Ups and downs tested the staying power of security system providers in 2015, which was a dynamic year for the security market. A key development in the security industry has been the acquisition of VMS leader Seetec by OnSSI, which has enabled it to serve customers globally. The security market in 2015 also witnessed a growing trend towards supporting diverse security systems from different manufacturers.
Falling prices and increased competition
On the bright side, while the economy has not yet fully returned to robust growth, persistent security concerns prompted many end-user companies within 2015 to update their security systems, providing plenty of opportunities for security providers that offer high-value upgrade paths at the right price. In particular, there is a continuing and growing need to support heterogeneous systems that may include multiple brands of security cameras and other devices, driven in part by the fast pace of new model introductions. This trend will continue, and could even increase, through 2016.
The challenges for security providers also increased during 2015. For example, falling equipment prices and increased competition put pressure on margins. Factors such as well-publicised data breaches shifted the balance of spending on physical security versus data- and cyber-security initiatives. These too, will continue in 2016.
Expansion of service offerings
One key to lasting success will be to take advantage of the slow growth and uncertain periods to increase flexibility and take steps to strengthen product and service offerings. For example, OnSSI took several important steps this year to support future global growth and the continuing effects of market trends. Two actions in particular fall in this category, the first of which was the acquisition of European VMS leader SeeTec.
This acquisition expanded compatible software expertise and established a global position to serve global customers. The second action was the development of Ocularis 5 as a completely internal offering without using external partners for any core functionality modules. The company now has full control of the offering and can support the continuing trends for open platforms, supporting heterogeneous security networks, without any externally-imposed tradeoffs or limits.
Plans for 2016
Going forward, OnSSI sees a bright future. There are promising signs for increases in several target market verticals, such as healthcare and government entities, which are a good fit for the offering, especially with its 256-bit end-to-end encryption between client and server. With a simplified, robust offering that serves the market well, OnSSI looks forward to helping move more customers closer to prevention – the ultimate goal for security operations of the future.
See the full coverage of 2015/2016 Review and Forecast articles here
