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What is the price of effective business security?

What is the price of effective business security?

Digitally transforming physical security systems can improve security and reduce total cost of ownership

Elly Yates-Roberts |

In a growing trend, businesses are digitally transforming their physical security systems for improved security, lower costs, and the benefit of security-as-a-service, compared with typical security solutions.  

Although the digital transformation market is worth $284 billion with a 22 per cent compound annual growth rate according to leading analysts, most businesses have yet to look at the digital transformation of their physical security systems. These systems are typically comprised of video surveillance and access control, and are most commonly major capital expenditures. 

From manufacturers with one location to property management enterprises with hundreds of buildings to protect, more businesses are discovering the benefits of cloud platforms for physical security. These solutions are proving to be more secure, open, robust and future proof. In addition, they offer expanded features to support a Covid-19 world, including temperature scanning cameras, social distancing sensors, people-counting intelligence and frictionless access control. Most importantly, some solutions can offer up to 30 per cent savings in total cost of ownership and be purchased in security-as-a-service subscriptions, which can eliminate capital expenditures. 

So why aren’t more businesses looking at digitally transforming physical security? 

Both capital expenditures and ongoing operating expenses should be considered to determine the total cost of ownership of a physical security system. Over three to five years, the operating expense of a typical video surveillance and access control solution can be 20 per cent more and the capital expense 40 per cent more than proven cloud solutions. 

Typical on-premises security solutions include at least seven key elements: surveillance and access control server hardware, software licenses, and support plans; cameras, controllers and readers; installation labour, parts and accessories; server and camera maintenance and updates; system IT management, reporting, and auditing; cybersecurity and privacy management; and electricity and energy costs. 

While eliminating hardware components like network video recorders, access control servers and door controllers as well as software components like video management software and access management software with cloud solutions will reduce capital expenditures, it also reduces installation and ongoing maintenance costs. In addition, subscription-based models offer an integrated lifetime warranty to fix costs over any period of time. 

Solutions such as Tyco Cloudvue from Johnson Controls have delivered reliable security services to thousands of customers for decades. Digital transformation of physical security solutions might make the world a safer place, as well as reducing costs by up to 30 per cent. 

Martin Renkis is the general manager of global cloud solutions physical security at Johnson Controls 

This article was originally published in the Autumn 2020 issue of The Record. To get future issues delivered directly to your inbox, sign up for a free subscription.

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