Your Security â€“ Our Affair!

The security and surveillance sector is fast altering with the strengthening economy and technology as well as market shift. Although globally, the growth is expected to be at around 12 per cent which is significantly lower mainly due to the wide stretch of Eurozone debt crisis. India and Gulf, for instance, are growing at more than twice that rate. VARINDIA speaks to the Indian System Integrators about their perception of the market and the challenges they face.

The significance of Security & Surveillance (S&S) systems has changed over the years. Security today has become a major concern for most individuals / organizations, given the increase in the number of crime rates in recent times. This is precisely where technology plays a major role in curbing such gruesome incidences and also in tracking crucial evidences. The recent increase in terrorist acts has significantly influenced the way one considers the need for adequate levels of security. As a result, electronic security apparatus is creating a niche for them in the market. As a result, there has been an increase in the need for integrated security solutions, both for products and services.

IP-based surveillance is steadily catching up

Traditionally controlled by analogue-based surveillance systems, the Indian market is now shifting towards digitized, i.e. IP-based surveillance systems. Earlier, surveillance systems were restricted to a closed circuit where images are seen from a centrally monitored station. However, with the advancement in technology, the images can now be viewed from anywhere in the world. This has increased the scope for the use of security and surveillance across the world, with the Indian market not left far behind.

IP video surveillance is a key business tool for ensuring smooth operations, general security, preventing loss and controls mischievous activity. It is steadily emerging as one of the most compelling investment areas, creating a whole new market for networking resellers and integrators. The current technology trend in the surveillance space and some of the recent market reports suggest that IP video surveillance equipment market globally was estimated to be at over $800 million in 2010-11 and over $45 million in India alone. As per the industry estimates, the market is forecasted to grow at a CAGR of 30.2% approximately over the next five years and is likely to be worth over $3 billion by 2015 globally.

Manufacturers are realizing that though the image quality is very important, it is not only about pixels but there is much more to it. Similarly, there has been progress with regard to evolution of smart storage, and maturity and convergence among interoperability standards as well. With evolving processors, intelligent video analytics is reaching out to fresh, unprecedented dimensions and in turn it is helping manage and employ silos of raw video content. The emergence of Cloud, Mobile Apps and I/SaaS (Infrastructure/Surveillance as a Service) is also bound to be pumping the security and surveillance market. Forecasts suggest considerable impact on the storage market with over 70% of network security camera shipments comprising of megapixel by 2015. Areas like sensor-based detection, biometrics, in line baggage scanners are expected to gain popularity and increased spending will happen in these areas in the coming years.

Opportunities for all

We have some well-established players like Axis Communications, GE, HoneyWell, LG, Mobotix, NEC, Samsung, Schneider Electric, Sony and Zicom, but in the past couple of years we have seen many companies announcing diversification to this business – for example, Canon, D-Link and Iomega. These companies claim it as a natural progression because for Canon from camera to surveillance camera was not a rocket science, for D-Link it was just including security while building networks and Iomega was promising good storage for the video or IP surveillance.

Recently, Zicom Group has acquired 49% stake and complete management control in Phoenix International WLL (Phoenix International), Qatar, at a valuation of US$15 million. As a part of the Share Sale Agreement, Zicom has acquired 5% stake, while Unisafe Singapore has acquired 44% stake in Phoenix International. Phoenix International offers turn keys solutions in fire protection and suppression projects and it has a licence to operate in the petrochemical sector. It has exclusive tie-ups to market safety and security equipments of leading international suppliers.

The portfolio of services offered by Phoenix International covers Design, Engineering, integrating, testing and commissioning of Fire Safety, Security and Building Management Systems, with main focus on Fire Prevention and Protection would complement the Zicom's offering too.

Prithvi Information Solutions Ltd., whose initial concentration was on e-governance related projects such as State Data Centres (SDCs), State Wide Area Network (SWAN), etc., gradually moved into security. "It was natural for us to expand into one area of security to surveillance. In surveillance, Prithvi would be bringing together its expertise in Telecom, SI, and Video Analytics to deliver best-in-class solutions to our customers," informs Nitin Bharadwaj Vyakaranam, Vice-President, Marketing & Alliances, Prithvi Information Solutions Ltd.


Rothin Bhattacharyya EVP - Marketing, Strategy & BD HCL Infosystems	Kamal Sharma Group CIO & Business Unit Head Mindlance	Nitin Bharadwaj Vyakaranam VP - Marketing & Alliances Prithvi Information Solutions Ltd.

Potential adoptersFor TelExcell, which started as End-to-End Networks Management Solution Provider seeing the trend, has now evolved as Intelligent Surveillance provider too. Micro ABB (ATM Black Box) is a unique, state-of-the-art and advanced security system developed for the banking sector. It secures ATM machines and provides energy-efficient technology for ATM Centres. It comes with life support features such as Wireless Panic Switch, which can be used by the guard in case of an emergency. It is also integrated with the biometric-based attendance system, wherein the guard's attendance will be recorded to minimize the time theft. Next, Mobi Security is a high-end mobile security device offering features like data restoration and data extraction via online, SIM change alert, deletion of personal data in case of misuse of data and locating the mobile.

The security and surveillance equipments find its major applications in important areas like assembly lines in factories; government buildings such as manufacturing units; monitoring of traffic; commercial units such as retail outlets, banks and casinos; transport systems such as railways, airports and ports; and educational institutions. The corporate world is increasingly taking the security issues even more seriously and they are expected to increase their security budgets by 35-40 per cent.There has been a splurge in the demand for security equipment by 10-15 per cent and the private security industry in India is expected to grow at a rate five times in the coming years as much as it has grown in past five years.

Post the Mumbai 2008 terrorist attacks, preventive security measures became the need of the hour. Taking into consideration the demand, the private sector stepped into this segment for more concise security modules.

Does one shoe fit all!

Does security needs vary from sector to sector? It is a million-dollar question. Kamal Sharma, Group CIO & Business Unit Head, Mindlance, said, "The increasing standard of living in India has led to the built-up of an array of facilities like the airports, shopping malls, hotels, high-end housing projects which all facilitate good security and surveillance systems in place." Different sectors have their own needs. Hence, the scope for surveillance varies from vertical to vertical.

Banking sector:

Security requirements are growing in the banking sector as well. The Reserve Bank of India has made it mandatory to install surveillance cameras in all branches and ATMs. This has created a great demand for security devices in the banking sector. Apart from RBI, insurance companies and local police authorities insist on CCTV footage if any incident occurs in banks/ATMs. Therefore, it is essential for these facilities to have appropriate video surveillance equipment. Banking establishments are upgrading their systems to incorporate cameras and their associated recording software. Not only can it help prevent potential fraudsters and robberies, but also provide a safe and secure environment for the staff and customers. Monitoring multiple branches from a central location or through a mobile, and rapidly verifying and responding to the alarms; and capturing HDTV quality video of all incidents, are some of the latest features.

Philip George, Product Manager (Mobotix) - Security & Networks, TelExcell Information Systems Ltd., elaborates that the scope of surveillance certainly varies between verticals and it also depends on the scope of coverage required by the customer. "In the BFSI segment, surveillance would be used for basic security of the premises and the monitoring of staff and customer movement across the facility."

Manufacturing Sector:

The complex environment of an industrial/manufacturing facility presents unique fire protection and security challenges. In manufacturing, the scope would range from process monitoring to machines, materials and other assets. Also in manufacturing, employees and areas of high activity would be monitored. The most important aspect of manufacturing however is the continuous production monitoring and as we know in certain segments like cement the process has to continue 24 hours a day. A stop in production will result in great losses and huge loss in productivity.

Transport Sector:

Video surveillance is an important security solution for transportation sector. With public security threats at an all-time high, security cameras on buses, airports, railway stations and subways can help protect innocent citizens from terrorist attacks and help maintain a safe and secure transportation environment. These security surveillance systems provide passengers with an added sense of security, and can also supply valuable evidence during criminal investigations.

Rothin Bhattacharyya, EVP - Marketing, Strategy and Business Development, HCL Infosystems, shares that HCL Security works on the "Risk Assessment Model", which provides a framework to identify and access risk so that the solution can be designed efficiently. "This is based on a simple rationale that "Risk is a blend of the threats we face; how vulnerable we are to those threats; and finally, what the consequences may be if those threats are realized". Risks are then used to help prioritize the security investment and balance security versus operational performance. This is where the results and requirements vary in different verticals - be it BFSI or Manufacturing or Transportation.


Philip George Product Manager (Mobotix) - Security & Networks TelExcell Information Systems Ltd.	Ganapathy V CEO Micro technologies (India) Ltd.

Ganapathy V, CEO, Micro technologies (India) Ltd., adds, "Yes, it definitely varies with the different verticals accordingly. But the bottom line of surveillance system is to provide security by avoiding loss of property and lives. Be it Banking Sector, Manufacturing Sector or the transport sector at the end the victim is the common man. But yes looking ourselves as a security solutions provider, we have different kind of challenges to overcome in each of the above mentioned industry."

Though HCL and Mindlance like SIs don't rope in partners instead perform direct deployment, but TelExcell and Prithvi take the support of Channel Partners with specific experience and as and when required. Specific vertical experience helps the partners understand the needs of the particular industry and is hence able to propose better and more suitable solutions.

In the end…

Hardware to Software and Managed Services transition is also changing the face of Security and Surveillance sector. In terms of geography, the markets with untapped potential include Egypt, Turkey, Indonesia, Columbia, Vietnam and South Africa, besides the rapidly-growing customer base across BRIC (Brazil, Russia, India and China). At present, a very small number of the networking partners in India are focussed on the surveillance segment. This can be attributed to various reasons like lack of expertise and know-how on surveillance solutions design, implementations and other technical knowledge etc. Therefore, there is enormous opportunity for all networking partners as well as vendors, that is still to be explored, and in turn add to their revenues and at the same time be part of the new-age technology growth. Vendors agree that they need to have their involvement in terms of giving the required solution geographically that will help them in multifold activity in terms of enhancing business and giving the required solutions required by the corporates.