Genetec's Position on Axis / Canon DealBy John Honovich, Published Feb 10, 2015, 12:00am EST
With one independent IP video company being devoured by conglomerates after another, Genetec is now the last large independent left.
We asked Genetec about their reaction to Canon's deal to buy Axis. Here is their response and our analysis.
On the overall impact of the deal:
"It is clear that the market is flooded with good quality hardware, but this is not the case with good quality software. And this is Genetec’s advantage. Our overall position is that this event underscores the importance of our open, independent software offering. Genetec’s ability to remain a truly open, independent and neutral software offering is a critical differentiator and competitive advantage for Genetec – and a major benefit to our end users. This strengthens our position in the market and highlights our commitment to choice for our customers."
A little bit of a dig at Axis (and all the camera manufacturers) at the start but obviously the reality of the situation.
It could very well help Genetec to be independent, when so few others are left, if customers really make that a key buying factor. On the other hand, if the solution manufacturers (Avigilon, Axis/Milestone, Tyco/Exacq, etc.) are able to better cross-sell, infiltrate Gentec VMS accounts, it could be a problem.
On their relationship with Axis, Genetec commented:
"Our position is status quo, however we will have conversations with Axis about what this means for our on-going collaboration, just as we would with any other partner who was undergoing a merger or acquisition, and we will - as ever - remain pragmatic in our approach to this situation.
Genetec and Axis have worked for many years in a highly competitive market with directly competing interests, and we have managed this very well. Axis has always had close relationships with other competitive software manufacturers in the mid- to low-end of the market. However, Genetec's products serve a very different part of the market not served by any other manufacturer, and we do not see this acquisition changing this dynamic."
The big risk for Genetec is if Canon combines Axis and Milestone for the high-end of the market, which Genetec focuses on. It is certainly too earlier to tell what Canon does, but if that does happen, it would be a major competitive issue not only for Genetec but Avigilon, Exacq and pretty much everyone who serves the professional market.
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