Lenel vs Software House Markups Analyzed

Author: 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.

**** **** ****** **** *** ********* *** ******* ******* *** *** access ******: ***** (*******) ****** ******** ***** (*-****). *** ******** of ****** ****** ****** **** ******* *********** ****** *** *********** ** profitability *** *********** ***********.

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

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

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

***** ****** *********** *** *******, ******** ***** ******* ********* ******* higher. These *********** ** ******* ** *** **** *******/****** ******* ** dramatically *********, *** *** ******* ********** ******* **** *** **.

****** **** ****, ** ******* ******* ***********, **** ***********, *** detailed ********** ******** ** ***** *** ******** *****.

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

Markup *******

** ***** ** *** ******* / ******* ********, **** ********** ** **********/******* **:

****** ********** = ***** **** - ***** **** / ***** Paid

** *** ****** ** **%, **** * **** **** ***** $*** to ****** **** ****** ***** *** ***** ** ****** ** $675.

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

** ***** ** *** **** ***** ****** ** ********* *** ******, both ********* **** ******** (**:**** ***********, ******, *** */* *******) ************* ******** ********. ***** ** ***** **** ******** ** **** * *********** system, * '*******' ******** *******, *** ******* **, **** ** these ***** *** ********.

*** ******* ******* ********* **** ***** ** ******** ***** *** in **** *** **** $*** - $*** *** ******* *****, with ********* *** **** **** ** ********, *****, *******, *******, and ***** ****** ******** *** ******.

Product *********** 

*******, * *** ********** ******* ********* ** ** *** ******** ****** model.

***** ******** ***** ***** **** *********** ******** (***** ***********) *** ******** ******** *** ******** *********** ** *** *******,***** ** * ******* ******** *********** **** *** ******* ******** ******* ******** *** ******* ******* on ******** *********** *** *******.

** *******, *** ******** ** *** ***** ******** ******* ** increased ***** *********** **** ***** ******* ***** ****** ******** ****** and ********* *** **** *****, *** **** ************** ** ********** control ** *************, ***********, *** ******* ***** ** **** ********.

*******, ***** ****** **** *******-********* ************ **** ******** *****, *** an ******* ****** *** ********** ***** *** ****** **** * similarly ***** ***** ****** **** *** ********** *********** ******* *** licenses *** *********.

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

****** *** *********** ********** ** ******** ******** *** ***********, **** Lenel *** ******** ***** ***** ****** ****** ********* *******:

  • **** *** ****** ******* ***** **** **** ******* ***** *****, but *** **** ****** ******** ******* *** ***** *******.
  • **** *** ***** ******* ** *** ****** ********** ******* **** *** ********** ********* *** **** ******* *** ****** ***** ********.
  • **** ******* *** *********, **** ********* ****** ** ******* *** decades. ******* ****** ******** ** ***, **** ********* ******* ******* revenues ** **** ** *********** **********.

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

**** ********* ***** ******* ****** ********** *** ******* ** *** high-end ** *** ****** ******, **** **** ***** *****-**** *** even ************* *******. ** ******* **** ********* ** ****** ** our****** ******* ******. *** ********** ****** *** ********* *****:

*****

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

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

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

** *******, *** ******* ********** ******* ********* ** ********, ***** Software ***** ** *********** *** ***** **** *** ***** ********. In *******, ***** ******** ******* *** **** *** ** ********* from ******** ***** **** ********* "**** *******" *** **** ****** Lenel's ******** ** *******, *** ******* *** ********, **** ***********/******, and ******* ** ***** ** ****.

Lenel Markups ********** ********

************, *********** ******* **** ***** ******** ******* ** *** **% - 30% *****, **** *** ***** **%. ******** ********:

  • "[*** *****] ** ******* ***** **%".
  • "** ***** **** ** *** * **% ******. ********* ** the **** ** *** ******* *** *** ********, ** ***** a ********* **** **** ************, ** ***** **** **** **** 20%-22% ******."
  • "** *** *** *******, ** *** **%"
  • "**% *** **** ****. *** *********** ********* *** ******** ******* ******* them ****."
  • "******* *** ****** ** ****** **%."
  • "*** *****, *** ******* **% ****** **** **** ********* **** number ** *******, ****** ** ******* ********* ********* **********."

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

** ********, ******** ***** ****** ******* ****** ** ** ****** **** Lenel ****, **** **** ********* **% - **%, *** **** trending **** ******. ******** ********:

  • "** **** ********** ********* **** *** ********* ***** ***** ******** 30% ******* ** *********."
  • "***** ******* **** **** **-**% ** ******"
  • "**%, ********* ***** ** ** ***********"
  • "*** ******* **** ** ** **%. **** *** ******** ****** constant, ******** **** *** *** ****** (**+ ****) ****."
  • "*** **-**% ****** *** ******** ****** ********."

Maintenance ********* **********

** *******, ******* ** ********* *** ********* ******** ********** ** another **** ** ********** * ******, *** ** *** ********* for ** ****** *******. *** ******'* ****** *** ****** ** ***** *** ******* **** small, ****** ***** *********** ** * ******** ****-******* **** ** the *** ****, **** *** **** ** ******** ****** **** subsequent ***** ** ******* ******* ** *** ******.

*****'* ********* ****** ******** ******* ********* (***) ****** **** ~$*** *** small ******* **** *** *********** ******* ** ~$**,***+ *** ********** versions. *** *********** ***-******* ******** *** ******* ***** *** ******* by *** ***, *** ** ** *** ********** ******'* ********** to ******* ******* ******* ** ***.

******** *****'* ********* ******* ******** *********** ******* ********* **** ***** ******* **% - 25% ** *** ***** ***** ** * ******'* ******** ********, as ****** ** $** *** ***** ******* **** ~ * doors, ******* ** $**,*** *** *****, *********, ** ******* ********** systems.  ** **** *****, **** ********* **** ** ***** ** order ** ******* ********* ******** ******** *** ******* **** ******* technicians.

Market *******

** ******* **** ******* *****, **** ********* **** ******** ******* pressure **** ********** ***********. ******* **** *** ********* ***** *******, *** ******* ******** *********** *****, **** ***** *** ******** ***** ********* **** ********** ******* with ******* *** ******* ** ***** *********.

*******, *** *** ******** **************** ********** ***** ** ******** ***** dealers' *****. ******* *** **** '****-**' ***** ** ********* ****** in ******** **** ****** ********, *** **** ** ******** **** a ***** ****** ** **** *********, *** ** ** ****** population ** ********** ********* **** *** ****-**** ******** ** *********.

**** ******** ***** ***** ******** ***********, *** ***** ** * change *********** ***** *** ******** ** ******** *** ********, ***** can *** ******** *** ******* **** ** * ******** ******* (e.g., *** *** ******* ***** *******) *** ****.

Comments (6)

Undisclosed #1

10/15/16 04:00pm

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

Thumbnail img 0859

Scot MacTaggart

10/16/16 04:04pm

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.

Ryan Butler

10/19/16 12:17pm

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.

Thumbnail pp 5

Brian Rhodes

IPVMU Certified | In reply to Ryan Butler | 10/19/16 04:55pm

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.

Thumbnail profile pic

Ethan Ace

IPVM | In reply to Ryan Butler | 10/19/16 04:58pm

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.

Brian Havekost

10/20/16 02:11pm

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

Directory of Video Intercoms on Nov 13, 2018
Video Intercoms, also known as Video Door-Phones or Video Entry Systems, have been growing in the past decade as more and more IP camera...
Beware Amazon Go Store Hype (Tested) on Nov 13, 2018
IPVM's trip to and testing of Amazon Go's San Francisco store shows a number of significant operational and economic issues that undermine the...
Video Surveillance Hard Drive Size Statistics 2018 on Nov 08, 2018
What is the most common hard drive size for video surveillance? 150+ integrators answered: What size hard drive do you most commonly use? What...
Axis 2N Intercom Tested on Nov 08, 2018
Axis expanded its video intercom business buying Czech-based 2N in 2016. Despite competing against owner Axis' intercoms, 2N recently registered as...
Haven Targets School Security with Lockdown Lineup on Nov 08, 2018
Haven, a US startup founded in 2014 as a residential-focused company, has now raised funding and is offering a lineup of commercial grade locks for...
Directory Of Video Doorbells on Nov 06, 2018
Video doorbells are one of the fastest growing categories in video surveillance, especially among residences. The optimal placement of these...
Favorite Video Surveillance Hard Drive Manufacturer 2018 on Nov 06, 2018
Who is the favorite hard drive for video surveillance use? 150+ integrators answered: What is your preferred brand/model of hard drive for...
HID: Stop Selling Cracked 125 kHz Credentials on Nov 05, 2018
HID should stop selling cracked 125 kHz access control credentials, that have been long cracked and can easily be copied by cheap cloners sold on...
Worst Products on Nov 03, 2018
Security integrators periodically report on their favorite and worst products to IPVM. These are known integrators who IPVM pays to answer surveys....
Solar-Powered, Smart-Phone-Based Access Kit (VIZPin) Examined on Nov 02, 2018
Cloud-based access control company VIZPin is releasing a solar-powered and smart phone based access control system for gates and other remote...

Most Recent Industry Reports

Hikvision Silent on "Bad Architectural Practices" Cybersecurity Report on Nov 14, 2018
A 'significant vulnerability was found in Hikvision cameras' by VDOO, a startup cybersecurity specialist. Hikvision has fixed the specific...
French Government Threatens School with $1.7M Fine For “Excessive Video Surveillance” on Nov 14, 2018
The French government has notified a high-profile Paris coding academy that it risks a fine of up to 1.5 million euros (about $1.7m) if it...
Integrator Credit Card Alternative Divvy on Nov 13, 2018
Most security integrators are small businesses but large enough that they have various employees that need to be able to expense various charges as...
Directory of Video Intercoms on Nov 13, 2018
Video Intercoms, also known as Video Door-Phones or Video Entry Systems, have been growing in the past decade as more and more IP camera...
Beware Amazon Go Store Hype (Tested) on Nov 13, 2018
IPVM's trip to and testing of Amazon Go's San Francisco store shows a number of significant operational and economic issues that undermine the...
Magos Radar Company Profile on Nov 12, 2018
Magos America General Manager Yaron Zussman admits when he first came across Magos, he asked himself: "What's innovative about radar?" Be that as...
Genetec Privacy Protector Tested on Nov 12, 2018
Genetec has built Kiwi Security's Privacy Protector into Security Center, an analytic which anonymizes individuals in cameras' fields of view...
Chinese Government Increases Hikvision Ownership on Nov 12, 2018
The Chinese government - Hikvision's controlling shareholder - is increasing its ownership of the video surveillance giant amid sharp stock price...
Axis: "No One Wants To Buy A Camera" on Nov 09, 2018
Axis has, in its own description, made a bold declaration: The industry is changing so rapidly that the following statement might seem bold but...
Video Surveillance Hard Drive Size Statistics 2018 on Nov 08, 2018
What is the most common hard drive size for video surveillance? 150+ integrators answered: What size hard drive do you most commonly use? What...

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