Lenel vs Software House Markups Analyzed

By: Brian Rhodes, Published on Oct 14, 2016

This note breaks down and contrasts the markups between two big access brands: Lenel (OnGuard) versus Software House (C-Cure). Our analysis of dealer markup survey data reveals interesting trends and differences in profitability and competitive performance.

Markup Comparisons

The average markups are:

  • Lenel OnGuard: ~25 - 35%
  • Software House CCure: ~30% - 50%

While markup percentages may overlap, Software House markups generally trended higher. These differences in markups do not mean enduser/resell pricing is dramatically different, but the profits respective dealers take may be.

Inside this note, we examine product differences, cost comparisons, and detailed integrator feedback on Lenel and Software House.

**** **** ****** **** and ********* *** ******* ******* two *** ****** ******: Lenel (*******) ****** ******** House (*-****). *** ******** of ****** ****** ****** data reveals *********** ****** *** differences ** ************* *** competitive ***********.

Markup ***********

*** ******* ******* ***:

  • ***** *******: ~** - 35%
  • ******** ***** *****: ~**% - **%

***** ****** *********** *** overlap, ******** ***** ******* generally ******* ******. ***** *********** in ******* ** *** mean *******/****** ******* ** dramatically *********, *** *** profits ********** ******* **** may **.

****** **** ****, ** examine ******* ***********, **** comparisons, *** ******** ********** feedback ** ***** *** Software *****.

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

Markup *******

** ***** ** *** ******* / ******* ********, **** ********** ** calculated/defined **:

****** ********** = ***** Sold - ***** **** / ***** ****

** *** ****** ** **%, then * **** **** costs $*** ** ****** with ****** ***** *** labor ** ****** ** $675.

Component ***** *******

** ***** ** *** much ***** ****** ** ********* per ******, **** ********* have ******** (**:**** ***********, ******, *** */* *******) and********** ******** ********. ***** ** ***** both ******** ** **** a *********** ******, * 'project' ******** *******, *** marking **, **** ** these ***** *** ********.

*** ******* ******* ********* with ***** ** ******** House *** ** **** the **** $*** - $500 *** ******* *****, with ********* *** **** type ** ********, *****, sensors, *******, *** ***** effort ******** *** ******.

Product *********** 

*******, * *** ********** ******* companies ** ** *** hardware ****** *****.

***** ******** ***** ***** both *********** ******** (***** ***********) *** ******** ******** and ******** *********** ** the *******,***** ** * ******* Security *********** **** *** ******* standard ******* ******** *** focuses ******* ** ******** development *** *******.

** *******, *** ******** on *** ***** ******** results ** ********* ***** competition **** ***** ******* based ****** ******** ****** and ********* *** **** parts, *** **** ************** or ********** ******* ** manufacturing, ***********, *** ******* costs ** **** ********.

*******, ***** ****** **** factory-supported ************ **** ******** House, *** ** ******* system *** ********** ***** out ****** **** * similarly ***** ***** ****** once *** ********** *********** modules *** ******** *** purchased.

Cost ************

****** *** *********** ********** in ******** ******** *** development, **** ***** *** Software ***** ***** ****** ground ********* *******:

  • **** *** ****** ******* lines **** **** ******* price *****, *** *** have ****** ******** ******* and ***** *******.
  • **** *** ***** ******* in *** ****** ********** like*** **** *** ********** ********* *** much ******* *** ****** their ********.
  • **** ******* *** *********, they ********* ****** ** service *** *******. ******* system ******** ** ***, both ********* ******* ******* revenues ** **** ** maintenance **********.

Head ** **** ***********

**** ********* ***** ******* market ********** *** ******* at *** ****-*** ** the ****** ******, **** many ***** *****-**** *** even ************* *******. ** covered **** ********* ** detail ** ********* ******* ******. *** ********** ****** are ********* *****:

*****

** ***** ** *** ***** ****** ******* ******* Profile:

******** *****

** ***** ** *** ******** ***** ****** ******* Company *******:

** *******, *** ******* difference ******* ********* ** hardware, ***** ******** ***** is *********** *** ***** uses *** ***** ********. In *******, ***** ******** pricing *** **** *** be ********* **** ******** House **** ********* "**** Servers" *** **** ****** Lenel's ******** ** *******, but ******* *** ********, door ***********/******, *** ******* is ***** ** ****.

Lenel Markups ********** ********

************, *********** ******* **** Lenel reported ******* ** *** 20% - **% *****, with *** ***** **%. Comments ********:

  • "[*** *****] ** ******* about **%".
  • "** ***** **** ** see * **% ******. Depending ** *** **** of *** ******* *** the ********, ** ***** a ********* **** **** relationship, ** ***** **** down **** **%-**% ******."
  • "** *** *** *******, we *** **%"
  • "**% *** **** ****. *** competitive ********* *** ******** margins ******* **** ****."
  • "******* *** ****** ** around **%."
  • "*** *****, *** ******* 35% ****** **** **** depending **** ****** ** systems, ****** ** ******* installed ********* **********."

Software ***** ******* ********** ********

** ********, ******** ***** ****** markups ****** ** ** higher **** ***** ****, with **** ********* **% - **%, *** **** trending **** ******. ******** included:

  • "** **** ********** ********* with *** ********* ***** means ******** **% ******* on *********."
  • "***** ******* **** **** 35-55% ** ******"
  • "**%, ********* ***** ** be ***********"
  • "*** ******* **** ** is **%. **** *** remained ****** ********, ******** only *** *** ****** (50+ ****) ****."
  • "*** **-**% ****** *** remained ****** ********."

Maintenance ********* **********

** *******, ******* ** recurring *** ********* ******** agreements ** ******* **** of ********** * ******, but ** *** ********* for ** ****** *******. *** ******'* ****** *** either ** ***** *** typical **** *****, ****** digit *********** ** * straight ****-******* **** ** the *** ****, **** the **** ** ******** coming **** ********** ***** or ******* ******* ** *** ******.

*****'* ********* ****** ******** ******* Agreement (***) ****** **** ~$300 *** ***** ******* with *** *********** ******* to ~$**,***+ *** ********** versions. *** *********** ***-******* upgrades *** ******* ***** are ******* ** *** SUP, *** ** ** the ********** ******'* ********** to ******* ******* ******* an ***.

******** *****'* ********* ******* ******** *********** ******* generally **** ***** ******* 20% - **% ** the ***** ***** ** a ******'* ******** ********, as ****** ** $** for ***** ******* **** ~ * *****, ******* of $**,*** *** *****, multisite, ** ******* ********** systems.  ** **** *****, this ********* **** ** valid ** ***** ** receive ********* ******** ******** and ******* **** ******* technicians.

Market *******

** ******* **** ******* aside, **** ********* **** tangible ******* ******** **** increasing ***********. ******* **** the ********* ***** *******, *** ******* ******** *********** *****, **** ***** *** Software ***** ********* **** themselves ******* **** ******* not ******* ** ***** offerings.

*******, *** *** ******** interoperability ********** ***** ** Software ***** *******' *****. Despite *** **** '****-**' being ** ********* ****** in ******** **** ****** platform, *** **** ** changing **** * ***** system ** **** *********, due ** ** ****** population ** ********** ********* that *** ****-**** ******** as *********.

**** ******** ***** ***** strictly ***********, *** ***** of * ****** *********** equal *** ******** ** entirely *** ********, ***** can *** ******** *** opening **** ** * takeover ******* (*.*., *** new ******* ***** *******) *** ****.

Comments (6)

Totalling the scorecards gives Lenel a marginal edge over SH*, yet from the standpoint of the dealer at least, SH seems more attractive.

  1. Equally competitive on price
  2. Better margins
  3. More lock-in

Lenel might be easier to sell since it is more open, but I'm not sure how important that is in these types of systems.

Is it easier to become a Lenel dealer, perhaps?

*6 Greens, 3 Reds, 0 Yellows vs 6 Greens, 2 Reds, 1 Yellow

This is useful information. I'd really like to know how they compare in terms of customer satisfaction and ease of use though, especially against other enterprise systems. I know it's hard to set up that kind of testing with end users, but without taking the complete user experience into consideration, it's hard to determine value.

One access control company that always seems to get ignored is Kantech (manufacture their own hardware). Tyco has owned and operated two seemingly competitive access control companies Kantech and Software House. I wonder if the Johnson Controls merger will change this and they can work on development of just one platform.

Kantech isn't ignored. For example, see: Tyco Kantech Access Control Company Profile.

One big structural difference is that Software House is a dealer-only offering, but Kantech is widely available through distribution. While CCure is often used in large, high-end deployments, Kantech is suited for smaller, more basic access systems.

The Tyco Kantech/Software House issue is similar to the Honeywell WinPak/Pro-Watch line up, also. One distribution line, one dealer line. Ingersoll Rand used to be the same way also when they had their enterprise line which was dealer, and then Bright Blue through distro.

It seems to be getting less common, though.

I work for a company that is a dealer for both Lenel and Software House.

This is a good comparison. The point of open hardware being one of the bigger differences is true.

The good part of open hardware is that the end user can switch to another software platform if they get frustrated with Lenel. The good part of proprietary hardware, as Software House has shown, is that they control the hardware development and are able to bring hardware enhancement to market more quickly.

I support small, medium, and large systems on both platforms. Each product and each manufacturer has good points and issues. One of the prime determining factors should be the functionality that the customer, the end user, needs and the capability of the dealer to deliver and support a system that functions in the manner that the customer expects.

Point - the software support agreement for a small Lenel system is in line with the Software House support costs. Throwing in the cost of software enhancements isn't a reasonable comparison unless you add those costs into the Software House side.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Security Integrators Outlook On Remaining Integrators In 2025 on Aug 22, 2019
The industry has changed substantially in the last decade, with the rise of IP cameras and the race to the bottom. Indeed, more changes may be...
ZK Teco Atlas Access Control Tested on Aug 20, 2019
Who needs access specialists? China-based ZKTeco claims its newest access panel 'makes it very easy for anyone to learn and install access control...
Suprema Biometric Mass Leak Examined on Aug 19, 2019
While Suprema is rarely discussed even within the physical security market, the South Korean biometrics manufacturer made global news this past...
Biometrics Usage Statistics 2019 on Aug 13, 2019
Biometrics are commonly used in phones, but how frequently are they used for access? 150+ integrators told us how often they use biometrics,...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...
ProdataKey (PDK) Access Company Profile on Aug 09, 2019
 Utah based ProdataKey touts low cost cloud access, wireless controllers, and no dealer required national distribution availability.  But how does...
Axis Door Station A8207-VE Tested on Aug 07, 2019
Axis newest door station, the A8207-VE, claims to deliver "video surveillance, two-way communication, and access control" in a single device. But...
Razberi Technologies Company Profile on Aug 06, 2019
Razberi says they have doubled their revenue in the first half of 2019, citing their proprietary camera hardening and cybersecurity capabilities...
Online Video Surveillance Sales Comparison - Amazon, B&H, CDW, LTS, Super Circuits, More on Jul 31, 2019
IPVM has uncovered the key trends and top options being offered across commonly used surveillance sellers. How has the market shifted since we...
Ionodes Company Profile on Jul 31, 2019
What happened to Ionodes? With seasoned leadership from Jean-Paul Saindon founder of SmartSight and Dr. Michael Gilge, founder of VCS, back in...

Most Recent Industry Reports

TMA Apologizes to Amazon / Ring on Aug 23, 2019
Not only is Amazon / Ring making major incursions into the residential security market, the organization representing the biggest incumbents, The...
China Dahua Replaces Their Software With US Pepper on Aug 22, 2019
What does a US government banned company do to improve its security positioning in the US? Well, Dahua is unveiling a novel solution, partnering...
Security Integrators Outlook On Remaining Integrators In 2025 on Aug 22, 2019
The industry has changed substantially in the last decade, with the rise of IP cameras and the race to the bottom. Indeed, more changes may be...
First GDPR Facial Recognition Fine For Sweden School on Aug 22, 2019
A school in Sweden has been fined $20,000 for using facial recognition to keep attendance in what is Sweden's first GDPR fine. Notably, the fine is...
Anyvision Facial Recognition Tested on Aug 21, 2019
Anyvision is aiming for $1 billion in revenue by 2022, backed by $74 million in funding. But does their performance live up to the hype they have...
JCI Sues Wyze on Aug 21, 2019
The mega manufacturer / integrator JCI has sued the fast-growing $20 camera Seattle startup Wyze. Inside this note: Share the court...
Dahua 4K Camera Shootout on Aug 20, 2019
Dahua's new Pro Series 4K N85CL5Z claims to "deliver superior images in all lighting and environmental conditions", but how does this compare to...
ZK Teco Atlas Access Control Tested on Aug 20, 2019
Who needs access specialists? China-based ZKTeco claims its newest access panel 'makes it very easy for anyone to learn and install access control...
Uniview Beats Intel In Trademark Lawsuit on Aug 19, 2019
Uniview has won a long-running trademark lawsuit brought by Intel, with Beijing's highest court reversing an earlier Intel win, centered on...
Suprema Biometric Mass Leak Examined on Aug 19, 2019
While Suprema is rarely discussed even within the physical security market, the South Korean biometrics manufacturer made global news this past...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact