Integration firm spins off video monitoring operation

ICU split the division off to avoid channel conflict
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Wednesday, April 27, 2016

SCOTTSDALE, Ariz.—ICU Security Group, an integration firm based here, is spinning-off its proactive video monitoring division, SARC Monitoring, into a separate company.

“We’re also in the process of procuring a new building, [and] once the building procurement is done the [spin-off] should be complete at that time as well,” San Kim, director of operations with SARC Monitoring, told Security Systems News.

SARC stands for Surveillance Acquisition Response Center, Kim said. The company is looking for a “10,000 square foot free-standing building, with enclosed property” to house SARC.

“Our initial approach was to contact and partner with other systems integrators and to have them as the boots on the ground,” Kim said. The idea was to expand the footprint of the video monitoring division. However, ICU encountered difficulties because potential partners were ICU Security Group competitors.

“What we realized is … if our target market is going to be other systems integrators, either in our market or outside the state of Arizona, we have to be a monitoring center,” Kim said.

“Even though we know we would never compete with the VAR or a channel partner, the VAR or channel partner doesn’t know that. So, we have to completely separate the entities,” Kim explained.

SARC differentiates itself by providing “a lot of things outside the general scope of security,” Kim said. For example, SARC can track people in a building after-hours to ensure they don’t enter certain zones, and making sure truck drivers spend adequate time inspecting their vehicles. “Anything that we have eyes on, we can provide as a monitoring service for the client.”

Kim identified business complexes and pharmaceutical facilities as the two largest verticals for SARC. Forty percent of SARC’s business is with commercial centers, and 20 percent is with pharmaceutical businesses, he said.

Kim said he expects critical infrastructure will be an emerging vertical for the company.