Subscriber Discussion

Blub0x Claiming "Over Weekend System Take Over"

JB
Josh Bylsma
Jun 01, 2017
BLUEmark Technologies

BluB0X

However possible, what is the probability? 

This has been a major selling point for many Mercury based EAC systems. Replacing legacy and expensive Lenel systems, for example, at a fraction of the cost with great RoI, in the matter of months in some applications. This seems to be a growing trend with a lot of newer EAC platforms entering the PhySec space. 

For conversation:

- Is this a positive trend?

- Is there real value to the end-user?

- Is this a sustainable approach for the EAC market?

- If Mercury is the only major, "open platform" controller manufacture, could this potentially create a major bottle neck in the industry? 

I have a lot of thoughts on this, would love to see how others perceive this growing trend. What are the issues with open platform vs. proprietary systems. 

Also.. can one legitimately market "Upgrade your Security System over the Weekend". 

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Brian Rhodes
Jun 01, 2017
IPVMU Certified

This is interesting, thank you for sharing it.

In terms of 'database conversion', there are smaller databases of a few hundred users so garbaged out, it takes many hours of cleanup and scrubbing before conversion.

Big dbases take more time.  So that point is highly variable.

And in terms of Mercury's 'Open Architecture', there needs to be a disclaimer that just because some features and functionality are supported among Mercury partners, not all of them are guaranteed to be.

User training is another issue.  Getting everyone who uses a system together for scheduled training can be hard to pull off, no matter how complex/simple the parent application may be.

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JB
Josh Bylsma
Jun 02, 2017
BLUEmark Technologies

Agreed. The number of variables in a take over could be greatly problematic to a project.

You make a point I did not fully consider,

And in terms of Mercury's 'Open Architecture', there needs to be a disclaimer that just because some features and functionality are supported among Mercury partners, not all of them are guaranteed to be. 

Some OEMs lock down I/Os, others turn off features (example: Lenel turns off the "IP Connect" option in the UI). In order to complete a take over, the integrator would have to understand the intricacies of each Mercury OEM, and know how to adapt the system accordingly. 

There is a lot more that could be said about the bluB0X claim, for now I digress. 

From a market perspective; being such a large and primary player in the EAC space, I wonder what the long term implications could be. 

Example: EAC manufactures, that use proprietary controllers, talk often of the risks associated with open platforms.

"If it is open, than is it really secure"

Additionally, for years there have been rumors that some major competitor is going to buy Mercury and develop a take-over strategy for all Mercury based systems, effectively blocking existing Mercury partners.

I believe most of this came from the ACRE acquisition in 2013.  

From my perspective, there seems to be some opportunity in the EAC controller segment of the PhySec market. There is really only one major player (I would not necessarily count HID Vertex). Having only one viable option, creates inherent risk in the market. If something ever happened to Mercury, the market implications would be staggering. 

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UI
Undisclosed Integrator #1
Jun 02, 2017

As much as we'd like to keep on thinking that the EAC (North America) market won't be as easy to enter for a Hikvision-like company who can turn out door controllers at a fraction of the cost of Mercury if they decided to .........  

Long story short --- the odd situation of so many main-line EAC companies relying on Mercury has been in the sights of some Chinese manufacturers for a few years now, but so far their platforms would require a rip and replace of the Mercury boards anyway (as opposed to being able to  "co-exist" in the same system).

So, the real strategy would be for them to convince one EAC company and then another and then one another of the EAC companies to work with them to make it so the new boards can co-exist with the existing Mercury on the same system so that rip and replace is not required and new doors can get new "Brand Jupiter" boards and the EAC software looks at them just like they are Mercury boards.

The happy hunting ground is/has been video for so long so the ROI for disruption has been in cameras/VMS, but sooner or later the attention may shift over to EAC.  

So much of the US Government/Federal EAC business is wrapped up in Lenel, Software House (non-Mercury), and AMAG (non-Mercury) that it would be difficult for a Hikvision-like company to invisibly break into the Federal EAC market, but the general commercial market would/could be a target.

The telecom/IT Infrastructure/networking contractors that are making life wonderful for companies like Axis and Avigilon don't really want to get their hands dirty with access controls as yet, so there are still a lot of business/technology reasons why access control still is a bit of a mystery to those folks.  

I think this contributes to the general laziness of EAC companies to develop innovative hardware and just OEM Mercury-based controllers so they also don't have to "get their hands dirty" with the hardware manufacturing side and just concentrate on software/GUI.

 

 

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JB
Josh Bylsma
Jun 02, 2017
BLUEmark Technologies

Agreed. The amount of investment needed to uproot Mercury would be substantial. 

I often had conversations with video guys who never sold EAC, they always struggled with understanding how entrenched the EAC market is. As you stated, there has not been any major, disruptive technology that has forced EAC manufactures to re-consider their strategies. Additionally, I agree with that the telecom/IT houses adopting video as an add-on sale, are staying away from EAC. In other words, it is a legacy technology, legacy market and has been very slow to adapt. 

It seems to me, in my opinion, that the real next step would be passive credentials. Phone and/or biometrics would be the best entry into passive credentials, however it seems that the technology is still lacking, and for those technologies that could be viable, the cost is very prohibitive. 

I would also add that the limitations on the Mercury hardware itself, has forced most EAC manufactures to stay 'close to home'. I would argue that this is a major reason why EAC has not grown, with respect to technology. Everyone has to play to the same, low common denominator, which in this case is Mercury. 

While some have ventured out, Amag, Software House, Infinias (I used to sell it and still think they have some cool technology) they each still play to the bar that Mercury has set. 

Again, to your point... what is the true ROI for a disruptive technology? Is it possible to disrupt the EAC industry? 

I believe there is an ROI, but is a long term play. Most VC/PE firms would not invest in a long term play, so investment capital is very limited. I do think that the EAC market is due for a disruption, no I do not think cloud EAC is the answer, but we are a few years off. The old guard needs to move on and a new, nimble and innovative player needs to position to capture the new leaders in the EAC market. However, a valid argument could be made that now is the time for a disruptive argument. 

Surprised there has not been any bright, up and coming companies that have captured attention. 

I like the bluB0X idea, feel their marketing is over-promising, but again they are doing what everyone else is. 

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Avatar
Brian Rhodes
Jun 02, 2017
IPVMU Certified

Is it possible to disrupt the EAC industry?

I'm leaning toward 'no'.  Mechanical keys and doors were invented more than 500 years ago, and nothing has significantly disrupted their use. Unless openings change, not sure EAC has a pent-up 'killer app' or 'megapixel revolution' waiting.

Sure, over time, lock designs are refined, manufacturing optimized, standards developed, sure.  But everyone still carries a keyring.

I agree the Chinese (or any inexpensive skilled labor force) could disrupt EAC hardware, as they have done in countless other markets, but the market still seems hesitant to accept it.

Like we noted in Chinese Spam Access Control Is Here, these ultra-cheap products are already available but incumbent access providers have yet to incorporate them yet.

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JB
Josh Bylsma
Jun 02, 2017
BLUEmark Technologies

I checked "agree" because is so much of what you said is true. However, I hold out hope that the EAC market will move out of the old lock/key industry and find ways to adapt to the new IoT world. 

Personally - working on some cool concepts with technology partners around Bluetooth Low Power and Micro-Location with cell phones. The research seems promising and could prove to open some viable BLE options for the lock market in both EAC and traditional key/lock space. 

UI
Undisclosed Integrator #1
Jun 02, 2017

I think there will be some disruption in the wireless/BLE area with regards to trying to eliminate some of the required wiring/install labor around an opening as well as eliminating the old fashioned need for issuing card-like credentials.  Like all other new technology, adoption of new is always held up by the "big guys" that don't have it yet.

I agree with what you said about mechanical keys/locks being around for 500 years .... as long as the oldest technology still works and is still the least expensive and easiest to use, there is a a huge compelling reason for that technology to still be used.

Since door hardware still has to endure the daily pounding of human interaction with it (thinking of panic hardware and such that people wear and tear on daily) the relative high cost of it is somewhat justified and expected.  I'm not so sure we'll ever see a race to the bottom with door hardware.  That leaves the electronics, which in real terms is just a part (sometimes a small part) of the total cost to control/secure an opening. I guess this is one of the main factors that makes door control a more difficult target for low cost EAC products.

For the small/medium commercial market though, the wireless/BLE communicating EAC products could be well received since the installation labor and wiring costs can be much lower than a traditional EAC install.

 

 

 

 

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JB
Josh Bylsma
Jun 02, 2017
BLUEmark Technologies

If there was going to be a disruptive technology in the EAC space it will be around two key technologies, in my opinion. 

1. Wireless connectivity, such as BLE. 

2. Viable biometrics, to replace traditional credentials.

While both technologies exist currently, it seems no one is shaking up the market with them. 

 

Avatar
Jonathan Lawry
Jun 05, 2017
Trecerdo, LLC

It's important to remember the Mercury produces a component of an EAC system, the door controller, and not the full system itself.  Taking-over a system involves far more than the door controller hardware.  The fact that a company supports Mercury hardware does not have anything to do with how they designed their database, badging, video, etc., and these things take the lion's share of time in any takeover scenario.

Also, bear in mind that after the features for access control "basics", there are many higher-level features that are not used by everyone (e.g. 2-man rule, escort, wireless lockset integration).  No single parter uses all of these features, but all partners use some of them.  For example, only one Mercury partner supports the combination of Allegion/Schlage lockets, Intrusion, and "exception" access rights features in a single product.  I suspect those sites are pretty safe from takeover.  I could think of dozens more combinations that only one or two Mercury partners have.

Mercury is a platform on which others build access control products, and the logic flows from that.  For example, just because two apps are built in .NET doesn't mean they're inherently compatible.  The bottom line is that suspect that an important reason people choose Mercury, is because they need at least one of those features beyond basic access.  This is an important caveat to consider during takeovers.

(Disclosure: I worked at Mercury for several years)

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