Axis American Expansion Plan Examined

By: Carlton Purvis, Published on Feb 05, 2014

Surveillance manufacturers generally only have a single office even in a large country like the US. Now, Axis' ambitious expansion plan has them poised to open six US office "to get even closer to partners and joint customers." In this note, based on speaking with Axis, we examine how this will impact their competitive positioning and their relationships with integrators and users.

The New Offices

The company plans to open six new U.S. offices (Northeast, Mid-Atlantic, Southeast, Midwest, South Central and West). Three new offices are planned to open in 2014. That includes the Northeast office located within Axis’ Boston-area North American Headquarters which opened this week, a Midwest office opening in Chicago planned for Q2, and a West office opening in the Los Angeles-area in late 2014.

Here is a map of the regions the new offices will cover:

Each location will be around 5,000 square feet and will include a small local team, including "inside sales, regional sales managers, field sales engineers, local trainers and a regional event marketing person." The offices will be led by a Business Area Manager who will report to the North American Director of Sales.

They will be designed similar to Axis Experience Centers and will include space for training, demos, meeting as well as offices in the back.

US Size

The Americas account for roughly half of Axis' $700+ million USD annual revenue. The US operation, even if it was its own company, would still be one of the 10 largest surveillance manufacturers in the world.

U.S. Employees

Axis reports ~50 regional sales managers and ~200 US employees. As a result of 30 recent promotions, there are a number of open positions in their North American offices as well.

Helps with Integrator Training and New Product Education

Having offices closer to integrators, Axis believes will make it easy to train and demonstrate new products. With a relatively short commute, integrators can get up to speed with what is new and try out new products set up at the regional offices. “We usually rent rooms in hotels for training, but we think it would be more effective with our own space,” the company says. 

Helps With Customer Contact

Having regional offices would make it easier for Axis to reach out to end users. “Some of the large customers want to have a relationship, they want to have people to talk to. Even though all the business goes through the integrator they want to make sure they understand what’s going on,” Axis says.

Integrators Concerns?

Many integrators want to keep manufacturers as far away as possible from 'their' customers. Having physical facilities closer to end users, makes it easier for Axis to communicate with, demonstrate and promote Axis products, without depending on an integrator.

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

However, Axis says it sees this as a benefit for both end users and integrators. “For the integrators we work closely with, this is an opportunity to drive more business to them,” Axis says. Axis says the offices will benefit integrators by giving them a place they can do training or demos with new equipment. The company also points to its history of not going around partners as a reason integrators should not worry.

Competitive Impact

Leveraging its much larger size, Axis should be able to market more effectively with regional offices, helping to drive more business with enhanced local demonstrations, trainings and meetings. And given the cost of running such facilities, it is something that few can potentially match.

So while this is unlikely to be a trend overall for other manufacturers, it will make Axis have more control over deals, especially larger ones, and less dependency on integrator selling.

Update: Axis disagrees with our conclusion, emphasizing that, "We’re 100% dependent on the channel for sales. Integrators and other partners have been asking us for more and more local support, customized trainings, sales resources, product refreshes, etc. to better educate their teams to help drive sales for them."

2 reports cite this report:

Top Manufacturers Gaining and Losing Ground 2014 on Oct 27, 2014
IPVM survey results of 100 integrators show what manufacturers are gaining and losing ground in 2014. Integrators answered 2 questions: "Added:...
Axis In Denial, Q3 2014 Financial Report Bad on Oct 16, 2014
Axis Q3 2014 numbers are bad. But their outlook is still rosy. [Update: And Q4 2014 numbers are just as bad.] The company has struggled to...
Comments (2) : Members only. Login. or Join.

Related Reports

Sighthound Transforms Into Enterprise AI Provider Profile on Jun 14, 2019
Sighthound is now rapidly expanding its R&D team, building an enterprise AI service. This may come as a surprise given their origins 6 years...
Directory of Access Control and Intrusion Startups on Oct 30, 2018
This directory catalogs access control and intrusion detection startups IPVM has found noteworthy. The directory is provided for your review to...
Panasonic Unified Surveillance Strategy Analyzed on Nov 17, 2017
Panasonic is now a "Unified Surveillance" offering, as their ASIS 2017 booth proclaimed: Looking to make a comeback in the security industry,...
Anyvision Aims For 2022 Revenue of $1 Billion on Jul 17, 2019
Only 3 video surveillance manufacturers do a billion dollars or more in annual revenue - Hikvision, Dahua, and Axis. Now, Anyvision plans to join...
Installation Course January 2020 - Last Chance on Jan 16, 2020
Thursday, January 16th is your last chance to register for the Winter 2020 Video Surveillance Installation Course. This is a unique installation...
SenseB4 Presents Cloud Network Device Monitoring on Jun 09, 2020
SenseB4 presented its cybersecurity and network health monitoring products at the April 2020 IPVM New Products show. Inside this report: A... Business Market Expansion on Apr 13, 2018 has millions of subscribers, but the company has traditionally been mostly a residential/home focused offering.  ADC's new Smart Business...
Exacq Raises VMS Software Pricing Twice in Less Than a Year on Feb 18, 2019
Most VMSes regularly release new features, but rarely increase their prices. For the 3rd time in 4 years, and 2nd time in 8 months, since being...
Startup Sunflower Labs' Autonomous Drone Security System on Dec 11, 2018
Startup Sunflower Labs is claiming a unique design on a home security system, combining autonomous drones and 'Sunflower' sensors. Imagine an...
Genetec Launches Streamvault Hardware Revamp on Oct 10, 2017
Genetec is launching a new series of hardware appliances, dubbed "Streamvault", with updated capabilities and design. These units will replace...

Most Recent Industry Reports

Startup Duranc Presents AI VSaaS on Jul 06, 2020
Duranc presented its system at the May 2020 IPVM Startups show. A 30-minute video from Duranc including IPVM Q&A Background on the...
Low Voltage Nation Wants to "Help You Carve Out A Fulfilling Career" Interviewed on Jul 06, 2020
It is difficult to make your way in this industry as there is little formal schooling. However, one person, Blake Urmos, the Founder of Low Voltage...
The Next Hot Fever Detection Trend - $100 Wall-Mounted Units on Jul 06, 2020
The first wave of the booming fever detecting market was $10,000+ cameras, now interest for ~$2,000 tablets is high and the next big thing may be...
Cisco Meraki Unlocks IP Cameras With RTSP Tested on Jul 06, 2020
Meraki opened up its cameras to 3rd party NVRs/VMSes by offering RTSP streaming because of "the need to solve a business problem". We tested...
Verkada: "IPVM Should Never Be Your Source of News" on Jul 02, 2020
Verkada was unhappy with IPVM's recent coverage declaring that reading IPVM is 'not a good look' and that 'IPVM should never be your source of...
Vintra Presents FulcrumAI Face Recognition on Jul 02, 2020
Vintra presented its FulcrumAI face recognition and mask detection offering at the May 2020 IPVM Startups show. Inside this report: A...
Uniview Wrist Temperature Reader Tested on Jul 02, 2020
Uniview is promoting measuring wrist temperatures whereas most others are just offering forehead or inner canthus measurements. But how well does...
Dahua USA Admits Thermal Solutions "Qualify As Medical Devices" on Jul 02, 2020
Dahua USA has issued a press release admitting a controversial point in the industry but an obvious one to the US FDA, that the thermal temperature...
Access Control Online Show - July 2020 - With 40+ Manufacturers - Register Now on Jul 01, 2020
IPVM is excited to announce our July 2020 Access Control Show. With 40+ companies presenting across 4 days, this is a unique opportunity to hear...