Is UTC's Plan for GE Security a Mistake?

By: John Honovich, Published on Nov 13, 2009

UTC's Fire and Security CEO is beginning to reveal UTC's plans for GE Security's assets. We think two of the most important are risky.

Here are the 6 key strategic elements (as defined in Slide 9 of UTC's presentation [link no longer available]):

  1. Add Edwards Fire group
  2. Complement Lenel [link no longer available]
  3. Integrate Casi-Rusco [link no longer available] into Lenel platform
  4. Accelerate Development of VMS platform
  5. Combine UTC services with GE products
  6. Generate cost savings

Will UTC's Plan for GE Security Work?


While consensus exists around the value of the fire business, the access and video components may face significant challenges.
  • Integrating Casi-Rusco into Lenel is redundant. Also, Lenel is a more modern system than Casi-Rusco. Why hold Lenel back to integrate a legacy system that is on its way out?
  • Why accelerate development on a VMS platform that has fallen severely behind? Is it worth it to accelerate Kalatel or Visiowave development? I guess they are stuck with GE video but would it not have been easier to just buy modern systems like Milestone, Genetec, etc? And how does this impact the OEM deal with OnSSI for Skypoint - another more modern system?
  • Does this really complement Lenel or would smaller acquisitions of more modern technologies that are clear fits work better?

2 reports cite this report:

UTC-GE Closed: What Becomes of GE Security's Products and Brands? on Feb 28, 2010
Important new information on the future of GE Security's products and brands have been disclosed as part of the formal confirmation that the UTC-GE...
GE Security Sale -- UTC to Buy GE Security on Nov 09, 2009
UTC has agreed to buy GE Security - confirmed directly by UTC [link no longer available]. Nonetheless, GE Security suffers from significant...

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