a&s International Jan. 2012 (Trial Version)

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WEBGATE Div.

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14 JAN 201222 www.asmag.com 22

Business Talk

Jan 2012

news FeaTure

28 Financial Trouble Ahead?ViewpoinT

30 Video Surveillance Trends for 2012

producT exploraTion

58

30

44

Whereas previous generations purchased out of necessity, new breeds of consumers purchase out of desire and temptation. Print, television, multimedia, websites, mobile — advertisements are everywhere. As security marketing is increasingly seen in Hollywood or Hollywood-ish productions, a&s takes a look at the phenomenon.

Shine in Low LightMaking

Megapixel CamerasThe migration to IP surveillance is driven by megapixel cameras. However, low-light performance remains an unknown, as smaller and less light-sensitive pixels are crowded onto an image sensor. a&s finds out whether megapixel cameras are ready for nighttime surveillance, compared to analog models, and how components affect performance.

50 Shedding Light on Lux Ratings 54 Product Showcase

Say Hello to Security in Hollywood Productions

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Vertical Market

Special Feature

14 Contents 18 Editor’s Note 20 Corporate News 20 Market Observer

92 Show Calendar 94 New Products 100 Companies in This Issue

Jan 2012

44

What is all the fuss about corporate social responsibility (CSR)? Isn’t it enough for security solution providers to make security products and deliver services? Not anymore. CSR is a global phenomenon that security players should be aware of.

Beyond Your Bottom Line

38

Education Heightens Security Awareness 66

72 Campus Networks Power IP Uptake 76 Learning to Do More With Less: Adapting Campus Security for Lean Times 82 Keeping Schools Safe and Secure

Colleges and universities grant the freedom of advanced learning and the pursuit of knowledge. More open spaces and a more dynamic population make campus safety a complex task.

Corporate Social Responsibility:

adVertorial

88 Note of Appreciation90 Thrive in 2012: Thailand and Vietnam Gearing

Up For Fast Growth

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Happy New Year!

Thank you for your continued support of our editorial efforts over the last year, and we shall continue to serve you with the latest from the physical, electronic security industry and markets worldwide. If you have any comments or suggestions, please feel free to get in touch with us anytime. Our contact details can be found in the margin on the right.

The security industry usually finds itself at a crossroads when market forecasts of the world’s major economies become murky, given how closely investments in government and large-scale projects are interconnected. Manufacturers and solution providers become uncertain as to where to go in terms of product and market development: IP HD or HD-SDI, hardware or software, sophisticated or simple, high-end or entry-level, mature markets or developing economies. Some would end up splitting the wager among different product lines and standards, without the financial backing of that of the Tycos and UTCs, as they are concerned about losing market share (or worse, going bust) should one product feature or standard prevail. The same level of uncertainty, as to where growth might come from, can also be palpated in the sales and marketing community.

Clearly, this more or less conservative industry needs more dialog among the friends and foes, in different geographical/vertical markets and in the trade press, to get a clearer picture of what the real, current market needs are more quickly and to better facilitate convergence and differentiation. Look at the dwindling sales of iPhones in Western Europe — those who refuse to adapt to macroeconomic conditions or diversify their solutions and geographical/vertical market segments will find it increasingly challenging to stay afloat in security. At the end of the day, reliability is required of all security solutions, and resilience of the industry.

Our cover story this month focuses on the round-the-clock performance of megapixel solutions, dissecting component advances and hands-on price and performance benchmarks for low-light network cameras when pitted against analog alternatives. Vertical Market discusses emerging solution needs and real-life practices for securing and protecting postsecondary institutions in different parts of the world, highlighting added, nonsecurity benefits and usage scenarios. Also in this issue are Viewpoint on 2012 forecasts, Special Feature on corporate social responsibility initiatives by security companies, and Business Talk on the “rights and wrongs” of Hollywood-ish marketing in security. Enjoy!

Hayden [email protected]

Building on Resilience

EDITOR'S NOTE

Parson Lee Publisher & Managing Director Joseph Lee General Manager John Shih General Manager Regina Tsai General Manager Editorial General Press [email protected] Hsu editor in chief [email protected] Chang senior consultant [email protected] Wong Reporter [email protected] Tang Reporter [email protected] Wang Reporter [email protected] Kao Reporter [email protected] Tsui coordinator [email protected]

Art Design

Gaven Lee executive designer [email protected] Chang designer [email protected] Wu designer [email protected]

Circulation & Subscription Collins Yuan group Manager [email protected] Shih coordinator [email protected]

Corporate Management

Vivien Hsiu Project Manager [email protected] Lin Assistant to [email protected] Managing director Annie Yu Accounting Manager [email protected] Lee iT Manager [email protected]

asmag.com Collins Yuan group Manager [email protected]

Secutech & Events (Overseas) Echo Lin Trade Fair Manager [email protected] Yang Project Manager [email protected] Chen Project Manager [email protected] Pan Assistant Manager [email protected]

Secutech & Events (Domestic) Veronica Chen group Manager [email protected]

International Advertising [Headquarters] Echo Lin Manager [email protected] Wu officer [email protected] Kay Yang operation officer [email protected] Fang coordinator [email protected] Yeh coordinator [email protected] Chen coordinator [email protected] Lee Assistant [email protected]

[Branches & Representatives] Bobbie Ferraro usA/canada [email protected] Pattuelli europe (italy) [email protected] Ilkan europe (Turkey) [email protected] Consolos europe (u.K.) [email protected] Hadzic southeast europe [email protected] Gandhi india [email protected] Shen china [email protected]. C. Suh Korea [email protected] Komori Japan [email protected]

a&s International, published by Messe Frankfurt New Era Business

Media Ltd., is a monthly professional publication for channel players

in the worldwide electronic security industry since 1997. It updates

importers, distributors, OEM/ODM searchers, system integrators

and other product purchasers on product sources and identifies

developments in CCTV, Digital Surveillance, Access Control,

Biometrics, Intrusion Alarm, Intercom/Video Doorphone, Home

Automation and other fields relevant to electronic security.

Messe Frankfurt New Era Business Media Ltd. Taiwan Branch: 2F, No. 8, Lane 360, Sec. 1, Nei-Hu Rd.,Taipei 114, TaiwanPhone/886 2 2659 9080Fax/886 2 2659 9069Website/www.mfnewera.com

Messe Frankfurt New Era Business Media Ltd., a company formed by Messe Frankfurt (HK) Ltd. and former A&S Group in 2009, is an integrated media service provider in the security industry. Our service covers magazines, Web sites, events and trade shows. The portfolio of a&s magazines includes a&s International, a&s International China Best Buys, a&s Asia (above published in English), a&s China, a&s Installer, a&s Taiwan, a&s Solution, Fire & Safety and Info Security (above published in Chinese). a&s Turkiye, a&s Adria, a&s Italy, a&s India, a&s Japan and a&s Vietnam are licensed editions.

Advertisers are responsible for their own advertisement content. The publisher is not liable for any legal, image, patent or trademark disputes from advertisements or among advertisers.Legal consultant: Julia S.H. Yu, Attorney at Law, First Law & IP Offices

Copyright© 2012 Messe Frankfurt New Era Business Media Ltd. All rights reserved. No part of this magazine may be republished, reprinted or redistributed in any forms, including electronic, without written consent from the publisher.

ISSN 1997-6267中華郵政北台字第1571號執照登記為雜誌交寄

For changes of address or subscription problems, contact us at [email protected]

11C30P0884.018-Editor.indd 18 2011/12/30 下午 11:50

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Corporate News

Tyco Completes Acquisition of Visonic for $100 Million

Tyco International announced that the company has completed the acquisition of Visonic, a manufacturer of electronic security systems and components, for approximately US$100 million in cash. The acquisition was first announced on Sept. 15, 2011.

Visonic's portfolio includes wireless communications technologies that offer increased range and secure communica-tions. These technologies are in use in more than 1 million wireless installations around the world.

"The addition of Visonic to the Tyco Security Products portfolio advances our strategy to provide our global customer base with broad-based security solutions," said Mark VanDover, President of Tyco Security Products. "The company's technological capabilities and strong presence in markets such as Europe enable us to further enhance the solutions and reach of our intrusion security portfolio."

Th e Vi s o n i c b u s i n e s s , w h i c h h a s annualized revenues of more than US$75 million, will be integrated into Tyco's Security Products unit, a global provider of access control, video and intrusion solutions.

Seagate Technology, a provider of hard-disk drives (HDD) and storage solutions, announced the closing of the transaction to acquire the HDD business of Samsung Electronics, a provider of digital consumer electronics and information technology.

Under the terms of the transaction, Seagate has gained select elements of Samsung's HDD business, including assets, infrastructure and employees that enable Seagate to drive scale and innovation. Samsung employees joining Seagate include a number of senior managers and design-engineering employees from Samsung's Korean facility, who will focus on development of small form-factor products for the mobile computing market.

"Together, Seagate and Samsung have aligned our current and future product development efforts and road maps in order to accelerate time-to-market efficiency for new products and position

us to better address the increasing demands for storage," said Steve Luczo, Chairman, President and CEO of Seagate. "It is an exciting time in the industry with rapidly evolving opportunities in many markets including mobile computing, cloud computing, and solid state storage."

This transaction was announced in April 2011 along with a series of other agreements between Seagate and Samsung. Seagate is supplying disk drives to Samsung for PCs, notebooks and consumer electronics devices. Samsung is supplying its semiconductor products for use in Seagate's enterprise solid state drives, solid-state hybrid drives and other products. The companies have also extended and enhanced their existing patent cross-license agreement and have expanded cooperation to codevelop enterprise storage solutions.

IMS Research: Network Video to Grow 25 Percent in 2012 Despite Uncertainty

IMS Research estimated that the demand for video surveillance equipment will remain strong through 2012 despite the economic uncertainty; growth for network surveillance equipment sales is forecast to exceed 25 percent.

Looking back at what happened during the last global recession, despite the economic turbulence, the global video surveillance equipment market continued to grow throughout the downturn. “The world market for video surveillance equipment continued to achieve strong growth in 2010, in excess of 10 percent, despite the persistent after-effects of the global economic downturn,” said Gary Wong, Senior Analyst at IMS Research. “While the global analog market was relatively depressed in 2010, the network video surveillance market continued to grow almost three times as fast as the total market in 2010, more than 30 percent.”

A report from IMS Research has identified the latest in a long line of evolving trends in the enterprise and IP video surveillance storage market.

“The trend towards higher resolution security cameras will continue to impact the storage market over the short to medium term” said Sam Grinter, Market Analyst of IMS Research. “By 2015, IMS Research forecasts that megapixel security cameras will account for more than 70 percent of network security cameras shipped.”

Lo o k ing for ward, IM S R e se a rch predicts that cloud based video surveil-lance storage, or video surveillance as a service, will be the next big trend, gaining acceptance as a viable option in storing video surveillance data. “Cloud-based storage will likely see the largest traction of enterprise solutions by providing centralized off-site storage for critical surveillance footage,” Grinter said.

Seagate Completes Acquisition of Samsung’s Hard-Disk Drive Business for $1.4 Billion

US$1.6 Billion

US$364.4 Million2009

2016

25% Growth in 2012 CAGR of 11% until 2016

$181 Million

$123 Million

2010 2016

Analog

IP

2014

SaaS1.3 Million

1.8 Million in 2011

Others

Source: IMS Research

Sales of Network Video Surveillance Equipment

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Corporate News

March Networks, a provider of intelligent IP video solutions, announced that it has entered into a definitive agreement with Infinova and Shenzhen Infinova, a company listed on the Shenzhen Stock Exchange, majority owned by US shareholders and with US headquarters in New Jersey. The total value of the transaction is approximately US$88.2 million.

"The combined companies will create one of the 10 largest global players in the video surveillance industry and is well positioned for the expected industry consolidation over the next five years," said Peter Strom, President and CEO, March Networks. “Infinova offers March Networks a broader geographic footprint, access to the world's fastest growing market and a complementary fit with our

respective product lines. This deal is consistent with our strategy to accelerate growth and expand in the Asian market.”

"March Networks has established itself as one of the leading and most innovative players in the video industry and Infinova is proud to combine forces to take the company to the next level, said Jeffrey Liu, Chairman of Infinova. The acquisition provides scale in all critical markets, as well as access to March Network's proven and innovative IP technology.”

“March will continue to operate independently from its headquarters in Canada, maintain its name and brands, and deliver on all of its commitments to customers, while taking full advantage of Infinova's manufacturing expertise and R&D scale,” Liu said.

ABI Research: Business Intelligence With Video Analytics to Reach $900 Million by 2016

The video analytics market is expected to grow by 21 percent year-over-year in 2011. This surge in demand will drop to a more sustainable growth of 13.9 percent in 2012 and will stabilize at a CAGR of near 11 percent until 2016, driven by the emergence of innovative use cases such as business intelligence (BI) tools and the maturing of product offerings.

“Video analytics, used as a BI tool, is currently experiencing a growing demand,” said George Kraev, Senior Analyst, Security and ID for ABI Research. “That growth will continue for the next couple of years, with a slight drop off at the end of 2013 due to the cyclical nature of the demand. 2014 will see a reinvigorated demand for BI video analytics solutions, with the BI type reaching a 38.4 percent market penetration by 2016. The BI video analytics market is projected to grow a little more than 2.5 times from 2011 to 2016.”

South America will more than double its global video analytics market share, reaching 12 percent by 2015. Meanwhile, the U.S. and EMEA will lose some of their global dominance due to the high demand for video analytics in other regions. The market dynamics will be driven by multina-tional corporations and the adoption of high-end systems by affluent customers in the BRIC regions.

W h i l e t h e i n d u s t r y i s seeing a general shift toward edge devices, there are still limitations to digital signal p r o c e s s i n g p o w e r a n d the ability to run complex detection algorithms. The transit ion to edge -based analyt ics wi l l be s low for the next three or four years with I ntel-based systems maintaining their market share lead.

Infinova to Acquire March Networks for $88.2 Million

Frankfurt Light-Rail Stations Secured by Hikvision Network Video Solution

Frankfurt, a financial, commercial, and transportation center of Germany, has implemented a comprehensive solution for all of its 31 underground stations and 16 light rail transit stations.

The solution, implemented by the German-based company, Indanet, was developed to upgrade the existing analog surveillance system to better meet the client's demand for higher image quality and remote monitoring, in response to emergency situations. "The German climate can be very unforgiving,” said Jurgen Fuchs, Director of Strategic Projects at Indanet. “These stations are completely outdoors, so the challenges we faced were very different compared to those at a primarily indoor facility, such as a subway. Outside, we have to deal with absolutely everything."

The Hikvision 1.3-megapixel vandal and weatherproof network dome camera was selected to monitor the general platform area. It worked well with the Frankfurt network public transportation system, and these cameras gave the system operators a video image with excellent resolution. The camera successfully met the IP65 weather standard.

US$1.6 Billion

US$364.4 Million2009

2016

25% Growth in 2012 CAGR of 11% until 2016

$181 Million

$123 Million

2010 2016

Analog

IP

2014

SaaS1.3 Million

1.8 Million in 2011

Others

Video Analytics Market

Source: ABI Research


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Corporate News

Avigilon, a provider of HD and megapixel video surveil-lance solutions, announced that Bear Creek Mountain Resort in Pennsylvania has deployed the Avigilon HD surveillance system to better protect its corporate assets and ensure the safety of its more than 315,000 annual guests. Bear Creek Mountain Resort replaced its analog-based surveillance system with the Avigilon solution for greater reliability, enhanced image quality, and the ability to more efficiently and quickly resolve incidents onsite.

The resort installed 42 Avigilon HD cameras ranging from one to five megapixels. Avigilon video encoders were installed to improve

performance of the resort's existing analog cameras. The system is monitored 24/7 and the resort stores 21 days of continuous surveil-lance video on an Avigilon NVR. The management team has remote access to the system as well.

“With the Avigilon system, we can identify individuals or the cause of an accident to resolve potentially dangerous situations quickly and efficiently — something we were not able to do before,” said Nick Franzosa, Security Manager at Bear Creek Mountain Resort. “At the same time, we are now better equipped to reduce theft and the number of liability claims for significant cost savings.”

The Espace Coluche Theatre in Plasir, France, is a building with a floor space of 5,430 square meters spread over three floors and is home to different cultural centers.

A key element of the building's security was to replace the old, faulty security system and integrate it with the building's fire system to meet insurance requirements. The council also wanted to reduce its security costs, in particular monitoring costs associated with the protection of its multi-use center. This required a security system capable of functioning in a when used by multiple users.

Due to the building's diverse range of users, each requiring access to different areas of the building depending on their specific needs, the security solution needed an effective access control system.

Galaxy integrated intrusion and access control solutions by Honeywell that were selected by the town council. It addressed the key issue of managing the building access of multiple users. Through the use of badges and programmed authorized time schedules, the system effectively manages building access for a large number of users with various access profiles. Galaxy's automatic setting feature also helps reduce alarm monitoring costs as the alarm receiving center no longer needs to intervene if people forget to activate the system.

American Resort Protects Assets and Guests With Avigilon Surveillance System

Historic Turkish Hotel Protects Guests With IQinVision Cameras

IQinVision, a provider of HD megapixel network cameras, announced that the five-star Opera Hotel in Istanbul has deployed a wide range of IQinVision cameras in anticipation of its grand reopening in January 2012. Bilge Electronics is the integrator for this project.

The Opera Hotel sets a standard for luxury. Since it hosts many important guests, hotel management wanted the best in video surveillance security. Along with their excellent relationship with Bilge, hotel management was also impressed with the cameras' image quality and performance.

The 64-camera installation is deployed so that 42 mini dome cameras cover each floor's corridors, lobbies, and waiting rooms; 12 HD dome cameras watch over the parking lot; and 10 multimegapixel H.264 all-weather cameras are located in strategic locations around the building perimeter and cover the entrance and street in front of the hotel.

The cameras fit in nicely and unobtrusively with the hotel's design. Most importantly, overall number of cameras needed for the project was reduced, particularly in the main lobby and for building perimeter security.

French Town Protects Cultural Heritage With Honeywell Security Solution

Spanish University Library Opens Doors With Salto Access Management

A brand new central library that had been constructed in Basque Country University is now home to some 380,000 books and more than 130,000 magazines. As part of a large campus with many detached buildings, the challenge was to maintain the welcoming openness of the library while simultaneously keeping it and the university grounds secure.

The Salto Systems access management system enables the university to accomplish this by equipping the university buildings with Salto’s access technology and integrating into the same network. Selected electronic locks on doors were integrated across many different faculties and existing buildings on campus.

The system was able to integrate online and off-line access points in the same facility, which would help to significantly reduce investment costs and make it easier to manage doors and users. It gives greater value to both student and staff cards, as they can use their access control cards as IDs, for debit/credit, meal plans, libraries, entrance to their accommodation and more.


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Corporate News

Russian Railway Production Park Deploys AxxonSoft Video Management

Uralvagonzavod is a corporation that has strengths in railway cargo machine engineering with presence in Russia and Europe.

The company decided to set up an enterprise security control center. AxxonSoft's enterprise VMS suite was chosen as the platform for the video surveillance system. The VMS suite is a modular suite which allows the system’s capability to expand as required for project implementation. The system also employs IBM servers and data storage, and Cisco network equipment.

The system currently employs around 50 cameras. Plans include establishing several new peripheral hubs equipped with data storage, integrated in the overall system, to be centrally managed and controlled. They will later be connected to the existing local systems. As a result, the system will have almost 400 video channels and they will all be viewed, managed and archived from the control center.

Nine Bavarian casinos have had their surveil-lance operations completely transformed by the installation of a fully digital video solution from IndigoVision, designed and installed by authorized partner, Ippi.

“Upgrading our surveillance operation was very important as our existing equipment was becoming increasingly unreliable and expensive to maintain, and lacked the performance and flexibility of modern digital systems,” said Michael Mueller, Chief Organization Manager of the casinos. “IndigoVision's guarantee of no dropped frames combined with excellent video compression and image quality was

the main reason they were chosen.”IndigoVision fixed cameras and PTZ network

domes were installed while also reusing all existing analog cameras transmitted through IndigoVision encoders. The cameras give close-up views on gaming tables, and monitor all areas of the casino.

IndigoVision's management software allows teams to view live video and review recorded footage, while advanced motion search tools help find events. IndigoVision's open architecture allows third-party systems to be integrated, so alarms or events from the casinos' systems create bookmarks in recorded video from the nearest cameras to the incident.

US Hotel Safeguards Guests With Wireless Locks and Safes

VingCard Elsafe, a provider of hospitality security and part of Assa Abloy, announced that the newly opened Hotel Williamsburg in Brooklyn, has installed VingCard's door locks and wireless system, and in-room electronic safes.

Hotel Williamsburg, which opened in October 2011, is the first property of its kind in Brooklyn.

All 64 guestrooms at Hotel Williamsburg feature security technology solutions by VingCard Elsafe. “As a new luxury boutique property, we needed just the right mix of advanced technology, proven security and a sense of design that would blend with the unique aesthetics of the hotel,” said Maggie Houston, Director of the hotel.

Elsafe's safes meet the hotel's stringent criteria perfectly. Elsafe in-room safes are the only safes for hotels that are UL-listed. The attractive, adaptable design makes it perfect for blending into any hotel environment.

German Casinos Install IndigoVision Video Solution

Secutech 2012 Features the World's Largest One-Stop Shop for HD Surveillance

Leading IP and HD surveillance manufacturers and suppliers will display their latest products and turnkey solutions at more than 750 booths on an expected floor area of 35,873 gross square meters at Secutech, held April 20 to 22, 2012 at the Taipei World Trade Center Nangang Exhibition hall, Taiwan. The show is organized by Messe Frankfurt New Era Business Media, an integrated media company dedicated to the security industry.

The 2012 event features the world's largest high-end HD surveillance display, including representation from three categories: IP megapixel/IP-based HD, HD-SDI and high-resolution analog. A comprehensive compilation of products and services, ranging from lenses, IP megapixel, HD SDI and 960H cameras, transmission devices, DVR, NVR to video content analysis, VMS software and other HD video accessories will be showcased by original manufacturers from Taiwan, Korea, China, Japan and leading international brands from other regions.


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News Feature


The changing of a year is always a time for reflection. Security players have made many attempts recently to look for new market opportu-

nities, as well as where innovations could use more work. Predictions this year cannot be untangled from the financial troubles facing the Eurozone. Though the security industry is not extremely sensitive to economic cycles, a recession will impact the industry. Yet so far, it does not seem like the economic situation is reflected in security players' numbers. Examination of recent quarterly reports from Bio-key, Flir Systems, Digital Barriers and Axis Communications shows that sales revenue from recent quarterly reports look steady compared to previous quarterly reports.

Yet companies are still trying to reduce risk from a European presence by being more proactive in other regions. Digital Barriers made some of its first advanced sales to the Americas and Middle East recently, while also expanding sales in the APAC. Axis Communications also talked of increasing its global sales force, and presence in countries like the Czech Republic, Hungary, Turkey and Saudi Arabia.

G i v e n t h a t t h e r e c e n t economic turmoil is attributed t o l a c k o f g o v e r n m e n t resources, there is evidence that public spending is down. Flir’s recent quarterly reports state differences in revenue growth between its commercial systems divis ion and government systems division. Its 2011 Q3 report states that its commercial systems division increased 16

percent from the same period in 2010, while government systems divison increased by only 8 percent. The contrast is even starker in its Q2 report, with a 32-percent increase in commercial systems revenue, while only a 4-percent increase in government systems.

Historically, however, recessions have also been one of the best times to invest in a business. That’s exactly what Axis is doing. Axis has spent much of its energy in the past year hiring employees. Originally under 800 employees, its last quarterly report shows an increase to more than 1000 employees. Investing served Axis well when the economy receded in 2008, and perhaps it will serve do the same wonder this time around.

Acquiring new knowledge is always a good survival strategy for businesses, as it will enable businesses to better cater to customer needs. The trend of acquisitions

By Jessica Kao

Financial Trouble Ahead?a&s takes a closer look at a few publically listed security companies to see whether they are ready for the new year.

22D41Q1995/139.13:/joee"""39 3122023042"""﹩桂23;44

29JAN 201222 www.asmag.com 22

in the security industry continues. Acquisitions are also important for gaining footholds in key market regions and having the resources to compete with ever-growing competitors. Digital Barriers has made several acquisi-tions in the past few months. In June 2011, it purchased Zimiti, a company working on developing unattended ground sensor technology. In August 2011, it acquired Keeneo, a pioneer of 3-D video analytics located in France. In November 2011, it acquired Stryker, an engineering firm that specializes on redeployable integrated wireless surveillance systems. By acquiring these companies, Digital Barriers is gaining access to knowledge that will help it strengthen its own security offerings.

Flir also made an acquisition earlier this year of Aerius Photonics, a provider of short-wavelength infrared detectors and advanced laser components.

Another way that companies try to collect knowledge and compete with others is through partnerships. Bio-key recently announced a partnership with Authentec to develop mobile identification solutions for platforms such as Android. As people become more and more

accustomed to mobile devices in their everyday lives, they will want this more and more from security players. By collaborating, Bio-key and Authentec are trying to cater to the needs of end users.

Collaborating and communicating is needed to keep atop of the latest customer demands as well as maintaining business relations with other industry players. We are seeing more companies reach out using social media. Social media is becoming the preferred mode of communication among much of the global population, and is yet another way to connect. Bio-key recently launched a social media program that includes presence on Facebook, Twitter, LinkedIn, and YouTube, along with a new website.

For the time being, security players are still trying to protect their market positions and prepare for impending trouble by minimizing regional risk, investing, acquiring necessary knowledge and responding to customer demands. In the ever-changing security landscape, it will be interesting to see how the next few months pan out.

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VIEWPOINT


Refocusing on image Quality We forecast that by 2015, more than 70 percent

of all network camera shipments will be of megapixel resolution. In spite of this, over the last 12 months, manufacturers have continued to push for greater numbers of megapixels. This trend plays to the common misconception that more megapixels/more resolution equates to better image quality. However, video quality is dependent on factors other than the number of megapixels on the sensor, such as the lens and image processing. IMS believes that for the vast majority of manufacturers, there will be a renewed focus on image quality in 2012.

To date, the market opportunity for “high-megapixel” cameras remains relatively niche. Manufacturers will need to further develop their points of differentiation. Likely advancements will be in well-established areas of need, such as low-light capability and wide-dynamic range; we will also see increasing adoption of P-iris lens technology and advances in live video.

fRom the BRics to ciVetsGiven the Eurozone crisis that looks to potentially

dampen global economic growth in 2012, where will video surveillance suppliers find opportunities for growth in the coming year?

Over the last few years, the BRICs have been the countries of choice for video surveillance vendors seeking new growth opportunities. Unlike the more developed markets in EMEA and North America, the BRICs were far less impacted by the recent economic downturn. IMS estimates that the total video surveillance equipment market in the BRICs was worth more than US$2.5 billion in 2010. With a growth rate exceeding 20 percent for the next two years, the BRICs will continue to offer video surveillance vendors solid growth

opportunities, as the more established and mature video surveillance markets feel the impact f rom a potential second downturn.

Beyond the BRICs, where should companies seek out new growth opportunities? The CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) are being touted as the next set of tiger economies due

to their rapidly industrializing economies. The indicators appear promising as the current long-term GDP rate for the CIVETS is in line with that for the BRICs.

In terms of spending on video surveillance equipment, the CIVETS are a minnow when compared to the BRICs. However, in the mid- to long-term, as infrastructure development and social mobility increase, the CIVETS will provide a strong opportunity for growth. In terms of market size, the CIVETS will not overtake the BRICs for many years, if at all; however, IMS believes that manufacturers will begin to explore the long-term growth potential of the CIVETS in 2012.

hD oVeR coaxSo, what are the three key things that need to

happen in 2012 to give HD-over-coax (focusing on HD-SDI only) equipment a platform for growth?

stanDaRDizationFor HD over coax to penetrate the existing analog

market, multivendor/brand compatibility is a must. Currently, there is little standardization among HD-SDI video surveillance equipment.

Submitted by IMS ReSeaRch

The following 10 video surveillance predictions for 2012 serve to provide some guidance on the key trends and opportunities in each of these areas, which you might find useful in planning for the year ahead.

▲ Niall Jenkins, Research Manager at IMS Research

Video Surveillance Trends for 2012

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Storage CoStHD-SDI cameras transmit uncompressed HD video

which can lead to high storage requirements and cost. For HD-SDI to breach the mainstream analog purchasing market, the price of storage needs to fall. Additionally, the supply of HD-over-coax compression ICs is effectively an oligopoly, as the market is perceived as niche and does not yet warrant other manufacturers entering the fray.

Market eduCationManufacturers need to engage the correct market

segments and promote HD-over-coax products as a potential alternative to analog or network video surveillance solutions.

IMS predicts that manufacturers will continue to push HD-over-coax equipment to the end user, increasing availability and choice. With the backing from large vendors, it is increasingly likely that a number of other large video surveillance brands will begin to introduce some form of HD-over-coax products into their portfolios in 2012. As with last year’s predictions, we do not believe that 2012 will herald an explosion in demand for HD over coax. However, IMS forecasts that the HD-over-coax category will still see strong growth, with the market size nearly doubling, as increasing numbers of manufacturers begin to push this technology forward.

analytiCS to the edgeIMS predicts that in the coming years, the types

of applications that can be performed at the edge on the device’s main processor will increase. This will mainly be driven by the availability of more powerful processors and partly by the refinement of VCA applications to make them less processor-intensive.

Basic analytics will become standard features, and more advanced, “paid for” analytics will be performed at the edge. Over time, an increasing variety of analytics will be added as standard features, at no extra cost to the customer. Moreover, more powerful processors will enable multiple VCA algorithms to be performed at the same time to improve detection capabilities.

VCA is increasingly being used outside of the security realm, such as driver assistance cameras and interactive gaming consoles (such as Microsoft’s Kinect). Some of these new markets for VCA offer high-volume potential, which is attracting the attention of chip makers.

More M&a aCtiVityDespite the economic turmoil, M&A activity in

the security industry has continued over the last couple of years. However, video surveillance acquisitions have not been at the forefront of these deals; generally, M&A activity has been on a much smaller scale. Most recently, March Networks announced its plans to be acquired by Infinova in a deal worth around $90 million.

IMS’ annual report on the global video surveillance equipment market estimated that the market in 2010 was worth more than $9 billion in 2010, with nearly 40 percent of all sales contributed by the top 15. We forecast that network video surveillance equipment sales will exceed 25 percent in 2012, despite uncertainty in the Eurozone. While we will not see a spate of billion-dollar deals in 2012, it is likely that a greater volume of midsized deals will complete in the next 12 months.

looking up to the CloudAt the end of 2010, IMS forecast the increased

traction of cloud-based video surveillance, also known as VSaaS. The market certainly picked up in 2011, with notable sales growth of around 20 to 30 percent. However, the market is still emerging, developing and evolving. IMS believes that there are a number of potential avenues for suppliers of VSaaS to explore in the coming year.

A majority of the security cameras used in small and midsized enterprises are solely used for security reasons. However, some of the more tech-savvy users 4

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▲BeyondtheBRICs,theCIVETS(Colombia,Indonesia,Vietnam,Egypt,TurkeyandSouthAfrica)arebeingtoutedasthenextsetoftigereconomiesduetotheirrapidlyindustrializingeconomies.

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are beginning to leverage and monetize video from their existing systems. Rather than simply leaving video dormant on a hard-disk drive (HDD), business owners could post or stream video to the Internet, allowing customers to see real-time footage of the place they intend to visit. Video could be integrated with Groupon, TripAdvisor, Yelp or even Google Street View. Prior investment in security equipment could be transformed from an expense to a revenue-generating tool. IMS estimates that nearly 65 percent of the DVRs sold in 2011 were Ethernet-enabled, demonstrating the potential market for video to be distributed to the cloud and used for nonsecurity purposes.

Turning PoinT for SPinning DiSkSThe average price of HDDs has been falling

for more than two decades. Now faced with the consequences of the recent flooding in Thailand, the video surveillance storage industry could well see the effects of a change to this trend.

The reported extent of the disruption to HDD production differs from vendor to vendor. Official statements of predicted price increases vary from 0 to 180 percent. The net result for 2012 is likely to be a softening to the trend of falling storage prices.

VMS, noT aS We knoW iTIMS predicts that 2012 will see a raft of innovation

in the VMS space, as vendors attempt to stave off the threat of commoditization.

For the more established VMS vendors to continue to enjoy the historic high growth rates, they need to accomplish two key things: (1) maintain and increase presence in the upper market tier and (2) grow in the middle and lower tiers of the market.

The key selling feature of many VMS systems has been “openness,” and while the ability to integrate to a broad range of video surveillance brands is still desirable, this has become more of a basic expectation. IMS believes that VMS vendors will work on the following innovations in the next 12 months.

uSer inTerfaceWhile different VMS solutions do contain unique

features, user interfaces in general are fairly similar. Manufacturers will seek to develop simpler and more intuitive user interfaces in the coming year.

Mobile aPPlicaTionSApplications for mobile platforms, such as iOS and

Android, will be the front of many VMS manufacturers’ arsenal in the coming year. The market for mobile video surveillance applications is still relatively immature; this is true for both the technology and the market demand. Simple concepts, such as leveraging location services, would provide enhanced user experience.

SiTuaTional aWareneSSThe integration between access control and video

surveillance systems has been a well-trodden path in the last few years, and this trend will persist through 2012. VMS vendors will look to further develop their offerings from pure-play VMS platforms to security management platforms. VMS vendors have already sought to bridge the gap between supply and demand for situational awareness by implementing “PSIM-like” features in their platforms (such as enhanced functionality with Google or Esri maps). IMS believes that 2012 will see an acceleration of this trend.

beyonD H.264H.264 has become the de facto compression

technology for video surveillance systems. However, a combination of factors in 2012 could lead to advance-ments in video surveillance compression: (1) the flooding in Thailand; (2) the global economic climate; and (3) the phenomenal growth of HD and megapixel cameras.

In 2012, shipments of HD and megapixel cameras are

▲IMSestimatesthatnearly65percentoftheDVRssoldin2011wereEthernet-enabled,demonstratingthepotentialmarketforvideotobedistributedtothecloudandusedfornonsecuritypurposes.

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forecast to increase by more than 70 percent, compared with the previous year. While the accelerated prolif-eration of high-resolution security cameras provides end users with benefits, such as greater clarity when viewing live video, the storage costs can be significant due to the larger file sizes. Some of the potential compression alternatives are as follows.

H.264 SVCWhile there are many different

variants of H.264 avai lable on the market , the scalable video coding (SVC) variety, despite being well-established in other industries, is still not commonplace in the video surveillance industry. The key benefits of the SVC variant include a reduction in bandwidth (leading to a reduction in storage requirement) and dynami-cally resizable video.

WebMAn open and royalty-free video compression format

based on VP8, it is debatable whether WebM is more efficient or performs better than H.264. However, WebM is optimized for HTML5 video, which could be a key consideration in VSaaS applications. The stumbling block is that WebM currently does not have an associated real-time streaming protocol.

HeVCHigh-efficiency video coding (HEVC) is still under

development and is seen to be the evolution of H.264, providing increased compression efficiency. Ratification of this new standard is not scheduled until late 2012/early 2013.

So, what will happen in 2012? It would be fair to say the video surveillance industry is not on the cutting edge of technology advancements in video compression. Longer term, HEVC is perhaps the most likely successor to H.264, but that will depend on just how much better it performs and its suitability for video surveillance applica-tions.

Internet of tHIngS In CHInaOne trend which is unlikely to have a big impact

on the video surveillance market in 2012 but will receive more publicity and have a longer-term impact is the Internet of Things (IoT).

IoT is a concept in which individual objects are electroni-cally identified and categorized virtually in an Internet-like structure. To be identified, such objects need to contain a tag such as an RFID tag. Once categorized, supply could more easily meet demand, waste would be reduced, and it would be possible to find objects when they become lost.

IoT is receiving a lot of attention in China. The Chinese central government is strategically focusing on the development of seven emerging industries. These industries are expected to enjoy preferential policy treatment in a number of respects. New generation of information technology (NGIT) is one of these industries; and IoT is one of the most important parts of NGIT.

China has installed millions of video surveillance cameras over the past 10 years, and these cameras could provide a source of information to verify the categori-zation of objects for IoT. It is questionable whether IoT will drive new investment into security cameras. However, the expected benefits of IoT will help justify public expenditure on video surveillance equipment.

▲IoTisaconceptinwhichindividualobjectsareelectronicallyidentifiedandcategorizedvirtuallyinanInternet-likestructure,oncecategorized,supplycouldmoreeasilymeetdemand,andwastewouldbereduced.

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