Denis Hebert, President, Feenics; Chairman, Security Industry Association (SIA)

From Security Sales & Integration:

The security industry will remain robust over the coming years, yet the focus will be on business continuity and convergence of security services across the enterprise. That said, the influence of IT over the physical security domain will increase, driving standards, imposing cybersecurity considerations, manage compliance and further commoditize hardware devices.

As product commoditization becomes more prevalent, dealers/integrators will need to focus on services, thereby building recurring offerings to end users through subscription-based business models such as the Cloud, value-based contracts, etc.

With the advent of Cloud-based services and alternate suppliers — such as cable/phone, DIY video, etc. — increasing response issues and potential UL considerations, the central station monitoring side of the business will be subject to major competitive pressures.

The manufacturing segment of the value chain has enjoyed safe margins for a long time, but product commoditization will put pressure on this area in the coming years. Those manufacturers capable of assembling or developing Cloud- or service-based offerings will likely be the companies with long-term survivability.

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