Verint to Acquire Rontal, Offer PSIM

Author: John Honovich, Published on Apr 03, 2011

Verint has acquired Rontal Applications, an Isreal based PSIM provider. Verint will start providing its own PSIM offering based on Rontal's SimGuard. In this note, we analyze the fit and impact including sharing answers from Verint on our questions about the new PSIM offering.

Rontal Background

While Rontal is poorly known in North America, Rontal is roughly equivalent in size to companies such as Vidsys and Proximex who engaged in much heavier marketing.

Rontal's PSIM is named SimGuard, current version 4.7. Rontal claims a number of unique features including: 3D GIS model integration, predictive simulations and cross camera tracking that "uses a scenario-oriented, path-prediction algorithm that enables SimGuard to visualize a suspect's actual pathway, and presents it on a 3D virtual-reality display of the site."

Verint PSIM

Verint reports that it will immediately start offering its own PSIM, which to the best of our understanding will start as a re-branding of SimGuard. Verint shared their PSIM marketing brochure that provides an overview of their positioning. We find it to be a fairly common approach to PSIM positioning.

Verint reports that they will support a long list of 3rd party systems (mentioning Honeywell, GE, UTC and AgentVi as examples) but they emphasized that their ability to integrate with 3rd party systems using their open architecture is more important. We disagree. Everyone has some form of an 'open' architecture. The real value is having executed a broad range of third party integrations that can be used without additional cost, negotiation and risk. That noted, we do not know how good or bad Rontal's overall 3rd party support is.

Verint says the 'PSIM product is priced competitively, compared to other PSIM products. The actual costs for PSIM projects to the channel and customers depends on the scale and scope of the actual implementation.' This is as expected. Verint is not a company that tries to radically lower cost or expand the reach of offerings to the mass market. It's also likely not to be a significant change to Rontal's basic pricing approach.

Verint notes that their Nextiva VMS is supported by a number of other PSIM providers including: Proximex (now ADT), Vidsys, Kaplogic, Mer and Integraph.

Acquisition Details

An Isreal newspaper, Globes, is reporting that the acquisition price was for 'tens of millions of shekels.' Since a Shekel is worth roughly a US quarter, this would estimate the price paid at approximately $10 Million USD (or less). Globes also reports that Rontal's revenue in 2010 were $6.5 Million USD, the company was slightly profitable and employed 35 people. These estimates all appear roughly reasonable to us.

Impact

Since Rontal spent less on marketing than their PSIM peers, this may appear to have less of an impact than Orsus's or Proximex's acquisitions. However, all 3 acquisitions tell the same fundamental tale: PSIM independence is unsustainable (contrast this to the VMS software companies almost none of whom have been bought because they have been fairly to very profitable). On the positive side, as Rontal spent less on marketing, its return to investors are likely higher.

We anticipate Verint to treat Rontal like NICE treats Orsus. The PSIM solution will be built and marketed primarily around the company's existing products, customers and prospects.

6 reports cite this report:

CNL PSIM Profile on Sep 06, 2017
CNL has been one of the strongest advocates for PSIM, as one of the earliest entrants into the market releasing their command and control software...
Vidsys Hangs On, Gets $11M New Funding on May 16, 2016
The founder of Vidsys claims to have invented the term "PSIM" in 2005, and for some time, many thought that PSIM was going to be the new VMS. Over...
Why PSIM Will NEVER Be Popular on Jun 15, 2015
How do you like this vehicle? Big, ugly, hard to drive, terrible gas mileage, death trap - there's lots of negatives. Now, what if you were...
2011 Mid Year Video Surveillance Review on Jun 11, 2011
The first half of 2011 featured a number of important shifts within the video surveillance industry. In this report, we provide an overview of the...
Winners and Losers Spring 2011 on Apr 12, 2011
Now that the dust has settled from the numerous new announcements of the last month, we can better understand the impact on the overall video...
New Surveillance Products Spring 2011 Final on Apr 06, 2011
In this report, we provide a single source listing new video surveillance products announced in Spring 2011 and in conjunction with ISC West.For...
Comments : PRO Members only. Login. or Join.

Related Reports

Stanley Security Acquires 3xLogic, Kushner Becomes Product President on Sep 10, 2018
Stanley Security acquired 3xLogic a few months ago. However, the company has still not officially publicly announced it, leading many to wonder...
Dell Launches IoT for Surveillance on Sep 05, 2018
Historically, Dell has been a PC and server provider (e.g., "Dude, you're getting a Dell") and widely used for surveillance storage. However, in...
Hikvision FIPS 140-2 Cybersecurity Certification Examined on Aug 27, 2018
A week after the US government passed a law banning Hikvision, Hikvision announced it had obtained a FIPS 140-2 certification from the US...
$25 Million US COPS SVPP School Security Funding Examined on Jul 24, 2018
The US Congress has authorized the School Violence Prevention Program (SVPP) to fund various security measures and training to mitigate active...
Fail: Dahua "Didn't Check The Lux Levels but It Was Dark" on Jul 20, 2018
Dahua UK has been promoting their camera quality on LinkedIn: I, and others, asked what the lux level of the scene was. (background: Lux Rating...
Directory of Video Surveillance Startups on Jul 18, 2018
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known entity...
Arecont Acquisition By Costar on Jul 11, 2018
Arecont Vision acquisition by Costar Technologies has been approved by the court, concluding the bankruptcy process triggered by Arecont's...
Eastern and SavvyTech Merge, Form ENS, Targets ADI on Jul 09, 2018
ADI, ENS is coming for you. Or, at least, they hope. Two US distributors, NY based EasternCCTV and California based SavvyTech have merged, to...
Drops Dahua, Fenner Becomes ISS CMO on Jul 09, 2018
Hired to improve Dahua's miserable marketing just last year, Janet Fenner has quit Dahua, joining VMS manufacturer ISS as Chief Marketing...
New Top Bidder, Arecont Goes To Auction on Jul 05, 2018
$10 million cash will not be enough to buy Arecont. Though Arecont signed a purchase agreement with a turnaround specialist, a rival video...

Most Recent Industry Reports

25% China Tariffs Finalized For 2019, 10% Start Now, Includes Select Video Surveillance on Sep 18, 2018
A surprise move: In July, when the most recent tariff round was first announced, the tariffs were only scheduled for 10%. However, now, the US...
Central Stations Face Off Against NFPA On Fire Monitoring on Sep 18, 2018
Central stations are facing off against the NFPA over what they call anti-competitive language in NFPA 72, the standard that covers fire alarms....
Hikvision USA Starts Layoffs on Sep 18, 2018
Hikvision USA has started layoffs, just weeks after the US government ban was passed into law. Inside this note, we examine: The important...
Chinese Government Praises Hikvision Following Xi Jinping on Sep 17, 2018
The Chinese government council responsible for managing China's state-owned companies praised Hikvision’s obedience to China’s authoritarian leader...
Amazon Ring Spotlight Cam Tested on Sep 17, 2018
Amazon's Ring has released their latest camera entry, the Spotlight Cam, which we bought and tested in our Consumer IP Camera Analytics...
European Mega Security Firm Verisure Pushing Security Fog on Sep 17, 2018
The European mega security firm Verisure (Securitas Direct), with a reported 2 million customers, is pushing security fog, as shown in this BBC...
IP Camera Cable Labeling Guide on Sep 14, 2018
Labeling cables can save a lot of money and headaches. While it is easy to overlook, taking time to label runs during installation significantly...
Favorite Intercom Manufacturers 2018 on Sep 14, 2018
Intercoms are certainly increasing in popularity, driven by the integration of video and IP networking. But who is the favorite? On the one side,...
Vivotek 4MP Camera Tested (FD8379-HV) on Sep 13, 2018
Next in our series of updated 4MP testing, we bought and tested Vivotek's FD8379-HV, and entry level 4MP model claiming "top-notch quality video in...
Ascent / MONI Faces Lender Lawsuit and Debt Crisis on Sep 13, 2018
ASCMA, aka Ascent, aka Brinks Home Security, aka MONI, aka Monitronics is being sued by a group of their lenders who allege: As of June 30,...

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