Recognise your strengths

Security Installer: How do you see the IP networking market developing in the short and long term?

Ray Mauritsson: I have a very positive outlook. Growth in this market has been extremely strong at some 35 per cent. Several analysts now expect growth to move up to 40 per cent. These figures are in line with our expectations and would mean that network cameras will represent 50 per cent of total security camera volume by 2007. But we do also see activities in the market indicating that we could be entering a phase of even higher growth. Specific developments include evidence of greater end-user acceptance of IP technology and increased marketing activities from our competitors.

SI: Where is Axis' place in the market?

RM: We are firmly positioned as the clear market leader in the network camera and video server markets (Source: IMS Research 'The EMEA market for CCTV and Video Surveillance Equipment Report' dated January 2004) and are now extending our range to include a network video recorder and new software for improved management, storage and retrieval of surveillance images. Our focus on developing the IP-Surveillance market for more than ten years is now paying off in terms of sales growth.

SI: What new plans does Axis have to help installers make the jump?

RM: We are rolling out the Axis Training Academy courses globally. These courses are customised either to meet the needs of CCTV installers or IT integrators. We are now actively extending our Application Development Partner programme through a number of web-based tools, promotions and initiatives, all of which help installers to make this jump.

SI: How can traditional security/CCTV installers win contracts against IT integrators? What is the best piece of advice you could give?

RM: Security installers need to recognise that their strengths lie in understanding of the requirements and actual installation of security equipment. They win in areas like risk assessment, site surveys, specification of equipment, loss prevention and several other key areas. Ideally they should partner with IT integrators to ensure effective integration with customers' networks to create a highly effective IP-based surveillance and monitoring solutions. But continuing to go alone or failing to up skill internally will spell disaster for installers longer-term in my view.

SI: How does Axis regard the general UK installer knowledge level?

RM: This is hard to gauge. Historically we have seen a resistance from installers to step up to the challenge of educating themselves. I believe that the previous perception of IP being tomorrow's technology for tomorrow is now changing as end-users begin to drive demand. What is clear is that IP is a technology that is relevant here and now in this market.

SI: Do installers respond well to training or are they slow?

RM: Installers are generally very positive towards the Axis Training Academy and all feedback so far has been positive. What we cannot provide, however, are the basic skills. Installers wishing to take the plunge in this market have to invest in the general networking and computer courses that are running and perhaps look to make the next recruit someone with a strong IT background.

SI: Is there a type of installation company which will never use IP?

Installers win in areas like risk assessment, site surveys, specification of equipment, loss prevention and several other key areas …

RM: Yes there will always be some companies that never go to IP, but they will need to make other changes to survive – perhaps by introducing a new service offering or changing their proposition completely.

SI: Are companies leaving IP to the 'young geeks in the office'?

RM: You do occasionally hear about installers that have dipped a toe into IP-surveillance in a relatively low cost way by hiring a junior IT person to help manage IP and networking requests. But without proper empowerment and recognition of these IT recruits supported by a properly defined and resourced corporate strategy, progress towards realigning their businesses to support IP-surveillance installations will be very slow.

SI: How does Axis regard their dealings with traditional installers as opposed to IT integrators?

RM: Dealings are similar, however the type of information that we need to provide for each is very different.

SI: Why are IT integrators said to be winning out over traditional installers?

RM: Reductions of total cost of ownership; 'future-proofing' of the investment; optimisation of existing network infrastructure; improved performance; remote and mobile monitoring capabilities; as well as easy integration into larger building management systems; can all make compelling arguments for IP-based systems over CCTV systems. The fact that most IT integrators are also used to a highly consultative selling process also helps them win out against some traditional CCTV installers

SI: Do IP installers need a particular mindset?

RM: Their consultative approach is perhaps key here. It is important to listen to the customer very carefully, understand what they need and then not blind them with science while explaining how you are going to deliver it. If the installer's response to the RFP is too complicated for the end-user to understand what they are about to buy, that installer is unlikely to win the business.

SI: Does Axis support the idea of independent consultants representing installers as the IT-savvy "face" of the installation company?

RM: A simpler solution from our point of view would be a straight forward partnership with a qualified IT integrator. Having said this, consultants can be used at many stages of the process and are particularly useful for helping to secure a position on tender short-lists to receive RFIs and RFPs for larger contracts. Consultants should not, however, be used to obfuscate or claim capabilities where none exist as this does the industry a clear dis-service.

SI: Are IP-trained installers now demanding higher rates for their wider security/IP skills?

I believe that the previous perception of IP being tomorrow's technology for tomorrow is now changing as end-users begin to drive demand …

RM: Customers will pay for value and defined business benefits and where these can be identified and delivered by IP-trained installers, higher rates and margins can and will be commanded.

SI: Where does the UK sit with IP in regards to the rest of the world?

RM: The UK was an early and heavy adopter of analogue-based CCTV technologies which makes adoption of new IP-based solutions today slower than other parts of the world. At the same time it is a mature surveillance market with many new installations and upgrades going in all the time. As such the opportunities for IP-surveillance adoption in the UK are very significant right now.

SI: How do UK installers compare to those in other countries (a) in their general skills level and (b) in their attitude to IP?

RM: Now that broadband internet access is widely available in the UK the attitude to using this rapid access to do more with the internet is creating a very positive backdrop for more widespread use of IP-based applications like IP-Surveillance. Attitude to IP worldwide is driven by the availability of solid, fast, reliable access to the internet.

SI: Is the UK CCTV market too mature for wholesale IP penetration?

RM: I believe that the transition will take longer, however it will happen as the business and performance benefits are too great to be ignored totally. We are starting to see end-users themselves driving demand for IP-based solutions in consultation with their IT support people.

SI: Which other countries are big potential areas for IP?

RM: We see similar strong growth opportunities for network video solutions in all countries we are operating throughout EMEA, US and the APAC region.

SI: Will IP penetration be mainly via hybrid, add-on systems in the UK? Is this the ideal way to start?

RM: With a huge installed analogue-base, inevitably hybrid or video server solutions will be very important for some years to come. But we do expect that full IP solutions using network cameras will be increasingly preferred in most new installations, partly because of the ready availability of wireless, megapixel and Power over Ethernet network cameras delivering progressive scan rather than interlaced images taking advantage of new screen display technologies.

SI: How long will it be before IP penetrates the access control and intruder alarm sectors in the same way as it has with CCTV?

RM: The access control market has been a faster adopter of IP than the CCTV world because of the relatively small networking resources required to move access control data around. As such one of the first areas of security integration is between access control systems and network cameras. In other words many building managers want to be able to track swipe card holders as they enter and exit to make sure they are who their cards say they are.