Bosch President: Security Integrators Should Embrace IoT
Bosch Security Systems President of Sales Brian Wiser explains the company’s plans to service security systems integrators and more in this Q&A.
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What are your performance expectations for Bosch in 2015?
Overall, we were pleased with the way 2014 ended. We feel pretty good about the market conditions in 2015. We see strong growth potential in our video business. We have some new product launches both in video and intrusion. Although the growth rate for our intrusion business is generally not as high as video, we also have strong growth expectations in intrusion.
Our position in the marketplace means we also have upside relative to how we’ve performed in the last few years. We have high expectations on the video side. We also see our abilities to improve our market position as a big part of that growth as well. With some of the launches that we’re seeing in intrusion we’re happy about that and have an aggressive plan there as well.
What are some key market drivers in the video space?
We definitely see the devices being more intelligent with more processing at the edge. There is improved image quality, decreased network load. There is also a continued demand for better image quality. Improved application capabilities are driving innovations around 4K.
The processing advantage is something we’re really focused on in terms of differentiation. We’re really trying to improve the image quality and trying to improve the data. The intelligent dynamic noise reduction is a strong point of ours. The analytics on the camera are important from our perspective as well.
A big piece too is the integration, the integration with other devices and that plays into intrusion. Integration improves security and adds greater value to the end user. And also the integration piece brings a lot more selling opportunities for the dealer and the integrator when the intrusion panel is integrated with IP cameras. We have the portfolio to do that, so we’re excited about where that’s going.
As you know, a good many traditional-minded physical security integrators are having a really difficult time transitioning their organization to an RMR-based business model. What are your thoughts about where the integration community is right now and what they need to do to remain relevant in the ‘Internet of Things’ paradigm shift?
A couple of years ago, when I first looked at the security space in depth from my IT experience, I saw very few people focused on it, talking about it, thinking about it. There was a pervasive legacy mindset, “This won’t happen to us, we’re in our own place.”
I do think it’s impressive how rapidly the security business has picked up on that and tried to adapt. Now, there’s always going to be a number of players who don’t have the wherewithal or desire or expertise to do that. But we are seeing
some of the midsize to large-size integrators adapt quickly, especially as other people come in and threaten their space. I would say we are behind – by we, I mean the industry and its security integrators – but I think they are rapidly catching up or adapting.
Is getting training from manufacturers helping the channel in that regard?
It’s definitely about training. We provide training in service and recurring revenue models, as well as cybersecurity. We have a cloud offering now which I think is a great example of how especially a central station can offload cost in infrastructure and investment by leveraging our cloud offering or leveraging distribution.
Integrators are starting to make that leap by leveraging what distribution and what manufacturer partners are providing. As you know, the challenge is not just technology change, but it’s a business model change. The business model change is what often gets overlooked. If you’re used to a certain cash flow from product and if that gets disrupted it may take a long time for the service model to catch up. There are also a lot of implications in regard to how good of businesspeople [some integrators] are and how we can help with that. That’s something we have to think about as well.
At Ingram Micro you worked to help IT integrators get a foothold in the physical security space. What message do you bring to physical security integrators about the need to gain and strengthen their networking skill to compete with IT integrators?
It first starts with an understanding that this change is coming. It’s already here and it’s going to be coming even more rapidly. It’s not a question of, “Do I need to do this?” It’s, “When do I do this and how do I become more IT savvy?” One of the advantages IT integrators have is they’ve had to dramatically change their business model probably three times in the last 15 years. They are more adept at being able to adapt.
We’re already seeing security integrators successfully adapt. It starts with understanding where they want to take their business. First and foremost, they need to be the trusted adviser to their end clients.
They need to embrace the training programs and the knowledge provided by Bosch and other manufacturing partners and distribution partners. They need to embrace the business model change involved and understanding technology.
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