Retail security applications

They say that every choice has a cost. It's a basic principle that, economically speaking, nothing is free. If it doesn't cost actual money, it may be expensive in terms of time, attention and/or effort. These are interesting observations to keep in mind as one peruses the various "free" video management system (VMS) offerings available on the market. Some are provided by camera companies to unify their products into a "system", even if it's a small one. Other free VMS offerings are entry-level versions offered by software companies with the intent of the customer upgrading later to a paid version. For more insights, we asked this week's Expert Panel Roundtable: What is the value of “free” video management systems (VMSs) and how can a customer decide whether “free” is the right price for them?

Market dynamics are changing the U.S. residential security market, creating new business models that better appeal to the approximately 70% of households without a security system. Smart home adjacencies have helped revitalize the traditional security industry, and alternative approaches to systems and monitoring for the security industry are emerging, including a new batch of DIY systems. Growth in the residential security market and its position as the channel for smart home solutions have attracted numerous new entrants. Telecoms, cable operators, and CE (consumer electronics) manufacturers are joining traditional security players as they compete to fulfill consumer demand for safety and security. Connected products also provide a layer of competition as consumers must decide whether having category devices such as doorbell video cameras, networked cameras, and other products suffice for their security. Increasingly Competitive Landscape Smart home services can provide additional revenue streams for the security industry For instance, IP cameras are a highly popular smart home device rooted in security, and Parks Associates estimates 7.7 million standalone and all-in-one networked/IP cameras will be sold in the U.S. in 2018, with $889M in revenues. Product owners may feel their security needs are fulfilled with this single purchase, as such dealers and service providers are under increasing pressure to communicate their value proposition to consumers. Categorically, each type of player is facing competition uniquely—national, regional, and local dealers all have a different strategy for overcoming the increasingly competitive landscape. Smart home services can provide additional revenue streams for the security industry. In Parks Associates’ 2017 survey of U.S. security dealers, 58% report that smart home service capabilities enable extra monthly revenue. Almost half of dealers also note they have to offer smart home devices and services in order to keep up with their competition. While white-label devices are acceptable in some instances, dealers need to integrate with hero products whenever possible when those exist for a category. For dealers who have added smart home devices and services are all potential benefits and good for business Improved Customer Engagement That 2017 survey also revealed 36% of security dealers that offer interactive services report security system sales with a networked camera and 16% report sales with a smart thermostat. For dealers who have added smart home devices and services, enhanced system utility, increased daily value, and improved customer engagement with the system are all potential benefits and good for business. Security has served as the most productive channel for smart home solutions, mainly because the products create natural extensions of a security system’s functions and benefits, but as smart home devices, subsystems, and controllers expand their functionality, availability, and DIY capabilities, many standalone devices constitute competition to classical security. Particularly viable substitute devices include IP cameras, smart door locks, smart garage doors, or a combination of these devices. Products that are self-installed offer both convenience and cost savings, and these drivers are significant among DIY consumers—among the 6% of broadband households that installed a security system themselves, 39% did it to save money. Enhance Traditional Security Self-installable smart home devices may resonate with a segment of the market who want security While many security dealers believe substitute offerings are a threat, some dealers do not find such devices an existential threat but instead view them as another path to consumer awareness. They argue that the difference between smart product substitutes and traditional security is that of a solution that provides knowledge versus a system that gives one the ability to act on that knowledge. A common theme among professional monitoring providers is that a homeowner who is aware of events happening in the home does not necessarily have a secure and protected household. For example, a Nest camera, a DIY product, notifies a consumer via smartphone about events in the home when it detects motion, but only when the notification is opened and identified will a consumer be able to act on the related event. Self-installable smart home devices may resonate with a segment of the market who want security but are unwilling to adopt professional monitoring; however, providers can leverage these devices to enhance traditional security features and communicate the value of professional monitoring.  Smart home devices and features, while posing a threat to some security companies, are a potential way forward to increased market growth Increased Market Growth A key counterstrategy for security dealers and companies is to leverage their current, powerful role as the prime channel for smart home devices. Many security dealers now include smart home devices with their security systems to complement their offerings and increase system engagement. For example, as of Q4 2017, nearly 70% of U.S. broadband households that were very likely to purchase a security system in the next 12 months reported that they want a camera to be included as part of their security system purchase. In response, many security system providers now offer IP cameras as optional enhancements for their systems. Smart home devices and features, while posing a threat to some security companies, are a potential way forward to increased market growth. Security dealers have an opportunity to become more than a security provider but a smart home solutions provider rooted in safety. Provide Status Updates Comcast has entered both the professionally monitored security market and the market for smart home services The alternative is to position as a provider of basic security with low price as the key differentiator. Comcast has entered both the professionally monitored security market and the market for smart home services independent of security. It has discovered that monetizing smart home value propositions through recurring revenue becomes increasingly challenging as the value extends further away from life safety. Since the security industry remains the main channel for smart home services, security dealers are in a unique position to leverage that strength. Value propositions must shift from the traditional arming and disarming of a system to peace-of-mind experiences that builds off the benefits of smart devices in the home to provide status updates (e.g., if the kids arrived home safely) and monitoring at will (e.g., checking home status at any time to see a pet or monitor a package delivery). These types of clear value propositions and compelling use cases, which resonate with consumer and motivate them to expand beyond standalone products, will help expand the home security market.

Last week, the Schedule 84 Suppliers Research Panel participated in reviewing the 2018 contracting year with the GSA Schedule 84 leadership team. Our panel group consists of experienced contractors and consultants meeting for a monthly conference call. Schedule 84 is the GSA Schedules Contract for Total Solutions for Law Enforcement, Security, Facilities Management, Fire and Rescue. Our opinions are part of a research program to provide valuable feedback to the GSA Schedule 84 program and on to the GSA central office. The director of GSA Region 7 Schedules Program, the Schedule 84 Branch Chief and the Category Manager Subject Matter Expert who manages our suppliers' panel gave us their full attention as we discussed the successes of the program, hot topics, problems and the future. We determined 2018 under the Schedule 84 team to be a year of innovative thoughts, cooperative effort and renewed enthusiasm Innovative Review Team We determined 2018 under the Schedule 84 team to be a year of innovative thoughts, cooperative effort, renewed enthusiasm and productive changes building upon the successes of 2017. There was high praise for the accessibility to the Schedule 84 staff. Their consistent quick response to questions and concerns, thinking outside the box and supporting the program by partnering with their contractors was much appreciated. There has been a renewed spirit of partnering to cooperatively bring the best to agency customers. It seems to be working as per the Center Director sales are growing for GSA Schedule 84. Advocating For The Security Industry In my experience, business development starts with the Administrator from Region 7 in Ft. Worth, TX. As the annual Schedule 84 Industry Day at the SSAC begins he is shaking every hand and passing out his cards looking folks right in the eye asking, “how can I help you?” They have the best practices and most organized paperwork. The SSAC director has chosen well in her staff and is hands-on in every endeavor to direct things along when challenges occur or to improve the program. The new 84 Branch Chief is knowledgeable, innovative, tireless and has been heavily involved in advocating for the security industry It continues with the center’s CASE Manager encouraging the contractors at events, visiting agency customers and promoting the GSA Schedules Program by helping coordinate the partnering. The new 84 Branch Chief is knowledgeable, innovative, tireless and has been heavily involved in advocating for the security industry for adding new technology, meeting with industry associations, understanding the complexity and challenges of Homeland Security Presidential Directive 12 (HSPD12) and advocating for the purchasing Physical Access Control Systems (PACS) utilizing the appropriate standards and the GSA Program among other innovations. As far as the supplier panel, we gave our GSA Schedule 84 team and leaders high praise for 2018.   GSA also added new categories or SINs for clearly identifying Physical Access Control Products that appear on GSA’s Approved Product List Changes In The GSA Program Some changes this year in certain GSA programmes included the creation of a new category of products/services Special Item Number (SIN) for Order Level Materials (OLM) developed to assist with solution procurements. This new SIN was added to Schedules 03FAC, 56, 70, 71, 00Corp, 738X and 84. Under Schedule 84 it is SIN 84-500. GSA Schedule 84 consolidated many Special Items Numbers (SINs) to make finding products and services less complex Essentially this SIN allows agencies procuring under the aforementioned GSA Schedules’ programmes to purchase and the contractor to add items and services not known prior to the task as a Contract Line Item Number (CLIN) not to exceed 33% of the order. For more information and FAQs on OLMs go to www.gsa.gov/olm. This is not to take the place of “Open Market” items for adding products only that are not listed on a company’s GSA Contract. Physical Access Control Products Previously, GSA Schedule 84 consolidated many Special Items Numbers (SINs) to make finding products and services less complex for the agencies. GSA also added new categories or SINs for clearly identifying Physical Access Control Products that appear on GSA’s Approved Product List according to the standards created under FIPS201. These products appear under SIN 246 35-7 after being tested and approved by GSA. To be qualified to install these products under the GSA Program at least one individual from the GSA Contractor company must complete the class and be CSEIP certified before applying for labor SIN 246 60-5. Additionally, the company must demonstrate certain qualifications and have past performance for this type of work. The Security Technology Alliance offers the training class and certification. Certified individuals and approved products are listed at www.idmanagement.gov. Companies listed with SIN 246-35 7 and SIN 246-60 5 may be found by searching at www.gsaelibrary.gsa.gov. Updates To Guidance For Procurement Updates to guidance for procurement of PACS will continue to be posted to the GSA PACS Ordering Guide Updates to guidance for procurement of PACS will continue to be posted to the GSA PACS Ordering Guide. The ordering guide posted at www.gsa.gov/firesecurity is a valuable support tool created to assist agencies with understanding the requirements of FIPS201 and procuring a PACS. The guide includes relevant regulations, FAQs, sample systems designs, sample statements of work, a list of key points of contract for additional help and questions. In partnership with GSA and guided by the GSA Ombudsman group, the Security Industry Association and the Security Technology Alliance members and their contractor companies participated in a GSA Reverse Industry PACS Training Day on September 17, 2018. We presented from an industry perspective important fact on PACS system requirements, procurement planning, providing information on resources and further educating with panel discussions, individual presentations and amusing skits to over 300 Government agency staff and acquisition specialists. You can find some of the unedited recording of the PACS Reverse Industry Day Training on YouTube. Some changes included the creation of a new category of products/services Special Item Number (SIN) for Order Level Materials (OLM) GSA Schedules Program A hot topic about the GSA program for 2018 was also an issue for the prior year. The GSA Schedules Program is a streamlined contracting vehicle incorporating specific Federal Acquisition Regulations for more efficiently purchasing commercial items. Companies may apply per a continuous open season for a 5-year contract with three 5-year options to renew. Contractors are vetted for past performance, corporate experience and financial capability. Products and services are considered for offering to Federal, State and Local customers (for Schedule 84) with pricing that is determined to be fair and reasonable through negotiations with GSA. To make the determination for fair and reasonable pricing GSA carefully reviews the commercial practices of the contractor To make the determination for fair and reasonable pricing GSA carefully reviews the commercial practices of the contractor as well as the competition of identical or similar item pricing. The most vocal complaint of concern from the contractors was regarding the consideration of competitor contractors offering identical items with out-of-date pricing or holding a Letter of Supply not authorized by the manufacturer. GSA Pricing Tool Since the GSA utilizes a pricing tool to determine if the pricing offered is competitive, a rogue competitor can cause a pricing action to possibly be rejected due to out of date information even as the manufacturer offers an update of the product. This is an issue on all GSA Contracts that the supplier panel hopes will be reconsidered by GSA policymakers at the central office. Most of us believe the Letters of Supply should only be issued by the manufacturer or with documented specific permission of the manufacturer to a reseller. Manufacturers may want to have a better understanding of the Letter of Supply, how it is considered by GSA and more carefully choose their Government partners for experience and compliance. Another challenge for the security community is regarding the lack of accessibility of participating dealers to GSA eBuy Overcoming Challenges For The Security Community Contractors may only see RFQs which are posted under the Special items Number(s) that were awarded to their GSA Contract Another challenge for the security community is regarding the lack of accessibility of participating dealers to GSA eBuy. GSA eBuy is an online Request for Quotation (RFQ) program that is for GSA Contract holders only. Agencies will post their requirements by Special Item Number for at a minimum 48 hours. Contractors may only see RFQs which are posted under the Special items Number(s) that were awarded to their GSA Contract. GSA Participating Dealers may take orders on behalf of a manufacturer if they are authorized under the manufacturer’s GSA Contract. They may also have an online PO Portal to receive orders. But they have no access to GSA eBuy to response to RFQs. Usually, under these arrangements, the manufacturers do not respond directly, so there is a problem using GSA eBuy for opportunities as their GSA Participating Dealers have no access to respond. GSA Schedule 84 Leadership In some instances, a contracting officer may allow an emailed quotation. However, with the use of the electronic ordering system, this has become a common problem we hope to bring to the attention of policymakers. Some changes to the programmes may make the presentation of documentation more effective going forward The GSA Schedule 84 leadership has been helpful to explain the challenges to the agencies to try and resolve such issues. So, what’s up for 2019? GSA modernization is coming. There will be improvements to their tools and more consolidations of SINs and more. There have been discussions of a revival of the GSA Expo. The Expo offered training for contracting staff both Government and private industry. Valuable Tools For Vendor Training Equally important is the networking, meetings and the exhibits of the contractors. Expos have been discontinued since 2012 but smaller events have been growing as well as online webinar training. Webinars are valuable tools for GSA and vendor training, but they do not take the place of being able to meet your customers face-to-face. GSA online eOffer and eMod program have made processing actions more efficient. Some changes to the programmes may make the presentation of documentation more effective going forward. The GSA online website for viewing the items on the GSA Contract and for purchasing items, GSA Advantage could definitely use an update as it has been basically the same for 20 years. Keep an eye on GSA Interact for the latest happenings with GSA.

One of the biggest recent security divestitures in the news was the sale of Mercury Security to HID Global, which occurred around a year ago. The seller in that transaction was ACRE (Access Control Related Enterprises), also the parent company of Vanderbilt and ComNet. We recently spoke to founder and CEO Joe Grillo, a 30-year industry veteran, about the mergers and acquisitions (M&A) market, ACRE’s future, and new opportunities opened up by the Mercury sale. Q: What’s new with ACRE? Grillo: We have an opportunity to have organic growth and to have some scale on a global basis to be a decent size player" ACRE is a company I founded in 2012, and since then we have had six acquisitions and one divestiture. We’ll never focus on ACRE as a brand, but we currently have more visibility of ACRE as a parent company with our two strong brands, ComNet and Vanderbilt. Last year was a very busy year [with the sale of Mercury Security to HID Global] because it takes as long to sell a brand as to buy one, maybe more so. Q: What’s next? Grillo: What you are seeing from us this year is that we are again in a buying mode. No announcement yet, but we expect one by the end of the year. We are well-funded, have great partners, and see an opportunity to continue to grow acquisitively as our highly fragmented space of access control continues to consolidate. From the standpoint of ACRE, with the ComNet and Vanderbilt brands, we are also doing more integration on the backside – not what the customer sees. We will continue to grow toward a $200 million business. We were there when we owned Mercury, and we will get there again. We have an opportunity to have organic growth and to have some scale on a global basis to be a decent size player. Because ACRE are owned by a private equity company, we are brought into every opportunity: ComNet is a good example" Q: Do you see the M&A market being more competitive – more companies looking to acquire? Grillo: There’s a lot of money chasing not-so-many deals, so evaluations can get expanded. But as interest rates creep up, it is definitely a challenge to find the right valuation, the right financing and the right strategic fit. It is a very strategic market. Q: There have been some big acquisitions lately. Were you guys involved at all in evaluating those opportunities? Grillo: Because we are owned by a private equity company, we are brought into every opportunity. An example of that was ComNet. I would not have been aware that the founder passed away two years ago and that there was this opportunity to own the business. So we look at everything; anything that’s out there we look at. The biggest recent announcement in our world was S2 (being sold to UTC/Lenel), and, yeah, we looked at that. It didn’t fit our profile – it was too expensive. Great business, and it’ll be interesting to see how it fits into the UTC environment. There was also Isonas [which was recently sold to Allegion], but the size didn’t add enough scale, but I like the technology. ComNet sells communication networking solutions and products, which is more attractive than video systems for ACRE Q: So what are you looking for in an acquisition? Grillo: It’s hard for us to find something that moves the needle, and you have to find that right balance. Is it something we can digest and have the financing for, and also is there room on the back end? We are private equity-owned, so we know there will be an exit for our investors, too. So we have to find the right balance, good valuations, the right size and digestible. If you look at our acquisitions, we have done two “carve outs.” The Vanderbilt name didn’t exist until we bought the business from Ingersoll Rand, and then we bought the [intruder] business from Siemens. That’s how Vanderbilt came about. You get a lot of value when you carve out a business, but there’s a lot of work. In the case of Mercury or Access Control Technology (ACT) that we acquired; they were growing and profitable but they stretch your finances a lot more. So you have to find the right mix in there. Q: Does video interest ACRE at all? Grillo: We have to find the right balance, good valuations, the right size and digestible"ComNet is our video play. ComNet sells communication networking solutions and products, and 70 to 80 percent of that is used for video systems. But unlike cameras, which don’t interest us, it’s actually good margins, highly specialized repeat business and with good channel partners. So where are we going to play? Cameras – no (because of commoditization). We have some recorder technology (from the Siemens acquisition) and we have the communication networking technology (with ComNet). On the software side, we have looked at a lot of the VMS companies, and a lot of them have been on the market. But the valuation expectations can be high because they are software companies. And we really believe in partnering as a good thing, too. If we integrate to Milestone or Salient or some of these companies, we will never lose an access control client because they chose a particular VMS. Q: ACRE is also looking to grow organically, isn’t it? Grillo: From a technology perspective, we are a product company and we are continuing to bring new products to the market with the ComNet communication networking business and the access control business. And in Europe, we have a third leg of the stool, which is the very successful intrusion and burgular alarm business we acquired from Siemens (SPC products now sold under the Vanderbilt brand). That business continues to do well and is now one of the highest performing segments in our portfolio.The intrusion and burgular alarm continues to do well and is now one of the highest performing segments in our portfolio" Q: But you don’t have to own a company to make it part of your solution. Grillo: An important word is integration. We have to integrate to all the wireless locks. We have to integrate to the VMS systems. But we don’t have to own them. Q: How has the Mercury Security divestiture impacted the rest of your business? Grillo: It has opened up the opportunity for us to look at Mercury partners as possible acquisition targets without worrying about conflicts with the very good business of Mercury. We have more flexibility now compared to the Mercury era. Q: How will the economic cycle impact the security market? Grillo: Interest rates are a much bigger issue than the overall economic cycle. We talk a lot about it with our owners – clearly interest rates are tightening up. If you go out to do acquisitions or to borrow money to do something with your business, it will be tougher than it was two years ago, and it may get worse in the next two years. Security is less impacted by the economic cycle than some industries.

In the simplest terms, video systems capture and record video. But supporting these basic operations are a growing number of other functions that expand usefulness and the ability to interact with related elements in a larger system. As video system functionality expands, we asked this week’s Expert Panel Roundtable: What is the most important function of a video surveillance system and why?

In 1901 New York state made a pioneering regulation move and became the first US state to require automobile owners to register their vehicles. This marked the beginning of regulation on modern traffic, which - following decades of development - resulted in a multi-layer concept of regulation relating to vehicles and driver’s licenses, traffic signs and insurance mechanisms that we are all familiar with nowadays. While certain parallels can be drawn between the early days of cars and our contemporary experience with quadcopters, we are facing a new challenging era that is far more complex to organize and regulate. Integrating Drones In Existing Regulatory Ecosystem Similar to other pioneering technologies in the past, drones need to integrate into a long existing and well-balanced ecosystem, the rules of which have first been drafted some one hundred years ago and have evolved without taking vehicles such as drones into account. Yet the safety risks related to aviation hinder the quick integration of drones into that ecosystem, broadening the gap between existing regulatory landscape and the exponentially growing popularity and ever-advancing technology of drones. The safety risks related to aviation hinder the quick integration of drones into the legislative ecosystem For the past several years, governments and legislators have been trying to tackle this problem by trying to answer two questions: how to properly integrate drones into the airspace without creating a hazardous impact on existing airborne operations, and how to enforce regulations in order to prevent the side-effects related to careless or malicious drone flights, taking into consideration public safety and physical security. Counter-UAS Measures And Regulations Up until 2018, legislators tried to tackle these two questions as a whole by introducing bundled legislation drafts covering the entire landscape of gaps they needed to address, which resulted in multi-parliamentary committee efforts both in the US and abroad to review and approve each bill - a process that is very slow by design. It was only in the beginning of this year that the issues were starting to be addressed separately: legislation related to limitations and counter-drone measures on the one hand, and legislation related to integration into airspace on the other. Let’s take a closer look at Counter-UAS (unmanned aerial systems) measures and what makes them challenging in terms of regulation. Over the past years, various counter-drone technologies have been introduced to enable control over rogue drones in order to either stop them from achieving their flight purpose or prevent them from creating safety hazards to people or property. These measures can be grouped into 3 types of technologies: Military grade solutions - including lasers and surface-air missiles Kinetic solutions - including net-guns and autonomous drones set out to catch the rogue drone and disable it airborne Non-kinetic RF-based solutions - aimed at either disabling, disrupting or accessing the drone’s communications channels in order to trigger a return-to-home function, or guide the drone into a safe landing route Aside from combat military operations, the legality of using the above technologies is questionable as they tamper with an airborne aircraft, might be considered as wiretapping and/or violate computer fraud laws. Therefore, one can conclude that unless changes to regulation are made, non-military facilities will continue to be defenseless from and vulnerable to rogue drones.  One can conclude that unless changes to regulation are made, non-military facilities will continue to be defenseless from and vulnerable to rogue drones European c-UAS Legislation Next, let’s look at the state of c-UAS legislation in both Europe and US to better understand different legislative ecosystems and how they affect the possibilities of using counter drone measures. In the European Union, there is currently no uniform legislation, and the member countries rely on their own existing legal infrastructures. Roughly speaking, most countries use a method of exemptions to the communications and aviation laws to allow the use of counter drone measures after a close examination by the relevant authorities. Such exemptions are approved under scrutiny to particular sites, which provide some relief, but they do not allow broad use of countermeasures. Further discussion regarding a broader regulation change, on a country level or EU-wide, is only preliminary. US c-UAS Legislation Preventing Emerging Threats - provides an initial infrastructure for counter drone measures to be used by various DoJ and DHS agenciesUnlike the EU, in the US exemptions are not possible within the existing legal framework, and the possible violation of US code title 18 means that the hands of both the government or private entities are tied when attempting to protect mass public gatherings, sports venues, or critical infrastructure. Therefore, it was more urgent to introduce legislation that would allow countermeasures to some extent. In September, US Congress approved the FAA-reauthorization act for the next 5 years (H.R. 302), which was shortly after signed by the President and came into effect. Division H of the act - Preventing Emerging Threats - provides an initial infrastructure for counter drone measures to be used by various DoJ (Department of Justice) and DHS (Department of Homeland Security) agencies under strict limitations. However, the act avoids determining which technology the agencies should use, yet it requires minimal impact on privacy and overall safety in order to strike the necessary balance. This is the first profound counter-drone legislation and is expected to be followed by additional measures both in the US and in other countries. Updating Counter-Drone Legal Infrastructure In summary, 2018 has been a pioneering year for counter-drone legislation, and while technology already allows taking action when necessary, legal infrastructure needs further updates in order to close the existing gaps: covering additional federal assets, state-level governments, and private facilities of high importance, such as critical infrastructure sites. Legislators in the US and around the world need to continue working in a rapid tempo to keep up with the growing threat of drones. As with cars a century ago, the number of accidents will rise with the increase in time taken to regulate.

Industry Challenges The retail industry suffers considerable losses each year as shrinkage due to employee theft, sweet hearting, and shoplifting.  It also faces pressure from on-the-spot robberies and organized retail crime, workplace violence, slip-and-fall litigation, workman’s compensation, and legislation. Arecont Vision® IP megapixel cameras are proven around the world by retailers of all sizes, utilised in a wide range of retail locations and environments, to address these challenges. Arecont Vision Deployment Examples Arecont Vision IP megapixel single- and multi-sensor cameras are deployed in a wide range of applications to support the retail marketplace.  Examples include: Providing complete situational awareness, with live and forensic viewing Video documentation for slip-and-fall, workman’s compensation, workplace violence, and litigation protection Loss prevention including internal fraud, theft, and sweet hearting, plus external fraud, shoplifting, and organized retail crime Entrance – exit – POS - aisle – stock room – cafeteria/break room – loading dock monitoring Parking area surveillance License plate recognition Customer/staff behavior monitoring Workflow monitoring Audit programs Budget/business continuity Supply chain monitoring Arecont Vision cameras are deployed by small retailers, convenience and liquor stores, chain stores, department stores, big box retailers, supermarkets, shopping centers and malls, luxury goods suppliers, car dealerships and gas/petrol stations.

Customer Among the many tenants at “Las Américas,” the second largest shopping mall in Morelia, Michoacán, México, a jewelery retailer experiences the mall’s foot traffic, the highest in the area. Mallor Joyeria is a popular jewelery store in the upscale venue. Challenge The Mallor Joyeria had been robbed several times; however, with the low-quality resolution of the store's previous surveillance system none of the suspects were ever clearly identified or caught. The basic system included eight security cameras, installed to deter shoplifting and theft. The store was in need of a higher-quality system to help protect its customers and valuable inventory from future criminal threats. Specifically, they were looking for wider views and higher-resolution coverage. Megapixel Solution Searching for a higher-quality surveillance system, Mallor Joyeria contacted Sermex, a well-known nationwide security company specializing in video surveillance since 1988; committed to developing high-technology video solutions and works hard to keep its service competitive according to Sermex Products Engineering Manager, Mr. Rodrigo Cervantes. Seeking the best option for higher-resolution IP megapixel cameras to use at the jewelery store, Sermex turned to Arecont Vision. In addition to additional security benefits and the ability to identify suspects, Arecont Vision cameras provide efficiency benefits such as wider views and higher-resolution coverage. Sermex engineering department lists high recommendations and performance as the two biggest factors in choosing Arecont Vision cameras. They also cite price as a factor and adding that the cameras are “very cost-effective.” A Sermex integrator installed eight of Arecont Vision’s MegaDome cameras at the jewelery store, including six in the store area covering the jewelery showcases. Two more IP dome cameras were installed in “very confidential and restricted areas” according to Sermex engineers. Arecont Vision MegaDome cameras enable jewelery store to gather, analyze and interpret any evidence of theft “After evaluating various manufactures for this type of application, the customer chose Arecont Vision’s megapixel cameras,” said Mr. Cervantes. The system is monitored locally by the jewelery store management and can also be monitored remotely via Internet. Megapixel Benefits The greater resolution of Arecont Vision’s MegaDome cameras enabled the Mallor Joyeria to gather better, more detailed information to help them track, verify and stop the operations of those attacking the store. The result is a lower rate of violent attacks and an increase in security for the store's customers. Greater image clarity translates into better information to be used as evidence. A significant benefit of the new system is a greater comfort level for the store's customers. Previously, customers did not feel comfortable in the jewelery store because of perceived security threats, which kept them from shopping there. Now they feel safer, more at ease and more likely to visit the store, which will help contribute to return on investment (ROI) of the new system, according to the jewelery store management. They have stated their confidence that this whole new Arecont Vision security system will increase the retailer's ROI because customers and employees will feel secure. Not only will it will stop burglars, it may also decrease our insurance costs. Arecont Vision MegaDome cameras enable the jewelery store to gather, analyze and interpret any evidence of theft, which will help them achieve their primary goal of greater security. The system has performed “perfectly” to date says the jewelery store management, and Arecont Vision's response to the needs of the user and systems integrator has been “excellent.” Mallor Joyeria management has seen that the improved video quality of megapixel imaging can provide a range of benefits in retail applications. For example, better video quality makes it easier to view the way clients and clerks handle the jewels, watches and other products mainly while these are being showcased. The picture quality and digital zoom capabilities of Arecont Vision cameras far exceed analog technology and enable retailers to retrieve highly usable video. Megapixel imaging represents a significant upgrade in system functionality compared to standard-resolution cameras. The use of fewer megapixel cameras to cover larger areas can dramatically decrease costs related to other elements of a system. This advantage plays especially well in the retail environment, where costs are always a consideration. The successful application of megapixel cameras to provide unparalleled image quality and resolution in a small retail environment such as the jewelery store in Mexico illustrates the flexibility of megapixel solutions and their cost-effectiveness for a wide range of uses.

Dahua Technology, a world-leading manufacturer and supplier of video surveillance products headquartered in Hangzhou, China up secured ultra modern shopping mall in Mwanza . The construction of ultra modern shopping mall complex has taken off in Mwanza city. Mwanza is Tanzania's second largest town and the economic heart of the Lake Region. With the continuous development of the economy, the city needs a better business environment to meet the needs of its residents. Therefore, the Mwanza Municipal Council commissioned K&M Archplans (T) Ltd to undertake the design and supervision of the proposed ultra-modern Mwanza shopping mall that covers about 50,000 m2 of shopping space. Mwanza is Tanzania's second largest town and the economic heart of the Lake Region Challenge Of Shopping Mall Security Shopping mall has unique challenges that must be taken into consideration when designing an effective security program. Dahua provides the security system for the ultra modern shopping mall considering all factors at the beginning of the construction, including plenty of network dome cameras, PTZ dome cameras and zoom cameras, bits of NVRs and LCD monitors as well. The cameras cover the whole shopping mall, especially the entrances and exits, halls, corridors and the parking lots. The mall will have a four story market structure developed; Dahua puts the network dome cameras and PTZ dome cameras mainly inside the mall and installs the zoom cameras on the outside to security the whole building. Dome Camera Specification  Dahua's 2-megapixel full HD water-proof & vandal-proof network dome camera (HDBW5200), was used. This camera, with a dedicated-design, a 2.7-12mm fixed lens and a 1/2.8" 2-Megapixel progressive scan Sony Exmor CMOS was the best fit for the interior of the mall. Its IK10-rated vandal-proof can effectively prevent violent destruction. HDBW5200 is able to help to deter theft and respond to active criminal incidents.Dahua's security systems ensure every person in the centre feels secure and welcome Outside, the SD6A230-HN 2Megapixel full HD 30x ultra-smart network IR PTZ dome camera protects the mall's exterior and parking 24/7 with recording high resolution images. Other than its high image quality, the PTZ camera provides a wide pan and tilt range, 0°~360°horizontally and -10 ° ~90 ° vertically, delivering broad images of each scene and a complete picture of ongoing events. Moreover, the domes support 255 presets setup and the go-to speed of pan is 240°/s and tilt 200°/s. With an IR range of up to 150 meters, it can features great day/night performance in any lighting conditions. It is able to monitor every corner of the shopping mall. Protection Of Shoppers And Employees Dahua's security systems ensure every person in the mall feels secure and welcome no matter if it's shoppers or employees. With Dahua's security systems, the mall can respond and control appropriately when certain events happened. The ultra modern shopping mall has a modern and alluring design. Dahua is very much looking forward to the results of its products in the ultra modern shopping mall.

Customer Lauren Bright is a leading wholesale and retail enterprise that specialises in importing European apparel and operates more than 40 outlets in major Chinese cities. Lauren Bright's Pinko store in Harbour City, Hong Kong features the Pinko clothing line, an Italian fashion brand designed specifically for young women. Challenge When opening a new shop for the Pinko brand, Lauren Bright was looking for a video surveillance system to monitor internal staff and to provide anti-theft protection. They were looking for high-resolution imaging to do the job more effectively. As always in the retail environment, overall system cost was a consideration. Megapixel solution Arecont Vision megapixel cameras were chosen for installation in the store based on their clearer, high quality images and the ability to increase operating efficiency, according to Jerry So, sales manager, ADT Hong Kong Ltd. ADT Hong Kong designed the video surveillance system and performed the installation. The integrator is the Hong Kong branch of ADT, the leader in electronic security solutions, specialising in design, sales, installation and monitoring services for more than 7.2 million residential, commercial and industrial customers worldwide. With $7 billion in annual sales, 60,000 employees globally and operations in more than 40 countries, ADT protects 90 percent of the world's Fortune 500 companies and more than 80 percent of the world's top retailers. The integrator and end-user evaluated analog cameras for the installation but decided instead to go for the superior image quality and expanded functionality of a system based on megapixel video. Cameras installed at Lauren Bright's Pinko store were four Arecont Vision 1.3 megapixel cameras and Arecont Vision's AV2155DN, a 2 megapixel day/night camera. Arecont Vision's 1.3 megapixel camera provides 1,280 x 1,024 pixel images at 32 frames per second using a ½ inch CMOS sensor. Capabilities of Arecont Vision megapixel cameras include motion detection, image cropping, region-of-interest viewing and the ability to zoom into an image after it is archived (forensic zooming). Arecont Vision AV2155DN is a 2 megapixel MegaDome®camera that provides 1600 x 1200-pixel images at 24 fps, with low-light sensitivity of 0.1 lux at F1.4. The MegaDome® all-in-one integrated camera, lens and IP66-rated environmental dome housing use a 1/2-inch CMOS sensor and Arecont Vision's MegaVideo® image processing at 80 billion operations per second. The camera employs H.264 (MPEG 4, Part 10) compression to minimize bandwidth and storage requirements while maintaining real-time image resolution. The day/night model used at the Pinko store features a motorized IR cut filter. The dome features a camera gimbal with 360-degree pan and 90-degree tilt adjustments. Capabilities of Arecont Vision megapixel cameras include motion detection, image cropping, region-of-interest viewing and the ability to zoom into an image after it is archived (forensic zooming) The network video recorder is supplied by Genius Vision Digital, Inc. (GVD) and is fully interoperable with Arecont Vision megapixel cameras. The Pinko system is monitored centrally from a main control room. A hard disk drive (HDD) provides 1 terabyte of storage. Arecont Vision works closely with industry leaders such as GVD to ensure integration of Arecont Vision's megapixel cameras with their NVR platforms. Megapixel benefits The system has performed well to date, and Arecont Vision has been responsive to the needs of the user and integrator. The improved video quality of megapixel imaging is especially important in retail applications. For example, better video quality makes it more likely an operator could clearly see the denominations of paper bills changing hands in a questionable point-of-sale transaction. The picture quality and digital zoom capabilities of Arecont Vision cameras far exceed analog technology and allow retailers to retrieve usable video that can be used as prosecutable evidence. Megapixel imaging represents a significant upgrade in system functionality compared to standard-resolution cameras. In addition to lower bandwidth and storage requirements, megapixel cameras can dramatically decrease costs related to other elements of a system, such as fewer software licenses, fewer lenses and a decrease in man-hours needed to bring it all together. These advantages play especially well in the retail environment, where costs are always a consideration. This application of megapixel cameras to provide unparalleled image quality and resolution in a small retail environment illustrates the flexibility of megapixel solutions and their cost-effectiveness for a wide range of uses.

The integrator F & N Enterprises of Tucson, AZ is a low voltage systems integrator specializing in commercial/residential installation of burglar, fire and surveillance security systems. They are experts in the deployment of structured cabling, voice and data infrastructures, using UTP and Fiber Optics. Project background A leading grocery chain’s corporate security and loss prevention departments had requested an overall upgrade to the region’s facility surveillance systems. These facilities included grocery stores with gas stations, and regional distribution centers. They had a directive to integrate the most cost effective progressive technology, increase the camera count, and be able to easily relocate existing cameras. Each project location varied slightly in camera count. Stores required from 24 to 64 cameras. The distribution centers would need over 100 cameras added at each location. Multiple racks and recording equipment were located within management’s office space in each facility. The technology The system upgrade required the best technology, ease of use, superior video imaging, day or night, and full location coverage. There was also a requirement for public view monitoring (PVM), remote information/image retrieval and a more advanced system of image management. The transmission methods to be considered were; IP cameras powered by PoE via Cat5 Unshielded Twisted Pair (UTP) to an NVR, analog cameras via standard video coax (already in use) to a hybrid DVR, or analog cameras powered by a Hybrid Video Power Supply via Cat5E UTP to a hybrid DVR. All store locations were already cabled for voice and data using Cat5 UTP cabling. The corporate mandate also included a strict adherence to the EIA/TIA 568B termination pin-outs and UTP structured cabling standards for voice and data transmission. It was sensible to use the same cabling infrastructure platform for surveillance applications as if and where possible. Other system considerations IP cameras via UTP and analog cameras via UTP both allowed cameras to be powered remotely using UTP cables thereby maintaining that 568B standard. This was a big plus. Many of the stores had fuel stations located on site, but often times located at the front of the property. Each fuel stations needed an enhancement to surveillance coverage too. If they chose to use coax cable, there would be a need to install over 15,000 feet of cable. This further confirmed the commitment by corporate management that the decision to go with standards based UTP was the correct one. The use of UTP reduced material and labor costs by 50%. IP cameras via UTP or analog cameras via UTP hybrid video? The choice was made to use, analog cameras via an NVT UTP Hybrid Video network. The NVT system was scalable, manageable, standards based and affordable. Another selling point of using the NVT was it allowed for a possible infrastructure stepping-stone in the future. By installing the Cat5 cabling, it provided a system with better performance standards today, as well as having the cabling in place for mix of IP cameras should the need arise in the future. That made the overall systems more flexible. In the future, certain areas of the store may be targeted for IP enhanced video, some may not, but all areas are ready. The NVT system was scalable, manageable, standards based and affordable The install details Headend: F&N Enterprises installed a Cat5 patch panel in the rack housing with the DVRs, and monitors. Standard patch cords were used to patch across the RJ45 connectors to the NVT DigitalEQ™ Active Hub. The output of each hub was directly connected to the DVR via standard NVT supplied coaxial jumpers. Wire management was used to create an extremely clean and professional looking installation. A single-channel NVT device was used at each camera location. The Fuel Stations: The solution provided for the fuel stations was a rack mounted NVT passive hub in the fuel station and NVT active hub in the headend rack. While the powered hub was not required by NVT specs, it did allow the video signal to be equalized to match those signals provided by in-store cameras. Power and Video To The Cameras: Analog, high resolution mini-dome cameras were used throughout the project. Most of the UTP runs were around 150 feet. Run length to the fuel stations were typically 1200 feet. All cameras on the project were powered by the NVT PVD™ power supply cable integrator hubs. These PVD power hubs supplied video, control and camera power using a 568B standards based UTP cabling network, which was very organized, easy to understand and able to be used in the future for IP retrofits as needed. These hubs, once installed in a central position, powered a co-located (star topology) group of cameras. The cameras were connected to the system via power-video transceivers which are small in size, easy to hide and protect from tampering. The cabling infrastructure All of the Cat5E UTP cabling that was installed replaced coax. The entire network was converted to structured cabling via UTP. The Cat5E was very cost effective, easy to pull and terminate. Cat5E transmission performance is well within that required for the video transmission application. Fred Francis of F&N said, “The NVT product is really a quality piece of equipment. It’s well suited, designed for its use. We did have a problem with one hub where we didn’t get any AC for ports 1-8. The return-swap was immediately handled by our distributor and NVT, we had a replacement the following day. No problem getting it resolved. The NVT tech support department is well trained, knowledgeable, and treated us respectfully. The equipment installs easily. I’ve seen 5,000ft of Cat5 cable running video with great results: superior picture quality! Installing it in the fuel station scenario above, saving money, saving time, and with great results brought it all into crystal clarity.” There are choices regarding the media used for your cabling infrastructure that allow the end-user more flexibility in their future systems needs and choices. The most common media for IP transmission is UTP. Whether you are deploying an analog, a hybrid, or a purely IP based system, Hybrid Video via UTP is worthy of consideration.

Restaurant Brands, the parent company in New Zealand of KFC, Pizza Hut, Carl’s Jr and Starbucks has installed Milestone  XProtect® video management software throughout their chain of restaurants. Thanks to Milestone video the number of thefts has reduced and day-to-day operations have become more efficient leading to significant improvement on the bottom-line. “Although there was no target set for loss prevention, there was a remarkable increase to the net profit after the installation of the Milestone XProtect video management software. The main benefits of the software included user responsiveness and the open platform that will enable us to integrate with other systems in the future.” - Geoff Holton, Commercial IT Manager at Restaurant Brands Limited (RBL). The Challenge RBL’s objective was to improve loss prevention by monitoring the different food preparation processes at the restaurants, managing waste levels to lower theft amongst dishonest customers and staff. The Advantages The Milestone XProtect® solution provides RBL with increased staff safety and more efficient day-to-day operations. Improved loss prevention, leading to a significant improvement to the bottom-line. RBL can easily expand their solution to other uses with the Milestone open platform. The Solution Installing Milestone Partner Lexel designed and implemented an efficient solution with Milestone XProtect® Corporate to manage more than 1,300 AXIS network cameras throughout RBL’s stores in New Zealand. Lexel set up the users with the XProtect® Smart Client interface and Milestone Mobile, which significantly improves the efficiency in day-to-day operations at the many restaurants. Effective Daily Operations With Milestone Video The Milestone solution has been implemented into around 180 restaurants throughout New Zealand. Cameras are installed in all KFC and Carl’s Jr. restaurants and selective locations for Starbucks and Pizza Hut. The goal was to improve efficiency in operations at the restaurants: “The Milestone solution has made day-to-day operations much easier. Prior to this all managers were only able visit one or two stores at a time, but now they look remotely at the foyer area of their stores by using the XProtect Smart Client interface,” said Geoff Holton. With the XProtect® software, managers can remotely see how many customers each branch has, how many cash registers are open and how many employees are operating the counters. The software also helps them keep track of peak hours and check the restaurants’ performance during these hours. According to Geoff Holton, the XProtect software is also being used to ensure the high quality of food at the different stores and to manage waste: "We are also using the Milestone solution to ensure the quality of the food that is made. Now we can go and have a look at how the pizzas are made at Pizza Hut or see if standards are followed when breading chicken at KFC stores. This is all about securing the quality of our products, making sure our staff are safe while working with the hot deep fryers, and managing waste and staffing levels,” said Geoff Holton. Catching Thieves The Milestone video management software is also being used to avoid theft at the restaurants: “Although there was "The Milestone open platform allows us to integrate with other analytics which is a big advantage for us" no target for loss prevention, there was a remarkable increase in net profit after the install of the Milestone video management system. We have just over 5,000 staff, and in the first 20 weeks of the financial year we actually detected 16 people that were stealing. The majority of our employees are honest and hardworking but unfortunately all businesses have theft issues,” said Geoff Holton. “We did not have a previous surveillance system, which made it difficult to catch thieves and provide evidence of their misdeeds. Now we can monitor the stores and provide video footage of the incident to the police if necessary,” said Geoff Holton. RBL’s Additional Benefits Using Open Platform Software The Milestone solution is being used for a broad number of things including general safety and property damage: “We also use the solution to ensure the safety of our staff and customers. Now we can react quickly if a member of the staff is assaulted, for example. Both IT management and supervisors can remotely check on the stores with Milestone Mobile 24 hours a day,” states Geoff Holton. Holton explains that the uses of the Milestone software might expand even more: “We are thinking about integrating with a point-of-sale (POS) system in the future. The Milestone open platform allows us to integrate with other analytics which is a big advantage for us. It is one of the main reasons we chose the Milestone open platform,” explains Geoff Holton. It was the system integrator Lexel who recommended RBL to go with the Milestone solution, and Lexel Systems thoroughly trained each of the users in how to use the solution. “Lexel is a trusted partner that was able to provide good support during the purchasing, installation and support process. I can highly recommend Lexel,” concludes Geoff Holton. KFC, Pizza Hut, Carl’s Jr. and Starbucks Coffee are all trademarks of Restaurant Brands Limited. These food brands are some of the world's most famous, distinguished not only for their product but also for the look, style and ambience of their outlets, for the service they provide, and the total experience they deliver to their customers in New Zealand and around the world. Restaurant Brands Limited is listed on the New Zealand Stock Exchange.