECURITY CORPORATION

VMS

USA

sales@s2sys.com

43

SHENZHEN FSAN INTELLIGENT TECHNOLOGY CO., LTD. SURVEILLANCE

CHINA

marketing@fsan.cn

59

SHENZHEN TVT DIGITAL TECHNOLOGY CO., LTD.

SURVEILLANCE

CHINA

overseas@tvt.net.cn

55

SUPERIOR ELECTRONICS CORP.

CCTV / ACCESS CONTROL / SENSORS

TAIWAN

info@superior-elec.com

41

SURVEON TECHNOLOGY INC.

IP SOLUTION

TAIWAN

sales@surveon.com

23

TECHBOARD S.R.L.

SURVEILLANCE

ITALY

Info.syac@techboard.it

33

VIDEO SECURITY, INC.

CAMERA/ SPEED DOME

TAIWAN

vdi@vdicctv.com

27

VISUAL VISION CO., LTD.

SURVEILLANCE

KOREA

sales@v-visiontech.com

45

ZERO ONE TECHNOLOGY CO., LTD.

IP CAMERA/NVR/IVS

TAIWAN

ipnc@zot.com.tw

E-MAIL

ACCESS CONTROL PAGE NO.

COMPANY

MAJOR ITEM

COUNTRY

11

CEM SYSTEMS

ACCESS CONTROL

UNITED KINGDOM cem.info@tycoint.com

7

FINGERTEC WORLDWIDE SDN. BHD.

FINGERPRINT

MALAYSIA

info@fingertec.com

31

GIGA-TMS INC.

RFID MODULE / LOCK / READER

TAIWAN

promag@gigatms.com.tw

29

ZKTECO INC.

BIOMETRIC, ATTENDANCE

CHINA

sales@zkteco.com

PAGE NO.

COMPANY

MAJOR ITEM

COUNTRY

E-MAIL

49

TAIWAN EXTERNAL TRADE DEVELOPMENT COUNCIL, TAITRA ASSOCIATION

TAIWAN

taitra@taitra.org.tw

OTHER

Companies are responsible for their own product information. The publisher is not liable for any legal, patent or trademark disputes from companies or among companies.


Corporate News Milestone Enjoys No.1 VMS Ranking in EMEA Milestone Systems is estimated to have had the highest revenues for VMS software in EMEA in 2012 and equal highest revenues in the world, according to IMS Research’s (an IHS company) recent report of “2012 World Market for CCTV and Video Surveillance Equipment”. Milestone Systems has been ranked as the No. 1 vendor in the EMEA regions, and shared the number one position globally with Genetec for the VMS market.

Dubai’s Grosvenor House Achieves Security Excellence with Hikvision One of the world’s largest man-made marinas, the Dubai Marina in the U.A.E. encompasses a blend of private, public, and commercial interests, and is also known as the tallest block in the world. Prominently located among this cluster is the Grosvenor House Dubai — the first luxury hotel built in the Dubai Marina. While these amenities promised state-of-the-art luxury and service, the Grosvenor House required equally state-of-the-art security to ensure the well-being of its valuable guests. Hikvision, a global video surveillance solution provider, was selected to help complete this project. In particular, the lighting condition posed challenges in the hotel’s main entrance area. As such, the Hikvision’s 1.3-megapixel WDR dome camera was chosen to overcome these potential pitfalls. The dome camera is required to face directly outside to accurately identify incoming and outgoing customers. Therefore, this camera faces the brunt of direct sunlight in the day and near total darkness in the evening. Notwithstanding, its 1.3-megapixel (1,280 x 960) resolution provides the needed image quality and the 120dB WDR provides the technology to overcome these issues with flying colors. Other surveillance equipment such as WDR box cameras and 440 low-illumination ICR dome cameras were strategically placed throughout the hotel’s two towers, tasked with different environment and lighting conditions. In addition, the hybrid standalone DVR was chosen, allowing the ability to utilize both analog and IP cameras.

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Solar-Powered Radar and Video Surveillance Solution Completes Trial in Abu Dhabi Navtech Radar, the designer and manufacturer of commercial millimeter wave intelligent radar solutions for outdoor commercial applications, has completed a proof-of-concept trial with their integration partner Alliance Security, a division of Abu Dhabi-based alliance traffic systems, for a fully integrated radar and video surevillance site surveillance solution entirely run by solar energy. The millimeter surveillance radar system is ideal when integrated with the latest video surveillance and solar panel technology. The complete solution is specifically designed to enable full site surveillance in some of the most remote and challenging locations as the radar has a low power consumption that draws only 18 to 20 watts and is able to perform at up to 65 degrees Celsius.


Corporate News UAE Taxi Company Turns to Fingerprints for Time and Attendance Management Arabia Taxi Group (ATG), a taxi company in the U.A.E. with employees located in five different emirates, recently turned to Fingertec to develop a centralized attendance management system. Fingertec’s local reseller, Mobisat IT Solutions, was chosen to help ATG identify needs and possible obstacles and installed the solution. Mobisat recommended ATG to install Fingertec’s fingerprint time and attendance and door access devices that come with various verification modes, including fingerprints, smart cards, and passwords. ATG employees frequently transfer within branches, clock in and out of different branches, and have three different work schedules. These conundrums meant the taxi company needed a centralized system to generate required reports. Furthermore, 75 percent of the staff has hard-toread fingerprints due to sustained wear and tear from taxi repairing. ATG was not interested in using RFID cards or facial recognition; hence Mobisat provided them with a multi-modal biometric solution. The data is to be collected from the head office, and then the required reports will be generated from Fingertec’s management software. Initially, Mobisat installed one system at the Dubai office, and after its successful implementation, the remaining five branches followed suit.

ZKTeco Provides Attendance Management Solutions for Cleanco in U.A.E. Cleanco reigned as the U.A.E.'s premier industrial and commercial cleaning and facility management company. Cleanco was established in 1987 with 10 employees. Now the employees are over 11,000 people. The company has a reputed name in the U.A.E. for its professional services in the field of general cleaning contractors. Cleanco's staff works in different locations all over the U.A.E. As the corporate executives need to manage their staff's daily and weekly attendance details, it is impractical to set an office at every site. They required a system that is able to monitor and manage all staff attendance at all branches. Meanwhile, staff attendance data can be delivered to headquarters in a timely manner. Based on their requirements, ZKTeco recommended its fingerprint reader for time and attendance, which can easily realize client's requirement with very small data usage of GPRS monthly. The client is using more than 60 units of this biometric reader at their different customers' locations all over the U.A.E. including Dubai International Airport, DAFZA, Dubai Customs, and Jumeirah Beach Hotel for collecting their staff's daily attendance details. By using the system, the client can directly communicate with GPRS terminals. Now, collecting data into HR and payroll and evaluating employees' attendance has become much easier.

8

French Luxury Retailer in Dubai Opts for IP-Based Surveillance French department store chain Galeries Lafayette, popularly known as France’s leading fashion house and one of the top 100 global retailers, opened its first department store in the Middle East in Dubai Mall. The French department store wanted to deploy the latest IP-based surveillance system available, that would not only satisfy the local security requirements but also increase their ability to run numerous software applications including intelligent and analytic software video packages. Exceptional image quality has always been an absolute requirement for the department store, but in this case, the extreme backlight environment in certain key areas of the store posed an even greater challenge to the system. A total integrated security solution was designed and implemented by Axis Communications’ local partner, Secutronic Dubai. A comprehensive network video surveillance system including Axis 2-megapixel cameras, fixed dome, and PTZ cameras were installed with Milestone's VMS to secure the premises and ensure enhanced safety and security of both employees and customers. The new network video system met all the client’s highly specific security design including reliability, flexibility, and local support.


Corporate News Mackeen Technology and Vodafone Qatar Sign Strategic Partnership Agreement to Provide Business Solutions for Companies Mackeen Technology, one of the fastest growing technology companies in Qatar, and Vodafone Qatar have formed a strategic partnership to deploy corporate business solutions targeting Qatar’s smalland-medium enterprises (SMEs).Under the terms of the partnership, Vodafone will leverage Mackeen’s extensive ties with the local SME sector to roll out its new business solutions. The partnership reflects Vodafone’s commitment to support Qatar’s National Vision 2030 by introducing solutions that can significantly enhance commercial productivity of businesses.

Infinova Expands in the Middle East Infinova and Fibertron team up to doubly secure intrusion into the most vulnerable area as per a customer perspective, the perimeter walls of their property. Infinova and Fibertron will work together to provide its customers one–stop solution for HD IP video surveillance and fiber-optic intrusion detection system. Infinova and Fibertron together have several installations across ministries of foreign affairs and embassies across the Middle East.

G4S Extends Security Contract for Baghdad Airport Global security and outsourcing group G4S has been awarded a two year extension to its contract to provide aviation security at Baghdad International Airport (BIAP).The US$22.5 million per annum contract, which was awarded by the Iraq Ministry of Transport to G4S Risk Management will bring the full contract period to a five-year term. The G4S team at the BIAP has worked closely with the Iraqi Civil Aviation Authority and the Iraqi Government since January 2010 to develop the Iraqi Civil Aviation’s capability and international credibility.

Abu Dhabi Police Upgrades Public Safety with PSIM Solution CNL Software, a world supplier in PSIM software, was selected by ATECO, a U.A.E.-based systems integrator, to provide the integration and management platform for the Abu Dhabi Police (ADP) GHQ. This latest initiative will enable ADP to make better use of their systems, by consolidating the large number of disparate video surveillance and security systems into a single unified security management solution. It will provide a single view of all assets on one mapping surface, permitting operators to select and control cameras using a single set of controls irrespective of the manufacturer of the camera, DVR, NVR, or VMS. The solution will connect 19 remote locations, bringing together systems from manufacturers including Milestone, Genetec, Geutebruck, VDG DivaShell, Vanguard, Kaba, Solarwinds, and ESRI. Additionally, it will provide system health care monitoring, providing notification of any device failure or symptoms leading to the failure of any device on their security network. This will enable ADP to proactively manage the maintenance of their entire estate of systems.

10


Intelligent Touch Terminal VoIP Intercom

IP Reader & Controller

emerald emerald™ is a multi functional intelligent access terminal that is revolutionising the security industry. With its sleek design and state of the art custom LCD touch screen, emerald is a powerful card reader and controller in one, featuring fully integrated Voice over IP (VoIP) intercom and a range of Remote Applications that provide a whole new multifaceted access control experience. emerald uniquely opens emerald™ – The industry’s most multifunctional intelligent access terminal.

Visit us at Intersec, stand number SA/ 305C.

For more information contact us on: T: +44 (0)28 9045 6767 E: cem.info@tycoint.com or visit us at www.cemsys.com/emerald © 2012 Tyco Security Products and its Respective Companies. All Rights Reserved.

Remote Applications


Corporate News CEM Safeguards King Abdulaziz International Airport CEM Systems, part of Tyco Security Products, is pleased to announce that the CEM security management system has been successfully installed at Saudia Aerospace Engineering Industries (SAEI) main base at King Abdulaziz International Airport in Jeddah. SAEI joins leading airports and aviation maintenance facilities around the world where the CEM system is providing paramount security. “CEM’s intelligent readers provide access control restrictions to highly secure airside areas such as administration offices and aircraft hangers, while CEM biometric readers enable us to control staff access to our airside warehouse. We are very happy with the system, which is set to grow and expand further,” said Mr. Riyadh Bakedo, Director Plant and Equipment Maintenance from Saudia Aerospace Engineering Industries. As an all-in-one Tyco Security products solution, SAEI also has over 350 American Dynamics IP cameras installed to secure its maintenance base. NVRs are also utilized to provide a powerful, high-performance video management solution.

ARINC Selected for Security Solution at Doha International Airport The New Doha International Airport (NDIA) has chosen ARINC EMEA to design and build their integrated airport security solutions. The contract for the 40-square-kilometer site covers more than 100 buildings which will have the capacity to cater to an annual 45 million passengers. Headquartered in Dubai, ARINC EMEA established major system integration contracts at three of the largest airport construction projects in the Middle East — Doha, Cairo and Dubai. ARINC has already been providing protection for millions of passengers daily who use public transit systems and airports throughout the US, and a number of US government, military, chemical, transportation, and petrochemical installations, including seaports and airports.

Sentry360 Expands to Africa, the Middle East, and Europe Sentry360, one of the fastest growing megapixel surveillance camera developers, is announcing their international expansion to venture new partnerships and expand their brand to the EMEA market. This undertaking, ensuring several new distribution and integration partners, is beginning in Dubai and Istanbul, Turkey.

Middle East ID Program Smartens Up Identive Group announced that it has received an order for more than 300,000 small USB smart card readers to support a national electronic ID card program in the Middle East. The order was estimated to be shipped during the first quarter of 2013. The readers were to be used by citizens to enable secure access to e-government and e-administration applications, as well as to digitally sign documents. Many countries around the world are in the process of implementing electronic identity card programs to decrease identity fraud, manage access to public online services, and reduce administrative costs, said Manfred Mueller, COO and Executive VP of Identification Products at Identive.

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Intersec Stand S2-802C

15,000 systems in more than 65 Countries Advanced, Browser-Based IP Video Management Solutions (VMS) IP Access Control, Integrated Security Management Solutions (SMS) IT Data Centre Security and Temperature Monitoring

• Powerful Forensic Desktop Search • Integrated Alarms and Video Events • Web Browser-Based Ease of Use • Scalable to Any Size—Large or Small

S2 Security SMS and VMS systems are the security management choice for enterprises throughout MENA, including Oil & Gas, MOD, Airlines, Hotels, Utilities, Hospitals, Shopping Centres and more. Visit us at Intersec Stand S2-802C

S2 Security Corporation One Speen Street, Framingham, MA 01701, USA

Tel: +1 (508) 663-2500 Fax: +1 (508) 663-2512

www.s2sys.com Sales@s2sys.com


Market Update The Middle East security market regained ground after the 2008 to 2010 global recession. Many projects in the Middle East are driven by new construction or new infrastructure initiatives, which are generally comprised of a mixture of government and commercial construction projects coming from countries that make up the Gulf Cooperation Council (GCC), particularly the U.A.E., Qatar, Saudi Arabia, and Kuwait. However, in 2012, civil unrest, fluctuating oil prices and demand, and the falling US dollar caused video surveillance growth rates to fall to only 5.3 percent. Middle Eastern countries are now actively developing their non-oil sectors, particularly hospitality and higher education, and implementing new open market economic policies to attract foreign direct investment. The 2013 security equipment market in the Middle East is now ready to regain its nerves, as long as the social and political situation stabilizes.

14

T

he Middle East video surveillance and video surveillance equipment market has reached US$320 million in annual revenue during 2012, according to research from IHS, a leading global source of critical information and insight. The Middle East has been one of the fastest growing regions in the world for video surveillance equipment in recent years, propelled by high levels of construction spending, as well as government spending on infrastructure as cities have grown. The global financial crisis around 2008 had an impact on the region’s growth, as it did across the whole world, but continued production and strong demand for oil helped largely maintain government budgets in the Middle East. As a result, the impact on video surveillance equipment revenue wasn’t as great as seen elsewhere in the world. The fact that the Middle East is one of the greatest adopters of network video surveillance technology also helped to keep the market growing. Having tipped in 2011 (higher revenue for network surveillance than for analog surveillance equipment) almost 60 percent of equipment revenue in 2012 came from network video surveillance products and the proportion is still rising. Each new installation has greater technological capability, but also higher cost, than the “old” analog technology.


Middle East Ready to

Regain Its Nerves n BY DaviD Green, Senior analySt of viDeo Surveillance & Security ServiceS at iHS

Dramatic SliDe in 2012 However, since 2010 the Middle East economy and the video surveillance market have faced more uncertain times. As IHS reassesses the market, countries in the region face two major hurdles to overcome — the ongoing civil unrest that started with the Arab Spring at the end of 2010, and the decline in both oil prices and production that underpins the region’s economy. Having held true to IHS forecasts for many years, growth rates for revenue from video

surveillance equipment in the Middle East fell dramatically in 2012 due to three unforeseen circumstances — the civil unrest in the region, the fall in oil price and production, and the fall in the US dollar which means 2012 data is skewed downwards in comparison with 2011. Looking back at the forecast made at the beginning of 2011, the expected year-on-year growth rate for 2012 was expected to be at 17.4 percent, but the combined effect of a much weaker dollar value, falling oil prices, and civil unrest actually caused growth rates to fall to only 5.3 percent instead.

Social turmoil anD changeS in oil Price make 2013 uncertain The region continues to search for stability and recovery from the Arab Spring revolutions, with political turbulence and social unrest

15


Market Update showing little sign of abating at present. Some countries such as Yemen have struggled through their respective political transitions, weighing down their recoveries and growth prospects for 2013. Other countries such as Jordan, which managed to escape full revolt with self-prescribed political reforms, also face ongoing political tensions and turbulence that have stunted the rebound for crucial activities such as tourism and investment. Meanwhile, the ongoing civil war in Syria and Iran’s standoff with the West over its nuclear program look set to cast a shadow over the region for much of 2013, with dire consequences for their respective economies. One long-term trend that can be expected though, is that security will be at the forefront of any new government’s mind throughout the region. Whilst spending slows during times of turbulence as focus shifts onto higher priorities, once any stability reappears, then spending on surveillance projects such as Safe City initiatives is likely to increase. However, governments will only be in a position to spend budget on security if the overall economy is not too badly affected by changes in oil pricing and production. One of the market indicators that can be used to loosely track security

Middle East Video Surveillance Equipment Market — Year-On-Year Revenue Growth (%)

Source: IHS

spending is based on a country’s GDP and its governmental budget. Real GDP is forecast to slow in 2013 in accordance with an assumption that Brent oil prices will fall to an average of $103 a barrel over the year. Oil-exporting countries, especially in the GCC, will see softer headline growth as oil output is curbed in line with lower prices and still-weak demand. GDP growth should bounce back somewhat in 2014 and 2015, although much will depend on regional geopolitical developments and outlook for the global economy. Of the largest countries by equipment sales, Qatar is likely to be the most affected since oil production accounts for over 50 percent of its GDP and around 70 percent of governmental revenues. Saudi Arabia will also be impacted, although its typically more cautious approach to production estimates means it will not be as badly affected.

non-oil-reliant economieS to grow

▲David Green, Senior Analyst of Video Surveillance & Security Services, IHS

16

Elsewhere, it’s clear that non-oil-reliant economies will prosper more in the region — and fortunately for the security market the biggest countries for video surveillance

sales tend to fit this category. Turkey remains the largest country for video surveillance equipment revenue and will likely remain so for the foreseeable future. Turkey has seven cities with a population greater than 1 million people and ongoing government spending on city surveillance and infrastructure is forecast to stay strong. Meanwhile, GDP in the U.A.E. is only 25 percent dependant on oil production, with its economy more closely linked with the Western banking world. Here, the ongoing gradual recovery in the Western economy has helped construction spending to rise once again, stimulating the security market.

SecuritY remainS Strong So despite the clear short-term impact from changes in oil markets and from civil unrest, the Middle East market is already showing signs of recovery in terms of security spending levels and IHS forecasted growth in the video surveillance market to return to an upwards curve again in 2013 — even if it will take until 2015 to get back to the levels of annual increase seen before 2012.


Market Update

Local Perspective toward Middle East Market Aditya Sahaya, Director of Business Development for Prologix Distribution, a leading value-added IT and security distributor in the Middle East and North African region comments on the current Middle East market. n Source: Prologix Distribution

W

henever there is social instability, surveillance demand increases. I would say people in the Middle East increase their demand for surveillance year by year. To be more secure, people might need cameras with low-light sensitivity and IR cameras for nighttime surveillance. Both products are extremely popular in the Middle East. So is the access control product. The access control management system can control video surveillance, which is in high demand for campus security. The growth of the government sector in the non Gulf Cooperation Council (GCC) countries appeared to slow down slightly this year. But, the government spending in the GCC countries is continuing to grow very actively, such as in the U.A.E. The number of big projects in the U.A.E. is increasing, and are in need of video surveillance, access control, and other integrated systems. Strong non-oil sectors are hospitality (the biggest), closely followed by higher education, such as universities. These sectors grew stronger than last year. Sales in Syrian regions have dropped due to the recent conflicts and people are watching it very closely. If there is a change in situation there, there are usually external factors or political factors being played. Any change will greatly affect the region. People are very cautious when it comes to

18

that subject. Countries trading with Syria are definitely and especially affected. It is a very good market; however, currently not driving revenue. We sell most of our products to GCC countries — U.A.E., Saudi Arabia, Oman, Bahrain, and also Libya, where there are a lot of demands for video surveillance, access control, and networking devices and storage. Saudi Arabia has the highest growth among all these countries and it is also the country with the largest population and biggest industrial and commercial sectors. A lot of projects are going on in Saudi Arabia too. North African countries also grew quite significantly, but not as much as the GCC countries. Fastest growing West African countries are Nigeria and Ghana, and fastest growing East African countries are Kenya and Tanzania. On the other side of Africa, Angola is growing really fast and so is Congo. In fact,

â–˛Aditya Sahaya, Director of Business Development, Prologix Distribution

government projects are coming in really fast from Congo. The level of requirements has changed, specifications have changed, and now Congo is investing more heavily in higher end systems. Previously, they went for lower-end systems. So this is the market change.

About Prologix Distribution Prologix Distribution focuses on IP-based security product distribution, such as IP-based cameras and NVRs, which are usually required by enterprise projects. Its key vertical market spans from government, defense, law enforcement, and enterprises, and also works closely with video surveillance system integrators of the hospitality sector for security solutions. Prologix focuses on providing video surveillance solutions over wireless, whether for point to multipoint last mile camera connectivity or gigabit backhaul solutions for transferring data to the command control center. Prologix has worked closely with its integration partners across MEA region on citywide surveillance projects, primarily setup on a wireless network. It distributes the products of Cambium Networks, Agilent Technologies, Ideal Networks, Secura, Koukaam, NVT, NXTID, Redline, and Empirix in the MEA region.


Market Update

Total IP Adoption for Middle East

Network video surveillance equipment has outpaced analog in the Middle East. In the recent years, the governments in the U.A.E. and Qatar have issued regulations on image quality, storage, and frames per second for video devices. To penetrate the market, companies need strong technical competence in IP solutions and exceptional product quality. In the following, key vendors also highlight how they meet these IP regulations and other requirements in this region. n BY Jill lai

T

he Middle East market is full of new installations, which stimulates the adoption of network video surveillance equipment. According to IMS Research, an IHS company, the tipping point for network video had already tipped in 2011 in the Middle East, earlier than its previous estimation in 2012. “With less impact from the 2008 economic slowdown than expected and an increase in global oil demands, many regions of the Middle East have continued to see large infrastructure projects. This has led to an acceleration in the transition from analog to network video surveillance technologies,” said Oliver Philippou, Market Analyst at Video Surveillance and Security Group of IMS Research (an IHS company). It can be expected that 2013 will see the continued transition to network video surveillance. “Many major developments, such as green buildings, new infrastructure projects, new railway projects, and new airport projects, are all taking place here in the Middle East,” said Baraa Al Akkad, Sales Manager, Middle East of Axis Communications. “All of them are requiring IP network video solutions. Very rarely do they choose to adopt legacy systems. It makes the region amongst the highest percentage wise in IP network

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Many major developments, such as green buildings, new infrastructure projects, new railway projects, and new airport projects, are all taking place here in the Middle East.

adoption, compared to other regions. This gives us a big advantage and big boost to really grow our business in the region.”

HigH Adoption of network Video The high adoption of network video in this region shows in sales volume of network cameras from leading camera vendors, such as Axis Communications, Sony Professional Solutions and Panasonic.

"This region has remarkably high demand for IP products, compared to other regions, due to many new mega projects like 1,000 cameras or 10,000 cameras. New projects prefer the latest technology, especially IP. We are very much depending on the projects, so fortunately we sold many IP cameras, based on government projects," said Noriyuki Hayashi, Senior Sales/ Marketing Manager of System Solutions Department at MEA, Panasonic Marketing.


Sony launched network cameras around 2003; its network cameras started to take off in 2009 in the Middle East market. Around 70 percent of Sony Professional Solutions MEA’s sales revenue now comes from IP. Sony is also listed as one of top 10 suppliers in this region, according to IMS Research, said Hidenori Taguchi, Head of Marketing of B2B Products at MEA of Sony Professional Solutions.

Manager of BASS Business Automation & Security Systems. “We are very aggressive in Qatar and meeting the requirements of the Ministry of Interior, Qatar. They’re asking for megapixel only, 1.3- and 3-megapixel for all commercial projects, such as hotels, hospitals and banks, and they are also asking for very high quality products. That’s why Qatar is one of our targeted countries in this region.”

MegApixel BecoMes A requireMent: qAtAr And ABu dHABi

180-dAY storAge requireMents: ABu dHABi

In this region, HD is the standard for video surveillance cameras. Qatar passed legislation last year mandating all malls to use megapixel cameras. The regulation also applies to banks and commercial buildings, especially hotels. Abu Dhabi is another example, requiring all commercial projects to adopt full IP solutions by law. Market potential is heading very much in the IP direction. According to many marketers here, more requirements in the Middle East market will be based on HD video surveillance in the near future. To meet market demands, Samsung has improved its IP product range, especially in megapixel. Its product line is complete now for high demand in this market, according to Ali Boussi, Regional Sales

Abu Dhabi has a 180-day video storage requirement for all market segments, not only for the government sector. There is also talk that Dubai will increase the video storage requirements to 90 or 180 days, especially in banking. It means the normal DVRs are unable to meet basic requirements. Here, the vendors either work with third-party storage solutions or try to make its products more scalable on servers or large storage devices. “Abu Dhabi is completely IP, but there’s no requirement to use megapixel. It’s still open for 4CIF IP or IP megapixel and the storage requirement is very high,” Boussi said. “In Abu Dhabi, the Ministry of Interior asks for 180-day storage, with very high quality resolution and maximum frames per second, which means the speed of

▲ Hidenori Taguchi, Head of Marketing of B2B Products,

MEA, Sony Professional Solutions

the picture should be very high, around 25 frames per second. Then normal CCTV in any brand won’t meet these requirements. It needs third-party solutions for storage equipments.” “The up-time requirement is high here in the Middle East. If a camera itself is not recording, the customer will call us to make it work again,” said Peter Biltsted, Director of MEA, Milestone Systems. “Otherwise, they can get large fines if they do not get the systems to work. Because Milestone and some of our competitors have been in the market for 10 to 15 years, our solutions have proven stability, and that’s what is required. The law here is very strict for video recording, picture quality,

Doing business in MiDDle east Like in any other region with a diverse mix of countries and governments, regulations continue to be an area where technology providers must keep careful watch. For example, some countries in the Middle East can accept both UL and CE certifications, but that can differ depending on the project or consultant. In contrast, other countries have a much more rigorous take on certifications and impose stringent regulations on surveillance as well as intrusion installations due to the lack of third-party monitoring infrastructure. For many countries though, cost is the deciding factor in the absence of regulations. Along with the challenge of gradually

affecting change to the region’s customs regulations for imports, another point to consider is the region’s overall hunger for the latest technology. End users here want the most up-to-date technology or the highest resolution camera, and they are not willing to wait while these technologies have a chance to stabilize in the market. As a manufacturer that provides technology to all corners of the globe, this is certainly a boon for business. At the same time, it is a challenge to strategically release products as fast as some of our competitors while still maintaining our standards of quality. By Tarek Ismail, Sales Director, Middle East, Tyco Security Products

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Market Update and the amount of frames. The authorities actually come for inspection randomly.” “Other Gulf Coast Cooperation countries are following the U.A.E.,” Biltsted said. “Even in Saudi Arabia, they have up to 90 storage days required because for them security is such a big issue, so they start increasing the requirement like that. If we do surveillance in a hotel in Africa, it requires 80 to 100 cameras. But, if there is a hotel project in Dubai, it is between 500 to 700 cameras for the same size hotel. Some of that is required by local security law. I was assisting a customer who has a store that is about 30,000 square feet. We assigned about 150 cameras for that, but after a police consultant design, the camera count ended at 285 cameras. And that is why this market is so interesting for the security business, and why you see many people in our industry here. If you just get a small piece of the pie, it makes a big difference.”

speciAl products for Middle eAst B e s i d e s t h e h i g h re s o l u t i o n a n d storage requirement, video surveillance

▲ Noriyuki Hayashi, Senior Sales/Marketing Manager of

System Solutions Department, MEA, Panasonic Marketing

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▲ Qatar passed legislation last year mandating all malls, banks, and hotels to use megapixel cameras.

equipments also need to overcome the natural challenges of high temperatures in the region. “Specially designed for our region, we launched last year a camera that can withstand up to 75 degree Celsius, with built-in active cooling, and 360-degrees pan/tilt/zoom. It attracted a lot of attention from the market and the customers as we are now seeing strong demand for this product” Akkad said. “We are also highlighting a product, designed especially for ATM solutions,” Akkad said. “It’s a pinhole camera that can be installed in the ATM machine. Many of the banking clients suffer from cases of vandalism, especially in rural areas, so they want the added comfort of being able to capture from different cameras incidents that are happening in high definition.” “A t I n t e r s e c , S o n y P r o f e s s i o n a l introduced the new range of sixth generation network cameras which provides advanced features such as high frame rate, improved image processing and more. It is the first full HD outdoor unitized rapid dome camera received a lot of interest at the show. This camera is designed to operate at temperatures ranging from -5 degrees Celsius up to 65 degrees Celsius, while also offering 30x

optical zoom and full HD resolution, thus becoming an ideal product for this region,” Taguchi said.

sMe solutions Analog products, in this region, still occupy certain market sectors such as small- to medium-sized enterprises. “In medium and low-end segments of the Middle East market, analog CCTV is still dominant. The main contribution is the back bone requirement of an IP infrastructure, which is still under development in various regions in the Middle East,” Faisal Kan, Operations Manager, Middle East of IP Tec General Trading said. “In the coming years, we are expecting an increase in demand for HD recordings in key large-scale projects. IP CCTV and HD-SDI will be in higher demand due to the HD picture quality requirement from police authorities. Notwithstanding that HD-SDI holds a key selling tool which is the use of the existing cable structure, the streaming of uncompressed HD video quality creates a huge storage demand and thus makes the product less feasible than IP CCTV for large scale projects.”


Market Update

Key Verticals & Channels in the Middle East The Middle East is a very project-centric market where having good brand awareness is the key to marketing products.Due to the fast economic growth and high-quality requirements toward products and project implementation, this region has attracted many world famous brands. Many multinational companies already have their own well established offices and channels in major emerging countries that we mentioned in previous articles. However, local key system integrators and major valuedadded distributors still play a vital role in making all the connections in a project. Taking multi-channel approaches would be the best policy for most manufacturers. Government projects, such as transportation, oil and gas, and higher education have been long dominated by the multinationals, especially in the U.A.E. Now, Saudi Arabia, Qatar, and Kuwait are ready for more new installations, which might create huge opportunities for some new brands. The commercial market sector is still quite price-sensitive, where a product with easy installation and implementation, plus a competitive price, is always a game changer. It should be noted that the SME sector is more advantageous to some new brands, especially those from Asia. In this article, a&s invited some leading manufacturers, solution providers, and value-added distributors who candidly discussed their channel approaches and vertical markets in the region. n BY Jill lai

Manufacturers Axis CommuniCAtions Banking, retail, education and transportation are our top four vertical markets in this region and we also have critical infrastructure projects that are usually government driven. Our Channel Partner Program based on loyal and long lasting relationships has been the role model in the industry and was designed to help channel partners capitalize on Axis´ market leadership in the fast-growing network video market. Our Axis Communications Academy is also another value-added tool for our system integrators and end customers to share the knowledge that we have gained in the market since we first introduced the technology in 1996. Based on our market outlook, we feel that it is critical to have a bigger physical presence in the countries we are focused on. We are now underway with a big recruitment strategy which will lead to a substantial increase of Axis personnel across the region in the short and long term to best serve our markets. .

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â–˛ Baraa Al Akkad, Sales

Manager, Middle East, Axis Communications


HiD GloBAl Overview: HID Global’s go to market strategy is via channel partners and as a result we have successfully built a comprehensive ecosystem of channel partners in the Middle East. HID Global’s solution portfolio is structured across four main business units — Access control including network access solutions; Secure card issuance that includes FARGO card personalisation solutions; Identity assurance, which comprises of credential management and strong authentication products and services, and the Government sector that includes highly secure ID cards and passport inlays. HID Global’s key vertical focus in the Middle East is within the government, oil and gas, aviation, enterprise, and commerce sectors with increasing importance in the healthcare sector within this region. Typically, HID Global has different types of channel partners that include system integrators, OEMS, and distributors/resellers. For example, system integrators are companies who buy products from HID Global and integrate them in end-user solutions. This could be for access control or IT security, or a combination of both. Distributors/resellers tend to work with smaller integrators or installers, predominantly in the physical access control area and for secure card issuance distribution. The Advantage HID Channel Partner Program: To this effect our Advantage HID Channel Partner ▲ Harm Radstaak, MD, EMEA, HID Global Program is designed to develop and maintain a long-term value proposition with channel partners. We provide a comprehensive set of benefits to enable our partners to extract significant value from these long-term customer relationships. From industry leading margin on product resale, deal registration benefits, training, Market Development Funds (MDF), and leads, through to joint marketing activities, HID Global has a deep understanding of how to build mutually beneficial partner relationships. For example, MDF funding supports channel partners’ sales and marketing initiatives. Lead Generation: Lead generation is vital to any successful program. We find that the most effective lead generation activities are achieved from an integrated marketing approach constituting online and offline, outbound and inbound activities across multiple media. Through our Advantage HID Channel Partner Program, we are committed to helping our partners develop revenue opportunities and secure new business. Expanding the HID Global Team: We have a strong and growing team in the region tasked with supporting our partners and helping drive joint business with end-users. Adding in the investment we make in events, such as Gitex and Intersec, as well as private events, such as our soon to be announced online-banking seminars, we have a comprehensive approach to the sales channel strategy in the Middle East.

sCHneiDer eleCtriC Our primary focus will be on the enterprise segment market that includes airports, seaports, marine, oil and gas, as well as upscale shopping complexes and hotel properties. Public infrastructure and hospitality will serve as key drivers of our business. The rapid technology convergence has seen video emerge as an integral part of the network infrastructure of enterprises. Consequently, integrators are becoming increasingly involved with building related technology, leading to an IP-centric business model. Schneider Electric specialists are highly skilled with a complete understanding of both the hardware and software of complex, customized, and integrated systems that must be implemented to meet the needs of different facilities. At Schneider Electric, we benefit from working closely with specialist system integrators in various areas such as security, building automation, access control, and video management among others. Our manufacturing capabilities are further complemented by a particularly strong channel partner network that forms the framework of our distribution operation. As part of efforts to support our channel partners and end users, Schneider Electric is committed to providing them with ongoing training. Towards this end, we have established a dedicated training center in Dubai offering courses, workshops, and certification. Undoubtedly, major projects require the resources and network of a multinational company such as Schneider Electric. Our relationship with our partners ensures that projects are managed and executed according to specific schedules. For mega projects such as airports, it is often a prerequisite of the client to work directly with Schneider Electric.

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Market Update GeneteC The Middle East is a fertile and growing market for Genetec, and we are happy to be providing our unified security software services to a number of airports in this region. A good example is the Genetec deployment at the Dubai Airport. We had an on-site engineer that stayed on the project for 18 months to work with integrators, helping them with technical information and tasks, and to transfer knowledge about our products to the support teams that would be permanently on-site. Our dedicated support person was also crucial in helping the integration team address and solve specific requirements and challenges that came up, which are inherent in the Middle East market. We have built Genetec to be much more than a software development company — not simply focused on designing software — but also on anticipating challenges and finding solutions that offer the best unified security, access, and license plate recognition (LPR) systems and services to the Middle East, and all throughout the world. In the Middle East initially, our biggest customers were large public infrastructures and government ▲ Pierre Racz, President & General Director, Genetec properties, such as airports, seaports and police facilities. We have recently begun to aggressively expand into banking and transportation markets. With our LPR offering, we are also making headway into security for highways, law enforcement, and traffic & parking management as well. A crucial goal of Genetec is to select and certify its integrators so that we can develop close working relationships with them, and help them cultivate a specialization in our tools. Genetec integration partners can work as security experts and quickly adjust to any project, independent of the size of the customer or project. Very similar to general contractors, our local integrators maintain many partnerships with skilled teams that can run cabling or perform many of the manual, physical tasks related with installing cameras, for example. It is very important for Genetec to maintain a comprehensive roster of integrators, skilled to address the unique needs of the different vertical industries we serve. This focus ensures we limit conflicts within our integrator channels, and avoid wasted time.

milestone sYstems Throughout the five years Milestone Systems has been in the Middle East, we have grown to cover all the countries in the GCC and high-end market sectors. For example, we have developed a partner channel that has been focusing on retail and we’ve seen a very healthy business with the large retail sites. What we are planning to do in 2013 is to focus on expanding the partners with the distributors we have in the region to work with us on growing the mid- to low-end markets. One of the things we see in the Middle East is that we have a great potential in the mid-to low-end markets with our wider variety of product offerings for these segments. The high-end market is dominated by two to three manufacturers in the Middle East and Milestone has a majority presence in the high-end market. Now what we aim to achieve is a majority presence in the professional to low-end market, as well. We know we have been particularly successful in the high-end market, and now we want to gain focus in the midto low-end markets, too. Milestone definitely has software products that are designed for these parts of the ▲ Peter Biltsted, Director, MEA, Milestone market. What we can do is make them more appealing to those users. We basically plan to strengthen our Systems position in those markets, making it easier and more attractive to do business with our entire product portfolio. Milestone has multiple distributor channels working with the main camera brands that our software supports, and also for the mid-range to low-range camera brands to cover the market’s full range of needs. Some of our distributors are able to focus on the mid-market. We have global partners like Anixter, Network Information Technology, Norbain, Westec, and Cerebra; we have some good local installing partners and distributors since 2002. Milestone also has a decent base of system integrators that we work with, who are certified to sell and implement Milestone VMS solutions in the region.

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Market Update Solution ProviderS SiemenS Building TechnologieS The Siemens Building Technologies division offers a comprehensive portfolio of products, solutions and services for building automation, fire safety and security. This offering ensures that buildings are energy-efficient and that any kind of critical infrastructure is protected. We address our customers in two ways: Through our own channel, using the local Siemens branches for installation as well as service and maintenance afterwards. The other channel that is especially important in this region is by working together with our value-added partners. We are looking for strong local partners to provide our Siemens fire safety product range to the customers and enable them to be successful through proper local support, e.g. training, application, and product launch support. In many emerging countries, our customers prefer working with local companies to collaborating with multinational companies from somewhere abroad. You see this, for example, in Brazil right now, where they are preparing for the Olympic Games and the soccer world championships. They prefer local companies and value â–˛ Carsten Liesener, Head of Fire Safety, adding partners to install and maintain Siemens fire safety products. By doing so, we create added value in the Siemens Building Technologies country. In terms of the capabilities of local partners to do the job, we see a strong development in emerging countries, too. Especially here in the Middle East region, our local Siemens partners do a great job, really adding value with their highly skilled and competent engineers.

JohnSon conTrolS In the Middle East region, Johnson Controls operates through a multi-channel strategy in the market. We have our own Johnson Controls offices in various countries across the Middle East as well as authorized partners in others. Our goal is to serve customers in the most effective way for us to meet and exceed their needs. Historically, Johnson Controls operated through channel partners and selected direct presence. In 2005, we acquired York International, a major equipment provider with a strong presence in the Middle East. This launched a new chapter for Johnson Controls and allowed us to extend our presence, get closer to our customers, and serve them throughout the lifecycle of their buildings. The Emirates Towers, a famous project here in Dubai, was one of the largest prestigious building management system (BMS) projects that Johnson Controls completed in the late 90s. In later years, another opportunity rose from the ground as Johnson Controls completed the complex security on the tallest building in the world, the Burj Khalifa. As our business grew, so did our presence, and Johnson Controls is continuously expanding across the Middle East region. ▲ David W. Budzinski, Regional Business Manager of System Products, Middle East, As we look to be closer to our customers, Johnson Controls is not only strengthening our own offices, but Johnson Controls also growing and expanding the capabilities of our partner distribution channels. Through this approach we will be able to strategically align our expertise in the market and deliver solutions to customers which are built around their needs. Our ability and expertise to deliver everything from chillers to complex security integrations and technology contracting is a differentiator which sets us apart from our competitors. Our strength grows even further specifically in transportation, healthcare, and commercial buildings. We’ve also worked closely with government municipalities and maintain strong relationships with ministries across the region. These entities value Johnson Controls expertise and frequently approach us as a trusted advisor in helping to design the highest level of complex security in their geographies. Johnson Controls recognizes that integration is core for complex security, and this is where our strength lies. We have thousands of integrations and multiple custom development teams which allow us to create operational and energy efficiencies, ultimately leading to a greater return on investment for our customers.

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Market Update Value-added distributors Al TAArAf Group of CompAnies Al Taaraf set up its operation in the Middle East region in 1985 under the brand name of Proline UK, associated with Proline UK Electronics. Al Taaraf is extensively involved in supply and installation of security systems in the Middle East and Africa. We mainly work with the brands from Korea, Taiwan, and the U.K. to cover the products from CCTV, access control, intrusion alarm, and support local system integrators to compete with some multinational brands as well. Al Taaraf supplies security systems via several outlets in Dubai, followed by a group of highly qualified technical staff. Having several sub distributors in each country of this region, Al Taaraf extensively concentrates on the Middle Eastern market including Iran, African countries and Pakistan. Al Taaraf is privileged to achieve many industry firsts aleem Murad, CEO, Al Taaraf in the Middle East — the first member of BSIA (UK) and HDcctv Alliance, and the first company certified with ISO ▲ SGroup of Companies 9001:2008 in security trading. We supply our customers with analog products, which account for approximately 50 percent of our total sales volume, and IP as well as HD-SDI products, around 35 percent. We have held a very strong market share since the first day we were established. We see high potential in IP and HD-SDI products, for their high-image quality and real-time performance, and fiber optics as the solution for long-distance transmission. We also launched fire alarm systems so that our buyers can have one single source to buy all the security equipments.

BAss Business AuTomATion & seCuriTy sysTems (offiCiAl disTriBuTor & represenTATive of sAmsunG TeChwin CCTv in GCC)

▲ Ali Boussi, Regional Sales Manager,

BASS Business Automation & Security Systems

The good thing or advantage of Samsung products is that the products are so flexible that you can easily uses them to approach all market sectors. Samsung Techwin is strong enough in commercial & hospitality markets, especially hospitals, hotels, school buildings, residential buildings, and retail. To meet the demands of those markets, the products should have high performance and competitive prices. Samsung Techwin is able to meet both requirements. Samsung has launched a full range of products targeting end users such as in small shops, villas, construction offices, and any other personal use for a very low cost — they come in one simple package, where cables, brackets, outdoor weatherproof IR cameras, and DVR are already connected inside. Users don’t need any technical background for installation. What users have is like basic connection. This helps them save on high installation fees and achieve security.

ip TeC GenerAl TrAdinG The hospitality and banking sectors are the first to demand HD video quality in the Middle East market, followed by the medical sector. Our policy is always to be at the forefront of technology and once again, we are focusing our recourses to provide firsthand support and training to our customers in the HD CCTV evolution. We have two divisions within our group — traditional stockist master distributor setup created for large-scale sub distributors who have already penetrated their market and constantly rely on our efficient deliveries from our huge stokeholds, and a value-added distributor who provides business development support for new comers in the market, or existing sub-distributors who want to venture in new fields of security. Our customers combine our two structures with their own local knowledge to gain an edge over their competition and excel in their business.

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▲ Faisal Kan, Operations Manager,

Middle East, IP Tec General Trading


Market Update NorbaiN Norbain has been active in the region for approximately 18 years. However, we began our investment in the region in 2005 with an office in Dubai and have continued with that investment; in December 2012, we opened a new office for the Saudi market. This is a continuation of our strategy, to not only invest in the U.A.E., but the Middle East region as well. The Middle East region, as well as our other regions, is covered by an experienced multilingual international sales team that has unrivalled experience in a wide diversity of sales and regulatory environments, and political, cultural, economic, and social situations. As a value-added distributor and solution provider, we are a specialized security one stop shop. For sure the fact of having a wide portfolio of security products with well trained personnel to support our sales team helped us in this market by allowing us to add value to our partners' businesses, and enabled us to tackle most of the projects with complete turnkey solutions.

▲ Paul Ramsay, Divisional Director of

Sales, International Sales, Norbain

AsiAn MAnufActurers in Me hikviSioN DigiTal TechNology Hikvision set up its Dubai office in 2010, with less than 20 staff members. In Intersec, Hikvision introduced its SME series of products, from IP, analog, to HD-SDI. Currently, Hikvision is focused on the commercial sector, and some banking sector; however, the government sector takes time to penetrate. We got some government projects in the U.A.E and Qatar, and expect more opportunities in Saudi Arabia. Our distribution channels are mostly located in the countries of GCC.

▲ Maxwell Wei, GM, Middle

East, Hikvision Digital Technology

Dahua TechNology Dahua now works closely with local system integrators through OEM to penetrate the banking and education sectors. The Middle East region is one of Dahua’s targeted oversea markets. We expect to grow more solidly in Dubai in order to approach Northern Africa and other countries in the Middle East. Dahua has already started to market its own brand in this region. ▲ William Chow, Regional Sales

Director, Dahua Technology

Suprema Currently, Suprema has established a strong sales basis in the Middle East market. This year, we promoted more of our access control solutions rather than hardware terminals at Intersec. At the show, we showcased six integrated solutions, including biometric time & attendance, integrated IP access control with video intercom, elevator management, and surveillance systems. We integrated complete components into our system and each one has its target application. The Middle East market has great growth potential for us, and it requires more new technol- ▲ Young S. Moon, VP of Global Business Sector, Suprema ogies, especially biometrics. This region is one of the key strategic markets for Suprema and it has high demand for biometric security solutions. We would like to provide more value in the software side of the products tailored for the Middle East region.

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INDUSTRY REPORT

Stay

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2013 sEcuRiTy 50

FocuSed and agile

The Security 50 companies, a group of leaders in security, produced about 68 percent of the world’s security equipment in 2012. With growth averaging 12.3 percent for the Security 50 providers, they are beating the consumer market. However, economic uncertainty affects many leading security suppliers. Established countries are still on their way to recovery. The growth rate for emerging markets is robust, but cannot offset steep losses. As IP-related technologies mature and Chinese manufacturers rapidly improve, the global security market has become even more competitive than before. In the future, companies will need to face the harsh reality of slowed growth and reduced demand from government contracts. Despite the tough times, some companies beat the odds. Several even achieved excellent sales in 2012. They focused on specific verticals and were responsive to customer needs by producing tailor-made solutions. We salute these industry leaders who showed they have what it takes to weather the storm. Now, we proudly present the 2013 Security 50 companies.

Eligibility

About the Ranking

• Electronic security equipment and system providers, including video surveillance, access control, intrusion detection, and multiple product segments

We rank global manufacturers solely by product sales. Participants range from exclusive manufacturers to end-to-end solution providers. Again, we urge readers not to focus on the ranking of the participants, but to further explore the underlying causes for their success.

• Security companies or pure manufacturers with their own products, brands, or solutions • Publicly listed and privately owned security companies • Ability to provide FY 2012 and FY 2011 financial statements, audited/endorsed by a certified accountant or accounting firm • Distributors, system integrators, resellers, dealers, installers, guard service provides, information security, and fire safety companies or related revenues were excluded

Note: a&s bears no responsibility for the financial information provided by any individual company. For fair comparisons, non-US currencies were converted using midmarket exchange rate from XE.com on July 26, 2013. This is an unbiased list based on the willingness of participants to share their sales performance.

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INDUSTRY REPORT

Macroeconomic Uncertainty Still Affects Security The Security 50 providers represented about 68 percent of the total global security equipment market in 2012. The 12.3-percent average growth rate for 2012 doesn’t seem very promising. This shows the uncertain macroeconomic outlook is still affecting the majority of leading security suppliers. n By Jill lai

T

he Security 50 providers still played a crucial role in the global market in 2012. They contributed around 68 percent of the total global security equipment market and over 40 percent of the video surveillance market. The Security 50 generated US$14.7 billion in global product sales revenue in 2012, with more than $4.8 billion in video surveillance equipment sales. Of the Security 50, 22 companies made the sales revenue of at least $100 million in 2012. Amongst them, Honeywell Security, Bosch Security Systems, Safran, and Hikvision Digital Technology even reached the $1 billion mark. It was worth noticing that Hikvision set a record sales revenue of more than $1

billion in 2012. The global security product market was valued at $21.5 billion, with $11.9 billion in video surveillance, according to an IHS report in 2012. Other global markets for security products are followed by access control ($2.9 billion or 13.6 percent), intrusion ($2.6 billion or 12.1 percent), perimeter ($350.6 million or 1.6 percent), and entr y control ($3.7 billion or 17.1 percent). North and South America combined made up 41 percent of worldwide trade for physical security equipment and services. Asia was next at $33 billion, followed by the collective EuropeMiddle East-Africa (EMEA) region with $29 billion. Security growth for 2012 in Asia was 13.3 percent in APAC,

Worldwide Security Product Market in 2012 The World Physical Security Product Market $21.5 billion

Entry Control 17.1% Intrusion 12.1%

Perimeter 1.6%

Access Control 13.6%

Source: IMS Research (IHS)

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Video

55.5%

• Video Surveillance $11.9b – 2012 55.5% • Access Control $2.9b – 2012 13.6% • Entry Control $3.7b – 2012 17.1% • Perimeter $350.6m – 2012 1.6% • Intrusion $2.6b – 2012 12.1%

The Security 50 providers represented about 68 percent of the total global security equipment market in 2012. compared to 3.8 percent in America and 4.2 percent in EMEA, found IHS.

Moderate Growth for 2012 The Security 50 average growth rate in 2012 was lower at 12.3 percent, compared to 14 percent in 2011. It was also lower than predicted by industry experts for 2012 — 15-percent growth. As growth slowed, 27 companies from the Security 50 started to experience the pain in 2012. We found companies with the greatest drops in 2012 revenue either had significant market share in Europe or a high volume of sales dependent on public/government sectors. Mobotix was “particularly affected by the debit crisis in Europe,” read its 2012 financial report. “The slow macroeconomic growth that has been seen over the last few quarters in nearly all


2013 sEcuRiTy 50 European countries has now intensified, and a continued recessionary trend appears very probable in the short to medium term.” Key factors for disappointing growth amongst the Security 50 are fierce competition in all regional markets and “moderate” growth from emerging countries, such as the Middle East nations, Brazil, India, Thailand, Indonesia, and China. Growth is further hindered by a slow recovery in developed countries in Middle and Western Europe and in the U.S. Especially in the emerging countries, such as the Middle East, political instability and economic uncertainty hampered growth. Assa Abloy said “the mature markets were marked by subdued demand for most of the year, affected by the fiscal problems and tough austerity measures in Southern Europe and a deepened economic slowdown in Western Europe.” Synectics Network Systems, a division of Synectics, also mentioned it experienced some growth in the Middle East region, which was slower than expected outside of the oil and gas sector.

Worldwide Security End-user Market 2012 Product 20.4%

Remote Monitoring 28.3%

Security System Integration

51.3%

The World Physical Security Equipment & Services Market $105.3 billion • Product $21.5b – 2012 20.4% • Remote Monitoring $29.8 b – 2012 28.3% • Security System Integration $54.0b – 2012 51.3% Source: IMS Research (IHS)

GovernMent SpendinG ContinueS to fall In 2012, Security 50 figures reflected strong impact from global economic uncertainty. This “leads to reduced le vels of investment, changes in government spending levels and/or priorities, the size and availability of government budgets, customers’ and suppliers’ access to credit, consumer confidence, and other macroeconomic factors affecting government, industrial or consumer spending behavior,” wrote Flir Systems in its financial report. The

company said its 2012 sales performance was negatively impacted by reduced spending from US and Middle Eastern government agencies, along with the Eurozone crisis. Tyc o I n te r n a t i o n a l a l s o s a i d i t s governmental and institutional customers have experienced budgetary constraints, which may reduce demand. When the public sector reduces spending, the security industry will be severely tested. The trend appeared even more obvious in 2012.

ip video SurveillanCe enterS Slow-developMent StaGe

Source: IMS Research (IHS)

Since growth for IP video surveillance depends on the number of new installations, the slow growth in emerging countries dampened the growth rate of IP video surveillance companies. One bright spot for IP is demand for retrofit projects in developed countries. However, the rate of end users replacing their old legacy analog systems with new IP systems has not exceeded expectations. IP video sur veillance is still hot,

37


INDUSTRY REPORT but revenue growth is tapering off, as seen in the ear nings from Axis Communications, Mobotix, and Milestone Systems. Axis Communications grew 38 percent in 2010, 22.9 percent in 2011 and hit 17 percent in 2012. Mobotix grew 19.9 percent in 2010, peaked to 35.9 percent in 2011 and fell to 11.5 percent in 2012. VMS provider Milestone grew 55.8 percent in 2010, which dropped to 22.5 percent in 2011 and 19.4 percent in 2012. VIVOTEK grew by 57.5 percent in 2010 and 62.1 percent in 2011; however, growth slowed significantly to 20.7 percent in 2012. Of the IP providers, only Aviligon remained in the comparatively high-growth stage. Its revenue grew 67 percent in 2012, which was at 86 percent in 2011, and 91.2 percent in 2010. Although the factors for slow growth i n c l u d e my r i a d global economic influences, major IP security companies will be challenged to maintain annual revenue growth above 20 percent with high profit margins in the next few years.

fierCe CoMpetition The maturity of IP video surveillance has resulted in falling equipment prices. Meanwhile, Chinese manufacturers are providing more cost-effective products with good quality to the world, which makes a saturated market even more competitive. Hikvision ranked fifth in the 2011 and 2012 Security 50 rankings, but moved up to fourth place in 2013 with $1.1 billion in revenue. Dahua Technology ranked 10th in 2011 and 2012, coming in ninth in 2013. Dali Technology also

38

Worldwide Security End-user Market 2012

America

EMEA 26.6%

43.3% Asia 30.0%

The World Physical Security Equipment & Services Market $105.3 billion • EMEA $28.0B – 2012 26.6% • America $45.7b – 2012 43.3% • Asia $31.6b – 2012 30.0% Source: IMS Research (IHS)

improved from 48th to 42nd. The rise of Chinese manufacturers has impacted Asian companies from Taiwan and Korea. China will compete with more non-Asian companies on more than just price.

leSS M&a The value of merger and acquisition deals in 2011 was $9.85 billion, representing a rise of 23 percent over the previous year, according to Memoori Business Intelligence. In 2012, it declined 27 percent to $7.17 billion. Poor economic trading conditions reduced the confidence of major suppliers to go for growth through mergers and acquisitions. The 2012 Security 50 providers also made fewer mergers and acquisitions. Among the Security 50 companies, Flir acquired Lorex Technology for $60 million and Traficon International for $46 million at the end of 2012. TKH acquired Augustas Technologies and Aasset Security International. In 2012, the acquisitions contributed $115.6 million in revenue and $10.6 million in net profit for TKH. Optex Systems acquired R aytec

t o o b t a i n a n d e x p a n d p ro d u c t s, technology, and distribution routes for video lighting systems for the security business. Infinova also completed its March Networks acquisition in 2012. Instead of acquiring new businesses, Tyco I nter national brok e up into three units — ADT North American residential security, Pentair flow-control products and services, and Fire and Security. For the period from September 2011 to August 2012, Memoori Business Intelligence identified 18 arrangements by physical security venture capitalists, who invested a total of $267 million. Memoori wrote, “clearly VCs are much more confident of investing in the physical security industry. The majority of these involved investment in US-based companies by US-based venture capitalists.” The more competitive the security market becomes, the more mergers and acquisitions will take place. We predict there will be more deals in the next few years. But these expectations may take time to become reality.


INDUSTRY REPORT Double-Digit growth Strategy In the uncertain global market, some companies sustained double-digit growth in 2012, which was worth noticing. The top 12 companies for revenue growth were Infinova with 113.5 percent growth; Aviligon (67 percent); Dahua Technology (60 percent); TKH Group (51.1 percent); DynaColor (50 percent); Hikvision (35.6 percent); HDPRO (29.8 percent); Synectics (28.7 percent); Safran (28 percent); Suprema (24.5 percent); Tyco Security Products (23.2 percent) and Optex (22.8 percent).

IP Video Surveillance Remains Strong

In general, major IP video surveillance suppliers still enjoyed growth in the double digits for 2012. The companies represented are Aviligon, GeoVision, VIVOTEK, Milestone Systems, Axis Communications and Mobotix.

Recovery of Asian Companies

We also observed that these Asian manufacturers in China, Taiwan, and Korea were able to catch up with IP-based technologies in 2012. These companies, such as EverFocus, DynaColor, Hunt, and ITX, started to enjoy higher sales compared to previous years.

Biometrics in High Demand

The strong growth for biometric products in the worldwide market drove the growth of Safran and Suprema. Suprema’s profit was “topped by newly-launched technologies such as

face recognition and surging demand on its identification solution from government sectors,” it wrote in its financial report.

Penetration in Verticals and Emerging Markets

Major growth strategies are usually mergers and acquisitions, proprietary technology development, market expansion to emerging countries, and penetration of certain verticals. Avigilon continues to deepen its penetration in casinos, by establishing a specific business development team in Canada and the US. It will continue to explore other verticals, such as retail, transportation, banking, and government. Synectics Network Systems, a division of Synectics, focused on critical infrastructure protection and gaming. It benefited from continued strength in the US gaming market, particularly in the first half, and from solid growth within most of its core customer sectors in the U.K. and the Middle East. Although 2012 growth in emerging countries didn’t reach the high expectation that some experts predicted, the global expansion strategy to emerging countries still remained a crucial growth factor for many multinationals. Tyco International continued its expansion into China, India, Latin America, and the Middle East. Axis also expects to increase its market share in emerging countries from 25 percent to 40 percent in the next five years.

Top 12 Companies for Revenue Growth from Security 50

Revenue Growth 2011 - 2012

'13 Ranking

1

17

INFINOVA

Video Surveillance

$123.5

$57.8

113.5%

1.0%

2

23

AVIGILON

Video Surveillance

$97.7

$58.5

67.0%

49.3%

3

9

DAHUA TECHNOLOGY

Video Surveillance

$575.5

$359.4

60.1%

21.4%

4

12

TKH GROUP (SECURITY SYSTEMS ONLY) Multiple

$234.4

$155.1

51.1%

*

5

33

DYNACOLOR

Video Surveillance

$70.2

$46.8

50.0%

40.8%

6

4

HIKVISION DIGITAL TECHNOLOGY

Video Surveillance

$1,110.6

$819.2

35.6%

*

7

32

HDPRO

Video Surveillance

$70.3

$54.2

29.8%

18.7%

8

30

SYNECTICS

Video Surveillance

$74.5

$57.9

28.7%

39.7%

9

3

SAFRAN (SECURITY PRODUCTS ONLY)

Multiple

$1,610.7

$1,258.5

28.0%

*

10

40

SUPREMA

Access Control

$46.7

$37.5

24.5%

47.6%

11

10

TYCO SECURITY PRODUCTS

Multiple

$500.0

$406.0

23.2%

*

12

22

OPTEX (SENSING PRODUCTS BUSINESS) Intrusion Detection

$100.6

$81.9

22.8%

*

$384.6

$282.7

44.5%

Company

Product Group

Average

40

Product Sales Revenue (in US$ Millions)

No.

2012

2011

Gross Margin 2012


INDUSTRY REPORT

2013 Top Security 50 2013 2012

Company

Headquarters

Product Group

Product Sales Revenue (in US$ millions) 2012

2011

Revenue Growth 2011 - 2012

Gross Profit (in US$ millions) 2012

Profit Growth

2011

2011 - 2012

Gross Margin 2012

1

1

HONEYWELL SECURITY

U.S.

2

2

BOSCH SECURITY SYSTEMS

Germany

Multiple

$1,972.2

$1,923.0

2.6%

*

*

*

*

3

3

SAFRAN (SECURITY PRODUCTS ONLY)

France

Multiple

$1,610.7

$1,258.5

28.0%

*

*

*

*

4

5

HIKVISION DIGITAL TECHNOLOGY

China

Video Surveillance

$1,110.6

$819.2

35.6%

$377.1

$281.5

33.9%

34.0%

5

4

ASSA ABLOY (GLOBAL TECHNOLOGIES)

Sweden

Access Control

$969.1

$890.8

8.8%

*

*

*

*

6

7

AXIS COMMUNICATIONS

Sweden

Video Surveillance

$643.5

$549.5

17.1%

*

*

*

*

7

6

FLIR SYSTEMS (THERMAL VISION & MEASUREMENT)

U.S.

Video Surveillance

$628.0

$660.3

-4.9%

*

*

*

*

8

8

SAMSUNG TECHWIN

Korea

Multiple

$603.6

$576.7

4.7%

*

*

*

*

9

10 DAHUA TECHNOLOGY

China

Video Surveillance

$575.5

$359.4

60.1%

$123.0

$67.4

82.5%

21.4%

10

9

U.S.

Multiple

$500.0

$406.0

23.2%

*

*

*

*

11

11 AIPHONE

Japan

Access Control

$374.2

$346.2

8.1%

*

*

*

*

12

GROUP (SECURITY 15 TKH SYSTEMS ONLY)

Netherlands

Multiple

$234.4

$155.1

51.1%

*

*

*

*

13

14 NEDAP

Netherlands

Multiple

$204.4

$182.0

12.3%

*

*

*

*

14

SYSTEMS (SECURITY 12 NICE SOLUTIONS ONLY)

Israel

Multiple

$185.9

$191.9

-3.1%

*

*

*

*

15

19 IDIS

Korea

Video Surveillance

$137.1

$131.5

4.2%

*

*

*

*

16

13 RCG

Hong Kong, China

Access Control

$131.8

$178.6

-26.2%

-$82.8

$32.7

-353.2%

-62.8%

17

35 INFINOVA

U.S.

Video Surveillance

$123.5

$57.8

113.5%

$1.2

$6.6

-82.2%

1.0%

18

SYSTEMS (VIDEO 16 VERINT INTELLIGENCE)

U.S.

Video Surveillance

$119.5

$138.0

-13.4%

*

*

*

*

19

22 VIVOTEK

Taiwan

Video Surveillance

$116.0

$96.1

20.7%

*

*

*

*

20

24 MOBOTIX

Germany

Video Surveillance

$108.5

$97.3

11.5%

$82.5

$74.7

10.4%

76.0%

Korea

Video Surveillance

$105.2

$110.8

-5.1%

$7.9

$8.0

-1.1%

7.5%

$100.6

$81.9

22.8%

*

*

*

*

21

TYCO SECURITY PRODUCTS

HITRON

Multiple

$2,500.0

$2,400.0

4.2%

*

*

*

*

22

(SENSING PRODUCTS 21 OPTEX BUSINESS)

Japan

Intrusion Detection

23

32 AVIGILON

Canada

Video Surveillance

$97.7

$58.5

67.0%

$48.1

$26.8

79.6%

49.3%

24

(COMMERCIAL & 18 TAMRON INDUSTRIAL)

Japan

Video Surveillance

$92.9

$83.3

11.6%

*

*

*

*

25

20 AVTECH

Taiwan

Video Surveillance

$88.6

$104.9

-15.6%

$37.7

$40.8

-7.6%

42.6%

42


INDUSTRY REPORT

2013 Top Security 50 2013 2012

Company

Headquarters

Product Group

Product Sales Revenue (in US$ millions) 2012

Revenue Growth

Gross Profit (in US$ millions)

Profit Growth

2011

2011 - 2012

2012

2011

2011-2012

Gross Margin 2012

26

17 CNB TECHNOLOGY

Korea

Video Surveillance

$87.2

$109.5

-20.4%

$21.8

$27.5

-20.6%

25.0%

27

26 COMMAX

Korea

Multiple

$79.7

$87.5

-8.9%

$21.5

$21.6

-0.5%

26.9%

28

27 EVERFOCUS ELECTRONICS

Taiwan

Multiple

$76.2

$80.0

-4.8%

*

*

*

*

29

30 KOCOM

Korea

Multiple

$75.0

$72.9

2.9%

$19.5

$19.7

-1.0%

26.0%

30

33 SYNECTICS

U.K.

Video Surveillance

$74.5

$57.9

28.7%

$29.6

$22.7

30.1%

39.7%

31

29 NAPCO SECURITY SYSTEMS

U.S.

Multiple

$70.9

$71.4

-0.6%

$21.2

$20.1

5.2%

29.8%

32

38 HDPRO

Korea

Video Surveillance

$70.3

$54.2

29.8%

$13.2

$6.7

97.6%

18.7%

33

41 DYNACOLOR

Taiwan

Video Surveillance

$70.2

$46.8

50.0%

$28.7

$18.4

56.0%

40.8%

34

28 GEUTEBRUCK

Germany

Video Surveillance

$69.9

$82.5

-15.3%

*

*

*

*

35

36 GEOVISION

Taiwan

Video Surveillance

$67.4

$55.5

21.4%

$38.5

$33.6

14.6%

57.2%

36

34 SIMONSVOSS TECHNOLOGIES

Germany

Access Control

$63.8

$61.6

3.6%

*

*

*

*

37

43 MILESTONE SYSTEMS

Denmark

Video Surveillance

$56.6

$47.4

19.4%

*

*

*

*

38

39 FERMAX

Spain

Access Control

$51.9

$52.5

-1.2%

$30.5

$30.8

-1.0%

58.8%

39

40 VICON

U.S.

Video Surveillance

$49.7

$47.2

5.2%

$19.6

$18.2

7.9%

39.6%

40

47 SUPREMA

Korea

Access Control

$46.7

$37.5

24.5%

$22.3

$17.1

30.4%

47.6%

41

42 INDIGOVISION

U.K.

Video Surveillance

$46.6

$44.5

4.8%

$27.5

$24.9

10.6%

59.0%

42

48 DALI TECHNOLOGY

China

Video Surveillance

$44.4

$37.6

17.9%

$5.9

$5.8

0.9%

13.2%

43

44 C-PRO ELECTRONICS

Korea

Video Surveillance

$41.1

$39.3

4.5%

$7.3

$6.4

13.4%

17.7%

44

45 ITX SECURITY

Korea

Video Surveillance

$40.6

$38.9

4.6%

$11.7

$9.6

22.4%

28.8%

45

37 YOKO TECHNOLOGY

Taiwan

Video Surveillance

$40.1

$53.0

-24.3%

$7.3

$9.8

-25.4%

18.1%

46

49 WIN4NET

Korea

Video Surveillance

$36.2

$31.9

13.5%

$9.9

$9.4

5.1%

27.3%

47

46 HI SHARP ELECTRONICS

Taiwan

Video Surveillance

$34.1

$37.2

-8.3%

$3.9

$5.0

-22.6%

11.3%

48

SECURITY SYSTEMS 50 MAGAL (PERIMETER PRODUCTS)

Israel

Intrusion Detection

$33.9

$30.0

13.1%

*

*

*

*

49

HUNT ELECTRONIC

Taiwan

Video Surveillance

$28.7

$27.6

4.0%

$8.4

$6.0

40.0%

29.3%

50

EVERSPRING INDUSTRY

Taiwan

Intrusion Detection

$25.4

$22.8

11.2%

*

*

*

*

Average

$294.3

$263.7

12.3%

44


Vertical Market Banks are prime targets for criminal activity as they are transit points for the fuel of the modern economy — money. Consequently, security protocols in this sector cannot be an afterthought and governments generally have a stipulated set of regulations that banks have to adhere to. Banks will also have their own corporate policies regarding security systems, in addition to an assessment of the local security situation. These regulations and policies cover everything from where cameras are to be located to storage periods. They can vary between countries and banks, although there is a general rule of thumb for most.

46


Regulations Safeguard

Bank Security The banking industry has more regulations governing their security systems compared to other verticals, due to the significance of their business nature. Governments are also more likely to have a heavier say in the security measures that banks must adhere to. Although these regulations are similar amongst countries, there are still differences. This article takes a peek at security regulations for banks across the world. n By AlyssA FAnn

B

anks are where the money is and although online banking has reduced customer visits to the bank, the brick-and-mortar branch bank is here to stay and remains a crucial component of financial institutions. Taking the U.S. for example, a survey by consulting firm Novantas2

showed that the branch remains the preferred sales and service channel for opening accounts (75 percent), getting advice (58 percent), and buying financial products (62 percent). In other words, bank customers are not ready to phase out brick-and-mortar banks to migrate completely to the virtual

banking world. For the security industry, opportunities come from several areas. First, the upgrading of legacy systems in surveillance, access control, and alarms offers plenty of business opportunities. Next, mergers and acquisitions in the financial sector also represent business opportu-

47


Vertical Market nities as corporate policies on security might have differed and would now have to be unified or brought together under the expanded corporation. Finally, like every other sector, the financial sector faces changing threats and security systems need to be upgraded to adequately address new challenges that include sophisticated crime organizations armed with state-of-art technology. Hence, the security market in this vertical is still very much present. System integrators, however, need to understand the specialized needs of the financial sector, such as dealing with large sums of cash and being subjected to robberies and fraud on a daily basis.

Government reGulations In financial transactions, every transaction is akin to a legally binding action. Every piece of document and security footprint serves to legitimize the transaction, such

In Germany, video hardware such as cameras and NVRs must be UVV-Kassen certified, which is the health and safety standard. as the withdrawal of money by a specific customer that took place. Coupled with the daily risks of robberies and fraud, bank security systems are often subjected to government regulations. The experienced system integrator would have to ensure that all minimum requirements are met. At the same time, there are corporate policies on security that need to be taken into account. In other words, when designing a bank security system, banks would consider their corporate policies, in addition to government regulations. These are then assessed against local security conditions to determine the level of security necessary and the systems that are to be deployed. With regards to government regulations, some banks will undoubtedly simply adhere to standard

Cost/Income Ratio of Top 40 Global Banks, 2009–12*

government regulations, while others will exceed them depending on corporate policies and perceived threats.

Regional Differences in Legislation Manufacturers are well aware of the differences in government regulations. “Within the European Union, each country has its own approach in terms of the legal requirements for bank security. In Germany, for example, bank security is covered by health and safety regulations, which are relevant for all workplaces dealing with a certain amount of cash. So while this applies to banks, it may also be appropriate for the money-counting room in a huge cinema,” said Stephan Beckmann, Product Marketing Manager of EMEA at Tyco Security Products. While the overarching main document in the U.S. for banks to follow is the Bank Protection Act, there are other regulations, including state stipulated ones. “The Bank Protection Act is the main document that must be followed, but Regulation H from the Board of Governors of the Federal System also governs membership of state banking institutions, including describing a member bank’s obligation to implement security procedures to discourage certain crimes,” mentioned Chris Mullins, North American Inter-Company Sales Manager — Banking and Financial at American Dynamics (Tyco Security Products).

Security Equipment Requirements Each region has its own regulations pertaining to physical security installa-

48


Vertical Market tions, such as equipment standards and storage requirements. “In Germany, video hardware such as cameras and NVRs must be UVV-Kassen certified, which is the health and safety standard,” said Beckmann. “When looking at regulations regarding camera types and locations, there are test charts and testing procedures that an UVV-Kassen compliant camera installation has to pass after the installation. For instance, the picture quality for the camera at the cash desk must support proper identification of individuals, while other cameras must provide an overview of the scene,” added Beckmann. In Asia, banks in Hong Kong are required to have bulletproof windows, while armed guards are employed at Singaporean banks. On the other hand, although banks are permitted to apply for armed guards in Taiwan, most banks do not feel the need to do so, based on risk assessments of local conditions. In other words, while there are government regulations, some clauses may not be mandatory and banks have the flexibility to adjust accordingly to their risk analysis conclusions. Hence, the security solution deployed depends on a combination of factors that include corporate policy, government and insurance regulations, lifestyle determinants, and preferred equipment.

Storage Period Video storage length is regulated by law and varies vastly between countries. European countries tend to have stricter privacy laws. “Countries such as Austria, Germany, and France limit the maximum length of stored video to a few days, but for banks, incident-related footage must be stored longer — at least 10 days or until it is released as a protected partition of the video system,” mentioned Beckmann. Across the Atlantic pond, “some local jurisdictions impose their own specific regula-

50

Stephan Beckmann, Product Marketing Manager, EMEA, Tyco Security Products

tions, such as the New York ATM lobby law — the ATM lobby has to be fully covered for video so there is no dead space and there is adequate resolution,” noted Mullins. “In Maryland, there exists a regulation that ATM video has to be kept for 60 days, although a general rule of thumb is usually 90 days,” Mullins added. In China, where there are more explicit regulations, recorded video from around ATMs and behind the teller lines are stored for three months. The storage period for other areas of banks, such as waiting areas and halls, is one month. As most banks have overseas branches, some may choose to unify video storage policies across their branches.

Intrusion Alarms Intrusion alarms are the first line of defense when unauthorized people attempt to access bank zones with malicious intent. In Europe, the EN 50131 standard is driving the adoption of video-enhanced verification, which aims to combat the false alarms issue common with traditional alarm systems to enable more effective, faster police response and save the customer from paying fines incurred by false alarms. The EN 50131 sets a grading system for installations and guides the prioritizing of responses from

local law enforcement. The choice of the grade level varies between countries and is largely guided by insurance companies. The deadline for mandatory adherence also varies between countries, but 70 percent of the market in Spain and roughly 50 percent in the Nordics are already employing videoenhanced verification. “Most countries refer to European standards on intruder systems. [However], in Germany, there is another organization, originally founded by insurance companies, called VdS. VdS provides regulatory guidelines such as which devices should be used, and how the overall security system should be configured,” noted Beckmann. While there doesn’t appear to be an explicit government standard in the U.S., “intrusion alarms have to be registered with local jurisdictions in most cases,” commented Mullins. “[This way] if the police departments receive an alarm, they have prior knowledge about the location of that alarm.” Nevertheless, there is a trend towards videoenhanced verification for intruder alarms.

Bank on Security SucceSS In the end, a key factor to success in the banking and financial vertical is to understand the security needs of these customers and assist them in integrating their corporate policies with government and insurance regulations in their security solutions. While the security equipment used may be no different to other verticals, security systems of banks are more likely to be subjected to regulations due to their business nature. Security systems in this vertical need to be legally viable if necessary. Mergers, acquisitions, and upgrades will continue to create business opportunities for the security industry.


Vertical Market

Getting the Most With crude oil being an expensive commodity that holds the position of a key factor in each and every economy of the world, it is clear that oil rigs and refineries must be protected from threats. However, ensuring safe operations and efficiency can be just as crucial. Read on to learn about current fire & safety technologies, integration know how, and future trends and development in the oil/gas industry. n BY The a&s ediTorial Team

52


Out of Black Gold C

rude oil is refined to produce a wide array of commercial and consumer products used for their energy or chemical content such as fuel, lubricants, plastics, pharmaceuticals, and etc., and it is currently the source of approximately 40 percent of the total energy in the world. The magnitude of oil has reached such a level that no country in the world can function successfully without it or its “by-products,” and nations without sufficient oil reserves to meet their domestic demands import it at any cost or means. Last year, in 2012, the global crude oil production was about 89 million barrels

per day. Each barrel contains 159 liters of oil. The majority of crude oil was from North America, Eurasia, Russia, Middle East, Saudi Arabia, and Africa. Last year, the Middle East and Africa accounted for about 38 percent of global crude oil production, while APAC accounted for about 10 percent. Europe and the FSU accounted for about 21 percent and the Americas for around 31 percent.

GloBal DemanD anD Investment shIft towarDs asIa anD the mIDDle east The oil and gas industry will undergo a decisive transition over the next 10 years as global balances of demand and investment shift towards Asia — away from Europe and North America. Oil and gas companies and their governments also face unprecedented uncertainties over a growing range of issues, including the development of low-carbon policies, shale gas, questions about Iraqi oil production, and surging demand in China.

53


Vertical Market “It is an interesting time for the industry. The types of sites now emerging in Asia and the Middle East have very different security demands — both environmental and operational — compared to many long-established European and North American markets. It is certainly encouraging increased innovation from manufacturers,” noted Amedeo Simonetto, Business Development Manager at Synectics. He also added that, “this is a trend set to continue, particularly with Asian (and Australasian) markets now seizing the mantel in terms of project size and ambition.” Oil and gas companies and governments need to recalibrate their strategies and policies to recognize the impact of Asia’s larger share of the world’s oil and gas in the future. At the same time, North America’s shale oil and gas developments (in the U.S.) and new oil developments (in Canada), should not be ignored. Some industry experts predict that the U.S. might become a net exporter of gas instead of an importer as in the past. Some experts are even touting the U.S. as the next Saudi Arabia.

The Plateau of Conventional Oil Productions According to the Association for the Study of Peak Oil and Gas USA (APO-USA), out of the 42 largest oil producing countries around the world, 30 have either stalled or have passed their peaks. However, the production of both oil and gas in Asia Pacific will continue to grow in the next 10 years with production rate forecasted to increase at average growth rates of (AAGR) of 1.5 percent and 4.3 percent, respectively. China’s crude oil production is expected to decline at an average annual rate of 3.7 percent between 2010 and 2020. However, despite

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this alarming decline rate, China will remain the leading producer in Asia Pacific. In order to keep the wheels of the world economy turning, nations around the world have turned to alternatives to “circumvent” the effect of declining oil reserves with the obvious being green/sustainable energy, and even unconventional productions such as the Canadian tar sands, which turned out to be a major unconventional oil source. However, turning the thick and heavy semi-solid oil, called crude bitumen, into liquid fuel requires steam injection and refining, which consumes a deal of energy. The process generates 12 percent more greenhouse gasses per barrel of final product compared to extraction of conventional oil. The U.S., China, Australia, and Jordan have either started to explore or renewed shale oil extraction operations. Shale oil can be used immediately as fuel, and refined products can be used for the same purposes as those derived from crude oil. “We predict strong activity in North America for midstream processing, compression and transport facilities. Drilling has exposed far more supply in the ground than demand can accommodate. While drilling may not grow as fast, the

developing infrastructure will be strong,” noted Charles J. Drobny Jr., President and CEO of Globalogix. “Lack of infrastructure in Asia will continue to be a barrier. The market and the infrastructure have to be there for a growing oil & gas sector; resources alone don’t drive growth.”

securItY measures In refInerIes Asia Pacific and North America have the highest refining capacity of crude oil. The U.S. is the top producer followed by China, Russia, Japan, and India. Just because oil and gas infrastructures are usually situate in remote locations it does not validate the excuse for not having adequate security, rather it should be a cause to invest in proper security measure for these sites. In terms of fire and safety prevention and perimeter security, waiting for catastrophe to happen before acting means that it is already too late to act. It is precisely this scenario that proper risk management is designed to avoid. Due to the potential economic impact and financial damage as well as exposure that dissent and terrorists groups can achieve, energy facilities have become the choice

Trends in Operating Refineries and Worldwide Capacity

Source: Oil and Gas Journal


target. The Algerian gas plant hostage crisis, which transpired in January of 2013, lasted for four days, and resulted in at least 40 casualties — demands more oil and gas security. These days, the vulnerable nature of oil and gas infrastructure has been driving security investments, but there is still a long way to go to ensure full security and deterrence levels. Industry experts’ project heavy investments in cyber security due to recent high-profile attacks on energy facilities. In addition, there is a growing preference for total solutions with flexible integration of individual security systems such as access control, video surveillance, perimeter security, microwave detectors, and fiber-optic sensors, high capacity video recorders, video motion detectors,

biometric systems, and video content analysis on a single platform. Some methods for strengthening the security of oil and gas facilities: • T ighter border control to prevent terrorists from entering through the borders of unstable neighboring countries. • E mploy a layered security approach to prevent unauthorized perimeter entr y through access control and intruder detection supplemented by video surveillance — before would-be assailants/vehicles are even near critical facilities. • E mploy technologies, which provide early warning and detection of threats before situations escalate out of control. • Employ tools and technology that offer coordinated responses to cyber/physical

threats. Protect digital information systems from theft, loss, corruption, and attack. • Create a professional, dedicated security force to protect critical infrastructures. • Proper security risk management, which is adapted from existing security polices, and entails a complete activity recovery plan. • E m p l o y s e c u re c o m m u n i c a t i o n s systems to ensure uninterrupted and untapped voice and data transmission within energy facilities and with operations in the field. • Create a central operation center that enables operators to analyze threats, g e n e r a t e e a r l y w a r n i n g s, c re a t e intervention plans, and manage crises.

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Product Exploration What Makes Megapixel Cameras Stand Out

As 2-megapixel (MP) network cameras become the market standard, there are not only more affordable products but also custom-made solutions available. a&s highlights what makes 2MP cameras different in terms of features, warranties, after-sale services, and marketing approaches. n By The a&s ediTorial Team

C

urrently, cameras with higher resolution than 2-megapixel (MP), such as 5MP, 8MP, and even 10MP are being introduced one after the other. However, 2MP cameras are becoming standard. There are several reasons for this. “Even if a camera captures images in higher resolution than 2MP, major displays support full HD only and the whole image cannot be shown in one display,” said an executive at Sony Electronics. Also, more pixels do not necessarily translate to clearer and more usable images. “In fact, the higher the resolution,

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the significantly less the sensitivity is. This is one of the most important considerations in security applications, especially in low-light environments,” he added. “Capturing images with higher resolution means data sizes will be larger, which causes problems in network bandwidth and storage, and triggers higher expenses in system integration.”

SenSor SenSitivity and Bandwidth Control With megapixel putting smaller and less light-sensitive pixels on an image

sensor, low-light performance has been the deciding factor for whether megapixel c a m e r a s c a n p e r fo r m i n l ow - l i g h t conditions. Image sensors distinguish between good and excellent megapixel cameras, as light sensitivity is challenging with more pixels crammed onto the same piece of silicon. Sony has dedicated significant R&D efforts in this area. “The aspect ratio of our image sensors in the 2MP cameras we have developed and adopted is 16:9 native. Compared to conventional 4:3 or 5:4 (2MP) image sensors, 16:9 (2MP) image sensor enables a larger pixel size


contrast, gamma, and sharpness imaging. “The image team of Vivotek has done a lot of image and video testing on the cameras. We have many parameters for image tuning,” said Steve Ma, Executive VP at VIVoTEk. “The second difference would be bandwidth control. As a 2MP camera consumes more bandwidth than a 1MP camera, we built many functions to make bandwidth usage more efficient. VIVoTEk advised our integrators on ideal camera settings to consider, such as SVC, CBR, cropping, and local storage.” SVC provides more effective bandwidth and processor resource management by simultaneously dividing video data into multiple layers with different resolutions, picture sizes, and frame rates to meet the requirements of different client devices and network conditions. CBR offers flexible bit rate control in terms of maintaining stable bandwidth and allows users to simultaneously set an upper-bound mode for live viewing and choose an average mode for recording.

MultiStreaMing

for each pixel. Due to this bigger pixel size, even with full HD (2MP) resolution, we are able to improve the sensitivity remarkably,” said the executive at Sony. “As the cliché in the industry goes, higher resolution equals lower the sensitivity. The improvement in the sensitivity of our latest sensor is very clear if one compares the full HD (2MP) image cut-out from the image sensor used in 3MP to Sony’s newly-developed full HD (2MP) native image.” As a pioneer of network cameras, Vivotek spent significant amounts of effort on image quality and improving brightness,

The multistreaming feature delivers a number of video streams with different types of compression, such as H.264 with MJPEG. These streams facilitate bandwidthefficient viewing and recording. The streaming availability and technology is highly dependent on the camera’s

Steve Ma, Executive VP, ViVotEk

processor, as each brand has its own approach. Some brands make the most out of this feature as a key differentiator, while others believe it is not a game changer. Most manufacturers offer at least two streams, with some supporting three or even four independent streams. “Currently in our high line portfolio, we have three image sensors representing 720p and 1,080p resolutions. The sensor defines the maximum resolution for four streams and the type of streams that can be generated in HD streams; SD or HD streams, as a copy of the first stream; i-frame only streaming for recording; and MJPEG streams,” said Ad Biemans, Product Marketing Manager of Video Systems for EMEA at Bosch Security Systems. Avigilon has a proprietary HD stream management feature. “The feature enables users to manage video signals through the transmission and storage phases without losing any of the visual quality of the signals. With the feature, only the requested portions of captured images are sent to operator workstations optimizing the amount of bandwidth required. In addition to reducing client bandwidth, the feature also greatly reduces the processing load on the remote client,” said Rick Ramsay, Senior Product Manager at Avigilon. “The feature offers a unique way of working with multiple streams of H.264 compressed

Ad Biemans, Product Marketing Manager of Video Systems, EMEA, Bosch Security Systems

Rick Ramsay, Senior Product Manager, Avigilon

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Product Exploration video to overcome many trade-offs. When multistreaming is enabled for H.264 video, the feature will adaptively manage both a full resolution and a lower resolution stream to the NVR and viewing client. The lower resolution stream will be used for any overview streams where detail is not required, allowing efficient viewing of large numbers of H.264 compressed video streams simultaneously. When a single stream is zoomed in for more detail, that stream will be automatically sent in full resolution while other streams are kept in low resolution for an overview version of the image. This allows details to be viewed from one video stream while keeping the overall streaming bandwidth low.”

warranty Customers do not want to purchase disposable cameras that need to be replaced or require maintenance constantly. Camera maintenance can be a huge expense, which is why end users pay attention not only to specs, features, and algorithms, but also to warranties and aftersales support as well. Most manufacturers provide a two-year or three-year warranty. If other types of warranty are requested, some providers offer extension programs. IQinVision, on the other hand, offers

Alex Doorduyn, Director of Product Marketing, iQinVision

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a five-year all-inclusive warranty on the majority of its products. “The only products which come with our shorter three-year warranty are those with auto back focus or motorized zoom and focus lenses,” said Alex Doorduyn, Director of Product Marketing at IQinVision. When certain models are no longer manufactured, “we charge for repairs but still offer free telephone support for cameras outside of warranty.” IQinVision believes that customers should not allow manufacturers with poor quality products and manufacturing processes to dictate the life-span of a technology solution, especially in such a vital industry like security.

Marketing ideaS Video surveillance is undergoing the SD to HD transition. HD video affords clearer pictures, which in turn enable a whole new batch of use cases. The benefits are clear. What is not clear is how users should approach this new technology and what they should expect from it. As seeing is believing, live demonstrations are designed to show how a camera or a technology works. Another benefit of demonstrations is audience interactivity. Honing in on the convenience of the Internet, Secubest puts detailed information and live demonstrations of its 2MP cameras online. “Customer

Eva Chu, GM, Sales and Marketing team, Secubest

Max Fan, Sales Director, Brickcom

can experience live HD images, durability, and design of our cameras through website demos,” said Eva Chu, GM, Sales and Marketing Team at Secubest. Sensing the proliferation of social media marketing, LILIN readjust its marketing strategies to better meet local requirement based on cultural differences between East and West, according to Steve Hu, Product Manager at Merit LILIN. Brickcom started out as a networking solution provider and prefers to use toy trains to display full HD images plus wireless transmission in real time. “We also exclusively design an interactive demo of 2MP cameras to highlight the plug-andplay, easy-to-use, and auto-focus feature. What we highlight is not only the product itself but brand creation as well. We want to forge impressions that beside hardware, software, and reliability are what we dedicated to,” said Max Fan, Sales Director at Brickcom.

vertiCal-SpeCifiC SolutionS Vertical segments such as commercial buildings, education, retail, transportation, city sur veillance, traffic monitor ing, air por ts, and bank ing have demands for 2MP cameras. “In

Steve Hu, Product Manager, Merit LiLiN


our product portfolio, we have several specialty cameras that serve special needs. For instance, we have a range of cameras that are designed to be used in the most demanding conditions including extreme temperature ranges a n d v a n d a l - p ro n e l o c a t i o n s,” s a i d Biemans. “one example is a vandalproof corner-mount camera, which is particularly used in prisons, hospitals, and elevators. Additionally, we have range of license capture cameras that deliver high definition license plate images for security, vehicle surveillance, and intelligent transport systems.” Manufacturers such as Axis Communications and Brickcom design and manufacture cameras for desert-like environments. “In desert areas — which make up about one-third of Earth’s land

Erik Frännlid, Director of Product Management, Axis Communications

surface — there are mining, oil and gas fields, pipeline installations, as well as cities that need surveillance cameras that can withstand extreme heat and harsh conditions such as sandstorms,” said Erik Frännlid, Director Product Management at Axis Communications. “In desert environments, it is critical for a camera with moving parts to have a high enough operating temperature

Adler Wu, Product Manager, Hikvision Digital technology

to ensure optimal and reliable performance. The reason is that a camera with direct exposure to sunlight can be heated to a temperature of at least 15 degrees Celsius over the surrounding temperature, so an air temperature of 45 degrees Celsius may mean that the camera has to operate at 60 degrees Celsius or higher. A PTZ camera that is not designed to operate at such

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Product Exploration temperatures would have extra wear and tear and a shortened life span. Some of our cameras can operate in 75 degrees Celsius down to minus 20 degrees Celsius, and their advanced climate control system can handle rapid temperature changes to eliminate condensation. The cameras are designed to address a range of environmental conditions including temperature shock , solar radiation, and sand.” Brickcom launched cameras exclusively for certain areas such as Russia, the Middle East, Thailand, Indonesia, Australia, and New Zealand due to their extreme weather. These cameras are IP 67 rated with built-in fan and heater to cope with outdoor environments and harsh weather. With the rapid growth of cities, Hikvision is eyeing the oppor tunity of traffic monitoring. “ With detailed recognition and fast image capture speed, our solutions are sure to bring smarter surveillance and relief to traffic monitoring,” said Adler Wu, Product Manager at Hikvision. “ This improved resolution allows authorities to not only assess potential situations more quickly but to allow them to respond in a timely manner.” Despite the new opportunities 2MP cameras bring, manufacturers are advised to look at new ser vice models and solution offerings to stay in business, especially amid economic uncertainty. Although reliability has always been the most important factor in security, it is financially and operationally sound to think outside the box to cater to the needs of customers of different verticals, regions, or cultures.

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Network Camera: Basic vs. Top Specification Feature

Basic Specification

CPU: 533 MHz (SoC CPU) Flash: 32M RAM: 256M DDR Sensor Type : 1/2.8” Sony Exmor CMOS Sensor Sensor Resolution : 2,048 x 1,536 pixel SNR: > 50db 0.3 lux (F1.3, B/W) 1 lux (F1.3, Color) H.264 / MPEG-4 / MJPEG Simultaneous multiple streams Multi-Profile Image Management Day/ Night/ Sunset/ User 1/ User 2 Auto Exposure Control Manual Exposure Control: 1/24,000~1/5s Manual Gain Control: 1X ~ 15X Manual White Balance Control: 2,000K~7,000K >50 dB

Top Specification

CPU: 930 MHz (SoC CPU) or ARM 1176 Flash: 64M RAM: 2G DDR Sensor Type : 1/1.8” Sony Exmor CMOS Sensor Image Sensor Sensor Resolution : 10,240x 1,920pixel (20MP) SNR: > 55db 0.01 lux (F1.2, B/W) Minimum Illumination 0.1 lux (F1.2, Color) Compression and H.264 / MPEG-4 / MJPEG/MJPEG-2 Streaming Simultaneous multiple streams Multi-Profile Image Management Day/ Night/ Sunset/ User 1/ User 5 Auto Exposure Control Video Setting Manual Exposure Control: 1/30,000~1/5s Manual Gain Control: 1X ~ 15X Manual White Balance Control: 1,400K~9,400K S/N Ratio >55 dB 20M 10,240x1,920@3 fps 3M : 2,048x1,536 @15fps 3M : 2,048x1,536 @15fps Image Resolution 2M (Full HD): 1,920x1,080 @30fps 2M (Full HD): 1,920x1,080 @30/60fps 1M (HDTV): 1,280x720 @30fps 1M (HDTV): 1,280x720 @30/60fps Motion Detection/ Schedule/ Audio Detection/ Motion Detection/ Schedule/ Audio Detection/ Event Triggers Digital Input Digital Input/Line Counting Stream/Snapshot to FTP/Email/Samba/SD-Card Stream/Snapshot to FTP/Email/Samba/SD-Card Event Actions HTTP/Email Notification/ Digital Output HTTP/Email Notification/ Digital Output Audio Streaming 2-way Audio Support 2-way Audio Support G.711, AMR (8 kHz, Mono, PCM) Audio Compression G.711, AMR (8 kHz, Mono, PCM) G.729 Audio Input/ Output Line in/Line out Line in/Line out Ethernet : one 10/100Mbps RJ-45 Ethernet : one 10/100Mbps RJ-45 Supported Protocols : TCP/IP, UDP, ICMP, DHCP, NTP, Supported Protocols : TCP/IP, UDP, ICMP, DHCP, NTP, Communication Protocol DNS, DDNS, SMTP, FTP, HTTP, Samba, PPPoE, UPnP, DNS, DDNS, SMTP, FTP, HTTP, Samba, PPPoE, UPnP, RTP, RTSP, RTCP, IPv6 RTP, RTSP, RTCP, IPv6 DC12V/1A(Power Supply) DC12V/1A,24VAC (Power Supply) Power Input PoE:802.3af Compliant PoE:802.3af Compliant RJ45 Ethernet Cable Connector RJ45 Ethernet Cable Connector General I/O Terminal Block(DI/DO, RS485 included) General I/O Terminal Block(DI/DO, RS485 included) External MIC/Line Input External MIC/Line Input External Audio Output External Audio Output Interface Reset Button Reset Button Micro SD/SDHC memory card slot Micro SD/SDHC memory card slot TV out (video out) TV out (video out) 3G USB Dongle 3G USB Dongle USB (Image Down load) Max. Power 6W 4W Consumption OS: Microsoft Windows 7,8/Vista/XP/2000 OS: Microsoft Windows 7/Vista/XP/2000 Browser: Mozilla Firebox, Internet Explorer 7/8/9 or Browser: Mozilla Firebox, Internet Explorer 7/8 or above, Safari, Google Chrome above, Safari, Google Chrome Viewing System & Cell Phone: 3GPP player Cell Phone: 3GPP player Requirements Real Player: 10.5 or above Real Player: 10.5 or above Quick Time: 6.6 or above Quick Time: 6.6 or above VLC VLC MS Media Operating Temperature 0°C ~ 50°C Operating Temperature 10°C ~ 75°C Operating Conditions Operating Humidity : 10% ~ 80% Operating Humidity : 10% ~ 90% Certification FCC, CE FCC, CE, UL Warranty Limited 2-year warranty 5-year warranty CPU


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Product Exploration

Network Storage Caters to Different Applications

Storage is an integral part of any video surveillance system. It is also typically the most expensive component. However, knowing the best method of storage to meet end-user and regulatory requirements would greatly reduce costs and enhance reliability. n BY AlyssA FAnn

W

ith more options, selection of the best storage method to suit specific needs and situations becomes more complex. “Previously, technology revolved around reducing the quality of the recorded video or the frequency with which video frames are recorded on the storage media. In recent years, however, the advent of and attraction to higher resolution cameras, combined with regulations that require extended retention periods of high-resolution, real-time footage, have made these practices useless and obsolete,” said John Minasyan, Senior Product Manager of IP Video Management Systems at Pelco by Schneider Electric. “More than ever, the industry today is faced with finding a cost-effective, highly reliable, scalable storage architecture to satisfy end-user and regulatory agency requirements.”

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Storage requirementS The choice of storage typically depends on the size of business, the investment model, and the storage needs. Most importantly, security systems must be scalable, flexible, and able to adapt to a company’s changing protection needs.

Considerations should factor in bandwidth and system requirements and whether the system is capable of delivering the demands. Typically, installations deploy one method or a combination of methods for storage. Government regulations, industr y standards or internal best practice often set requirements regarding recorded video. “The storage time and the amount of recorded data determine what storage solution is required, not to mention that different markets have different requirements. For example, it is common for retailers in certain regions to save recordings for 30 days,” mentioned Jarmo Kalliomäki, Product Manager at Axis Communications.


Regulations vary between states within the U.S. and between countries. “ The backlog in criminal cases in California courts mandate that video evidence be archived for 365 days. In gaming applications in the state of Nevada, video footage for all gaming cameras have to be captured at 30 images per second at a minimum of 4 CIF resolution for seven days. In France, recently enacted public safety laws required 4 CIF resolution, real-time video for all public safety and city surveillance applications,” echoed Minasyan.

Large-ScaLe inStaLLationS NVRs are the go-to default storage option in the megapixel camera world. In addition, larger-scale projects prefer centralized management and storage of video and recorded data. There are a number of challenges in large-scale surveillance deployments. From a storage perspective, according to IDC, these include managing multiple, long streams of content, ensuring that enough storage is installed (or can be installed) so that video streams can be recorded continuously without interruption, and ensuring the quality of video stream. If a storage system cannot keep up, frames will be dropped. Large -scale installations, such as airports, governments, enterprises, and critical infrastructure will opt for PC-based storage or server-based storage. Such verticals require superior computing power, along with high security. PC-based storage or server-based storage offers more reliability and stability on this front. Storage capabilities depend on the scale of the security system in question. For example, a 100-camera system with seven

Hosted Video RecoRding estimates The number of cameras possible will depend on the connection speed and the recording mode used according to this table. Internet connection

Speed

Continuous recording

Event-based recording*

download/upload

320x240

640x480

320x240

640x480

Slow ADSL

521 kbit/256 kbit

1

0

1 to 5

1 to 2

Fast ADSL

24 Mbit/2 Mbit

1 to 6

1 to 2

1 to 10

1 to 4

Fiber**

100 Mbit/10 Mbit

1 to 10

1 to 10

1 to 10

1 to 10

Fast fiber**

1000 Mbit/100 Mbit

1 to 10

1 to 10

1 to 10

1 to 10

Note: All calculations are based on 5 fps with MJEG.

* The number of events triggered will impact on the number of cameras possible. ** With a fast connection, more cameras are possible. For more than 10 cameras, additional accounts is recommended. Source: Axis Communications

days of storage, recording at 24 hours per day at 15 images per second, using MJPEG compression could require more than 30TB of storage. Consequently, “a solution that will store large amounts of data for a long period, typical in a government segment, should consider centralized solutions like NVRs or server-based storage,” mentioned Kalliomäki.

compLementing centraLized Storage Fo r l a r g e o r g a n i z a t i o n s , f a i l o v e r solutions are increasingly required. In these situations, edge storage is often deployed and work as a complement to central storage, recording video locally when the central system is not available for any reason. Alternatively, the end user may prefer to deploy edge recording simultaneously with the central system so that missing video clips caused by network disruptions or the central system are not lost. The images are, instead, recorded by the camera, retrieved at a

later time, and merged with the central storage. Hence, "today we do not see edge storage as a solution for primary storage in enterprise deployments. However, we do see a fit for edge storage as a way of adding redundancy to your deployment," echoed Tom Larson, Director of Global Accounts at BCDVideo. When integrated with a central storage system, edge storage increases the comprehensiveness of the video surveillance system for mission-critical installations, remote locations, and mobile situations. For example, edge storage can improve video analysis for systems with low network bandwidth where video cannot be streamed at the highest quality. “Edge and centralized storage can, and do, actually complement each other in many situations. Edge storage provides an excellent ‘buffer’ in the connectivity of a camera that would be otherwise considered unreliable,” explained George Scholhamer, VP of Sales Engineering

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Product Exploration at Pivot3. “Take for instance a shipping lane, with wireless cameras located a l o n g t h e w a t e r w a y. We a t h e r c a n frequently interfere with communication between the camera and the SoC, and edge storage can ensure that while transmission may be interrupted, actual video will not be lost during the disturbance. As cameras are frequently being pushed to the edges of facilities, the quality of the link will suffer.” W h i l e c l o u d s to r a g e m ay n o t b e ideal for mission- critical locations, some governments have adopted it to complement and enhance their current surveillance systems. For example, the county of Taoyuan is home to Taiwan’s main international airport and serves as the international air hub of Taiwan. Traffic monitoring on the roads is enhanced with cloud-based intelligence, allowing police forces to identify and track suspicious vehicles across multiple cameras in real time. Ac c o rd i n g l y, M a r k e t s a n d M a r k e t s repor ted key ver ticals for VSaaS are commercial, institutional, residential, industrial, and infrastructure.

muLti-Site BuSineSSeS Multi-site businesses benefit with PC-based NVRs, server-based storage, and cloud storage. “Geographically dispersed organizations can greatly benefit from NVRs. The only way these businesses have survived and thrived is by deploying cutting-edge wide area networks (for general business needs), and the video surveillance and security system should be able to ride on the same infrastructure,” said Mike Scirica, VP of Marketing and Sales at WavestoreUSA. Cloud storage is especially suitable for multi-site businesses that would like the ability to monitor all their stores at once. Also, if there are issues with the system, IT personnel do not have to waste time travelling between stores. For example, in many emerging countries such as Mexico, travelling from business location to location within cities can take hours. Heavily populated areas in Latin America create heavy traffic congestions, burdening productivity with lengthy and unavoidable traffic jams. Cloud storage can relieve this burden and increase overall operational efficiencies.

edge stoRage estimates A 32GB SD card typically stores two to four weeks of video for additional storage details see table as below: 32GB SD/SDHC card*(days)

Storage/day* (GB)

Frame rate (fps)

Camera resolution

45

0.7

15

VGA

27

1.2

30

VGA

19

1.7

10

HDTV 720p

9

3.6

30

HDTV 720p

* Numbers are calculated using Axis Design Tool, based on 30 percent H.264 compression, 20 percent motion detection and medium scene activity. Source: Axis Communications

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edge and cLoud Storage Shine in reSidentiaL and SmaLL BuSineSS SectorS Residential and small businesses have security needs too, but they are more riddled with budget concerns and may require less complex storage methods. Edge storage would appeal to residential and small businesses. “Edge storage offers the easiest scalable video surveillance solution for small systems up to 16 cameras,” said Kalliomäki. Currently, as memory cards of 64 to 128GB give the most efficient storage in solutions up to four cameras. “ Typically, we are seeing smaller companies deploying edge as a fairly low-cost method of storage while it provides a failsafe measure in medium to large applications,” said Brian Song, MD of IDIS Europe. Cloud storage is perfect for smaller businesses and chain stores because it is highly suitable for up to 10 cameras per site. Some vendors, for example, offer hosted service solutions that provide features to improve retail business o p e r a t i o n s s u c h a s d r i ve - t h ro u g h promotions, daily deliver ie s, c a s h protection, guest verification, and third party services including POS, manpower distribution and remote handling of package delivery. Hence, hosted service is offering more than just surveillance on the cloud, and this is one of the drivers of its uptake. The selection of storage options on the market today offers so much more to end users. Remote storage in the cloud is becoming more affordable and edge devices are more intelligent.


Product Exploration Standalone NVRs Advance in Market Over PC-Based NVRs NVRs are rapidly replacing DVRs, but a closer look reveals that the NVR market pie is divided by standalone NVRs and PC-based NVRs. Although they are not “birds of the same feather”, they share many similar features. Not surprisingly, their target markets are increasingly overlapping. This article looks at just how much they are overlapping. n bY AlyssA FAnn

N

VRs began as PC-based solutions, harnessing the powers of a CPU. However, in recent years, these are no longer the mainstream products on the market. A couple of years ago, standalone NVRs were introduced into the market, catering to the increasing popularity of network cameras. Since then, their popularity has risen in the industry and standalone NVRs are claiming their spot as the mainstream video storage product. Another NVR develop in recent years is in response to community- and city-wide surveillance projects. The NVRs that cater to this market segment are large with powerful data processing capabilities.

PC-based vs. standalone While both PC-based and standalone NVRs record video, store video, and manage cameras, recorded content, viewing and archiving, the differences between the two lie in how they operate and the features they provide. Standalone NVRs are smaller and more compact in size compared to PC-based NVRs. In terms of performance, standalone NVRs operate on SoC and usually have one or more DSPs for video compression, decompression, and a CPU for other functions. On the other hand, PC-based

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NVRs utilize the CPU for video compression/ decompression, viewing and recording content, and managing cameras. Currently, standalone NVRs are better suited for systems where the number of cameras is within the limits of an NVR’s capacity. PC-based NVRs are decidedly more powerful in processing data, and offer much more flexibility in storage scalability, compared to standalone NVRs. PC-based systems also offer more camera scalability, whereas standalone NVRs tend to have an upper limit of camera capacity. Standalone NVRs triumph over PC-based NVRs in the following areas: price, reliability, and stability. With fewer components and packaged in a compact case, they are appealing in price and more reliable in performance. They are also more stable, secure, and less prone to viruses and hacks,

as they run on Linux, as opposed to a Windows-based system. Finally, as they run on a standalone operating system, they have a shorter boot time, compared to the longer loading time required by PC-based NVRs. With their many benefits, standalone NVRs are gaining traction in the market. In response, several manufacturers are hearing this call and offering attractive products. For example, Shany Electronic is launching standalone NVRs in 4-, 20-, and 36 channels to meet the market demands of SMB enterprises. In this way, smaller projects benefit from the features and capabilities of standalone NVRs and SMB enterprises are able to save substantially on costs. More importantly, “these NVRs are not only powerful, but also boast ease-of-use features, such as auto search and built-in

We work hard to show end users and system integrators the benefits of standalone NVRs. Eric Shen, Product Manager of DVR/NVR, Hikvision Digital Technology

[Our] NVRs are not only powerful, but also boast ease-of-use features, such as auto search and built-in network power to remove the need of a PoE switch. Steve Tang, GM, Shany Electronic


network power to remove the need of a PoE switch. The perk of this function is that it further reduces costs for customers as they do not have to purchase PoE switches, which could be costly. PC-based NVRs, for example, require substantial investments such as licenses for Windows, video analytics software, and monitors,” said Steve Tang, GM at Shany Electronic.

target Markets According to Joe Qiu, Overseas Business Director at TVT Digital Technology, the choice between PC-based NVRs and standalone NVRs depends on end users. More customers are familiar with PC-based NVRs now due to historical reasons, while more and more will adopt standalone NVRs because of their better prices and higher reliability. Currently, standalone NVRs are optimized at operations of up to 64 channels, although some manufacturers such as Hikvision, Dahua, and TVT are

Dahua has paid attention to this trend and we have been strengthening and completing our product offerings to meet the market demand. Ice Wu, Product Director, Dahua Technology

offering ones with over 100 channels. In the future, more and more applications would be covered by standalone NVRs. However, the number of channels is not the only deciding factor. Aaron Yeh, Director of Surveon Technology, noted that some installations require more complex functions, such as integration with POS and delivery systems. In this scenario, even a franchised convenience store may require a PC-based NVR which is further integrated with its headquarters. Generally, PC-based NVRs are deployed in large-scale projects, such as enterprises, and government and mission-critical applications. They may also be deployed in high-end homes or smaller-scale enterprises with more complex security requirements.

a comparison between 32-channel pc-based and standalone nVrs Type

Standalone NVR

PC-based NVR

CPU

ARM

X86

System Inputs

32 IP inputs

32 IP inputs

Overview Picture

Operation System Local Output

Live View Resolution Recorder Resolution Record Capacity

System Booting Time Power Consumption Client Site Price

Dimension

Linux embedded HDMI/VGA/CVBS 720p/D1/CIF

1080p/720p/D1 8TB

Faster

Less than 300W Max. 1~2

Cheaper than PC-based Slim and compact

Window-based HDMI/VGA

1080p/720p/D1 1080p/720p

8 SATA (2TB each) Slow

More than 300W Max. 10

Expensive

Big and heavy

On the other hand, standalone NVRs are best suited for homes and small businesses with systems of up to 16 channels. QNAP Security, for example, recently completed a project in India where a gas company deployed standalone NVRs at its multiple sites. According to Evelyn Kao, Product Manager at Surveillance Business Division of QNAP Security, standalone NVRs met end-user requirements in terms of budget, reliability, local display feature, and functionality.

overlaPPing Markets Undoubtedly, standalone NVRs and PC-based NVRs will have overlapping markets, but the question is how large and where is this overlap. In response to this, several industry experts have referenced the history of DVRs. According to Yeh, based on the ease-ofuse, affordability, stability, and reliability of standalone NVRs, the initial overlapping areas will be in the small businesses. The overlap, however, does not necessarily represent a threat to PC-based NVRs, as these small-scale installations have traditionally required less complex functions that PC-based NVRs are capable of. The advent of standalone NVRs will naturally fulfill the requirements of the end users in this segment comfortably. Beyond that, Yeh said, “there is still a large analog market and standalone NVRs will naturally replace the DVRs that are still out there.” “Just like DVRs, when NVRs first came out, they are only available in the PC-based form. End users with less complex requirements

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Product Exploration had no other option, but now with the standalone NVRs available, it is natural that they will adopt it at a rapid pace,” he added. Hence, some feel that standalone NVRs will take over some market share of PC-based NVRs, but this will be mostly concentrated in the mid-market segments. The mid- to high-scale installations will remain reserved for PC-based NVRs as end users require more channels and more complex integration, scalability, and storage. At the same time, “PC-based NVRs may have an advantage because VMS technology is mature. However, with the adoption of advanced solutions and more efforts invested in standalone NVR technology, the scalability and flexibility of standalone NVRs would be enhanced dramatically. In other words, the rapid development of standalone NVRs would greatly decrease the traditional merits of PC-based NVRs,” commented Ice Wu, Product Director of Dahua Technology on the development of standalone NVRs. The rising popularity of standalone NVRs has resulted in numerous manufacturers sprouting up in Shenzhen, China. Although standalone NVRs from these manufacturers come with a considerably lower price tag, Wu does not feel the need to be threatened by them. “I feel that they will have their place in the market, albeit mostly at the

lower end. Dahua has paid attention to this trend and we have been strengthening and completing our product offerings to meet market demands," she highlighted.

Market trends bY region According to Chris Hsu, Marketing Manager at Merit LILIN, conservative market figures for PC-based versus standalone NVRs are approximately 92 percent versus 8 percent this year. The ratios would likely change in favor of standalone NVRs to 85:15 next year, and 70:30 the year after. The uptake of standalone NVRs is different amongst the various regions worldwide. “China is a mature market and the world’s manufacturing hub of standalone NVRs. Hence, from our perspective, roughly 80 percent of the market is standalone NVRs,” said Eric Shen, Product Manager of DVR/NVR at Hikvision Digital Technology. The figures are slightly different in other regions of the world. “In emerging countries, the ratio of standalone NVRs to PC-based NVRs is roughly 50:50. The ratio is less for Europe and North America, because these regions are headquarters to many of the PC-based systems and have traditionally been more used to PC-based systems as a result,” explained Shen on the regional difference in the adoption of standalone NVRs.

Conservative market figures for PC-based versus standalone NVRs are approximately 92 percent versus 8 percent this year. Chris Hsu, Marketing Manager, Merit LILIN

There is still a large analog market out there and standalone NVRs will naturally replace the DVRs that are still out there. Aaron Yeh, Director, Surveon Technology

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Education remains key to the widespread adoption of standalone NVRs in these regions. “We work hard to show end users and system integrations the benefits of standalone NVRs and we find that this has been successful in penetrating the developed markets. At the same time, however, the first segments to adopt standalone NVRs would be the small and medium enterprises as they stand to benefit most,” explained Shen.

How tHe Market will sHift In looking at why PC-based NVRs currently have more presence in the market, Qiu explained that standalone NVRs have just been in the market for roughly three to four years and have yet to reach mass adoption stage. Currently, approximately 60 to 70 percent of the market is dominated by PC-based NVRs. However, based on the history of DVRs, the standalone DVR market matured in 2007 and rapidly reached mass adoption stage within three years. Drawing a parallel, he noted, “based on current market trends, it is likely that roughly 80 percent of the end users will select standalone NVRs in the near future. There will still be that 20 percent who would have special requirements and opt for PC-based NVRs. This is because the PC is a platform that enables end users to integrate multiple other systems as required. At the same time however, these are very specialized needs, so the majority of the market will gear towards standalone NVRs.” As standalone NVRs improve in capabilities and features, they stand to rival PC-based NVRs even further. The day when the global market share of standalone NVRs versus PC-based NVRs is 50:50 should not be far off.


Product Exploration

Food for Thought:

Tips to Accurate VCA Users often complain about the inaccuracies associated with video content analysis technologies, however, the inaccuracies are often caused by improper usage or incorrect solutions chosen for their facilities. n By Christine Chien

M

any users purchase and employ video content analysis (VCA) in hopes that it would be the miracle solution to all their problems. As a result of the over exaggeration of VCA capabilities in its earlier days, users believed the technology will soon be able to replace human operators. They soon came to realize these claims were mostly propaganda, which resulted in great

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disappointment over the effectiveness of employing VCA. Nowadays, the technology is more advanced and mature compared to its previous prototypes. So why are users still having trouble with their VCA? The answer is quite simple. Users need to be educated about the technology and its capabilities, so there are no misconceptions about what the VCA can or cannot achieve. “In

some respects, we are attempting to use computers and algorithms to replicate what the human eye and a substantial part of our brains are used to accomplish. Cer tainly, systems benefit from the automation achieved by today's video analytics but it is not a replacement for human decision making," said Larry Bowe, President of PureTech Systems. As humans are naturally equipped with


An outdoor system must use stabilization to compensate for wind and vibrations; it must have geo-registration capabilities to create accurate size filters that ignore irrelevant motion. John Romanowich, CEO, SightLogix

VCA is not a plug-and-play technology, an experienced vendor will not only have robust technology, but also know how to plan and deploy successful VCA projects. Illy Gruber, Product Marketing Manager, Nice Systems

humans use, and at least at this point, are not intended to replace the human who makes decisions based on the information the system provides. The success of an analytics program is to know your application, know your environment, and know exactly what information you want the system to deliver,” said Shahar Ze’evi, Senior Product Manager at American Dynamics (Tyco Security Products).

Terms and CondiTions

the ability to read and decipher body languages of other people and register events as they occur, we automatically have the ability to register the meaning behind it and whether it is something that can or cannot be ignored. Video intelligence is not as flexible in that sense.“ Video analytics is good at detecting clearly definable simple activities. Video analytics is not good at inferring intent,” stated Mahesh Saptharishi, President & CTO of Video IQ. Users must have a good grasp of the type of VCA functions they will need for their applications. “Analytics are a tool that

When it comes to indoor and outdoor applications, there are vastly different requirements from the VCA. “In terms of environment, lower end solutions are best used in simple, stable scenes such as intrusion detection in indoor areas. More challenging environments such as perimeter with dense moving foliage and shadows cast by vehicles on roads will often prove too difficult for lower end solutions,” advised Andrew Eggington, Director of Ipsotek. Oftentimes, disappointments from customers arise because they employ what may be better suited for indoor applications for outdoor use. An outdoor system must use stabilization to compensate for wind and vibrations; it

must have geo-registration capabilities to create accurate size filters that ignore the movement of animals, trash, trees, and other irrelevant motion; it must be ruggedized to withstand temperature extremes, weather, sand, and dust, according to John Romanowich, CEO of SightLogix. Depending on the application, thermal cameras with VCA is recommended for outdoor applications as it will ignore nuisances such as stray headlights and reflections that would otherwise set off the alarms on visible cameras. Thermal cameras are also great for environments with little or no lighting, as it will be able to detect people and objects better than regular cameras in complete darkness. For VCA to achieve optimal results, the cameras in use must have good picture quality and picture content. The VCA solution should only be deployed in places where they will generate value. Most of the time, employing analytics will result in a change in users’ current camera deployments. “Customers should consider camera positioning if they are thinking of using analytics. Analytics needs a clear view of the target and many existing surveillance

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Product Exploration cameras are positioned too far away or the cameras are too low so that the targets are hiding each other,” said Geoff Thiel, CEO of VCA Technology. Take counting as an example, “counting can only be reliable if the camera is installed above the scene, ideally on top. Looking horizontally it will not give good results. The algorithm needs a certain time to analyze the scene: the longer the detection, the more precise the analytics,” said Achim Hauschke, CEO of Riva. If the camera can be easily blocked by other objects or people passing through, the VCA will be rendered useless.

Reasonable Expectations Since VCA is not a plug-and-play technology, an experienced vendor will not only have robust technology, but also know how to plan and deploy successful VCA projects, according to Illy Gruber, Product Marketing Manager at Nice Systems. “Ask for a performance commitment from vendors, though it is tricky because vendors will not commit ‘blindly’ to any performance, but experienced vendors should be able to indicate overall expected performance in the user’s specific environment based on site survey and proper planning.” Also, users need to understand that VCA, no matter how high end, is susceptible to false alarms. “A sensitive system will always produce a small number of false alarms, which can be minimized but not completely eliminated if the VCA is also

▲ It is important that cameras are not easily affected by varying ligh conditions and be able to capture and register vehicle license plates when traveling at a high speed.

to detect,” said Frank Brandtner, Head of Administrative Product Management at Geutebruck . There are different approaches users can take to decrease the percentage of false alarms in their settings. Some vendors will offer free evaluation periods to customers to best educate potential customers about their products while reviewing customers’ requirements to offer the best recommendation, according to Sadiye Guler, Founder President of intuVision. Users can take advantage of this offer and test to see if the VCA will really be beneficial to their applications. Once users are aware of the conditions to obtain the most accuracy in their applications, they will be removed of their former misconceptions and expectations of VCA features and functions.

A sensitive system will always produce a small number of false alarms, which can be minimized but not completely eliminated if the VCA is also to detect. Frank Brandtner, Head of Administrative Product Management, Geutebruck

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inTelligenT Video for VerTiCals For those who are able to determine the conditions of their application setting, it will be easier to choose the right features that can target their application, though the VCA still has to be calibrated individually for each application. At the same time, vendors must explain clearly to customers the limits of each function and the most appropriate settings for the video. Several intelligence functions are applicable across all market segments. “Camera tamper detection, intrusion, and motion detection can be used in almost any scenario where a security camera is wanted,” said John Sepassi, Account Executive at IntelliVision. People counting, loitering, object classification, and object left behind are also among the features commonly requested across verticals. Object left behind detection however, proves to be a difficult one to achieve in crowded environments, which ironically, is where it is most requested. Being able to keep up with all that goes on in the facility, on the grounds, or on the road at all hours on a daily basis all year round, offers users a better peace of mind.


Transportation Vehicle analysis features such as ALPR/ LPR, vehicle counting and recognition, tailgating, speed detection, stopped vehicle, and wrong direction detection are widely adopted in verticals such as transportation, traffic, and city surveillance, but also corporations and enterprises, and education settings. Not only can this increase road safety and driving conditions, it helps to minimize accidents on highways and local roads, while enforcing vehicle parking violations, and ensure parking lot management. It is important that cameras are not easily affected by varying light conditions such as street lamps, headlight reflections from the vehicles, or parking lot illumination. They must be able to capture and register vehicle license plates when traveling at a high speed.

Business Intelligence Customer and marketing analysis or business intelligence-related features such as people counting, flow management, crowd detection, and face detection and recognition are highly requested features for any vertical that deals with a large number of people on a daily basis. This can include retail, banking, gaming, public transportation, airports, restaurants and museums, and hospital settings. For each of these verticals, the VCA must be able to determine customer flow, crowd detection, dwell time, and utilize its face detection/ recognition abilities to compare against its existing database of black lists and white lists. Black lists include wanted criminals and terrorists; the white lists range from VIPs and valued customers to frequent flyers, depending on where it’s being used. In gaming and airport applications, functions such as multiple-camera tracking across

While VCA has proven itself to be extremely valuable in certain situations there are still areas for improvement. Daniel Wan, UK Marketing Lead, Honeywell Security

several screens are also necessary for following targets as they move through different areas of the facility. With an increasing trend in business intelligence, placing VCA in a retail setting can effectively help management determine reasons for good or bad results in their stores. If used correctly, VCA acts as a powerful tool for retailers to increase general store performance, measure staff performance, analyze the effectiveness of marketing activity, improve loss-prevention, map the use of floor space and help with staff planning according to Thiel. Features such as spill detection or slip-and-fall detection are especially useful in such environments as it can quickly alert store employees. Slip and fall is also a feature requested by hospitals to detect patients who had fallen and were unable to get back up. As patients may roam the halls unaccompanied when they’re not being watched, hospitals need to raise their awareness to these situations to prevent further injuries to their patients.

Fire and Safety Fire and safety features, though important across all verticals, are one of the most important features for the industrial sector, including critical infrastructures, mines, and oil refineries. Many of these infrastructures may employ thermal cameras equipped with analytics for a better detection rate through smoke and steam. These locations have higher chances of being put in

high risk situations. A power generator or transformer overheating, a leak in the pipes, any unusual activity has a chance of setting off an unwanted explosion or fire. Oftentimes, the ceilings of these facilities are higher than that of regular infrastructures, causing the alarm to be delayed by the time smoke or fire reaches the detectors. Having analytics that can recognize these abnormalities can greatly decrease the chances of such events from occurring. Perimeter detection also becomes quite an important feature as only authorized personnel should be accessing these facilities due to the numerous safety cautions surrounding such facilities. VCA is flexible enough to be used in a variety of settings, but it is important users are clear on what to expect. "While VCA has proven itself to be extremely valuable in certain situations there are still areas for improvement in features such as queue management and people counting in an area (not through a doorway), or face recognition and identification for these applications," said Daniel Wan, UK Marketing Lead at Honeywell Security. Oftentimes, customers will hold high expectations for VCA features that are still much too unrealistic at this point in time. Also, users must ask themselves if employing VCA for their application will really make a difference in their operational efficiency. It is easy to become dependent on certain technologies, but in some cases, they may not be needed at all.

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2013 middle east buyers guide