Contributors
Scott Goldfine, Editor-In-Chief
Scott joined the staff of SSI in October 1998. His one-time occupation as a cable-TV technician and lifelong love of electronics made his move into the security industry a natural progression. More...
Rodney Bosch, Managing Editor
Although Rodney’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. More...
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I had the pleasure of conducting a roundtable interview with a small group of presidents and executive managers at the recent First Alert Professional Conference in San Diego. The bulk of that sit-down — chockablock with industry insight and business acumen — is featured in SSI’s February edition. But here I’d like to share with you the assemblage’s thoughts on the advantages their companies reap from aligning with a dealer program such as First Alert.
The participants included Mel Mahler, chairman of the board and CEO of Nashville, Tenn.-based ADS Security; Pat Egan, president of Lancaster, Pa.-based Select Security; Philip Gardner, president of Wilmington, Del.-based B-Safe Security; and Jim Callahan, COO, and Mike Sandes, vice president, of Atlanta-based Ackerman Security.
What benefits do you derive from being a member of the First Alert program?
Pat Egan: I have long been impressed with the sheer number of dollars that they put into engineering. When you look at other manufacturers I think clearly Honeywell has embraced and put the money into engineering newer, better, faster alarm products.
Philip Gardner: It’s definitely the networking with other dealers. The time we get to talk about common problems, whether it be labor or pricing or anything. We get together several times a year and I can pick up the phone at any time, call Mel, call Pat, call any of these guys in this room. We may have an installation that needs to go in Atlanta and we have called Ackerman before and they have called us to do installations for them.
Jim Callahan: One of the benefits we derive from this particular dealer network is that this manufacturer does keep us on the cutting edge of technology. They have reacted more quickly to consumer demands, residential or commercial, in the last five to eight years than probably the previous 20. That enables them to provide products that we need. First Alert is better than many if not all dealer programs that I personally have had affiliation with at supporting that. By that I mean they do have the regional players that come in to the offices, provide the training, provide the literature, provide the support mechanisms — both sales and marketing wise, as well as technical — to make sure what we are buying is being installed properly, being as effective as it can, and that our sales and marketing personnel are capable of going out and representing it properly. With this particular dealership it adds quite a bit of value that we get out of Honeywell.
Mel Mahler: One of the big differences is most of the Honeywell representatives came from our side of the business. They didn’t come from the manufacturing side. So they really understand what we deal with. Greg McGlocklin who heads up the Dealer Development Group [DDG] comes in with his team and trains our people on how to interview. Think about it. Probably the weakest link in any company in getting quality people is how you interview. How you do reference checks and so forth.
Mike Sandes: If you are buying product today you are saddling up to GE, Bosch or Honeywell. You know what happened with GE and UTC. So what horse is left? We picked the right horse. Honeywell is the premiere manufacturer in the business. First Alert as a dealer network is premiere and the best in the business. Look at their history. They are chockfull of expertise and they are there for you when you have a problem, whether it be a product problem or a solution that you need or expertise. We are saddled up with the best, eh Jim?
Callahan: The essence of any dealer program is really nothing more than a marketing arm to add accounts. They aren’t doing any training. If you look at other dealer programs, the whole purpose of them is nothing more than an extension of a marketing arm or a sales function. At one point in time ADT’s dealers outperformed, outsold the branch locations. While the goal of Honeywell is to help us sell product, their sole interest isn’t in buying contracts from us. Their sole interest is helping us grow our business. There is a strong tie that is obviously beneficial to both sides of the house in doing that and it has worked quite nicely. Ackerman got involved in the Honeywell program in 1992.
Rodney Bosch
Managing Editor
SECURITY SALES & INTEGRATION
A few years ago The Discovery Channel aired a reality series called, "It Takes a Thief." The show was really cool because it brought security concepts and solutions into America's living rooms, and did so in an entertaining way. The premise had a former burglar breaking into and ransacking a house while the homeowner watched on TV monitors with the show's host. For participating, the homeowner would then receive a free security "makeover." SSI was so enamored with the program that I wrote a cover story on it and teamed with the stars of the show for a keynote at ISC East followed by a meet-and-greet and autograph-signing session for attendees at our exhibit booth. This enterprise really shook up the industry and drew notoriety.
I bring all this up because The Learning Channel, which is part of the Discovery network, is launching a new security-themed reality show this spring (pilot aired this past October) called, "Mall Cops: Mall of America." Although it is not as directly aimed at electronic security as "It Takes a Thief," Mall of America's (MOA) huge staff of security officers do rely on our industry's tools to help accomplish their mission of keeping the landmark shopping destination safe. MOA's recent conversion of 300 analog cameras into an IP-based solution landed it on SSI's February issue cover with my extensive case study featured inside.

More than 40 million people visit Minnesota's Mall of America each year.
The article includes a sidebar about the "Mall Cops" TV show, for which I interviewed its co-executive producer, Eric Streit. He shared with me additional details about the show's special location, what's involved in the production and MOA's impressive security force. So here is the rest of that exclusive interview along with several bonus photos.
What inspired this show? Was it the success of the recent Kevin James movie where he plays a mall cop?
Eric Streit: I think, certainly, the success of the film may have played into the title of our series, but the series we’re making is a documentary series about the daily lives of the secured cops. Basically, what our show is that we’re looking at the Mall of America through the eyes of security officers. So, everything they do in their day-to-day life, we’re a part of. Whether it’s lifesaving medical emergencies, whether it’s lost children, shoplifting, disorderly conduct, what we’re doing here at Mall of America is just kind of a fly-on-the-wall observation of the security officers in a professional environment and just watching them do the work that they do. It’s really very fascinating. I don’t think people realize that the Mall of America has better training for their security force than most midsize city police forces. They have a K-9 unit. It’s amazing the training that goes on here. So many of the officers are veterans of the U.S. military, which I think will come as a surprise to a lot of people. There is a certain stereotype when you think security officers for the mall, and these guys don’t fit that at all. I think one of the great things this show is going to do is break that stereotype, turn it on its head and show these guys the professionals that they are.

MOA includes 520 storefronts and a 7-acre amusement park.
Was it always going to be that particular mall? How was that determined?
Streit: When you think of a mall, the first one I think popped into anyone’s mind was the Mall of America. It’s a symbol of malls everywhere; it’s a symbol of America. If you’re going to make a show about a mall, Mall of America is always going to be your first choice. We were fortunate enough to establish a great relationship here. I don’t think we ever considered anything but Mall of America because it’s the iconic mall, not just for the country, but the world.
So does the show focus any closer on certain members, or just whoever?
Streit: Basically, we have not asked the mall to change their operations in any way. We basically show up. We have four crews who are shooting, and whatever officers are on schedule are the officers we’re assigned to follow. Whatever calls those officers receive throughout the day are the calls we shoot for our series. So far, on any given day, we’re following four to eight different officers. So far, we’ve followed 35 officers on patrol during the eight weeks we’ve been here.

Beau Johnson is one of more than 140 officers that comprise MOA's security staff.
Were any of them reluctant to be on camera or on the show?
Streit: I think everyone has been very cooperative. There is always some trepidation, but once they had an understanding that we were not there to influence or interfere, there was a real openness and embracing of our crews. Our job as documentarians is to kind of fade into the woodwork and just capture them doing their work and not influence it. I think the production crews have established a great relationship with the officers. I think the officers have been very open and welcoming to us.
How many hours of footage do you have to go through to whittle it down to that half hour?
Streit: Well, it varies. For example, on the day that Sarah Palin came in for her book signing, we certainly got enough content to fill an episode. But other times, it depends on how busy the mall is. It depends on how many calls that security goes out on that day. Sometimes you can get enough footage in a day, sometimes it takes two weeks. There is nothing we can do as documentarians to force or make things happen. The nature of true documentary filmmaking, which is what we’re doing, is to just wait and see. Sometimes you luck out and get an episode in a day, and sometimes it’ll take two or three weeks until you get enough content to fill an episode. It can sometimes be very challenging when you’re waiting on things to happen. The great thing about being here at the mall is there is always something interesting going on.

MOA's security officers are highly trained and the force maintains its own K-9 unit.
How big is the crew on a show like this?
Streit: On a show like this, we’ve got four crews with three people on each crew. We’ve got 12 people on most days, plus myself as executive producer and my production manager. We have 14 to 15 people. We’re working six-day weeks, but we have seven-day coverage. Two crews take a day off when the other crews are working. It’s usually nine in the morning until the mall closes. On weekends, we’re here for a couple of hours after they close.
What has been the most unexpected aspects of working on this program?
Streit: So much more goes on here at Mall of America in regard to security than anyone would ever imagine. I was blown away when I got here. It was mind-boggling, the depth and training these guys have, the background they have. They wear bulletproof vests. It is unbelievable. I honestly had no idea until I got here and started walking around with them. I was amazed. It’s certainly not what we expected.

Read about MOA's upgraded video surveillance system in February's SSI.
As a reminder, the show will begin airing on a regular basis on The Learning Channel (TLC) this spring. Let me know what you think.
As always, thanks for reading ...
Scott Goldfine
Editor-in-Chief
SECURITY SALES & INTEGRATION
Axis Communications has shaken up the video surveillance industry by becoming the first provider of relatively inexpensive, fully networked thermal imaging cameras. Thermal imaging, which creates images based on the heat that radiates from any object, vehicle or person, has traditionally been dominated by military technology and came at higher cost (i.e. FLIR). Axis’ new Q1910 indoor model (SRP $2999) and Q1910-E outdoor version (SRP $3499) are intended to target a new group of security and surveillance users, including local and city governments, transportation, retail and education organizations.
The cameras support H.264 and Motion JPEG, audio, local storage and power over Ethernet (PoE), and also include tampering alarms and motion detection. The thermal cameras are able to see through complete darkness and deliver images that allow operators to detect and act on suspicious activity. They can also allow operators to see in difficult weather conditions (i.e. haze, dust and smoke) better than conventional cameras.

Axis' new thermal imaging cameras are expected to hasten the technology's market penetration.
Axis General Manager (and longtime IP technology crusader) Fredrik Nilsson always makes a compelling case and the presentation he shared with me on these new cameras and their technology was no exception. The cameras’ capabilities, lower price point and Axis’ strong brand reputation add up to a powerful opportunity for not only the manufacturer but also its reseller partners. The applications and possibilities seem practically endless. Following are a few of the questions and answers from my discussion with Nilsson.
What made Axis decide to offer thermal technology cameras?
Fredrik Nilsson: One of the reasons we have the opportunity today to make cost-efficient thermal products is because many consumer industries have started to use those kinds of sensors, and by using those sensors they drive up volume which in turn drives down the prices of the sensors. If you look at some of the luxury cars made today they have thermal cameras included in the cars to help the drivers see if there is an animal or person on the side of the road in the middle of the night.
What type of competition do you see out there?
Nilsson: There is no real company that is focusing on the security market in thermal imaging today. You mostly see it in government. The main reason is because the price point has been so high until now.
Will these cameras work well with advanced functions such as video analytics?
Nilsson: Thermal imaging works very well with video analytics. I think finally with thermal cameras, we will have the kind of accuracy we need in this area. Also key here is the cameras are open for other providers to write algorithms to, which is really aimed at the analytics companies. There are a lot of specialized applications and technologies that we are not the pros on and so we let them write the applications to run on the cameras.
Does the size of the thermal video itself differ from standard surveillance?
Nilsson: The way you measure the sensitivity of a thermal camera though is in terms of its range. They are more sensitive on longer range because they are detecting differences in temperature, but the sizes of the image are actually smaller because they do not need the detail of standard cameras.
What will the cameras pick up, animals as well as humans? Can you adjust the sensitivity?
Nilsson: Anything that has a different heat or temperature. Even quite small differences will be detected. You cannot adjust the sensitivity as that is determined by the sensor, but you can change the color scheme to make it appear on screen in the way that makes it easiest for the operator to detect and read.

Fredrik Nilsson is general manager of Axis Communications
How does Axis’ thermal imaging technology differ from that of Bosch’s Extreme CCTV?
Nilsson: For the most part, the technology Extreme uses is near-infrared, which basically still uses some level of light to bounce off the subjects. It is not as sensitive or able to detect to the extent that true thermal imaging can. I think the only company doing anything similar to this would be FLIR, and they are focused a lot on other markets like government, automotive and marine.
Does Axis’ thermal technology differ appreciably from what FLIR offers or is it pretty much apples to apples, just less expensive?
Nilsson: When it comes to the technology, there are a couple of different components. One is the actual thermal sensor and the other is the lens. We have been partnering with different companies that develop those kinds of things. I think what is especially unique here are the price point and also the total package, which ties into so many different systems from the get-go and offers H.264 compression. Putting it all together is what is really unique, just as with our network cameras. Also, this is our core market focus and that is key.
What about thermal applications beyond security. Since it can see through smoke, are you looking at life-safety applications?
Nilsson: That’s a really good question. We are just getting into this market, and obviously we have researched it quite some time, learning sensors, tying it into our network camera technology. We are definitely continuing to think about it and research applications and discuss them with customers. But I could see applications where say schools would have thermal cameras in their hallways so firefighters could look and see people have been evacuated properly and may not have to risk their lives going in. But it is a little too early for me to comment much on this yet, but I definitely see an application there.
I think the total applications of this technology are just being scratched at this point.
Nilsson: Yes, and they are just being scratched because until now the prices have been so high and it has been difficult to integrate those cameras into existing systems. Now, it’s easy to integrate and fairly low cost compared to what is has been. So I think there is tremendous opportunity. You know, just like network cameras. The first ones were very expensive and not that good, frankly, back in 1996. You have to hit certain price points for a market to really take off.
Do you believe thermal imaging will take off in this industry or remain somewhat of a fringe technology? Are you excited about the potential? Why or why not? I think it's pretty darn cool myself.
As always, thanks for reading …
Scott Goldfine
Editor-in-Chief
SECURITY SALES & INTEGRATION
Recently in 2009, IMS Research acknowledged ioimage for the third straight year as the leading provider of intelligent video surveillance cameras and other devices, noting a 13.1-percent market share in 2008.
Now the Herzliya, Israel-based company, regarded as a video analytics pioneer, is under the umbrella of video management system (VMS) specialist DVTel following word this week of a stock transaction reportedly worth $80 million.
Established in 2000, ioimage first carved out a niche for its edge devices and hybrid encoders mainly in helping secure the perimeters of critical infrastructure facilities. The company’s innovative applications have continued to attract customers in new market niches.
I caught up with John Whiteman, ioimage’s president, Americas, to get his take on the acquisition and what the deal says about the video analytics market in general.
Whiteman explains in the time since ioimage first came to market, the growing prevalence of tightly integrated IP solutions now has end-user customers clamoring for end-to-end solutions.
And therein lies the rub for ioimage and surely other third-party IP technology providers.
“From the ioimage perspective the one piece that we brought to the puzzle, which was a very compelling value proposition for video analytics, in and of itself is no longer being deemed worthy as a standalone component,” Whiteman says.
In a nutshell, Whiteman says today’s enterprise-level IP solutions are being driven by selection criteria for VMS capabilities and at the top of the list is the IP camera. Everything else in an IP solution flows from there.
Enter DVTel.
“It’s important for us as a component of the overall solution to have a strong partner that we have a tight integration with on the VMS side. From that perspective, DVTel being one of the early pioneers and global leaders in IP solutions has an awful lot on the ball when it comes to products and capabilities that make us even more valuable,” says Whiteman.
So what will become of ioimage? The decision has been made, so says Whiteman, to maintain the brand and products indefinitely. “We have actually been working for months on several projects that include integration with their VMS platform and the future steps in the roadmap are taking our analytics and embedding it into their full line of IP cameras.”
Despite the many factors that have conspired to hinder market penetration of video analytics (high false alarm rates, limited success stories, recession, among others), Whiteman says a wider variety of end users will increasingly see value in the technology.
Small to midsize integrators take notice. All things considered, Whiteman foresees continued growth in video analytics applications in such smaller markets as schools and universities, car dealerships, high-end residences and other uses for remote video monitoring.
“An awful lot of what happened in the first few years was misapplication of the video analytics technology and misunderstanding by the integrators that were deploying it,” Whiteman says. “Today we’re reaching that tipping point where IP solutions are becoming more and more prevalent. The acceptance of video analytics, after all of the hype and all of the early disappointment, [is being realized] now and most providers are putting forth a viable analytic product.”
Rodney Bosch
Managing Editor
SECURITY SALES & INTEGRATION
Shortly before the end of the year, I had the opportunity to speak with Steve Walin, chairman and CEO of Carrollton, Texas-based GVI Security Solutions, and Lloyd Trotter, a founder and managing partner of New York-based GenNx360 Capital Partners, about GVI being acquired and taken private. The deal, which was finalized earlier this month, reunites former GE Security executives in a business focused on providing Samsung and GVI branded video surveillance solutions for markets including government, retail, financial and education.
This is the second of two parts of my conversation with GVI Security's new leadership and dwells on Samsung's unified rebranding plan for 2010, plus a host of industry issues from GE Security's sale to United Technologies Corp. (UTC) to surveillance growth projections and much more. You can access the first part of the discussion, which touches on how the GVI-GenNx360 deal came together, what it means moving forward and hot new technologies such as AutoIP and the A1 camera chip, right here.
One of the ongoing issues with Samsung in the North American security space has been confusion between the Samsung Techwin and Samsung Electronics brands, which we’ve talked about before. Will GenNx360’s involvement and the new structure help provide some additional differentiation between the companies in the marketplace?
Steve Walin: You may not be aware that Samsung has announced the merger between those two businesses. There was an announcement done in Korea about two months ago, and I’m not sure that it made it here to any large U.S.-based announcement so you have the scoop! Effective Jan. 1, Samsung’s video surveillance business and Samsung Techwin’s CCTV business are coming together to form one Samsung security type business. Both companies are literally being merged together, so they are indeed organizations that are being combined and so on. So, where we see this eventually evolving to is that there will be one Samsung product line, and it won’t be called Electronics; it won’t be called Techwin. It’ll be called Samsung. And, we’ll play a major role in rolling that out for the Americas as we have for Samsung Electronics for the last 10 years. Those discussions are ongoing right now, and I think you’ll be hearing some news about how all that’s going to work and what it’s all going to look like in early January. We are really thrilled that this decision has been taken at the Samsung group level in Korea, and that these two businesses are going to be put together and end the confusion that has been taking place in the market for the last several years.
Lloyd Trotter: The good thing about it is I think they saw the same confusion and conflicts, and they took the action to begin to alleviate that. I think with that clarity it’s going to be, “Everybody, now let’s work on what’s important,” and that’s how do we grow faster?

GVI Security was honored for 10 years of service to Samsung Electronics at ISC West 2009. GVI CEO Steve Walin is pictured second from right.
Lloyd, given your background and vantage point, were you very surprised by GE selling off its whole security division?
Trotter: Surprised? No, because the rumor has been out there for quite awhile. I’m a little bit disappointed in that since I got them into the security arena and it’s a space that I still like. Unfortunately, our funds aren’t big enough, but we would have loved to do that transaction.
Did you think it would be UTC?
Trotter: Well, yeah. The normal suspect customers were hanging around. It’s a business that’s roughly $2 billion in sales and it had to be a large player to take it down. I think what I read in the press, they paid roughly a $1.8 billion for it. That’s a pretty big check to write in this environment.
Speaking of the environment, what are you each of you seeing, as we’re moving into 2010 here, for the business community from sort of the big perspective, and more specifically, the part of the industry that you’re focusing on?
Trotter: In general, I don’t think you’re going to see wild euphoric growth. There will be some segments that will fare better than others. Looking at the overall business environment, the good news is I think the worst is behind us, and that we will see some stabilization and some growth going into the future, but nothing that you can get too excited about. However, when I look at security, security didn’t see this collapse that a lot of industries saw during this downturn, and I think that bodes well going forward in the future as well. I think it’s been relatively more stable than some of the other segments that we have been watching.
Walin: From the GVI perspective, I break it down into a couple of areas. First of all, about a third or even a little bit more of our businesses are in Latin America, and I think we had a good year in Latin America. It did not suffer to the extent from the economy that the North American business did. We continue to see growth there, primarily in larger projects, city surveillance and some of the other infrastructure projects that we operate with down in Latin America. In the U.S., we’re starting to see a general uptick in activity and orders, particularly in the K-12 segment. It seems to have held through fairly well, and continues to be strong. But I would agree with Lloyd. I don’t think it’s going to be a fantastic year, but it should be better than this year we’re just finishing.
Are there any other opportunities that you’re kind of keying into? You mentioned K-12, obviously. Anything else out there in terms of market or technology that you think is going to be robust or a good growth area?
Walin: I think for a mid-mass market, it’s a small- to medium-sized business that has a couple handfuls cameras, or a series of those that are knitted together. We see good activity there and always have. This year [2009] was off, but the whole retail vertical, we’ve always operated very well there. Our products lend themselves nicely, and AutoIP is perfect for that whole retail space. Another area we’ve historically done well in is branch banking for some of the same reasons, although we don’t see that as strong as what we saw in retail, even this past year. So, we’re starting to see a lot of interest in AutoIP in convenience stores and smaller chains like pet stores and bookstores and things like that. It’s not only being used for things like safety and security, but some of these users are using the system for what we refer to as productivity solutions; you know, the ability to remotely look in and see what’s going on in their stores without having to visit. What do the lines at the register look like? How many people are in the store? Which direction do most people walk into the store? Do they go to one particular end cap display versus another? Of course, it’s all kind of manual in terms of looking at it. But if you’re a regional manager covering 35 or 40 stores and you want to see what’s going on, you can do it from any computer today. So, we see that as a driver in retail that’s helping to cost justify these systems.
Do you think the company will get into areas to any extent beyond or outside of surveillance?
Trotter: Clearly, there’s GVI and then there’s GenNx, and we’re exploring all of our options from a GenNx perspective of what else do we do in the security space. It isn’t just going to be one acquisition. I think whatever we do it’ll be complementary to a portfolio of companies. How it all knits together? I’m not sure at this point. But access control is also important, that’s for sure.
Steve, what about under the GVI umbrella? Is that a company that could roll out things other than surveillance or is that purely its focus?
Walin: Well, you know, I’m a big believer in focusing and I have a little saying around the office, “Let the singers sing and the dancers dance.” So, for right now, our plate is pretty full with the launch of AutoIP, which just happened in the last few days, and driving the business with the mid-market. We’re open to other areas, other applications and other technologies that make sense that can help customers. For the foreseeable future, we’ll drive GVI and the surveillance base around AutoIP and the IP cameras while we continue to provide the A1 technology to analog, and eventually that’ll move into the IP. And then we’ll see what happens. We just concluded our deal on Dec. 9 with GenNX, so we’ve had one opportunity to get together and plan strategy, but as the holidays get behind us, we’ll sit down and figure all that out in earnest.

The new A1 camera line provides motion detection, takes analog camera resolution to 600TV lines, and offers built-in analytics for intelligent video and XDR (extended dynamic range).
Maybe it’s a little too early in the game, but do you anticipate doing anything larger or different at ISC West to kind of really make a big impression?
Walin: I think you’ll see our normal good-sized presence. You’ll see a focus on AutoIP and IP cameras on A1. We’ll have our normal great spot and good presence. ISC West is our show and we invest significant resources, along with Samsung, for that venue.
Is there any other specific message you’d like to get out to the installing integrator and dealer market that I can provide the forum for?
Trotter: From a GenNX perspective, I think what we’ve found is a company that we liked, and we liked the products that they are selling and the approach. More importantly, we like the management team that we found there. We’re going to work hard at how do we support that team of people who we think are A players in running faster, growing faster with resources than they could have otherwise had as a public company. So that’s going to be our whole focus. How do we make this thing bigger and better faster?
Can you ballpark what kind of growth you would like to see in 2010?
Trotter: At the end of the day, I think we have an opportunity with some resources to more than double the size of this business over a three-year period of time. We just got to put the actions and resources behind it in order to get there. I think Steve and the team have some great ideas to how they would like to see that go forward. You know, we haven’t had a lot of time. We closed the deal on Dec. 9. We’re going to roll up our sleeves in the first quarter of next year and really begin to put some of those plans together. We’ve got great details, and we’ll figure out how to do them.
If you look at the industry, what kind of growth rate in video do you think is reasonable for 2010? Is it 6 percent, 8 percent, 10 percent?
Walin: My sense of it is analog will continue to run around flat or in low single digits. IP should be in the high teens. I’m not IMS or Frost & Sullivan, but that’s from all of the tribal knowledge you have around in talking to people and reading the reports. It’s kind of what we’re hearing.
That about does it. As always, thanks for reading ...
Scott Goldfine
Editor-in-Chief
SECURITY SALES & INTEGRATION
I recently had the opportunity to speak with Steve Walin, chairman and CEO of Carrollton, Texas-based GVI Security Solutions, and Lloyd Trotter, a founder and managing partner of New York-based GenNx360 Capital Partners, about GVI being acquired and taken private. The deal, which was finalized earlier this month, reunites former GE Security executives in a business focused on providing Samsung and GVI branded video surveillance solutions for markets including government, retail, financial and education.
This is the first of two parts of my conversation with GVI Security's new leadership and dwells on how the deal came together, what it means moving forward and hot new technologies such as AutoIP and the A1 camera chip. Be sure to check back soon for the second part, where Walin and Trotter spill the beans about Samsung's unified rebranding plan for 2010 and address a host of industry issues from GE Security's sale to United Technologies Corp. (UTC) to surveillance growth projections and much more.
Can you tell me how this deal got going and what was the appeal on both sides?
Lloyd Trotter: Let me start with GenNx360 Capital Partners is a new private equity firm launched with $600 million of capital. Three of the founding general partners are from General Electric, and I ran the $38 billion portfolio of industrial businesses with 100,000 employees on a global basis. I was vice chairman when I left. But more importantly, I ran the industrial business that started General Electric down the track for security. So, it’s a space that I believe is important. It’s a space that I like and it’s a space that our company, GenNx360 Capital Partners has committed to explore and invest in. I total, we’ll probably have seven platform companies that we will grow and try and make them better than when we found them, and we’re pretty excited about all of it. With that in mind, we’ve had our teams looking at where we enter as far as security is concerned. We’re going to a lot of conferences; we’re studying the market. Some of the folks on my team ran into GVI at one of the conferences.
Steve Walin: Scott, from our perspective, as you know we were a publicly held company, traded on the over-the-counter bulletin board. With that $50 million in sales, it really didn’t make a lot of sense, especially in the current economic environment to be a public company because of the cost, and resource diversification that you have as a small public company having to comply with all the SEC filings and deal with a whole range of investors. So, when the opportunity to connect up with GenNx Capital Partners, it just made some sense to us to team up with a private equity firm with a group of people who understood the space and had the resources, contacts and business knowledge to be able to help us grow more quickly and more efficiently than we could on our own as a publicly held company. And I had worked at GE Security for several years and in Lloyd’s organization and knew Lloyd from those days. It was kind of a familiarity there on both of our parts, so it just made a lot of sense to pursue the discussions, which we did over time. The deal consummated on Dec. 9.

Lloyd Trotter
What advantages does this now give you in the marketplace?
Trotter: Let me do a GenNx spin on it, and then Steve, why don’t you jump in. In my mind, a public company, particularly in this environment, is sort of a trap because as a small public company you really can’t get the resources in order to play offense. You’re pretty much playing a defensive game because of the liquidity and everything else that’s going around you, there aren’t resources that you’re going to be able to pull forward, which is really important. The other thing is that a public company, when you think about where a CEO spends his time, it’s really about explaining to the market where you are, where you’re going, and where you’ve been as opposed to working on how to take the next steps forward. In a private environment, which is where Steve is now, that effort will be concentrated on how I can grow this business faster, and I think that’s very important.
Walin: I agree. That really says it all. I couldn’t add very much to that in terms of what the clear benefits are in addition to having the business expertise of Lloyd and the partners in the firm, who, as I mentioned earlier, they know a lot of people. They have deep Rolodexes, wide Rolodexes, both not only on the customer side, but also throughout the whole value chain. That kind of experience and knowledge and the doors that it could open for us and things we can learn from them are invaluable for a medium-sized company like GVI.
Trotter: Right. And I think that’s important, the fact that we do — or I — know a lot about the space. I do know a lot about the security industry. We’re starting off with knowledge. We’re not starting off by goofing around and saying, “What is it that we do, and where should we do it?” It’s “Who should we attack, and where should we attack?” Where should we double down on investments in order to get the right resources spun up so we can grow faster, and how do we make this thing more robust than when we found it? So, I think we have a shared interest in that now with Steve and the team. I’m pretty excited about it.

Steve Walin
Steve, maybe you could speak more specifically about the technology and the video surveillance part of it. Is there something a little bit more tangible that you can apply this transaction to and how you see it leveraging and helping that way?
Walin: As you know, we’re partners with Samsung in the video surveillance space. They have a good deal of investments and warranty and are continuing to grow the product line, both in the IP side and the analog side. We acquired, about three months ago, PacketNVR, which is basically a technology for mid-market video management software. So, a VMS system that is very, very easy to install, operate and maintain for the mid-mass market, alarm dealer, small- to medium-sized integrator, and could even be sold through the distribution channels, which we just launched this past week. The goal there is to be able to drive the Samsung IP camera lineup, utilizing that software, so that dealers and integrators don’t have to spend a whole lot of time and money training their people on highly technical installation processes and troubleshooting processes because it’s very easy to operate. That’s why we call it AutoIP. From a technology standpoint, that will be the focus of the company.
To Lloyd’s point, being a privately held company now and having the resources focused on the front end of the business, being able to think about how we put more feet on the street, more resources to touch the customer both before and after the sale, that will help us in a much bigger way launch this new technology for GVI, rather than as a public company having to deal with some of the things we talked about earlier. The explaining to the market what we’ve been doing, what we’re doing now and where we’re going. It’s just a focus and resource issue that we’ll be able to apply to this new technology that we’re launching, and we think there is a really significant opportunity in this mid-mass market to provide this easy-to-use, easy-to-operate, easy-to-support video management software package where the end user would typically be a small- or medium-size business with a couple of handfuls of cameras or an enterprise that has many of those types of locations.

Screen capture of GVI Security Solutions' new AutoIP video management software system.
How has the market been taking to the launch of the A1 chip and technology?
Walin: Well, the market really has been positive. First of all, if you do the comparison of videos with A1 on versus A1 off, it is dramatic. When you have the opportunity to show that to a customer, their eyes really open. We’ve had that opportunity to show some customers — some large customers — the A1 technology, and they were quite surprised and impressed on the difference in the quality of the images. It is very, very positive and the important thing is it’s eventually going to be in every Samsung camera. So it’s not something that you’re going to have to select in order to get A1; it will eventually be in each and every one of the offerings.
Again, remember to check back soon for the riveting conclusion of this conversation.
As always, thanks for reading ...
Scott Goldfine
Editor-in-Chief
SECURITY SALES & INTEGRATION
Away in a manger and protected by GPS, nativity scenes across the county are secured the best.
New York City-based BrickHouse Security has been in the giving spirit offering free GPS tracking and surveillance service to religious institutions looking to protect nativity scenes, Menorahs and decorations during the holiday season. So far, the company boasts 100-percent success in protecting the items.
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Photo Credit: http://www.flickr.com/photos/manyhighways/ / CC BY-NC-ND 2.0
Pranksters and kids on Winter break commonly target nativity scenes each holiday season. However, the theft of these decorations can reach exorbitant amounts. On Dec. 14, life-sized baby Jesus, Mary and Joseph statues were stolen from a church in Sandusky, Ohio. The missing statues are valued in excess of $35,000. While the Joseph statue was later found on the side of a road, the others are still missing.
BrickHouse’s offer began last year and the company has continued its mission this season in hopes of diminishing thefts and vandalism. Institutions enrolled in the free program receive a GPS tracker and Global Watchman remote cellular surveillance system. If the decorations are tampered with or stolen, an alert is automatically sent to the owner’s PC or cell phone.
At the very least, the extra security measure adds just a bit more holiday cheer.
Jennifer Houser
Associate Editor
SECURITY SALES & INTEGRATION
The significance of the California Alarm Association’s (CAA) positive impact on installing security contractors was on fine display during its winter convention in San Francisco.

Held Dec. 10-12 at the Hilton San Francisco near Union Square, alarm company operators from throughout the western region were joined by manufacturers and other service providers for an intensive three days of networking, educational sessions, vendor exhibits, and a poignant life achievement tribute dinner honoring George DeMarco.
With more than 300 registered attendees and 65 exhibitors, Matt Westphal, CAA president, proclaimed during the general session the association had attracted its largest gathering ever.
I got a chance to catch up with Westphal, a third generation co-president of Pacheco, Calif.-based Bay Alarm, during the event to discuss his main objectives for the coming year. Hint: Matt is bound and determined to build an influential voice for the industry in the Golden State’s legislative processes — and dealers will be asked to play a vital part in that effort.
“The big goal for 2010 is community outreach through police and local politicians, continuing to introduce ourselves and getting to know them,” Westphal said. “We are going to be proactive.”
The concept is a simple one, and it served as a frequent theme throughout the convention: Individual companies must actively interface with local politicians and others who are in charge of making rules and running municipal governments. The alarm industry will have little chance to influence issues affecting its businesses without first building meaningful relationships.
“We have been talking to our membership for years about getting involved with their mayors and supervisors because those are the people who can help us fix problems that we may be causing. We cause most of our own problems,” Westphal said.
Alarm company operators were also put on notice during the event that CAA will be making a concerted effort in raising funds to boost the coffers of its political action committee. Lobbying and other such efforts don’t come cheap.
Support for CAA’s industry endeavors arrived from well outside California as well. Richard Ginsburg, president and CEO of Lawrence, Kan.-based Protection One, was a featured panelist for an executive symposium that included Alex Dunn, COO of Utah’s APX Alarm, and Keith Jentoft, president of manufacturer RSI Videofied Technologies.
Following the symposium I asked Ginsburg why he was a vocal advocate, not to mention Pro One’s significant financial/sponsor support, of CAA.
“I don’t want to ride on the coattails of our peers and all the hard work they put into legislative matters and the many things they achieve for the better of the entire industry,” he said. “We’re a big company and we have to step up and contribute both time and money. It’s important to us that we don’t just take all the benefits and not help the cause.”
Among its beneficial work for the industry at large in California, Ginsburg highlighted the association’s victory in securing a blanket exemption earlier this year from a state senate bill that would have prevented automatic renewals for alarm contracts.
Here’s another example of the association hard at work in service of the alarm community. Jon Sargent, past president of CAA, told me significant progress is being made to revise a burdensome ordinance in Oakland that requires alarm companies to collect annual user permit fees and submit them to the city. The danger is such the ordinance could become precedent setting.
As public safety liaison for CAA and the Security Industry Alarm Coalition (SIAC), Sargent has deliberated with officials to amend the city’s annual collection process. Sargent is a dogged advocate for the alarm industry; I’m hedging my bets he’ll be successful in Oakland. Stay tuned.
I want to alert you to an interview I had with APX’s Dunn. As many of you know, the behemoth Provo, Utah-based company has raised the ire of dealers across the nation because of its aggressive summer model program.
No doubt Dunn felt the heat of pointed glares from more than one convention attendee, but he made it crystal clear that APX wants to become a friend of the wider alarm community. Our discussion about the direction of the company and its efforts to be a positive force in the industry will be featured in a “Hot Seat” installment in SSI’s January issue.
Now on to a select few scenes from the convention, courtesy of CAA and photographer Nick Koon.
Easily among the top events in the electronic security profession, the California Alarm Association’s
annual winter convention in San Francisco draws industry leaders from around the country. Above,
California Attorney General Jerry Brown provides the welcome address.
You’ll have to trust me on this one, but see that wand in motivational speaker Marshall Sylver’s right
hand? That thing was set ablaze moments prior when Shandon Harbour, president of SDA Security,
doused it in an act of fire-eating bravado to the delight of a packed audience.
George DeMarco, former president of Irvine, Calif.’s Greater Alarm Co., received the George A. Weinstock Award
for lifetime achievement. At the tribute dinner, DeMarco’s 13-year-old daughter, Lauren, surprised him
with a touching vocal performance that brought tears to his eyes and others in attendance.
Past recipients (l to r) Harvey Eisenstadt, Roger Westphal, Bruce Westphal, Ron Spiller, Frank Burke, Lessing Gold, George Gunning, Tony Smith and Rod Uffindell celebrated the awarding of the CAA George A. Weinstock Award to George De Marco (center) at the CAA Tribute Dinner in San Francisco.
Rodney Bosch
Managing Editor
SECURITY SALES & INTEGRATION
Are you still searching for that one unique Christmas present that is sure to impress your security industry colleague, or perhaps even a family member or friend? I recently ran across a little gadget known as the iWallet that should appeal to the security-minded. Not only is the iWallet a neat stocking stuffer, but it actively works to protect your credit cards and cash from thieves.
The product secures your cash and credit cards in a tamper-resistant hard case made of carbon fiber. Attached to the case is a biometric fingerprint reader to ensure only the owner’s fingers will be flipping through the bills. The iWallet can also be linked to a cell phone through Bluetooth and will alert the phone when the wallet is more than 15 to 30 feet away — perfect for those forgetful few who leave their wallet at a store, or those looking for extra protection against pickpockets.
Visit www.iwalletusa.com for more information.
Jennifer Houser
Associate Editor
SECURITY SALES & INTEGRATION
RSI Video Technologies, a French company with U.S. operations based out of White Bear Lake, Minn., has introduced some innovative, award-winning security products through its Videofied brand. The firm's offerings have been covered many times in SECURITY SALES & INTEGRATION, including earning spots in SSI's Show Stealers of 2007 and Top 30 Technology Innovations of 2008.

One of Videofied's innovative products is its Outdoor MotionViewer.
Videofied's president, Keith Jentoft, is a slightly eccentric but tenacious marketer who has deployed unconventional and creative ways to promote his company's wares. For example, one of those methods has been dressing up in a motion detector costume at industry events.

Keith Jentoft
Yet Jentoft is a savvy businessman responsible for launching the company's U.S. operations back in 2004 and, among other things, has since pioneered the development of wireless outdoor video security to combat copper theft. He has also helped Videofied make inroads as a supplier to the construction, utilities, communications and government markets, and launched a new residential video security system to mainstream security installers. It was recently announced that Videofied's video verification security monitoring system has been integrated into the Mace CSSS Inc. central station automation system.

With 100,000+ alarm systems installed, RSI Video Technologies is one of the world's fastest growing manufacturers.
I have met and spoken with Jentoft on several occasions and have always appreciated his marketing moxie. In particular, he really captured my attention with a pocket-sized product brochure he introduced a few years ago with front and rear covers replicating the front and back of the motion detector and the entire thing cut out in the shape of the device. It was very cool.
Similar to the ingenuity evident in that campaign is a new music video Jentoft has produced and posted on YouTube. The clip features the music of a band Jentoft hired to perform a cheeky tune with lyrics he penned himself espousing the virtues of the company's revolutionary MotionViewer, which combines a PIR motion sensor with a video camera. I couldn't help but smile while watching this thing, titled "Video Killed the Blind PIR," and once again admire Videofied's marketing marvel at work. If the song seems familiar that's because it is a parody of "Video Killed the Radio Star," which was an early 1980s hit by the band the Buggles and served as MTV's very first video clip. Take a look and let me know what you think.
And remember, if you have some marketing savvy you would like to expose and even be rewarded for, be sure to enter SSI's 15th annual SAMMY Awards!
As always, thanks for reading ...
Scott Goldfine
Editor-in-Chief
SECURITY SALES & INTEGRATION
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