IHS Markit Puts Focus on Physical Security Service Costs

    [fa icon="calendar"] Oct 12, 2016 8:29:03 PM / by John Gallagher

    Every now and then you read an article, and its only days later that the real implications of it come to mind (some call it an “a-ha moment”, others might just consider me a slow thinker).  That a-ha moment happened for me with a report from IHS Markit that pegs service & maintenance services as leading revenue growth for the security industry.

    http://www.securityinfowatch.com/news/12247491/service-and-maintenance-services-to-lead-revenue-growth-for-integrators-ihs-says

    There’s a few implications from this that deserve consideration:

    1. Automation usually changes this dynamic
    In many markets, service and maintenance costs are decreasing.  It makes sense – higher initial quality of the components, better knowledge on how to resolve problems, and more integration all go towards reducing service and maintenance costs.  But above all these it’s automation that is the biggest driver for reducing costs.  So for a market like physical security to have service and maintenance as the fastest growing sector means that despite whatever strides have been made in other areas the lack of automation is leading to increased costs.

    2. Higher maintenance costs suggest refresh cycles are overdue
    For many people the time to buy a new car comes when the cost of maintaining the old car starts rising.  Rising maintenance costs are a sign that the older technology is being pushed beyond its normal life.  Especially in the case of analog technology versus digital, the choice to remain in an older technology can increase other costs (e.g. digital systems typically allow remote debug and troubleshooting, as opposed to manual inspection and iterative troubleshooting).

    3. Shouldn’t life safety be handled with more urgency?
    Because the major cost driver in service and maintenance is human cost, seeing service and maintenance costs as the fastest growing part of the market might be a sign that issues are taking longer to resolve.  Automation is clearly hand-in-hand with eliminating downtime and improving safety.

    In summary, if you’re in the physical security business as an integrator, an end-user, or consultant, this information can be a call to action.  Viakoo has worked with many leading organizations in physical security to deliver automate service and maintenance – we’re happy to go through case studies with you.  If you’re in New York for ISC East (November 16 and 17) stop by in person at Booth #368 (you can register here: http://bit.ly/2fsOiey).  If not, stop by our website (www.viakoo.com) to signup for a free demo account.  If your service and maintenance costs are rising, we’ve got a great solution for you.

    Topics: Blog

    John Gallagher

    Written by John Gallagher