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by: Martha Entwistle - Wednesday, May 16, 2012

I arrived late in the afternoon yesterday in Westminster, Colo. for one of my favorite events of the year, PSA-TEC.
 
The conference,  which started on Sunday and runs through Friday, was well underway when I arrived. Lisa Cole Miller, PSA Security Network marketing director said attendance is up about 10 percent over last year with more than 65 integrator companies here. (Some of those companies send up to 10 employees.) In addition, there are consultants, end users, and more than 40 vendors exhibiting on a show floor here.

“When you think about it, it’s a bargain,” Miller said, “For $500, you get breakfast and lunch, four days of classes, a trade show and parties.”

I arrived in time for PSA Security CEO Bill Bozeman’s presentation “What every integrator needs to know about being an effective executive.”

This class is part of the PSA Leadership Institute, which PSA launched in October at the PSA Convention in Puerto Rico. Here’s a story with details about the program.

It was the end of the day and Bozeman spoke for more than an hour about the highlights of the business book “The Effective Executive,” which was written 40 years ago by Peter Drucker.

I’m not one for long presentations—but Bozeman is a good speaker. Ever hear an engaging preacher give a good sermon? He’s got a little bit of a preacher’s cadence, and he tells some pretty funny stories too.

There were about 50 integrators and a few vendors in the room for his presentation. Bozeman’s clearly taken to heart one of Drucker’s tenets: “if you’re going to call a meeting, make if effective.”

Highlights of the talk included:

—“Manage yourself.” To lead you’ve got to show discipline—show up on time, have passion for what you’re doing.” Bozeman told a story about visiting a PSA member who’s business wasn’t going well. Bozeman said he was not surprised that business was bad when he visited the office.

“The shades were drawn, there was no light, the owner was walking around [hunched over, with his hands on his forehead, looking like the sky was falling]. And the employees were doing the same thing—walking around like zombies. It was the most depressing place I’ve ever seen.”

—Drucker said he never, in 45 years, came across a single, natural executive who didn’t have to learn how to be an effective executive. It’s something you need to work on.

—Identify company objectives, how you spend your time, and don’t let people waste your time. Focus on the positive and motivating your people.

Pierre Trapanese, owner, Northland Control Systems, as an example of effective executive. Trapanese (who will be speaking at the conference today and who spoke at TechSec in 2010,  bought a small integration company “that needed  a lot of work” Bozeman said and turned it into a fast growing company.

“Through leadership and vision, he’s grown that company beyond what [anyone] thought was possible,” Bozeman said.  Recently, Trapanese chose an annual goal for the company. “This year we’re going to have fun,” is what he said, according to Bozemen. “He’s got people knocking down his doors wanting to work there, and he doesn’t pay the highest salaries in the areas.”

—Manages to peoples’ strengths, and surround yourself with people who have strengths that you don’t possess.

—Veto hiring anyone with substance abuse problems or who’s dishonest in the least.
  
—Read the fine print, hire legal counsel.
—“Don’t take pride in being King Kong… become more visionary and less the doer.”

Time to head over to the conference. There’s an M&A panel at 8, followed by a panel of successful integrators  and fast-growing integrators, a panel on market drivers, and one on social media. I’ll have more tomorrow.

by: Martha Entwistle - Monday, May 14, 2012

Mega-security company, G4S—which does systems integration, guards and monitoring— has done a lot of acquiring in recent years domestically and some selling abroad.   According to a Reuters report this morning, it’s about to do some more selling—but not in North America, in Denmark.

The report says says G4S is preparing to sell its “alarm centres in Denmark” I’m assuming “alarm centres” are monitoring operations, but guess they could possibly be alarm installation companies. I’ll get some clarification on this.

The report says G4S will keep its guard operations in Denmark. “Several private equity firms” are reportedly interested in buying and the deal is expected to be work “more than 1 billion Danish crowns ($174.13 million), “

Here’s some more from the story:

“Security firm G4S is preparing to sell a large part of its Danish operations in a deal that is expected to be worth more than 1 billion Danish crowns ($174.13 million), Danish financial daily Borsen said on Monday.

Borsen cited banking and legal sources familiar with the matter as saying that G4S was close to a sale of its alarm centres in Denmark, but would keep its Danish uniformed guards business.

“G4S has not been able to earn decent money from the infrastructure part (of the business) in Denmark so now they are selling it,” a source representing a potential buyer told the newspaper.

The paper said that several private equity firms were interested in the operations that G4S was selling. The paper said the sale would be similar to divestments of operations in Norway, Poland and Sweden that G4S has carried out after the company failed last year to acquire Danish outsourcing firm ISS in a 5.2 billion pounds ($8.4 billion) deal.
In March, G4S said it would return to targeting emerging markets, including Brazil, China and India, following the failed ISS takeover attempt. ($1 = 5.7429 Danish crowns) ($1 = 0.6212 British pounds) (Reporting by John Acher; Editing by Helen Massy-Beresford)”

by: Martha Entwistle - Wednesday, May 2, 2012

Yesterday Universal Protection, a $500 million guard company that also does security installation, acquired Heritage Security Services of San Diego. It also acquired a guard-tracking technology its CEO says is "game changing."

The deal brings 1,200 guards, but more interesting, it also brings with it a “proprietary and patented guard-tracking technology.” This is what really drew Universal into the deal, Steve Jones, co-CEO and COO of Universal Services of America, the parent company of Universal Protection, told me today.

He said that Heritage spent $6 million over the past five years developing this technology. Jones said Universal plans to introduce this technology in all of its locations

“Basically each officer carries a device and we can … put a geofence around the account. So we can tell where the guards are. [We know] if they go outside the fence, if they’re not doing what they’re supposed to be doing, if they haven’t completed a task they’re supposed to do,” Jones explained. “We can take a customer account and show the customer point-by-point, minute-by-minute, where an officer was,” he said.

“And we get an alert if the officer fails to do something.”
 Jones said Universal will use the technology across its footprint “as a differentiator” initially, but there has been discussion of possibly “licensing it to guard companies who are in markets we are not in.”

The acquisition of Heritage makes Universal the dominant player in San Diego, LA and Orange County, he said. “From a Southern California standpoint, Universal has a commanding marketshare.”

In March, I wrote a story about Universal Protection in which Jones told me that Universal wants to have security installation capabilities (which are currently concentrated in California and the Carolinas) in every market where it has guards.

The company acquired SFI, and integration business last fall.   Jones said the company plans to complete another acquisition, which may include a security integration component, by the end of the summer.

“Stay tuned,” he said.

by: Martha Entwistle - Wednesday, April 25, 2012

In a video I posted on our site today, an interview with Tyco Integrated Security CTO Jay Hauhn  from ISC West, one of the topics we talked about is  the security industy’s journey to the cloud.

We’re not there yet with hosted video, he said, but the one product area where the industry is most comfortable in the cloud is access control.

And, Brivo Systems is certainly one of the leaders in this arena. Brivo CEO Steve Van Till wrote a guest commentary for us about the cloud confusion he saw on display at ISCWest. Check that out here.

But more on Brivo, I spoke yesterday to Lee Odess, Brivo’s director of sales operations, about the company’s new dealer program that it launched at ISC West. The company has existing dealers, of course, (about 300) but this is Brivo’s first formal dealer program.  

“The main thing is that it’s a partnership. We’re not dictating or demanding,” Odess said. “We’ll reward dealers based on commitment … and there’s a real focus on market development,” he added.

For committed dealers, Brivo will help “from a monetary side, to execution and support … or in other strategic ways,” Odess said. For example, if a dealers “wants to go after the retrofit and remodel remarket, we’ll work with you to put a program together.”

It’s a three-level program: Silver, Gold and Brivo Blue. Brivo Blue dealers “are the most committed”, Silver dealers are likely new dealers, and Gold dealers “work with us but there are certain things they don’t do on the commitment side,” Odess said.

Odess listed eight benefits for Brivo Blue dealers:+
1.    Market Development Funds—which will be based on last year’s sales.
2.    Lead Sharing—“When we get contacted by end users, we’ll connect them with our most committed dealers.
3.    Dealer Council. “It’s a place for idea sharing and a forum for beta testing and showcasing our tools.” It’ll be a platform for feedback, positive and negative, he said
4.    Online web service, which is co-branded with the dealer’s name.
5.    A&E Specification include dealer training and certification levels.
6.    Search Engine Optimization—“We’ll help dealers position themselves better in the market.”
7.    Internal extranet “it’s like the forum, but it’s an online feature”
8.    Award program that’s based upon how closely the dealer works with Brivo instead of just “how much you purchase."

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by: Martha Entwistle - Wednesday, April 11, 2012

Taking another step toward independence, ADT on April 10 announced the post-split management line-up, highlighting the appointment of Kathryn Mikells and laying out ADT North America’s financials, key performance metrics, strategic priorities and more in a Form 10 registration with the Securities and Exchange Commission.

The form says that Tyco, ADT’s parent company, “does not intend to comment publicly on ADT Form 10.” Tyco announced in September 2011 that it would split into three separate, publicly traded entities: Flow Control; the The ADT Corporation; and Tyco International (comprised of Tyco Integrated Security and Fire).

In addition to Mikells, the management team reporting to Naren Gursahaney—current president of Tyco’s ADT North American residential and small business security segment and future CEO of The ADT Corporation—will include David Bleisch, legal; Anita Graham, HR; Don Boerema, corporate development; Mark Edoff, Business Optimization; Steve Gribbon, sales; Shawn Lucht operations. The eighth member of the team, in charge of marketing will be announced in the future.

Not listed on the managemtnt roster is John Koch, current president of ADT, who plans to leave ADT, sources told Security Systems News.

According to the filing, ADT had 2011 operating income of $693 million and revenue of $3.1 billion, with 89 percent of that revenue being recurring. It has 6.4 million customers and estimates that it owns 25 percent of the $12.5 billion residential and small business security market in the U.S. and Canada. A chart says ADT and IMS Research estimate that Protection 1 has 4 percent of that market, Monitronics has 3 percent and Vivint has 2 percent. “Thousands of others” share the remaining 66 percent of the market.

Among ADT’s stated strategies is growing its small business segment. ADT said it will expand its  “small business field sales force, which currently represents only about one-third of our overall direct sales force. We plan to provide strengthened small business marketing support to this enhanced sales force, including by building a larger, more robust partner network to improve our lead generation capabilities and by assisting in marketing additional value-added services, including ADT Pulse,” according to the Form 10 statement.

ADT intends to continue to “explore opportunities to provide ADT-branded solutions through additional channels, including telecommunications companies, broadband and cable companies, retailers and public and private utilities.”

“In addition, through our efficient operating model we believe we can significantly reduce the cost of basic security installation and services, opening up the potential for a much larger portion of households to purchase monitored security,” the form says.

Metrics noted on the filing include the following: The company’s attrition rate dropped from 14.3 percent in 2009 to 13.3 percent in 2010 to 13 percent in 2011, while ARPU (average revenue per user) went from $35.92 in 2009 to $36.10 in 2010 to $37.24 in 2011.

On the appointment of Mikells, Gursahaney  said in a prepared statement: “Kathryn brings impressive financial leadership expertise and a proven track record of managing transformation while driving financial discipline,”

Mikells, joins ADT from Nalco, a water treatment and energy technology company, where she was CFO. Previously, she worked for 16 years for UAL Corporation, the parent company of United Airlines, where she was EVP and CFO.

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by: Martha Entwistle - Friday, March 30, 2012

So much to write about Day 2 at ISC West 2012, but here are some notes from the day:

Stanley held a luncheon reception to introduce the new combined leadership of Stanley CSS and Niscayah. The combined company serves 460,000 customers from 80 North American locations. The team includes: Marty Guay, VP-national accounts and market solutions; Mike Bishop VP-field operations; Pete Straka, VP-human resources; Steve Walker, VP ProtectionNet customer service centers; Damon Kanzler, VP-opeartions support; Joe Richards, VP-infomation technology, Felix Gonzales, VP-Strategic Initiatives& business development; Jim Kopplin, VP-field sales & integration leader; Tony Byerly, president North America; Ina Staris, senior legal counsel; John Nemorofsky, VP market solutions; Raymond Radis, VP-national accounts.

--I did a number of video interviews including ones with Jamie Haenggi, chief marketing and customer experience officer for Protection 1, where we talked about Protection 1's focus on national accounts.

--Sharon Shaw, PSA Security director of education filled me in on what's new at PSA-TEC this year for integrators.

--Kristen Simmons, founder of LiveSmart Security, and a veteran marketing executive of several Fortune 500 companies. Kristen will be delivering the keynote address at ESX this year and talking about the customer experience as the "next battleground" for security companies.

--Jay Hauhn, CTO for the newly named Tyco Integrated Security,  talked about what Tyco International's priorities once it splits into three separately companies and Tyco International becomes a pure play security and fire group for the first time.

I did several booth visits, but one of the most interesting was speaking to Yohav Stern, CEO of DVTEL. Stern talked about the company's new "TruWitness" product which turns a smartphone into a camera on your surveillance network. Stern also talked about how DVTel has changed in the past year since he assumed leadership. The  R& D team now has some simple but firm guidelines. Products being innovative is not enough, he said, they need to be reliable, scalable,  end-to-end solutions that are also open.

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by: Martha Entwistle - Thursday, March 29, 2012

Big news from yesterday was the acquisition of Westec by Interface Security Systems. The story is on our front page or click here . You can also see my video interview with Jeff Frye of Interface Security Systems about the Westec deal on our front page or by clicking here.

Winning the procrastination award for latest to announce a press conference at ISCWest  2012 is BRS Labs. I got the announcement a little after midnight--8 hours notice!

It's not a strategy I'd recommend, but there was a good crowd in the press room at 9 a.m. today. John Frazzini, president of BRSLabs, showed several examples of how the software "learns" how a certain venue should look day and night and then goes into alert when there’s an anomaly. The first example was subway tunnel. The alert went off when a regular automobile tried to follow the subway into the subway tunnel.

BRS Labs, just received its umbrella patent, and some of its wins are part of the public record, including a $2 million deal with the San Francisco.

Frazzini believes the future is bright for behavioral analytics. He said that IMS predicts that behavioral analytics will be a $2.1  billion addressable market by 2015. On the other hand, traditional video analytics have been a $57 billion market through  2010,  and is expectd to grow to $108 million market by 2015. Frazzini called that growth "immaterial and irrelevant" and said a behavioral analytics is causing a “real disruption in the marketplace.”

INGRAM MICRO

In another unscheduled—at least in my book—press conference, I heard Ingram Micro’s Brian Wiser talking about that company's renewed push into the physical security business.

Wiser said the Ingram Micro physical security business has doubled in the past year.  He said Ingram Micro considers physical security a “strategic high growth focus [area, and said the company intents to]  dedicate disproportionate resources to this business unit.” Integrators should not be afraid of making the leap into IP systems, he said. “Ingram can help them make the leap—to enable them to do it themselves [or if they need help with a particular project] we can connect you with someone who can do that for you in a non-competitive fashion.”

Wiser said that Ingram Micro—which had 20,000 square feet of show floor space, 30 partner vendors and 450 VARS—intends to enter the industry in a big way—to "dive in and dive deeply," he said.

JOHNSON CONTROLS

I had a great meeting with Tammee Thompson who is the new VP and GM global fire and security for Johnson Controls. Her appointment was announced last week, but she’s been in place for about 5 months.  

This is the first time the global fire and security unit has been organized into a global PL. Thompson has spent the past four months traveling around visiting teams in the field, understanding the capabilities the groups have and need to grow the business. The goal, she said, is to the become the integrator of choice.

In North America, JC has 80 branch offices that offer security and fire as well as services and HVAC. “That will help us on a regional basis to offer entire portfolios to customers,” she said.
AT ISC West, Thompson's team is looking at technologies, not devices. JCI has an access control platform that integrates with 17 VMS providers. At this show Thompson's team is  nvestigating complimentary platforms such as PSIM and Identity Management.

WSC

At 12: 45 I moderated a Women’s Security Council meeting with three very cool and accomplished women: Kelly Bond, senior vice president of sales & marketing for Alarm Capital Alliance; Renae Leary, ADT Global Accounts Senior Director; and, Juliette Gustavsson, Milestone Systems Head of Corporate Marketing. Lots of tips, tactics and resources for career advancement. I’ll have a full story on this next week.

S2

I stopped by S2 and spoke to John Moss about what’s new there. He’s particularly excited about forensic capabilities of his new products enabled because of the tight integration between the access control and video.  More on this and other show floor stuff later.

I'm late getting to the show floor. The Security 5K was great this morning. Lots of people, great weather. Come to the reception on the show floor at 4:30 this afternoon.

Did you see the story about ADT commercial changing it's name that I posted on Tuesday? Gonna get some more info on that today from Jay Hauhn. Much more to report from Day 1 and Day 2 later today. Stay tuned.

 

by: Martha Entwistle - Monday, March 26, 2012

Getting ready today (Monday) to leave for ISC West--the three-day show that gets longer every year. I’m arriving Tuesday afternoon and have several meetings and events before the show floor even opens. I’m not complaining—I'm actually looking forward to these events.

Our newswire will go out as usual on Thursday morning, but Tess, Rich, Whit (managing editor of our sister pub Security Director News) and I will be tweeting from the show and updating our blogs daily, so go to the SSN and SDN homepages throughout the show to catch up on what we’re seeing at at the show

Today and tomorrow are the classic days for industry announcements, though folks, believe me, they are the worst days for company announcements. (I am complaining now.) I’m generally at the Portland airport when I see that something newsworthy has broken. It's a bad time to announce news. Everyone is traveling, so the news gets missed—by reporters and readers alike. Or it gets buried in news that was released and written in advance.

Of course, sometimes there’s news that you’re obliged to put out for one reason or another, but you really don’t want it reported. If that’s your situation, put that press release out Wednesday morning about 10 a.m. as the ISC West show floor is opening. It’ll get stomped on—at least for a little while.

So this is what the beginning of my show looks like: On Tuesday, after an on-time landing, I’ll be meeting with some folks about the ESX show (Nashville in June), heading to a SecuritySpecifiers.com event, checking out an Altronix press conference, swinging by the Women’s Security Council reception at Pinot Brasserie, and then going to another industry reception/dinner. See you in the hallways running from event to event.

For me, Wednesday morning will begin with the Axis Breakfast. I’m no fan of breakfasts before the show, but I make an exception for this annual early rally. Axis generally does a good job of keeping it short, informative and lively, and making execs available—plus they’ve made some interesting announcements in recent days which I’m eager to learn more about.

When the showfloor opens at 10 on Wednesday, Tess, Rich, Whit and I will be at our booth (27065) for an hour of "Meet the Editors". Please stop by and say hi.

I’ve got a couple booth visits and a press conference, after which time I’ll be moderating the WSC educational session “Sell yourself, but don’t sell yourself short.” Going to be an interesting discussion, plan to stop by.

Between booth visits, I’ll be interviewing Tammee Thompson—who on March 21 was named vice president and general manager, global security and fire for Johnson Controls on March 21; Niall Jenkins from IMS (which was acquired last week by IHS); Carey Boethel and Ken Francis, who a couple of weeks ago launched Securadyne, and PSA Security's Sharon Shaw.

There's much more, but you'll have to check back here for details.

One more thing, there’s still time to sign up for the Security 5k. Run for fun and make a difference in a needy child’s life.

Check back here for more from ISC West 2012.
 

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by: Martha Entwistle - Wednesday, March 21, 2012

I hope you’ll make room on your ISC West calendars to attend the second annual Women’s Security Council educational session focusing on networking and career advancement for women in the security industry, which will be moderated by yours truly.

The session will take place on the first day of the show, Wednesday, March 28, 2012, from 12:45pm-1:45pm in rooms 206-207.

What can your business do to hire and retain highly qualified women?

This is one of the topics the panelists will address. And we've got three awesome security industry executives on the panel: Kelly Bonds, Senior Vice President of Sales & Marketing, Alarm Capital Alliance, Media, Pa.; Renae Leary, Senior Director, ADT Global Accounts, Boca Raton, Fla.; and Juliette Gustavsson, Head of Corporate Marketing at Milestone Systems in Copenhagen.

Kelly is responsible for increasing sales through acquisitions and driving the overall marketing and business-to-business development strategy. Renae has more than 15 years of managerial experience in strategic sales and marketing, with eight years of global responsibility. Juliette oversees brand and marketing initiatives, and is responsible for the Milestone Systems website, video, graphics and collateral teams.

Panelists will share tips, tactics, and resources with the audience and participate in a question and answer session.

And speaking of the WSC, make sure to stop by the WSC cocktail reception at the Pinot Brasserie at the Venetian on Tuesday night, March 27, between 6 and 9. Winners of the first annual WSC Women of the Year awards will be announced.

Questions about the WSC? Email Rhianna Daniels at rdaniels@compasspublicrelations.com

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by: Martha Entwistle - Wednesday, March 21, 2012

March Networks, provider of intelligent IP video solutions, announced yesterday that its shareholders approved the sale of the company to Infinova. The $88 million deal, announced in December
may close as soon as next week and before the end of April, according to a statement from March.

March is awaiting a "final order"  from the Ontario Superior Court of Justice. The hearing is scheduled for this Friday.

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