2017 STATE OF THE SECURITY INDUSTRY REPORT
Most impactful
commercial business threats for 2017
The infl ux of lowercost
technology
alternatives
into the market,
especially in the
video space
Respondents were asked what they expect their most
impactful commercial business threats in 2017 to be.
They were asked to select their Top 3 threats.
Here are their responses in order of priority.
There is an inability for end-user
purchasing infl uencers to internally sell best
value instead of lowest initial purchase price.
There is a lack of understanding that lowest
cost does not equal the optimum owner/
operations Return on Investment (ROI).”
Commercial Integrators
Being Impacted From
All Sides
To say that system integrators
are feeling the heat would be a
considerable understatement.
It seems that threats are coming
from all sides. What began almost
two decades ago in the door and
electrifi ed access control industry is
now impacting video vendors, and
as a result, integrators – the specter
of low-cost cameras from China, and
to a lesser extent other Southeast
Asian import countries. According
to 57% of integrators surveyed,
they say the infl ux of lower-cost
technology alternatives into the
market, especially in the video space
is their biggest threat in 2017. The
saturation of low-cost video camera
systems from primarily China, has
integrators worried about margins
and gross revenues.
As one integrator lamented:
“There is an inability for end-user
purchasing Infl uencers to internally
sell best value instead of lowest
initial purchase price. There is a lack
of understanding that lowest cost
does not equal the optimum owner/
operations Return on Investment
(ROI).”
Not far behind in the threat parade
were concerns about service
companies like Verizon, Comcast
and others that are offering
bundled options that include alarm
systems, monitoring, along with
hosted service in access control
and video management. Close to
40% of respondents expressed
fears of these non-traditional
competitors. When it comes to real
outsiders, almost 37% of responding
integrators see the ultimate
outsiders like Google, Microsoft and
Apple as potential threats if they
make their way into this space.
Service companies
that are offering
bundled options
that might include
alarm systems &
monitoring, hosted
access control and
video management
Outside players like
Google, Apple and
Microsoft entering
the integrated
systems space
Your
manufacturer
or supplier
merging or
being acquired
by another
company
29.3%
Economic
downturn
26.4%
Shifting
of buying
power to IT
departments
20.1%
Managed
network
suppliers
offering VoIP
or other IT
infrastructure
services
17.8%
Competing
with smaller
local firms
16.1%
Other
5.8%
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2
3
57.5% 39.7% 36.8%
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