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Shaw joins Tech Systems Inc

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Wednesday, October 30, 2013

Sharon Shaw, who is well known in the security industry as an evangelist of managed services, a skilled trainer and director of education, has taken on a new role at Tech Systems Inc, an Atlanta-based systems integrator.

Shaw was formerly president of Integrator Support, and director of education for PSA Security. (She's also part of my TechSec Advisory board. )

Here's a link to a story I wrote about Tech Systems Inc. in January. TSI appears to be a great fit for Shaw's skills. She told me she was drawn to the company's "service-centric culture." The services piece—managed as well as services in general—is something Shaw knows well. And it's not an overstatement to say that TSI is big into service. When I did that story in January, Larry Simmons, TSI VP of client services, told me that if a customer is not interested in “a strong service offering, we don’t waste resources [on that job].” As a result, TSI in January was “very close to achieving our goal of being able to cover 100 percent of our operating costs [with] recurring revenue."

AT TSI, If service techs want to leave a job site without completing a service call for any reason, the request must be approved by a regional manager, a director, and ultimately by the CEO or Simmons before that tech may leave the job without finishing. TSI’s service program is called FOCUS, and the company reports some impressive results. “In 2012, TSI responded to 16,467 FOCUS-related service calls. We only failed to either achieve response time or functionality 30 times, giving TSI a 99.99 percent success rate. Our success rate has not dropped below 99.7 percent over the past three years,” Simmons said.

In her new role as Client Development Manager, Shaw will develop continuing education programs for Tech Systems’ customers and staff.  The idea is to have a “quality communications programs and [see that there’s] a continuing stream of relevant information so everyone is informed and when they’re making decisions, they have the best tools and resources available to them,” she told me.

Tech Systems has 164 employees across the country. Headquartered here, it has other brick-and-mortar offices in North Carolina and California. Employees elsewhere work from virtual offices.

Congratulations to Shaw, and kudos to TSI for a smart hire.

 

 

 

 

SAFE Security acquires thousands in accounts, RMR

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Wednesday, October 30, 2013

The good news keeps on coming from SAFE Security. I just wrote recently how the San Ramon, Calif.-based company—celebrating its silver anniversary this year—has doubled in size. Now, SAFE has announced this week that it has acquired more than 16,000 accounts, representing $650,000 in RMR.

The new accounts are CastleRock Security residential and commercial alarm monitoring subscriber accounts.

“These accounts fit very nicely into our U.S. and Canada footprint,” Paul Sargenti, SAFE president, CEO and founder, said in a prepared statement in an Oct. 29 news release. “With this acquisition we have more than doubled our account base since 2012. We are well equipped to assimilate them and look forward to providing the highest standard in security services to these new subscribers.”

Sargenti added, “SAFE is firmly positioned as a full service alarm company and this purchase complements our other growing revenue channels.”

The company says it also is seeing strong organic growth from its dealer program, SAFE Dealer Network.

Ascent Capital's largest stockholder sells half of his preferred shares

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Wednesday, October 30, 2013

Some intriguing financial news out of the Monitronics/Ascent Capital camp. Ascent Capital Group’s largest direct stockholder, media mogul John Malone, recently sold half his preferred shares—worth $32.7 million in cash—back to the company, according to a news release from Ascent Capital. The divestment comes nearly three years after Ascent acquired Monitronics in a $1.2 billion deal.

Malone, who sold 351,734 shares, now owns the same number of Series B shares, plus 198,540 Series A shares, which together comprise 21.6 percent of the Ascent shareholder vote, the release noted.

In an email exchange, Henry Edmonds, president of The Edmonds Group, a St. Louis-based investment bank, indicated that the move would likely please shareholders. "Ascent has had plenty of cash on its balance sheet so this is not a bad use of funds to help stock price," he said.

It will be interesting to see what (if any) effect this has on operations at Monitronics, a wholly owned operating subsidiary of Ascent. An investor I contacted seemed to believe it would not have much effect. Yesterday, the company announced that it will report its earnings on Nov. 12, 2013. On that date, the company will host a conference call in which management will give an update on Ascent’s operations, including the financial performance of Monitronics, and “may also discuss future opportunities,” the release said.

In all likelihood I’ll be dialing into that conference call, which I’m hoping will shed some light on what those opportunities might be. 

New role for Jay Hauhn

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Wednesday, October 23, 2013

Jay Hauhn, chief technology officer and VP of industry relations at Tyco Integrated Security, has been named president of CSAA. The announcement was made at the organization’s recent annual meeting in Quebec City. Hauhn, who most recently served as vice president for the organization, assumes the role held by Robert Bean, whose term expires this year.

Hauhn is actively involved in several industry organizations. Since 2011, he has served as chairman of the board at The Security Industry Association, a role in which he has executive responsibility for all interaction with industry associations, regulatory agencies and state and federal governments. His current term as Chairman of the Board at SIA ends this year.

Hauhn also sits on the board of directors at the Security Industry Alarm Coalition, and he is chairman of the Electronic Security Association’s government relations committee.  

I’m scheduled to speak with Hauhn later this week about his expanded role at CSAA. In that interview, I’ll discuss some of Hauhn’s short- and long-term ambitions as the newly minted leader of the organization.

Intel invests $15m in Prism SkyLabs

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Wednesday, October 23, 2013

Prism Skylabs, a two-year-old startup founded by Ron Palmeri and 3VR’s Steve Russell today announced a $15 million Series B funding round led by Intel Capital, Intel Corporations’ investment and M&A business. The round included investments from Presidio Ventures, Triangle Peak, Data Collective, Expa, and some existing investors, Russell told me.

Prism Skylab is a cloud service that transforms any video camera “into visual merchandising, auditing and business intelligence tool that can be accessed in real time from any device.”

“On the business side, it’s hard to overstate the value of having [an investor] like Intel for a company like Prism,” Russell said.

The funding round was announced today in San Diego at the 14th Annual Intel Capital Global Summit where Intel awarded a total of $65 million in funding to 16 companies.

“At this conference we are able to look at how Prism might integrate with next-gen mobile devices [as well as the possibilities, for example, of using] new techniques in a data center that will allow us to increase our performance over 100-fold.”  

“The core of our business is the R&D and product work we do, and we’ll continue to invest in that,” Russell said, but the bulk of the funds from this round will be used for sales and marketing.

Since its launch, Prism has “brought on a host of interesting first customers, the new challenge for the business is to continue to serve the large customers we’ve won already and to build out our sales and marketing team to expand [the customer base] even further.”

Prism SkyLabs has “well north of 50 customers” that include Fortune 500 companies and well-known brands that fall into the category of “large distributed retail companies.”

“We solve one or two important problems for them,” Russell said. “We provide a set of data and instruments in the real world that heretofore you could only get for online properties. … The other value we provide is allowing global brands to peek in and better manage their stores,” he added.

“It’s the analytic and visual [capabilities] that are really the secret sauce,” he said.

Prism now has about 30 employees and Russell expects to double the size of the company within the next 12 months.

Prism raised $7.5 million in funding in October 2012.

“Intel Capital has long been known as a hands-on investor,” Russell said. Among the ways the investor will assist Prism include “providing networking and matchmaking [among] its truly vast portfolio [of partners].”

The Intel Summit “[has] been an incredibly productive and fun three days for us,” he said.

Former security industry investors reunited—in prison

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Tuesday, October 22, 2013

Timothy McGinn and David L. Smith, former partners in the Albany, N.Y.-based brokerage firm of McGinn, Smith & Co., which conducted dealings in the alarm industry, will serve out their fraud sentences in the same penitentiary, according to a recent Albany Business Review report.

I wrote here in August about their sentencing, after the two were convicted earlier this year of fraud, conspiracy and tax evasion in a Ponzi-like scheme that caused investors to lose millions. A judge called 65-year-old McGinn “arrogant” and sentenced him to 15 years in prison. Smith, 68, convicted of fewer counts than McGinn, received a 10-year sentence.

Now, the Albany Business Review reports, the two are both in the same prison in Brooklyn, N.Y. Here’s more from the Oct. 17 article:

The federal Bureau of Prisons says both men are now at the Metropolitan Detention Center, in Brooklyn.

Prosecutors say as many as 900 investors lost money. …

Attorneys for McGinn and Smith originally believed the two would wind up in different prisons. Smith had requested to remain fairly close to his family, who live in Saratoga Springs.

Attorneys say that McGinn, meanwhile, needs special medical attention for his diabetes, and residual concerns resulting from a heart attack in 2010, months after the FBI and IRS and the Securities and Exchange Commission began probing the McGinn-Smith operations.

The two pleaded not guilty to the charges they faced, and maintained their innocence when testifying at trial. They are preparing an appeal, which may not be heard for several years.
 

 

 

Honeywell: You’re not too small to be an integrator

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Wednesday, October 16, 2013

A recent post on Honeywell’s The Security Channel blog caught my eye because it refutes the notion that only large companies can reap the benefits of being integrators. That’s not the case, says Jason Lutz, business development manager, First Alert Professional and CSS, in his post this week titled “Simple Integrations Can Lead to Increased RMR.”

Here’s what he says in his intriguing intro: “There are few things that can make some dealers cringe more than when I begin to talk about integrating systems. Many dealers think they are too small to do integrated systems or that integrating systems can be too complicated or even that there isn’t enough Recurring Monthly Revenue (RMR) and therefore it’s not worth the hassle. Before I go further, let’s clarify what an integrated system is and how much money you are leaving on the table by not offering it.”

He goes on to explain that “an integrated system can be as simple as two separate systems working together to satisfy a client’s need.”

Then he asks: “Are your current or potential clients expressing needs like these?
*Can you set up my cameras to only record when my system is armed?
*Can you make the cameras record only when I have an alarm?
*Can you let me know when my DVR has a loss of video, loses its connection to the Internet or the hard drive has reached full capacity?”

Lutz goes on to explain how even a small security provider can answer such needs—benefiting both clients and the provider. Check out his post.
 

Women in Security: 2013 Special Report

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Wednesday, October 16, 2013

The editorial mission of Security Systems News is distinct from other publications in the security industry. We focus on breaking business news (as opposed to products, how-to information or case studies). More specifically, we focus on writing stories that will help our readers make good decisions about their businesses.

In our November issue, we will dedicate one story in each section of our publication—Commercial and Systems Integration; Fire Installation; Monitoring; Residential; and Suppliers—to a woman leader in security. In addition, two women leaders—a consultant and a legislative expert—are profiled in our General News section. Those profiles will also be online this week.

This year, we interviewed Terry Basford of 4b Technology, Elizabeth Hunger of SIA, Karen Head of Kratos PSS, Jennifer Jezek of York Electronic Systems, Betsy Francis of AT&T, Elle Daley of COPS Monitoring and Deb Spitler of HID.

It’s our annual Women in Security special report. This is the fifth year in row that we’ve compiled this report. We don’t go through a formal nominating process, so this is not a vote-driven selection. Rather, we ask our readers to send in nominations and then Tess, Leif and I decide who we’d like to profile.
 
I’m happy to tell you that we get more and more nominations every year. It seems like it’s not as difficult to find women leaders in all sectors of security as it was five years ago. The women who were nominated but were not chosen this year will, in many cases, be interviewed for SSN news articles in the future.

While the women profiled all have unique stories, there’s one noticeable common thread. They love their work and they’re making a difference in their respective workplaces. That’s the good news.

The not-so-good news is that we still hear about how women are “tested” in the boardroom or field because men assume they don’t understand technology, and we still see a paucity of women in the industry—across all sectors.

Read through the profiles in our Women in Security special report and you’ll notice how well this special report aligns with Security Systems News’ editorial goal of helping you make good decisions about your business.

There are plenty of studies that show that there's a correlation between the presence of women in a company's boardroom and profitability. Time after time, studies reveal that companies that have a higher percentage of women executives also have higher corporate profitability on average. Period. Here’s a good story about those studies.

Of course, it’s difficult to prove causation—to show that the reason one company is profitable is because it hires more women executives.

However, ponder that correlation as you read through this year’s profiles. We believe this industry can use more people like HID’s Deb Spitler, Kratos’ Karen Head and the others profiled here.

Hiring smart, ambitious people is a good business move. Making the extra effort to hire a few smart, ambitious women, may prove to be an even better move for your business.

SecureNet launches cloud-based platform

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Wednesday, October 16, 2013

A few developments surfaced today out of the SecureNet Technologies camp. The Longwood, Fla.-based company, which provides video monitoring services and interactive home features, announced the launch of the SecureNet platform, a system that gives alarm providers a cloud-based management service.

The system is designed to increase the speed of alarm responses while improving their accuracy by eliminating errors caused by traditional notes-based dispatching systems, the company noted in a news release.

As we continue to see, there are several benefits for central stations who deploy a cloud-based platform. First off, it improves redundancy in the event of outages or natural disasters. It also reduces the man hours required for continual technological upgrades. Interestingly enough, while SecureNet’s platform is clearly moving with the hosted solution wave, it is also offered as a traditional on-site service.

The other piece of news, less of a strictly monitoring nature, is that SecureNet has joined the Z-Wave Alliance, a group of technology companies that design wireless home control products based on the Z-wave wireless communications standard.

SecureNet’s Interactive Gateway Modules, a line of hardware devices that integrate with the with alarm panels, is designed primarily for its adaptability to home management services. The devices use Z-wave technology to control and communicate with interactive video monitoring, access controls, as well as an array of home automation features.

In the coming days I’ll be following up with SecureNet to get a closer view of these latest developments.  

DIY home security goes to the next level at Costco

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Wednesday, October 9, 2013

I’ve written before about how telecoms, cablecos and professional security companies, large and small, are now selling their security/home automation products in a retail environment. Those companies include Comcast, Verizon Wireless, Security Options, The Alarm Company and SecureWatch 24. Now add Link Home Security to the list.

Link, which bills itself as “the leader in do-it-yourself (DIY) wireless security systems,” is now offering a DIY home security/energy/video surveillance package through Costco, the national online retailer. It’s a deluxe package with all the desirable home automation features homeowners have been hearing about—and it includes professional monitoring.

Ogden, Utah-based Link describes its Premium Plus Video Package by saying to customers it “puts you in control of your security, home automation and remote video monitoring and gives you the convenience of premium 'advanced interactive' services managed from your smartphone or secure internet login. The cellular, color touch screen panel does not require a phone line and is Z-Wave(R) enabled—allowing you to add security, safety, energy management and camera components to your system at any time.”

Link said it is offering monitoring for $34.99, which “ includes remote video monitoring and recording plus services like fire monitoring and remote accessibility that you won't find anywhere else. Z-Wave operability is no additional cost. … Cellular signal and 2-way voice communication in emergencies is included as part of the service.”

It said other features of the premium service will allow customers “to augment your existing smoke detectors with a 3-in-1 smoke/heat/freeze sensor (included) that is continually monitored by our UL Listed and 5-Diamond rated central station. The door/window and motion sensors come custom-programmed with the locations you specify, such as "Front Door" or "Master Bedroom Window". Our Z-Wave programmable thermostat (included) offers a “Smart Schedule” that utilizes the other components in your system to recognize activity and usage in the home or business and recommend energy saving HVAC schedules. The two Z-Wave LDM Light/Appliance Modules (included) plug into a standard outlet to control lighting and small appliances. Both the thermostat and light/appliance modules are remotely accessible from a smartphone or secure internet connection so lighting and temperature can be adjusted while away. The HD100 Indoor Camera (included) is easy to install and gives you the peace of mind of being able to keep an eye on the activity in your home or office, observe a live feed in case of an alarm event, or review past video footage at your convenience. The HD100 delivers a high resolution video with infrared “night vision” capability.”

This offering clearly shows that DIY is going beyond simple to incorporate the next level of technology.
 

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