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"Secure Surveillance for Safety"- Says Oh Tee Lee, Regional Director, Axis Communications
SME WORLD Bureau
Nov 2011
Nov 2011
Surveillance has become a serious concern for small and medium enterprises, shops as well as residential complexes apart from the large companies. In the past decade, this area has been rapidly developing in India owing to random security lapses and grim repercussions. The growth of shopping malls, open plan offices, bank branches as well as other retail segments has increased the need for surveillance not only for larger issues of security like terrorist attacks but for petty shop thefts and irregularities of clients and staff. The network video surveillance market in India is currently valued at USD 26.1 million and is poised to grow to USD 89.2 million by 2013. India has the second highest forecasted growth in Asia with a CAGR of 22.1% as per IMS 2010 Asia report.
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A global pioneer and market leader (as per Frost & Sullivan and J.P. Freeman) in IP surveillance technology and network video solutions like surveillance cameras, Axis products and solutions focus on security surveillance and remote monitoring, and are based on innovative, open technology platforms, driving the technology shift from analog to digital video surveillance. This Swedish company has specialized offerings for the SMB segment. Axis launched the first surveillance camera with IP network in 1996.Range of Deployments
Since its commencement of operations in India in 2007, the company has wide range of deployments in all the major sectors with specific focus on all sizes of end-user segments like Education, Banking and Finance, Retail, Transportation (airports, railways, harbors, traffic surveillance, toll stations), Government agencies (authorities, police, military, health care, prisons, museums, casinos) and Industrial areas (process industries, engineering, construction, pharmaceutical, energy companies). The product portfolio consists of wide range of network video solutions for a large number of applications, specializing in professional network video solutions for surveillance and remote monitoring, network video cameras, video encoders, video management software and accessories for entry-level to professional installations and print servers, which simplify printing in multi-platform environments by supporting virtually all printer models and networks using wired or wireless media. The main distributors in India are Ingram Micro and Anixter. Axis also enjoys key strategic partners with G4S, Honeywell, Tyco and Siemens.
Technology Insight
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Most surveillance installations in India continue to involve legacy analog technology, popularly known as CCTVs, which provide no opportunity for remote access. With the constant security threats faced by this subcontinent, India is a key market to drive the adoption of network based or IP surveillance solutions which provide the advantages of remote monitoring, video analytics and automatic security alerts to name a few. Axis has an indigenous IP-based technology platform. Axis' ETRAX and ARTPEC chips are considered industry-benchmark core components in the network management and communications and image-compression areas. The technology enables easy installation, provides compact and powerful solutions allowing equipment to be rapidly and securely connected to virtually any wired or wireless network. Leading the Asia Pacific region operations of this prestigious company from Singapore is the Regional Director of Axis Communications is Oh Tee Lee with his abundant experience and outlook.
SME WORLD presents its readers the insight shared by Oh Tee on the wider applications of security and surveillance products and its key benefits with special stress on the need and solutions tailor made for the SME players.
What is the state of the Indian surveillance market compared to the other APAC countries like China, Korea, Japan, Malaysia and Singapore in terms of penetration of technology and its usage?
India is one of the important markets for security and surveillance industry and a key market for Axis too. The Indian security and surveillance market is growing at a rapid pace and comprises of about 30% of the entire security industry. The industry across the globe is largely dominated by analog-based installations, commonly known as CCTVs (closed-circuit television). However, today the industry is undergoing a radical shift and the IP–based (digital) network video surveillance cameras are gaining rapid momentum.
An Indian customer is a smart customer and always looks for value for money products. One advantage with India is the customers are ready to explore and adapt new technologies much faster than some of the other countries.
What has caused the shift of technology from analog to digital in the Indian market? How different is the digital system from the analog one?
We witnessed an increase in the number of consumers shifting from analog surveillance cameras to network video surveillance - because of the surveillance benefits these cameras offer such as superior technology features, flexibility and affordability.
Further, IP based system is moving towards HDTV image qualities and distributed intelligent video capabilities; which will eventually provide better clarity, more details and color reproduction.
IP-based solutions provide the following advantages in comparison with analog solutions:
- Possibility to have an integrated video surveillance system over different geographical locations
- Enables centralized surveillance management of multiple areas/districts with local storage so that network bandwidth issues and security efforts can be optimized
Superior image quality
- A cost-effective video surveillance system that is easy to install, scalable, flexible and future-proof
- Incremental scalability that allows the system to grow with the customer's needs
- Easy integration with other applications such as GIS, traffic management system, emergency control - system etc.
At what rate is Axis growing in India in terms of revenue and new customers? Which segments are proving to be more lucrative and fruitful?
Axis is the global number 1 player in network video and network cameras. India, Axis managed to secure considerable market share with its strong portfolio of products and partner reach and has witnessed a growth rate of 50% YoY.
Axis' end users range from large multinational corporations to small-to-midsize enterprises that use Axis' products and systems solutions in their installations to optimize their business processes. We have some interesting deployments in the pipeline and shall inform as and when finalized. Some of them cannot be disclosed due to the confidentiality of the matter. Some of the key customers who have deployed Axis products in India are Delhi International airport, Vizag sea port and Kolkata city surveillance initiative amongst others.
Axis has a broad product range catering to the specific needs of different market segments. Axis focuses on all major sectors and has deployments in most of the critical industry verticals like Hospitality, Transportation, City surveillance, Critical infrastructure, Banking, Education & Retail. Axis is particularly strong in the transportation & retail segments and has successfully undertaken many large deployments across the world.
With increasing investments in Government sectors like airports, seaports, metros and other Greenfield projects, the infrastructure sector looks quite promising. In the wake of this strong growth potential, one of the main target markets for Axis would be Critical infrastructure, perimeter surveillance.
How does Axis plan to further develop the Indian market? What newer technology will be provided and what is their expected potential under the present scenario?
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Oh Tee Lee
Regional Director, South Asia Pacific
Region, Axis Communications)
Oh Tee heads the South Asia Pacific region, with focus on driving the strategic growth and operational performance across the region and developing strong partnerships since December 2005.
He has a good understanding of the region owing to his education from New Zealand where he obtained his degree in Computer Science, University of Waikato and started his career as a Network Engineer at the Ministry of Agriculture and Fisheries (MAF) in New Zealand. Prior to Axis, Oh Tee handled various positions in Hewlett Packard including Director for storage division for ASEAN region, General Manager for personal systems group in HP Philippines and Commercial Director for PT Compaq Indonesia. Settled in Singapore with his family,
Oh Tee is interested in outdoor sports like golf, cycling and squash. |
Over the last couple of years we have witnessed a huge shift in the market towards network video surveillance cameras. Including Axis, most of the top manufacturers have launched or are in the process of launching products on HDTV standards. Faster and enhanced computing inside the cameras is helping manufacturers deliver very high content, HDTV video at full frame rate and resolutions. Also, HDTV cameras enable the user with high visual improvement in storage and recording server specifications and the video management application system abilities to handle high resolution streams is helping drive this adoption.
Another trend identified in the market Thermal imagery camera which has found many users since Axis has launched models at affordable price points. Thermal imaging is a critical component to plug the gaps that normal visible surveillance solutions have in certain high risk environments. Thermal imaging is not hampered by environmental conditions like illumination levels, snow, haze, smoke and camouflage. This helps in reliable information at all times and may also prove to be a boon for analytics providers who face a challenge of performance degradation on visible video in certain conditions. Further, SaaS (Surveillance as a Service) model is a trend that many manufacturers are hopeful will help them get in the SMB or the residential market, which is still predominantly analog or dominated by low-end manufacturers. The challenges here are most on the business model or ROI related rather than technology oriented. Many TSP (Total Solution Providers) may currently have an advantage since they control the end-to-end costs of the solution, but user friendly do-it-yourself systems may prove to be a challenge to such BOX providers.
What percentage of your Indian clientele belongs to the SME segment? Are there specific categories of businesses which are utilizing these services more than others?
With regard to our Indian clientele about one-third of our business comes from SMEs; broadly categories such as schools, retail, SOHO etc.
SMEs are an integral part of our business strategy and Axis' has crucial customer base in this segment. IP video surveillance is relevant for all enterprises irrespective of the size of the organization and nature of the – business. It would be good investment especially for retail stores, schools and SOHO's.
Does it make business sense for SMEs to invest in these tools as a “want” rather than just a “need”? What kind of cost-effective options for surveillance are available for SMEs? Are the solutions scalable and expandable?
With regard to the SMEs it would be beneficial as SMEs would not be in favor of increasing man power due to budget constraints and prefer to get a one stop solution for their security needs as well as to get a pulse of the office while the boss is away. We do have some specific solutions for SMEs. AXIS M50 is designed mainly for the SME segment that is price sensitive. AXIS M10 is very popular among SMEs.
What kind of infrastructure is required for installing the surveillance tools?
Most of the solutions provided by Axis are easily installed. The on-site infrastructure required for installing the surveillance tools would be as follows:
- Surveillance cameras (no# depending on where they want to monitor)
- Video monitoring software (VMS)
- Good IT infrastructure (network availability, min 100 mbps for our cameras)
- Monitors for viewing
- Server for storage
What are the upcoming trends in the surveillance business? Do you have a concept of surveillance as service similar to software as a service model?
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Axis Global Facts
• Founded in 1984
• Headquartered in Lund, Sweden
• Offices in 20 countries with global partnerships through distributors, resellers and system integrators in over 70 countries
• Global #1 in network video and network cameras
• Launched the world's first network camera for connection to an IP network in 1996, making 2011 the 15th anniversary of the launch of IP-based surveillance cameras
• Launched the world's first video encoder in 1998
• Launched the world's first HDTV Network Camera in 2006
• Launched the world's first Thermal Network Camera in 2010
• Around 1 million professional network video products and more than 3 million networking product installations globally
• Net sales in 2010: SEK 2933 million (US$410 million)
• Listed on OMX Nordic Exchange, Stockholm Large Cap and Information, Technology exchanges
• Ray Mauritsson is President & Chief Executive Officer, Axis Communications
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Today, the technology trend is that of IP video surveillance, which is likely to continue to drive the future of the surveillance industry. With specialized video surveillance devices, intelligent video will continue to emerge as a tool for gathering business intelligence. In the coming years, we are also likely to experience demand for the concept of 'surveillance as a service' which is similar to the SaaS (software as a Service) model. People will be able to avail surveillance solutions from a company specializing in the same for their homes and businesses, just the way they make use of telephone, electricity and other utilities.
With the addition of video analytics software to the surveillance solutions, enterprises are adopting these solutions to get a new perspective in to their business. With growing number of industry verticals and changing business trends the adoption of surveillance cameras is increasing. For Eg: With banks spreading far and wide, the concept of self service banking has caught on. High number of ATM / remote kiosks deployments not only help the banks to spread their businesses but also expose them to possibilities of fraud, potential dangers of hacking, impersonation, phishing and a lot of other white collar crime impacting their NPA. It is also difficult to provide a safe user environment for their customers when you are thousands of miles away.
What is your distribution system in India? Who provides the post-sales service? Does it follow the standard Annual Maintenance Contract route or Axis has some other innovative post-sales service process?
Axis works on 2-tier model through the distribution channels to supply and support the customer base. However, Axis has in-house post-sales support as an extension support to our distributors/partners but the front-end interface is through the distributors.
Axis is a completely channel driven company and has over 850 certified channel partners in India currently. Axis has major plans to expand this number to 1000 in the coming year. We encourage them to be partners in profits and constantly do knowledge transfer and consider them as an integral part of our business. We wish to continue our partner enhancement programs and allow them to grow as we grow as a company.
Axis has the following partner programs currently in India:
- Channel Partner Program (CPP) for System Integrators - Our Channel Partner Program (CPP) provides a platform for our partners to be abreast of the latest technologies, product offerings and bring the advantages of the best in network video to a vast majority of users
- Application Development Partner (ADP) program – It helps software developers fully integrate Axis network video products in end user solutions, by providing application components, technical documentation and dedicated development support
- Architecture and Engineering program – It provides support tools for network architects, engineers and consultants who design specific IP based security systems
- The Technology Partner Program - aimed at companies that deliver the infrastructure components required in an IP-surveillance system, so this program will complete our eco-system to provide a total solution to the end user. Together, technology partners and Axis can identify and market values such as improved functionality and performance, sharing information and education. For the technology partner program, the partner selection is strictly by-invitation-only and based on Axis discretion.
What challenges have you faced in establishing this technology in India?
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Selected Indian Projects
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India is a very challenging market. Primary challenge was knowledge up-gradation of the entire security ecosystem. However, Indian consumers are very intelligent. They are price cautious, they wish to seek knowledge and understand the product and its features well before they buy it. This gives us an understanding of what customer needs and allows us to function accordingly.
We have invested dedicated time and efforts to tap this market. Today, we seek pride to say that India is currently at about 50% in terms of growth and we are targeting similar development in the coming quarters as well. Therefore, it is very important for us and therefore we are investing in India, in terms of awareness, technology transfer, training and educating the partners to achieve the estimated growth.
How is surveillance useful in increasing business efficiency apart from being used as a security measure?
As the market moves ahead on technology, we will see very little differentiation at the product level, since the USP will now shift to application level. From a user perspective, it will mean solutions will be delivered after translating product features in to user requirements. This will mean more and better adoption of open standards. 2011 will probably be the most defining year for ONVIF as this allows application developers to save a lot of development costs by integrating ONVIF products around their solutions.
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Selected International Customers
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This product advancement enables users across segments to benefit from the security solutions to analyze and understand the consumer behavior and trends especially in large format retail stores, malls and city surveillance. The surveillance solutions have applications for separate user requirements like number recognition which should have in city and traffic surveillance, number counting to analyze mall footfall and clusters in a particular section in large format retail stores.
We witness huge demand for such software applications in products and this trend is likely to be gaining momentum in future. We are working on more such products which are intelligent machines customized for each segment and its specific needs.
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