Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security

* "******* *********" ** being ****, *********** ******** *** **** ****** Buchanan **********. *******, ******* that *********, ** ** a "***** ****" ** be ** *** ********.

****** **** * *-**** presentation ** *** ******* state ** *** ******** during ***** ** ****** about * *** ***** (Growth, *********, ********* *******, Threats, ****** ******) **** illuminated ******* ******, ****** below:

• ******* ********* - ****** Feel **********
• **** ***** ******* ******
• **** ******* ****** ** Complexity
• ****** *******
• *** *******
• **** ***** *** ** Investment
• *** & ****** ***************
• ********* *******
• *************** ** ********, *** Service ** * *******
• ********** **** *** **** and ******
• ****** ** ********
• **** ****** *******
• ******** ***** ** ****** Share *********
• ******** ********* = ***** Attrition

**** ******** *** ************ and ******** ****** ************ and *****.

[***************]

Strange ********* - ****** **** **********

****** **** *** '******* narrative' ** **** ****** feel ********** ******* ** the ********* * *****:

• *** ****** ** *********
• ****** ******* **** *** scale ** *** *********
• ****** ******* **** ***** companies & ****
• *** **** *********** ****
• **** ********* ****** *********** systems ***** *** **********
• ********* ********** **** **** it *** ********* *** incumbents ** *******

******* ****** ******* *** characteristics ***** ******* * widening ***/*** ****** *** confusion *** ******* ** the ******* *******, ********* to ******. ** ***** is *** ****** ********* versus *** ********* ****.

Data ***** ******* ******

*******, ********* ** ******, the ******* ** **** the **** **** *** average ***** ******* ***** is ***** "****** **** they **** **********." ******* might ** *****, ** said, *** ** ***** be * ****** **** expensive ** ********* * new ********, *** **'* countered ** "***** ************ in **********" *** ******** appreciation *******. ** ** a "***** **** ** be ** *** ********," according ** ******.

****** **** *** "******* narrative" ** *****:

*********, **** ****** *** us ** **** ****, 'yeah, **’* * ***** time ** *** **** the ********.' **** ****** want ******* ** ****** this **** ** ***** for ****.

Most ******* ****** ** **********

****** **** *** * widely-believed-in ******* ****** ***** are **** ** *** "strange *********," *** ****** a "******" **********, *** little ****. *** **** serious ******, *** *** that ******** **** **** a ********* ** ********** complexity. ********* **********--**** ******/*** High ******:

**** *** ** ****. There ** ********** ********** across *** ***** ** our ******** *****. *** rate ** ****** ** faster, *** **** ** overwhelming ** ****. ********* management ************** ********.

Medium *******

****** ****** ***** ******* he ********** ** ** at **** *** ****** in ***********. **** ******** the *********:

• ***--*** ****** ******: "*** is *** ***. *** disruptive. ******* ******** ***** detectors **** **** ****** for ********** *** ******** attractive ********, *** *******--** ** *** ***--******** ***** **** ** well. ** *** ***** it *** ******* ****** with * ******** *** or * **** *** in ***** ****** ****." In ****, ****** ****, the ********* ** *** companies ***** ***** ********** in *** *****, ***** would ******* ********.
• **** ***********--*** ****** ******: "Is ** ****** **** some *** **** ******* will **** *** **** a ********** *********** ******** and **** *** *** of ********? ********, *** not ******." ****** ***** the ********'* ****-*********** ********* and ************ ******** ** counters ** **** ****.

***** ** ** **** that *******-******** ***** ********* have**** ****** ***** *** 1970s, ******* ** *** they *** *** ** the **** ****** ** SimpliSafe ** *********. ********* are ******** ** ********* and ****** ** *** up, **** ** ** likely **** ********* **** continue ** **** **** and **** *********** ****** to *** ** ***** systems **********.

*** ******* ** **** existing *** ** *** unrealized **** ********* *** and **** **, ** there ******, **** ****** and **** ** ****** to *********** *** ******** demands ** *** ******. Traditional ******** ********* *** distributors ** *** ******* with *** **** ********* and ******* ** *****.

Low *******

****** ************* *** ***** 3 ** *** *******:

• ******** (****** *** **** maybe * *% ****** share)--Higher ******, *** ***** low: "***** *** **** good ******* *****. *** two *** ****, ******* and **&* *** ** and **** *** *** because **** ****'* *** target ******* *** ********* caught ** **** ****."
• ****** **********--*** ******: "****** say "*** ****** *** want ******** ******* **** it." *** ****. ***** are ****** ** ************ households *** **** **** technology. *** ********** ******* across *** ***** ** booming *** ****-*** *********** is **** ** *** rise."
• ***** ********* *********--*** ******: "Bigger ** ******. ******, ADT, **** **** ***** you ******* ****’** ****** and *** ***’* *******. The ******** **** ***********. That ** ********* ** a ******, *** ** will *** ******* ******* the ******* ****** ***."

***** ** ** **** that ******* (******* **** / ****** ****) *** AT&T (******* **** / exited ****) **** *** in *** **** ***, there ** ******* ******** them **** ****** *****. And ***** *** ******* others *** **** ****** in *** *** ***** well, ********* *** **** in *** **** *****:

• ******* (******* ** ****)
• ********* (******* ** ****)
• *******/**** ****** (******* ** 2011)
• *** (******* ** ****)
• ******* **** (******* ** 2013)

Fear ***** *** ** **********

****** ***** **** **** though ** ********* *** threats ** ****** ***-***********, the ********, ** *******, feels ********** *** **** can ****** *** **** of ******* **** *** industry:

** **** ***** ** this ********. *’* * little ********* ***** ***** existential *******.

*****, ******* ******* ** not, *** **** **** effect. ********** ***** *** less *** ** ****** in ** ******** **** feels *****.

ADT & ****** ***************

****** ************'* ***** ***** ***** is ****************** **** *******-******** ****** ** ****** Home ********. ****** **** **** given **** *******'* ***********, though, *** ******* ********** were ********:

** ******' ******, **** companies *** *** *** same ********** ***** ***** companies *** *** **** simply ********** ******** ******* from *********** ******.

******* *** *** ****** Home ******** ** ******* any *** ************. ** you **** ** *** suite ** ******** ****'** offering, ****'** *** ***** with * ****** **** package. ****'** *** ** understanding ** *** ***** and * ***** **** that *** ***** *********.

*******, ****** **** *** was ******** ******** ***** and ******** *********. ** said **** *********' ******** were ********** ** *********** issues, *** ** ******* from *** ** *** of *** ***** ******* he ***********.

******* ** *** *** brand **** ** ****** Home ******** ** ****** to **** ** *** of *** ******** ** debatable, ***** ***** *** been********* ****** *** ***** name ************* ******* ***** *** put *** *******,********************* **** ******** *******.

Multiples *******

****** **** **** ******* multiples **** ******* **** a ** ******** ** M&A. *** ***** ********** in ****, ************* ******** ** ********* **** ** ************** ** * *** of ***** ******** *****.

********, ****** **** **** most ************ ** *** industry ***** *** ******* between *** *** *** RMR. ** **** **** while ** *** * "spooky ****" ** *** industry, ** *** * good ****, ** ****:

*** ******* ** **** the ******** ** ***** trading **** ******** ****** for *** *** ***** players. ** ***** ** that **'** ******** ** see ** ********** ****** of ************ ****** ***** down ** *** *** to *** *****.

*** ******* **** *** above **** ** **** when *** ** *** industry's ******* ******* *** performing ** ****** ********* to *** *******, ** is ****** **** ********* could **** **** ** a **** ** **** away ******* ** * lack ** *** *********, a **** ** *** innovation *** * **** of ******.

Commoditization ** ********, *** ******* ** * *******

****** **** *** ******** would *** ****** ************ as ** ***** **** and **** ****** ***** ubiquity:

***'** ***** ** **** all ***** ****** ** data ****** **** *** filter--you--at ***** ***** ***** and *** ******** ** going ** ****** *** to **** * ******** decision ** ************ ** the ********'* ****** ** protect ***** ****** ** their ******. ** **** not ****** * *********. There **** ** ***** pressure, *** ****, *** it ** * ******** service.

** * ******, *** video ************ ******** ** already ************ ********* ******* *** **** storage. *******, ******** *** still ***** ** ** able ** ** **** at * *******. *** panelists ** *** ***** Monitoring ***** ** *** 1 ***** ** ****** about *** **** ** mary ***** **** **** to ******* **** ***** to *** ******** *** realize ***** ******* *******. (Solink,*******,***** ***).

Growth ** ********

****** **** *** ******** industry ******* *** **** growth ** ***** ******* over *** **** ** years ** ~*% ****, marked ** ** *% climb **** $** ******* in **** ** $** Billion ** **** *** then * **** ** slightly **** ****** **** around ****. **** *** followed ** * *% climb **** $** ******* in **** ** $** Billion ***** ** *** in ****, ** **** in *** ******* **** the ****** *****:

**** $** ******* *** split **% / **% between ******* *** ***** Revenue, *** ********** *** Service ******* ** ****.

Move ****** *******

******** ** ******** *****, the ***** *** **** shifting **** ****** ********** and ******* (** ****, the ***** *** **% Install *** **% ********** and *******), ******* * trend **** **** ******** and ****** *******, ** seen ** *** ********* excerpt **** *** ****** report:

********** *** ******* ******** were ** *% **** 2017 ** ****. **** reflects * ****** ******* from ******** *****--*% ****** in ****, *% ****** in ****, *% ****** in ****.

********* ** *** *% Monitoring *** ******* ******* growth ********:

• ****** **** ***** *** more ********
• ****** ******* ***/****
• ****** ** ********** ********* rates
• ***** ******** ** * SECaaS *****

***** *** ************ ******* was ** *%, ****** been ******** ** ****** unit ***** *** **** services ** **** ** an ****** ** ***** commercial ********, ********* ** Barnes.

****** ***** ********, ****** by **** ******* ** insurance *** ********* *******, improvements ** **********, ******** costs, *** ********* ******** sophistication *** *********.

Regional ***** ** ****** ***** *********

****** ***** *** ******** into * ******* ********, each **** ***** *** piece ** *** ****** share ***:

• ***** ***** ********* **** nearly **** *** ******** at **%
• ***** ****** ****** **** the ******** ********* **** include **** ******* ** ADT (**% ** *** national *****), ******** ** MSO's ** ***** ********* ("4 ** * ******* these ****") (*%), *** JCI *** ****** **** at *%.
• ******** ***** ********* **** 12% ** *** ******* security ******** *******.

*** ******* ***** *********** the ********:

****** **** ***** **** the ********** ** ******* alarm ********* **** **** older **** ** ***** old *** ** ** 6% ***** **** **** the ****** *** **%. At *** ********* ** 2019, **** ****** *** at **%.

***** *** ********* *****, family-owned *** ******** **********, Barnes ****. ** ** 30 ***** ***, ****** noted ***** *** * swell ** ***** ********* and ***** ***** ********* are ******* ** ****** cash *** ** *** business ***'* ****** **** to ********.

****** ***** **** *** leading ** ********* ****** share *** ******* *********:

****** ***** ** *** smaller ******* ** ********* and **’* ******* ** how ******* ** ** to ******* * ******** in *****’* ******** ***********. People *** **** ******** to ******** *** *** out.

** **** **** *** reason **** ******* *** getting ******* *** *** that ****, ******, *******, and ****** **** ****** in *** "******* ***** butts."

Stickier ********* = ***** *********

****** ******* ** * small ******* ******* ** performance ** *** ********, noting **** ******** ******* as * ********** ** RMR *** ******* **** 11.6% ** **.*%

****** **** **** *** a ***** ********** **** the ******** *** ****** toward ******* **** ******* contracts. ****** **** **** services *** ** ******** customers, ***** ********** ** is * ******** ********* rate, ** *********** *****:

**** ***** ** ******* with *** ********* ***** of *** ****** ******** players:

Poll / ****