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lution that advances the industry and pro- vides the technology that commercial con- sumers are demanding.
The wireless locksets reduce installation costs by over a thousand dollars a door, while the cloud-based access control elimi- nates the need for costly physical server in- stallations and enable easy upgrades while solving many cybersecurity concerns, and the mobile credentials enable easier admin- istration and security of personnel in a facil- ity while reducing costs. Interestingly, there is not a single company offering all of these technologies under one comprehensive pack- age that could seismically shift the industry and present the comprehensive solution for the end user.
Will there be an existing global player that will present this singular solution that will cause this move over the next 10 years, or will it take a giant from another industry such as Google, Amazon, Alibaba, Apple or Intel? Each of these corporations have been inching towards the security industry with their own offerings and in some cases have video solutions that they see are strong for their brand and revenues.
In addition, they could gain further in- sight and greatly monetize the data of a com- bined video, access control, and perimeter protection solution. Existing global players such as ASSA ABLOY with its acquisition of Mercury Security and Allegion with its recent acquisition of ISONAS seem to be constructing the solution that could be dis- ruptive; however, time will tell how much in- fluence the combination of open architecture hardware, wireless locks and in Allegion’s situation, cloud-based software will be rap- idly adopted.
Looking at the Cost
To further understand the opportunity, I would encourage you to try and describe a standard access control installation to a friend in technology outside of the security industry. I would recommend starting with the physical infrastructure required by most systems. Describe how they will need to dedi- cate physical space inside of the building to install a large circuit board inside of a large metal box to a battery and a power supply that will need to be connected to a dedicated power circuit installed by an electrician.
From that panel, they will need to buy ex- pensive low voltage wiring that will connect to a reader and all of their door hardware connections. What is the price tag for this portion of the installation? Please allot the industry average of $2,300 per door.
For the management of this door, they will need to purchase a physical server ($3,000) and a separate software from the hardware manufacturer that will not scale outside of their individual building without
the purchase of additional software licens- es. This software will manage their users, credentials, rules, and schedules brilliantly and will often require the certified instal- lation company to have an annual mainte- nance fee and have the integrator present anytime that they would like to speak to the manufacturer.
Finally, they should decide which com- puters will have the approved client software installed on them as this is the only way to access the administration of the software. Can they use their mobile phones or tablets? Probably not, but if so, that is an additional license. The cost for this software? It certain- ly varies widely, but it typically costs nearly $3,000 to $4,000 for the first 16 doors. After all of this, if they wish to use their mobile phone as a credential to enter the facility, they will need to add another $100 per reader and purchase an electronic credential license for $1,000 and a bank of 100 credentials at a cost of $1,000.
After you have picked your friend’s jaw up off the floor, they will soon ask more de- tailed technological questions, such as how secure is it? How secure are their cards? What if an employee loses a card? Can the software be managed in the Cloud? What is the cy- bersecurity of the software? Why is a large circuit board needed when my mobile phone manages dozens of complex applications lo- cally and in the cloud? Does the access con- trol system do something super special other than managing rules and opening and clos- ing doors at the right time?
The next several years will undoubtedly bring both seen and unforeseen changes to the physical security industry. End users and general consumers enjoy technological power through their smart phones that is or- ders of magnitude more formidable and user friendly in comparison to the legacy technol- ogy in many of today’s physical security sys- tems. While the video surveillance industry has undergone a radical change in the last several years to answer the demands of the consumer in many aspects of business, there remains a tremendous opportunity for entre- preneurs and large businesses to transform the access control industry.
There will be a sea of change coming and history tells us that the leaders that are surviving in the market today will not be the leaders of tomorrow. Which companies will answer the call of the market and provide the solution to consumers to securely, easily, and less expensively open and
close doors? The door is
certainly open for the new
leaders to step through.
Robert Lydic is the global vice president of sales at ISONAS.
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ACCESS CONTROL