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January 2012 Vol. 34,, No. 1
CONTENTS
Security’s keenest minds tell you what lies ahead in technology, markets, the industry, business operations, legislation, threats and challenges. — See page 50
❮❮ 2012 Industry Forecast Issue
42
COVER STORY: Execs Explain How to Outpace the Competition
In an exclusive roundtable, presidents and general managers from four leading installation firms discuss the current state of their regional markets and provide details of how they are positioning their companies for success in 2012. By Rodney Bosch
Indicate Challenging Road Ahead 50 Signs SSI’s 2012 Industry Forecast queries more than two dozen security authorities from all corners of the industry to tell you what to expect and how to target success. While customers expect more and competition is intensifying, security integrators and dealers are uniquely qualified and positioned to come out on top. By Scott Goldfine
54 The welfare of patients, medical personnel and staff are a top prior-
◗ COLUMNS
8 Between Us Pros With Scott Goldfine A review of 2011 headlines to help you move forward in 2012.
12 Advisory Board Forum With Mike Jagger
Why ECV makes alarms less effective.
22 Convergence Channel With Paul Boucherle
How you can begin providing energy management solutions.
26 Tech Talk With Bob Dolph
Software programs to help you do your job better, faster.
Protecting Those Who Protect America
ity for any hospital but perhaps even more so where it concerns the brave and honorable men and women who have served and sacrificed to keep America free. Multiple VA hospital case studies show how advanced fire/life-safety systems are providing safe haven for veterans. By the Editors of SECURITY SALES & INTEGRATION
60 Funding for government projects has slowed but that is only a tempo-
36 Fire Side Chat With Shane Clary
Predicting the direction of the fire alarm industry in the next few years.
40 Monitoring Matters With Peter Giacalone
Why remote services mean so much to the well-being of your business.
How to Make Government Biz Less Taxing
rary hiccup in a security market with unlimited potential for skilled and savvy integrators. Experts in video surveillance, access control, biometrics and physical barriers lay out the tools for success. By the Editors of SECURITY SALES & INTEGRATION
Take a step back and let your employees shine.
76 Legal Briefing With Ken Kirschenbaum A 9-point checklist for a successful 2012.
◗ DEPARTMENTS
❮❮ Special Pullout Section
Imaging for A1 Thermal D.U.M.I.E.S., Part 3 of 4
Thermal Camera Applications By Bob Wimmer Cover photo by Phil Gudenschwager
2
74 The Big Idea With Ron Davis
4 15 64 66 70 72
Security Exchange Industry Pulse The Essentials Ad Index Building Your Business MarketPlace
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Security Exchange Web Watch securitysales.com
RIGHT
NOW ON
securitysales.com VERTICAL MARKETS CHANNEL
securitysales.com/channel/ vertical-markets.aspx One of seven targeted channels (others are Business Management, Video Surveillance, Access Control, Fire/Life Safety, Intrusion, Systems Integration), this section offers everything related to vertical markets. It includes industry and business news, trends and technology features, installation case studies, application articles, product notices, expert columns, blogs and more.
Whether it’s K-12 schools and institutions of higher learning; healthcare facilities; financial institutions; retail chains and establishments; office buildings; industrial complexes; government and homeland security; sports and entertainment venues; houses of worship; home controls and entertainment; correctional facilities; municipal surveillance; petrochemical plants; etc. — you’ll have all the info you need at the click of a mouse. Tailor
Peggy Onstad Publisher, ext. 477 Rodney Bosch Managing Editor, ext. 426 Paul Boucherle, Shane Clary, Ron Davis, Bob Dolph, Peter Giacalone, Ken Kirschenbaum, Jeff Zwirn Contributing Writers
Scott Goldfine Editor-in-Chief 114 Chatworth Lane Mooresville, NC 28117 (704) 663-7125 Fax: (704) 663-7145 Ashley Willis Associate Editor, ext. 419
Sr. Production Manager Sarah Paredes, ext. 497 Art Director Margery Young Audience Marketing Manager Katie Fillingame
your sales strategies and technical expertise to the unique needs of specific security sectors by making the Vertical Markets Channel a primary online destination.
WEB-O-METER
5 most-viewed news stories during November
Staff E-mail addresses are firstname.lastname@security sales.com (e.g. scott.goldfine@securitysales.com) Contributors‘ E-mail addresses are secsales@bobit.com. HOW TO CONTACT ADVERTISING & MARKETING
■ West
Dynise Plaisance-Hiebert 3520 Challenger St. Torrance, CA 90503 (760) 519-5541 Fax: (310) 533-2502
■ East Peggy Onstad 3520 Challenger St. Torrance, CA 90503 (949) 305-5541 Fax: (949) 305-5549
ADVERTISING SALES TERRITORIES
Respected Industry Veteran Dies in Car Crash
New Startup Relaunches Razberi NVR After Demise of GVI Security
Report: Consumers Willing to Spend $10 a Month on Smart Home Services
AT&T to Launch Home Security, Energy Management Business
NextAlarm’s Premier Dealer Program Helps Build Brand Recognition
SECURITY SCANNER®
Security Scanner® Web Poll Question:
Classified-MarketPlace Ads Peggy Onstad, (949) 305-5541
How do you feel about the 2012 presidential race at this point? FEARFUL OF A SECOND OBAMA TERM
HOPEFUL FOR A SECOND OBAMA TERM
BELIEVE GOP WILL WIN CLOSE BATTLE
BELIEVE GOP WILL WIN BIG
46% 20% 17% 9%
WHO CARES, BOTH PARTIES STINK!
8%
This being the Forecast Issue, we asked security professionals to predict the 2012 election. Regardless of which side of the aisle your allegiance lies, you likely expect President Obama to remain our nation’s chief executive for another four years. While the electronic security industry is primarily comprised of conservative Republicans, the latest Security Scanner Web poll results shows only 26 percent of respondents envision a GOP candidate emerging capable of being voted into the White House. When asked four years ago who they planned to vote on in the 2008 election, 25 percent endorsed Obama. Log onto securitysales.com to view SSI’s Security Scanner archives as well as cast your vote for the January question: If a surplus of cash became available, which of the following would your company most likely spend it on? BLOGS
• Do Women Have Strong Footing in the Security Industry? • 49ers V.P. Talks Stadium Security and NFL’s Collaborative Efforts • Can Alarm Companies Stop Cable Providers, Telcos From
HOW TO GET YOUR NEWS TO US E-mail: secsales@bobit.com Mail: 3520 Challenger St., Torrance, CA 90503 Fax: (310) 533-2502 FOR SUBSCRIPTION INQUIRIES (888) 239-2455
www.securitysales.com/blog
Some of the things we’re talking about …
EDITORIAL ADVISORY BOARD Ed Bonifas, Alarm Detection Systems, Aurora, Ill. Bill Bozeman, PSA Security Network, Westminster, Colo. Shandon Harbour, SDA Security, San Diego Jim Henry, Henry Bros. Electronics, Fair Lawn, N.J. Michael Jagger, Provident Security, Vancouver, British Columbia, Canada John Jennings, Safeguard Security and Communications, Scottsdale, Ariz. Sandy Jones, Sandra Jones and Co., Chardon, Ohio J. Matthew Ladd, The Protection Bureau, Exton, Pa. Mike Miller, Moon Security Service, Pasco, Wash. Joe Nuccio, ASG Security, Beltsville, Md. Alan L. Pepper, Mitchell, Silberberg & Knupp LLP, Los Angeles Eric Yunag, Dakota Security Systems, Sioux Falls, S.D.
For the latest news as it happens, sign up for SSI’s eControl Panel at www.securitysales.com
BOBIT BUSINESS MEDIA Edward J. Bobit, Chairman Ty F. Bobit, President & CEO (310) 533-2400 Printed in USA
Stealing Customers?
• Evaluating Security Product Substitutions for Installations Engage in the conversation! 4
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Security Exchange Sounding Off Alarm Firm Unfairly Targeted in Fire [Comment regarding news story, “Fire Victim Blames Alarm Company for Defective System”] I see no blame for the security company here. One smoke is not a fire system and just like every other installation, I am sure it wasn’t sold as one. They didn’t even have it monitored
so how can the alarm company be responsible for anything? I wouldn’t have given the money back. Yes, I feel bad for them but the system didn’t start the fire so it isn’t the alarm company’s responsibility. I would have sued them for the signs and Facebook pages. “WESTLEY” Online post
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I recently spent a few days looking over Bob Dolph’s “Tech Talk” writings. I rarely take the time to compliment people but his topics require positive reinforcement. I have a dozen techs who work for me and I downloaded a few of his articles to share at our training meeting. Several of the topics are spoton for the “street-level” tech. I am a firm believer in mentoring/training and constant improvement. I showed one of my techs Dolph’s double trap and asked him to consider applications for it. He thought it an elegant, simple, low-tech and workable alternative. He also mentioned that in the seven years he was in the industry prior to coming to work with me that he had never seen point-to-point beams installed as we do. We cut the post and installed a coupling about 4 inches above ground. If the bad guy tries to step on the post from the fence, it breaks off or bends to generate an alarm situation. Not as elegant as Dolph’s technique but a simple, low-tech trick. DAVE TESCHNER, Corp Operations Manager Southern Alarm Savannah, Ga.
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[Comment to the Under Surveillance blog post, “How Power Problems Can Corrupt Your Security Solutions”] The funny thing is most security technicians have no idea how to deal with the power quality issue. Most technicians try to combat it using surge suppression, which only gets excited by overvoltage not undervoltage. What affects this issue on security systems? Back-up generators, brownouts, loss of phase and inductive loads, like a bunch of HVAC systems all coming on at the same time. These all cause voltage drops or blackouts as well as a current rise, not to mention utility issues. In South America it is mostly a utility issue, but here in the U.S. more and more of these issues are caused by industrial and commercial settings. And they are getting worse by the year. JOHN PECORE, President Stormin Protection Products Tampa, Fla.
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Between Us Pros
News You Can Use to Plan 2012
F
or better or worse, we can finally close the books on 2011. The year that began like a lion with the roar of revenue renewal ended like a lamb limping to keep pace in a listless economy. As we look onward and hopefully upward in the New Year, remember the axiom, past performance is no guarantee of future results. Whether or not last year was successful for your business, you must remain as dogged as ever in order to prosper in 2012. To help your cause, SSI’s Industry Forecast Issue provides keen observations and advice from a large cross section of security’s sharpest minds. This includes Managing Editor Rodney Bosch’s CEO roundtable summit held during November’s First Alert Professional Convention (page 42) and my
compilation of authoritative opinions in the 2012 Industry Forecast (page 50). While the onset of a New Year typically brings fresh perspectives and optimism, albeit likely more cautious than ever, the next 12 months will not occur in a vacuum. The challenges, trends and opportunities that define 2012 will at least to some extent have taken root during previous years.
INSTALLATION & MONITORING ADT Dispatcher Saves Family From CO Poisoning Industry takes a beating in mainstream media, but there are plenty of positive stories out there. How Central Stations Prepared for Hurricane Irene The economy wasn’t the only thing wreaking havoc as severe weather also took its toll. Illinois Bill Would Allow Fire Districts to Monitor Municipal monitoring heated up, but collaborating with alarm industry showed promise in Houston. Vivint Gets $75M to Enter Solar Market Progressive and aggressive residential security provider continues to push into new areas. Verizon Enters Home Control, Monitoring Biz A parade of telecom and cable operators expanded into security and intensified competition. Protection 1 Targets $100M in National Accounts A year after acquiring P1, CEO Tim Whall had revamped the commercial side of the business. TECHNOLOGY Half of IT Execs Report Cloud Service Breaches While many in physical security tout the “cloud,” it could be ushering in a new level of risk. Network Video Sales to Surpass Analog in 2014 Although slowed by the recession, IP remains destined to dominate the surveillance space. NFC to Become Standard Mobile Feature Near-field communications (NFC) drew notice as a way to make the smartphones an access card alternative. Verint Acquires PSIM Vendor Physical security information management has become one of the industry’s fastest growing areas.
By Scott Goldfine scott.goldfine@ securitysales.com
Hence the saying, hindsight is 20-20. This brings us to the top 10 viewed news stories on SSI’s Web site during 2011 (see list below). I’ll leave it to the reader to draw conclusions and theorize the ramifications of these items. What I will do is dig a bit deeper to point out 15 other stories that flew lower on the radar but I believe are extremely telling.
MANUFACTURING Schneider Electric Exploring Bid for Tyco Int’l What would have been the biggest transaction of 2011 fizzled, but it may not be dead yet. UTC Combines Fire & Security, Carrier Units UTC continued to shuffle its fire and security business in the wake of the GE Security acquisition. Honeywell Security & Communications Exec Exits Industry leader known for stability saw JoAnna Sohovich depart after just 15 months on the job. GVI Security Shuts Down Operations Recession effects remained with layoffs at leading firms like Cisco and Schneider Electric (Pelco). Smith & Wesson Sells Perimeter Security Business Famous brand that had targeted alarm business dissolves dealer program and sells off interests.
◗Top 10 Viewed News of 2011 $4.6M Wrongful Death Settlement Puts Focus on Industry Best Practices ACLU to Chicago: Stop Adding Surveillance Cameras APX Rebrands as Vivint, Adds Home Automation Products Tyco in the Hunt to Acquire Visonic Obama Signs Pair of Security-Friendly Bills Into Law Missouri Attorney General Sues Pinnacle Security for Unethical Sales Practices Stanley Seeks to Purchase Niscayah for $1.2B Tyco Splits ADT, Commercial Fire & Security From Flow Control Unit ADT Settles Suit With Family of Murdered Minnesota Woman SSI Honors Sales and Marketing Excellence at 2011 SAMMY Awards
Editor-in-Chief Scott Goldfine has spent more than 13 years with SECURITY SALES & INTEGRATION. He can be reached at (704) 663-7125 or scott.goldfine@securitysales.com.
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Tech Talk Advisory y Board Forum
It’s Time to Offer Real Alarm Response By Mike Jagger mike@providentsecurity.ca
O When the alarm trips, nothing happens. Nobody responds. Nevertheless, our industry continues to sell an outdated story that is simply not true anymore. Mike Jagger is President of Vancouver, British Columbia, Canada-based Provident Security.
ur industry has had a good run. For decades we were able to get away with providing an incomplete service. We installed and monitored alarms, but as soon as they actually tripped, the police department handled the immediate response. The police provided that crucial component of our industry’s ‘service,’ mostly without any real cost. What other industry has experienced a free ride like this? Today’s reality is different. Response is more important than ever, but the ability of police to provide it no longer exists in most of North America. While the budgets of most police departments have gotten tighter, the number of installed alarms has grown exponentially. More alarms meant more false alarms. More false alarms meant more wasted police time. More wasted police time has led to verified response or nonresponse policies. It doesn’t matter how well the system was installed, whether your installer cleaned up after him/herself or even how friendly your central station operator was to your client if when the alarm actually tripped, nothing happened. That is the reality in most homes and businesses. When the alarm trips, nothing happens. Nobody responds. Nevertheless, our industry continues to sell an outdated story that is simply not true anymore. Big-budget television commercials mislead consumers by suggesting that when an alarm trips, police will respond. In many of those ads, the police arrive to arrest the burglar — who is invariably dressed in black and sporting a balaclava — just in time to save the day for the hapless woman home with her two young children. In others, the crowbar-wielding crook simply runs away after hearing the alarm siren. Our industry is still making money using fear to sell that failed promise. It won’t last much longer. Rather than tackling the reality that our industry has changed and we can no
longer sell a service that relies on the police (at least without paying for them), industry organizations like the Security Industry Alarm Coalition (SIAC) have instead fought to prolong the death of an outdated business model. Lobbying city councils and police departments in an effort to retain police response is one thing, but creating new ways to mislead consumers is much worse. “Enhanced Call Verification” (ECV) has been heralded by many in our industry as the solution to the false alarm problem. SIAC certainly thinks so. ECV has reduced the number of false police dispatches, and that’s great. What isn’t great is it has achieved that ‘success’ at the cost of rendering a burglar alarm even less effective. Isn’t anyone worried about clients catching on? Rather than wasting time calling one number while a home is broken into, the alarm company will call two. That’s the ‘enhanced’ part. It’s certainly not enhanced for the client. It’s not like there aren’t any viable solutions. Audio verification has been a solution for commercial properties for years. There is no shortage of companies using video verification to separate real burglaries from false alarms. At our company, Provident Security, we provide a guaranteed five-minute response, by our own guards, to client alarms. False alarms are not the problem; they are the opportunity and future of our industry’s business model. Rather than wasting time trying everything possible to hang on to an old and broken business model, why not focus on providing the service that clients really need? There is a lot of talk in the industry about the ‘threat’ of telephone and cable companies offering security services. The bigger threat is clients wising up to the fact that our industry has lied to them. The latter will hurt all of us far more than new competitors offering a different version of the same broken service. ■
12 securitysales.com • JANUARY 2012
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Industry Pulse In Depth
Alarm Industry Stunned by San Jose’s Sudden Shift to Nonresponse Compounding the strains on the SJPD’s resources, the city’s budget shortfall led the department to cut 66 police officers from the force in 2011, according to Michelle McGurk, senior policy adviser and public information officer for the office of San Jose Mayor Chuck Reed.
Photo via Flickr (Thomas Hawk)
SAN JOSE, Calif. — The police department here is no longer responding to unverified alarms as of Jan. 1, a change in policy that alarm industry officials say was sudden and unexpected. California Alarm Association (CAA) learned about the nonresponse policy after a member company from
On Jan. 1, the police department in San Jose, Calif., implemented a nonresponse policy and will no longer respond to residential and commercial alarms unless a break-in can be verified. The change in policy took the alarm industry by surprise.
the Silicon Valley Alarm Association (SVAA) read a statement that was posted on the police department’s Web site a week before Christmas. The announcement “came as a complete surprise” to the alarm industry, which has previously worked closely with the city on alarm management issues, CAA Executive Director Jerry Lenander tells SSI. “The SJPD represented that they wanted to work with the industry and community, but we had no notice of the policy change until the posting on their Web site,” he says. Police officials say they are following the lead of other cities including Fremont, Calif., Las Vegas and Salt Lake City that have stopped automatic alarm responses to limit false dispatches.
“This proposal was approved as part of San Jose’s budget last June,” McGurk says. “We face another $25 million shortfall in June 2012. Given our budget situation, our police department is choosing to deploy officers where they are needed the most.” SJPD says it will continue to respond to alarms involving banks, ATMs, critical infrastructure, firearms dealers and explosives, as well as panic buttons or robbery alarms. The police department says in 2008 it conducted a study of false alarms and found that more than 98% of all alarm calls in the city were in fact determined to be false alarms. The cost of the false alarms to the department was $662,000, according to the study. SJPD also maintains that it respond-
ed to 12,450 alarm calls in 2010, and of those, 98.4% were false alarms, SJPD Public Information Officer Jose Garcia tells SSI. “We only arrested two individuals out of the more than 12,000 calls,” he says. “Less than 1% of the calls resulted in a police report being filed. Responding and investigating to those alarms wasted a lot of time and resources when a lot of the times it’s a mechanical problem or a user error.” The alarm industry maintains the 2008 SJPD false alarm audit — the results of which are posted on the department’s Web site — is misguided, Lenander says. “The fact that they relied on 2008 study caught my eye because we know that there has been a significant reduction in alarm calls because of enhanced call verification [ECV],” he says. “So that 98 percent false alarm rate is discredited because it’s not a valid measurement.” To come up with an accurate percentage, SJPD would have to research and analyze false alarm data, similar to what the Los Angeles Police Department (LAPD) performed in 2011, according to Lenander. By analyzing the data, the LAPD determined where the false alarms were coming from, which allowed the department to reduce its alarm dispatches from 150,000 to 40,000. “Traditionally, the municipal governments are the biggest offenders,” Lenander says. “But once you start stripping some of those away, you really find out where your problem is and you can address it. Additionally, LAPD noted that if they eliminated all response to alarms, there would be no tangible savings in redeploying patrol resources. So, for the SJPD to say, ‘We have to respond to more important crimes,’ is not really a proven fact.” securitysales.com • JANUARY 2012 15
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Industry Pulse Industry News
ASG Makes 2 End-of-Year Acquisitions BELTSVILLE, Md. — ASG Security closed out 2011 with two large acquisitions totaling more than $615,000 in recurring monthly revenue (RMR) and opened branch offices in Austin and Corpus Christi, Texas. Previously owned by Luther King Capital Management, Texana Security brings more than 21,800 customers, 90 employees and $500,000 in recurring monthly revenue (RMR) to ASG. The mix of 60% residential and 40% commercial clientele is serviced from four locations in Texas: Weslaco (Security Depot), San Angelo (San Angelo Security Services), Abilene and Dallas. The company owned and operated a central station in San Angelo along with a national accounts operation in Dallas that will augment ASG’s
existing national accounts office in Lancaster, Pa. ASG’s acquisition of LV Systems of Oklahoma City included 6,150 accounts, 29 employees, about $115,000 in recurring monthly revenue (RMR), plus the company operated its own central station. Formerly owned by Ron Lee and Andy Snyder, the 30-year-old firm’s accounts comprise 62% high-end residential and 38% commercial clients. As the firm readies for the New Year, ASG President and CEO Joe Nuccio tells SSI he’s excited about the opportunity to continue executing the firm’s strategic initiatives, which include a mix of acquisitions and organic expansion as a primary driver of RMR growth.
Cathedral City (Calif.) Reinstates Alarm Response CATHEDRAL CITY, Calif. — The police department in this desert community near Palm Springs will once again respond to all alarms following the adoption of a new alarm ordinance. Following approval by the City Council in December, the ordinance mandates that businesses and homes must be permitted to operate an alarm, plus they will be subject to fines for false alarms. In August 2010, Cathedral City police adopted a verified-response policy in an attempt to drastically cut back on the number of false dispatches. Police were only responding to security alarms if alarm companies or witnesses verified a crime was taking place. Alarm industry representatives, including Stan
Martin, executive director of Security Industry Alarm Coalition (SIAC), and Jon Sargent, industry relations manager for ADT in the West, continued to work with the police department to provide information about successful false alarm reduction programs following the enactment of the city’s nonresponse policy. “This result is a great example of how the industry can continue to work with law enforcement in spite of circumstances or changes that we might not necessarily agree with,” Martin tells SSI. “We sincerely appreciate the openness and professionalism of this law enforcement agency in continuing to work with us and explore alternatives that are suited to serve the public.”
ASG Security closed out 2011 with a pair of large acquisitions. Above, the firm’s executive team led by Joe Nuccio (center), president and CEO.
“In 2012 we will be looking to continue to build out the East as we have done and we are looking to continue to build out the West, and contiguously, if those opportunities arise,” he says.
PSA Security Launches Biz Solutions Offering WESTMINSTER, Colo. — PSA Security Network has launched PSA Business Solutions, a suite of value-added resources to provide installing security contractors with discounts on office and business supplies, as well as access to software and Web site applications. Security professionals can tailor each solution to fit their business, according to PSA Security Network President and CEO Bill Bozeman. “The solutions enhance integrators’ business models, reducing their operating costs, and keeping their businesses competitive in the marketplace,” he says.
HID Buys Visitor Management Provider EasyLobby IRVINE, Calif. — HID Global has acquired secure visitor management supplier EasyLobby of Needham, Mass. The acquisition delivers potential synergies with HID’s portfolio across its identity and access management business. EasyLobby’s product suite of enterprise-class visitor registration, tracking, reporting, badge printing, Web-based preregistration, and employee/contractor time and attendance functionality, is tightly integrated with a wide variety of access control, HR and other systems. “The addition of EasyLobby’s product suite, large installed base and strong customer engagements will enable us to broaden our offering to include trusted solutions for a wide range of visitor management applications,” says HID Global president and CEO Denis Hébert.
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Industry Pulse
HOT SEAT: Helping Convert the Analog Holdouts to IP Video As director of network solutions for Tri-Ed/Northern Video Distribution, Jeffrey Stout travels extensively throughout North America conducting IP-based training sessions for the company as well as speaking at industry-related forums. He joins the Hot Seat to lend his expert insights and advice for installing security contractors that haven’t exactly jumped headlong into the IP waters as yet. What do you project in 2012 for IP video opportunities? The IP video market is growing exponentially. A greater number of manufacturers are entering this space than ever before and traditional analog suppliers continue to expand into the IP video arena. The markets that have already adopted IP video as a standard will continue to offer tremendous opportunity. These include government, K-12, colleges-universities, health care and transportation. The retail market will begin to adopt IP video as a standard because of the ‘business intelligence’ analytics that are available or being developed. Retailers will be able to count people, determine age and gender, and monitor traffic flow in their facilities. This will provide valuable information to a store owner for marketing purposes as well as the traditional video security benefits. Also, the residential video marketplace is continuing to see strong growth. With the addition of mobile apps and fee-based cloud storage, dealers can meet the ever-changing needs of the residential customer by utilizing IP-based video systems. The biggest challenge looking forward will be to understand and recognize an IP video opportunity and
Jeffrey Stout Director of Network Solutions Tri-Ed/Northern Video Distribution
having personnel on staff who feel comfortable installing a networkbased system. If the future is a mix of analog and digital video, should dealers that want to provide the cost-conscious end user with a future migration path stop installing coax? The cost of upgrading cable from a labor standpoint can make it prohibitive for an end user to upgrade to IP video. By using Category cable — Cat5e, Cat-6 or Cat-6a — the dealer can future-proof the cable plant and make the upgrade path to IP video less costly. While there are media converters on the marketplace that can transmit data over coax, Category cable and video baluns offer an easier and less expensive migration path to IP video from an analog installation for the end user. What do you see as a common denominator among those dealers that are hesitant to make the leap into IP?
The most common roadblock to making the leap into IP video is the fear of the networking component. To overcome this, invest in your staff by giving them basic network training. Most manufacturers are offering products that help eliminate many of the pitfalls, so a basic understanding of networking is typically enough. For larger systems, learning how to work with your customers’ IT departments will help in the installation process. If a dealer gets ‘buy in’ from the IT department prior to the sale, the installation process will be much smoother and they will encounter far fewer headaches. As your company installs more IP-based systems, it may become necessary to hire a network-certified professional. Can video analytics now be deployed by the traditional security dealer in an efficient and profitable manner? Video analytics vary in its complexity and its ease of deployment. Most dealers would be able to deploy basic analytics such as loitering, fence-line monitoring, color matching and others without much difficulty. Some of the more complex analytics like facial recognition, license plate recognition, or age-gender determination may require some specialized training from a manufacturer, but still should not be out of reach for almost any dealer. Analytics allow a dealer to customize and enhance the effectiveness of any IP-based video system so that the end user achieves the highest level of protection with a minimum of nuisance notifications. For much more from our conversation, visit F tthe h Hot Seat at securitysales.com/hotseat.
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Detect. Defend. Defeat. When the castle is threatened who will defend it? Introducing IMPASSA -- the next generation Self-Contained 2-Way Wireless Security System from DSC. Engage the strategic speed, intelligence and control of IMPASSA to detect, defend and defeat any possible threats. High Performance Wireless Security with Integrated Cellular & 2-Way Audio Alarm Communication.
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www.dsc.com Š 2011 Tyco International Ltd. and its Respective Companies. All Rights Reserved.
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Industry Pulse DataBank
Demand for Cloud-Based Value-Add Services Increased broadband penetration is serving to compel Internet service providers (ISPs) to modify their market strategy. Many ISPs are looking to value-added services to retain customers and serve as platforms for future revenue growth. Installing security contractors would be wise to keep pace and expand their own service-offering portfolios. Among these additional services are remote monitoring and home automation. (Note: charts represent percentage of respondents rating their interest in value-added services as a 6 or 7 on a 7-point scale, where 7 means “Extremely interested.”)
◗SECURITY CIRCUIT
Broadband Value-added Service Adoption and Interest (Among U.S. Broadband Households)
■ Receiving Service
ScanSource Security will host an installment of its IP Workshop & Expo in Dallas on Feb. 15.
■ Interested in Service
Antivirus software service
Feb. 2-4: ASIS Int’l CPP Certification Review and PSP Certification Review — Scottsdale, Ariz.; asisonline.org; (703) 518-1429.
Parental control features
Online backup service
Feb. 6-7: NTC National Training Conference 2012 — Aliante Station Casino & Hotel, Las Vegas; nationaltrainingcenter.net; (702) 648-8899.
Premium technical support services
Feb. 15: ScanSource Security IP Workshop & Expo — Dallas; scansource.com; (864) 288-2432.
IP camera-based home monitoring service (self-installed) 0%
Source: Parks Associates
30%
60%
Feb. 27-March 1: 2012 Biometrics Summit — Miami; aliconferences.com; (773) 695-9400. Feb. 27-March 1: ASIS Int’l Physical Security: Introductory Applications and Technology — New Orleans; asisonline.org; (703) 518-1429.
Appeal of Home Security Monitoring Features (Among U.S. Broadband Households)
■ Not Appealing
■ Very Appealing
Did You Know?
E-mail/text notification if smoke, fire, water, or gas leaks are detected in your home
Dealers (including mass marketers and national companies) install an average of
E-mail/text notification whenever someone enters/exits your home
180
Security cameras that can be remotely monitored through a computer or mobile phone Source: Parks Associates
40%
residential and commercial intrusion alarm systems annually. 20%
0%
20%
40%
60% Find more SecuritySTATS at www.securitysales.com/securitystats
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actual image
MegaDome
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Performance, versatility and efficiency… from every perspective Any way you view it, MegaDome® Series megapixel dome cameras deliver superior performance and functionality for any video surveillance application. They’re an all-in–one imaging solution complete with a high performance megapixel camera, megapixel lens and ruggedized IP66 rated dome enclosure. Available with 1.3, 2, 3, and 5 megapixel sensors in color or Day/Night configurations, Arecont Vision offers the MegaDome solution to meet your specific application. And MegaDome’s highly efficient H.264 compression conserves valuable bandwidth and storage requirements further contributing to their lower total cost of ownership and ROI. It’s all the performance, versatility and efficiency you need £ nÇÇ , nÊUÊ£ n£n ÎÇ äÇää from any perspective. Only from Arecont Vision. avsales@arecontvision.com arecontvision.com MADE IN THE USA
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Convergence Channel
Invest Energy to Save Energy and Power Profits Security systems integrators are uniquely positioned to capitalize on the trend toward saving energy and sustainability. Providing energy management solutions is a natural extension of the relationships, skill sets and system capabilities already inherent in servicing clients.
S
3 Compelling Reasons to Dive In First of all, being the strong advocate of return on investment, it is clear that BAS/HVAC integrators have used this approach for decades. These companies are so confident in doing their homework, technical skills, field experience and modern systems technology that they regularly execute “performance” contracts with customers and share in the cost savings. There are some lessons they could teach, as well as learn from their counterparts in the physical security integrator market. Secondly, combining skills in access control and video systems with new applications of using these systems to save energy decreases the payback period for funding physical security systems. Using access control to grant access to tenant space isn’t new. Turning on the lights and energy metering saves
©iStockphoto.com/ZoneCreative
aving energy costs is smart business, yours and your customer’s, and it’s good for our planet as well … hey, a threefer! If you claim the title of systems integrator, then you are savvy in solving complex and technical challenges. If you aspire to be a solutions provider, you must be good at solving business challenges. Helping your customers save energy will require you to do both of these well. But is it really worth all the energy it’s going to take? Watt? Of course it is. It might even be the crown joule on your business collection. Sorry, the punmeister in me sometimes LEEDs me down this path. Darn, I did it again! All fun aside, energy measurement, management and sustainability certification trends are good business for several reasons.
By Paul Boucherle paul@matterhornconsulting.com
Combining skills in access control and video systems with new applications of using these systems to save energy decreases the payback period for funding physical security systems. Integrators need to learn the language, trends and methods of energy management.
energy and provides a new billable revenue stream for building management. This is especially true for multiple occupancy and unique new mixed use properties that have been all the rage. Third, there are significant opportunities for building relationships with BAS integrators that want to grow their business through alliances rather than adding full-time employees, as well as training costs in a business they don’t know; especially in these economic times. So what is the best way to get the ball rolling? You must learn the language, trends and methods of energy management. The cost for energy is a fluid dynamic that varies regionally, which means each opportunity is as unique as are the customers that purchase these solutions. Energy-efficient buildings are often referred to as “smart” buildings. Buildings aren’t smart, people are. If you are smart you should look at how and what information is delivered, and where in the building that information is deposited. Then you can begin to see the possibilities of streamlining building information management with physical security information management.
How Access Control Skills Fit In So we are good to go, right? Not so fast my friend! Next you need to do some ground-pounding reconnaissance legwork with your favorite customers. While you may be in new territory, don’t be afraid and make sure your senior management team is involved with this important step to ensure they clear-
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ly understand the true risks and the opportunities in entering this market. “You can’t manage what you don’t measure” is a famous quote attributed to Dr. Demming, my favorite management guru. So an energy-savings process begins with evaluating what current energy cost and usage trends are for your customer today. Next, you really do need to check a customer’s willingness to upgrade their systems. Money now is always different than money later; ask your accountant. Upgrading energy management can be as simple as better control of the controls. Take for example, the thermostat by authorized individuals; the key word being authorized. Now where else does authorized access, schedules for access and programming around business operational usage apply? Yep, electronic access control feels about right. What makes this interesting is that to accomplish energy savings, there is the easy way and the hard way. The hard way requires a serious commitment to manpower, training and competition. The easy way is to do what you already do: • Understand your customer’s facility’s operational needs and usage under normal and unusual situations. • Understand where the key energy control points (thermostats) are located in their facilities, and what heating and cooling equipment they currently have installed. • Do some homework on suppliers that sell solutions that provide remote control of thermostatic controls via the cloud. This approach allows your customer more efficiency to program the facility via the Web and a new revenue source for your company.
Tips for Better Design and Projects I reached out to some trusted clients and friends to gain some additional perspective and got some great feedback. One who really stood out was Roy Hoffman Jr., the president of MC² who actually has three times
©iStockphoto.com/Doug Berry
Convergence Channel
Saving energy costs is smart business, and it’s good for our planet. Systems integrators can use their ability to solve both complex technical and operational challenges to help customers save energy.
as many credential initials behind his name than I do. That’s right, a real rocket scientist! Besides being a SE Partner, his company also does structured cabling and physical security. Some thoughts he shared with me for this article include: • Designing and upgrading building systems with a single provider can save money, time and headaches for both the customer and integrator. The customer has “one throat to choke” and the integrator can fully explore the best technology solutions and consolidate their purchasing power yielding project savings. • Upfront and early involvement in building operational requirements, tenant characteristics, energy performance opportunities and reducing security risks to the owners is a recipe for a successful project and energysavings program. • Streamlining the communication networks, as well as carefully designing network drops, can yield 1525% savings in upfront project wiring costs, improve system integrity and lower long-term service costs.
Get Inside Customers’ Businesses Most physicists view energy as the ability to perform work defined as force X matter X distance. Since I did not pass the rocket science test in college, I am going to simplify the idea a bit. Let’s think about saving energy by reducing the individual workloads
our customers must perform in their buildings. Now this is going to fly in the face of convention. I know, new ground for me, and will require a new approach to selling complex solutions because it takes you out of your comfort zone! Allow me to elaborate. Force yourself and your individual stakeholders to take a fresh look at the energy it takes to do their jobs everyday with discrete and aging systems for BAS, HVAC, security, video, and access control systems that require more BandAids, budget dollars and hassle. It does matter because in these times what has worked in the past won’t cut it in the future, especially if the “hidden” costs are compartmentalized and not recognized for what they really are, wasteful. You must go the distance to build some bridges between departments; really understand how and why inefficiencies are not addressed. And be willing to paint a compelling business and system solution for senior management to fund. So who is the one person that could really help you out? Who looks broadly at the entire financial landscape and has the ear of the CEO … the controller or CFO! It is their responsibility to look at the big picture for saving money and streamlining operating expenses. So when you think about saving energy, think about it from a big picture perspective. Save your company some energy by doing your homework with existing customers to learn the real costs of managing lots of different building systems. Save your customers some energy by delivering more technology and services from a single vendor; one phone number is easier to remember than five isn’t it? Save some energy for the environment because it’s our responsibility to our children. Finally, save energy because it is expensive and upselling solutions that save money make great business sense. ■ Paul Boucherle, Certified Protection Professional (CPP) and Certified Sherpa Coach (CSC), is principal of Canfield, Ohio-based Matterhorn Consulting (www. matterhornconsulting.com). He has more than 30 years of diverse security and safety industry experience and can be contacted at paul@matterhornconsulting.com.
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What alarm dealers in the know, know Fastest signal transmission
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call 800-237-6387 or visit www.aes-intellinet.com SS1converg.indd 25
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Tech Talk
20 Ways to Save on Support Software From a business standpoint, whether in the office or in the field, just about everything we do is software reliant. All those programs can cost a company a bundle. Fortunately, there are now numerous lowto no-cost options out there robust enough to handle the load.
T
o celebrate the New Year, I am providing some gifts to all our dedicated “Tech Talk” readers in the form of hot tips. In 2011, we covered technologies to help your operations run smoothly, fast, efficiently and economically. This proved to be a popular theme and therefore is one we will continue with throughout 2012. We begin this month with a mix of software aimed at simply doing our jobs better. Recently, I posed this question online to the security trade: “What are some favorite open source or freeware program(s) you use in daily operations?” In several LinkedIn groups this was a very popular thread
and much was discussed. I now share this insight with you.
Endorsing the Free-for-All Approach Before jumping in, allow me to explain the difference between open source and freeware programs. While both have no cost, open source software is supported by programming groups and often has the source code, allowing for customization. Freeware programs are no-cost software provided by both for-profit and not-for-profit organizations. Software manufacturers will often use freeware as a basic-features offering in the hope users will upgrade. At some
By Bob Dolph bdolph.ssi@gmail.com
point, the software manufacturer may start requiring a fee for a new version of its program. Older, still free versions can sometimes be found at oldapps.com. Many suppliers of free software also encourage small donations or tips that demonstrate user appreciation. One good reference location for open source software is sourceforge.net. In the past, I would not have considered mentioning free software as it was perceived to be beneath the stature of a professional technology column. However, some of these programs have matured considerably in recent years with very impressive capabilities that can often compete head-on with similar commercial software. Let’s take a look at some of these nifty programs. If you see any of interest, just do a Google search to locate it.
9 Programs to Pursue Neil Hellwig, RITP, CSP, a territory manager for SecurityReps of Orlando, Fla., states, “I use a lot of freeware/shareware/open source software on a daily basis. I find that the quality and functionality many times equals or exceeds commercially available products.” Hellwig highlighted the following as some of his recommendations:
Courtesy Disk Space Fan Team
Technologies such as digital video files can be demanding and create storage challenges. The free Disk Space Fan program allows techs to have a new and exciting tool to visually analyze precious disk space.
• Microsoft Security Essentials (security suite) • AdAware Free (spyware detection and removal tool) • Malwarebytes (anti-malware utility) continued on page 35
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DUMIES THERMAL IMAGING FOR
DEALERS / USERS / MANAGERS / INSTALLERS / ENGINEERS / SALESPEOPLE
Thermal Camera Applications
© 2012 Video Security Consultants
Continuing Education Sponsored by FLIR Part 3 of 4 Brought to You by
Presented by
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THERMAL IMAGING FOR
DUMIES
Part 3 of 4
HOW TO WIN WHEN
Applying Thermal Formerly the domain of the very high end of the security and maritime markets, thermal imaging technology is expanding fast and branching into myriad industries and applications. As costs continue to tumble, thermal-enabled devices proliferate and unhinge potential uses and revenue opportunities. Find out where the technology is today and likely heading tomorrow.
elcome to Part III of the latest in SECURITY SALES & INTEGRATION’s acclaimed “D.U.M.I.E.S.” series: “Thermal Imaging for D.U.M.I.E.S.” Brought to you by FLIR, this four-part series has been designed to educate readers about recent advances in technology and systems that are likely to shape this decade’s progression of the video surveillance industry. “D.U.M.I.E.S.” stands for dealers, users, managers, installers, engineers and salespeople. This particular series delves into thermal imaging as it pertains to capturing video surveillance in low- and no-light applications. While the first installment established a working foundation by explaining what thermal imaging is in basic terms and revealing its history, Part II addressed more specifics about the technology and how it applies to camera performance. Parts III
Illustration by Jerry King
W
BY BOB WIMMER
and IV discuss application examples and solutions, and incorporating thermal into system design. How does this technology fit into today’s surveillance systems? As the price of thermal cameras continues to decrease, their applications continue to increase. With the introduction and advancement of analytics in security systems, cameras have opened many
additional avenues to enhance security applications.
Big Technology in Small Packages Most people are familiar with the handheld thermal cameras used for detecting heat loss, electrical shorts and anything temperature related. These specialized analytical devices are not geared toward security settings.
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Electricians use handheld thermal imagers to analyze and inspect electrical panels for shorts and other issues. Such devices are also vital in firefighting to reveal hidden sources of heat.
While handheld devices may not be relevant to security applications, they serve many purposes affecting the general population in ways few realize. The most popular is helping firefighters, where thermal imagers can save hundreds of lives. Using a camera that sees heat in a fire may seem a little odd. Most people think an infrared (IR) imager would be of little or no use in the middle of a burning building; however, thermal makes pictures out of differences in heat. Thermal imagers readily see the differences in heat that exist when there is fire hidden in a wall, or those caused by a person curled up in a corner. Whatâ&#x20AC;&#x2122;s more, uncooled units are sensitive to longwave thermal energy, which allows them to see through smoke. Thus, firefighting applications are perfect example of how the lowcost, high-quality revolution in thermal imaging is putting IR in the hands of those who can put the technology to the best use. A growing application for thermal is in home and building inspections. Inspecting a home or large building involves many factors, including mold and rot, water damage, poor joint sealing and substandard insulation. Lowcost, high quality thermal imagers are
available to not only view, but document, all of these conditions. External inspection of a building can easily discern if heat is escaping through cracks in the walls, poor window seals or inadequate insulation. Wa-
required when adding this technology into existing surveillance systems. The main concern or confusion, especially for a person not familiar with the operation of thermal, is the lack of true identification during daytime operations. Because of this many systems incorporating thermal imagery utilize a two-camera system with automatic switchover. The basic or daytime operation is covered by a standard camera (CCD or CMOS) and the thermal camera functions during the extreme low light. This combination allows for the best overall design for thermal technology in a surveillance application. This ease of integration makes thermal cameras a very logical choice for new or existing applications that require object identification in extreme environments. For most of us terms such as lux levels, IRE units and usable picture indicate the quality of images produced by a standard camera at different light
Thermal imagers can be used to inspect homes or other buildings for things like mold and rot, water damage, poor joint sealing and substandard insulation.
ter damage in roofs and walls is readily apparent, as materials soaked with water will absorb and dissipate heat at a different rate than the same materials that have stayed dry.
levels and for various applications. However, how does the thermal industry rate the sensitivity of its cameras? Letâ&#x20AC;&#x2122;s explore it.
Integrating Cameras With Thermal
The thermal sensitivity for an IR camera is measured in milliKelvins (mK). The scale is more sensitive at the lower end, meaning that 38mK is nearly three times as sensitive as a 100mK. Thermal
The signal output from a thermal camera is no different than that of a normal analog output or IP camera. Therefore, no special interface will be
Why Sensitivity Is Serious Business
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THERMAL IMAGING FOR
NETD Ratings of Thermal Cameras 14mK NETD
50mK NETD
60mK NETD
Cooled thermal sensitivity highest of any thermal camera
Uncooled camera sensitivity 640 X 480 - produces highly accurate and detailed images Typical sensitivity found in handheld thermal imaging cameras - perfect for light research, medical, inspections, process control, electrical inspections
The noise equivalent temperature difference (NETD) of a high-sensitivity cooled infrared camera is between 10 milliKelvins (mK) and 20mK, while an uncooled camera can vary between 50mK and 100mK.
sensitivity can be an extremely important factor when deciding which camera to specify, purchase and install. The lower the sensitivity, the more accurate and better at producing detailed images the camera can be. Highly sensitive thermal imaging cameras will show more color/temperature differences. Camera sensitivity has a direct correlation with the accuracy of the thermal camera as well. The noise equivalent temperature difference (NETD) of a high-sensitivity cooled IR camera is typically 10mK to 20mK. This is a measure of the sensitivity of a detector of radiation in the
DUMIES IR spectrum. The lower the NETD the better the camera’s ability to detect smaller temperature changes in the viewed scene. Like many areas in the surveillance market, there are no set standards when measuring the sensitivity of CCTV cameras — including thermal models. At what temperature was the unit tested? What was the f-stop rating of the test lens? These are just some of the parameters that can affect the outcome of a camera’s measurement and consequently performance under assorted circumstances. Part II of this series explained the f-stop rating of a lens and how it affects the sensitivity of a thermal camera, but what about the millimeter of the lens? The most common lens sizes for uncooled thermal units are 15mm, 35mm, 50mm and 100mm. Lens size plays an important role, especially when analytics is used for detection. As an application example, the objective is to protect a remote shoreline (see photo below, right) against unauthorized entry or activity using an analytics software program. It is suggested that a 3 X 3 pixel array is the minimum to detect an object, with 5 X 5 pixel as the ideal array; however, the pixel size is also a factor in this equation. As a reference point, one micron is .0000394 inches. The chart on page A5 shows the recommended distances for detection incor-
With the threat of terrorist attacks, airport and border authorities around the world are installing thermal security cameras to keep passengers, employees and high-profile locations safe. This is a 24/7 job, so the security infrastructure needs to be effective regardless of weather or lighting conditions.
Part 3 of 4
porating different size millimeter lenses. The chart is based on a 640 X 480 camera (17μm pixel) Thermal cameras cannot view objects through glass or water. However, in this application any person or object above the waterline or reflected on the water’s surface is an easy target. With no existing light, the addition of video analytics software increases the effectiveness of detection beyond that of human operators. When using analytic programs thermal images can automatically detect an intrusion attempt, and this information is then relayed to an operator. At this point, the operator can make a better decision about what actions are required. In the past, even with the use of analytics, the operator was plagued by false alarms or an overabundance of total alarms. This caused frustration and, in many cases, a failure to respond to actual true alarms that required immediate action. The problem came down to the software’s inability to detect actual objects and properly discriminate when movement was involved. Conditions like camera vibration, movement of clouds and low camera video output signal contributed to challenges and errors.
Other Powerful Uses for Thermal In addition to what has already been discussed, there are many other inventive and productive uses of thermal technology and imaging devices. As mentioned at the outset, as the prices come
Application example: video analytics are used to protect a shoreline.
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Surveillance Camera Detection Distance Chart Lens 15mm
470 1,000
35mm
any vessel at night is extremely difficult. With the use of thermal it is possible to detect different textures of objects, distinguishing rocks from wood, etc. This allows boaters to navigate and avoid collisions in a way that can’t be achieved with radar alone.
1,500
50mm
3,100
100mm 0 Feet
500
1,000
1,500
2,000
2,500
3,000
The most common lens sizes used in uncooled thermal units are 15mm, 35mm, 50mm and 100mm. The millimeter size of the lens plays a very important role, especially when incorporating analytics for detection.
down the penetration potential rises and so too do the possibilities for new applications. Although many of them fall outside the purview of the typical security integrator, it’s worthwhile to understand the technology’s capabilities. So let’s further explore some of the more interesting applications to come along the past couple of years. Nuclear power plants — Security requirements have intensified to safeguard nuclear facilities against sabotage. In
Security requirements have intensified to safeguard nuclear facilities against sabotage. Thermal image cameras featuring analytics is a viable solution.
March 2010, 10 CFR 73.55 was added to the Code of Federal Regulations. In short, it states that all exterior areas within the protected area shall be provided with illumination sufficient for monitoring and observing to detect firearms, explosives and incendiary devices through either a physical search or use of equipment capable of detecting such devices.
Nuclear power plant vulnerability to intentional aircraft crashes has been a continuing issue. In many cases, these power plants as well as nuclear waste storage areas are so well lit that they have become subject to becoming primary targets. In fact, many of these locations are so illuminated that they can be seen from space. In order to harden these facilities it has been suggested their light levels be reduced. The most feasible method to accomplish this and still maintain the level of security required by new provisions would be using thermal image cameras featuring analytics. Many have suggested the use of IR illumination to handle these types of applications. However, there are a few drawbacks. The first is the distance limitations of IR devices. Many critical applications demand greater distances than can be met by IR illuminators. Thermal, on the other hand, does not require any type of light source. The second problem with IR illumination is in its footprint. Someone with a handheld black-and-white monitoring device can easily locate the camera and the IR source, whereas thermal produces no signatures that can be identified. Maritime — Thermal imaging can be used as a navigational aid. Navigating
Navigating a vessel at night is extremely difficult. Thermal imaging makes it possible to detect different textures of objects, permitting boat operators to navigate and avoid collisions in a way that can’t be achieved with radar alone.
The federal government has been using thermal for many years; however, with the cost of equipment becoming less than $5,000 it is now within the reach of civilian boat owners and operators. From pleasure boaters to working boats like fishing vessels, tugboats and ferries, all are now candidates for thermal imaging. But what if an accident occurred on a river or at sea? Typically search and rescue responders would be forced to call off looking for a lost survivor once it became too dark outside to see. Again, thermal cameras offer a technology that eliminates this problem by treating the victim as a heat source that provides a visual representation of the scene to the rescuer. Hence, the historically impossible darkness is turned into a simple inconvenience. Infrastructure — Keeping with thermal and water applications, as our national infrastructure continues to age thermal cameras can offer methods to enable a safer way to examine and protect people from unexpected dangers. According to a 2010 report on Pennsylsecuritysales.com • JANUARY 2012 A5
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THERMAL IMAGING FOR
vania’s infrastructure, about 39% of the state’s dams were identified as being deficient and “high hazard.” That means their failure would cause probable loss of human life and substantial property damage. The estimated cost to repair those dams during a five-year period was estimated at more than $1.4 billion. What does this have to do with thermal imagery? Most of us understand the status of today’s economy and repairs to structures like dams are few and far between. However, the need to protect people and property will always remain a top priority. We have discussed that thermal cannot see through glass or underwater, but the differences between concrete and water leaks, no matter how small, can be detected by thermal technology.
DUMIES all contributes to the fate of oil slicks at sea. Remote sensing is useful in several modes of oil spill control, including large area surveillance, site-specific monitoring and tactical assistance in emergencies. This provides essential information to enhance strategic and tactical decision-making, decreasing response costs. The detection of an oil spill is based on the differences between oil and water in temperature, thermal reflection and thermal emissivity. Due to a difference in thermal conductivity oil will usually absorb heat faster during the day, thus it becomes warmer than the surrounding sea water. This makes it show up on thermal images as a hotspot. During the night, the opposite is true; the oil body will lose heat faster than the surrounding water, which makes the oil show up as a cooler region. Thermal observations of spilled oil from the air are the simplest and most common method of determining the location and extent of an oil spill.
Many dams in America are becoming deficient with age but are costly to evaluate and repair. With thermal technology, differences between concrete and water leaks, no matter how small, can be detected.
With the introduction of software the thermal system can aid workers and first responders. This thermal application will not fix or repair dams; it will offer a system that can save lives by faster identification of potential problems. As an added fact, the United States has in excess of 80,000 total dams, with a total storage capacity of 48 trillion cubic feet of water. Oil industry — Sensing is a critical element for an effective response to marine oil spills. Timely response requires rapid identification of the spill site, extent of oil contamination and verifying predictions of the movement. This
Thermal imagers provide an accurate, noninvasive means of measuring a person’s temperature.
Health care — Thermal imaging is the cutting edge in the field of medical diagnostics. Studies have begun the past few years to gain government approval to make thermal imaging an authorized method of screening for the early detection of breast cancer. These lowcost and high-quality images make it possible for doctors to diagnose many different ailments or diseases.
Part 3 of 4
During recent epidemics such as SARS and bird-flu many video surveillance cameras were replaced by thermal cameras. This changeover established a very popular detection device that can provide both security and an accurate, noninvasive means of measuring a person’s temperature. Airport officials used thermal cameras to inspect passengers flying in and out of major airports for any signs of a fever. These officials realized quickly that it was a rapid and effective method to screen a high volume of people. Driver vision enhancement — Who needs those new and expensive high intensity discharge (HID) headlights when you can have thermal? The latest feature or craze packaged with bigger and more luxurious cars is new HID lights, which produce extended visibility for the driver (never mind about the other guy who is blinded by the brightness!). However, in many states most self-upgrade kits are against the rules. A motorist is subject to be fined if caught with HID lights not sold together with the original car. Anyone who drives at night can benefit from using thermal cameras. Truck drivers have been some of the first to embrace this added safety feature. Technological revolutions are making a difference in the lives of real people. Everyone who drives or rides in vehicles can reap the safety advantages derived from having a thermal imager to use at night.
NEXT UP FOR ‘D.U.M.I.E.S.’: SYSTEM DESIGN AND DEPLOYMENT Be sure to check out the April issue of SSI for Part IV of the “Thermal Imaging for D.U.M.I.E.S.” series. The fourth and final installment will explore incorporating thermal imaging technology into the overall system design scheme of a comprehensive video surveillance solution. It will include practical steps for real-world deployment.
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©iStockphoto.com/Jacom Stephens
Enhanced vision means everyone who drives or rides in vehicles can reap the safety advantages derived from having a thermal imager to use at night.
Speaking of the automotive world, even NASCAR is getting into thermal imaging. During FOX Sports’ coverage of the 53rd Daytona 500 on Feb. 20, 2011, the network unveiled FOX Thermal-Cam, a special camera designed to register variations in the heat signature of objects in its line of site. The unique feature was used during the race-cast to demonstrate the extreme temperatures that develop during typical racing conditions. This is important since cars running in the rear of a piggy-backed pair lose airflow while drafting and must eventually
TV broadcasts of NASCAR events have featured a special camera designed to register variations in the heat signature of objects in its line of site. The objective is to demonstrate the extreme temperatures that develop during typical racing conditions.
switch places with the lead car to avoid overheating the engine. It can also reveal the on-track groove cars are using, as well as the difference between tires about to be changed compared to fresh replacements.
Thermal’s Future for Security Uses The thermal snowball is continuing to roll. According to a 2010 technologies & markets report from French research and strategy consulting company Yole Development titled “Uncooled IR Cameras & Detectors for Thermography and Vision,” thermal camera
Projected Thermal Camera Growth Global uncooled thermal camera business (units)
1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0
2009
SOURCE: Yole Development
2010
2011
2012
Total military
2013
2014
2015
2016
Total commercial
According to a 2010 report, the volume of thermal cameras sold will triple by 2015 from more than 200,000 today to in excess of 700,000, or a 23% growth rate in units and 9% in revenues. The report covers the long-wave IR uncooled camera and detector markets, which are primed for fast growth in commercial business.
prices have been significantly reduced in the security marketplace. This has facilitated an expanded use of the technology and devices. The report says camera cost reduction will continue through 2015 in the thermography business and will also be a strong factor in the vision market (also called night vision or vision enhancement) with the growth of the security/ surveillance and automotive markets. Driven by the continued cost reductions, the volume of cameras sold will triple by 2015 from more than 200,000 today to in excess of 700,000, or a 23% growth rate. The revenue growth will be about 9% as market prices for the cameras decrease, according to Yole. The vision enhancement market will triple by 2015, corresponding to a $2.4 billion market, and will mainly be driven by the surveillance CCTV and automotive markets, according to the report. Also pending are several big development projects aimed at reducing the cost of the detector so it can be used in safety systems for pedestrian detection. ■ Robert (Bob) Wimmer is president of Video Security Consultants (www.cctvbob.com) and has more than 38 years of experience in CCTV. His consulting firm provides technical training, system design, technical support and system troubleshooting. Originator of the D.U.M.I.E.S. series (www.dumies.us.com), Wimmer was inducted into SSI’s Industry Hall of Fame in 2006.
FIND IT ON THE WEB F Visit the Special Reports section at www. V securitysales.com/dumies to access nine se years’ of “D.U.M.I.E.S.” archives. securitysales.com • JANUARY 2012 A7
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That last one is also one of my favorites. OpenOffice can be thought of as an open-source MS Office clone. It is very extensive and actually has some features the big boys don’t. Tired of always paying for commercial upgrades? Then this program is worth a try. This article was written with OpenOffice’s text editor.
11 Utilities With Universal Appeal Today’s security systems tech often has to support the installation and maintenance of computers and operating systems, along with application software, for systems such as access control and IP-based CCTV. In doing this it becomes important to compile supporting utility software for these types of installations. Below, I present some of my other favorites: Google Docs — More and more you will find yourself working remotely with customers on documentation. This free online service provides you with a place for collaborative document storage and editing. I have recently noticed this being used as a collaborative tool for the new generation of security industry standards documentation. FastStone Capture — I have used this program for years. It is a very flexible and intuitive screen-capture program with features such as hotkeys, annotation, resizing and cropping. The last free version is 5.3. OpenProj — Worth a serious look if you need a good project management program. It is an open-source desktop
TECH TALK Tool Tip
Courtesy LSoft Technologies Inc.
• Belarc Advisor (system information tool) • Gadwin Print Screen (print screen utility) • CCleaner (system cleanup and maintenance) • Glary Utilities (system cleanup and maintenance tool) • FileAmigo (data management tool) • OpenOffice (Microsoft Office file compatible suite).
This month’s selection is a bag of software support tools. The Active@ Data Studio from LSoft Technologies is a set of both desktop and a bootable image for booting up every system into a DOS or Windows environment. Used for data recovery, data imaging or to securely erase data. The company, which since 1998 has strived to create a software framework for data security, also offers some cool and free utility programs. Check it out today at lsoft.net. Active@ Data Studio is a complete IT technician’s or IT consultant’s package that includes powerful data recovery, data imaging, and a secure data-erasing set of software tools and utilities.
project management application similar to the commercial MS Project program. OpenProj has a familiar user interface and even opens existing Project files. It is also interoperable with Gantt Charts and PERT charts. Q-Dir — Today we find ourselves working with several subdirectories at once. This freeware program allows you to display up to four directories on the screen at one time. It has been a real timesaver for me when I am working on many files in different directories. Foxit Reader — It is important to have a standard when transmitting and sharing documents. PDFs have become that standard. I have been very impressed with the versatility and functionality of Foxit, which is why it is my default PDF reader. CutePDF — I have used the free writer utility for years. Often you will find yourself wanting to convert a document into a PDF standard document. This program sets itself up as a printer, except it prints to a PDF file that you can name and then transfer to anyone as an E-mail attachment. Dia — This open-source program can be used to draw many different kinds of diagrams. It currently has special objects to help draw entity relationship diagrams, UML diagrams, flowcharts, network diagrams and many other diagrams. It is also possible to add sup-
port for new shapes by writing simple XML files, using a subset of SVG to draw the shape. Another graphics program to checkout is InkScape. Disk Space Fan — This freeware is a nice disk space analysis tool for Windows. It helps you to free up space by quickly finding and deleting big, useless files. It displays disk space usage in a helpful chart format. Zoho — This is worth a look if you need a low-cost program/service to handle everyday business functions such as customer relationship management (CRM) and project applications. NirCmd — This small, command-line utility allows you to do some useful tasks without displaying any user interface. It enables writing and deleting values and keys in the registry, writing values into the .ini file, dialing into your Internet account or connecting to a VPN, and more. WinAudit — It is very important to save a complete audit of any new installation for a customer. At some point a problem will arise and you will have to prove that your configuration was changed. This is a free, easy-touse auditing utility program. ■ Bob Dolph has served in various technical management and advisory positions in the security industry for 30+ years. To share tips and installation questions, E-mail Bob at bdolph.ssi@gmail.com. Check out his Tech Shack blog at www.securitysales.com/blog.
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Fire Side Chat
A Look at What Lies Ahead for Life Safety Due to the criticality of their mission, fire/life-safety practices and systems tend to change more slowly than a lot of industries. However, even it is beginning to reflect technology’s accelerating pace. Find out what to expect in 2012 and just beyond.
W
ith this being SSI’s 2012 Forecast Issue, it got me thinking where the fire alarm industry might be heading within the next few years. I hesitate to go beyond five years out as there will more than likely be a technology on the market of which I am not even yet aware. What is “state of the art” today will be old news tomorrow. When I started college in 1972, I invested more than $300 in a calculator. It was able to provide basic functions such as addition, subtraction, division and multiplication. It could also perform square roots! Today, I can buy a calculator for less than $30 that will perform complex variables. How many of us still have a slide rule? My first home computer had 64K of memory. Now I struggle if I do not have at least 25GB of space on my laptop hard drive. While I had some exposure to the Internet at college during the mid-1970s, I could not imagine it as it is today.
I have been in the fire alarm and intrusion detection industry since 1974, which in historical context is not a very long time. But since I began, oh how things have changed in this business. Let’s rewind briefly before digging out our crystal balls to gaze at what likely lies just ahead.
It Was Not So Long Ago That … When I came into the industry, the primary means of transmission from the protected premises to the central station was either via a McCulloh loop or directly connected. There were still a large number of local systems being installed as well as auxiliary systems. It was not uncommon for a police or fire department to monitor systems, or for a system to call in directly from the protected premise via a tape dialer. Multiplex systems were just starting to come into the market, and longrange radio and the digital dialer were still several years away from being released. Within the fire alarm arena, smoke detectors were relatively new,
By Shane Clary smclary@bayalarm.com
and most systems installed were manual, heat detection or monitoring waterflow and supervisory switches. A fair number of McCulloh loop transmitters were powered by a windup spring. I still have several keys that were used to rewind the transmitters. The NFPA 72 standard we have today as a single document was divided into a number of publications in 1974: • NFPA 71 (Central Station Systems) • NFPA 72A (Local Systems) • NFPA 72B (Auxiliary Systems) • NFPA 72C (Remote Station Systems) • NFPA 72D (Proprietary Systems) • NFPA 72E (Automatic Fire Detectors) • NFPA 74 (Recommended Good Practices for Private Dwellings) In 1974 there were no documents for notification appliances, voice communication systems or the testing of fire alarm systems. There were no wireless detectors and mass notification systems, and the requirements for the ADA were not even contemplated. Work on a document for carbon monoxide systems was still two decades away.
Top 5 Fire Alarm Industry Predictions ©iStockphoto.com/Kurt Drubbel
Enough of the past, time to move upward and onward with my bold predictions:
Fire codes, alarm communications, first responders and detection technologies will be among the areas most likely experiencing significant change during 2012. It will be interesting to look back in five years to see how these predictions came to pass, and to what magnitude.
1. NFPA 72 will move to become a more performance-based standard than prescriptive. The concept of risk analysis was added in the 2010
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Fire Side Chat
version for emergency communication systems and has been expanded on for the 2013 edition. I see during the next several editions a further move in this direction with testing frequencies, spacing of detectors, communication methods, means of circuit survivability, protection of the control unit and emergency communication systems.
3. Fire departments will become more vocal toward the reduction of “unwanted” alarms. During the past two years the International Association of Fire Chiefs (IAFC) has been working with the National Fire Protection Association (NFPA), Central Station Alarm Association (CSAA) and Automatic Fire Alarm Association (AFAA) to find ways to reduce unwanted alarms. A number of proposals were
©iStockphoto.com/mark wragg
2. The digital alarm communicator transmitter (DACT) will fade into history. This has been discussed throughout the industry for several years. The two leading telephone providers have made it known they no longer wish to invest in the Public Switched Telephone Network (PSTN) that provides
Just as McCulloh and direct wire systems have gone away so too will the digital dialer. I see this occurring well within the next five years. This will require the fire alarm and integrated systems contractor to become educated in how these networks operate.
One hardly has to look into the proverbial crystal ball to know technology will continue, typically to the benefit of our industry, to advance. For example, while cabling will not be completely replaced the use of wireless detectors within a commercial environment will increase.
Plain Old Telephone Service (POTS) as the world moves more and more to wireless and the Internet. Their efforts are being placed in these transport systems. For the past several years manufacturers have been releasing Global Systems for Mobile Communications (GSM) and IP products. In the 2010 edition of NFPA 72, provisions were made so that if any single method of communication device sends in a test signal or “heart beat” every five minutes, its use is allowed.
submitted for consideration for the 2013 edition of NFPA 72. While not all were accepted, a number were. I expect that within the next few years fire departments will begin to look at this issue the way law enforcement does today, which would include fines and nonresponse. Several departments have already gone this route. The use of verified response will start to make its way into use for commercial systems. This was a hotly contested topic during the development
of the 2013 edition of 72, and I expect further debate on this topic between now and the release of this edition. 4. Use of wireless detectors. For a number of years, the residential intrusion industry has used wireless smoke detectors for single-family dwellings. Within the past several years many manufacturers have come to market with reliable wireless smoke, heat and monitor modules. While cabling will not be completely replaced, the use of wireless detectors within a commercial environment will increase. The range of these devices has improved as well as their battery life. While the system designer will have to be aware of the environment in which the devices are to be installed, the difficulty in running wire and conduit to each detector point will be reduced through their application. 5. Integrated testing of fire protection systems. I recently wrote about this. The development and eventual release by the NFPA of a standard for the full integrated testing of fire protection systems will add an additional requirement for the testing of systems that is not currently present. Once NFPA 4 is released, it will only be a matter of time before it is used throughout the Union. This will most likely occur through its adoption by the International Fire Code and NFPA 1 (Fire Code). It will be interesting to look back in five years’ time to see how these predictions came to pass, and to what magnitude. I have no doubt, however, that at some date in the not-toodistance future a young man or woman starting in our industry will write about how the items discussed here were commonplace and how much things had changed. ■ Shane Clary, Ph.D., has more than 37 years of security and fire alarm industry experience. He serves on a number of NFPA technical committees, and is Vice President of Codes and Standards Compliance for Pacheco, Calif.-headquartered Bay Alarm Co.
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Monitoring Matters
Don’t Undervalue the Power of Remote Services
Y
of services they will engage with, want and ultimately need. If a security dealer believes it can be reactive and offer these services only to clients who ask for them, I believe these are the dealers that will end up with a shrinking subscriber base. Why you ask? Because the competition that is getting more sophisticated will approach your clients and sell them before you have a chance to react. The telecommunication companies, cable companies and many independent dealers are getting smart and aggressive. They are wise to understand that an alarm on a POTS line is an account that has a high probability of attrition. The client The telecommunication who subscribes to companies, cable companies and services beyond tramany independent dealers are ditional alarm mongetting smart and aggressive. itoring represents an account that will stay longer because they can appreciate the service they I’ve written about this topic in prepay for every day rather than waiting vious articles and in my blog, but it for the alarm to trigger. bears repeating. Technology, remote services and the path of communications are essential elements that need Engage Clients With New Services to be discussed and kept at the foreThere is no question that two prifront when selling security and supmary factors are driving the current porting existing clients. market: broadband and smartphones. Rothman challenged the hundreds The population of broadband subof FAP dealers in attendance at the scribers and smartphone users grows convention to consider: “If you don’t exponentially with each passing day. think there is going to be a difference This reality is more than a wakeup between the digital dial-up version of call for your business plans in 2012 RMR and the remote services version, to market and gain new clients. It is I think you better take another look beequally (and maybe even more) imcause it’s coming and it’s coming fast.” portant when looking forward to how This is not about passively offeryou intend to hold on to your existing ing some additional “cool” gear. This clients and maintain and grow that is about educating one client at a RMR stream. time, and working toward gaining and The security industry has never maintaining more clients through the been adept at going back and touchcommunication and implementation ing existing clients to emphasize good ou’ve heard it from me, you may have read about it from others in the industry, and now I’ve listened to a man I truly respect and have known for decades proclaim it as well: “Dealers need to start offering their clients remote services or the telephone companies, cable companies or other competitors will take their customers away.” These are the cautionary words from Ron Rothman, president of Honeywell Security Group, as he addressed the recent First Alert Professional (FAP) dealer program convention in Scottsdale, Ariz.
By Peter Giacalone peter@petergiacalone.com
customer service or even upselling. The essence of embracing remote services is much more than increasing sales and profits. It’s about keeping your existing clients and keeping them engaged in your services. The nice part about this is while doing so, you will increase revenues. It puzzles me when I hear dealers panic when taking into consideration the notion of “self-monitoring” or how smartphones and automation could have a negative effect on RMR. These concepts are opportunities that many dealers are missing out on. The automation and smartphone interfacing is a wonderful augmentation to what we do. The hybrid of wireless and IP services, along with mobile devices and our core business of providing monitoring services and comprehensive systems is the great union that will allow the savvy dealer to grow. The opportunity to offer remote services is also promoting the installation of additional devices that directly relates to additional revenue for new clients and add-on sales to existing clients. Don’t be afraid! Understand these services, the connectivity challenges and the market dynamics, and you will persevere better than ever before. I don’t believe anyone has a doubt, including my friend Ron Rothman, that the dealers who don’t engage will be, sadly, left behind. ■ Peter Giacalone is President of Giacalone Associates, an independent security consulting firm.
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EXECUTIVE ROUNDTABLE
Execs Explain How to
OUTPACE the COMPETITION
In an exclusive roundtable, presidents and general managers from four leading installation firms discuss the current state of their regional markets and provide details of how they are positioning their companies for success in 2012.
T
By Rodney Bosch
hrough the years, installing security contractors have earned quite a reputation for being hyper-competitive and loathe to network or talk shop with other industry comrades in their local or regional markets. Gather a group of them from outside their respective battlefields and the industry’s legendary camaraderie begins to shine through. You can see it on constant display at the industry’s various conventions, association meetings and similar business functions. Sharing best practices and learning from the successes and struggles of other industry brethren remains an indispensible priority for legions of dealers and integrators. And it
is a chief reason why each year SSI convenes a group of leading security company executives during the First Alert Professional Convention for an in-depth roundtable discussion. The latest installment presented here took place recently in Scottsdale, Ariz., at the Westin Kierland Resort. In the ensuing conversation, Peter Allen, general manager of General Security in Plainview, N.Y.; Jeremy Bates, general manager of Bates Security in Lexington, Ky.; Larry Comeaux, president of Acadiana Security Plus in Lafayette, La.; and Stephen Wheeler, president of Holmes Security Systems in Fayetteville, N.C., detail their strategies for 2012 and how they deal with daily challenges of operating successful companies. Learn how each of these company leaders are responding to increased competition, as well how new technologies and services are helping them meet the demands of a marketplace in constant flux. Let’s jump in by having each of you recap your company’s performance in 2011. Larry Comeaux: The [Gulf of Mexico] oil spill in 2010 really crushed our area because the industry relies a lot on the oil business. In 2010 we thought we were going to break all records. ➞
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Major U.S. cellular carriers have made their stance clear:
The 2G Sunset has started. If you install a GSM or GPRS based product you will be forced to replace it with a modern 3G one within a few years. For the average security dealer, this will amount to thousands of dollars of revenue spent on truck rolls and replacement equipment. To avoid the sudden impact of the next sunset, switch to 3G products today.
Learn more at 2GSunset.com.
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INTEGRATOR EXECUTIVE ROUNDTABLE
But when that oil spill happened, 30 days later business came to a halt. We lost 150 monitored customers in 90 days. We didn’t expect it,but we had a very good year in 2011. We are about 60% residential, 40% commercial. We made some very good leaps and bounds with commercial jobs in the oil field patches, which are doing well again along with all the subsidiaries of other kinds of businesses. Access control and cameras in the past six months has really done well. We have bid on a
turning down, I made a conscious effort four years ago and I hired [a marketing specialist ] to come in and specifically help me make sure that when we came out of this recession we’d be well prepared. When [a prospective customer] thought about security, I was going to be the guy they turned to when they were ready to spend money. I was planning on the future, but what ended up happening is that marketing along the way really shot us forward. I didn’t count on that. It taught me a lot about marketing.
When it comes down to the summer sales guys, if anything, they have taught me a lot of lessons to stay ahead of them. It has taught us we are not focusing on our customers like we should be. Larry Comeaux, President Acadiana Security Plus
lot of jobs in the last 90 days; all the jobs we are bidding we have been getting. Jeremy Bates: 2011 has been an amazing year for us. We have had strong growth for several years, but we are probably close to doubling our sales for installation and monitoring revenue in 2011. Our company is primarily commercial-based although we do have a significant residential base. We do a lot of work in managed access and a lot of video work. 2011 has been the breakthrough year for us in IP. We played and tinkered with it for about a year or so. We had it installed at our office and finally we started installing some significant jobs with IP video. The quality of the video and the things you can do with it is just amazing. The customers really see the value. But it’s also been one of our biggest challenges; it’s not installing a basic burglary system or a basic camera system. It is a whole different skill set. That has been a challenge, making sure that we have that skill set. Stephen Wheeler: For the past 50 years we have always had a minimum of 2% to 3% growth. 2011 is going to be in excess of 15%. When the market began
Peter Allen: For 2011 we are up about 9%. I am happy it is an increase. Installation wise we’ve had some very nice successes. I personally sold a fire alarm for the basement of a large mall anchored by Macy’s and Penney’s and whatnot. It was more than $1 million. The amazing thing is it had very nice margins. We also got involved with a very prestigious North Shore village with a CCTV system, which is at 19 intersections. We have been successful, but each branch is a story by itself. Plainview did very well. The Winston-Salem branch is struggling a little bit. In Utica we have a very nice commercial business but virtually no residential business. That is contrary to the rest of the company; we are 83% residential. On the residential side over the past six months we have gone very big on interactive services. Identify a particular strategy you are pursuing in 2012. Comeaux: Two years ago we started overhauling our central station. When we were preparing for all of this, we wanted to start a video monitoring service, which we couldn’t do with the old
software. We want to be able to do accounting for access control and everything else. We now have Bold Technologies’ [Manitou CS, a central station automation software package]. SedonaOffice is up and running too. We feel very good about 2012. We plan on doing a lot of video monitoring in the future. On average we put in 20 recorders a month. I’m not receiving any monthly income from it right now. I’ve had to sub out probably four of them right now to another monitoring station and they charge me $25 a camera. If you have a 16-camera recorder, most of the time they want at least nine of them to be watched 24 hours. So let’s just say on average $250 and say 50% of that, so 50% of 10, that is $2,200 more a month of income off of 10 jobs. That is a very nice income. Some of our [market niches] include toy boxes where guys keep all of their fancy rebuilt cars. We do a lot of that in our area. Also storage units where people come and go 24 hours a day. We have oil field locations. We have car dealerships that are paying $40,000 to $50,000 a year for a guy to walk the yard at nighttime and half the time he is sleeping. Bates: I would add to [video monitoring] that our attitude is any place with a lock and a fence is a prospect. We have definitely had success with car dealerships, and also any business with a guard service. The market is there. We have had good success with a local school district. They have done about 35 monitored video systems with us. For 2012, we expect a good year. Back when it was pretty clear we were headed into a recession, we held a quarterly meeting with the employees present and we talked about it. We said, ‘Somebody is going to be buying security and it might as well be from us.’ I said the way we’re going to make sure that happens is the sales team will be aggressive as always, but the technical staff, the service, the installers, the inside people, everybody has to do a good job in order to maintain the customers that we have and also to continue to build a good reputation so we get referrals. You would not know based on our performance
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INTEGRATOR EXECUTIVE ROUNDTABLE
With video monitoring our attitude is any place with a lock and a fence is a prospect. We have definitely had success with car dealerships, and also anybody with a guard service. The market is there. Jeremy Bates, General Manager Bates Security
that there has been a recession. Our basic attitude is to continue that in 2012. Wheeler: We are going to focus in on ancillary recurring services. We have a wonderful account base already. If every one of them were to take an extra service — whether it’s Total Connect video or remote managed access on the commercial side; whether it’s just taking an old-fashioned telephone customer and getting them on a radio and getting them onto some sort of wireless communication — you could eas-
ily double your recurring revenue. Embracing new technology is what I keep repeating to my employees. We have to embrace technology, accept it, explain it to our customers and offer it to them because if we don’t offer it they are going to get it someplace else. The challenge for us to tackle in 2012 is past-due accounts. I’ve seen it increase in the past six months, so I’m concerned there is a trend starting here. I’m an easy guy. When you’ve been around 100 years like we have —
that’s how we made a living 50 or more years ago, by extending credit — and we still have that mentality. That is going to be my focus this year — sell these new technology services to embrace those customers so they don’t want to go someplace else because they’ve got it with us. And also be careful in watching our back door and making sure that everybody is paying us. Allen: The latest thing we have looked into is managed access control, which I am very interested in. We will also continue to push the higher-priced packages. That is our big thing, the higher-priced interactive packages, such as Total Connect. We are not doing as much as I would like to do with video. We hired a commercial telemarketer. We are having some success with that. The funny thing is he is not calling on a particular product. He’s just calling and saying, ‘This is who we are, here is what we offer,’ and it seems to be working better than just
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calling on a burglar or fire system. He opens it up and the customer sort of tells you what they are interested in. I am looking forward to a good year. I hope we are going to duplicate our successes of 2011. We have grown during the past 25 years organically and through acquisitions. I am involved in five acquisitions right now, from $68,000 to $1.3 million. Some of them are quite small; 150-200 accounts up to 1,000-1,200 accounts. We are looking in areas where we already have offices. We found that if you do it right, acquisitions can be very good for your company. How do you contend with finding and retaining good employees? Comeaux: It is very hard. Once you have them trained, all the little boys in town come after that technician because they don’t have the money to train these guys. They don’t mind paying a little bit more for a guy that is already trained.
Embracing new technology is what I keep repeating to my employees. We have to embrace technology, accept it, explain it to our customers and offer it to them because if we don’t offer it they are going to get it someplace else. Stephen Wheeler, President Holmes Security Systems
In today’s market it is very difficult keeping people because the other companies are coming to get them. It has gotten to a point where we pay 100% of the health insurance to the employee; not for the spouse. We have a 401K plan that we match up to 4%. You are having to pay a lot of benefits to keep them. Of course, we have to let them drive a company vehicle home every night. We have to pay for their uniforms. What we are looking for now is ‘Can you handle a computer?’ It’s not teaching
a guy now to program a keypad any longer. Now you have to have some kind of computer skills to be able to do the new technology. That is tough. To hire an employee who is not computer savvy, you are just wasting your time with them. Bates: Finding good people and training good people is probably my biggest challenge, especially when you are in a high growth mode like we have been in 2011. I can remember times when we have put [help wanted] ads in the paper or online and you hear about the jobless
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INTEGRATOR EXECUTIVE ROUNDTABLE
I am concerned about cable. I really am. We have Time Warner now competing in upstate New York. We still seem to do very well against them, but it’s not a level playing field. Peter Allen, General Manager General Security
rate being so high and we basically get no response. It just amazes me. It’s expensive but we’ve got our lead techs and then we are hiring a lot of them helpers or apprentices so we can in turn groom them to be lead techs later on. That is one of the biggest challenges organizationally is finding good people. Every now and then we get lucky and a qualified technician is out there looking and they find us, we don’t find them. We have never relied on subcontractors but in response this year we started reaching out. Finding good commercial subcontractors is a challenge. Residential seems to be easier. We’ve been doing a lot of school work and work in the court system in 2011. It makes our numbers look great but I don’t know if it is going to be great in 2012 or the year after so I really worry about staffing up too much and then the big contracts aren’t there. Our normal sales are good but then you have these million-dollar jobs and those don’t happen every year. It makes me hesitate to go staff up on an expensive technician and train them and all that. Wheeler: It is a problem. I have two positions that are available right now. I have hired three people in the past three weeks and all of them went through the whole hiring process — records checks, drug tests, the whole nine yards — and never showed up. It amazes me. I offer it all — the health insurance, 401K, the dental insurance, the drive the truck home, the cell phone, uniforms, $50 gas cards. We tried Craigslist and got two or three hires recently. I talk to everybody. If they are going to work underneath our shingle, I want to at least see you and talk to you. I look
for chemistry. If you don’t find the right chemistry mix it isn’t going to work. When you get oil in water, it makes your office miserable. I think you have to interview 10 or 15 people to find one. Allen: We are a bit strange because each branch is different. Plainview is a union shop. The pay is tremendous. My top service tech [in 2010] in Plainview made over $100,000, including the company vehicle, full family medical, noncontributory union pension fund. That is a different situation. We normally get a good response. We lost our Lenel technician in the Rochester branch who was very hard to replace. We do some very large Lenel systems with thousands of readers. I have a saying, ‘When all else fails, throw money at it.’ Unfortunately that is what you have to do sometimes. What amazes me you are supposed to have the highest unemployment in years, you would think you could run an ad and have a line run around the building and that just doesn’t happen. Do you worry about outside competitors — be it summer sales models or telecom providers — stealing your customers? Comeaux: When it comes down to the summer sales guys, if anything, they have taught me a lot of lessons to stay ahead of them. It has taught us we are not focusing on our customers like we should be. It has taught us some good lessons for the future as far as keeping more in touch with our customers and letting them know more about what we do. We are trying to touch our customers more but also let them know what we have to offer. It has taught us to participate more with our customers, as far as
sending cut sheets all the time of what we have to offer, be it Total Connect, cell backup, smoke detectors or whatever it may be. Bates: I worry in our market being told that the local cable company, which was bought by Time Warner, is going to become a competitor. And I worry about Verizon. I worry about them devaluing what we do, driving down what we charge for monitoring. But then I realize there will always be a place for a company such as ours where we charge what we charge so we can support good, quality service for our customers. I can’t do that with these bargain basement prices that I see some of these big national companies doing in trying to get a ‘triple play’ or a ‘grand slam’ to preserve their outrageous cable bill. The best thing to do is to be a better competitor, be a better security provider, and that is what we will aim to do. My other big concern is we are in a state where there is very lax regulation of security companies. Anybody can be a security company. Yes, there is this thing called fire code but it only gets enforced if you want to enforce it and do a good job. I know we are at a disadvantage where we know how to do something properly and by code, but a lot of our competitors don’t. They get away with murder and there is nobody enforcing the rules. Wheeler: There is a whole group in this industry that is cheapening the industry. It is having an adverse effect. If you are selling a system door-to-door or if you are selling a system at low cost, you’ve just told that customer that service is not worth a whole lot. My whole theory is if I can sell these ancillary services and show the customer we are more than an alarm in a box, they are going to stay with me longer. The adverse effect of this lower-end mentality of some alarm dealers is it’s causing our government agencies — whether its police departments, AHJs, fire marshals — to come at us differently. I literally had a state licensing representative sit across my desk and tell me she was there to audit me because of money; the state needs money. When you have government agencies that are
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creating false alarm ordinances, auditing alarm companies and things like this because they are after money, they are not truly working for the citizens. I am concerned that if this trend continues it could have adverse effects on security and life safety, whether it means that crime is going to go up as a result of customers taking response into their own hands, things like this. I am concerned with the general lackadaisical attitude, which causes an increase in false alarms, which then cause police departments to tighten their belts on ordinances. It is a vicious circle. It comes down to the professionalism of the industry and there is a portion there that is going downhill right now. Allen: I am concerned about cable. I really am. We have Time Warner now competing in the upstate New York offices in Albany and Utica. We still seem to do very well against them, but it’s not a level playing field. I look for a certain credit criteria and all they look for is, ‘Are you paying the cable bill?’ If you pay your cable bill, you get the system. They go for a two-year contract; I try to get a five-year contract. Overall we seem to be holding our own against them. I don’t know why I’m apprehensive, but it’s just the power of the fact they send that bill every month and advertise continuously. They have a relationship with the customer. Like Larry said, you had better send something out to your customer and say, ‘We have all this stuff too. We have everything you would ever want. Wireless video, thermostats, locks, mobile connectivity.’ That’s how they are getting your customer, especially with summer sales. They knock on the door, they get in, they say ‘Oh, that’s the old XL1000.’ That’s not an XL1000 but customer doesn’t know. They are making your customer think you don’t have what they have. We started putting mailings out and let our customers know we are there and we have all the same products and services. ■
You’ve used them for fun, now let’s get down to business. Network with colleagues. Get news as it happens. Find new talent. Reach new buyers.
Rodney Bosch is Managing Editor of SECURITY SALES & INTEGRATION. He can be reached at (310) 533-2426 or rodney.bosch@securitysales.com.
F FIND IT ON THE WEB There is more from this conversation online T at securitysales.com/FAProundtable2012.
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SSpecial p Report
Signs Indicate
C
©iStockphoto.com/John Bloor/Alex Slobodkin
SSI’s 2012 Industry Forecast queries more than two dozen security authorities from all corners of the industry to tell you what to expect and how to target success. While customers expect more and competition is intensifying, security integrators and dealers are uniquely qualified and positioned to come out on top. By Scott Goldfine
ontending with increasing competition and a merciless business climate while transitioning to newer technology and meeting more stringent customer demands. Sound familiar? 2011, meet 2012. Electronic security professionals nursing wounds from the hardships and challenges of the past 12 months are unlikely to find much respite in the New Year. The good news is those still standing are now fully battle-tested, and the opportunities exist for shrewd operators. Surmise what the year holds in store for your business and the industry with the many insights offered in SSI’s annual Industry Forecast. More than 25 of the industry’s most prominent research firms, trade associations, business and finance specialists, systems integrators, manufacturers, consultants, and alarm companies render a deep and sweeping portrait of the impending security landscape. Excerpts appear in this article from the full interviews that can be found at securitysales.com/2012forecast. The participants address the most significant changes, challenges and opportunities they anticipate taking place during the next 12 months in seven critical areas. They are: security technology; security markets; security industry; business and operations; politics and legislation; risks and threats; and ongoing challenges.
2012: Security Technology Tammee Thompson, V.P. & G.M., Global Security & Fire, Johnson Controls — Smartphones and tablets are revolutionizing the way we communicate and entertain ourselves. Now the mobility their technology offers is changing the security industry, especially in access control. Near-field communication [NFC] will turn mobile phones into virtual access cards. In seconds, administrators will be able to remotely add or change digital keys for employees and vendors. We will see handheld access card readers that will allow guards to oversee wireless, remote credential verification. And the longtime promise of physical and logical security convergence will become real with the availability of a truly workable one-card solution. A single
PIV card will provide an employee with access into a building and then onto the enterprise network. While this will first impact federal government facilities, it will soon work its way into state and local governments and then into corporate environments. Kevin Engelhardt, V.P., Security Operations, Diebold Inc. — A key driver of technology today is the end user’s need and demand for serviceability. Developing technology is no longer just about creating a device or a piece of equipment. It’s about enabling that solution to be hosted or putting that solution into the cloud. It’s about designing applications that help facilitate service. By creating technology with an eye toward services, we
have the opportunity to add value to the enterprise, as well as build deeper, more lasting relationships with customers. This new services-oriented paradigm will present challenges to equipment manufacturers. End users will seek more flexible solutions that enable unprecedented interoperability between systems. This will not only require manufacturers to approach development differently, it will also compel them to focus on open architecture systems. Manufacturers that have been driven solely by building a widget will have to consider that widget in association with servicesbased applications. And those manufacturers will also need to shift their business model to maintain profitability as product margins continue to erode.
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Challenging Road Ahead ©iStockphoto.com/John Bloor/Alex Slobodkin
2012: Security Markets Chuck Wilson, Execu utive Director, National Systems Contractors Association (NSCA) — The new commercial c construction trends give me a good indicator on which marketplacce our members will be working on in upcoming months and years. Anything g related to health care, government facilities and public works will see growth h. Education, corporate, religious, retail or hospitality will be very soft for the n next couple years. Jeff Kessler, Managing Director, Imperial Capital LLC — A challenge will be convincing European n enterprise buyers to initiate large projects in the wake of their weak econo no omi m ees. Also, working to distinguish in the residential customer’ss min er ind d th he di dist stin inccction between the great service alarm companies provide and d th he se s rv r ic i e ch challlenges associated with cable and telco providers. Finally, th here’s the op oppo p rtun un nity to build out substantial deployment of MVaas [managed vid deo ass a seervic rvvice]. c Blak Bl ake e Kozak, Senior Analyst, IMS Research — Fewer end users just want a security system. Most w want integration of some kind, either with a mobile phone, video, access contro ol, HVAC and logical access control, etc. Overall, there is more reliance on thee Internet and intranets than ever before. With access control, there are more W Web-based systems. With intrusion, more are looking for use with a mobile deevice or computer. Systems S t iintegrators t will reduce the number of vertical markets they focus on. Instead, they deliver solutions that provide end users with functionality specific to their industry needs. Take the retail market, for example. Integration with point-of-sale, business intelligence algorithms, such as people counting and customer hotspot analysis, and providing specific solutions to changing rooms and lone-workers will all be important.
Fredrik Nilsson, G.M., Axis Communications Inc. — We’re moving to an all-IP, all-digital surveillance world and technology development is happening very quickly. Specifically, improving light sensitivity of IP cameras has recently seen some great strides. We’re seeing more and more thermal network cameras that can detect in complete darkness being integrated into professional installations. IP cameras are also giving users the ability to see color and detail even in dark conditions. We’ve seen a shift from CCD sensors to CMOS sensors for better light sensitivity. Also, thanks to the continuation of Moore’s Law, the camera has much more capacity for processing power, which can be used to digitally
sharpen and filter the image — producing a color image in extremely low light conditions instead of switching to black and white like traditional day/night cameras. In a second trend, innovations in storage will not only cause a technology shift for surveillance users but also presents a tremendous opportunity for integrators to bring IP to smaller installations. Today, network video is the de facto choice for systems with more than 32 cameras because of its scalability, image quality and total cost of ownership. But with the rise of hosted video combined with advancements in edge storage, we expect to see IP become a realistic and affordable solution for nearly every installation, large or small.
2012: Politics and Legislation Jeff Gorelick, Managing Partner, Gorelick Advisors Law Practice — After years of fighting alarm ordinance battles city by city, I believe the industry has turned the corner in creating a balance between customer needs and police resources. The Security Industry Alarm Coalition has shown flexibility in dealing with police organizations and demands of cities with shrinking budgets. New verification techniques, more foolproof panels and greater customer education will continue to help us avoid the pressures to further diminish police response. Merlin Guilbeau, Executive Director, Electronic Security Association (ESA) — ESA is joining other industry groups in aggressively pursuing federal legislation that will allow companies in the electronic security industry to access the FBI’s federal database for pre-employment background checks. Customers need to feel assured that the security professionals they deal with have been thoroughly checked and vetted for criminal backgrounds before being hired. Currently there is no standardized process in place for these types of checks and access to the FBI’s database — similar to what is already available for a number of other industries such as banks, credit unions and private security firms. ESA is also actively working with the Department of Homeland Security to establish a credentialing system that would allow access to the security and fire alarm industry as first responders during heightened threat events, and to develop a method to identify special threats to various classifications of alarm users.
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SSpecial p Report 20 INDUSTRY FORECAST 2012
2012: Business and Operations Joe Liguori, President, Security-Net Inc.; Exec. V.P., Access Control Technologies — The business model has changed dramatically in that everyone has to find a way to accomplish more with fewer resources. That is simply the reality of trying to survive in a price-sensitive world. To that end the opportunity lies in identifying cost efficiency strategies without affecting the quality of the product or service. We look at it as doing more with less and hopefully doing it as well, if not better. As an example, if you have eight service vehicles supporting an existing client base, is it possible to provide the same quality of service with seven trucks by enhancing the tools and training provided to the service technician? If so, where do the inefficiencies lie or what technology can you utilize to enhance the efficiency quotient? The challenge is trying to understand what is required and the opportunity is finding a mechanism to accomplish it.
2012: Security Industry Bill Bozeman, CPP, President & CEO, PSA Security Network — The haves and have not’s in physical security integration will clash for positioning with the end user. Will the $100,000$300,000 project go to the local integrator with ties to the community or will the end user choose the big national as a safer option regardless of performance considerations? I envision more cutthroat sales tactics and reduced cooperation between the big internationals and the local integration community. The business dynamics between the larger players and the smaller local integrators has for the most part not worked to the benefit of the local, smaller integrator. The giants have chosen to team with the independents as an installer and not share the margin on equipment or RMR. Of course the risk is in the installation and deployment, and herein lies the problem for the smaller integrator teaming with the big guys.
Eric Yunag, President & CEO, Dakota Security Systems — The continuation and acceleration of a trend is the increasing commoditization of electronic security products. The challenge is that products are increasingly available from a broader number of sources and the margins on those products continue to come down. The real opportunity is for integrators to reinvent themselves as service-oriented companies offering a broader array of higher margin services.
©iStockphoto.com/Alex Slobodkin
Mitch Reitman, Principal, S.I.C. Consulting — Independent companies will have to stake out their niche and master it. As large compaChris Payne, Director of Intellinies like cable, Internet and gent Response, Fire Safety and consumer electronics enter Security, Siemens Industry Inc. the business, it is going to — The landscape has already be critical that independents changed, systems integrators Despite 2011 failing to catch fire and finally leave the recession focus on their strengths and no longer rely on dealers and in the rear-view mirror, most industry analysts remain at the very offer products and servicsuppliers for all of their prod- least cautiously optimistic about the New Year. Most worst-case es that the outsiders do not. uct needs. The large integrators scenarios peg returns as being flat, but many project growth of The biggest issue new en10% or more. have their own product portfotrants will face is developing lios and are continuing to exa sound understanding of the pand these portfolios. This trend will continue putsecurity business in order to provide quality service. I believe ting more and more pressure on the independent we will see several large companies enter the security indusdealers/suppliers. The opportunity is for integratry. Some will succeed, but most will abandon the effort in a tors to develop a product portfolio that addresses few years. Unfortunately, they will take quite a few customers the needs of its focus markets better than any comaway from traditional companies in the process. petitor. Savvy customers will continue to seek a onestop shop for all of their security needs. Stan Martin, Executive Director, Security Industry Alarm Coalition (SIAC) — The issue of municipal monitoring remains just under the surface and will require a great deal of hard work, and dollars, to stop. While the current target is fire monitoring, there is nothing that would prevent that from morphing into all monitoring. If you add to this the growing list of products that allow self-monitoring via smartphones, you have a potential tipping point on the monitoring side of our industry. Giving the business plans that are all too prevalent in our industry, where installations frequently are subsidized by the first year or more of monitoring revenue, any dynamic shift in that revenue stream could be disastrous for many companies.
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2012: Risks and Threats
©iStockphoto.com/3DStock
Dilip Sarangan, Team Leader Physical Security, Frost & Sullivan — IT companies are likely to dominate the security world in the next few years and the impact will surprise a lot of traditional security companies. In addition, if the proposed split of Tyco Int’l goes ahead, there will be a major change in the landscape and potential for ADT in residential and Tyco Safety in the commercial/government markets. Vendors are likely to face more competition in the in-
Success in 2012 and beyond, according to SICC Principal Mitch Reitman, will come to companies that embrace new technology and adapt it to customer demand. New customers, or at least increased per-customer RMR, will come from new services like monitored access control, residential lighting control and remote video.
dustry and this will have a major impact on their business and revenue potential. Eduard J. Emde, CPP, President, ASIS Int’l; Consultant, BMKISS Europe — Cyber risks, which presented so demonstratively in 2011, will in all likelihood have unexpected impact on organizations — both public and private — in 2012. More than ever before, it is crucial for manufacturers, service providers and users from across the security industry to openly dialogue and exchange challenges, needs, and requirements. Specific security products and services are called for not only to meet current security demands, but in anticipation of future requirements. Sandy Jones, Principal, Sandra Jones & Co. — Verizon, Microsoft and other powerhouse businesses we are familiar with outside the security industry will become new competitors or enablers for growing within the security market. In the past, cable companies, utilities and phone companies attempted to succeed without an understanding of the security market buying decision, and with technology that lagged behind the concept. Today that is no longer the case. Technology is no longer the barrier but the enabler and buying decisions and motivations are shifting, which together make these powerhouse businesses viable new competitors or in some cases new partners.
Robert Solomon, PE, Division Manager for Building and Life Safety Codes, National Fire Protection Association (NFPA) — Since 9/11, NFPA has worked to address the more than 40 recommendations that NIST issued in 2005 and 2007 on the collapses of WTC 1, 2 and 7. Some issues still need more work and better solutions like the first-responder communications in high-rise buildings. Other ideas like elevators for occupant-controlled evacuation prior to Phase I Emergency Recall Operation are now recognized in the NFPA codes. An important component of that technology, however, is the messaging strategy for the building occupants. For about 100 years, we have been instructed or have seen the signs FIND IT ON THE WEB F LLots o more predictions and projections! View this story online at securitysales. V com/2012forecast for detailed analysis from more than 20 security industry experts.
that say, “In case of fire, use stairs, not the elevator.” Now we must develop a communication strategy that says it’s OK to use the elevator in some newly designed buildings. What I say, how I say it, how often I say it in terms of the elevator status and when it might arrive at my floor are all important concepts that need more work. The Fire Protection Research Foundation (FPRF), an affiliate of NFPA, is working on this and we expect to have some solutions on the table in early 2012. John Lombardi, First V.P., Central Station Alarm Association (CSAA); President, CIA Security — The market is inundated with service providers offering a changing means of alarm signal communication and the mechanisms that process signals. Our challenge is to embrace these new technologies while remaining the dominant force in the market. Additionally, our industry image is sorely lacking in the market-
©iStockphoto.com/Alex Slobodkin
2012: Ongoing Challenges
Many trends from 2011 will carry right on into 2012. One example, according to Dakota Security Systems President/CEO Eric Yunag, is an acceleration of the commoditization of security products. He recommends integrators reinvent themselves as service-oriented providers with a larger variety of higher margin offerings.
place. We are not recognized as security professionals nor does the public at large equate our services with value. Due to the fact that much of the security alarm market has become commoditized, we have lost our perceived worth in the eyes of the consumer. The industry needs to permanently and positively change this perception.
Editor-in-Chief Scott Goldfine has spent more than 13 years with SECURITY SALES & INTEGRATION. He can be reached at (704) 663-7125 or scott.goldfine@securitysales.com.
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UNIQUE APPLICATIONS
Protecting Those Who Protect AMERICA
Opening photo ©iStockphoto.com/Kriss Russell. All other photos courtesy NOTIFIER.
The welfare of patients, medical personnel and staff are a top priority for any hospital but perhaps even more so where it concerns the brave and honorable men and women who have served and sacrificed to keep America free. Multiple VA hospital case studies show how advanced fire/life-safety systems are providing safe haven for veterans.
T
By the Editors of SECURITY SALES & INTEGRATION
here are 152 Veterans Affairs (VA) hospitals across the country, providing everything from routine health services to critical care for the men and women who served their country from World War II through the wars in Iraq and Afghanistan. While it’s the physicians and support staff that are most conspicuous in attending to vets’ well-being, behind the scenes fire alarm and emergency communications systems are also keeping them safe. In particular, three hospitals — the Albany (N.Y.) Stratton VA Medical Center, Grand Junction (Colo.) VA Medical Cen-
ter and Dallas VA Medical Center — recently underwent fire protection upgrades. The projects not only safeguard existing structures and areas but also allow for future expansion. As the three page-long case studies that follow illustrate, the systems integrators for these three sites reported similar fire protection demands for each. Chief among them were retrofit installation and networking flexibility, ease of use, expandability, and precision monitoring and control. The ability to utilize the same system to transmit emergency communications to a complete campus or parts of a building was also a recurring theme. ➞
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VA HOSPITALS LIFE SAFETY
Grand Junction VA Features Flexible Alerting
T
he Grand Junction VA Medical Center is a large campus of 17 buildings, serving approximately 37,000 veterans a year. Commercial Specialists, a local NOTIFIER engineered systems distributor (ESD), was contracted to replace the hospital’s antiquated protection with a new system that serves as both a fire alarm and emergency communications system. The elaborate project took a little more than a year to complete. Performing an upgrade required the existing system to remain active while a NOTIFIER system was installed. That system’s flexible local area network (LAN) architecture, running on fiber-optic cable, allowed fire alarm control panels (FACPs) to be easily added one-by-one. The specs called for the capability to disseminate emergency notifications throughout the entire campus, inside and outside. And they wanted the messages to be customizable, as well. For example, if there’s a fire alarm in Building 9, an individualized, prerecorded message in that building would instruct an evacuation, while patients and staff in the other 16 buildings would not be bothered. At the same time, the VA wanted the ability to allpage the entire campus as needed. “We put intelligent panels with digital voice control [DVC] in every building; that flexibility really allowed us to tailor the voice messages they wanted and gave the ability for mass notification,” says Jason Porter, president of Commercial Specialists. “The DVC is a real flexible, unique voice evac system. You can pretty much do anything to meet the needs of the customer.” Each building has an NFS2-3030 FACP integrated with DVC. All panels are tied to an ONYXWorks workstation that is staffed 24/7. The entire network of panels and devices, along with 3D layouts of every building, are graphically detailed on the workstation. This gives the VA system status information in real-time and pinpoint accuracy on the location and details of all events.
The Grand Junction VA’s upgrade required the existing system to remain active while a NOTIFIER NFS2-3030 system was installed. Its flexible LAN architecture, running on fiber cable, allowed control panels to be added one-by-one.
“They wanted to be able to get campuswide information at one location, not to have to go to each building and see what’s going on with that system,” says Porter. As is the case with many medical facilities, additions are always being
The entire network of panels and devices, along with 3D layouts of every building, are graphically detailed on an ONYXWorks workstation.
made to keep up with new health-care offerings and growing populations. The Grand Junction VA is no different. “They just built a new surgery center at the hospital and we’re already expanding its system,” says Porter.
All panels are tied to an ONYXWorks workstation that is staffed 24/7. Personnel can receive system status information in real-time and pinpoint accuracy on the location and details of all events.
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Addressability Answers Albany Stratton VA’s False Alarms
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ew York’s Albany Stratton VA Medical Center was a similar retrofit of a 20-year-old system that was rife with false alarms. The main hospital is 16 floors connected with a number of nearby ancillary buildings, all networked together. About 32,000 vets use the hospital each year. Originally protected by a zoned system, operators had a hard time identifying the exact location of alarms. Brad Nelson, project engineer and senior technician with Alarm & Suppression Inc., provided an addressable network from NOTIFIER, offering absolute control over the entire system’s fire-safety data. “Their old system was not very adequate in that department,” he says. “They’ve had problems in the past where they weren’t able to locate an alarm on an existing zone — with patient safety involved, they really needed a system that would eliminate that.” Alarm & Suppression and electrical contractor Clifford R. Gray Inc. installed two ONYXWorks workstations, three DVCs, 13 NFS2-640 FACPs, five NFS-320 panels and two network annunciators, all on a fiber network carrying digital audio loops and the fire alarm network. Making it easy to allow for facility maintenance, Nelson also created customized commands in the ONYXWorks system. “I’ve set up macros for them. With one click of a button, they can disable all the strobes, all the elevator recalls, fan shutdowns, etc.” Alarm & Suppression Project Engineer and Senior Technician Brad Nelson is pleased with how the Albany Stratton VA Medical Center project turned out. Here he is shown alongside the ONYXWorks graphic workstation, NCA-2 network annunciator and digital voice command center in the VA’s police office.
The system also includes 68 digital audio amplifiers to allow for separate, zoned voice communications. As in the Grand Junction case, when an alarm goes off in one part of a building, that zone gets an individual message. “They’ve got a very specific voice evacuation plan, where only in the smoke zone in alarm does it activate strobes and an audible alert, too. The rest of the floor and the rest of the hospital get a different announcement,” says Nelson. With surgical units contained within, Nelson’s group took extra precautions during installation and testing. “False alarms were a big deal. Obviously, when we were installing and bringing up a floor, we had to make
One of two ONYXWorks graphic workstations at the Stratton Albany VA is shown above. They are used to monitor the medical center’s entire fire alarm system.
sure that the work we did was rock-solid and we didn’t accidentally cause a huge chain of events to happen,” he says. According to Nelson, the ease of setting up the points in the field was valuable to the project. With the smoke detectors, pull stations and other initiating devices being addressable, contractors could follow the integrator’s plans and install each device without having to fool with the usual dipswitches or barcodes. As was the case with Grand Junction’s VA, Albany’s fire protection system had to be easy to expand with enough capacity to support any additions. “They wanted something that was easy to add on to and had a lot of room for future ex➞ pansions,” says Nelson. securitysales.com • JANUARY 2012 57
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VA HOSPITALS LIFE SAFETY
Sprawling Dallas VA Solution Spans 40 Buildings
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he Dallas VA Medical Center covers 84 acres just south of downtown Dallas and serves as the referral center for the VA North Texas Health Care System. According to Johnny Stacy, sales manager with local fire and security integrator SSD Systems, the Dallas facility, which employs more than 4,500 people and is the second-largest VA in the nation in terms of workload, plans to expand in the next few years. “The history and reliability of NOTIFIER and its distributor network were the big selling points on the project,” says Stacy, “ ... and of course, the flexibility of the digital voice command system for mass notification.” SSD Systems installed fiber-optic cable across the campus, connecting 13 NFS2-3030 FACPs with high-speed network cards. These panels protect 40 buildings containing in excess of two
The Dallas VA utilizes clear speaker/strobes to denote a fire emergency and speaker/ strobes with amber-colored lenses for all other types of emergencies programmed with prerecorded messages as part of the facility’s emergency communications system.
million square feet of space. DVC stations were installed in all panels to facilitate fire and emergency messaging. Three ONYXWorks workstations provide the master control and monitoring the facility requires. Like the other VA hospitals, officials in Dallas wanted to be able to pick up a microphone at one of the workstations and talk to any building. The NOTIFIER systems allow building-specific or entire campus announcements. SSD configured the NFS2-3030 panels for individualized messages and as needed, customizable emergency events.
SSD Systems Sales Manager Johnny Stacy tests one of 13 NOTIFIER NFS2-3030 fire alarm control panels with integrated DVC (digital voice command) protecting the Dallas VA Medical Center.
“If there is a tornado, for instance, the system can announce a different message than a fire emergency and amber-colored ‘Alert’ strobes would be used for that event. Obviously if it’s a tornado, you don’t want them going outside,” says Stacy. For Stacy, working on a project that will keep veterans safe is especially meaningful. His father, a World War II vet, was in the transitional care facility at the Dallas VA Medical Center for some time. “To get them a dependable system that works ... I’m very humbled by it,” he says.
Stacy inspects the Dallas VA Medical Center’s entire fire alarm and emergency communications network using an ONYXWorks graphic workstation located in the VA’s security office.
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VERTICAL MARKETS
HOW TO MAKE
Government Biz Less Taxing
E
ŠiStockphoto.com/Joel Carillet
Funding for government projects has slowed but that is only a temporary hiccup in a security market with unlimited potential for skilled and savvy integrators. Experts in video surveillance, access control, biometrics and physical barriers lay out the tools for success.
By the Editors of SECURITY SALES & INTEGRATION
ven in a time of federal, state and local belt-tightening, there is a lot of business for security integrators to reap from government agencies. But as anyone who has dealt with the government knows, it is an animal of a different breed. What one needs to do to get government business, what the government wants for its solutions and the challenges of working with the government are all different than selling in the commercial market. With that said and understood, where then are the best opportunities for sales in the government market?
To learn about this market in more depth, we talked to security professionals in access control readers, credentials and locking systems, perimeter control/vehicle control, video surveillance, and biometrics that deal with the government daily in their businesses.
What to Do to Get Into This Market An integrator can greatly increase government sales opportunities by tapping into the General Services Administration (GSA). By getting on the GSA schedule, an integrator can minimize competition and save time. For example,
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GAINING GOVERNMENT BUSINESS
Municipal parking complexes, such as the example above in Miami, Fla., are fertile ground for selling video surveillance systems. The inset shows the parking structure’s monitoring command center where vehicles and people are watched from entry to parking to exit.
Schedule 84 lets state and local governments buy off GSA pricing and only those on the schedule are allowed to bid, removing competition from other integrators not on the schedule. In addition, pricing is already covered by the schedule, which eliminates having to negotiate the end deal. According to David Ilardi, Ingersoll Rand Security Technologies director for the government vertical market, being on the GSA schedule also shows manufacturers that the integrator is truly serious about handling government projects. “To get on the schedule, there are fees involved and, once listed, an integrator must maintain a minimal level of business with the government,” he says. “Therefore, when we get a lead on a government project, one of the first things we look for is whether or not the integrator is listed and has invested not only money, but people and time, in ensuring they can properly service the government as a customer.” When bidding on such jobs, the government agency defines the project, for instance a daycare center for a military base, and gives an overall view of what it should entail (e.g. cover all rooms with a minimum of two cameras) at a defined budget. The integrator then needs to design the solution and, working with its contractors, detail how the project will be completed. “We do a lot of public works bids. We find the business in the various bid lists the agencies put out,” says Steve Randall, RCDD, technical operations
manager for San Diego-based integrator Communications Wiring Specialists. “Many of the projects are designbuild where competing bidders come up with both the design and construction under a single contract. So we put together the entire solution.” Mark Wilson of Infinova, a surveillance equipment supplier that works closely with Communications Wiring Specialists, has some tips for how security contractors can keep abreast of government market leads. “Integrators should sign up with one of the bidding services, such as Reed Construction Data or governmentbid. com, so they can learn about the bids as soon as they are published and which A&E consultant is in charge,” says Wilson, vice president, marketing. “Better yet is developing a relationship with one or more of the A&E consultants to get in on the ground floor. Beware that bids are put out to everyone, which can tend to reward the integrator with the lowest price. To avoid this, emphasize company expertise or highlight features and advantages of the product solution.” Forging tight relationships with manufacturers with products and systems suited to government applications can be advantageous for integrators. It is not uncommon for the manufacturer — especially those with GSA approval — to be approached directly or otherwise learn of a project opportunity within the sector. When that happens, they need to enlist an integrator they know and trust to get the job done right.
“Most integrators are familiar with how the bid and proposal cycle works,” says Phil Scarfo, vice president, worldwide sales and marketing for biometrics technology supplier Lumidigm. “It starts with prequalification and the collecting of information from vendors to produce a RFQ or RFP. When we catch wind of such projects, we alert an integrator we feel will provide the best technology solution. This could include a variety of relevant proposal components, such as prior experience and program management expertise, that can be packaged together to win the bid for them and us.”
What Government Customers Want Like end users in other markets, more and more government customers are looking for turnkey solutions. This is something integrators can do to separate themselves from traditional dealers and distributors of equipment. Understanding and helping these clients meet compliance requirements is another key element. “One thing that the government definitely seeks is solutions that integrate both physical and logical access control,” Illardi says. “And FIPS [Federal Information Processing Standards] compliance is extremely important.” In August 2004, the Homeland Security Presidential Directive 12 (HSPD-12) was issued to standardize federal security measures. FIPS-201 was later issued in 2006, defining the Personal Identity Verification (PIV) standards for federal
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employees and contractors. For access control providers, this means ensuring the products brought to the market, like smartcards and readers, must comply with the FIPS 201 requirements. “Even though the government has issued mandates that its facilities must meet this standard, this has been somewhat slow to materialize,” says Ilardi, “but those days are beginning to be behind us. Continued emphasis on compliance by the Department of Homeland Security and the Office of Management and Budget has sped up the implementation of HSPD-12 and the systems that support PIV smartcard credentials.” The high security and mission-critical nature of many government concerns
basis of who can best solve the problem at hand.” Government security systems and device needs often extend beyond electronic- and IT-based solutions. There is also high demand for true physical security measures such as barricades, bollards, turnstiles, fencing and so on, representing portfolio expansion possibilities for integrators. These are particularly relevant where vehicles are involved. “When approaching a government prospect for vehicle control and truck bomb deterrence, determine what are the critical entry/exit points of the facility,” says Greg Hamm, vice president of sales and marketing for Delta Scientific. “Customers need to be aware of two major design criteria, the most important being the certified crash rating of the unit. The second aspect is throughput. In many cases, vehicles must be able to get through quickly, needing up and down cycles of 6 to 8 seconds.”
Challenges Working in This Sector
Assisting and helping protect those in the government responsible for minding citizens’ welfare is a primary objective of providing security solutions to this sector. Above, an access control system’s proximity reader prevents unauthorized entry at the Estes Park (Colo.) Police Department headquarters.
and installations makes biometrics an attractive step-up in access control tactics. As Scarfo explains, regardless of the technology, the same basic principles apply to optimize the solution. “Contrary to commercial users who use biometrics because they want to, often government buyers use biometrics because they have to,” he says. “The government buyer may get locked into a technology mandate as can be the case in public safety or regulated applications. Whatever the case, it is always wise for buyers to choose integrators carefully and integrators to choose their biometrics manufacturer on the
The fact that compliance is such an important aspect of government business makes it imperative integrators maintain complete and accurate records of everything. After all, no matter how much push there is to simplify or streamline processes, this market will likely always have a certain degree of bureaucracy. This, again, is where partnering with manufacturers can be beneficial. “If an integrator gets in on one of these projects, they should work very closely with their manufacturer,” Ilardi says. “The manufacturer knows how to market and implement government solutions. They will ensure that the integrator is meeting all compliances, from quoting and bidding with compliant products and making sure the backup paperwork to the bid has the required documentation.” Just as vital as written details are verbal communications. Government organizations can be complex with multiple points of contact, which makes frequent dialogue that spells out everything essential to ensuring clarity for all parties. “With design-build bids, the problem is one of communications between the integrator and the customer,” says
Randall. “The government assumes everything is covered in the bid but the problem is that word ‘assume.’ For instance, what is a room … the broom closet? Does it need two cameras? The way to rectify any misunderstandings is to get everyone on the same page from the very beginning. When we don’t, it’s not unusual for the government to win the arguments.” An additional and substantial consideration associated in engaging in government business is contending with extended timelines. Large projects can stretch out for long periods of time. This means an integrator needs to have sufficient cash flow to withstand bidding, design, installation, change orders and final walkthrough before receiving final payment for the contract. “The biggest challenge most integrators find in dealing with the government is, because many of the projects are larger in scope, they take longer in time,” says Scarfo. “An integrator has to be willing to invest the time and energy to be a trusted advisor and not simply a vendor interested in promoting technology. The ability to listen and influence coupled with extreme patience is a must.” Wilson offers some additional practical advice to help ease the burden. “The government moves steadily and slowly. The bidding process can go on for three months or more,” he says. “An integrator can save time by creating a series of templates that can be saved and then cut and pasted into their proposals. Each bidding proposal will create more templates that can then be stored and available for future proposals.” To sum up, although we hear repeatedly how government budgets are going down, balance that with security threats still being high. Thus, money for security systems is still available and it is being spent. For integrators willing to put in the time and effort, the payback can provide serious revenues. ■ FIND IT ON THE WEB F View this story online at securitysales.com/ V govmarket for exclusive sidebar g on biometrics.
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The Essentials Hikvision 650TVL HD Standalone DVR Series
Hikvision Digital Technology of City of Industry, Calif., releases the DS-8100HWI-ST Series of high definition standalone DVRs, which are capable of accessing analog cameras up to 650TVL. The products use Texas Instruments’ Netra platform to allow enhanced video recording stability and real-time video encoding capability, according to the company. It also supports multichannel synchronous playback, as well as simultaneous HDMI and VGA output at 1,920 X 1,080 resolution. The unit also includes a self-adaptive 10M/100M/1,000M network interface for large-scale surveillance applications.
Arecont Vision MegaDome 2 Series Camera
www.securitysales.com/FREEInfo/11400
Arecont Vision of Glendale, Calif., releases the MegaDome 2 Series of all-inone H.264 cameras, lenses and housings, which combine remote focus, zoom and auto-iris with fast megapixel frame rates, according to the company. The MegaDome 2 AV1255AM is a day/ night camera offering 1.3-megapixel resolution at 42 frames per second (fps), and MegaDome 2 AV2255AM provides 1,080p full HD resolution at 32 fps. Both cameras offer a motorized infrared (IR) filter for day/ night functionality and provide casino mode to ensure consistent 30 fps recording. www.securitysales.com/FREEInfo/11401
System Sensor SpectraAlert Dual Strobe Expander Plates
System Sensor of St. Charles, Ill., releases the SpectrAlert dual strobe with speaker expander plates for emergency communications system (ECS) and mass notification system (MNS) applications. The expander plates include a UL 1638-Listed amber lens strobe for private mode general utility signaling that meets U.S. Department of Defense (DoD) specification requirements. The product can be used in 12V or 24V systems and can be paired with a fire-rated SpectrAlert Advance strobe or speaker strobe. www.securitysales.com/FREEInfo/11403
Bosch Request-to-Exit Detectors
The enhanced DS150i and DS160 request-to-exit detectors by Bosch Security Systems of Fairport, N.Y., detect motion in their coverage area and signal an access control system or door control device. They can be used with single or double doors. The detectors include built-in spike protection, eliminating the need to add a separate module to prevent significant voltage spikes on the relay contact. Sound output has also been increased through the implementation of a more effective sounder and circuit design. Users can increase the volume by more than 10% over previous models. www.securitysales.com/FREEInfo/11404
KBC Networks Unmanaged Ethernet Switch
KBC Networks of Lake Forest, Calif., releases the ESUL8 Series of unmanaged industrial Ethernet switches that combine with the company’s WESII wireless Ethernet units, to allow up to seven camera feeds to be sent securely over a single wireless link. The switches feature eight RJ45 10/100 copper ports that are automatically configured, broad dual-redundant power inputs, and are designed for low power consumption. The units have an operating temperature range of -40° F to +165° F and IP40 protection class casings. www.securitysales.com/FREEInfo/11405
Visonic CLIP PG2 2 Wireless Intrusion n Detector
Visonic Ltd. of Bloomfield, Conn., a Tyco Security Products company, releases the CLIP PG2, a two-way wireless passive infrared (PIR) perimeter detector designed to protect doors, windows and all-glass walls. The detector combines state-of-the-art curtain detection ion capabilities with a miniature, unobtrusive housing design, according to the company. Featuring the company’s PowerG two-way frequency hopping spread spectrum (FHSS) technology, the product is compatible with all PowerMaster systems and PowerG receivers. Security contractors can easily install the detector and program it to cover one of three ranges, according to the type of installation, the company says. www.securitysales.com/FREEInfo/11402
For the latest products, sign up for SSI’s Security Equipment E-lert at securitysales.com.
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Ad Index
Go to www.securitysales.com/freeinfo to request FREE product info.
PAGE
FREEInfo#
PAGE
FREEInfo#
AES Corporation ..............................................................................25
11199
Nissan Commercial Vehicles ...........................................................13
11109
Affiliated Central, Inc. ..................................................................... C2
11272
NVT .....................................................................................................3
11184
All American Monitoring .................................................................39
11204
Optex America, Inc. .........................................................................55
11219
American Fibertek ...........................................................................49
11216
Security Central ...............................................................................61
11171
Arecont Vision ..................................................................................21
11276
Security Door Controls ......................................................................6
11198
Axis Communications......................................................................14
11308
Speco Technologies......................................................... Cover Snipe
—
Bolide Technology Group ..................................................................7
11193
Speco Technologies............................................................................1
11142
CNB Technology, Inc........................................................................65
11321
SSI.....................................................................................................49
—
DSX Access Systems, Inc.................................................................11
11231
SSI -PDQ...........................................................................................69
—
EasyLobby, Inc. ................................................................................41
11185
SSI - Sammy’s...................................................................................75
—
EMERgency24 ................................................................................ C3
11136
T3 INNOVATION .............................................................................46
11149
FLIR Commercial Systems, Inc. ............................................. A8(34)
11220
T3 INNOVATION .............................................................................71
11191
HID Global .........................................................................................5
11234
Telular Corporation .........................................................................43
—
HIKVISION ......................................................................................17
11233
Telular Corporation .........................................................................45
11172
Honeywell Security ........................................................................ C4
11103
Tyco Security Products (DSC) .........................................................19
11120
Kirshenbaum & Kirshenbaum, PC .................................................66
11253
Visonic, Inc. ......................................................................................47
11216
Minuteman Power Technologies.....................................................23
11278
Vitek Industrial Video Products, Inc. ..............................................37
11281
Monitronics ......................................................................................59
11332
Company listings are provided as a courtesy — publisher assumes no responsibility for errors or omissions.
TM
KIRSCHENBAUM CONTRACTS
Sales.......................................Residential/Commercial............................................$200.00 Monitoring .............................Residential/Commercial............................................$200.00 Service....................................Residential/Commercial............................................$200.00 Lease.......................................................................................................................$200.00 Commercial: includes supplemental rider for add ons and to increase limitation of liability All-in-One (Not available in all states)......................................................................$600.00 Sales, Monitoring , Service Contracts (one contract) Residential/Commercial Disclaimer Notice....................................................................................................$175.00 (Additional Equipment Systems & Service, VOIP Disclaimer Notice) Access Control Administration & Service Contract................................................ $375.00 Audio/Video ............................................................................................................ $375.00 Fire Alarm Sale & Installation - Commercial ........................................................$375.00 Fire Alarm Monitoring Commercial fire alarm monitoring.....................................$375.00 Fire Inspection Service .......................................................................................... $375.00 Contract For Fire Equipment/Extinguisher/Smoke Detector/Sprinkler & CO Inspection Fire Alarm All-in-One Combines Sales, Installation, Monitoring, Service & Inspection ...............................................................................................$850.00 Fire Alarm Lease - Commercial .............................................................................$375.00 Includes supplemental rider for add ons & to increase limitation liability Standard Fire Alarm Sales /Fire Suppression .......................................................$375.00 Sprinkler Equipment Contract CCTV Sale Sale, Service and Monitoring/Data storage & Monitoring…...................$375.00 ....... .................$ $375 375.00 .00 CCTV Lease Supervisory Equipment Lease..............................................................$375.00 st ................... ......... ...... . ...$37 $3 5.000 NAPCO I See Video® Sales & Installation Contract................................................$375.00 ito tori r Contract..................................................... ................. ...... ......... .. ... .. ........ . ... .. ........ $375.00 $375 3 .00 Remote Video Monitoring Monitoring ugh cen centra trall stat sstation) tation ion)) (through internet access - not throu through central sponse nse Le Lease ase/Sa /Sale le - Con Consum sumer er Use Use.. ............................ .........$20 $200.00 Personal Emergency Respo Response Lease/Sale Consumer Use.................................$200.00 e Ins Instal tallat latio ion, serv r ice,, monitoring.................................................$200.00 monitor moni toring ing.............................. ...... ...................... ....$2 $200. 0 00 Residential Lease Installation, service, ntractor or Agr Agreem eement For su subb or or gene ggeneral n ral contr t act actor or..................... r ........................$20 $2 0.00 Sub-Contractor Agreement contractor.......................................$200.00 letio tionn Cert C ertifi ificat cate e........................... ...... . ............... . ............ ..... .......................................$ ..$40.00 Completion Certifi cate...............................................................................................$40.00 mmer mercia ciall & ResidentialRe Residenttial ial-- use use after afte installation instal talla tal lation & every lat ev ry service eve servicce call se Commercial ploy oymen mentt Agre A greeme em ntt Wit W h Rest estric r tivve Coven C nantt............................................. .. ..... $200.00 $2200.00 Employment Agreement With Restrictive Covenant.............................................. C-1 For Form FFinancial in nci ina ncial a Statement Statemennt .............................................................................. .............................................................................. ........ $50.00 $50.0 $50.0 0 0 UCC-1 ntra ral Sta ation ion Co Contr raccts ........................................................................................ ..................................................................................... .. ...... ...... .. . $375.00 $3375. 5.00 00 Central Station Contracts wayy con ntra ract bet be weenn c/o wee /o ins stalleer & sub bscrib ber, separate separaate form form where wheere wher 3-way contract between installer subscriber, /o is ssue UL ce ert rtificcate forr inst tallerr c/o issue certificate installer nstal ta lerr Co C ntrrac act............... ...... ................ . ............ . ...... . .......... .. .............................. . ..............$ $375 375.00 00 Installer Contract.....................................................................................................$375.00 Sta atio t nar aryy Guard Guar ua d “Rent-A-Cop”..............................................................................$375.00 “Re ent-A -A-Co -Cop”...... ................................................. . ...................... ...... .. ... ...... .......$37 375.0 00 Stationary Tel eleph ephone on Sa Sale les.…..................Comm mmeerciaal or Residential R Resideential al ...................................... ......................... .. .......... ........... ...... ... $200.00 $200.0 $20 0.000 Telephone Sales.…................Commercial Tel e eph ephone one Se Servic ce ..................Commercial ..................Com Commer me cia ial or or Residential Reside dentia iall ...................................... ............................................ $200.00 $ 00. $2 00 000 Telephone Service
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Custom Alarm accepts the 2011 PDQ award. Past winners include: Alarm Detection Systems, Altronic Alarms, Brink’s Home Security, Broadview Security, and Vector Security.
Call for Entries S
“Promoting Partnerships in Public Safety”
ecurity companies and law enforcement agencies work together as partners, sharing information and communicating frequently to protect public safety and serve their communities. The Security Industry Alarm Coalition (SIAC), False Alarm Reduction Association (FARA), and SECURITY SALES & INTEGRATION created the POLICE DISPATCH QUALITY (PDQ) program to promote cooperative best practices, reduce unnecessary dispatches and give officers the most complete information when responding to alarms. We are looking for companies that exemplify an all-out effort to reduce false alarms from implementing ECV (Enhanced Call Verification, a.k.a. two-call verification) to utilizing ANSI CP01-compliant control panels, training customers and working closely with law enforcement. The best overall collaboration will be honored with the 7th Annual North American PDQ Award, which is also endorsed by the Installation Quality (IQ) Certification Program.
• The winning security company will receive $1,000
for hotel and airfare to attend June’s Electronic Security Expo (ESX) in Nashville,Tenn., and will participate in the award ceremony. • Installing and /or monitoring alarm dealers in the U.S. and Canada must mail an application to SIAC postmarked by Feb. 28, 2012.
• Outstanding program ideas will be featured in SECURITY SALES & INTEGRATION magazine, in security association publications and their Web sites, and at ESX 2012.
• Security companies and local police officials should meet now to form partnerships in public safety.
WORKING TOGETHER FOR PUBLIC SAFETY
The SECURITY INDUSTRY ALARM COALITION and the FALSE ALARM REDUCTION ASSOCIATION Co-Sponsored by: SECURITY SALES & INTEGRATION Magazine, IQ Certification Program and Honeywell Security
Download an application and the judging criteria package at
siacinc.org • faraonline.org iqcertification.org • securitysales.com
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Building Your Business
Steps to Tax Preparation Success The IRS has stepped up its efforts to recover revenues from unscrupulous tax filers while certain tax breaks have expired. Here are the nuts and bolts to ensure a trouble-free tax season.
ith the New Year now upon us, it’s high time for business owners to think about their taxes. Be forewarned, some tax breaks previously afforded to installing security dealers and systems integration companies may not be available in 2012. Additionally, some areas will be under stepped-up scrutiny. Tax avoidance is perfectly legal (in fact the tax codes encourage it), but tax evasion can land you in a heap of trouble. As your company’s filing deadline approaches, below you’ll find copious planning ideas and cautionary advice to ensure your tax filing passes muster while achieving the greatest amount of benefits.
Heed ‘Red Flags’ to Avoid Audit In the late 1990s the IRS was criticized for being overly aggressive and Congress encouraged the agency to go easier on taxpayers. Unfortunately, during the past decade the slumping economy and growing deficit have caused the government to look for additional sources of revenue. Thus, the “kinder, gentler” IRS has become a thing of the past. One of the biggest changes is in the area of tax compliance. Twice as many tax returns were audited in 2009 as in 2000. Enforcement revenue during the same period increased 50%. Many businesses that are audited probably deserve to be, but many good companies and their owners may be forced to endure an audit for no apparent
©iStockphoto.com/enis izgi
W
By Mitch Reitman
reason. Honest mistakes are still mistakes, and the IRS isn’t in the mood to cut many breaks these days. As a business owner, you should take steps to minimize your audit chances by avoiding some of the “red flags” that may trigger an assessment. Following are several of the more prominent hotspots that oftentimes result in the IRS taking action. Using a suspectible tax preparer — The IRS has begun to crack down on untrained tax preparers who may play loose with the tax law. As of June 2011, all preparers were required to register with the IRS. If your preparer has not registered and does not have a Preparer Tax Identification Number (PTIN), he or she is no longer allowed to prepare returns for others. The IRS is cross-referencing problem returns to root out marginal preparers. If your preparer’s clients are filing questionable returns, and/or your preparer has been classified by the IRS as “suspectible” you may find that your return is selected for an audit. Owners who take minimal salaries — Many owners of subchapter S corporations take small salaries and allow the income to pass through to them personally as residual business in-
come. This allows the owners to receive the net income from the corporation without paying Social Security tax on the amount. The IRS is selecting businesses for audit if they have high income, but low officer’s salaries and making determinations that the officer’s salaries are inadequate. This results in an assessment for the unpaid Social Security taxes, plus penalties and interest. This is a very hot enforcement area. Take a look at your compensation for 2011. If you paid yourself a reasonable salary (and withhold appropriate taxes) before Dec. 31, 2011, you may avoid a very unpleasant surprise. If not, you should consider paying yourself a bonus for 2011 now. There will be a penalty for underpayment of your taxes, but it will likely be far less than the cost of an audit. Unreported income — Be especially careful to report all income. If you received a 1099, so has the IRS; its computers will notice if they don’t match up. Schedule C (sole proprietorship) filers — This is perhaps the most commonly scrutinized type of entity. A recent study by the IRS found that Schedule C filers are known for not reporting income. Also, there are many chances to claim
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incorrect deductions in this category. This may be an excellent time to incorporate and elect S corporation treatment, both for the legal and tax benefits.
Tax Planning to Tie Up Loose Ends This is a good time to take advantage of some gifts that the IRS is affording you, some that Congress may soon take away. In particular, be sure you or your preparer consider these nuggets: Bonus depreciation — Although you are generally required to capitalize and depreciate most fixed assets, you may be able to take bonus depreciation of up to 50% of the asset’s cost. This is true even if you finance the asset. So that new computer server that you purchase with monthly payments may be fully deductFIND IT ON THE WEB F The online version of this article includes T aadditional material. Visit securitysales.com/ business0112
ible this year even though you will only pay a minimal amount in 2011. Credit for employer-provided health insurance — If you pay for all, or even part, of an employee’s health insurance, you may be able to get a credit for 35% of the premiums paid. The credit will reduce your taxes owed dollar for dollar, so credits are generally better than deductions. There are rules and limitations for this credit, but most security companies will qualify. It’s too late to do this for 2011, but it is excellent tax strategy for 2012. Check with your tax advisor. Retirement Plans — You can provide a valuable benefit for your employees, put money away for your own retirement, and get a tax deduction by starting a retirement plan. A Simplified Employee Pension (SEP) IRA is easy to establish. Many payroll and benefit
companies are offering economical establishment and management of profit-sharing and 401K plans. It’s not too late to do this for 2011 as most of the plans allow you to make payments before your Corporate Tax Return is due. Speak with your tax advisor or payroll provider if you need more information on these valuable business tools. The elections in November will no doubt usher in a major change in federal and state governments. The continuing budget woes will no doubt cause governments to look for additional sources of revenue. Be sure to take advantage of the tax breaks available to you today; they may not be around next year. Importantly, be very careful not to get caught in the crackdown. ■ Mitch Reitman is Managing Principal of Fort Worth, Texas-based Security Industry Capital (SIC) Consulting, which provides financial services to security alarm companies in 23 states and Canada. He can be contacted at mreitman@sicc.us or (817) 698-9999.
www.securitysales.com/freeinfo/11191
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The Big Idea
How Service to the Industry Can Benefit Your Own Business By Ron Davis rdavis@graybeardsrus.com
IDEA of the Month If you had just one really great idea you could share with the alarm industry, what would it be? This month’s great idea comes from Charles “Dom” D’Ascoli, president of the Electronic Security Association (ESA).
D’Ascoli’s great idea: Select good people, empower them to do the job, and stand back and watch the results.
D
om D’Ascoli is founder and president of Franklin, N.C.based Smoky Mountain Systems, and by his own admission he’s a serial entrepreneur. In other words, D’Ascoli loves to start businesses. We were sitting next to each other at dinner during the recent Central Station Alarm Association (CSAA) meeting in Venice, Italy. I asked him an obvious question: “How is your business doing now that you’re spending so much time working on behalf of the industry as president of ESA?” He thought about it for a moment and replied, “Actually, my business has grown in the last year and 2012 is shaping up as being a good year too.” Take a second to consider anew the great idea above. While D’Ascoli is not necessarily standing back, he’s doing so much work on behalf of ESA that I can’t help
but wonder how he’s able to juggle all of the things in which he is involved. But juggle he does. So I questioned him further on why his business is succeeding in spite of him being engaged elsewhere much of time. “Looking back, it’s entirely possible that I was too close to the business and probably got in the way of the people that should be making decisions in the company,” he said. “By being away from the company as much as I have been, it forces me to keep my hands off the day-to-day operations, and it helps empower all of the managers that are involved in the company. The results speak for themselves — increased sales, increased profitability, no turnover and everyone seems pretty happy!” I’m not sure if it’s necessary for the average person reading this to take a year off (two years in
D’Ascoli’s case) in order to empower people in your company to do the best job they can. However, I think there could be similar benefits to realize if you, as the entrepreneur, step back and instead focus on the great issues of your company rather than operational issues.
One Question to Ask Indeed, everywhere I go in the alarm industry I meet people who are giving back to the industry. Presidents of local associations have watched their businesses grow while they devote an inordinate amount of time in this way. Is it worth it? There is an easy way to find out. The next time you attend an association meeting (local, state or national), seek out those who are working hard on behalf of the industry and ask them: “Is your business better off, the same, or under distress because of the time you devote to the industry?” I suspect the answer will almost always be, “Better off!” Here’s an old adage for you to ponder: Our rewards in life are in direct proportion to our contributions. Think about the contribution you’re making. Think about how well your business has performed and see if there isn’t some sort of a positive correlation that you could add to the mix. You’ll love the result! ■ Ron Davis is a SSI Hall of Fame inductee and President of Davis Mergers and Acquisitions Group Inc. Also known as The Graybeards, the company is active in acquisitions and mergers exclusively in the alarm business.
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Honoring security dealers/integrators that exemplify professionalism in their sales, marketing, business and installation efforts.
Entries are now being accepted. For more information,
www.thesammyawards.com or email: secsales@bobit.com
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9 Things You Must Do in 2012
U
nless you read this magazine backwards, which many people actually do, you are at the end of SSI’s 2012 Industry Forecast Issue. That means it’s time for my 2 cents, only what I offer is more along the lines of action items to help you make it a successful year for your business. Hopefully, you’ll feel like the best was saved for last. Here we go:
1.
Contract scrutiny by potential buyers, and judges who are charged with enforcing your contracts, will be more stringent. Update your contracts. Your contracts are the most important asset you have in your business. It’s your contracts that will protect you from liability and build equity in your business. Your goal for 2012 should be significant RMR growth. I predict the multiple paid for state-of-art contracts will increase this year.
2.
RMR growth will depend not only on aggressive sales efforts but diversification of your services. Subscriber-enabled monitoring services permitting them to view data, listen to audio, and arm and disarm systems will become more popular moneymakers for alarm dealers. Also remember it’s important to balance your sales, if possible. That means not limiting yourself to just commercial or residential; just leasing or sales; just intrusion or fire.
3.
Check your insurance coverage. Not all insurance compa-
nies are the same and not all premiums are equal. You want to be sure your E&O coverage is current and in sufficient amount. Take some time to evaluate your life, health and disability insurance needs and be sure to look for competitive pricing.
4.
If you are still conducting business in your own or an assumed name, you need to incorporate. Do it now. You don’t want to continue to invite personal liability for your business activities. I recommend a business corporation, subchapter S election.
5.
Make sure your license to conduct business is active and upto-date. Be certain you know all the requirements in all the jurisdictions you do business. There are all kinds of regulations that go along with licenses, many of which affect your employees. Be compliant and avoid heavy fines and possible suspension or loss of your license.
6.
Review your accounts receivables. In our economic environment it is essential to stay on top of your receivables. You may need to become more aggressive with your collection efforts and procedures. Don’t carry subscribers in default, which means falling out of their regular payment schedule or more than 30 days in arrears.
7.
If retirement or sale is remotely in your future, start thinking of an exit strategy. If transition to family members is your plan then perhaps
By Ken Kirschenbaum ken@kirschenbaumesq.com
you need a trust, and should start transferring stock to that trust or to your kids now. If you think you might sell out, then you need to start running your business like a business.
8.
Try to pay down debt. Manage your business to operate within its means. Working harder and making better sales decisions is a better way to raise money. Selling your subscriber accounts and contracts is like selling your soul to the devil. If you belong to a dealer program or group that encourages you to sell your subscriber accounts, then get out and pick another dealer program.
9.
Make sure you are getting the best deal from your suppliers, including your central station and equipment distributors. Times are tough for them too and they are looking to hold onto good accounts, like yours. Be sure you have your own line into the central station and that your control panels are remote programmable. If you now own your radio network, then your contracts probably have to be updated. ■
Ken Kirschenbaum has been a recognized counsel to the alarm industry for 35 years and is principal of Kirschenbaum & Kirschenbaum, P.C. (www.kirschenbaumesq.com). His team of attorneys, which includes daughter Jennifer, specialize in transactional, defense litigation, regulatory compliance and collection matters.
SECURITY SALES & INTEGRATION (ISSN 1539-0071) (USPS 511-590) is published monthly by Bobit Business Media, 3520 Challenger Street, Torrance, California 90503-1640. Periodicals postage paid at Torrance, California 90503-9998 and additional mailing offices. POSTMASTER: Send address changes to Security Sales, P.O. Box 1068 Skokie, IL 60076-8068. Please allow 4 to 6 weeks for address changes to take effect. Subscription Prices - United States $96 per year; Canada $96 per year; Foreign $140 per year. Single copy price - $8; Fact Book - $35. Please allow 4 to 6 weeks to receive your first issue. Please address Editorial and Advertising correspondence to the Executive Offices at 3520 Challenger Street, Torrance, California 90503-1640. The contents of this publication may not be reproduced either in whole or in part without consent of Bobit Business Media. All statements made, although based on information believed to be reliable and accurate, cannot be guaranteed and no fault or liability can be accepted for error or omission.
Legal Briefing
The opinions expressed in this column are not necessarily those of SSI, and not intended as legal advice.
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Fire & Burg
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touch of brilliance
Bring more homes to life with Honeywell’s Tuxedo Touch™ Automation Controller Bold. Brilliant. Beautiful. When it comes to home control for everyone, Honeywell’s exciting new Tuxedo Touch is anything but basic. Ideal for both new homes and retrofits, it’s simply the easiest, most affordable way to tie all of the technology in your customers’ homes together—helping you win new business and create recurring monthly revenue. Security, cameras and Z-Wave® enabled lights, shades, locks and thermostats—all linked and controlled from one stunning, high-resolution 7" touchscreen that’s also a digital picture frame and video viewer. And, its web server with built-in Ethernet turns every smartphone and tablet into a mobile controller. Look for Wi-Fi version (TUXWFIS) coming this spring. For a fraction of the price of other solutions, Honeywell’s Tuxedo Touch lets you make their homes more enjoyable and your business more profitable than ever before. What could be more brilliant than that?
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