| These days, with school safety a high-profile
concern, opportunities for solution providers abound. Security may be
an issue in hallways, stairwells, bus drop-off and pick-up areas, parking
lots, loading docks and playing fields, as well the exterior of the building.
IP video surveillance (IPVS) can handle all of these and more.
As an example, a 2,000-student New York high school recently purchased
a 20-camera starter installation, which covered the cafeteria and athletic
areas. The solution, with a budget of $55,000, was profitable on its own
and created the potential for much more business, says Michael S. Blumenson,
president of Digital Surveillance Solutions, an IPVS solution provider.
Two additional phases are awaiting funding, one budgeted at $60,000 and
another at $80,000 to $90,000.
Such situations are commonplace with IPVS.An initial project can be "an
entrée to customers who will increase their business with you,"
says Blumenson. "They will want to do starter projects, test the
technology.” And then they order more.
| Why IPVS Solutions? |
- PROS: Hot market, mature technology, competitive differentiation
- CONS: The learning curve
- BOTTOM LINE: A profitbooster for security providers
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A Prime Opportunity
Demand is growing for IPVS solutions to monitor areas of buildings and
their surroundings. "Wherever there are concerns about surveillance
and security, people are installing IP-based cameras," notes Joe
Melfi, technical marketing engineer at D-Link Systems. Cost containment
is another factor driving demand: It's cheaper to use an IPVS system than
to employ a small army of security guards. IPVS also offers advantages
over analog video, such as easier installation and the ability to leverage
existing infrastructure.
Blumenson's big market for IPVS is education, which gets an assist from
local government. His home state of New York, for example, reimburses
schools up to $2,000 per camera. This means schools do not necessarily
have to go to their local taxpayers, hat-in-hand, to fund a security system.
To make it easier for schools to commit, Blumenson charges $2,000 per
camera.
Besides education, other prime markets include government and retail,
and solution providers have successfully sold IPVS for parking lots, stadiums,
car dealerships, manufacturing facilities, hospitals and more.Heartland
Technology Solutions, for instance, has installed systems as small as
two cameras aimed at the cash drawers of a fast-food restaurant, and as
large as a 30-plus camera network at a rural hospital. Giant retailer
Target recently replaced thousands of analog video cameras with IPVS units,
so it's clear that IPVS offers opportunities from the very small to the
enormous.
The Do's and Don'ts of IPVS
If you have your sights on the IPVS market, here are some
basic dos and don’ts that you’ll need to be aware
of:
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| DO |
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Ensure
that signs are posted that indicate the area is under surveillance,
and if the area is monitored by audio Why Get Involved? recording,
specifically state so. |
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DON'T |
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Set up surveillance
in an unethical manner (e.g., in private areas such as bathrooms). |
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DO |
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Check local rules
and regulations that govern the use of surveillance systems. |
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DON'T |
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Overlook the correct
configuration settings once the system is installed. |
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DO |
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Make sure your IPVS
solutions are scalable. |
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DON'T |
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Forget about the
opportunity to design protocols and procedures for your clients to
use their system optimally. |
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DO |
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Be sure to offer
your clients the training they need to get the most out of their IPVS
system. |
A Prime Opportunity
As noted, a small IPVS system can lead to additional business -- but that's
only one reason to enter this market. Other advantages include:
- " Stickiness" with customers
- High profit margins
- Competitive differentiation
Arlin Sorensen, CEO and president of Heartland, sees IPVS as a "strategic
tool that allows us to go deeper with our customers." It's also highly
profitable because "there is less competition and the customer can't
shop and compare as easily," he says.Adds Blumenson: "Any integrator
who knows what he is doing with this technology should be able to charge
enough to generate good margins."
IPVS also can separate a solution provider from the competition."This
is not a commodity solution," says Chris Squier, technology solutions
engineer at Ingram Micro. "If you are a security solution provider,
you can use it to differentiate yourself."
In addition, the technology is relatively user friendly and accessible.
IPVS systems are "easy to put anywhere," says Melfi of D-Link
Systems.Unlike analog systems, IPVS uses standard CAT 5 cable, requires
little electrical power (via Power over Ethernet), involves cameras that
are small, and runs on networks that may already exist. Some cameras now
support 3rd Generation Partnership Project (3GPP), which allows users
to view a camera's images from their cell phones. Surveillance doesn't
get much easier than that.
As the technology becomes more sophisticated, new opportunities arise.
Video analytics allow an IPVS system to detect motion and send an alert
to security personnel, but the system can also send an alert when an object,
such as a suitcase, is left behind at an airport. Another use is counting
the number of customers walking past an end-cap display in a retail store.
Such statistics can help retailers set fees for vendors purchasing end-cap
placement.
Getting Started
Not surprisingly, IPVS involves a learning curve. Cameras, lenses, placement
and lighting all must be mastered. Local zoning can also be an issue with
camera placement. But many aspects of an installation are familiar to
network resellers, such as the Ethernet network, servers, PCs, storage
and the software.
And it is a forgiving technology, notes Squier, in that you can tweak
it as you go. Sorensen of Heartland found this to be true when he installed
the hospital system, which was required to store 30 days of video images.
At 30 frames per second, which was the initial rate of video capture,
the system filled the storage too quickly. By cutting the capture rate
in half, he was able to store 30 days of video without adding capacity,
while still providing adequate image quality.
If you're not familiar with video systems, you have two options. One
is to partner with an integrator experienced with video. Or you can build
your own IPVS technical bench. Squier recommends starting slowly, developing
your business and, over time, bringing the skill sets you need in-house.
Sorenson hired an employee who, having worked at a casino, had deep expertise
in video. Hiring him, he says, was "a very good decision on our part."
Solution providers can also bone up on IPVS through Ingram Micro, which
offers regular solutions training and rich pre-sales and technical support.
Ingram Micro's customers can access general information at www.ingrammicro.com/ipsurveillance,
or by calling the Security Help Desk at (800) 445-5066, ext. 76102.
Whichever strategy you use, don't ignore the IPVS market. Its growth
rate is high, its potential for add-on business is impressive, and its
profit margins are likely to make it worth your while.
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