Survey gives integrators insight into end user' budgets
End user security budgets were up in 2012 compared to 2011, at least in the gaming vertical, according to a not-yet-released survey of nearly 200 Security Director News readers, conducted by IMS Research this summer.
What about end user budgets in other vertical markets? Read on. Below are some more specifics on what IMS learned about end user budgets and what this information may mean for integrators, but there will be much more information presented by IMS’ Will Rhodes at TechSec 2013, a new and emerging technology conference, jointly sponsored by Security Director News and Security Systems News.
Back to the survey, Will and I had a conference call the other day about his TechSec presentation. Here is a small sample of the questions I had for him—and his answers:
ME: How did the results from casino and gaming security directors compare with other vertical markets?
WR: The majority of casino and gaming respondents (51 percent) suggested their budget would increase in 2012 over 2011. Whereas, the largest number of city surveillance respondents (60 percent) suggested their budgets would fall in 2012 over 2011. While, the largest number of government respondents (43 percent) suggested their budgets would remain the same in 2012 over 2011.
ME: The results reported are for 2012 vs. 2011. Do you have any insight into spending/budget changes for 2013?
WR: The survey was conducting over July and August so we didn’t ask questions about 2013. Early signs suggest the North American security market was relatively strong in 2012 which is likely a result of previously mothballed and delayed projects coming online. 2013 growth may remain healthy but not quite as strong as 2012.
ME: What do you make of the idea that casinos are increasing security budgets? Is it a matter of compliance? Putting off improvements since the economy tanked and then they got to the point where they really had to upgrade? Gaming is generally considered discretionary spending, is this a sign that the economy is on the uptake?
WR: This was a very interesting result from the survey. Regulation certainly pays a major part in the casinos and gaming market. For example, if a DVR is not recording to standard it will have to be replaced no matter how well the casino is doing. However, the economy has started to pick-up and consumer confidence is starting to build. Assuming there is no economic cliff dive in 2013, casino and gaming spending on security equipment could start returning to pre-recession levels.
ME: What might integrators glean from this specific info?
WR: Without wanting to appear too optimistic; after a few years of uncertainly, the outlook does look positive for those integrators who specialize in the casinos and gaming sector. One thing to bear in mind is the survey results suggested integrators that demonstrate a clear ROI on projects are most likely to win new business. Whilst the casinos and gaming sector is still in recovery mode, users may be looking for integrators show how their capital invested will be well spent. One way to do this is to demonstrate the ROI of a new solution.
ME: What other info should TechSec attendees look forward to learning at your TechSec presentation?
WR: During the presentation I will be showing attendees who the end users thought are the most influential project champions and which stakeholders have the most importance over the final decision to purchase.