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Cisco vet to head mesh network provider Firetide

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Monday, May 20, 2013

Wireless mesh network provider Firetide today named John McCool as its CEO. McCool comes to Firetide from Cisco, where he worked for 17 years. Most recently he was CTO and SVP of Cisco’s Global Enterprise Segment where he “led the “borderless networks initiative, which accounted for one-third of Cisco’s $46 billion sales in 2012,” according to a statement from Firetide.

“John understands how to build and scale a global business, and he brings a dynamic blend of management experience and technology depth. We are delighted to have John lead Firetide as we enter this period of expanding market opportunity and business growth,” Andy Ludwick, a Firetide board member, said in a prepared statement. Firetide is based in Los Gatos, California.

McCool will join the Firetide board of directors, which includes H. DuBose Montgomery, founder of Menlo Ventures; Duane Zitzner, former EVP of the Personal Systems Group at Hewlett Packard; Andy Ludwick, co-founder of SynOptics and former CEO of Bay Networks; Bo Hedfords, former EVP of Motorola and president of its global wireless infrastructure business; and Christopher Smith, director with Coral Group, a venture investment group.

Enhanced call verification now law in Georgia

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Wednesday, May 15, 2013

“It’s a good day in Georgia.”

That was the reaction from John Loud, president of the Georgia Electronic Life Safety & Systems Association, after Gov. Nathan Deal signed enhanced call verification into law on May 6. GELSSA, with an assist from the Security Industry Alarm Coalition, had been pushing for ECV for years and finally saw it brought to fruition with House Bill 59.

It wasn’t an easy process. As HB 687, the initiative made it through the Georgia House last year and through state Senate committees, but the legislative session ended before the bill could be brought to a vote on the Senate floor, Loud said. Then, HB 59 had to overcome resistance from those questioning the need for ECV.

“Some of the legislators were asking us, ‘Well, if it’s so great, why don’t you guys do it on your own? Why do you have to make it a law?” Loud said.

The explanation comes down to competition, with some alarm companies in pockets of Georgia using ECV—or lack thereof—to their advantage while ignoring the problem of false dispatches.

“They tell customers, ‘We only have to make one call [for police dispatch],’ so people would go against alarm companies that are doing ECV—‘You don’t want to monitor with them, they have to make two calls,’” Loud said. “And now this kind of equalizes it across the board. It’s right for the industry, it’s right for municipalities and it’s certainly right from the taxpayers’ standpoint.”

Law enforcement worked closely with GELSSA on the initiative, with the Georgia Association of Chiefs of Police endorsing ECV. Loud said there were a few initial concerns from the state Fire Marshal’s Office, “but once they understood that this is not about fire, they came on board and supported us right away.” ECV will not be required in the case of a fire alarm, panic alarm or robbery-in-progress alarm, according to the statute.

Loud said success also hinged on “getting the right folks to adopt and carry the bill forward for us.” The legislation was sponsored by state Republican Reps. Tom Taylor, Kevin Cooke and Lynne Riley.

SIAC Director Ron Walters said Georgia is the fifth state to legislate ECV, joining Delaware, Virginia, Tennessee and Florida. The law goes into effect on July 1.
 

NorthStar Alarm partners with Goldman Sachs; gets up to $40m cash infusion

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Wednesday, May 15, 2013

NorthStar Alarm Services is recapitalizing with a group of new investors including Goldman Sachs and The Beekman Group, and also has expanded its credit facility to $40 million with Bank of America and Zions Bank, the Orem, Utah-based company announced today. The deal, which was six months in the making, is great for NorthStar and is another indication that Goldman likes the security space.

In a communication to employees, company president Jason Christensen said, “We believe that this is an ideal partnership, with Goldman’s previous success and experience in the alarm industry and Beekman’s proven track record of developing a culture of excellence within its management teams. This partnership will also provide NorthStar with even more capital flexibility to support our projected growth as well as additional industry expertise and resources that will enable the company to continue its path of excellence within this industry. … The future of NorthStar is brighter than ever!”

Founded in 2000, NorthStar provides home security/ home automation services in 18 states across the nation. The company said it has grown by more than 30 percent each year over the past six years and its RMR currently exceeds $1 million.

Goldman’s specialty lending group has indicated in the past it likes the security space. Companies it previously has lent to include ASG Security and Vivint—until the Blackstone group acquired Vivint last year for more than $2 billion.

The Beekman Group is a leading private equity firm dedicated to bringing financial and operational resources to lower middle-market companies.

John Troiano, managing partner at Beekman, said in a statement: “This is an impressive company with a talented management team and a well-defined culture built on the core values of integrity, accountability and service.  We are excited to partner with NorthStar during its next phase of growth and development.”

I’m hoping to learn more about what the new partnership means for NorthStar, Goldman and The Beekman Group. Stay posted!

Former Honeywell chairman invests in Maryland company

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Wednesday, May 15, 2013

View Systems, Inc., a manufacture and installer of weapons detection identification systems, video management platforms and tele-data communication networks based in Baltimore, announced May 15 that Leo A. Guthart has purchased shares from View Systems that “will allow View Systems to accelerate its sales efforts and provide funds for new product development.”

View Systems’ target vertical markets are: correctional facilities, schools, courthouses, government agencies, event and sports venues, and commercial businesses.

A security industry veteran, Guthart is the former CEO of Pittway Corp. and former chairman of Honeywell’s Fire & Security group. He now runs Topspin Partners, a VC fund, as well as Topspin Partners LBO, a buyout fund.

Guthart serves as chairman of Security First Corp., a developer of integrated security cryptographic chip solutions.

“Leo Guthart is an icon in the security industry. We are delighted that he has chosen to assist and give direction to our existing business and technology. He will evaluate and present various opportunities and alternatives. His knowledge and expertise will propel us to the next level of success. View’s strategy to acquire and merge with other companies and products is greatly enhanced. We are confident that, with Leo Guthart’s guidance, we can finance our growth and enhance shareholder value,” Martin Maassen, chairman of View Systems, said in a prepared statement.

Qolsys launches Founders Program

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Monday, May 13, 2013

Qolsys, a new home security/automation manufacturer that launched at ISC West last month is now creatiing its "Founders Program," according to Ken Arnold. I expect to learn more about the program this week,  but Ken Arnold told me it'll be the basis of the start-up's dealer program.

At this point, Qolsys has "50 to 70 dealers" that it's shipping panels to for beta testing. Shipping for sale starts soon, he said.

America’s worst neighborhoods and the push for more security

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Wednesday, May 8, 2013

For residents of the 25 most dangerous neighborhoods in America, terrorism probably doesn’t top their list of concerns. But with video surveillance in the spotlight after the Boston bombing, those cities now have a chance to take advantage of the attack in the name of safety.

The danger list, presented last week by the research website Neighborhood Scout, includes the usual suspects. Detroit, Chicago and Flint, Mich., all made the lineup, with Detroit taking the top three spots based on the predicted number of violent crimes per 1,000 neighborhood residents.

No surprise there. What is surprising is the number of smaller cities that are cited, places that aren’t typically associated with murder, rape, armed robbery and aggravated assault. A neighborhood in Greenville, S.C., comes in at No. 8, Indianapolis shows up twice, and even Nashville takes a hit—residents of the Eighth Avenue South/Wedgewood Avenue area have a 1-in-14 chance of being a victim of violent crime in any given year.

"So many people think, well, I live in a medium city so it can't be that bad, not like big cities like New York or Los Angeles," Andrew Schiller, the founder of Neighborhood Scout, told The Huffington Post. "But those cities aren't that dangerous overall—of course they have dangerous neighborhoods—but they aren't nearly as dangerous as places like Indianapolis."

Schiller’s contention is backed by FBI data from more than 17,000 local law enforcement agencies, making it tough to dispute. For the cities on the list, it can only be seen as a black eye. But for those who see better security through video surveillance, it’s an opportunity to add to a growing chorus in the wake of the Boston bombing.

In the past three weeks, there has been an official push for more video cameras—and for greater integration of surveillance systems—in cities including Philadelphia, Houston and Los Angeles. The successful use of video in identifying the suspects in Boston has tempered criticism of the cost and given rise to discussion of public and private partnerships to share video data.

"If [a company has] a camera that films an area we're interested in, then why put up a separate camera?" said Dennis Storemski, director of Houston’s office of public safety and homeland security, in an interview with The Associated Press. "And we allow them to use ours too."

That kind of cooperation holds promise for cutting crime and increasing arrests, but only if the network is properly set up, integrated and monitored. Success will also hinge on addressing privacy concerns and fears that freedom will fall prey to technology run amok, especially if the surveillance extends beyond city centers and into residential areas like those cited by Neighborhood Scout.

 “Look, we don't want an occupied state. We want to be able to walk the good balance between freedom and security," Deputy Chief Michael Downing of the Los Angeles police told The Associated Press. "If this helps prevent [and] deter but also detect … who did [a crime], I guess the question is can the American public tolerate that type of security.”

Right now the smart money is on “yes.”

Home automation a perfect fit on Mother’s Day?

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Wednesday, May 8, 2013

Flowers, breakfast in bed … and a security system?

In the past, that third item may not have come to mind as a way to make life easier and more enjoyable for Mom on Mother’s Day, but home automation may be changing that—or so a creative new marketing campaign from Vivint underscores.

A news release from that Provo, Utah-based home automation/home security company just in time for Mother’s Day points out that new home automation features can help make life easier for today’s hard-working moms.

The release is headlined: “Vivint home automation makes the perfect Mother's Day gift for busy moms.”

And this is how it continues:

As Mother's Day approaches, grateful children and husbands everywhere are looking for the perfect gift for Mom. For a busy mother looking for something to simplify her life, a new home automation system from Vivint, the largest home automation provider in North America, is the perfect fit.”

Wherever Mom is—at work, home, the grocery store, or traveling—she can check in at home using her smartphone, laptop, or computer. And whether she's a stay-at-home mom, a working mom, or a combination of both, she can use Vivint to watch live video of what's happening at home, arm or disarm the security system, get text notifications when the kids get home from school, and adjust the thermostat. All Vivint products work remotely with any web-enabled device, so moms on-the-go can always stay connected to their homes and families.

 

The "haves and have-nots of security integration companies"

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Wednesday, May 8, 2013

PSA TEC is in full swing. The action started on Sunday night, but I arrived late on Monday. Yesterday I spent the day (Tuesday) talking to PSA Security integrators and members and attending four different educational sessions.

I attended the State of the Industry panel, moderated by PSA Security CEO Bill Bozeman and featuring a large group of integrators and industry experts; a discussion on Big Data, Business Resiliency and Physical Security moderated by Chris Peckham of Kratos; a session on security finance moderated by Bozeman; and a session on how to adopt managed services, moderated by Sharon Shaw, of Integrators Support.

These folks covered a lot of ground. I’ll be writing more in-depth stories on some of the topics covered, but below are some highlights from the day.

Haves and have-nots

Bozeman started the first session of the day quoting Imperial Capital’s Jeff Kessler, who in a recent report wrote that increasingly the world of systems integration is dominated by the "haves" and the "have-nots." The "have" have an RMR base, are making a good margin on jobs, and are profitable. The have-nots have not moved into managed services and are surviving on installation revenue. Bozeman agreed with Kessler, recommended all read his report, and spent a great deal of time in this session and others talking about how all PSA Security integrators can join the "haves."

Know your verticals
Phil Aronson of Aronson Security Group, Ron Oetjen of Intelligent Access, and Eric Yunag of Dakota Security all said “deep focus” on your vertical markets is key. Yunag, whose Dakota Security is growing rapidly, said that his company made a strategic misstep 7 or 8 years ago when it decided to expand outside of the financial vertical. Banks are something that Dakota had grown to know very very well. The mistake the company made was not the fact that it expanded outside of that vertical, but it did so without the focus and understanding of other verticals.

The message from integrators on the panel was this: Focusing on different verticals is good, but get to know them. And don't delve into too many. How many verticals should an independent integrator focus on? Three, most agreed.

Mad about channel conflict? Look within
Another topic that came up was the problem of channel conflict and manufacturers going direct to end users. Jim Henry of Kratos, said it’s important for systems integrators to remember that manufacturers who go direct to end users fail. However, he noted, “it’s important that and end user sees you as a value, not a middleman making a margin.” Yunag added that if an end user is going direct in your coverage area “that’s your failure as a systems integrator.” You need to know what’s happening in your region, and if this kind of stuff happens take a look at your own organization.

Government Opportunity
Don Erickson, CEO of SIA, was banging the drum about the opportunity for integrators who want to do business with the federal government. Despite sequestration and budget problems, money is in the pipeline for K-12 projects, ports, transportation. “Consider the GSA Schedule program, it’s a very effective contract vehicle for doing business with the federal government.”

How to build an effective business?
During the State of the Industry, Ron Oetjen of Intelligent Access Systems broke it down this way: hire the right people and focus on your strategic plan.  Later, during a finance educational session that got pretty granular about how to make your business attractive to buyers, Kratos’ Jim Henry said that the businesses that he’s attracted to are the ones that are not for sale, the ones with a “clear vision and a mission.”

Boston bombing and video surveillance
In the aftermath of the Newtown gun massacre and the Boston Marathon bombing, Yunag said that now is a “significant watershed for our industry and the services we provide … in the next five to ten years, the way video surveillance is used will change,” he predicted.  The general public has seen, particularly with Boston, how video surveillance can be useful. Jim Henry said that the incident clearly demonstrated how video can be used for “actionable intelligence and business intelligence.” Further, he said, it's important to note that the ability to find the suspect was not because the camera in question was a certain quality or manufacturer,  but because it was a “well positioned camera installed by a professional.” This horrific event showed the world how video can be used, Yunag said, and it's incumbent on integrators now to have those conversations with law enforcement and others about how they can best take advantage of video and other physical security offerings to help prevent and detect situations like these.

There are many more highlights that I’ll report on later, now I need to get to the conference.

Marathon security after Boston

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Wednesday, May 1, 2013

After the bombing at the Boston Marathon on April 15, I began wondering what the security would be like at the April 28 Big Sur Marathon.

I ran (OK I jogged, maybe even walked a little) this spectacular course that runs along Highway 1 in California in 2011 and did the same on Sunday. I was curious to see if there would be a more noticeable security presence at the event this year.

There were a few stories published before the race. In an interview with the Santa Cruz Sentinel, Michael Klein, who oversees security for the event, declined to talk specifics, but he was quoted as saying there would be “tons more resources” this year compared to past years.

He said entities involved in security for the event included: California Highway Patrol, California Emergency Management Agency, Cal Fire, Monterey County Sheriff's Office, Monterey Police Department, Sand City Police Department and the Monterey Regional Airport Fire Department. All will be coordinated into an incident command system that will be based on training models used by he federal government for mass casualty disaster response.”

Another story from Active.com about post-Boston marathon safety reported that the Boston Marathon has been a pilot project of sorts for “emergency action techniques” a communication system and protocol called Next-Generation Incident Command System (NICS). The Boston Athletic Association coordinated with the Massachusetts Emergency Management Agency, the National Guard and other local authorities to implement NICS.  

From that story:
“In 2008, Boston Emergency Medical Service Chief Richard Serino told the Boston Globe that they approached events like the marathon as, "planned disasters." He went on to state that such circumstances presented, "an opportunity to test some things you would never want to test in a real disaster."
It just turned out that, this year, the disaster occurred during the marathon.”

In the Santa Cruz article, Michael Klein says points out that the Boston and Big Sur marathon locations are completely different. Managing threat in a crowded city involves different techniques than managing threats along a difficult-to-access highway that has hills on one side and the ocean on the other.

While terrorism may not have been top-of-mind for Big Sur marathon organizers in the past, the possibility of mass casualties that could result from a natural disaster have been, according to Klein. Along the California Coast, earthquakes and landslides are common and occur without notice.

In fact, as the result of a landslide in the winter of 2011 that left part of Highway 1 impassable, the Big Sur race course had to be changed from the usual Big Sur to Monterey point-to-point race to an out-and-back course that started and ended in Monterey.

So, what was Big Sur like? I have no doubt there were more security measures in place, but it wasn’t very noticeable.  Maybe there were a few more police vehicles around, perhaps certain protocol—like maybe tickets to get on buses to the race start (at 3:30 a.m.!)—were checked a little more thoroughly by than in the past, but it wasn’t obvious or restrictive feeling.

The event is really well organized, and as any security director or integrator will tell you, you need policy and protocol in place to make even the best security system work effectively.

More than 4,000 people run the marathon and 6,000 others do races of shorter distances or the relay. That’s a lot of people along the 26-mile stretch of highway.

It takes 200 buses to move people to the start line and various staging points for the relay and other races. The event is manned by 2,500 volunteers who cheerfully transport, feed, direct and assist the runners.

So, I didn’t see more cameras or armored vehicles or obviously restricted access to different venues at the marathon.

What I did notice was a lot of talk about security and the Boston bombing. Ron Kramer, the Boston Marathon event director spoke to the crowd at the starting line.

Many incredible athletes run Boston and Big Sur every year, but this year nearly 400 people did both.  More than ever before.

From a participant’s point of view, the Big Sur Marathon went off without incident. The landscape was as stunning as ever, the hills as beastly as before. There was definitely a new awareness of security among the crowd, (and certainly on the part of the organizers.) but it didn’t lessen the experience for me.  On the contrary, it made me appreciate even more how very well organized this event really is.

Legal pot hot new security market—but ADT declines to partake

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Wednesday, May 1, 2013

Voters in Washington State and Colorado last fall legalized the recreational use of marijuana—and created a new demand for security, with pot warehouses and stores in those states anxious to protect their valuable stash. However, according to a report from CNNMoney this week, the fact that pot sales are still illegal under federal law is creating some security hassles.

Not only is ADT refusing to provide security services to such businesses, citing federal law, but other security companies that do want to partake are finding it hard to get loans from banks, which are experiencing federal pressure, the report said.

That comes amidst a growing demand for security from pot dispensaries and warehouses, the report said. It said they’re targets because a pound of marijuana sells for $2,000 wholesale and—with pot sales illegal under federal law—business owners prefer transactions in cash.

“A robber who swipes the jars on display alone could make away with $20,000 of product, plus whatever stacks of bills are behind the counter,” the report said. As a consequence, it said, “a typical store has more than a dozen cameras, motion detectors, infrared sensors and flood lights. Some even line the ceilings with tripwire to avoid rooftop burglars sawing their way in.”

However, CNNMoney added, “some store owners who use ADT, the nation's largest security provider, say the company has dropped them in recent months.

Sarah Cohn, ADT director of media relations, told me, "ADT has made a policy decision not to sell security services to businesses engaged in the marijuana industry because it is still illegal under federal law."
 
But other security companies are stoked about protecting newly legitimate pot businesses, the report said. “The security needs create an opportunity for startups like Canna Security, a Colorado company currently expanding to Washington,” CNNMoney said.

Canna Security’s founder, Daniel Williams, told CNNMoney that footage from video security cameras shows that robbers targeting pot growers and stores sometimes rely on far-out methods.

He said footage included video of teenagers ramming an Audi through the door of a pot warehouse and a “cat burglar” who cut a hole in a warehouse roof to rappel down to the green loot. The robbers were foiled in both cases.

CNNMoney said the security demand is so great that Williams’ “employees are working 12-hour shifts every day, installing cameras and alarm systems across both states.”

His only problem is that his bank recently denied him a credit line to finance his company’s growth, even though it accepted his cash deposits, the report said.

“It gets frustrating when I get a whole new channel of business and funding isn't there to adjust to it,” Williams told CNNMoney.

 

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