Integrators Acquisitions Are Bad For Customers, Says Security Consultant Michael Silva
Rolling up security integrators is an ongoing trend, but is it good or bad for end users?
In this post, IPVM interviewed Michael Silva, a security consultant with 40+ years of experience in the industry, including once an alarm integrator, to learn about how he views manufacturer and integrator acquisition/consolidation.
Executive *******
******* ***** **** **** **** *********, after *** "*********" ****** ***** ******* integrators/manufacturers *** ********, ****** ***** ** change, *** ****** ***** ** *****. On *** ********** ****, ***** ******* to ******* ********* ******** **** ** reduced, *** ** *** ************ ****, their *********** *** ********** *********** **** become **** *******.
***** ********* **** ***** ***** ***** sound **** *** ** *** **** out ** ******** *** **** ***** are ***** ***** ********* *** ** their *********** *** "*** **** ***."
***** **** ***** **** * ****** organization *** ***** ****** ***-********* **** a ******* ********** ********, ***** ********* that ******** ******** ***** ** **** to ****** *****, *** *******, * big ******** *** *** ****** ****** might ** * ***** ******** *** the ******* ******, ******* ****** ******* and ******* *******.
Silva's **** ******* ** ******** ********
***** ** ** ******** ******* *** has ********* ******* ** *** **** few *******, *** ****, *** *********** has *** **********. ** ****** **** IPVM *** ** ******* *** ****** in *** ******** ******** **** ** was * ********:
* [**** ****] ***** **** *** 37 ***** ** * **********. *** before ****, * *** ** *** integrator ****. * ******* ********** ****** when * *** ** ***** ***. I've **** ***** **** *** * long, **** ****.
"Honeymoon ******"
***** **** **** **** *********** ************* get ********, ***** ***** ** ** a "********* ******" ** *** ***** year ***** *** ***********, ***** ****** mostly **** *** ****:
** *******, * *** ***** *********** companies ********** ** *** ************ **** that ******* **** ** ***** ********. They ** ****, **** *** ******** and **** *** ***** **** *****'* usually ****** * ********* ******. **********'* gonna ** **** **** ** *** under *** *** ************ ******. *** first **** ******* **********'* *** ****.
************, ***** *** ********* ******, *** employees ***** ** *****, *** *** owners **** ***** ** **** ****** to *********** ******* *****:
******** ***** *** ****** ****, ****** started ******* *** *******. *** *********** started ******, "****, ** *****'* ****** make ***** **** ** **** ***** two ********* ******** **** *** ******** does **** *******, *** ******** [**** the *****]. ** ***, *********** ***** or ********* ****."
Acquired *************' ******* ***** *******
*** *** ******** *************, ***** ******* lines ***** ** ** ********, ********** specialty ********:
*** *** **** ***** *******. * lot ** ********** ******** ** ******** specialty ********, * **** ******* ** that *** **** ***** *** **** GE ******** *******. ******* **** ** have ******** *** ********, **** ********* of ******* [***] ******** ** *** different ***** *** ***** **** ** required ****.
**** *** ***** **** ** ***** 75%. *** ** * *** ** the ********* ***** **** ** ****** on **** ****. *'** **** **** same ******** **** *** **** *** over *****. ****** *****, *** *** company ******** *** **********.
Issues **** ************ *** ******** *************
******* ********* *********** ** ********, ********** integration, *** ************ ***** ** ******** after *** *********** ** ****, ***** added:
*****'* **** ** ***** **** ************. For *******, *'** **** **** ***** as ******, *** *********** **** *****, Software ***** **** ** **** **** this ***** ** ***** ************ ******. They **** ** ** ********-********** ******* the *** *****. *** **** *** company *** **** ******** ** *** of ***** *** ***********, **** ***'* want ** ********* *******, ** **** dropped **** ********* ** ******* **** integration.
Never "**** * **** ***** ******' ****** ******"
*** ********** ***** ******** *** ************ deteriorate **** * ************ **** ******** is ****** *** *****, ***** **********:
*'** **** **** ****** ****, **** times. **** ** **** ****** *** board. ** *** ************ ****, * don't ***** *'** **** **** * case ***** ******' ****** ****** ******* they **** ********, **'* ******* ****** the ***** *** ******.
Integrator - ********* ******* ** ********* *********
**** ********** ********* **** ***** ***** the ******* ***** *** ******* **** acquired, ***** ****:
** *** ********** ****, **** *****. A *** ** ***** *** **** people *****.
******* ******* **** *********** *** ** geographic *********** *** ******** ****** ** priority ***** ************ ** ****, ***** added:
*** ******** ******* ***** ** ***** national ******** *** ********** ****** *** country *** *** **** ****** ***'* do ****.
* ***'* ***** *** *** ***** a ********** ** ********** ***** *** same *** *** *** ***** * technician ** *******. ****'** ********* *******, different **********.
** ****** ************ ********* ** *** cause *** ******** ********** ****** ********* geographic *********, ***** ********* ** **** detail:
* **** ***** **** ** ***** national ********, *** *** *** ************ is ********** *********** ****** *** ************ is ******. ***'* ***, *** ******* branch **** * ****. [*** ******** has] *** * ******** ** *******, and ****** ** ******* ******** **** client ** ** * *** ******** because ****'** *** ******* *********** ** much *** **** *** [******** ** the ****] **** **** *** **** themselves.
********* ** **** **** ****** ******* quality ** *** *****, ***** *****:
********* [****] **** ******** ******* ***** [to] ** *********** ** ****. *'** seen ********* **** *** ******* **** a ******** ********. ***** ******* ** Seattle *** ******* ** *********, *** their ******* ** ***** ** ********. Because **'* **** ******* **** ** the ******. *** ** *** *** of *** ***, ** ****** **** down ** *** ****** ** **** branch.
Guard ********* - ************** *************** **** **** ****
*** **** **** ******* ** ***** companies, ***** ********** **** ******* ***** an ***********, ***** ******:
*** *** *** *** **** ***** with ***** *********. ** **** ** Seattle, * ***** ******** ******** ***** company, **** ********* ******* [***] ***** by ***** *********, *** ******** ** one ** *** *** ***** [***** companies].
**** ********* ****** **** **** *** top *****, *** *** ************** *************** of **** ***** *******, *** ******* things **** **** ** ******* **** gone ****.
** *******, ********* ** **** *** short-term ****** ************, ***** ** * common ********.
The ***** ** ********** *********** *** ************* ***** ***** ***
***** **** * ***** ***** ********* get ************ ** ****** ****:
**** *** **** ** *******, *** I **** *** **'* ********* **** and **** *** ****. *** ***, you're ******* ****** ********* *** ****** your ******** *** ***** *********.
**** ********** ******** ***** ***** ****, he **** ****:
**'* **** ********* **** ** ***** to ******, *** ** ***** ***** me ***.
Initial ********** ** ********* *** ********** ******* **********
*** *************, ********** ** ** ******** include * ****** ****** *** ******** synergies, ***** ****:
**** ***** **** ***, "****, ***, this ** ***** ******* *** **'** be **** ** **** ******** ** a **** ****** ******. *****'* ******* between **. ** *** ********** ******* will ** ********* ** **** ** more ******."
*** ***********, ***** ******** ******* ** them ******* **** *** *** ******* larger ********* **** * ******* ********** presence, ***** ****:
** *** ********** ****. ***** *** reason **, "****, ***, *** ** can ** [****] ** * ******** integrator. ** **** ****** **** ** the *** ********* ******* **'** ***** in *******, *** ** ** **********, Oregon, *** **'** ****** **** ** Florida, ********, ******."
***, **'** **** ** **** *** company, *** ** *** ** ******** accounts *** ******** [******] ********.
************, ***** **** **** ***** ***** incentives ***** ****, **********, **** ***'* work *** ** ********.
Organizations **** *** **** *********** *********** **** ** ****** *************
******* ***** ********, ******* *** *** integrators ** **** ** ****** ******** is ** **** ** **** ******, Silva *********:
****'** ********* ************* **** ***, *** there **** **** * ****** ** others **** *** ***** ***** **'* sort ** ****** ******** ** *********** companies ** ** ***** ****.
*******, *******'* ********* **** *** *** **** Barnette.
Acquisition - ** ********* **** *** ******
**** ******* ****** **** ***** ********** by ******* ****, *** ***** *********** their ********* ** **** ** *** consulting **** ***** *** ****, ** elaborated:
* *** ********** [******* ** ** acquired] ** * ** * ******* owner, ****'* ***** **** **** ***** money - ** **** *** * successful ****.
** ** ********** ******, *'** **** it ****** ** ********** *********. *********, the ********** ******* ******* **** ******* it *** ****** *** ** * national, [**] ************* ************ ** *** top ** *** ****** ***, *** ten ***** **** *** ******* *** worth ******* **** **** ****** ** get **** *** ********** *****.
The *** ***** ***** ** ***** ********* ********* ********* ********
***** **** ** ******* ***** *** FTC ***** ** **** ** ***'* business *** *** ******* ** ***** too ***** ** ************:
*** **** **** ** ****** ***** started, *** **** ** **, * very *********** ****** ** *** ******. And **** ** *** ***** ****, they ******** *** ***** *** ***** on ********* *****. **** **** **** a *******, *** ** *** *** late *** ** ***** ***.
*** ******* ***** ********** ******* **** to ***** **. *** ** **** had ** **** **** ** ***** business ***** ** ***** ********.
** *** * ***** ******* ****** Burns, ***** *** *** ** *** leading ***** ********* ** *** ****. And **** *** * ***** ** others ****** [***'* ********] *****. ** that *** *** ***** *** ***** up.
****:***** ************* ******** *********** *** ***** acquired ** ********* ** ********* *** ***** *****.
Buy ** *********** *** "*** ** ***"
**** ****** ********* *** ** *********** so **** *** ******** *** ******, and **** *** ** ******* ***** acquired ******** ***, ***** ****:
** *** **** ** ** ** years, *** ***** ***** ** **** of ***** ********* ****** *** ** a ******* *** *** ** *** because **** **** ***'* **** ** as * **********. *'** **** * number ** ********* ** ****.
Fragmented ****** ** *** ******** ** ** *** **. *
***** **** ***** ********* ********* ** dominate *** ******** ****** *** ****** the ****** *** ****** ****, **** failed ** ** ** ******* **** is **** * ********** ******. ***** spoke ***** **'* ******* **** **** approach *** *** ** ********** **** up *** **** *** ******:
*** ** *** ********** ** **** most ** ***** *** ******** *********, and ** ** * **** *******, like ** ** ****** *** ** number *** ** ***** *******. * don't ***** ***'** **** ***** ** get **** [** *** ******** ******] because **'* **** **** * ********** industry.
**** *** **** ********* ** ****. "Why ***'* ** **** **** ****** share?" ** **** **** *** *** of **. **** ****** **, **** ran *** * *** *****, *** then **** ****** ***, ********* ****** closing *** ***** ** ******** *** off ** * ********.
**** ******** ** ****** *** ******* player *** *** ********** ** *** customers, ***** *****:
****'** ******* ********, *** **'* *** good *** *** ********. **'* *** good *** *** **********.
***, ** ***** *** **** *********, he'd **** **** * ***** ** his *******!
* **** **** ***** *** **** and * *** ****** *** **** he *** **** ***** ****** ** times. *** ***** *** *** *** kind *****.
*'* ****** **** *** '*******' **** was ******** ** ** *** ********* above *** *******.
*** ** ********** **** ******, ****'* even *** ** **** ** ** I'm ********* *********. * ****** ** mine *** * *** *** *** laid *** *** * ********** ****.
****
**** * ******* ** *** ********, this *** ** ************ ** *** concept, ****** ** *** ** ********** Kalatel. * ********* *** ** *** talented ********* *** **** *** ******* that ****** ****** ***** ** ***** as **** **** ******** ** "** Black *****" *** **** **** ***** industries ****** **. ** *** * mess.
*** ******* ********* ** ****-** *** integrators ****** ****** **** ************* ******, I *** ******* ** ******* ** these **** * ** **** ******. UTC-Chubb-Red ****; ***-****-******. ********** ** **** was * ***** *******, ****** *********. Always **** *** **** ** **** acquisition. ****** * ********* ** *** talent ****, ******* *** *** ******** or ********. *** ****** * ********* of *********.
***, ** *** ***, ** * fantastic ********! **** ****** ****.
*'** **** ** *** ******** *** almost ** *****. **** ** ** when *** ****** **** * ******** there *** ******** ** ******** ** hundreds ** ************. ********, *****'* ******** of ******** ** * **** **** of ************. ***** ************* ************ ******* our ********. ****** ** ******** ** an ********.
** *** ** ****** * ** listed ***** ******** *** ** ***** control *******. ***** *** ** *********** unit ** ******* **** * ******* battery. *** ***** *** ***** ***** and ************* *********.
***** *** ***** **** *****. **** article.