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Dean Drako

Drako-Brivo deal and ‘the new security dealer’

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Wednesday, June 10, 2015

There’s been a lot of talk about cloud services and managed services proliferating in the security industry, but “to a large degree it has been a head fake,” according to John Mack, EVP and co-head of investment banking at Imperial Capital.

Many of the so-called cloud products are not true cloud-based systems, and managed services is in it infancy as well, Mack said.
 
He believes that the news that Dean Drako, owner of cloud-based VMS provider Eagle Eye and founder of Barracuda Networks, has purchased Brivo, the original cloud-based access control system, may help propel the emergence of a new kind of security dealer.

“These guys will be the leader,” he said.

“My guess is that we will see the evolution of a new class of dealer focused on the managed services and cloud-based model” who will do high volumes of business with small- and medium-sized businesses, Mack told me.

The combination of Brivo and Eagle Eye products (the companies will offer an integrated version of their products beginning in July) would provide a “complete solution” for dealers to sell as a managed services offering to the SMB market and multi-site location businesses, Mack said.

This new managed services security dealer would have to be more like an alarm dealer who focuses on RMR as opposed to an integrator who focuses on install revenue. They would also have to be “sales oriented guys not tech-oriented guys,” Mack said.

But, they’ll have to have the technical sophistication to deal with SMB owners, he said.

This model involves high-volume work, which requires capital to subsidize the installation, larger dealers would likely have to secure a lines of credit from banks.
 
But the RMR would be much higher than the alarm model. It could be as much as a couple hundred dollars versus $40 for an alarm monitoring contract, Mack said. Importantly, the attrition rate for Brivo customers “is meaningfully lower than the 12 percent you hear about [in the residential market],” Mack said.

“It will be a great business model that can create a ton of value for dealers,” Mack said. With a lot of managed services RMR, that dealer would be an attractive acquisition target for ADT, Stanley, Protection 1, and Diebold that want to increase their presence in the SMB and multi-location business market.

Who knows, Mack surmised, the future may find a Monitronics-type business that runs a dealer program and buy accounts from security dealers who sell Eagle-Eye/Brivo-type products. “That would take bank capital- raising out of the equation.”

“A lot of positive things for dealers could spin out of this business model,” Mack said.

Imperial Capital advised Brivo in the deal.

 
 

Drako pays $50m cash for Brivo

Barracuda Networks and Eagle Eye Networks founder buys cloud-based access control company, said move to cloud-based systems is accelerating
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06/10/2015

AUSTIN, Texas–Dean Drako, founder of Barracuda Networks and Eagle Eye Networks, today announced his purchase of Brivo Systems for $50 million cash.

Diebold and Eagle Eye: API advocates ally

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Wednesday, February 11, 2015

Systems integrator Diebold has been talking about the importance of APIs for years and cloud-based VMS provider Eagle Eye, which opened its doors one year ago  has also been a vocal proponent of APIs.

This week, Diebold and Eagle Eye announced a national strategic alliance to deliver cloud-based video services.

The deal will allow Diebold customers to “stream and store live and recorded video, provide flexible cloud storage, and generate notification and real-time analytics.”

The alliance combines Diebold’s SaaS solution (called SecureStat—here’s a story about SecureStat) and Eagle Eye’s VMS  and API interface

The service is “easy to use, scalable, secure and reliable,” Diebold says and it’s particularly suitable for multi-location customers who may want to use “local and cloud-based applications that … [integrate] IP-enabled or legacy analog cameras.”

In a statement, Eagle Eye CEO Dean Drako lauded Diebold as the “first security integrator and alarm services company to leverage the power of an open API strategy and service offering.”

He added that this API strategy "has revolutionized other industries and will do the same for the security industry.”
   
Diebold EVP Tony Byerly in a statement called this strategy “the future of security as we continue to leverage APIs to create a connected security program for businesses, starting with easy-to-use cloud-based video services.”
 
Diebold will integrate Eagle Eye's cloud VMS  at its monitoring centers and customers will be able to see showcase demo applications at its Center of Excellence in Elmsford, N.Y.

At last week's TechSec conference, Diebold's Jeremy Brecher moderated an educational session about cloud-based security systems. Drako was one of the speakers on that panel discussion. Look for a report on that session in the next week.
 

Goldman Sachs names Eagle Eye Networks founder one of '100 Most Intriguing Entrepreneurs of 2014'

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10/20/2014

AUSTIN, Texas—Goldman Sachs recognized Eagle Eye Networks founder and CEO Dean Drako as one of its “100 Most Intriguing Entrepreneurs of 2014” at its Builders and Innovators Summit in Santa Barbara, Calif.

Eagle Eye Networks announces new data center in Austin, Texas, for cloud video recording

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10/14/2014

AUSTIN, Texas—Eagle Eye Networks in September announced the addition of a new data center, located here. This is Eagle Eye’s second data center in the United States; the first is located in Santa Clara, Calif. Eagle Eye Networks has plans to add data centers worldwide to meet expanding demand for the Eagle Eye Cloud Security Camera VMS.

Michael Dell makes ‘multi-million dollar’ investment in VMS provider Eagle Eye Networks

Enrique Salem of Symantec and Austin Ventures also participated in Series B funding
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07/31/2014

AUSTIN, Texas—In his first personal investment in physical security, Michael Dell, founder and CEO of Dell Inc., today announced a “multi-million dollar” investment in VMS provider Eagle Eye Networks.

Report: 68 percent want to use security cameras for operational improvement

Top ways companies want to use video are to increase sales, employee productivity, liability protection
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06/25/2014

AUSTIN, Texas—More than two-thirds of companies plan to use video surveillance security systems for operations improvement as well as security in the future, according to a new report released June 25.

Eagle Eye debuts 'modern, open' API

Drako: ‘You don’t have to use Windows to program’; he hopes lots of non-security applications are developed
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05/28/2014

AUSTIN, Texas—Cloud-based VMS provider Eagle Eye Networks on May 27 announced the launch of its Eagle Eye Video API, which CEO Dean Drako hopes will be used to “develop lots of applications that are not security-based.”

Cyber security a recurring theme at PSA-TEC

Drako: ‘Where was your DVR made? Is it connected to the Internet?’
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05/07/2014

WESTMINSTER, Colo.—The data breach that brought down Target CEO Gregg Steinhafel is being used as a cautionary tale here at PSA-TEC.

Eagle Eye releases cloud-controlled VMS

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01/21/2014

AUSTIN, Texas—New provider Eagle Eye Networks opened for business Jan. 21 and released its on-demand, secure, cloud-managed Eagle Eye Security Camera VMS, the same day, according to a news release.