ISC West, sponsored by the Security Industry Association (SIA), is the largest converged security event of the year, constantly evolving to educate security professionals on the tools and skills needed to protect against today’s emerging cyber and physical security threats, and the anticipated ones of tomorrow.

Following SIA’s research to develop the Security Megatrends™ – an annual research project that reports on the top trends reshaping the security industry – SIA and ISC West worked together to make sure those themes would be addressed at the 2018 event, particularly as part of the SIA Education@ISC line-up. The trends range from the booming growth of the IoT to more efficient ways to manage Big Data.

A top priority is making education one of the most valuable, robust parts of ISC West,” said Don Erickson, CEO of SIA. “We identified these top 10 trends – what we call the Security Megatrends™ – and reviewed how they would pose significant impacts on 2018’s converged security landscape. Cross-industry devices, like those used in smart buildings (i.e., LED lighting and physical security systems) will drive spending in 2018

“We then used these insights to lay the groundwork for the 85+ educational sessions we’re offering at the ISC West show, making it possible for attendees to leave feeling confident and equipped to tackle the emerging security threats, as well as the business challenges and opportunities that inevitably come their way.”

What are the 2018 Security Megatrends?

Trend 1: booming growth of the IoT

Both enterprise and consumer-connected solutions are major focuses at ISC West and will be explored in-depth at the Connected Security Expo, and the Connected Home areas on the Show Floor.

According to Gartner, businesses are predicted to represent more than half of overall IoT spending in 2017 (57 percent). Going into 2018, cross-industry devices, like those used in smart buildings (i.e., LED lighting and physical security systems) will drive this spending trend.

The IoT is creating both challenges and capabilities for the physical security and risk management sectors. When implemented and properly secured, the IoT will provide predictive analytics, the ability to deliver a more personalised experience to users, and complete situational awareness from top to bottom.

Trend 2: cyber meets physical security

Integrators will only be able to deliver if they continue to evolve towards total convergence - otherwise it is empty promises As the cyber and physical security sectors continue to merge, manufacturers are dealing with increasingly hostile and complex environments. To take security to the next level, manufacturers and systems integrators need to offer more advanced cyber-safeguards to protect network-connected devices.

Security integrators are moving in the right direction and are beginning to offer cybersecurity as a service as they continue to grow their businesses from hardware-centric to solution-oriented models.

And customers rightfully expect service providers to be their trusted advisors – however, integrators will only be able to deliver if they continue to evolve towards total convergence.

Trend 3: accessing and analysing smart and Big Data

According to IDC, less than 0.5% of all data is ever analysed and used, which is alarming considering all the buried insights that exist but aren’t being leveraged.

security practitioners need to have a plan for the data they are collecting, as well as a realistic risk assessment of the exposure of this data
"Big data is life changing in how we operate buildings and determining our future role. Big data changes the way in which we service customers."

According to Lisa Roy, Vice President, Integration and Commercial Operations, Building Solutions-North America of Johnson Controls, “Big data is life changing in how we operate buildings and determining our future role. It’s all about how to pull that information out that benefits the customer. Big data changes the way in which we service customers.”

Augmented reality (AR), artificial intelligence (AI) and video analytics will continue to be important for acquiring insights, but physical security experts are already anticipating how Big Data will impact the industry beyond these technologies.

With so much information available, security practitioners need to have a plan for the data they are collecting, as well as a realistic risk assessment of the exposure of this data to their companies and clients. 

The Unmanned Security & Safety Expo @ ISC West will further explore risk management for unmanned aerial and ground vehicles

Trend 4: evolution of risk management

Traditionally, the organisational process in security has been a siloed, single-lane approach. However, the most successful management models include all corporate stakeholders and possible sources of information to circumvent loss and reduce the potential for insider risk threats.

We’re heading in the right direction as risk management and planning has broadened to be more holistic, and collaboration between all stakeholders, beyond just within technology/security roles, is becoming increasingly prominent. However, this needs to happen even more, to become the norm, not an exception.

As we look to innovative technologies that bring about new risks and considerations, such as drones, this coordinated approach becomes even more imperative. The Unmanned Security & Safety Expo @ ISC West will further explore risk management for unmanned aerial and ground vehicles (UAVs, UGVs).

Trend 5: transformation of the channel

There’s an ongoing, heightened transformation of the security installer and integrator business into everything as a service, with new models embracing interactive products, and the DIY and self-installation markets. Unusual suspects from the IT sector have entered the security business, and traditional security monitoring companies are now offering DIY or self-install systems.There’s an ongoing, heightened transformation of the security installer and integrator business into everything as a service

This transformation of the channel requires some changes. The traditional security provider must continue to change and focus on value-added services that heighten the customer experience, while delivering convenience and intelligence expected by their customers.

From the end user’s perspective, security executives are looking for security providers who can collaborate fully to address risks and assist not only with security and safety but contribute to business continuity and promote a tangible return on investment.

Trend 6: shakeup of the status quo: entrance of entrepreneurial buyers and outsiders

Strategic acquirers are merging with traditional security manufacturers and installation companies to focus on data analytics, convergence and IoT. According to Jay Darfler, SVP, Emerging Markets and Innovation of ADT Security Services, “Disruption and innovation can come at you from a hundred different angles. You have to divide what your strengths and your core innovation to focus on.

The industry’s biggest players are getting even bigger as new technologies and applications enter new markets, like residential, and even spill over into small-to-medium business markets. However, there are challenges, and the long-time recurring monthly revenue (RMR) centric model is changing from hardware and project-based to income from service, maintenance and remote monitoring from cloud and interactive services.

Mobile credentials are able to provide an integrated and higher value system for the user
Mobile technology is becoming synonymous with access identity and credentialing

And while service creates value, monetary values inevitably change. As this shift continues, norms that have been in place for decades are changing, too, including increased subscriber acquisition costs (SAC), decreased RMR margins, increased technology obsolescence, shorter product development cycles, no contracts, and interoperability.

Trend 7: mobile everything

Mobile technology is becoming synonymous with access identity and credentialing. Beyond the obvious consumer value, smartphones will be transformative within access control, enabling both cost reductions and end-user benefits.

By itself, mobile credentials in access control is a strong value proposition, but mobile credentials are also able to provide an integrated and higher value system for the user while it promotes new services and revenue streams.

Trend 8: control through Cloud: driving greater efficiencies and promoting managed services

The global Cloud-computing service market is expanding exponentially. Growing connectivity, convergence and integration with IoT, mobile technology, and a wide range of applications and services is driving the shift towards cloud-hosting – including public, private and hybrid.

The cloud is an enabling technology. It allows the user greater access to managing their premises and opens the door to new service options for solutions providers to offer. It gives them the opportunity to offer managed services and subsequent RMR that is highly attainable, providing inherent opportunities to add new revenue streams with the cloud’s “always on, always accessible” model.

The cloud is an enabling technology. It allows the user greater access to managing their premises and opens the door to new service options

With this, systems integrators can become total solutions providers that are reliably available 24/7, leading to greater confidence and customer satisfaction.

Trend 9: integrating with social media

In law enforcement and emergency communications/operations, social media has become critical in identifying active shooters, criminal activities or other potential threats or disasters in real-time.

As the IoT and other disciplines continue to converge, social media will be part of the transformation of critical information resources. The next step for social media is deeper integration with mass notification and emergency communications—with the ability to disseminate specification information to individuals who may need to be evacuated or take shelter.

Trend 10: emerging connected services: consumers want convenience at their fingertips

Sensors embedded in a wide range of smart home devices and appliances will deliver near real-time analytics on changes within home environments. The cloud is a key component of this, providing seamless access and visibility. Visibility is especially important for service and maintenance of remote sites, reducing expensive site visits and labour costs – resulting in a better customer experience.Security providers who can adapt with this changing landscape will prove invaluable to the commercial market

Security providers who can adapt with this changing landscape will prove invaluable to the commercial market, lowering their business costs in areas like energy management.

We’re laser-focused on providing attendees with all-inclusive education at ISC West, which is why we’re thrilled to have SIA as our trusted partner,” said Will Wise, Group Vice President of ISC Security Events. “These top 10 trends really hit on what’s to come at the show. These themes impact nearly every type of attendee in some way, from government/enterprise security decision-makers and end-users, to integrators, installers and dealers.

“This year’s show is designed to be the most educational and information-packed yet, and we’re looking forward to seeing the peer-to-peer mindshare that takes place.”

ISC West 2018 will take place April 11-13 at the Sands Expo in Las Vegas, NV. SIA Education@ISC will kick off a day prior to the exhibits, on April 10.

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In case you missed it

Enhance traditional security systems within your smart home
Enhance traditional security systems within your smart home

Market dynamics are changing the U.S. residential security market, creating new business models that better appeal to the approximately 70% of households without a security system. Smart home adjacencies have helped revitalise the traditional security industry, and alternative approaches to systems and monitoring for the security industry are emerging, including a new batch of DIY systems. Growth in the residential security market and its position as the channel for smart home solutions have attracted numerous new entrants. Telecoms, cable operators, and CE (consumer electronics) manufacturers are joining traditional security players as they compete to fulfill consumer demand for safety and security. Connected products also provide a layer of competition as consumers must decide whether having category devices such as doorbell video cameras, networked cameras, and other products suffice for their security. Increasingly competitive landscape Smart home services can provide additional revenue streams for the security industry For instance, IP cameras are a highly popular smart home device rooted in security, and Parks Associates estimates 7.7 million standalone and all-in-one networked/IP cameras will be sold in the U.S. in 2018, with $889M in revenues. Product owners may feel their security needs are fulfilled with this single purchase, as such dealers and service providers are under increasing pressure to communicate their value proposition to consumers. Categorically, each type of player is facing competition uniquely—national, regional, and local dealers all have a different strategy for overcoming the increasingly competitive landscape. Smart home services can provide additional revenue streams for the security industry. In Parks Associates’ 2017 survey of U.S. security dealers, 58% report that smart home service capabilities enable extra monthly revenue. Almost half of dealers also note they have to offer smart home devices and services in order to keep up with their competition. While white-label devices are acceptable in some instances, dealers need to integrate with hero products whenever possible when those exist for a category. For dealers who have added smart home devices and services are all potential benefits and good for business Improved customer engagement That 2017 survey also revealed 36% of security dealers that offer interactive services report security system sales with a networked camera and 16% report sales with a smart thermostat. For dealers who have added smart home devices and services, enhanced system utility, increased daily value, and improved customer engagement with the system are all potential benefits and good for business. Security has served as the most productive channel for smart home solutions, mainly because the products create natural extensions of a security system’s functions and benefits, but as smart home devices, subsystems, and controllers expand their functionality, availability, and DIY capabilities, many standalone devices constitute competition to classical security. Particularly viable substitute devices include IP cameras, smart door locks, smart garage doors, or a combination of these devices. Products that are self-installed offer both convenience and cost savings, and these drivers are significant among DIY consumers—among the 6% of broadband households that installed a security system themselves, 39% did it to save money. 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Self-installable smart home devices may resonate with a segment of the market who want security but are unwilling to adopt professional monitoring; however, providers can leverage these devices to enhance traditional security features and communicate the value of professional monitoring. Smart home devices and features, while posing a threat to some security companies, are a potential way forward to increased market growth Increased market growth A key counterstrategy for security dealers and companies is to leverage their current, powerful role as the prime channel for smart home devices. Many security dealers now include smart home devices with their security systems to complement their offerings and increase system engagement. For example, as of Q4 2017, nearly 70% of U.S. broadband households that were very likely to purchase a security system in the next 12 months reported that they want a camera to be included as part of their security system purchase. In response, many security system providers now offer IP cameras as optional enhancements for their systems. Smart home devices and features, while posing a threat to some security companies, are a potential way forward to increased market growth. Security dealers have an opportunity to become more than a security provider but a smart home solutions provider rooted in safety. Provide status updates Comcast has entered both the professionally monitored security market and the market for smart home services The alternative is to position as a provider of basic security with low price as the key differentiator. Comcast has entered both the professionally monitored security market and the market for smart home services independent of security. It has discovered that monetising smart home value propositions through recurring revenue becomes increasingly challenging as the value extends further away from life safety. Since the security industry remains the main channel for smart home services, security dealers are in a unique position to leverage that strength. Value propositions must shift from the traditional arming and disarming of a system to peace-of-mind experiences that builds off the benefits of smart devices in the home to provide status updates (e.g., if the kids arrived home safely) and monitoring at will (e.g., checking home status at any time to see a pet or monitor a package delivery). These types of clear value propositions and compelling use cases, which resonate with consumer and motivate them to expand beyond standalone products, will help expand the home security market.

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The ongoing challenge of IT and data risk management
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Managing IT and data risk is a challenging job. When we outsource our IT, applications and data processing to third-parties more and more every day, managing that risk becomes almost impossible. No longer are our data and systems contained within an infrastructure that we have full control over. We now give vendors our data, and allow them to conduct operations on our behalf.  The problem is, we don’t control their infrastructure, and we can never fully look under the hood to understand and vet their ability to protect our data and operations. We have to fully understand how important this issue is, and ensure we have the right governance, processes and teams to identify and mitigate any risks found in our vendors. No longer are our data and systems contained within an infrastructure that we have full control over Today, everything is connected. Our own networks have Internet of Things (IoT) devices.  We have VPN connections coming in, and we aren’t always sure who is on the other end of that connection. It is a full-time job just to get a handle on our own risk. How much harder, and how much larger should our teams and budgets be, to truly know and trust that our vendors can secure those devices and external connections?  For every device and application we have internally, it is very difficult to even keep an accurate inventory. Do all of our vendors have some special sauce that allows them to overcome the traditional challenges of securing internal and vendor-connected networks? They are doing the same thing we are – doing our best with the limited human and financial resources allocated by our organisation. Risk stratification and control objectives  The benefits of outsourcing operations or using a vendor web application are clear. So how can we properly vet those vendors from an IT risk perspective?  The very first thing we need to put in place is Risk Stratification. Risk Stratification presents a few targeted questions in the purchasing process. These questions include – what type of data will be shared? How much of this data? Will the data be hosted by a vendor? Will this hosting be in the US or offshored? Has the vendor ever had a data breach? These questions allow you to quickly discern if a risk assessment is needed and if so, what depth and breadth.  Risk stratification allows you to make decisions that not only improve your team’s efficiency, but also ensure that you are not being a roadblock to the business Risk stratification allows you to make decisions that not only improve your team’s efficiency, but also ensure that you are not being a roadblock to the business. With risk stratification, you can justify the extra time needed to properly assess a vendor’s security.  And in the assessment of a vendor’s security, we have to consider what control objectives we will use. Control objectives are access controls, policies, encryption, etc. In healthcare, we often use the HITRUST set of control objectives. In assessing against those control objectives, we usually use a spreadsheet.  Today, there are many vendors who will sell us more automated ways to get that risk assessment completed, without passing spreadsheets back and forth. These solutions are great if you can get the additional budget approved.  Multi-factor authentication  Even if we are using old-fashioned spreadsheets, we can ensure that the questions asked of the vendor include a data flow and network/security architecture document.  We want to see the SOC2 report if they are hosting their solution in Amazon, etc. If they are hosting it within their own datacentre, we absolutely want to see a SOC2 Type II report. If they haven’t done that due diligence, should that be a risk for you?  Today, we really need to be requiring our vendors to have multi-factor authentication on both their Internet-facing access, as well as their privileged internal access to our sensitive data. I rate those vendors who do not have this control in place as a high risk. We’ve recently seen breaches that were able to happen because the company did not require administrators or DBAs to use a 2-factor authentication into sensitive customer data sources.  In the assessment of a vendor’s security, one has to consider what control objectives to use This situation brings up the issue of risk acceptance. Who in your organisation can accept a high risk? Are you simply doing qualitative risk assessment – high, medium and low risks? Or are you doing true quantitative risk analysis? The latter involves actually quantifying those risks in terms of likelihood and impact of a risk manifesting, and the dollar amount that could impact your organisation.   So is it a million dollars of risk? Who can accept that level of risk? Just the CEO? These are questions we need to entertain in our risk management programs, and socialised within your organisation.  This issue is so important – once we institute risk acceptance, our organisation suddenly starts caring about the vendors and applications we’re looking to engage.  If they are asked to accept a risk without some sort of mitigation, they suddenly care and think about that when they are vetting future outsourced solutions. Quantitative risk analysis involves quantifying risks in terms of likelihood and impact of a risk manifesting Risk management process  In this discussion, it is important to understand how we think of, and present, the gaps we identify in our risk management processes. A gap is not a risk. If I leave my front door unlocked, is that a control gap or a risk? It is a gap – an unlocked door. What is the risk?  The risk is the loss of property due to a burglary or the loss of life due to a violent criminal who got in because the door was unlocked. 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We tier them in different ways – in healthcare a Tier 1 vendor is a vendor who will have our patient information on the Internet. Tiering allows us to subject our vendors to re-assessment. A tier 1 vendor should be re-assessed annually, and may require an actual onsite assessment vs. a desk audit. A tier 2 vendor is re-assessed every 2 years, etc. We are responsible for protecting our organisation’s IT and data infrastructure – today that often means assessing a 3rd-party’s security controls. We must be able to fully assess our vendors while not getting in the way of the business, which needs to ensure proper operations, financial productivity and customer satisfaction. If we truly understand our challenge of vendor risk management, we can tailor our operations to assess at the level needed, identify and report on risks, and follow-up on any risks that needed mitigated.