Another Nail in PSIM's Coffin: ADT Acquires Proximex

Author: John Honovich, Published on Apr 03, 2011

The first rule of PSIM: Security integrators are where open platforms go to die. As such, today's announcement that integration behemoth ADT has acquired PSIM provider Proximex is a bad sign for the future of PSIM. Additionally, it is no good news for Proximex customers (albiet the handful that actually exist).

The PSIM dream is for independent companies to produce independent platforms that bring together various systems providing greater intelligence. Independence is critical for PSIM providers because of the inherent need to work and build trust with so many other players in the market.

Acquisition Comparables

This acquisition follows a trend of deals, including NICE - Orsus and Siemens - Vistascape, that show PSIM independence is difficult, if not impossible to achieve. The Siemens / Vistascape deal is likely the best comparison to ADT - Proximex as they follow the same pattern - massive integrator acquires small software developer. What we learned from Siemens / Vistascape is (1) product development essentially grinds to a halt and (2) the product becomes essentially an integrator only solution. Both of these make sense from the perspective of the integrator but they are bad for overall innovation.

Proximex's Products Future

In a statement, ADT claimed that the industry should look for Proximex to 'retain its branding and continue to maintain its relationship with customers, manufacturers and vendors.' Additionally, in an interview with SSN, ADT said that Proximex would remain 'independent and agnostic' and that 'competitive information will not be passed' between Proximex and ADT. While such statements are necessary and perhaps the hope of ADT, we think this is unlikely. PSIM deals are small in number and generally high profile. They are hard to hide even from competitors in different companies. Plus, we believe that ADT will have to depend on its own sales people to promote Proximex. Do you really think large integrators like Diebold, JCI, Siemens, etc. are going to spec in a product that they can only procure via ADT? Hard to believe. The same goes for any other smart integrator.

We find it impossible to imagine ADT leading the ongoing development of a first rate PSIM software development organization. We anticipate ADT will scale back development to project specific requests and that other integrators will run as fast as they can from recommending Proximex. No integrator really wants to invite an attack from ADT.

ADT's Future

On the other hand, this may be a good move for ADT. Security Dreamer, PSIM fan / insider, suspects ADT likely got Proximex at an attractive price, adding that, "[Proximex] was not growing at the rate its investors assumed or hoped." For ADT, this significantly increases their probability of winning $1+ Million installs which is a sweet spot for large integrators. If Proximex can contribute to a handful of 'mega-deals' every year, a reasonable projection, it likely will pay for itself.

Impact on the Market

Let's conclude with observations on impact across the industry:

  • End Users: Bad - Do you really want to lock yourself into ADT? That's what selecting Proximex will essentially do as it is unlikely that anyone else will or want to support it. Having the company widely known as 'Another Damn Technician', 'Always Done Twice', etc. as your sole source integrator is a risky proposition.
  • Low Cost PSIM: Bad - Proximex tried to deliver a low cost turn-key PSIM appliance that we believed had promise. Now as a part of ADT, we think this will be pushed aside as ADT focuses on more lucrative large scale projects.
  • Future of PSIM: Bad - Proximex did not burn through a lot of money, was reasonably focused on building a solid product and still failed. Who's left? CNL, Vidsys (and Vidsys is running on hype). As we examined just a few months ago, the PSIM market remains terribly small.
  • Video or Access 'Centric' PSIMs: As each of the 'pure' PSIMs fall by the way side, this will certainly help VMS and access providers adding PSIM functionality.

8 reports cite this report:

Tyco PSIM Proximex End of Life on Mar 06, 2017
The end of life for Tyco's PSIM Proximex is here, with no more product releases coming and 3 years of remaining support. Inside this post, we...
$18.7M PSIM Acquisition Examined (IDV / Everbridge) on Feb 06, 2017
This may be the biggest deal for a PSIM developer ever. In a segment that has disappointed for more than a decade, a recent IPOed company has...
Vidsys Hangs On, Gets $11M New Funding on May 16, 2016
The founder of Vidsys claims to have invented the term "PSIM" in 2005, and for some time, many thought that PSIM was going to be the new VMS. Over...
Why PSIM Will NEVER Be Popular on Jun 15, 2015
How do you like this vehicle? Big, ugly, hard to drive, terrible gas mileage, death trap - there's lots of negatives. Now, what if you were...
2011 Mid Year Video Surveillance Review on Jun 11, 2011
The first half of 2011 featured a number of important shifts within the video surveillance industry. In this report, we provide an overview of the...
Poll Results and Webinar Recorded Video on Apr 20, 2011
On April 20th, nearly 100 IPVM Pro Members participated in a webinar discussing 'Winners and Losers Spring 2011'. Interest from members focused...
Winners and Losers Spring 2011 on Apr 12, 2011
Now that the dust has settled from the numerous new announcements of the last month, we can better understand the impact on the overall video...
New Surveillance Products Spring 2011 Final on Apr 06, 2011
In this report, we provide a single source listing new video surveillance products announced in Spring 2011 and in conjunction with ISC West.For...
Comments : PRO Members only. Login. or Join.

Related Reports

Favorite Biometrics 2018 on Apr 23, 2018
Biometrics are on the rise, or at least integrator opposition to them is declining, according to new IPVM integrator statistics.   Almost half of...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
Security Camera Cleaning Frequency Statistics on Apr 18, 2018
150+ integrators told IPVM how often they clean cameras on customer's sites and why.  Inside we examine their answers and break down feedback...
Worst Access Control 2018 on Apr 18, 2018
Three access control providers stood out as providing the most problems for integrators. In this report, we analyze the answers to: "In the...
Best and Worst ISC West 2018 on Apr 16, 2018
ISC West 2018 had strong attendance, modest overall new products, and a surge in Artificial Intelligence marketing. First, here are 20+...
GDPR For Video Surveillance Guide on Apr 12, 2018
The European Union’s General Data Protection Regulation (GDPR) comes into force on May 25, but there is much confusion and no clear guidelines on...
Favorite Video Analytic Manufacturers 2018 on Apr 02, 2018
Video analytics is one of the biggest trends in 2018, driven by marketing for Artificial Intelligence and Deep Learning. But what do integrators...
Stats: Disclosing Vulnerabilities Responsibility? Researcher or Manufacturer on Mar 30, 2018
Getting prompt and appropriate information on vulnerabilities is important for integrators and end users to ensure that their systems are best...
Audio Usage In Video Surveillance Statistics on Mar 28, 2018
Audio is more widely available and easier to use than ever, with many IP cameras building audio in and often making integration as simple as...
Top 4 Biggest Problems Selling Access Control 2018 on Mar 23, 2018
We received 150+ responses from integrators when we asked them "What is the biggest problem you face when selling electronic access control?...

Most Recent Industry Reports

The Yolo Bro And The Death of Journalism on Apr 24, 2018
There's an old quote: The job of the newspaper is to comfort the afflicted and afflict the comfortable Unfortunately, the opposite is more...
DMP Adds Ring Video Doorbell Integration on Apr 24, 2018
Video doorbells have become one of the hottest items for security systems. After several years with no doorbell, DMP has announced integration with...
Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
Chinese Manufacturer Kickstarter Campaign Huge Success (EverCam) on Apr 23, 2018
In a week, a Chinese manufacturer's expertly done Kickstarter campaign has received $1.4 million in pledges, an incredible amount for a video...
Favorite Biometrics 2018 on Apr 23, 2018
Biometrics are on the rise, or at least integrator opposition to them is declining, according to new IPVM integrator statistics.   Almost half of...
Dahua and Hikvision Win Over $1 Billion In Government-Backed Projects In Xinjiang on Apr 23, 2018
Dahua and Hikvision have won well over $1 billion worth of government-backed surveillance projects in China’s restive Xinjiang province since 2016,...
May 2018 Camera Course on Apr 20, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...
Dedicated Vs Converged Access Control Networks (Statistics) on Apr 20, 2018
Running one's access control system on a converged network, with one's computers and phones, can save money. On the other hand, hand, doing so can...
April 2018 IP Networking Course on Apr 19, 2018
This is the last chance to register for our IP Networking course. Register now. NEW - 2 sessions per class, 'day' and 'night' to give you double...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact