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Interview: Emre Yildirim, Co-Founder, Micae Electronics

The Micae Video Recording and Management system is our only product. It is designed to be able to work with any kind of distributed architecture: cloud-based, on-premise, or both. Most of the security systems are now moving on to this architecture.

By: Damir Muharemovic; E-mail: editorial@asadria.com

 a&s Adria: Mr Yildirim, could you present yourself to our readers, mainly your educational and professional background and your role at Micae?

Yildirim: I graduated in archeology and history of art in 1997 and entered the business world. Upon entering this field, I saw that there was a revolution happening in security systems, all the systems were analog back then, and they are converting into digital. With two of my friends, I established a software development company and we made a DVR in 1999 in Turkey. As the years passed the market switched to standalone DVR, to catch the market trends we made an agreement with Dahua Technologies in 2002 and became their sole distributor in Turkey. The market started to switch to IP products around 2007 or 2008 and we started distributing Canon cameras around 2009 in Turkey. After Canon bought Axis and left all the sales organization to them, I decided to make our product again. I have started Micae Electronics to partner with another company that is capable of doing high-level technology software in Ankara.

a&s Adria: Tell us about Micae Electronics: how long have you been in the security business, what were your company’s most important milestones, how many employees and offices do you have, which European markets do you supply, etc.?

Yildirim: Micae Electronics is a new company, but the Micae Brand has belonged to us since 2005. We have established a brand-new company just to make a fresh start because we are two partners in it. On one side, me, has been in the security industry since 1998, and I have been in this market since the digital revolution began. The other partner is also very experienced in both the manufacturing hardware and software side. So, we combined our knowledge and experience in Micae Electronics. At the moment we have 12 employees who are developers and four employees in charge of marketing. At the moment we have an office only in Ankara but in 2024 we are planning to expand.

a&s Adria: The Micae Video Recording and Management System is at the heart of your business. Can you give us a brief info about it and present its main features?

Yildirim: We have only one product which is the Micae Video Recording and Management system. This product is designed to be able to work with any kind of distributed architecture. So, it can be cloud-based, or work on-premise, or both. This is the new revolution in the security Industry after the one which has happened in 1998. Most of the security systems are now moving on to this architecture. Besides the architecture, we have all the functions of VMS, Health Monitoring Systems, and Video Analytics and Reporting systems. The system can be applied to a single site or hundreds of sites, and all can be managed from a single point.

a&s Adria: You state that it is more than a security system. Can you elaborate on that?

Yildirim: Micae Cloud Video Management System is designed to unite all the endpoints and give a robust, simple, and easy user experience for multi-site customers. The system is plug-and-play, it is very easy to set the system, and there is no need for any network configuration. Hardware agnostic, the system supports almost all cameras and recorders in the market, and it is very easy to add cameras and start the system. An easy-to-use and simple user interface makes the system user-friendly. With the central management feature, the system allows you to manage unlimited sites and devices from a single point. Easy Playback & Share allows you to easily find the required video, playback, and share in a few clicks. Health Reports feature all detailed health statuses of both endpoints and cameras. As these are measured by the system, users can generate detailed health reports of the inventory. Video analytics is powered by machine learning algorithms. Hardware-based machine learning algorithms make the system aware of anything very important to us. Object-based analytics reduce the false alarm rate exponentially.

If we think about a traditional security system, we can do only a few of those functions in one single system. We are offering all in one system and we are adding new functions daily.

a&s Adria: Why should a customer choose Micae Cloud Solutions instead of an on-premise solution?

Yildirim: It is better to call it a traditional system instead of an on-premise solution. Regarding the traditional security systems, they all seem similar but they are different in usage, performance, functions, compatibility, flexibility, and so on. We offer the highest user experience satisfaction instead of limited usage of all the promised functions than the traditional systems.

a&s Adria: What are the disadvantages of cloud in video management and how do you overcome them?

Yildirim: The disadvantages of the cloud are very limited, bandwidth, availability, and storage. In our system, we offer all possible applications like Cloud-based, Hybrid, Cloud managed, and on-premise solutions. The client can choose which is more suitable for their applications. With pure cloud, we have nothing to do if the internet connection is gone, but with the rest of the systems we can record and reach the system from any point and user can access their data and footage. For bandwidth, we have a transcoding function that gives us the power to monitor more cameras than traditional systems.

 a&s Adria: The Machine Learning technology in the Micae Video Recording and Management System analyses all connected videos on an object basis. What range of uses do these analyses have? How can it be used to increase the performance of your business?

Yildirim: Machine learning technology is the most advanced video analytics system. The system can analyze any type of camera footage and can look for any kind of specific object which is important for the user. The usage of machine learning algorithms is extensive. It gives more accurate information than motion-based analytics. We are constantly re-training the algorithms, so our analytics performance is constantly increasing. This is the advantage of edge-based analytics. We are using machine learning algorithms in two different ways, one is for nusiness intelligence, and the other is for security. Both can be used at the same time or separately, this depends on the customer’s need.

Machine learning in business intelligence enriches your current video footage and gives you detailed information about your business. By using business intelligence customers can measure the staff and branch performance, conversion rates, and store optimization. The types of BI analysis are people counting, vehicle counting, recognition of VIP customers – heat map, queue management, and POS integration.

Machine learning in security is helping users to create safer environments. In this way, users focus on the objects necessary for them and do not watch unnecessary video footage. The types of security analyses include face recognition, license plate recognition, object-based analytics, abandoned object detection, lost object detection, etc.

a&s Adria: What are the factors contributing to the final price of Video Management Software?

Yildirim: Currently, our primary focus is on the sale of our software which sets us apart from many competitors in the market. Our pricing structure is centered around a monthly subscription model, aligning with the prevailing trend across global software markets. This subscription, known as VSaaS (Video Surveillance as a Service), eliminates the need for customers to make a substantial upfront investment. We offer annual plans with transparent pricing, devoid of any hidden costs. Once a customer is satisfied with our product and opts to continue, we ensure ongoing support and regular upgrades. In the event they decide to discontinue the service, we cease providing upgrades and extensive support while maintaining bug-fixing services.

a&s Adria: What steps have you taken to ensure the safety of data from cyber-attacks?

Yildirim: The architecture is already cyber proof, we are using microservice infrastructure in the Zero Trust environment. So, the system is much more secure than most traditional systems.

a&s Adria: What were some of the most complex and significant case studies that you participated in over the past years?

Yildirim: We have an important client, a major car dealership, that boasts a diverse range of car brands, including Ford, Fiat, Renault, and Cherry. Operating across multiple buildings, they provide comprehensive solutions spanning sales, technical services, and repairs. Each building is equipped with over 80 cameras, totalling 450 cameras, posing the challenge of centralized management due to geographical distances and the absence of a dedicated CCTV system personnel.

Upon implementing our solution, the client gains visibility into the health status of their cameras and network video recorders (NVRs). They can efficiently manage recordings, resulting in a notable enhancement of overall performance.

A critical aspect is addressing customer claims regarding scratches or defects post-service. The dealership needs to substantiate the condition of vehicles both before and after servicing. The recorded footage from each camera plays a pivotal role in meeting this demand. Additionally, the extensive premises, especially after working hours, benefit from heightened security, with guards monitoring activities from a centralized location.

Beyond security, our solution contributes to operational improvements through Business Analytics. We systematically count and compare showrooms dealing with various brands, and conduct in-depth analyses of service areas. Subsequently, we generate comprehensive reports that delineate the performance of technical and repair services, aiding our client in refining their overall business operations.

a&s Adria: What are the most important global trends that define the VMS market? Will the market witness an increase or decline in demand in the coming years?

Yildirim: As I mentioned before all the traditional security systems are changing, including VMS systems. The VSaaS is now the trend in the US, and this is going to spread all around the world. This brings so many new approaches to both end users and the integrators. With VSaaS, systems all the trade between the manufacturer, SI, and end user will be transparent and the end user will always get much better technical support than ever. SIs and manufacturers will generate MRR which will make a constant and promised income for both parties. This will bring much better products and services to the end user. The new technology will enable us to develop much faster and add more useful functions for both security and business intelligence.

a&s Adria: What can we expect from Micae Electronics in terms of new features of your VMS and the development of your business?

Yildirim: We are constantly updating our system and adding new functions. We have an extensive road map but we also listen to our clients. The main driving power is coming from them. We are putting the client’s wishlist at the top and adding new features according to their needs.

a&s Adria: What is your opinion on the Adriatic region/Western Balkans security market? What are your plans in this area, are you looking for a regional partner? Are you considering participating in the largest regional conference and exhibition Adria Security Summit which will be held in October next year in Sarajevo?

Yildirim: For the business development side, we are looking for international markets. As I mentioned earlier VSaaS is a growing trend in the US and it will reach Europe in 2024. In strategic terms, the Balkans are very close to us, coupled with a shared history, which is why we intend to enter the European market through this region. We are looking for trusted partners or distributors in the region to establish a good business development. We have already booked three exhibitions in Europe in 2024, Adria Security Summit in Sarajevo included.

Security 50: a security industry reshuffling in the cards?

In 2022, global security witnessed economic shifts, geopolitical tensions, and a profound impact on the security industry, which is anticipated to continue its growth trajectory

By: asmag.com; E-mail: editorial@asmideast.com

Looking back, security in 2022 operated in a world that saw a slowed recovery from COVID due to various factors, including inflation and geopolitical tensions. Economically speaking, the world had an average GDP growth of 4.1 percent in 2022, dropping from 5.5 percent in 2021, according to the World Bank. Advanced economies such as the U.S. and the Euro area grew 3.8 percent last year, down from 2021’s 5 percent, while emerging markets had a growth of 4.6 percent, down from 2021’s 6.3 percent.

China, meanwhile, registered a 2022 GDP growth of 5.1 percent, down from 9 percent in 2021, due to challenges on several fronts. Domestically, China issued lockdowns in different cities throughout 2022, in response to a rise in COVID cases. Then, there is China’s ongoing real estate crisis–the Chinese government’s effort to regulate the debt limits of major Chinese developers, like the Evergrande Group, had caused the country’s real estate market to tumble. External factors also played a role. Geopolitical tensions between the U.S. and China prompted the U.S. to place severe trade barriers and restrictions against China.

The security market is expected to see growth in 2023 and 2024, with video surveillance equipment predicted to grow by 11.8 percent and 10.2 percent, respectively

Impact on security

So how did these factors play out in security last year? Upon first look, they brought little change to this year’s Security 50. The top 10 global security manufacturers in access control and video surveillance in our 2023 Security 50 ranking are Hikvision Digital Technology, Dahua Technology, ASSA ABLOY, Axis Communications, Motorola Solutions, Allegion, Tiandy, Hanwha Vision (formerly Hanwha Techwin), Uniview Technologies and Aiphone. Hikvision and Dahua remain the world’s largest security companies, with 2022 security product/equipment sales reaching US$9.8 billion and $4.5 billion, respectively (based on the IRS’s 2022 average currency exchange rates). There were two new entrants: China-based smart home solutions provider MEARI and Korean biometric solution provider Union Community.

Yet a surprising part of this year’s Security 50 was the growth list. Of the 17 companies that registered 2022-2021 revenue declines, 12 were Chinese companies. While China companies’ revenue declines were somewhat expected given the environment, the number of companies that inked sales declines, and the magnitude of these declines (by as much as 40.2 percent), still caught us off guard.

Indeed, China’s internal and external challenges mentioned earlier–lockdowns, real estate crisis, and tensions with the U.S.–all played a part. “Chinese government spending was diverted away from other areas, including spending on video surveillance, and towards battling COVID-19 and supporting its economy during these lockdowns. Restrictions lasted much longer than many observers had anticipated, with the Chinese government finally easing its ‘zero Covid’ policy in December 2022,” said Jon Cropley, Principal Analyst, and Josh Woodhouse, Founder of Novaira Insights.

At the same time, U.S.-China tensions, which led to legislation like the National Defense Authorization Act (NDAA) that bans the US government from purchasing video surveillance equipment by Hikvision and Dahua, had caused Western and non-China brands to register a proportional growth in their 2022 revenue. These include VIVOTEK, with a sales increase of 82.48 percent; Hanwha Vision, 47.52 percent; Axis, 36.01 percent; Milestone Systems, 30.43 percent; and IDIS, 22.17 percent. It should be noted that many of the U.S.’s Western allies, for example, the U.K., have also enacted NDAA-like legislation.

“The shift away from Chinese vendors continued at a pace not just in the U.S., but across Northern Europe and countries in Asia including Japan and South Korea. In part, many organizations and systems integrators want to standardize NDAA-compliant equipment to ensure existing and future business in the U.S., while end users are expressing concerns about looming regulations in the EU and Asia, cybersecurity weaknesses, and the potential for reputational damage connected to human rights abuses committed by some of the banned Chinese manufacturers,” said Jamie Barnfield, Senior Sales Director at IDIS Europe.

As for this year, Chinese companies are expected to fare better, even though they are not completely out of the woods yet. “The Chinese market is forecast to recover slightly in 2023 but remain well below its peak in 2021. Growth in demand will be much lower than in the years before the pandemic. At the same time, a weakening exchange rate between the Chinese yuan and US dollar will also dampen growth (when measured in US dollars),” Cropley and Woodhouse said.

The shift away from Chinese vendors continued at a pace not just in the U.S., but across Northern Europe and countries in Asia including Japan and South Korea

Yearly review and preview

For the security market in general, growth is expected this year and next, with Novaira Insights forecasting the market for video surveillance equipment to grow 11.8 percent and 10.2 percent, respectively, in 2023 and 2024.

Industry experts agree with that notion. “We observed some economic growth and expansion in 2023, although it has been unevenly distributed across different regions and sectors. This has had a mixed impact on the security industry,” said Choong Hoon Ha, Chief Sales and Marketing Officer at Hanwha Vision. “Despite the mixed economic impact, the security demands from society and individuals are still rising with the growing need for advanced network-based systems, such as intelligent surveillance cameras. Businesses are willing to invest in security solutions that protect their employees and assets, and even improve business efficiency and productivity by providing business insight.”

“Long-term, sustainable growth is at the heart of our business planning. We plan for 15 percent growth per year on average. And while the market itself is forecast to grow, Axis is again set to outpace it. We’ll achieve this by continuing to broaden our portfolio into new areas, such as intercoms, access control, audio solutions, and so on,” said Ray Mauritsson, CEO of Axis Communications.

Mobile credentials and digital wallets are emerging trends in 2023, providing greater value to end-users and system operators

Trends: AI, cloud, and mobile access more noticeable

As for predominant trends in security, AI and cloud still rank on top.

“Artificial intelligence will continue to provide opportunities for innovation across the industry. Application of AI to data streams from sensor fusion–combining and interpreting inputs from cameras and other sensory devices–will shift security solutions towards proactive capabilities that drive new value. AI’s influence is still in the transformational stage, for certain, but the applicability to the security industry is strong and clear,” said Vince Wenos, Senior VP and CTO of Allegion.

“This year, we have witnessed a growing demand from customers to maximize the capabilities of their cameras and sensors, with a strong emphasis on analytics. The industry continues to embrace the dominant trend of edge analytics, with an increasing number of camera manufacturers expanding their support for this technology,” said William Hinton, Product Line Manager for Video at Genetec.

According to Hanwha, customers are seeking technologies that can help them improve the accuracy of detection, make their video surveillance systems more scalable and cost-effective, and benefit from video analysis.

“In other words, they’re looking for surveillance technology powered by AI and cloud,” Choong said. “Many customers are still in the early stages of adopting AI and cloud-based video surveillance solutions. However, the adoption of these technologies is expected to accelerate in the coming years, as customers see the benefits that they can offer.”

Mobile credentials, meanwhile, have also emerged as a top trend in 2023. “Electronics continue to fuel significant growth for the industry across both hardware and solutions providers. Increasing adoption of mobile credentials and associated readers is providing a healthy lift,” Wenos said. “Mobile credentials continue to gain interest from customers, as they provide greater value to end users and system operators.”

Digital wallets, an offshoot of mobile access, are also gaining traction. “We’re seeing a lot of interest in digital wallets in large, tech-savvy office buildings. The first European rollout of an employee badge in Apple Wallet was at London’s 22 Bishopsgate, touted as the world’s smartest building. 14,000 mobile users at 22 Bishopsgate can now use just their iPhone or Apple Watch to access their offices, plus all the building’s amenities,” said Prabhu Patel, Commercial Director for Physical Access Control Solutions, ASEAN and India, at HID.

Cybersecurity continues to be a hot topic now that more and more devices are online. “For several years we’ve witnessed a growing focus on the cybersecurity of solutions. Customers are aware the risks are rising, demanding robust processes, vigilance, and transparency. When vulnerabilities do occur, vendor transparency is essential, allowing customers to respond as quickly as possible,” Mauritsson said.

Cybersecurity remains a top priority as more devices become online, with a growing focus on robust processes, vigilance, and transparency

Flexible payment

This year, we’re seeing at least two companies offering flexible payment options. These are i-PRO, who announced their FlexPay Financing, and Eagle Eye Networks, who launched their Eagle Eye Camera Direct Complete. The programs aim to help customers achieve more payment flexibility, reduce initial investment, and become more competitive in general.

“In some organizations, an increasing amount of security ops fall under the IT department’s responsibility, and they may have a preference for a greater amount of OPEX compared with the security industry’s typical preference for CAPEX purchases,” Cropley and Woodhouse said. “This type of transition is indicative of a cloud business model transition. However, only the video surveillance vendors themselves know whether the motive behind this is related specifically to products from specific competitors.”

Consolidation vs. smaller start-ups

Meanwhile, two competing forces continue to dominate in security. One is the continued consolidation of the industry. Recent examples include acquisition deals between ACRE and SISCO, Motorola Solutions and Rave Mobile Safety, and IDIS and Costar. Yet on the other hand, we’re also seeing the emergence of smaller companies focusing on cloud and AI. How these forces will play out remains to be seen.

Yet according to Cropley and Woodhouse, there are advantages to the scale of operation. “Each surveillance scenario is unique. Variables include the size of the installation, whether it is indoors or outdoors, and lighting and weather conditions. At the same time, the channel varies considerably by geographic location with a different set of distributors, systems integrators, and installers serving its needs. Large vendors have a range of solutions to meet all scenarios and have the resources to serve different channels in a wide range of geographies,” they said.

The security industry is witnessing both consolidation, as seen in recent acquisition deals, and the emergence of smaller companies focusing on cloud and AI, presenting a dynamic landscape for the future

 

Prevailing physical security trends in 2023: AI, Mobile Access Control and Integration

While the era of double-digit annual growth appears to be over for video surveillance, factors including AI-related innovations, expanding provision, and demand for more sophisticated analytics, the ongoing shift to IP cameras and improving camera resolution will continue to drive market growth

By: asmag.com; E-mail: editorial@asmideast.com

Memoori’s latest report into The Global Video Surveillance Business explores market prospects for cameras, storage, software & analytics from 2023 to 2028. Our latest estimates, based on a comprehensive analysis of the performance of a total of 322 companies operating in the global market, indicate that it generated revenues totaling $30.4Bn in 2022. We forecast that this market will experience a Compound Annual Growth Rate (CAGR) of 5.7% between 2023 and 2028, with revenues totaling $44.8Bn by 2028.

The AI imperative

The integration of advanced Artificial Intelligence (AI) and Machine Learning into video surveillance is reaching unprecedented levels of maturity. Key drivers of this trend include various factors. First among them are practical Implementations, as earlier discussions on AI in surveillance have moved from theoretical to practical, with more real-world applications coming to the fore. Next, sophisticated analytics offer capabilities that have grown increasingly refined and reliable, reducing false alarms and allowing for more nuanced and actionable insights.

Also, the falling costs of implementing AI and Machine Learning are making these technologies accessible to a broader range of applications. Finally, there’s a widespread rollout of edge-based analytics, based on dedicated AI chip system-on-chip architectures that offers the ability to process data closer to its source, alleviating network bandwidth constraints and helping end-users to minimize the risk of transferring or processing privacy-related data.

We forecast that by 2028, the percentage of network security cameras with onboard AI capabilities is projected to rise from today’s 18% to over 50%. These advancements are fueling new features like object recognition, behavior analysis, and other forms of intelligent monitoring.

As data volumes and the demand for analytics rise, we expect the market for Video Management Software (VMS) & analytics to significantly outpace growth in the wider market, here, we are forecasting growth at an 8.4% CAGR from 2022-2028. Here, the progressive transition to cloud-based analytics driven by requirements to amplify the power of video analytics by leveraging centralized computing resources is set to continue.

By 2028, the percentage of network security cameras with onboard AI capabilities is projected to rise from today’s 18% to over 50%

Access control: Mobile gains traction

Turning to access control, our market forecasts for this year’s analysis are still being finalized, but initial indicators are that Electronic Access Control market growth is set to outpace Video Surveillance market growth for the coming 5 years, reversing the dynamics that have been in play across Physical Security for over a decade. Here, the underlying supply chain and security dynamics are similar, geopolitical uncertainties are having a much more muted impact. Biometrics adoption has been somewhat stalled due to behavioral and attitude changes resulting from COVID, but we see the primary driver for growth is the progressive shift to mobile-based access control.

From a user standpoint, the allure of mobile access control lies in its convenience, enhanced security features, and the flexibility it offers for system administration. Customers, too, are taking note. According to a recent survey on access control trends, 42% of respondents worldwide now have plans in place to upgrade to mobile-ready systems. Our preliminary data aligns with this sentiment, projecting that by the end of 2023, mobile-based systems could constitute around 20% of all newly issued access control credentials for non-residential buildings.

While the transition to mobile-based systems is underway, it isn’t without its own challenges. Privacy and cybersecurity remain key concerns amongst many end users, particularly in cases where personal devices are proposed as the primary means of access control. For this reason, some organizations remain reticent to back the shift, still preferring the use of physical cards to mitigate the risks associated with personal data exposure on mobile devices.

By the end of 2023, mobile-based systems could constitute around 20% of all newly issued access control credentials for non-residential buildings

Tying it all together

As the physical security industry evolves, integration continues to move to the forefront as a business imperative. Rather than maintaining each individual security component (video surveillance, access control, or intruder detection) in individual silos, companies are now looking for new cross-functional efficiencies and value add opportunities across the BIoT. There’s a burgeoning demand from both users and vendors for unified platforms that not only streamline workflows but also enrich data insights by correlating information across domains. Deeper forms of interoperability that span data structures, analytics, identity management, and automation capabilities are emerging, fostered by expanded cross-domain partnering networks and improving API functionality.

One of the key enablers in this transformation is improving the standardization of security data and its metadata. Providing more contextually rich data is needed to inform more intelligent decision-making across these previously siloed systems, and can be invaluable when integrated into a broader security or building management system, enabling more nuanced and responsive actions like selective door locking or lighting adjustments based on occupancy, or scheduling elevator movements to match patterns of people movement within a building, saving energy and enhancing building user experiences.

Legacy systems, proprietary protocols, and the absence of standardized data formats will also continue to act as common roadblocks to integration until such systems are progressively phased out.  As the industry moves toward more standardized solutions, and cross-functional expertise grows, we can expect deeper, more seamless integrations to become the norm rather than the exception.

Electronic Access Control market growth is set to outpace Video Surveillance market growth for the coming 5 years, reversing the dynamics that have been in play across Physical Security for over a decade

Looking forward

The physical security market clearly remains in a state of flux, influenced by technological advancements, geopolitical shifts, and an increasing focus on integration and ethics. Companies that can adapt to these changes, innovate, and offer intelligent, integrated solutions are likely to thrive. But this is not a market for the complacent; staying ahead will require constant innovation, ethical considerations, and perhaps most crucially, the ability to adapt to ever-changing conditions.

As the physical security industry evolves, integration continues to move to the forefront as a business imperative

 

Interview: Swift Wu, General Manager of the International Department at ZKTeco

Swift Wu, General Manager of the International Department at ZKTeco, discusses how the company effectively addressed industry challenges in 2023 and shares key insights on how regions like the Middle East are emerging as hubs that hold great potential for economic growth

By: asmag.com; E-mail: editorial@asmideast.com

Founded in 2007, ZKTeco has long established itself as a leading global provider of hybrid biometric identification technology. In August 2022, the company marked a momentous occasion when ZKTeco successfully became a publicly listed company on the Shenzhen Stock Exchange.

asmag.com: What was 2023 like for ZKTeco? What were the challenges and how was ZKTeco able to respond?

Wu: Looking back at 2023, it was a pivotal year for ZKTeco and the industry as a whole. The world was showing signs of economic recovery. However, global economic performance did not meet expectations. While there were improvements, some sectors like retail lagged behind others in recovery. Some regions continued to grapple with lingering economic deficits, resulting in postponed or canceled government projects. In more extreme cases, rapid currency depreciation led to economic instability. Despite these challenges, certain economies outperformed others, with significant changes seen in lifestyles and business operations. The shift towards remote work and online shopping had a considerable impact on our business, particularly in areas like time attendance systems and other B2B security solutions. While many companies have begun asking their employees to return to the office, we anticipate that some changes in working practices may be permanent. Compounding these difficulties were escalating geopolitical tensions, with some nations in conflict or facing economic sanctions. These global issues led to an influx of vendors branching out into overseas markets to compensate for domestic economic downturns. Many employed a skimming strategy, offering low prices to penetrate new markets. This approach not only disrupted local markets but also threatened the sustainability of local suppliers due to the extremely low-profit margins. ZKTeco, with its longstanding presence in international business, was well-equipped to navigate these challenges.

We anticipate a return to economic stability, particularly in regions like Southeast Asia and the Middle East. These regions are becoming hubs for manufacturing and IT jobs, and we foresee considerable economic growth there

Asmag.com: Can you share some noteworthy accomplishments from the past year?

Wu: In the past year, we at ZKTeco have made strides in expanding our business along both horizontal and vertical dimensions. We consider horizontal expansion as into new business sectors or lines, and vertical expansion as penetrating higher or lower market sectors. In 2023, we focused on establishing a solid foundation for future growth. One of our notable achievements was the investment and development of our next-generation access control systems. These systems, built on universal industrial standards, are fortified with intelligent and flexible functions. To accomplish this, we incorporated multiple advanced technologies, including artificial intelligence (AI), cloud computing, and big data. This integration solidifies our position at the forefront of the industry and offers our clients the most sophisticated solutions. Simultaneously, we’ve made significant progress in our vertical expansion. We are on the verge of launching a new product line that provides real-time managed advertisements, professional digital displays, digital signage, and digital posters. This system is fully enhanced by computer vision technology, addressing the limitations of conventional advertisement placement tools that cannot push correlated advertisements to audiences on demand. In our system, front-end cameras utilize computer vision technology to provide active video analytics. This includes text recognition, pattern recognition, and behavior analysis. Our edge devices then push correlated advertisements to the audience based on these analytics. This technology greatly enhances the accuracy of advertisement placement and provides reliable statistical information to advertisers.

Notable achievements included the investment and development of our next-generation access control systems, fortified with intelligent functions and incorporating advanced technologies like AI, cloud computing, and big data

Asmag.com: How is ZKTeco strategizing for 2024? Where do you see new business opportunities in the market?

Wu: While the world continues to face conflicts and unstable situations, we remain optimistic for 2024. We anticipate a return to economic stability, particularly in regions like Southeast Asia and the Middle East. These regions are becoming hubs for manufacturing and IT jobs, and we foresee considerable economic growth there.
Our strategy for expansion has always centered around localization. We adhere to a management philosophy of decentralization — we believe that providing our branches and departments with autonomy allows them to deliver optimal results, spurred by an effective motivational system. In response to the tense political situations among global superpowers, we’ve invested resources to ensure dual supply chains. This strategy will enable ZKTeco to maintain the production and delivery of our solutions to partners and clients, regardless of external circumstances. As of 2023, our biometric technology is among the top in the industry according to the NIST competition results. We firmly believe that biometrics is the future of human identity authentication and are committed to providing top-notch biometric technology across various solutions and applications. Alongside biometric technology, we believe that cloud-based and SaaS platforms are becoming mainstream. Soon, ZKTeco will launch several SaaS platforms for access control, visitor management, and time-attendance services. This is just the beginning of our journey to provide cloud-based services, with more to come in the next few years. Indeed, 2023 marked an exciting time for advancements in AI technology, with ChatGPT (GPT-4), in particular, garnering global attention. As a technology-based company, we at ZKTeco have embraced these advancements, incorporating AI to enhance our solutions in numerous ways. We are optimistic that the integration of GPT-4 with our existing solutions will result in improved user experiences and more efficient system operations. However, it’s crucial to remember that ChatGPT is just one facet of AI. AI technology as a whole offers a broad range of opportunities to enhance our solutions, and we’ve been keen to leverage these opportunities. For instance, we use AI in our biometric algorithms, where machine learning techniques allow our systems to improve accuracy and performance over time.

The shift towards remote work and online shopping had a considerable impact on our business, particularly in areas like time attendance systems and other B2B security solutions

Interview: Florin Marica, Managing Director, UltraVision Consult

UltraVision Consult’s strategic approach is to bridge the competency gap between manufacturers/distributors and installers/system integrators in building solutions using the best combination of technology to meet end-user needs and generate added value for our partners. Our services meet the needs of the regional market for pre-sales, design, configuration, deployment, training, and post-sales support

By: Damir Muharemović; E-mail: editorial@asadria.com

 a&s Adria: Mr, could you present yourself to our readers: when did you start working for UltraVision Consult, what is your role/what are you in charge of, and your educational and professional background?

Marica: Greetings to all your readers. I am Florin, the Managing Director and founder of UltraVision Consult. I am responsible for overseeing the strategic direction of our company and ensuring the provision of top-notch security and safety solutions to our clients throughout Central and Eastern Europe.

I embarked on my professional journey in the industry in 1999 and throughout the years, I was part of extraordinary teams which offered me the possibility to learn about various technologies, build and deliver complex solutions in the field of electronic physical security, traffic management and homeland protection.

Through my professional history I was involved in various roles including Business Development, Chief Operations Manager and Area Manager for Romania and Bulgaria, in leading companies from local and global market as UTI, Frigotehnica, GE Security and UTC Fire&Security. These experiences provided me with valuable opportunities to develop and cultivate my administrative, managerial, and interpersonal abilities.

Regarding my academic background, I am an engineer having a Bachelor’s degree for electronic and telecommunication from Politehnica University of Bucharest. Additionally, I have successfully completed a Master’s degree in Business Administration and Economics, followed by MBA in Economic Development. The combination of my educational background and business experience has prepared me with the necessary knowledge and competences to effectively navigate the intricate dynamics of our industry and steer our company towards achieving success. I’m an active member of ASIS International, Romanian Chapter which has a substantial contribution to enhance my skill set, knowledge basis and being up to date with the latest advancements in security management.

a&s Adria: Tell us about your company: when did it all start, what were its most important milestones, how many employees and offices do you have, which European markets do you supply, etc.?

Marica: Our journey started ten years ago, in July 2013, as I recognized an emerging demand for sophisticated and comprehensive security and safety solutions in Central and Eastern Europe. As in many other similar cases, at that time I was not ready or actively looking to start my entrepreneurship adventure. In less than a month, the opportunity was in front of me, and I decided to pursue it. At that time, I was leading the regional business of one of the top manufacturing companies in the security industry, worldwide, UTC Fire&Security. After their decision to divest local offices in EEU I have decided to continue serving the industry and building an indirect type of business, supporting and developing partnerships with local and regional installers and system integrators.

UltraVision Consult’s strategic approach is to bridge the competency gap between manufacturers/distributors and installers/system integrators in building solutions using the best combination of technology to meet end-user needs and generate added value for our partners.

Since then, our team has expanded to include more than fifteen committed employees who are aligned with our mission to deliver high-quality services and products that bring value-added to our partners. Our company is based in Romania, but we have business partners all over Central and South-Eastern Europe.

One of our most significant milestones was becoming a partner of Prysm, the maker of AppVision PSIM, who appointed UltraVision Consult as the value-added distributor for their software suite in countries throughout Central and Eastern Europe countries.

The first AppVision PSIM project began in 2014 in Sofia, Bulgaria. Since then, our team has developed dozens of projects in the region, most of them with the assistance of certified partners. We have provided integrated solutions for a variety of verticals, including utilities, defense, manufacturing, office buildings, entertainment facilities, industrial facilities, agriculture, government entities, and critical infrastructure.

We initiated investments in software development skills and resources in 2016. Soon, our company begins to provide customized software solutions and modules for system integration, new communication protocol drivers for AppVision, and software-to-software operations. Among the drivers developed in-house for our partners’ projects are DSC Neo, Paradox Evo, Bentel FC5xx, Telenot C400, Spica Time&Space, Metra, and radars (Elta Systems & C-Ram from RADA) and many others. In 2023, our team plans to release new protocol drivers and integration features with AppVision for video systems (Intellio and LuxRiot), perimeter security (FFT), and additional software connectors for external systems (ERPs, Business intelligence dashboarding).

Our company has implemented and is maintaining a transparent and effective Quality Management System and is certified ISO 9001:2015, ISO 14001:2015, and ISO 45001:2015. EcoVadis has also awarded us a Gold Medal for our achievements in sustainability in 2021.

We have partnered with industry leaders such as Axis Communications, Prysm, Milestone Systems, Camtrace, ACRE Security, Metra, TagMaster, Elka, TISO, and Spica. These partnerships have upgraded our service offerings, ensuring that our clients have access to a wide range of reliable solutions. We are now better able to provide our clients with optimal solutions as a result of our collaboration with a number of highly regarded companies in the global security industry.

 Focus on Central and Eastern Europe

a&s Adria: When we talk about the markets you supply, UltraVision Consult is therefore primarily oriented towards the markets of Central and Eastern European countries.

Marica: For the time being, our primary markets are located in Central and Eastern Europe. We are actively engaged in ongoing efforts to identify and pursue potential avenues for growth, with the aim of extending the reach of our services and providing cutting-edge security and safety solutions to additional geographical areas.

UltraVision Consult’s services meet the needs of the regional market for pre-sales, design, configuration, deployment, training, and post-sales support for physical access solutions, video surveillance, transmission products, fire detection and alarm, intrusion detection, buildings and industrial automation, and advanced integration with various software platforms.

We contribute to an organization’s strategic decisions, whether public or private, critical or commercial infrastructure, in order to align internal procedures with legislative regulations, as well as its own security strategy and business plan for operational optimization and resource efficiency. The UltraVision Consult team has a high level of competence in designing, customizing, and implementing integration and information software solutions. AppVision PSIM (Physical Security Information Management) is our primary open platform today.

a&s Adria: Physical Security Information Management, an open software platform that unifies technologies and equipment from different brands, is at the core of your distribution business. What does Prysm Software’s AppVision PSIM software suite with a unique control and management system ensure for the operators?

Marica: AppVision is a software solution developed for proactive and centralized security and building management purposes. This solution facilitates interoperability among diverse systems, consolidating a wide range of safety and security equipment, including video surveillance, access control, and intrusion systems. It also integrates Building Management Systems and Supervisory Control and Data Acquisition systems, such as Heating, Ventilation, Air Conditioning, and elevators providing the operators with information, command, and control of processes. The system has the ability to seamlessly integrate with various third-party applications, including cybersecurity tools, ERP, CRM, and emerging technologies like drones, robotics, and analytics.

The distinguishing factor of AppVision lies in its open architecture. The platform provides customers with the opportunity to personalize and modify it according to their specific projects, thereby granting them the desired level of independence. AppVision is a neutral tool that operates independently from the systems it integrates. This unique feature provides clients with the flexibility to choose their preferred hardware brands without any limitations.

Additionally, AppVision is a flexible, multifaceted platform that has the capability to seamlessly integrate with any current or future downstream application through an API or an SDK. The design of this platform is future-proof, guaranteeing its viability and benefits as technology continues to evolve.

Our collaboration with Prysm Software and the implementation of AppVision facilitate projects of various scales, ranging from smaller configurations to highly intricate systems.

a&s Adria: You mention that you deal with hundreds of processes “in a unified way”. How did you achieve unifying and not just integrating hundreds of often incompatible system manufacturers, especially taking into account that AppVision’s manufacturer Prysm Software states only “guaranteeing the integration and control of equipment and applications”?

Marica: Our solutions integrate multiple processes through diligent effort, strategic approach, and innovative technology. The AppVision platform offered by Prysm Software goes beyond the scope of merely ensuring integration and control of equipment and applications.

Compatibility issues often arise when dealing with multiple technologies, systems, and infrastructures. In this context, the open platform AppVision is especially important because it provides a flexible framework for customizing your project using an embedded C# intelisense engine. Through an open API and documented SDK, certified partners are trained to deploy their own development for new protocol drivers, features, and interfaces. AppVision’s partner community actively contributes to the software suite’s compatibility, integrations, and features. AppVision PSIM’s native features, such as its own physical access control management module, “cause-effect” links, scenarios, and alarm management workflows, are essential tools for achieving unified infrastructure.

AppVision Mobile App

a&s Adria: AppVision 4.8 represents a leap forward in technology, software features, and useful tools. What features, integrations, and enhancements come with the new version?

Marica: The AppVision 4.8 update represents a significant advancement in technology, software features, and practical tools, all aimed at enhancing your ability to oversee security, safety, and technical management systems.

One of the significant new additions is the AppVision Mobile App, which is now accessible on the Android platform as well as an iOS version, available on the Apple Store. Additionally, the newest version also implemented an HTML5 client for AppControl, increasing operational efficiency and providing a seamless user experience. Measures such as the implementation of temporary passwords and double authentication have been introduced to strengthen the security of the system. The platform’s usability and performance are boosted by the implementation of advanced filters and an update to .NET 4.8.

The inclusion of Terra Explorer is an additional noteworthy feature, providing the option of 3D cartography with the Geographic Information System (GIS) functionality. This upgrade enables operators to efficiently navigate and effectively manage their security systems with exceptional clarity and precision.

 a&s Adria: One of the strong points is the new mobile client application for Android. What does it include?

Marica: The newest features of AppVision are designed to maintain the security, integrity, and reliability of your operations without compromise. Indeed, the strongest point of the update is represented by the mobile client application for Android, also available on iOS.

This application offers a live chat functionality that enables operators to effectively communicate with one another from different workstations. Designed with field agents in mind, the app can function as a “bodycam,” enabling agents to initiate a live session with office colleagues or record and send chat content. Users can share alarm reports, PDFs, images, videos, and even their current location using the chat feature. There is an emergency button that, when pressed, sends a notification with GPS coordinates for safety purposes. In addition, agents can manage alarms, acknowledging or escalating them as needed, supervise access control by opening and closing doors, and view live CCTV camera feeds. They can also control PTZ while viewing a single stream.

a&s Adria: Have you increased cyber security and in what way?

Marica: AppVision’s roadmap prioritizes continuous improvement of information security features. Today, the software is compliant with OWASP’s top ten vulnerabilities and has received ANSSI certification (France’s national cybersecurity agency). AppVision’s cyber security features include secure communication between servers and clients via REST web service + HTTPS encryption, customer-defined password policies, and two-factor authentication (email or text message).

a&s Adria: In addition to the presented novelties above, the new version of AppVision also comes with integrations with some of the most used access control and video surveillance systems. Can you name some of those integrations and what are their benefits for end users?

Marica: The system’s versatility is improved by the integration of these features, which increases its efficancy in catering to diverse user requirements and settings.

The integration with ASSA ABLOY SmartAir, a provider of wireless access control solutions, offers our clients a consistent way to efficiently manage and control access points through the AppVision platform. The functionality provided is of great value in high-security environments, such as corporate offices, government facilities, or healthcare institutions.

The video integrations portfolio now includes a new driver, Network Optix Witness VMS, which can monitor live video streams and retrieve archived recordings through the AppVision platformNX. Witness is a reliable and scalable global solution for intelligent video surveillance. IndigoVision ControlCenter, an update to Genetec Security Center 5.11, and a beta version of the Intellio video system are also new in our portfolio.

AppVision 4.8 also includes integration with Spica Time&Space, delivering full user and access right management and providing our partners with an advanced level of access control. This integration also includes the workforce time management module, which is one of the most innovative time and attendance and human resource planning solutions available in our market. The combined technologies, AppVision and Spica, provide a flexible and scalable solution that can be customized to meet the specific requirements of any client, regardless of their operational scale, that needs to address extensible access control as well as time planning and management.

The integration with Suprema BioStar, a globally recognized leader in biometrics and security, brings forth advanced features to the platform, including fingerprint and facial recognition. As a result, there is an increase in security levels for access control and identification, effectively reducing the possibility of unauthorized access.

a&s Adria: As a scalable product, AppVision’s PSIM can meet different customer needs. Depending on the size of an installation, AppVision offers flexibility by making available several types of licensing. What are those types, what do they include, and how is the differentiation made and evaluated?

Marica: The flexibility and scalability of AppVision make it a highly suitable option for organizations of various sizes. AppVision provides various licensing options based on the scale and complexity of the installation.

Through its INITIAL version, the suite can be easily licensed for small and medium architectures. This option allows partners to target projects addressing small-size sites with up to 4 integrated protocols (drivers). We can consider a store or supermarket, a bank, or an industrial site as examples, with the potential to federate them all into a single, unified infrastructure. The licensing structure defines two types of installations for medium and large projects: Professional and Enterprise. The total number of server license points, as well as the total number of cameras, access control readers, and audio channels included in the license, determine the size.

The differentiation and evaluation process is typically carried out through a thorough assessment of the customer’s unique requirements, the scale and intricacy of the security infrastructure, and the extent of integration needed with other systems. This guarantees that every customer receives a customized solution that precisely aligns with their requirements and financial resources.

a&s Adria: What were some of the latest most complex and significant case studies that the Ultravision Consult team has participated in over the past years?

Marica: In a recent case study, our team had the privilege of collaborating with a prominent entity in the FMCG sector. The company, which has extensive operations in both manufacturing and corporate sectors, initially faced the challenge of not having a centralized and unified system for access control policies. UltraVision Consult implemented the AppVision product in order to seamlessly combine access control and video verification throughout their factory and office premises. The outcome was a comprehensive and cohesive access control policy that could be uniformly implemented across all levels of the organization. In addition, safety needs that were previously overlooked, such as fire evacuation procedures, have been optimized through digital means, resulting in a prompt and effective response.

Furthermore, we have had the opportunity to collaborate with a prominent entity in the utilities industry, specifically in the field of freshwater supply and sewage. Our security solution has been successfully implemented in a total of 20 locations and it has effectively eliminated the requirement for human resources, resulting in streamlined security operations and significant budget savings. The investment demonstrated a commendable return on investment, achieving self-sustainability within a year. The decreased reliance on salaries as an ongoing expense has resulted in a more precise and reliable financial projection.

Lastly, we are currently involved in an ongoing project for a swiftly growing online casino and gaming organization. The company has experienced significant growth over the past two years, with the number of employees increasing from 1,000 to 3,600. Our responsibility has been to effectively oversee access control and integrate security systems, while continuously adapting to their ever-evolving and rapidly advancing nature.

a&s Adria: What are the most important global trends that define the PSIM market? And according to that, what can we expect from Prysm Software and UltraVision Consult in the years ahead?

Marica: Based on our observation, it is apparent that the post-pandemic era has caused substantial growth in the regional market. The ongoing pandemic has highlighted the inherent vulnerabilities associated with human reliance on physical security processes, such as patrols, interventions, and operations. The potential interruption or unavailability of human resources during such periods may lead to notable security breaches or disruptions. The increased awareness of this issue has prompted a shift towards solutions that reduce reliance on human involvement, resulting in a significant growth in our business. We have observed significant organic growth in the licensing sector, with a consistent annual increase of at least 25% since the beginning of the pandemic.

Regarding the trends, Artificial Intelligence (AI) and Machine Learning (ML) are playing a crucial role in the advancement of PSIM systems. These technologies demonstrate proficiency in responding to current situations and possess a high level of capability in predicting and mitigating future ones. Through the analysis of patterns and the identification of anomalies in real time, AI and ML technologies play a crucial role in expediting response times, thereby improving overall security and device integrity. The timely identification and management of potential breaches can effectively prevent downtime and ensure the continuity of business operations.

In addition, the integration of AI and ML with PSIM is leading to the growing prevalence of predictive maintenance. This technological advancement allows organizations to further optimize their maintenance schedules, resulting in improved system efficiency. By implementing this approach, the durability and dependability of the security systems can be significantly improved.

The use of social media for security management is becoming more and more common in PSIM solutions. By carefully monitoring and analyzing data from these platforms, people can gain important situational awareness and improve their ability to spot potential threats with greater effectiveness. This is made even better using language decoding apps and multilingual help, which can spot potential dangers by analyzing geographical data, words, and phrases mentioned on social media platforms.

The PSIM market is witnessing a notable trend in interoperability and mobile access. Modern Physical Security Information Management (PSIM) solutions have been specifically developed to facilitate smooth integration with pre-existing systems. These solutions provide organizations with the flexibility to adapt and accommodate their evolving security requirements. The adoption of mobile-friendly design facilitates better responsiveness and control, empowering users to conveniently manage security from any location and at any time.

a&s Adria: How about the Software-as-a-Service (SaaS) models?

Marica: Physical Security Information Management (PSIM) is increasingly moving toward Software-as-a-Service (SaaS) models. These models promise simpler deployment and license acquisition and renewal. Prysm recognizes that this is a significant shift and is working to take the initiative in this regard. It is expected that it will require more time to develop a solution that meets the highest standards of reliability and quality.

The market for Physical Security Information Management (PSIM) is projected to experience significant growth, with an estimated increase from US $1.19 billion in 2022 to US $3.41 billion by 2029. This growth indicates a strong belief among investors and a growing awareness among businesses regarding the criticality of implementing effective security management systems. The increase in demand for advanced Physical Security Information Management solutions arises from a growing recognition that proactive and efficient security management, with the ability to anticipate and address potential threats in real time, is now an essential requirement rather than a mere luxury. PSIM providers are consistently striving to innovate and adapt their solutions to effectively meet the ever-changing security needs. This commitment ensures the continued growth and success of the thriving industry.

As the impact of integrated security systems grows significantly in the realm of cybersecurity, AppVision, ensures compliance and fortified defense against cyber threats, continuously gaining momentum and attracting further investment from PRISM to provide a high level of security. At UltraVision Consult, we recognize that the global trend in the security sector leans heavily towards streamlining operations, whether in individual systems or across complex platforms. Our continuous focus on developing efficient solutions aligns perfectly with this direction, seeking to simplify operational elements and increase user efficiency in an ever-changing environment.

a&s Adria: What is your opinion on the Adriatic region security market and how do perceive your company’s position in it? What are your plans in this area, are you looking for a regional partner? Are you planning to exhibit at the largest regional conference and exhibition Adria Security Summit?

Marica: We acknowledge the Adriatic region’s security market as a dynamic and rapidly developing sector, characterized by a growing emphasis on commercial security, cyber security, artificial intelligence, and other intelligent solutions. Through our regular participation in the Adria Security Summit, we have gained valuable insights into the ongoing evolution of the industry. This has enabled us to maintain a leading position by staying up to date with the latest trends and innovations.

We perceive our engagement in these summits as a valuable occasion for both acquiring knowledge and expanding our professional network. Additionally, it serves as a platform to highlight our own progress and achievements. UltraVision Consult is honored to be a valued member of this thriving community. We are enthusiastic about the market’s potential to excel in various security domains, and we eagerly anticipate the opportunity to contribute to and participate in this transformative journey.

We are highly enthusiastic about our forthcoming participation in the Adria Security Summit. As frequent attendees for the past three years, we intend to uphold the tradition by establishing our booth to accommodate interested individuals seeking to explore our product and its diverse range of applications.

Regarding the regional partnership, our objective encompasses several different fronts. We are currently seeking potential partners who possess a strong interest in creating additional value through projects, regardless of their level of complexity. Our objective is to proactively collaborate with these partners in order to raise product awareness and expand its potential applications among end users.

Our strategic plan for the Adriatic region aims to cultivate a strong network of partners. This will allow us to tailor our approach to each market based on its specific needs and traits. As a result, our approach involves identifying and collaborating with committed partners, fostering product awareness, and customizing our strategy to suit the distinctive characteristics of each market within the region.

Interview: Leo Levit, Chairman, ONVIF

In an exclusive interview with a&s Middle East, Chairman Leo Levit charts the course of the ONVIF’s paradigm-shifting role in promoting interconnectivity, metadata processing, and IoT for the needs of the next-gen security industry

a&s Middle East

Mr. Levit, thank you very much for your time. At the very beginning, we would appreciate it if you could introduce yourself to our readership.

I am Leo Levit, Chairman of the Steering Committee of ONVIF. I am also the Director of Systems Integration for Axis Communications, a company I have been with for nearly 8 years. I am based in Lund, Sweden at the global headquarters of Axis. My background also includes positions at Ericsson and Sony where I also contributed to product portfolio and business growth.

What does ONVIF conformance mean, and how it works?

ONVIF develops and publishes interface specifications that manufacturers can implement into their products. Product conformance is based on at least one of the seven profiles developed by ONVIF. Manufacturers test the products using the ONVIF profile-specific test tools to ensure that the products meet the mandatory specifications of the profile. Only companies that are members of ONVIF at the full, contributing (including registered affiliates), and user levels are eligible to submit their products for conformance and have their products listed in the ONVIF conformant products database at onvif.org.

For system integrators and end users, the ONVIF conformance process provides a level of out-of-the-box interoperability between products that conform to the same profile. Today we have a database of more than 26,000 conformant products that the market can select from to build a security system from components of their choosing, regardless of manufacturer.

What are the mandatory features of a product to be conformant to the profile?

Each profile has its own set of mandatory features, and there are also different requirements for devices and clients for that profile, as the capabilities of software clients and hardware are different. For example, in Profile T, it is mandatory for both clients and devices to have media streaming ready out of the box, but PTZ control is mandatory only for clients such as a VMS, as not all devices will be PTZ cameras. The only mandatory requirement across all profiles is the ability for both clients and devices to perform queries to understand which features devices and clients support.

What is ONVIF’s role in deepening relationships between analytics, IoT, AI, and other technologies?

We have actually made great strides in this area in the last few years, with the introduction of Profile M, which address almost all of these technologies at a foundational level in terms of standardizing the handling of metadata and analytics events, providing access to IoT environments, and enabling cloud-based solutions. Bringing these basic capabilities into the ONVIF conformance process expands the choice of and accessibility to products and services for system integrators and end users. As the industry continues to adopt these types of solutions and as these technologies advance, I would expect future ONVIF profiles to address the needs in these areas.

Are you encountering inappropriate competition in this area or products claiming a non-existing ONVIF certificate?

ONVIF has been the de facto standard for IP interoperability for physical security for many years so it’s only natural that we have seen some false claims of conformance. This is fairly common among certification and conformance-based organizations. However, we take these very seriously and consistently monitor for false claims as well as enable the public to report false claims directly to ONVIF, through a reporting tool on our website. We are continually refining our processes to be as robust and reliable as possible.

How is the security industry using meta-data today, and are you satisfied with that direction?

I think the security industry and the greater technology sector are at the beginning of understanding how to truly harness the possibilities of metadata. Our industry’s video devices are some of the most powerful sensors, capable of collecting massive amounts of metadata. So right now we are very good at collecting metadata, but the need to analyze and interpret this information is in its infancy. This is where standardization comes into the picture, as this will allow for greater innovation in this area and the ability to scale the solutions that are developed.

Two years ago ONVIF adopted the GitHub open-source development platform. How has that strategic step been reflected in your operations since then?

The primary driver of moving specification development to GitHub was to reduce the administrative burdens on our volunteer members who oversee this process as well as to provide increased transparency to the ONVIF Core Specification development, which has always been publicly available on our website. Anyone with a GitHub account can now make suggestions on these specifications, including contributions from software engineers and developers from other disciplines, such as cloud services, AI, and IoT. This move to open source will enable us to bring new developments to market more quickly with increased accessibility to ONVIF specifications and because of the automation available via GitHub for the detailed, process-oriented work required to produce technical specifications.

Do you plan any upgrades to the existing profile-based model to improve interconnectivity?

Profiles are developed based on a set of features from the ONVIF Core Specifications that enable companies to develop a functional product solely on the profile specification. This profile concept will not change. What we have done is introduce a concept called an Add-on, which is centered on addressing a specific use case. An add-on, by itself, is not comprehensive enough to qualify as a profile. These add-ons can be developed more quickly and allow member companies more flexibility when bringing new features to market that increase interoperability and fall under the ONVIF conformance process. As an example, we expect our first add-on to support TLS configuration, which is scheduled to be released this year.

How do you deliver the full benefits to cloud-based ecosystems at the time of their surge in popularity?

The ONVIF value proposition is to expand interoperability between different technologies and accessibility to those technologies to market players of all sizes, using our standards. With the cloud, our mission here is the same. It is important that we address what is specifically needed to help the industry expand into this area and diversify from the traditional device-to-client scenario that is keeping things on-premise. Determining the most suitable way to standardize the method of communication within different cloud components will be key.

Will the meteoric rise of AI have any short-term impact on the way you approach your goals, or is it still too early to predict the outcome?

I would say that it is definitely too early to predict the outcome, but there is no doubt that the growth rate in AI and the need to address the impacts with standards have accelerated our pace and refined our direction in this area. We see this as a natural progression of our support for the industry and also an opportunity to grow the scope of ONVIF outside of the traditional physical security realm into cloud and metadata. This includes how this information is communicated and received, stored and analyzed, and how the cloud aspects of this integrate with other components as part of a hybrid system.

Your position sounds like a very unique one. You have a genuine overview of thousands of products available in the market. What is the big picture you see? Where is this industry of meta-data processing devices and IoT as a whole heading?

Technology is developing at warp speed, much faster than the industry can adapt to on both the manufacturer and end-user levels. This includes AI technology and the shift from moving boxes to selling services and everything in between. From an ONVIF perspective, this will only continue as systems gradually migrate to the cloud, offering increased computing power for metadata and analytics and growing accessibility to larger IoT environments.

We have already set the stage for this transition in Profile M in two key areas.  Profile M conformant “devices” can now be physical hardware or a cloud- or server-based service or software, moving away from the traditional hardware device-to-software client paradigm. And because Profile M leverages MQTT, a common communications protocol in the IoT space, this opens up possibilities for new integrated applications and the ability to connect to different entities in an loT or automation ecosystem.

What will the main focus of ONVIF be in the following five years?

It is likely that working in the areas of metadata, IoT, cloud, and analytics will be at the forefront for the next five years, and probably many more after that. However, the work of ONVIF is driven solely by its members, and it is up to the members to determine new profiles, add-ons, or other similar initiatives. As these technology areas will be major drivers of the physical security industry, we can see areas of potential work, such as standardizing measures that ensure video integrity, as well as further support for metadata and cloud connectivity. One thing that is certain is that we will continue with our mission, which is to provide standardized interfaces for the interoperability of IP physical security products. This has guided us since our founding in 2008 and has led to the increasing number of conformant products that the industry can select from to build systems with components of their choice, regardless of manufacturer.

 

The Impact of ONVIF Conformance

ONVIF’s conformance process allows system integrators and end users to select from over 26,000 conformant products to build a security system tailored to their needs, regardless of manufacturer.

Out-of-the-box interoperability between products that conform to the same profile provides ease of integration and seamless functionality.

The ONVIF conformance process ensures adherence to mandatory specifications, promoting reliable and standardized communication between devices and clients.

 

Embracing Cloud and IoT with ONVIF

ONVIF’s adoption of the GitHub open-source development platform enables increased collaboration and transparency, fostering innovation and development in cloud-based solutions.

Profile M opens up possibilities for leveraging metadata, analytics, and IoT technologies, enabling the integration of cloud- and server-based services in addition to traditional hardware devices.

Standardization in communication methods within cloud components is a key focus area to enhance interoperability and drive the growth of cloud-based ecosystems.

 

Interview: Kiyotaka Suhara, President, Konica Minolta Europe

Over the years Konica Minolta has constantly transformed itself. It has contributed to many revolutionary innovations, as evidenced by an impressive list of around 20,000 patents registered worldwide. Today, Konica Minolta allocates hundreds of millions of euros for continuous research and development. This commitment to innovation and transformation has allowed it to survive and thrive for 150 years

By: Damir Muharemović; E-mail: editorial@asadria.com

a&s Adria: Mr. Suhara, you have embraced a new role at Konica Minolta Europe barely two months ago – what is your impression so far?

Suhara: As I stepped into my new role at Konica Minolta Europe, I knew that the next few weeks would be crucial in getting to know the people, the organization, and the processes inside out. To make the most of every moment, I decided to take an immersive approach and started quizzing my new colleagues with lots of questions. I listened carefully to their responses, absorbing every detail about the company’s culture, work ethics, and values. It was during this process that I truly understood the agility of the employees, their passion for the products, work, and customers, and the innovative spirit that thrives at Konica Minolta Europe.

As I learned more about the organization and its people, I grew increasingly proud to be a part of this team. I also recognized the opportunities that we can take advantage of as a company and knew that I had to do everything in my power to realise this potential. Going forward, I am committed to working with my colleagues to create an atmosphere of positive change at Konica Minolta Europe.

a&s Adria: This year Konica Minolta is celebrating 150 years. Why do you think the company has been able to achieve this milestone?

Suhara: In 1873, the world was a very different place when Rokkusaburo Sugiura, the founder of Konica, began selling photographic and lithographic materials in Tokyo. The industrial revolution was in full swing, and technological innovation was happening all around. Even though it was a time before the car, radio, and television, Sugiura’s entrepreneurial spirit laid the foundation for what would become Konica Minolta, a company with a rich history spanning over 150 years.

Throughout its existence, Konica Minolta has constantly transformed, reinvented itself, and innovated – always based on the foundation of imaging. The company has contributed many revolutionary innovations, as evidenced by an impressive list of approximately 20,000 patents registered worldwide. The company has always been versatile and eager to develop, which has driven its continued success.

But the company doesn’t just rely on its heritage. Today, Konica Minolta dedicates a three-digit million-euro budget to continued research and development. This commitment to innovation and transformation is what has enabled Konica Minolta to survive and thrive for 150 years. I feel privileged to work for a company with such a rich history and an innovative spirit that continues to drive us forward.

a&s Adria: What are such revolutionary innovations?

Suhara: When I think of Konica Minolta, I think of innovation. We have been in the imaging business for more than 150 years and have a long history of pioneering many firsts in the field. One of our biggest successes was in 1975, when we introduced the world’s first 35mm camera with built-in flash and automatic exposure function. This product was a game-changer and helped make photography accessible to the masses. Two years later, we developed a finger-measurement type pulse oximeter that made it possible to measure oxygen saturation in the blood without taking blood.

In 1980, we opened the world’s first round planetarium, providing an immersive and innovative experience for people to learn about the universe. In 1983, we introduced the world’s first copier with stepless zoom magnification/reduction function, which was an unparalleled success worldwide. One year later, we produced the world’s first aspherical plastic lens for CD drives, which revolutionized the way we listen to music.

We broke new ground again when we introduced a single-lens reflex camera with a professional-quality autofocus function, making professional photography accessible to the masses in 1980.

When we launched the world’s first printer with polymerisation method toner, which had a significantly lower environmental impact than conventional pulverised toners we “did it again” – and that was in the early 2000s.

And in 2011, we developed the world’s first OLED lighting panels with one of the highest luminous efficiencies, paving the way for more efficient and sustainable lighting solutions. In the same year, we launched AeroDR, the world’s lightest cassette-type digital radiography system, which revolutionized the way doctors could diagnose and treat patients. This invention solved several problems associated with conventional DR, including its heavy weight and the necessity of power and data transmission cables. AeroDR reduced the weight to a minimum and made data transmission wireless, contributing to a broader use of DR around the world.

We are proud of our innovative spirit and are committed to continuing to push the boundaries of what’s possible in the imaging field.

a&s Adria: What do you consider to be the company’s greatest achievements?

Suhara: Apart from innovations in the camera business, we have revolutionized offices worldwide: One of our biggest achievements was the introduction of the U-Bix 480 in 1970, an electro-photographic copier that transformed the way people worked. So successful was the product that copiers became one of our core products from then on.

A3 digital colour multifunctional printers (MFPs), the evolution of the earlier copiers, have been our recipe for success over the last 20 years, but they have been so much more: Alongside PCs, laptops and the internet, they have been crucial to the digital transformation of offices. In 2011, we decided to expand this business and started to enter the IT services market. Our vision was an intelligent connected workplace, where we connect people, spaces and devices.

In 2004, we entered the digital production print market, a bold move that was met with some scepticism from industry experts. But we knew we had the technology, the expertise, and the drive to succeed. And we did. Right from the start, we went all-in with our bizhub production print systems, offering our customers a new level of quality, productivity, and flexibility. We focused on the A3 cut-sheet market, knowing that it was the largest segment of the production print market, and we were determined to become a market leader. And that’s exactly what we did – and we’ve held the position of market leader in cut-sheet A3 production printing in Europe ever since. We didn’t achieve this success by luck or chance; we earned it through our dedication to innovation, quality, and customer service. We were relentless in our pursuit of excellence, always pushing the boundaries of what was possible. As we look to the future, we know that the digital production print market is constantly evolving, and we are ready to evolve with it. We will continue to invest in research and development, in order to offer our customers even more innovative solutions. And we will continue to put our customers at the heart of everything we do, because we know that it is their success that ultimately leads to our own.

A New Era

This new age for Konica Minolta has seen it lead the way in the digital print revolution (as of 2021 we are also leading the digital label press market with a 28% market share), pioneer new intelligent video technology by taking a majority share in MOBOTIX in 2016 and have since been very successful in expanding the Video Solution Services business in Europe, and break new ground in healthcare, in areas such as radiography and pioneering cancer research. However, whilst we can be proud of our long history of innovation, I believe that our greatest achievements are ahead of us, as we spearhead the creation of the intelligent connected workplace.

 a&s Adria: What have been the biggest challenges?

Suhara: World history over the past 150-years has presented many economic, societal, ecological and geo-political challenges and these issues are prevalent in our modern world. For us the biggest challenge we have ever faced has been responding to the impact of the COVID-19 pandemic, as the world went into lockdown, supply chains and manufacturing froze, with labour and semiconductor shortages impacting everything from IT to telecommunications and transportation. At the same time dining room tables, bedrooms and studies replaced offices.

As a company we take great pride in our accomplishments, breaking new ground through technology innovation. However, we are also proud of how we were able to adjust to what became known as the ‘new normal’ so quickly.

a&s Adria: How has the company overcome these hurdles?

Suhara: As the world went into lockdown, we were able to shift our office-based operations throughout Europe (more than 9,000 employees across 30 organisational entities) to remote working within days. This was made possible by a huge collaborative effort by all of our employees, but especially those in internal IT, HR, the countless team leads in different departments and a dedicated interdisciplinary coronavirus taskforce that was put in place. It is nothing short of remarkable, what was achieved at such short notice in so little time and with minimal risk to business continuity for our customers.

With age also comes wisdom and the ability to build back stronger in the face of adversity. As the world was continuing to reopen in 2021, we experienced two fires at the Tatsuno Factory of Konica Minolta Supplies Manufacturing Co., Ltd in Japan, which again put our resiliency to the test. Thankfully, there were no injuries or casualties as a result of these incidents. We recognised the need to adjust our approach to manufacturing toner and as a result our production process and how we manage the global supply of toner stock has been transformed. It is an example of strength in adversity making you stronger – a lesson all of us that have experienced the pandemic, both professionally and personally, will recognise.

a&s Adria: What are you most proud of at Konica Minolta?

Suhara: It is the creativity, ingenuity, and adaptability of all of the people, past, present and future, whether employees, partners and customers that has made Konica Minolta the brand it is today and will be tomorrow. During the pandemic it was truly inspiring and humbling, to be part of a team in which every single person rose to the situation and was willing to go the extra mile to do everything they could to support partners, customers, and each other.

a&s Adria: How is Konica Minolta prepared for the future?

Suhara: We see the future in data. Just as the company was conceived during the industrial revolution, we are in the midst of a digital revolution and digital transformation is creating an explosion in volumes of data, which can provide information, insight and knowledge if interacted with in the right way. Take IIM (Intelligent Information Management) for example: we see the future in extracting unstructured data and making it accessible or visible through technology, whether it is paper based or electronic documents – we want to unlock the value of the data hidden within.

Only if you interpret the data correctly can you make hidden insights visible. But often the amount of data is too large for humans to analyse on their own. We need artificial intelligence (AI) to recognise patterns and anomalies in the data. AI can work through huge data sets and make the right decisions. Our goal is to use our original imaging technologies in combination with AI to enable data processing and data-driven decision making. Decisions that change the way we work, that improve safety, that improve the quality of products or that enable advances in medicine. This is our vision, which we call “Imaging to the People”. We strive to make data accessible to everyone and to develop solutions that address the immediate problems of our customers and society as a whole.

a&s Adria: Can you give a few examples of such data-driven technologies?

Suhara: One example of this is our gas monitoring solution, which is used in oil complexes and power plants. By analyzing data from sensors and other sources, this system can detect gas leaks at an early stage and alert operators before a fire or explosion occurs. This not only reduces the risk of accidents, but also helps plants operate more safely and efficiently.

Another example of our data-driven technology is the nursing care support solution called “HitomeQ”. This system uses digital image processing, sensing, and voice inputs to monitor residents in nursing homes. It can detect unusual movements or behavior and automatically send notifications to care staff. By reducing the workload on nursing staff, this technology helps improve the quality of care and makes life easier for both caregivers and residents.

Finally, there’s SenrigaN, our non-destructive inspection solution. This innovative technology uses data analysis to detect breakages in internal steel structures from the outside, without causing any damage. For example, it can detect fractures in bridges before they collapse, potentially saving countless lives.

All of these examples show how data-driven technologies can have a significant impact on society, making it safer, more efficient, and more enjoyable for everyone. And as a company, Konica Minolta will continue to innovate and develop new solutions that can help make our world a better place.

a&s Adria: How important is the topic of sustainability for Konica Minolta?

Suhara: As a global company, Konica Minolta takes its responsibility towards society and the environment seriously. Sustainability has been at the core of our values for decades, with the establishment of a global Environmental Management Department as early as 1971. We want to contribute to society’s sustainable growth and prosperity in every possible way.

Last year, we took a significant step in this direction by bringing together our separate sustainability efforts and forming a unified ESG department in Europe. This new department works tirelessly towards addressing global issues in the areas of environmental, social, and governance. Our company’s alignment with the United Nations’ Sustainable Development Goals (SDGs) is another step we have taken in this direction. Through our social innovations, we aim to use our digital technologies to make a positive impact on society while fulfilling the SDGs. We are committed to setting achievable targets and making ambitious contributions to bring about a more sustainable future.

We believe in taking concrete actions to support society and the environment. As a responsible corporate citizen, we support many projects for the common good. For example, we have provided assistance to Ukrainian refugees and supported relief efforts for the communities and people affected by the recent earthquakes in Turkey. We also participate actively in local environmental and charity initiatives and support educational programs that help the next generation.

Among 100 Most Sustainable Corporations

Our commitment to sustainability has earned us a place in the Global 100 Most Sustainable Corporations list for 2023. We are proud of this achievement and will continue to work towards ensuring a more sustainable future for all. We regularly monitor our progress through KPIs and controlling systems to ensure reliable follow-up of our achievements. We remain committed to sustainability as we firmly believe that our innovations must have a positive impact on society and the environment, leaving a better world for future generations.

Interview: Hanchul Kim, CEO, Suprema

Market demand for contactless security solutions continues to grow even after the pandemic. Known as the “Apple of the World of Physical Security,” Suprema is a specialized security solutions company integrated with AI that has original technologies for facial recognition and fingerprints. Its main clients are Fortune 500 companies, data centers, banks, and public institutions that require high security.

Interviewer: Damir Muharemović; E-mail: redakcija@asadria.com

 

a&s Adria: Mr. Kim, can you please present yourself to our readers?

Kim: Thank you for this opportunity. I am Kim Hanchul, CEO of Suprema. I graduated from the University of Wisconsin, USA, and accumulated work and technological experience in global business and software development in Korean and foreign IT companies such as Samsung Electronics, Motorola, and Harman. After joining Suprema in 2015, it has been leading aggressive business growth abroad through location strategies by expanding partner channels and establishing branches abroad.

a&s Adria: What portfolio does Suprema have?

Kim: It has a broad portfolio in all areas of access control systems, including AI-based fingerprint and face recognition terminals, Biostar 2, which is an integrated platform for access/assistance/visitors management and mobile access card solutions.

In September 2022, the company launched BioStation 3, which can perform 100% contactless access authentication, reflecting the growing need for the market for contactless security solutions in the post-COVID-19 era. Provides various contactless access verification options, such as facial recognition, mobile access card, QR, and barcode to improve user convenience. With a small size similar to that of a smartphone, it is characterized by the ease of installation and scalability that can be installed on any door, from small offices to business environments.

a&s Adria: Can you explain more about BioStation 3?

Kim: BioStation 3 is equipped with an AI processor, NPU (Neural Processing Unit), and can perform high-level facial recognition access authentication. Accurate authentication is possible even with changes to the face, such as various types and colors of masks, hairstyles, hats, and glasses. It has an intercom and RTSP (Real-time streaming protocol), allowing efficient bilateral communication with visitors anytime, anywhere.

a&s Adria: What’s the secret of accurate personal identification despite changes in masks, hats, glasses, etc.?

Kim: This is possible by AI which has undergone massive data learning. Data for 50,000 people have been recorded. About 12 years have passed since a facial recognition terminal was made. In 2010, I made a facial recognition terminal with a product called FaceStation, and at that time, the algorithm memorized the elements of the face. Then I tried to change it to AI. BioStation 3 creates an AI-based algorithm instead of memorizing. The algorithm has become smarter in the continuous learning process by securing data from various angles of the face accumulated since 2010.

a&s Adria: Are you proud to have a premium access security solution? What is the difference or strength of Suprema compared to other solutions?

Kim: The chance that our products will recognize and misidentify people is approximately 1 in 10 billion. This is thanks to the in-depth learning algorithm developed independently and exclusively based on the technology accumulated over 20 years. This recognition algorithm is evaluated for its excellent false fingerprint/face detection technology. Another point of difference is that it has a design delicate and modern enough to be used in movies and dramas like JTBC’s ‘Confidential Assignment 2: International’ and ‘Private Life. Provides accurate facial recognition performance regardless of race or facial expressions of people worldwide, and this stability has been recognized worldwide, and a billion users currently use Suprema products.

a&s Adria: Suprema has recently been selected as Top 100 in the spin of the artificial intelligence fusion.

Kim: Suprema was selected as the 2023 Emerging AI + X Top 100, published annually by AIIA, the representative artificial intelligence association of South Korea. “Emerging AI + X Top 100” is an emerging company that is expected to be of greater value in the future, and refers to the top 100 national companies that will lead innovation through the merger between artificial intelligence ( IA ) and various industries ( X ). AIIA, industry, academia, and AI experts have conducted a quantitative and qualitative assessment of the future value of the company’s technology and business among 1,800 candidates. 48 companies with specialized solutions such as manufacturing, finance, and medical care were selected in 11 fields of the domain industry, and 52 companies that combine AI technologies in various industries branches in six fields of the merger industry (Cross-Industry).

Suprema, which provides integrated AI-based security solutions, has been named in the image and video processing spin in the fusion industry. Suprema recently introduced the BioStation 3, equipped with NPU ( Neural Network Processor ), an AI processor based on Deep Learning that leads the industry. BioStation 3 is an AI facial recognition solution that specializes in the contactless access authentication feature maximizing AI engine performance to accurately verify facial changes. The speed is so fast, so even in the busiest places of people, it is possible to authenticate quickly. I am honored to be recognized for its unique AI algorithm technology and future value. Suprema will continue to develop integrated security solutions using AI technology to always live safely and conveniently without users paying special attention.

a&s Adria: What are the solutions or products that Suprema is currently focusing on developing?

Kim: We are planning a major update to Biostar 2, an integrated access/assistance/visitor management and management software. Features such as the control panel and mobile access card issuance will be updated to improve cloud-based scalability, connectivity, and performance, and to more efficiently manage access, assistance, and visitors. BioStation 3 is estimated to implement the ‘Face Template on Mobile’ feature, the first access authentication method in this industry.

a&s Adria: The technology called ‘Face Template on Mobile’ is unfamiliar to me. Can you explain it briefly?

Kim: It is a technology that allows users to store and manage their facial authentication information on their personal mobile phones without the need to save it in the company’s database.

a&s Adria: I understand that the automation system was introduced into the assembly and inspection process at your plant during the transition to a smart factory. Is there a specific reason?

Kim: The first reason to automate production lines in small and medium-sized companies is to maintain high quality. We are implementing a “high margin” business by promoting premium products and I believe that due to our high quality, the premium position has been filled. The second is productivity. Automation can increase productivity.

a&s Adria: Is it impossible to automate the entire process?

Kim: 100% automation is difficult, but we are trying to automate simple tasks. I think it is significant and important that 100% of manufacturing is done in Korea. By 2023, the reliability verification process for all input products will be automated. Further, We seek to improve productivity by automating the logistical movement between processes by introducing an automated guided vehicle ( AGV ) and further expanding the automated process to apply it to all products.

a&s Adria: I am curious about specific future perspectives, such as short and long-term goals.

Kim: Recently, large-scale orders for Supreme Biostar 2 are increasing in industries such as construction, oil, gas, and data center security, mainly in the Middle East, Asia, and North America. Furthermore, our access control hardware products are widely used as high-end products on the world market. It is a strategy to expand the participation of the software business in the future by completing the advancement of the current software platform and continuously winning large-scale projects.

a&s Adria: What are the future trends in the security industry?

Kim: The demand for contactless access control solutions including facial recognition and mobile access cards continues to grow. In particular, the introduction of mobile solutions that can authenticate access via smartphones in educational institutions with generations of digital natives is increasing.

In addition, UWB ( Ultra Wideband ) wireless communication technology, which provides a more convenient user experience, is a striking topic in the IT industry. UWB technology is expected to have a broader capacity of uses, such as digital keys, lost and found search, payment services, and interior navigation. UWB technology can also be applied to physical security. If UWB technology is applied to the access control system, when the user approaches the door, the door opens automatically as long as the user has only one smartphone without having to take an action for access authentication. In the future, this technology is estimated to be used to create an environment for entering and leaving offices.

Interview: Vladyslav Markichev, Area Manager, SATEL

a&s Adria: Mr. Vladyslav Markichev, could you please present yourself to our readers: your education, business experience, and your role in SATEL?

Markichev: My name is Vladyslav Markichev and I’m an Area Manager for SATEL responsible for, among other markets, the Balkans. My education has given me a solid technical background, which I consider a great asset in my current role. I graduated from the National Technical University of Ukraine as an engineer, which I then complemented with practical sales experience in the field. Starting with such a good foundation is a real advantage that benefits me every day.

What I value most is that working at SATEL gives me the opportunity for continuous development. I started as a technical engineer, which was a very valuable experience that allowed me to get to know our solutions not only in theory but in real life and very practical applications. On the other hand, it has given me the possibility to be close to customers and their needs. This gives you a completely different approach to sales. You can advise customers on the best solutions and, working with professional equipment, you can be confident in what you are doing and confident that you are giving customers the best solution.

However, my adventure in the security industry started much earlier, over fifteen years ago. As a young student, I started working as an access control and intruder alarm systems installer. At the time, our team worked with various brands, but the leader, especially when it comes to quality and in terms of functionality, was SATEL. In this role, I started gaining new competencies very fast, which consequently led me to take on a managerial position in the technical department not long before joining SATEL.

Today, I look after our target markets in more than ten different countries. I plan sales campaigns, conduct regular product presentations and webinars, represent the company at trade fairs and industry events, solve any export-related problems, and also negotiate contracts and take care of admin for all the markets. I enjoy talking to new customers and maintaining good relationships with our long-standing partners. Advising them on their day-to-day business and technical issues can produce great results in terms of sales and personal satisfaction.

a&s Adria: SATEL has been in business for 30 years. What were its most important milestones? In numbers, how many employees and offices do you have now, and in how many countries do you sell your products?

Markichev: From the very beginning, the company was motivated by the idea that to gain and maintain market position, SATEL branded products must have an attractive price, while offering more functionality than those available from our competitors.

Hard work, ingenuity, and determination quickly bore fruit: the first control panels were launched quickly. They were from the CA series which was put into production in 1991.

Over the past 30 years, there have been many other milestones: 1991 – the CA-8 control panel was released, 1994 – the CA-10 control panel (in 1996 it was awarded the Gold Medal at the SECUREX Fair in Poznań), 1996 – STAM 1 monitoring station, 1998 – the first GSM module, 2003 – AQUA, our first motion detector, 2003 – the INTEGRA advanced control panel, 2005 – the ABAX wireless system, 2007 – our ACCO access control system launched, 2007 – INT-ORS/INT-IORS modules, 2008 – the first GPRS module, 2009 – VERSA control panels, 2013 – CSP conventional fire alarm system, 2013 – INT-TSI / INT-TSG touchscreen keypads, 2015 – OPAL family of outdoor detectors, 2017 – PERFECTA control panels, 2019 – ABAX 2 wireless system, 2019 – SLIM LINE family of motion detectors, 2019 – KNX modules, 2023 – ACSP addressable fire alarm system.

Systematic expansion of our production line and the constantly growing team (currently 370 employees), required more and more space. Over the past 30 years, our headquarters’ address has changed several times. Since 2008, we have been headquartered at a modern building conveniently located near Gdansk airport. Currently, we have an impressive array of machinery and a laboratory that is widely recognized as one of the best equipped in the Pomerania province. In 2019, our laboratory gained KNX accreditation joining a prestigious group of only 16 facilities in the world (and the only one in Eastern Europe) that are authorized to carry out certification tests for KNX products. The word “SATEL” is already associated with security in over 90 countries throughout the world.

a&s Adria: You state that a “proven formula for your success is a combination of four elements in perfect proportions”. What are those elements and what do they imply?

Markichev: Yes, exactly. Each of these elements is a link in the chain and only when they all work together as one, properly cared for and managed we can talk about success. Each of them is equally important to us.

Let’s begin with “High production standards”.

Our production lines are regularly modernized, and their level of automation increased to maximize their efficiency and production precision. By monitoring the environmental conditions (air quality, humidity, temperature) within the production area and in the components warehouse, we ensure the stability of our machinery and equipment manufactured by SATEL. We use professional testing equipment of our design to verify the efficiency of products before they are delivered to our customers. Not only the production process is driven by technology. The second factor is “Technology in the product”.  At SATEL we believe it’s crucial to move with the times. Therefore, we constantly monitor and implement new technological solutions in our devices, as well as focus on their universal design. All this is to ensure that our products are versatile, easy to install, configure, and operate every day for all end-users. This is all possible thanks to “Qualified specialists”. The people working for SATEL are experts well-versed in both design and production of alarm system equipment for many years. Our employees and the values they bring to SATEL are its greatest asset. Last but not least “Close cooperation with our customers”. They are the first and final voice that gives us feedback on our ideas and final products introduced to the market. Fast response to our customers’ needs is what we are very proud of. We develop products for individual markets and their requirements in mind – which is why we are valued by customers and business partners alike around the world. The wide range of available devices, which provide comprehensive security and comfort, is the result of the accumulated knowledge of hundreds of people over the years.

a&s Adria: Your company is designing and manufacturing different types of security products. Can you in brief present your product portfolio and the technologies they are based on?

Markichev: SATEL mainly focuses on two control panels: PERFECTA and INTEGRA. Both models offer security and automation features. The choice is determined by the size of the premise, the level of protection required by the type of premise, and options of integration with other types of installations as well as everyday administration and operation.

One of the newest control panels of the PERFECTA family is the PERFECTA 64 M. It is designed for houses and small businesses. This control panel offers easy everyday operation via e.g. touchscreen keypads and mobile app, an intuitive configuration tool, as well as additional protection against fire, flood, or gas leak, and, last but not least, smart home options. The PERFECTA 64 M control panel supports both wired and wireless ABAX2 security devices at the same time, making system installation very simple.

INTEGRA is an intelligent control panel dedicated to larger installations such as big houses, office buildings, banks, and industrial facilities. Thanks to the wide variety of keypads, motion detectors, modules, and software features, the INTEGRA control panel is very flexible. Based on a single system, the following can be realized at the same time: burglary, fire, flooding, and gas leak, as well as access control and building automation functions. As the name suggests, the INTEGRA control panel is designed for easy INTEGRAtion with other systems (e.g. KNX) to provide customers with even more advanced possibilities.

a&s Adria: To achieve high production standards, SATEL designs and produces even the smallest plastic elements and ensures that your products are constantly put through different testing regimes in your labs, using advanced equipment. What are the benefits of this approach for the end users/installer?

Markichev: Firstly, it ensures that the products are of high quality and meets the required standards. By designing and producing the smallest plastic elements in-house, SATEL has control over the entire production process, ensuring that every component meets the highest standards. Additionally, testing the products in our labs using advanced equipment helps to identify any issues before the products are released into the market. This reduces the risk of product failures. Secondly, SATEL’s approach allows for greater flexibility and customization. Designing and producing its components make it possible to modify and adapt products to meet the specific needs of the clients. This helps to ensure that the products are well-suited for their intended applications and provides the necessary level of security.

a&s Adria: What SATEL’s intrusion detection, fire alarms, and access control products would you highlight as the best-selling ones and why?

Markichev: SATEL offers many products in the field of burglary, fire, flood, and gas leak as well as access control signaling. Below is a brief description of the company’s best-selling products:

INTEGRA control panel – It is an advanced burglar alarm panel that offers a wide range of applications even on-premises requiring a GRADE 3 level of protection. This device provides convenient administration, effective communication features, simple management (INTEGRUM software), possibility to install wired and wireless devices which means also the ability for flexible expansion of the system. It is one of the most popular SATEL products worldwide.

CSP-200 series control panels – These are fire alarm control panels that are characterized by low implementation costs, high resistance to false alarms, convenient operation, and remote monitoring of the system status. They comply with stringent EN 54 safety standards. They are easy to program and perform cost-effective periodic inspections and maintenance.

ACCO NET – It is an advanced access control system enabling remote supervision over a network of territorially dispersed facilities. This system is scalable with a distributed structure and offers control, configuration, and administration of the system and its management via a web browser. ACCO NET supports up to 65,000 users and can be integrated with the INTEGRA / INTEGRA Plus burglary and panic alarm system.

a&s Adria: You exhibited recently at the Intersec in Dubai. The greatest interest was shown in intruder alarm system solutions meeting a number of stringent Grade 3 requirements, such as the INTEGRA Plus series of alarm panels and accessories. Tell us more about it and where is it used for.

Markichev: As mentioned before INTEGRA Plus is an alarm system that meets the stringent criteria of resistance to unauthorized actions and the requirements of the GRADE 3 EN 50131-1 standard. The latter certifies that deep knowledge about intruder alarm systems, and specialized tools are required to successfully disarm such installation. The highest level of security is confirmed by many certificates issued by independent units specializing in the testing and evaluation of intruder alarm solutions. To ensure effective protection of buildings with a medium and high risk of burglary (e.g. banks, jewelry stores, or public utility buildings), the system is equipped with keypads, detectors, and buffer power supplies that are equipped with double tamper protection. Thanks to this, it is possible to quickly detect attempts to neutralize devices and transfer information to the alarm control panel, which allows for an effective reaction of the user, security agency, or relevant services.

a&s Adria: SATEL has also updated the mobile app for INTEGRA alarm systems. Alongside more quality improvements in the latest release of INTEGRA CONTROL, what new functions have you introduced in the 6.0 version?

Markichev: We have gathered many opinions and suggestions from end users, installers, and distributors worldwide. Based on that as well as our internal developing directions for this product, we have prepared a long list of changes. The 6.0 version was warmly welcomed and so much positive feedback came to us – which is the best reward for our hard work. Let’s sum up those functions which were introduced to the market. The interface has been revamped to improve how you control the entire system or individual devices. It is now also easier to check their status. By just simply taping the screen the system will run your command, regardless if it is a simple action or a complicated scenario. You can also now rearrange the toolbar to suit your requirements. A search bar and filters were added to help you quickly find the function you’re looking for or a device to enable quick control over each one. With the new INTEGRA CONTROL, you can control your heating system, and adjust the temperature to the current time of day, or however you need it at the moment. You can also create personal heating schedules. Moreover, this update adds support for critical notifications. Allow the app to send these alerts, and you won’t miss any important information. Even if your phone is muted. We’ve also made the app more user-friendly. INTEGRA CONTROL now supports shortcuts. Add them to your phone’s home screen to quickly run a selected function without having to open the app. We’ve added support for voice assistants. You can now run all your shortcuts without touching your phone. These are the main new functions but when you will run the app you will find many smaller but very useful changes. We already have plans for the next update, so stay tuned.

a&s Adria: Your newest product in the fire alarm segment is the ACSP addressable fire alarm system. What are its features?

Markichev: All fire alarm systems, regardless of whether we are talking about conventional or addressable solutions, are subject to specific, very restrictive standards. The provisions of these standards identify the functionality of such systems. Each of the manufacturers must meet these requirements for the products to pass the certification. In addition to all „must have” functions, SATEL has introduced several options that affect the economic side of the installation, and facilitate servicing and daily operation. What is especially worth paying attention to? A single backup battery reduces the costs of the system and speeds up the servicing process. The option to perform a single-person test of the system as well as the sending of e-mails with information on the contamination of automatic call points are some of the solutions aimed at improving the maintenance of the system, also during its ongoing operation. Next is advanced diagnostics for faster identification of possible irregularities in the operation of the whole system and individual devices. The configuration and settings of the ACSP system can be entered and changed with the control panel keys. The other method, more convenient and user-friendly, is the use of the software ACSP Soft. Remote access to the system status can be gained using the Virtual APSP app. It is available in both desktop and mobile versions. The status of the ACSP system can also be displayed in graphic form (on maps and plans) using the INTEGRUM software. It allows the INTEGRAtion and management of distributed safety systems based on the INTEGRA and INTEGRA Plus control panels. The heavy-duty relays used in the MIO-400 allow direct control of various devices. This feature in comparison to other devices of this type available on the market has been highly appreciated by professionals.

a&s Adria: Since effective communication is one of the cornerstones of intruder alarm systems, SATEL has also developed its own communication modules. What new possibilities can they bring to intruder alarms or building automation systems? And what is Dual Path Reporting?

Markichev: In SATEL we produce modules dedicated to our proprietary solutions, such as specific SATEL control panels, as well as universal solutions. How are they universal? The fact that they can work with virtually any alarm system available on the market, as well as with most building automation systems. The main advantage of our communication modules is their versatility in terms of functionality. On the one hand, they offer the possibility of remote control of various functions – both by simple but reliable methods such as SMS or CLIP, as well as via modern and intuitive mobile applications. Another extremely important function is personal notifications – users of systems equipped with our communication modules can receive information via SMS and CLIP, as well as telephone voice messages, push notifications on smartphones, and finally e-mails. As for event monitoring, it can be implemented using data transmission via TCP/UDP protocols via ethernet or mobile data networks, the voice channel (via a mobile network or PSTN), as well as SMS messages. Our modules support extremely effective Dual Path Reporting, which uses two independent communication paths (which can be prioritized). The module (or cooperating modules) constantly monitors the quality of connection with the monitoring station in each of the mentioned paths. When there is a problem with communication via one of them, the transmission will be sent to the alternative one. All this is done so that information about a possible threat is delivered effectively and as soon as possible, which translates into the speed of reaction of the relevant services. It is worth noting that some solutions can communicate within the Internet of Things, which opens up new possibilities in the field of data acquisition and remote control.

a&s Adria: What European and international standards are your products in compliance with? And what is the scope of those certificates?

Markichev: SATEL products meet the requirements of the New Approach Directive, which is confirmed with the CE mark. In addition, we acquire industry-standard certifications for intruder and fire alarms, which are verified by the appropriate external certificates. CE marking applies to: (i) radio devices (ABAX2, PERFECTA, MICRA) which relate to the conformity of the devices with the RED Directive 2014/53/EU of 16th April 2014 on the harmonisation of the laws of the Member States concerning the availability of radio equipment on the market and repealing Directive 1999/5/EC, and meeting the requirements of the harmonised standards thereto; (ii) electronic devices (non-radio), which relate to the assessment of the devices compliance with Directive 2014/30/EU of 26th February 2014 on the harmonisation of the laws of the Member States relating to electromagnetic compatibility and the fulfillment of the requirements of harmonised standards thereto; ending with (iii) electrical devices (power supplies), which relates to the assessment of compliance with Directive 2014/35 / EU of 26th February 2014 on the harmonisation of the laws of the Member States relating to the availability on the market of electrical equipment designed for use within certain voltage limits and meeting the requirements of the harmonised standards.

a&s Adria: What vertical markets do you focus on? Can you present some of your latest representative case studies?

Markichev: We target various markets. INTEGRA is dedicated to sectors that require the highest level of security such as banks, jewelry stores, or national infrastructure, while our IoT solutions can be implemented in factories or solar and wind farms, mines, server rooms, and specialized warehouses. Thanks to the possibility to INTEGRAte our solutions with many different platforms, there are plenty of installations where many different systems are controlled by SATEL control panels. So we can add to the list hotels, shopping malls, office buildings, public sector premises, and many more. Some of our recent case studies you can find on our website, where we have prepared leaflets with use cases for our GPRS-A module.

a&s Adria: Many producers and vendors are reporting a shortage of components and were forced to raise prices due to higher prices of materials, transport, and inflation. How do you, as a manufacturer, deal with these issues? Were you forced to postpone deliveries and increase the prices of your products?

Markichev: At the moment, all manufacturers are seeing a drastic increase in availability and costs of obtaining the right type or quantity of a given component. In this situation, efficient resource management is extremely important. We have made a few very important strategic decisions that enabled us to maintain sufficient stocks of components for most products, especially key ones, which allow us to continue production and fulfill orders. Thanks to the extensive experience of our team of engineers, we were also able to quickly respond to the difficult situation in the components market. Our rapid alteration of hardware designs based on available components ensures continuity of production while maintaining a good price-quality ratio. What else? Despite the difficulties that are affecting not only us but the whole of Europe, SATEL is continuously improving its production lines. Continuous automation allows us to control production costs, which means a better and more competitive range of products for our clients.

a&s Adria: What can we expect from SATEL in terms of presenting new technologies and opening new markets and offices?

Markichev: Every year, SATEL presents a series of new products that respond to the market needs reported by our partners. Regular expansion of our offer allows us to reach new audiences and new markets. SATEL systematically verifies available technologies and analyses trends, which allows us to prepare products in advance and meet the future requirements and expectations of customers. One such activity is a deeper entry into 4G technology in products such as universal communication modules or alarms control panels with an integrated communicator. The development in the area of notification technology makes it possible to meet the global trends related to the phasing out of 2G and 3G networks. In Europe, we plan a wide range of campaigns related to the launch of our new addressable fire alarm system ACSP, as well as the new PERFECTA 64 M alarm control panel. Outside Europe, our activities will largely focus on the Australian market, for which a special variant of the ABAX2 system has been developed operating on the frequency of 915 MHz. Of course, this does not mean that the markets where we have already built a position will remain without activity and support. Together with our long-term partners, we actively work to strengthen our brand. This is achieved through regular training and promotional activities as well as the introduction of solutions required by local professionals. From emerging markets to current markets and finally, regions where we have already achieved a foothold, we thoroughly monitor and prepare our range in a way best suited to local requirements and expectations.

a&s Adria: What are your plans for Southeast Europe and your general opinion on the Adriatic region security market? Do you intend to exhibit at the Adria Security Summit in Slovenia and has that event helped you to reach out to new clients?

Markichev: We are noticing a growing interest in professional hi-tech solutions in the region. We are working to strengthen our relationships with our partners and to support customers in implementing our solutions in the market. The Adria Security Summit provides an excellent opportunity to showcase our systems to a wide range of professionals. So, we are eager to participate in the next edition of the Adria Security Summit. Face-to-face meetings with installers operating in the region are a great opportunity to exchange experiences, collect feedback regarding our range of products and gather information about their expectations and plans for not only alarm systems but also fire protection, automation, and access control.

Interview: Ovidiu Hriscu, Sales Manager, AZiTrend Distribution

Take, for example, a large warehouse with tens of thousands of SKUs in stock, and hundreds of thousands of scannings each day. If you need to document one type of event or an entire delivery with video proof, it might take you anywhere from a few hours to a few days. With the integration of the Warehouse Management System and AZiGuard Video Management, this task can take no more than a few minutes to a few seconds.

By: Damir Muharemović; E-mail: redakcija@asadria.com

a&s Adria: Mr. Ovidiu Hriscu, can you present yourself to our readers, with a focus on your educational background and professional experience, as well as your position at AZiTrend Distribution?

Hriscu: Hello and thank you for the opportunity of transmitting through you our way of looking at the usage of video solutions both as security or operational solution and the way we help our partners, the system integrators and manned guarding companies, to propose them to their clients. I represent AZiTrend as the Sales Manager. I am an economist by education, with high experience in the security area since 2006. Throughout my career, I have passed from operational roles, both from the end-user perspective or from the services provider, to management of a regional guarding company and sales of security services. All of this time, besides gathering experience, I have always tried to find the best solution in providing the services to the clients and winning the contracts with proper pricing and smart solutions. By mixing the technology available at the time and manned guarding, I made my first steps in that direction. After I saw the technology and the way AZiTrend is designing their new proposals for the market I understood that, the concept represents exactly what I was looking for in the market, and provides answers to all my previous questions, so I joined the team five years ago.

a&s Adria: In numbers, how long is AZiTrend Distribution in business, how high is your yearly revenue, and how many employees do you have? To achieve this, you went through some important milestones, what were they?

Hriscu: AZiTrend has been active in the security market for more than six years. Since then, the development of Security as a Service started to grow, together with the vision of using the video surveillance system for the optimization of operational or business processes. Driven by these goals, with a highly optimized team of 11 employees and other outsourcing software development companies, we have managed to reach 3 mil euros yearly revenue in the Romanian market.

Of course, some milestones have been recorded over the years. We had our first participation in an exhibition in 2016 at the Romanian Security Fair. In 2017, we completed our first project of AZiGuard perimeter guarding for a network of 32 bricolage hypermarkets. The project included: ensuring the perimetral protection of the location; integration with the manned guarding company dispatch; automatized vehicle transport access in the parking places during the night; automatization of the access at the main gate between the time the first employee came to work and the time the store was opened for the public; budget optimization, where we managed to provide a 25% reduction of the expenses for the security from the following month. The project stands for more than 5 years, during which the manned guarding service prices went up by at least 20-30%, so the benefit for the client got higher during that time, with better margins for our partner, the guarding company. These are the types of projects that define our way of work and add value to our activity, whether we refer to logistics, retail, production facilities, manned guarding companies, or systems integrators.

In 2022, we exhibited at our first international exhibition, the Adria Security Summit 2022, which we consider as the open road to the international market. The experience confirmed our trust and understanding of the market, so we plan 2023 to be the year when we consolidate this position.

a&s Adria: You are the exclusive distributor of several companies that deal in different fields of security. Do you distribute them solely in Romania or in other countries as well?

Hriscu: The way we approach the Romanian market differs from our approach to the international markets. The main goal of the company is to provide the core of the solution, as the software and the hardware part which helps the software to run as a software/hardware composition. We believe, for the international market, that we should provide the things we are good at, and these are software solutions for optimization in different industries via video surveillance systems, VMS applications, video analytics, and artificial intelligence.

a&s Adria: AZiTrend is primarily a distributor of integrated security systems. But, as you stated on your website, your professionals also “design the most innovative and efficient surveillance systems, which include both state-of-the-art equipment and integrated software platforms”. Having that said, what services do you actually offer to the market?

Hriscu: Our way of seeing things is: “Tell us what you do, and we tell you where we can optimize”. The pricing of a solution is not about what it costs, but what its value to the client is. In other words, if the solution has pricing, and the client optimizes much more, then the selling process is much easier, but, of course, with much preparation work. This time, for the international market, our goal is to provide our partners, such as distributors, system integrators, or manned guarding companies, with the core solution in terms of VMS platform and video analytics, so they can provide their clients the added value and optimizations they need.

Take, for example, a large warehouse with tens of thousands SKUs in stock, and hundreds of thousands of scannings each day, which represents the reception of goods, delivery, moving, and package assembling. If you need to document one type of event or an entire delivery with video proof, it might take you anywhere from a few hours to a few days. With the integration of the Warehouse Management System and AZiGuard Video Management, this task can take no more than a few minutes to a few seconds. Thus, a warehouse can offer a more confident service to its clients and achieves an increase in sales. For a system integrator, this is a new way of securing projects. Expand the example with cross-selling alternatives, such as supplementary cameras or other types of solutions dedicated to the logistics industries such as perimeter protection by AZiGuard video analytics, and transport management system integration for access control of the transporter vehicles in the time frame they are allowed by the costumers. We want our clients to use our solution in their operational processes, and in their security activities, so they can make their services better, faster, and more profitable.

a&s Adria: The center of AZiTrend’s integrated security system is your own software platform for video management and analysis – AZiGuard. You market it in a way that it is “characterized by high flexibility and infinite automation possibilities, which transforms the information of the existing or new video system into an interactive and easy-to-use system”. Can you elaborate on this? What do you mean by high flexibility and interactiveness?

Hriscu: The user experience is very important and it is transferred into speed, control, a significantly larger number of events to be processed, efficiency, and profitability. Let’s take an example of a dispatcher in the central dispatch of a security company. His main responsibility is to check the alerts that come from the system as object recognition (man, vehicle, bicycle/motorcycle), confirm the event, send the intervention team, discourage the burglar from causing damage, inform the intervention teams where to first check and also, just as important, to protect them from being surprised by the burglar. We see that the centralized dispatcher gains more importance in the process as the operational activities are more related to centralized activities and artificial intelligence, rather than the local activities. That also translates into speed, efficiency, and financial optimization. Everyone will benefit from the technology adoption. The employees will do more specialized work, which will be paid better, the security company can protect a larger number of places, with fewer employees and higher profitability, and the clients will pay less for the security service of a higher quality.

In terms of proactivity, this can be an example of the high accuracy and proactiveness of the AZiGuard system and the way it alerts its users or beneficiaries about important events in their activities. This is how they can concentrate on their work and only check the events. This is how they can manage a large number of information, cameras, and locations. In terms of flexibility, maybe one client needs to alert the store managers by audio headphones to open new selling points, while the others may want to generate an audio alarm in that case. Maybe a client wants to be alerted after seeing a queue of five people, while others react to a queue of three people. Maybe some clients want to receive the events in their own BI platform to integrate with other information from the business they manage. A guarding company might want to manage their alerts from their existing event management platform, or they want to manage only the video events with a dedicated dispatcher. We provide this level of flexibility in terms of programming how the events are sent or processed, and that makes AZiGuard a very flexible solution.

a&s Adria: AziGuard’s modules Active Search, Multi Search, and Event Search definitely ease the work of security staff and investigators. In what way is that?

Hriscu: From the beginning, the AZiGuard Video Management platform was designed to be a fast way of using the video feed from the cameras and finding important events very fast. These functionalities are available in the base licensing even in the VMS platform, without the need to access complicated events by video analytics. Imagine that you are a local dispatcher and you have to check in the parking space of a car that was scratched. Of course, you don’t know when to look because it wasn’t moved for 1-2 weeks. Sometimes, this can be a massive task for the dispatcher. But, what if you could select the interest area and search exclusively for movements in that specific area from the last hour, day, week, or whenever you want? Yes, this feature is available. The dispatcher takes a few seconds to find this type of event and just by watching short movies with movements in the area, he will detect the event very quickly. All this is available in the AZiGuard VMS platform with the basic license, and functions even on AZiGuard NVRs. It’s the simplest and cheapest way of buying AZiGuard VMS.

a&s Adria: Depending on the events available, different work scenarios can be created, for creating notifications or searching for them in the video archive. What events based on automation can be done?

Hriscu: As long as we have the information in the VMS platform as an event, we can program different kinds of scenarios in the dedicated module of automatization, where Python language can be written. The types of events may be VMS-related or hardware-related (from the camera) – advanced motion detection, sabotage, camera loss, fire and smoke detection, sound detector, in/out signals; video analytics related – object recognition of humans, vehicles (five types), bicycles, protective helmets, protective vests, body position, LPR, Aruko code, color detector, people counting, products on the shelf; 3rd party software – the database from the Warehouse Management System, the database of POS system, the database from a Transport management system; 3rd party equipment – alarm system, fire detection system, the arm/disarm or alert event.

Now let’s look at some examples. A queue management system in a pharmacy, a network from a few locations, up to several hundreds of them. They wanted to be alerted when the number of clients in the queue exceeds the maximum number, so they will know when to open a new selling point. The specificity of pharmacies is that the queue is not as in the hypermarkets, in one line, but rather spread out in one area. So a scripting scenario was created to solve this client’s need: the system detects the number of clients in the queue and the number of pharmacists present. If the average number of clients per pharmacist is more than three, the third pharmacist is called at the POS. If the maximum number of pharmacists has been reached, the procedure stops. The client also has a schedule of the working hours, in the way that one part of the program can have only two employees, and the other three or four. So the script should adapt to the client’s working schedule, three times per day. Also, the information on the number of clients in a queue is provided in the client’s BI, and he receives the information as graphical analytics, so he can predict the number of employees in every location. We can help our partners to put into action special dedicated requests, so they can win the projects with our solution.

a&s Adria: With the help of VMS software and AZiGuard Video Analysis, AZiTrend welcomes security companies through the concept of an electronic guard, based on the recognition of objects in video images. These events, managed by a powerful video management system, constitute an entirely innovative security concept. What are the four steps that constitute this concept?

Hriscu: In the development of AZiGuard, electronic guarding, we identified four major steps. The first one is to recognize the event, through the AZiGuard video analytics. The recognition of the object is server-based, so the more powerful resources and the stronger the software, the higher the accuracy. The second step is notification. With the VMS platform, the dispatchers have a powerful tool to receive and work through the events. The confirmation of the event is the third segment. The dispatcher will confirm all the events through video verification. This way he can send the intervention teams only in real alarm situations with minimum cost to the manned guarding company. At last, we have the intervention. Once the event is confirmed, the intervention team is sent to the location. Other tools are in the hands of the dispatcher for easy following of the intruder, with a speaker system through which he can communicate with a person that is seen and advise him to leave the location.

a&s Adria: What are the advantages of using the electronic guard concept for security companies?

Hriscu: Real advantages can be extracted by using technology or by mixing technology and manned guarding, depending on the location profile. From the client’s perspective, it’s about a lower budget. From our experience, the clients can receive a minimum of 25% reduction of the budget spend for perimeter security, together with a higher security level ensured. From the guarding company’s perspective, we present an instrument that can help them to ensure a higher and safer level of security for their clients. Also, they have a higher margin on the service. The cost of the intervention is highly reduced because the intervention teams are only sent to the real events by video confirmation. Overall, the dispatching costs are very efficient. One dispatcher can easily monitor the events from 1,000 cameras. The system can also be integrated with the CMS platform so that the dispatchers can work in a single platform, both for alarm monitoring and video monitoring.

a&s Adria: AZiGuard can be expanded and adapted to any type of specific location and requirements. In what verticals have you used your VMS so far and for what important clients? It was interesting to find out that some large high-scale installations are connected to your software platform. Can you tell us about those installations and how many devices are connected to AZiGuard?

Hriscu: We direct our products by verticals, mostly applied for retail, logistics, industrial (production units), banking, and HoReCa. The retail industry, as they are a large network of locations, has the most suggestive scale. For example, the largest retailer in Romania, with more than 1,000 stores, is using the VSM platform to manage the cameras from four central management points in the country. This is an example of rather small types of locations, around 16-32 cameras by location. Other examples are networks of 23 locations with 250 plus cameras or 32 locations with more than 150 cameras.

In the logistics industry, the scale and feature of the most important projects were to integrate the Warehouse Management System with the images from 370 cameras, so that the dispatchers can find transactions very easily. Other features were introduced to complete the logistics vertical, such as perimeter protection, transport management integration, and video management at the base. In industrial fields, besides large perimeter protection, we can specify the health and safety features, with a helmet or protective vest recognition, man down system, and identification of proper health and safety training for each person present in different sections of the factory.

a&s Adria: At the end, you have exhibited at the latest Adria Security Summit in Zagreb, with a focus on presenting AZiGuard to customers from the Adriatic region. Did you manage to raise interest in your integrated electronic security system? Do you already have partners in the region or are you looking for new ones?

Hriscu: Our participation in the Adria Security Summit was our first exhibition outside the country and the result was very promising. We’ve gathered a lot of interest and started some new discussions in terms of partnerships, so we plan for 2023 to confirm our first partnerships in the area. We put all our efforts into helping our partners with interesting ideas to help them win their clients. And we can only do that by building a trusted and reliable relationship with them, so our presence will be increased in the market.

Interview: Hasna Nahdi, Export Manager, PASO

a&s Adria: Mrs. Hasna Nahdi, thank you for sparing time to talk to our readers. Could you please present yourself, your educational and professional background, and what business area are you in charge of at PASO?

Hasna Nahdi: First of all, on behalf of the PASO team, I would like to thank your team for dedicating space in a&s Adria magazine to present our company through this interview. We want to once again give our thanks for the great hospitality and dedicated support they have shown to us during the Adria Security Summit in Zagreb. In the field of audio business in general, I am in charge of PASO’s worldwide international markets. A mix of my education in the fields of electrical engineering and business economy allowed me to get a job at the PASO company which I consider to be the temple of electronics and audio in general. I am very proud to be a part of this team for more than 18 years during which I played different roles.  For 12 years I worked in the pro audio and MI fields of businesses. Therefore, I can confirm that I have 30 years of experience in the audio industry as well as in taking care of international markets.

a&s Adria: PASO’s inception goes way back, to 1973, when your company was established by the managerial and technical staff previously employed by the historical Milan-based company GELOSO, a leader in the market of professional sound broadcasting. A lot happened in almost fifty years. What were the most important milestones for PASO and what kept you at the forefront of the Italian PA/VA market? In 2012, you were acquired by FBT Elettronica, what did you gain by that?

Hasna Nahdi: Yes indeed. A lot happened in almost 50 years. From GELOSO, PASO did not only inherit the intellectual property of brands and patents but, above all, technical know-how of high value. This made PASO one of the main Italian brands specializing in the production of amplifiers, mixers, microphones, and speakers for the public address, i.e for 100V field, and now a leading company within EN54-16 and EN54-4 certified voice alarm systems manufacturers. In fact, our 50th anniversary – a matter of great pride for us – will take place in 2023 and it will be the occasion for special celebrations and events.

In 2012, FTB’s acquisition of PASO did mark a new era by building a kind of bridge between two companies: FBT, a well-established Italian brand within the pro audio market, and PASO with a legacy in the Italian Electronic industry with a strong history within 100V – which is considered a niche within the audio field. Together, FBT and PASO are putting their respective synergies while each one is safeguarding proper identity and relevant peculiarities. PASO is likely much more present in the markets and events focusing on safety and presiding over themes involving EN54 standards and voice alarm systems evolution within the global market, while FBT is focusing on events and markets where the spotlight is on pro audio and MI.

As our CEO Antonio Faccioni said talking about both companies’ plans and strategies: “We will propose a sort of common platform where the solutions developed by the two companies will converge according to their respective peculiarities: we will therefore be able to approach even very complex projects both for professional sound diffusion and for purposes related to EVAC.” This is what we are working on and how we are putting together our synergies, and respective R&D activities to plan our strategies and future.

a&s Adria: Investing in the Lainate plant in 2017 was definitely one of the turning points. What did you gain by revitalizing internal production? Did you achieve the level of producing all electronic components locally?

Hasna Nahdi: In fact, highly important investments in our factory were dedicated to our production processes, like the automated line for SMD circuits equipped with two pick & place machines, a brand new automated vertical warehouse, with the storage and recovery of the materials necessary for the various work processes of production. This has led our company to cutting-edge industrial technology 4.0 and enabled us to have stronger and better control of the different steps of our key devices manufacturing i.e to be in the position to carry on in-house production of the main electronic parts of our key devices.

a&s Adria: Could you briefly present your product portfolio? What are your core technologies?

Hasna Nahdi: Our product portfolio is subdivided into two main macro segments of products: PA sound broadcasting, with a vast range of pure public address solutions and conference systems.  The second macro range is our voice alarm portfolio; with EN54-16 and EN54-4 certified electronics and a wide variety of speakers certified according to EN54-24 standards. Therefore, our core technology is, undoubtedly, electronics and how electronic block systems can sound while complying 100% with the EN54-16 and EN54-4 standards.

a&s Adria: An audio distribution system in high-traffic spaces requires a combination of stringent safety regulations and a high degree of versatility of use. PASO has accepted the challenge to respond adequately to the EVAC sector needs and demands with two smart voice evacuation systems: PAW5500-VES and PAW51K-VES. What are the features of these two systems in terms of nominal power and the number of alarm zones to manage, as well as all other functionalities?

Hasna Nahdi: Our VA compact all-in-one solutions feature a wide line-up of devices, amongst which we can list two families. EN 54-16 & 4 certified PAW5500-VES is specifically designed for wall-mounting and equipped with control units. It has a rated audio output of 500 W overall, distributable freely among the zones with a maximum limit of 250 W per single zone. The system is capable of managing 2 to 6 alarm zones and that’s the reason why it comes with 3 different models: PAW5502-V 500 W (2 zones), PAW5504-V 500 W (4 zones), and PAW5506-V 500 W (6 zones). Each zone is driven by a single amplifier, as well as a remote microphone station and controlled inputs to be connected to a central fire-fighting system.

The PAW51K-VES 1000 W compact wall-mount EVAC range includes two integrated voice evacuation systems for emergency purposes, designed specifically for wall-mounting: PAW51K4-V 1000 W (4 zones) and PAW51K6-V 1000 W (6 zones). It is possible to connect up to 15 devices of this model one to the other or mix these 2 families’ devices between them and manage 90 zones!

The features of these devices include: backlit 4.3” display with touch screen for selecting the alert and evacuation zones and enabling navigation for adjusting volume levels, configuring the equipment and viewing failures; handheld fireman’s paging microphone, sending out pre-recorded evacuation and alert messages, as well as broadcast messages (i.e. spots, announcements, sound bells); 7 off-controlled input contacts, configurable for playing the evacuation and/or alert messages; 1 off music input for sound sources; 1 off auxiliary input configurable as a music source, a call with precedence activation or a call with automatic activation (VOX); 3 off configurable relay outputs; double A+B output for each zone; event log (list of failures and/or alarms that have occured in the system); double link line for connecting other PAW; multilanguages management; 3-band equalization for each zone and music output; optional internal expansion card ACPAW-2IN for two additional music inputs (EXT 1 and EXT 2); optional internal expansion card ACPAW-6IN with DSP for 6 additional music inputs; up to 8 pre-recorded messages can be retrieved from outside through input contacts (of which 2 fixed emergency messages plus 6 that can be classed as emergency / evacuation / broadcast messages); up to 16 PMB106-G and/or PMB112-G broadcasting microphone stations can be connected; up to 4 of the above mentioned stations can be set for local calls only (zones of the card-cage to which they are connected); up to 4 PMB132-V and PMB132/12-V remote emergency units can be connected or (as an alternative) up to 2 touch screen TSB8500-V units, etc. These devices are all-in-one compact voice alarms with 1000W or 500W, but they also represent a perfect audio matrix.

 a&s Adria: At this year’s events, you presented the latest Audio Network Adapter ACNET. How can it be used with PAW5500-VES and PAW51K-VES and connect remote microphone stations to the PAW?

Hasna Nahdi: The latest Audio Network Adapter ACNET we have introduced this year can be used with PAW5500-VES and  PAW51K-VES and can connect remote microphone stations to those two systems. ACNET can transmit and receive RS485, convert audio ADC and DAC, pack and unpack digital audio and serial data using a proprietary IP format, and send and receive IP packets. ACNET is able to perform a complete transparent cable substitution over the network. This is a point-to-point PAW to PAW allowing communication via LAN network through RS485+LAN or LAN-only connection. Double link connection enabling system status monitoring, faults monitoring, messages reproduction over the link connection, USB audio player (.wav, .mp3 format), and web server interface.

a&s Adria: For smaller applications such as offices, restaurants, and shops but also private homes, you have designed PAW Mini. What are the features of this “light” integrated voice evacuation system?

Hasna Nahdi: PASO PAW Mini family of all-in-one evacuation devices is amongst our R&D exploits for the simple reason that it was finalized during the hardest period of lockdown. This range of compact systems has been realized thanks to our dedicated listening to what the market demands from voice alarm systems – solutions easy to install, but still compact, all-in-one, and small in size. PAW Mini is a family of five models, characterized by a highly reduced and compact cabinet size. It features two different audio-rated power settings: 100W for PAW1101-V, PAW2101-V, and PAW2102-V models, and 250 W for PAW2251-V and PAW2252-V models.

Like the previous PAW, PAW Mini features a 4.3” touchscreen backlit display for alert & evacuation selection, levels adjustment, settings, and failures visualization. On the front panel, there is a fireman’s monitored microphone, a button for operating the emergency system with an LED indicator, and a reset button. And, of course, it features sending pre-recorded evacuation and alert messages, monitored control inputs, AUX input for external sound sources, configurable relay outputs, and the possibility to connect paging units or remote emergency microphone units. It can manage 1 or 2 alarm zones via local controls, a remote microphone station, and controlled inputs. PAW Mini range is an ideal solution for small evac installations, like shops or restaurants, and does represent a very cost-effective solution because of the good combination of quality and price. We can confirm that in some international markets this family of devices is having a great trend.

a&s Adria: As stated, these systems are EN54-16 and EN54-4 certified. What do these standards stand for, and what are their benefits for installers and end users?

Hasna Nahdi: Discussing the EN54-16 & EN54-4 standards would probably require a dedicated interview but let us try to sum up what these standards stand for. EN 54 describes the minimum quality standards required for fire alarm systems, from smoke detectors and visual indicators to amplifiers and speakers. This ensures that life safety systems function clearly and reliably during emergencies. For example, voice alarms, which deliver pre-recorded spoken messages instead of a siren, are covered by two specific parts of EN 54 [EN 54-16, EN 54-24]. The EN54-16 and EN54-4 standards are part of the European standards linked to the larger world of fire detection and fire alarms. They are referring to the series of electronics and devices built to use audio to manage building evacuation for the complete safety of the people present within the buildings.

The manufacturing of these devices has to be carried out in accordance with specific rules. The production process has to be supervised by third-party laboratories and inspected regularly, while the devices must always be certified by an authorized third party. The device has to be identified by a CPR number. We can perfectly understand the level of tranquillity and peacefulness when we are in a hotel, a mall, or in any public place knowing that there are always the necessary devices to detect fire risk and safeguard our lives and secure our safe evacuation in case of emergencies. This does matter since our safety and our lives are most precious.

As for the installers, besides the specific certifiable skills they have to have, they are compelled per law to be identified as “fire field installers” to manage the maintenance of these installations. The relevant maintenance is mandatory per law to be carried out once every six months. Therefore, it requires certifiable skills but it is also an opportunity to widen the business opportunities by regularly doing the necessary maintenance.

a&s Adria: “Our main idea is decentralizing the EVAC system, something that years ago was not conceivable,” said Roberto Megazzini, Paso’s Sales Department Director. What does that mean in practice?

Hasna Nahdi: In fact, in the past when you were designing a big paging system, you had your big rack or central system located in a control room, from which you managed all zones. An EN54-16 certified voice alarm system decentralized per building or per facility allows you to isolate the area where you could have any kind of fault or specific alarm or specific maintenance activities while the rest is perfectly working as per the standards and as per the whole design concept and specification. In fact, you can use our PAW and your design will include, for example, a certain number of PAWs per building that are connected. If for any reason one of these PAWs is disconnected, the other PAWs will continue to operate perfectly.

a&s Adria: You are developing new amplifiers using modern GaN technology (gallium nitride or gallium nitride). How does that help you to obtain high performance? How did it reflect on your latest PMG1000-V Class D amplifiers 1000 W?

Hasna Nahdi: We have developed and started marketing our new GaN amplifiers 1000 W Class D equipped with a modern GaN (gallium nitride) technology, which provides high performance in terms of efficiency and space-saving. The main innovation relating to the use of this cutting-edge technology in the field of PA audio applications is the extreme speed and the ability to operate with high-voltage mains. The features of these new cascade devices allow operation at 300 volts with frequencies of 400 kHz at the same time – despite the extreme operating conditions. Thus, they can offer better performance than those of the equivalent silicon components, which have the limit of working with lower voltages. With these devices, it is also possible to have a 100-volt transformerless output line with a single amplifier (not two bridge amplifiers, as it is the case with silicon devices).

a&s Adria: Could you present some of the latest and most successful case studies, like the implementation of the EVAC system at the new Asclepios 3 Pavilion of the Bari Polyclinic? What verticals do you generally focus on?

Hasna Nahdi: Some of our latest case studies are the Vetra building located in a very famous area of Milan, Fundació Catalana de l’Esplai in Barcelona, Haapavesi High School in Finland, FAO Schwarz store in Milan – the Sign building in Milan, Hospital of Al Madinah Al Munawwarah in Saudi Arabia, the 17th century Church of S. Monica in Cremona in Italy, the Mall of Sanremo in the Ligurian Riviera of Italy, etc. In general, our VA/PA main vertical markets are health, hospitality, retail, education, and industrial infrastructures.

a&s Adria: What else can we expect from PASO in the near future? Do you plan to open new offices in Europe?

Hasna Nahdi: We will continue expanding our export network and we are continuously developing our VA solutions in accordance with EN54 standards. EN54 are European standards but there are differences even within Europe from one country to the other. Thanks to good listening to the market, PASO R&D is always adapting and customizing our main solutions in response to some local and specific additional requirements with regard to local standards and global legislations. We act locally and go globally through strong partnerships to which we always transfer specific parts of our expertise.

a&s Adria: How do you intend to increase your share of the Adriatic region’s market? Are you looking for partners? Was Adria Security Summit a good opportunity for you to meet new potential customers?

Hasna Nahdi: Adriatic region is a very specific area composed of small markets within which export exchange is not always smooth. Thanks to our second participation at the Adria Security Summit, we progressively started generating interest around our brand and solutions. We hope that this trend will continue and will be converted into real and specific opportunities and businesses. Besides those two countries in which the Summit was held, we are not present in other countries of the Adriatic region. We do believe that your conference and exhibition has a very good format and can only help us establish our brand in other markets.

Security 50: Top 10 manufacturers in surveillance and access control

2022 saw marked growth in the market for majority of the Security 50 companies in video surveillance and access control. However, the year is ending with the physical security industry dealing with issues that will point to major challenges in the year ahead.

Looking at this year’s Security 50, we can see the Top 10 companies remain somewhat consistent. The top 10 biggest manufacturers in video surveillance and access control (based on 2021 revenue of security product sales) is Hikvision Digital Technology, Dahua Technology, ASSA ABLOY, Axis Communications, Motorola Solutions, Uniview Technologies, Tiandy Technologies, Allegion, Hanwha Techwin and Aiphone. Of note, Hikvision’s 2021 revenue exceeded the US$10 billion mark, standing at $10.1 billion, growing 16.9 percent from 2020’s $8.64 billion.

Security 50 2022: Top 10 manufacturers in video surveillance and access control

“We believe that technological innovation is the key element for successful development of a tech company. Our innovative technologies, products and solutions are creating values for customers, and helping many different people and types of organizations increase safety, operational efficiency and sustainability. We are glad to see that customers demonstrate long-term trust in us in return, which supports growth of the company,” said Frank Zhang, VP of Hikvision Digital Technology. “We have noticed that more external uncertainties emerged last year and this year, as inflation, interest rate hike, and exchange rate changes are affecting growth of different economies. Through optimizing our operations with enhanced flexible manufacturing processes, logistics and localized service, Hikvision has successfully maintained product delivery efficiencies. And we have kept consistent investment in technology research and development, with the R&D spending accounting over 10 percent of our total revenue in 2021. All these efforts ensured continued positive development of the company.”

Six companies are new entrants to Security 50 this year. They are: Dnake (intercom), Jovision (video) and EVETAR (lens), all from China; as well as Evolv, a U.S.-based screening solutions provider; Ava Group, an Australian risk management solutions provider; and Webgate, a Korea-based video surveillance company.

For Chinese companies, a total of 15 are in Security 50 this year. Among them, Hikvision, Dahua, Uniview and Tiandy are within Top 10. Most Chinese companies reported 2021 growth, indicating impacts from U.S.-led trade sanctions on Chinese goods were limited.

It’s interesting to note, however, that a lot of Chinese companies reported year-over-year revenue declines in the first half of this year. Hikvision, meanwhile, posted a total net profit of $848.6 million in the first half of 2022, down 11.14 percent from the first half of 2021, though its 2022 H1 revenue increased 9.9 percent y-o-y.

Yet this has more to do with China’s own domestic COVID and other issues, rather than the trade conflict itself. “Much of this is down to conditions in the Chinese domestic market rather than tariffs and trade restrictions in the US. The first half of 2022 has seen restrictions on movement in several major Chinese cities due to the COVID-19 pandemic. Government spending has therefore been diverted away from other areas and towards battling COVID-19 and supporting its economy during lockdowns,” said Josh Woodhouse, Lead analyst and Founder, and Jon Cropley, Principal Analyst, of Novaira Insights.

Speaking of U.S.-China trade conflict, all eyes are watching whether Taiwan security makers have benefited. Upon an initial look, this is indeed the case as certain Taiwan companies, including Dynacolor, Hi Sharp and GeoVision, reported good growth in 2021. Yet given Taiwan manufacturers’ smaller scale and capacity, whether they can continue to benefit from OEM orders transferred from China remains to be seen. In fact, most Taiwan manufacturers have re-strategized to make niche, value-added solutions in, for example, smart transportation, and that has been one of the contributing factors to their successes.

2021-2022 review: Growth returned to physical security market 

Looking back at 2021 and 2022, indeed growth returned to security due to an easing of the pandemic. “With more availability of vaccines and treatments for COVID-19, many businesses were able to start pivoting their business strategies towards creating a safe environment for employees and customers to return to physical spaces, while also maintaining (and even expanding) the remote solutions implemented during the height of the pandemic,” said Danielle VanZandt, Senior Industry Analyst for Security at Frost & Sullivan. “For many security technology markets, spending and investment opportunities returned back to their pre-pandemic levels, with some technologies witnessing further gains due to ongoing digitalization initiatives—markets like biometrics, access control, video analytics, and digital intelligence all witnessed significant growth this year.”

Across the global markets there is a solid underlying market growth … One driver for that is the overall increasing interest in security and network video solutions. Another driver is that of technology development. The demand for our products increases as we develop new and more innovative products and solutions to address customer demands,” said Ray Mauritsson, CEO at Axis Communications.

2023 forecast: Challenges lie ahead for security industry

Just when we thought the pandemic nightmare was about to be over, a new set of challenges and difficulties have emerged, impacting various industries including security. A post-COVID surge in demand, as well as the aftermath of regional conflicts, have triggered the worst supply chain crisis in a generation. This has also partially contributed to out-of-control, across-the-board inflation in a range of areas, from energy to food to consumer products. To curb inflation, interest rates have been hiked to the highest in years, raising the spectre of recession. Indeed, the world we knew pre-COVID has changed, and, despite a return to growth in security, the above-mentioned challenges bode not so favorably for the industry in the coming year.

Supply chain issues 

As mentioned, the security industry is now faced with certain challenges, one being the worst supply chain crisis in decades. “As with many other companies, we have been affected by supply chain issues. Lockdowns and other disruptions caused by the pandemic was one factor. The shortage of components, which was worsened by the pandemic, was also a major factor. Product re-designs and spot market component purchases has been two examples to minimize the effect of supply shortages. Longer lead times led to slower growth than expected in 2020 and 2021. As we now are starting to see improvements in our supply chain, we are expecting to return to double-digit growth,” Mauritsson said.

Of all the component shortages, semiconductor shortages were particularly severe. This, then, has produced ramifications for security players. “Restrictions on movement due to the COVID-19 pandemic caused a surge in demand for consumer electronics. People required laptops to work from home and for home-schooling and spent more of their income on home entertainment. All this equipment required semiconductors causing huge growth in demand for them. Video surveillance equipment vendors were just one group competing for supply of semiconductors. Car manufacturers and smartphone producers were among the other groups,” Woodhouse and Cropley said.

“As far as components, one of the hardest hit technologies was in chips for any type of processor for analytics, intelligence functions, or edge capabilities. These were high in-demand solutions from all customers, so securing components in a timely manner became a key differentiator for projects pitched and won over the last year. Security vendors who were able to diversify their supply chains to secure these components and not feel the impact of adjusted logistical routes globally found themselves to be the ultimate winners,” VanZandt said.

Inflation 

Inflation is also now affecting a range of industries including security. “The price of video surveillance equipment is now being impacted by inflationary pressures in the wider economy. With utility prices, labor costs and raw material costs all rising quickly, video surveillance vendors will be forced to pass on cost increases to their customers in the form of equipment price increases. The average price of a network camera is forecast to increase in both 2022 and 2023,” Woodhouse and Cropley said.

Amid the price increase, security players had to re-strategize and think of ways to retain customers. “Inflation has caused costs to raise across the board and security technology components were not an exception to this. Many vendors and integrators did have to increase their prices in order to counter this, but they turned towards offering more flexible payment models for customers, as many projects did have longer timelines than they typically would,” VanZandt said. “Additionally, much of the industry focus has turned towards enhancing the overall customer experience including offering more personalized service models. Not only does this service-based approach fit with the overall trends of the industry, but it also helps vendors to prevent significant levels of customer churn.”

Other challenges

Geopolitical conflicts in certain parts of the world have also taken a toll on security players. “The ongoing geopolitical issues that we see is of course causing concern and uncertainty. For instance, we have, as did many other companies, suspended our business operations in Russia due to the invasion of Ukraine,” Mauritsson said.

The specter of potential new data privacy regulations globally also continues to impact many new analysis and intelligence capabilities across the security industry. “Because of this, vendors must build any new solutions with the inherent privacy features already mandated in other regions or countries or have the inherent flexibility in their solution design that they can make quick changes in order to meet any new requirements that come into play,” VanZandt said.

Growth prospects murky for physical security in 2023?

Indeed the security industry is seeing growth return this year. As for next year, things look more uncertain.

“In the first half of the year, our overseas business still maintained a rapid growth, thanks to the company’s years of deep-rooted overseas efforts. It also continued to promote business localization strategies, and improved the global supply chain and various supporting systems. Business opportunities in Asia-Pacific, Africa, Latin America, and the Middle East are relatively optimistic; but there are also regions with relatively weak growth,” said Fu Liquan, Chairman of Dahua Technology. “Looking forward, overseas businesses will continue to face regional factors, inflation and other objective conditions, but the global market is vast, with opportunities and challenges coexisting, and there is still growth potential in the long run.”

Amid the challenges mentioned earlier, there is likely to be a correction in the market, impacting growth.

“The world market for video surveillance hardware and software is forecast to grow 11.7 percent in 2022. It is forecast that economic problems will impact both public and private spending on video surveillance equipment in 2023. At the same time, inflationary pressures will persist. The world market for video surveillance hardware and software is forecast to grow 6.4 percent in 2023,” Woodhouse and Cropley said.

“While I don’t expect that 2023 will be a total downturn in overall industry growth metrics, I do expect that it will cause a market correction, where growth metrics go from their high double-digit figures, and decrease back to a more sustainable, but significant 8-9 percent year-over-year,” VanZandt said, adding while challenges remain, they also bring opportunities.

“Inflation concerns, supply chain challenges, and instability in global energy markets is all causing businesses to pause many new security investments until they can see what the final impacts could be to their budgets and bottom lines. This does offer opportunities for security vendors to work that much closer with their existing customers in order to identify ways that they can augment existing solutions already in use, giving vendors feedback on potential new features to introduce or to offer testing of new capabilities with these customers before restarting investment discussions,” she said.

As for security trends for next year, AI, edge computing, cloud and cybersecurity will continue to dominate. Meanwhile, multi-dimensional perception will be another development to look for.

“From Hikvision’s perspective, multi-dimensional perception will be another big trend that will enable the security industry going to the next level. Beyond visible light imaging, we see more perception capabilities, like radar, thermal imaging, x-ray screening, temperature measuring, humidity sensing, and gas leak detection that are being added to security devices and systems, making them more powerful,” Zhang said. “By better ‘sensing’ the outside environment, identifying events, and providing more detailed information, multi-dimensional perception creates new possibilities for video security systems to be used in ever wider scenarios and applications. We are extending our machine perception technologies to the full electromagnetic spectrum, and have developed innovative products and applications that pick up X-rays, infrared rays, millimeter radar waves, sound waves, and temperature variations.”

Top growth companies share their secrets to success

By: William Pao

Taking a look at this year’s Security 50, we can see clearly that growth has returned to the security industry. In this article we spoke with some of the growth companies to see what their secrets of success were.

In last year’s Security 50, something unprecedented happened, with more companies – 28 – reporting revenue declines than growth in the height of the pandemic. Things are different this year: a large majority of companies reported year-over-year growth in 2021 revenue, reflecting what the industry was like pre-pandemic.

“We have experienced phenomenal growth in EMEA both last year and in 2022. Still, it has been a relief for all of us in the security industry to come out of two years of COVID lockdown. Being able to meet partners and customers face to face has been vital for Milestone and our sales in the first half of the year,” said Jos Beernink, VP for EMEA at Milestone Systems.

“Our growth and profitability are accelerating right into 2022, reflecting our continued leadership in specialty RFID applications for the IoT sector. We’re growing substantially faster than any of our segments which means we’re taking share from other companies,” said Steve Humphreys, CEO of Identiv. “Last quarter our RFID revenue grew 41 percent year-over-year. Our premises business grew 20 percent year-over-year. And our total revenue increase grew 16 percent year-over-year.”

Strategizing for growth

In total, 40 companies in this year’s Security 50 reported growth last year, with 28 growing by double to triple digit. The Top 10 companies in video surveillance and access control that grew the most in 2021 were: Evolv Technologies, CP Plus, DynaColor, Webgate, Intelbras, Dongguan Yutong Optical Technology, Motorola Solutions, Gallagher, Hanwha Techwin and TVT Digital Technology.


Of note, Evolv, a provider of weapons detection security screening solutions, reported a 2021 revenue of US$21.77 million, compared to $3.92 million for 2020 and translating into a y-o-y growth of 455.98 percent, due to the company’s effort to add customers and expand into key verticals and geographic markets.
Indeed, these growth figures demonstrate security companies’ strength and resilience amid various challenges presented by COVID. So how did they do it? We spoke with some of the growth companies to find out.

Staying nimble and responsive

Staying nimble and responsive amid adversity is critical. “All told, it’s been a very interesting past couple of years, first dealing through Phase 1 of the pandemic in 2020, and then phase 2 in 2021. It was our supply chain that got us through these years. We were able to get ahead of the shutdown and pre-order 4x our general monthly orders for our main suppliers once we heard the World Health Organization was in Wuhan, China, knowing how quickly China closes when needed. Two days after our orders were placed, the shutdown happened. So having inventory was certainly a major factor, as much as having production teams willing to be in our headquarters building products for customer orders,” said Jeff Burgess, Founder and CEO of BCDVideo.

Value creation for customers

Another key to growth is value creation for customers who can continue to stick to the supplier.

“With the growth of Dahua’s AI implementation ability and its continuous effort in exploring data value, the company has gradually expanded its business from traditional security to enterprise operation and management. By helping enterprises reduce costs and increase efficiency, the value of each client has been greatly improved. The company’s arduous effort in business has promoted the continuous improvement of each client’s value, which is a significant factor that drives performance growth,” said Fu Liquan, Chairman of Dahua Technology.

According to Humphreys, a commitment to value creation is exactly the reason why the company achieved growth even amid the biggest global supply chain crisis seen in a generation.

“The reality is that supply chain shortages haven’t been this bad since 1972. The RFID industry has predominantly been dominated by companies that just want to get a simple design and then crank them out in the hundreds of millions. From a business perspective that’s never been our position, partly because that’s not where the margins are,” he said. “When we go to market, the entire arc of the whole business platform is going in the direction of higher value add solutions. We are comfortable with long sales cycles. We understand customers aren’t even necessarily going to know what they can accomplish when they start out. We introduce a highly collaborative and educational selling process with customers.”

Commitment to technology innovation

Closely related to value creation is technology innovation, which allows companies to deliver products/solutions required by users. “Identiv is designing and delivering next-generation solutions that are enabling the future of the IoT. We’re a technically deep company, which is helping us to get more market share,” Humphreys said. “Technology touches people every day and it’s at our core and that drives across the premises business and the identity business, especially in RFID. Although finding great talent across all departments is a major challenge in security, we have some of the most innovative and brilliant engineering minds in the industry working in research and development. Those engineers are making the technology more deeply embedded, leveraging it more effectively, and then making it totally pervasive so that security is all-encompassing.”

Respecting local laws and policies

For multinationals, respecting local laws and policies is key to ensuring growth in overseas business. “In the face of the current complex and changeable global political and economic environment, Dahua respects the laws, policies and customs of various countries and adopts the approach of ‘one country, one policy’ to meet the requirements of globalization compliance,” Fu said. “The company continues to strengthen the strategy for the localization of overseas employees by building an international marketing and management team as well as localized marketing and service centers to further explore the global market. Globalization and the continuous growth in overseas market will also contribute to future business growth of the company.”
Growth expected to continue
Looking into 2023, most companies expressed optimism growth will continue. “We are very bullish about the security market because AI and Machine Learning open a whole new scale of possibilities, solutions, and integrations in and beyond security,” Beernink said. “At, for example transportation clients like airports, we see that our clients are enormously challenged to keep their operations running whilst challenged on employees and being confronted with much higher passenger quantity. This as an example drives a demand for clever VMS security solutions. Security managers in our markets are challenged to do more with less resources. We at Milestone Systems have great solutions to fulfil that market trend.”

“Over the past twenty years, we have been through tsunamis, memory factory fires in Japan, recessions, and presidential elections. We have basically seen it all, so we always feel like we are ready for anything. As we continue to challenge ourselves to deliver more platforms to the market, such as the Q4 2022 release of our All-in-One NVR and Deepstor high-availability external storage, it will allow us to widen our brand globally. This is also why we are forecasting twenty-percent year-over-year growth in 2023,” Burgess said.