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Will security industry consolidation stifle innovation?
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Will security industry consolidation stifle innovation?

Interoperability is not only confined to security technology, but also extends to parallel systems such as building automation, safety and environmental controls
We are now living in a new era of consolidation that is taking us full-circle back to vertical integration

The security industry will continue to see consolidation through acquisition in 2017. At the advent of IP camera adoption, we saw a great decline in large vertically integrated companies, which spurred a new era of innovation within smaller IP camera manufacturers, VMS providers and other hardware companies for storage and managed switches.

We are now living in a new era of consolidation that is taking us full-circle back to vertical integration. Ultimately, the industry as a whole suffers because this consolidation will stifle innovation until the next big technology disruption takes shape.

Interoperability across different verticals

 This time last year, we noted that the marketplace was moving toward converged technologies and the need for alarm management across multiple platforms into a common interface, turned out to be a popular request. If anything, we are only seeing just the beginning phases of this transition. The biggest surprise is that interoperability is not only confined to security technology, but also extends to parallel systems such as building automation, safety and environmental controls, and even Enterprise Resource Planning (ERP) software. Using Video Event Management Software (VEMS) alongside these intelligent platforms proves to be a valuable verification process for many new and exciting vertical markets.

Arteco focusses on securing critical infrastructure as well as corporate and education campuses
Arteco plans to continue the revenue growth and brand awareness achieved in 2016

Event-based video security software

At Arteco, our highest growth sectors tend to be slightly insulated from economic fluctuation in the sense that we focus on securing critical infrastructure (electrical utilities and communications) as well as corporate and education campuses. Unfortunately, the continued growth in active shooter incidents have made physical security concerns top of mind for many organisations regardless of economic impact. The unexpected repercussions are that many new security technologies are emerging that cater to real-time event notification on both the macro and micro level. The exciting part of this trend is that users are leveraging a layered approach with multiple autonomous applications working together toward a common goal to improve security, which will hopefully ensure a high level of protection. 

Business growth and challenges

Business has continued to grow year-over-year, and 2016 was a huge step forward for Arteco not only in terms of revenue growth, but also increased brand awareness in the United States and abroad. Our biggest challenge continues to be the crowded VMS market, which is filled with lower cost or even free substitute products. We are making great strides in overcoming this challenge by having a wonderful team of people, both on the technical and sales side of the organisation, who are focused on finding new and innovative ways to advance intuitive, open and affordable event-based and intelligent video security software into 2017.

See the full coverage of 2016/2017 Review and Forecast articles here

 

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