What Access Control Manufacturer Should Canon Buy?

JH
John Honovich
Mar 23, 2015
IPVM

Totally hypothetically, not like they are actually negotiating / closing a deal right now.

But if Canon does buy an access control manufacturer who should it be?

Avatar
Brian Rhodes
Mar 23, 2015
IPVMU Certified

Somewhere, the Axis A1001/Entry Manager product development team is crying. :(

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U
Undisclosed #1
Mar 23, 2015
IPVMU Certified

Crying on the shoulders of the Axis Camera Station team, no doubt.

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JH
John Honovich
Mar 23, 2015
IPVM

Why? Wouldn't the A1001 be a complement (or made to be a complement) to an access control software / system provider like S2?

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Avatar
Brian Rhodes
Mar 23, 2015
IPVMU Certified

The access space Axis has carved out pre-Canon is essentially already occupied by potential acquisition targets. I think buying an access control manufacturer would be seen as Canon saying "The A1001/Entry Manager platform wasn't good enough."

If Canon buys S2 as a purely hypothetic example:

Would my 'AxstoneS2' RSMs recommend the A1001/Entry Manager/Milestone Access Module platform for a 16 doors system, or do they recommend S2 Netbox? More importantly: why?

I think the key to making an access acquisition work would mean cutting their own throat somewhere.

The A1001 is marketed as 'Open', and killing it would leave current access partners in the lurch. However, buying someone like ISONAS or S2 and killing the products competing in the A1001 space seems just as wasteful. Keeping everything as it is (multiple offerings for the same application) seems inefficient and wasteful, too.

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JH
John Honovich
Mar 23, 2015
IPVM

"Keeping everything as it is (multiple offerings for the same application) seems inefficient and wasteful, too."

Really, and what do you a call one IP camera manufacturer (Canon) buying another IP camera manufacturer? (Axis) :)

S2 is different than Axis' access control offering in that they have a real enterprise access control management software, which is something Axis does not have and is worth far more than the overlap in multiple controller offerings.

U
Undisclosed #2
Mar 23, 2015

S2 or ISONAS.

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JH
John Honovich
Mar 23, 2015
IPVM

That seems reasonable. You'd figure they would go after an independent as it would be pretty difficult to extract Lenel from UTC or Software House from Tyco, etc.

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Rv
Rogier van der Heide
Mar 23, 2015

Doesn't Milestone have access controll build into it now-a-days ?

JH
John Honovich
Mar 23, 2015
IPVM

They integrate third party access control software. They do not have their own access control management software. Related: Genetec and Milestone Access Tested

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UI
Undisclosed Integrator #3
Mar 23, 2015
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UI
Undisclosed Integrator #4
Mar 24, 2015

Milestone integrates with a company called Imron as well as Isonas currently using A1001 panels. For months Milestone has been directing us towards testing Imron. However, as others have pointed out Isonas recently was added to the list of companies with Milestone integration. I have not tested either at this point.

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UM
Undisclosed Manufacturer #5
Mar 24, 2015

Isonas is the prime suspect here.

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PV
Pat Villerot
Mar 24, 2015

It seems to be almost unanimous.

U
Undisclosed #6
Mar 24, 2015

Why not Mercury?

JH
John Honovich
Mar 24, 2015
IPVM

Will ACRE sell Mercury?

That said, if I was Canon, I'd go for a software / headend offering (i.e., not Mercury) so I could sell a solution. But, I am not Canon and Canon is totally never going to buy these companies and turn them into a solution :)

U
Undisclosed #6
Mar 24, 2015

Canon is a parts supplier in the video world.Mercury is a parts supplier in the access world Each has a dedicated following of systems suppliers and they never tread on that market space. Acquiring Mercury keeps the separation between parts and systems in tact.Canon gets a great brand in a great space they are not in today and keeps selling parts without upsetting anyone.

JH
John Honovich
Mar 24, 2015
IPVM

That's an interesting pitch. Canon people are you listening? :)

U
Undisclosed #7
Mar 24, 2015
JP
Jason Pfau
Mar 24, 2015
IPVMU Certified

Acre bought Mercury and also bought Vanderbilt Industries and then Siemens Europe...

A better choice would be RS2 or Open Options. S2 already has its own Video Management / DVRs that would not likely be used over the Husky line.

BD
Brandon De Libro
Mar 24, 2015
Could we be looking at this from the wrong side. Does Tyco or UTC have the resources to buy Canon?
JP
Jason Pfau
Mar 24, 2015
IPVMU Certified

Tyco, or UTC, thats a hefty aquisition for a relatively small portion of their overall business.

U
Undisclosed #7
Mar 25, 2015

With a market cap of 46.93 Billion I think that only leaves the likes of Apple, Cisco, Oracle, Microsoft, Qualcomm and Google to buy Canon....

Maybe a reverse takeover to avoid tax implications from JCI - they already have the access control?

I don't see any defense contractors ( Raytheon and Northrup Gruman ) having much interest, but I do see a potential partnership with Luxottica ( parent company to Oakley Red ) - will also lead the way in glass technology....

Luxottica - Wikipedia

Oakley Red HD cameras

RED Digital Cinema | 8K & 5K Professional Cameras

U
Undisclosed #1
Mar 25, 2015
IPVMU Certified

but I do see a potential partnership with Luxottica ( parent company to Oakley Red ) - will also lead the way in glass technology....

Luxottica, the eyewear monopoly? Canon would want them for their access control? Or their 'lens' technology? Is RED coming out with a security camera(I'd buy it!)? Confused...

U
Undisclosed #7
Mar 25, 2015

Sorry for confusion -

There are not many companies with enough cash to buy a $50 Billion company to Brandon's post above, but all of those companies could swallow up Cannon with lots to spare.

http://money.cnn.com/2015/01/28/investing/apple-cash-178-billion/

I think a more natural purchase with their current cash on hand would be GOPRO to maximize investment and R&D with an "optics/imaging" theme.

If they wanted to continue as a pure 'optics' company who is going into IoT and wearables market full, then partnerhips with optics, eyewear and HD video specialist Luxottica's would give your product instant credibility with a VERY valuable demographic for potencial talent creators/producers.

http://www.luxottica.com/en/luxottica-google-glass

Their current portfolio and access control neutrality would actually allow for an OEM program for their current Axis Control Hardware to compete directly with what is offered by Mercury.

Avatar
Brian Selltiz
Mar 29, 2015
IPVMU Certified

Isonas would make simple sense, they were Milestone's 'integration of the year' winner.

S2 makes bigger picture sense because of the Enterprise level offering like John states. However since S2 is tied pretty heavily into Exacq...Exaqc... (I can never remember) that would mean Tyco would be the logical choice to buy S2. Maybe Canon will make S2 an offer they can't refuse and deal a blow to Tyco at the same time.

JH
John Honovich
Mar 29, 2015
IPVM

Brian, Tyco already owns Software House, so unless they are collecting John Moss started companies, they probably won't buy S2 (i.e., Software House 2).

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