Avigilon Now Available At ADI In EMEA, Not Americas

By John Honovich, Published Jul 21, 2020, 09:11am EDT (Info+)

ADI, the home for Dahua and Hikvision flash sales, is now selling Motorola Solution's Avigilon. However, this is just in EMEA, not in Motorola's home North American market.

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The move immediately caused surprise in the industry, worsened by ADI's unclear marketing that led many industry people to conclude wrongly that ADI had picked up world-wide distribution of Avigilon.

Inside this note, based on feedback from Avigilon and ADI, we examine what happened, how this helps ADI, how this causes problems for Avigilon Americas, and the future for the Motorola-run Avigilon.

Executive *******

***** * *** ******** *************** *** been * ******* ********** *******, ******* up ***, **** ** * ********** capacity, ****** **** **** *** ******** partners *** *********** *** ******** ***********. Both ******** *** *** ******* **** this ** **** *** **** *** only *** ******** ******** ********, ** the ********* ****** ** ****** ** be *******. *******, *** ******** **** will ****** ** *********** ** ***'* trunk ******** ********** ********* **** ********'* historic ********.

Avigilon ********

******** **** **** **** **** *** for ** / **** ****:

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**** ***** ****, ****** **** ******** at ***, ***** ****** *** ***, Avigilon **** ******** ** ******** ** their ******** ********:

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No ** *** *****

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******** ********* ** *** ******** ** sell**************** ******* ************ ** *** **.

** ***** **** ***** ***** *** the ******* **** **** ***** ********** do ** ** ********* **************.

******** *** ****** **** ****************** ****** in *** **** ******** ******, ** they **** *** **** **** *** distribution ****. ** *** ***** ****, we ** *** **** **** ********'* long **** ***** ***.

ADI *** *********

** ******, **** ****, *** ******* mass ********* **** * ****** ** social ***** ***** **** *** *** clarify ***** ** *** *** ***** now ** ******* ********, ** ***** below:

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********** *** ********** ***** ** ****** media, **** ******* ****** ***** ****** the ********.

*** ************ ********* ****, ********* **** with *****, ****** ***** ** **** region ***** *** ***** ** *********, e.g. *****:

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Trunk ******** ***** *****

*********, **** ** ***'* **** ***, by *** *** ******* ******, *** USA, *** *** *** ******* ***** sale:

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*** *** ********* **** **** *********** from *** **** ** *** ****** though, ** *** **** ****, *********** ADI ** *** ***** ** ** to *** *** ******* ********* ** low-end ********.

Smaller ** ****

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Bad ******** *** ********

**** ***** ** * **** **** overall *** ******** *** **'* *** great ******** *** *** *******. **** caused ********* ********* *** **** ****** certainly ***** ******* ******** *** ******** in *** **** *** ******* ****** ("You **** ****** *** *** ******** at *** ***", ***.).

***** *** ***** * *** ** Axis, ***** ** * ******-*** ***** and ********** ** ********, **** *** a ************* ********* ******* ***** ***** anyone *** *** **** ** *** or ******, ***.

Motorola ******** ******

******* *** *** ******** ** ******** Avigilon *** *****. ***** ******** ***** enjoys ****** ****** *******, ***** ***** of *****, *****************'* ********** ******* ******** ******, ** ******* ***** **** ******** will ****** ****** *** *** ***** for ****-**** ********.

Vote / ****

Comments (34)

"Only Avigilon Channel Partners are allowed to purchase Avigilon products. ADI is another route for Avigilon Partners to purchase products within select geographical areas".

IMHO it's difficult to see how ADI would refuse to NOT sell to others in EMEA, since their sales model means supplying to all (professional) security companies, but also to trunk slammers. I cannot see how Motorola would restrict ADI to sell to Avigilon Partners only (whatever that may be).

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That's easy, all the "Add to Cart" buttons for Avigilon products are replaced with "Authorization Required" like they do here. If you're not an Avigilon partner, you can't order.

Frankly given that Avigilon has never used distribution this move makes a lot of sense for foreign markets. I can't imagine the cost of constantly shipping project-sized orders across the ocean. Now Avigilon can load up a couple of sea cans, ship them cheap, and have inventory available across Europe at a moment's notice. This is a prudent logistical move for them, nothing more.

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Ingram Micro uses a similar model. For example, I cannot access product that is clearly available if I were not authorized.

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Just FYI. Avigilon has always been using and does use distribution for everywhere outside of the US and Canada. Anixter is just one another distributor.

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They are already selling to untrained installers in the UK...

I have seen an email to a company that has a £4K credit limit (basically no credit limit in real terms) offering 35% off msrp...

normally you’d have to be trained and met with your RSM to get that

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Let's see that email.

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So anyone that buys from ADI is automatically a trunk slammer now?

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No, but ADI’s strongest competitive advantage is selling to trunkslammers - flash sales, local events, etc. I think they do a very good job at these things but they fundamentally appeal more to less informed dealers that prioritize price in buying.

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It seems to me you are positioning ADI as an "OR" where I think of them as an "AND."

I would bet a lot of integrators on here have an account with ADI and purchase from them. ADI sells so many of the parts needed to actually complete an installation, all the parts manufacturers like Avigilon do not sell. Cables, connectors, racks etc.

They buy from ADI AND Avigilon, not ADI OR Avigilon.

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Cables, connectors, racks etc.

They buy from ADI AND Avigilon, not ADI OR Avigilon.

For sure, I agree. However, I buy power from my local utility but I don't think much about it, as its a commodity. To Avigilon dealers, I think buying Avigilon products from Avigilon is different than most of the products they buy at ADI, like cables, connectors, and racks.

Like my utility, I think ADI does a good job at mass delivering commodities plus a good job at serving the trunkslammer market segment. I don't think ADI is known for supporting high-end applications. Maybe I am wrong. Motorola can force Avigilon partners to buy from ADI in North America and see what happens...

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Just for the sake of clarity, we are not forcing partners to purchase from ADI in the UK and EMEA. They can continue to purchase from all of the other distributors we have there if they choose.

They now also have the option to purchase from ADI if they want.

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The problem with ADI in Europe is that their knowledge of the products they are selling is very bad. They only have a price list and that is it. Really bad support or no support at all.

In my opinion they will just offer lower price and sell to anyone.

They will never be on same knowledge level as current Avigilon distributors who are dealing most of the time with 2 or 3 brands in their portfolio.

I think this is really bad move.

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The problem with ADI in Europe is that their knowledge of the products they are selling is very bad

How is that different than ADI North America?

They will never be on same knowledge level as current Avigilon distributors who are dealing most of the time with 2 or 3 brands in their portfolio.

That strikes me as more of a Europe and Australia phenomenon. In the US, security distributors tend to sell as many things as possible and are not aiming to be product experts.

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Europe and Australia phenomenon

knowledge level as current Avigilon distributors who are dealing most of the time with 2 or 3 brands in their portfolio

That phenomenon is usually called "Value Added Distribution". Is this something uncommon in the US?

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Alexander, while the term is not uncommon in the US, the phenomenon is. Of course, ADI and Anixter, etc., talk about 'value add' but they are mostly box movers.

For example, DVS' Dave Davies YouTube series has no equivalent in the US:

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I see, thanks John.

EMEA ADI is not a rock-solid organization thus of a highly variable quality of the "added value" across the region. I know some countries where they do all the efforts to actually add something. Things like a professional sales team (even with consultative approach), capable product managers or product specialists, trainings and tech.support.

However, in most countries it will be exactly as you see it in the US - just a pity credit line and pushy sales guys with 100500-pages price lists.

That brings some questions for a possible further (separate) discussion. What actually makes that regional difference? Why "value-add" is not the most viable sales strategy for distributors?

NOTICE: This comment has been moved to its own discussion: Why "Value-Add" Is Not The Most Viable Sales Strategy For Distributors?

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Yes, it sure is.

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Just because we prioritize price doesn't automatically make us trunk slammers. While some might argue I fit that definition as someone that just does installs on the side, I would be pleased to put my work up against any small professional firm.

Hivemind, you tell me. Does this look like the work of a trunk slammer to you? I bent and ran the EMT and it was my first time doing so, in a building where absolutely NOTHING was straight, plumb, level, or square. Talk about a learning curve. For example, the ceiling on this run (and hence the saddle) is at two different heights.

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This ceiling wasn't even flat, so the run to the exterior needed about five removals and tweaks to even begin to conform. The penetration is sealed with 3 hr fire stop.

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All 12 cameras run to a Tripp Lite locking cabinet with a UPS. We installed the Vista21-IP and associated hardware as well.

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Yes, the live view was changed to eliminate the "NO LINK" and just shows Hik's logo now.

If this is "trunk slammer" work then so be it. If it's not, maybe consider changing your perception of some of us small, part-time guys.

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Avigilon is looking for partners just like you, ones that take pride in their work.

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Thanks Hash, I'll send you a message.

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If this is "trunk slammer" work then so be it. If it's not, maybe consider changing your perception of some of us small, part-time guys.

I did not say nor do I mean that companies who are small are trunkslammers. As you noted earlier in your comment, I do mean about price. To elaborate, if an integrator buys whats on special at ADI and flips from product to product based on who is cheapest this week, that, to me, is a trunkslammer. That causes problems long term to customers but benefits the dealer immediately.

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Very curious what five people find "funny" about this without so much as a comment one way or the other.

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Niyeece!!! Does anyone know if Avigilon cameras will work on my HD Analog WBox DVR?

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I'll look into it for you, I have some friends in high places... ;)

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Nelly's is promoting Axis, Avigilon is being sold at ADI, what is happening!

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Reality is Motorola overpaid for Avigilon and is finding ways to make an acceptable ROI on the deal. So sell direct to end users and go the disty route seems to be the answer.

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Reality is Motorola overpaid for Avigilon

I don't agree with that. Motorola paid $1 billion for Avigilon in January 2018 who did ~$400 million in 2017 revenue. Avigilon has continued to grow, did ~$500 million last year. Plus, Avigilon is strong in analytics, a key competitive dimension right now. Avigilon's CTO became Motorola's CTO, etc.

That does not mean Motorola won't make mistakes or be too greedy in how they execute over the next couple of years. Tyco got a great deal for Exacq but eventually messed Exacq up (though earning a handsome return on the deal). What Motorola does with Avigilon is still an open question, to me.

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Strongly disagree. The 100mm in revenue growth has come from opening the channel more and adding on tons of staff trying to chase deals. Back to 2017 #'s-- 28mm profit on approx 400m rev. at a 7% margin. There is no way they hit 500mm with 7% margin. It's likely back where they were in 2016. But we're talking 35x PE on the deal price. I can almost guarantee with the additional staff, price decreases, lower end SL being pushed and cannibalizing the higher margin analytics sales line they are 6% or less net operating.

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I have always heard that it's different doing business over there, that they prefer one PO on a project. Of course that came from a manufacturer that also distributes cameras in these countries. I want to hear from you guys in the UK and Mid East.

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Yes, UK and Mid East should chime in.

I worked for a Germany based company for ten years early in my career. EU countries have always been highly if not almost exclusively 2-step distribution channel. They stock, finance and distribute like they're supposed to.

Avigilon already has 2-step distributors across the pond. They added one. That's how business is done over there. That has absolutely nothing to do with the USA and only indicates that a lot of people go alarmist and overboard without a clue.

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It will be interesting to see if (in the UK)

1. Avigilon stop selling to installers directly

2. the long-standing distributor, Mayflex reduces its stockholding and excellent support and training offerings.

3. ADI Don’t drop the margins to low single digits as they have and will continue to do so to hit targets.

4. If Avigilon employ a trainer for the UK and deliver training on a regular basis or rely on Mayflex/ADI to do that.

5, if ADI provide a good level of tech support.

6. the net effect is less available stock, lower margins for all and worse support. (And potentially lower quality installs as the net quality of installation engineers drop as the product becomes available to smaller companies eg non-qualified startups, 1 man bands and electricians)

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just the kind of map Arbitech loves to see...

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UK's Mayflex with a not too subtle message to new Avigilon distribution rival ADI:

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On the topic of buying from Avigilon, Motorola video head announces:

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