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Kratos

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.

Q&A with Axis co-founder Martin Gren

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02/18/2014

Martha: I just returned from the Milestone conference where partners, including Axis, extolled the virtues of the VMS. Why does Axis really need to develop its own access control product?

What integrators large and small need to know about APTs

An IP camera at a convenience store could be a gateway to a larger target
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02/03/2014

DELRAY BEACH, Fla.—An outdoor IP camera may not be the easiest or most obvious entry point for a global cyber gang trying to hack into a corporation, but it could certainly could be—and systems integrators, security directors and manufacturers all have a role to play in ensuring that physical security systems are not vulnerable to hacks, according to experts who spoke at TechSec Solutions on Jan. 29.

TechSec panels showcase perspectives of young leaders

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Wednesday, January 22, 2014

Less than a week remains until TechSec Solutions kicks off in the comparatively balmy climes of Delray Beach, Fla. The location itself will be a welcome respite for those of us coping with the deep freeze to the north, but it’s the quality of the speakers and panelists that stand to be the biggest draw.  

I wanted to use this space to draw attention to a pair of Next Gen Security Series panels slated for the opening day, one of which I’ll be moderating. For the panel, titled “Security integrators’ perspective: The changing landscape of security integration,” I’ll be asking four members of SSN’s latest “20 under 40” class a range of questions focused on new and emerging technologies, all with an eye toward identifying what implications such developments have for the industry as a whole.

The panelists for my session will be Johnny Cunningham, director of information technology at ADS Security; Robert Gaulden, VP of sales & marketing at Kratos; Jesse Rivest, territory manager at Affiliated Monitoring; and Joe Parisi, senior account executive at Rapid Response Monitoring. Considering the range of professional responsibilities, the panel provides a pretty strong snapshot of the industry.

The other Next Gen panel will include “20 under 40” winners from SSN’s sister publication, Security Director News, and that session will be moderated by SDN editor Amy Canfield.

From Delray Beach I’ll be following up with more coverage on the Next Gen panels, while covering several other events in the TechSec program. I’m eager to meet some new folks down at the conference, and eager to hear what those at the vanguard think of the industry’s direction.

Integrators: Making money on big security data

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Wednesday, December 11, 2013

When I met with my TechSec advisory board this past summer to talk about TechSec 2014, one of the topics the group wanted to make sure we talked about was big data. We had an excellent primer on big data at TechSec 2013, thanks to Axis’ Steve Surfaro and EMC’s Patrick Snow. For this year’s conference (Jan. 28-29 in Delray Beach, Fla.), we wanted to take a different tack.

I"m really pleased with the idea we came up with. We've asked four leading integrators to discuss how they’re helping their customers mine and synthesize data from their video and access control systems.

Kratos CTO Chris Peckham is going to moderate the educational session that will feature these integrators: David Coleman of Avrio RMS; Nigel Waterton of Aronson Security Group; Robert Locke of Open Innovation (part of Tyco); and, Don Zoufal of SDI.

The discussion will center on how the data is extracted, what kind of business intelligence that data provides and in what format. Each integrator will focus on the data mining they're doing in a specific vertical market including city surveillance, airports and retail.

Sound good? You can register for TechSec here.

TechSec 2014 to feature security directors from salesforce.com, MIT, leading banks

New and emerging technology conference will also honor 40 young professionals
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10/15/2013

YARMOUTH, Maine—Organizers of TechSec Solutions 2014 announced the educational program for the conference, which will take place Jan. 28-29 at the Delray Beach Marriott in Delray Beach, Fla.

Meet the Class of 2013

More women, lots of interest in technology in this year's class
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06/12/2013

YARMOUTH, Maine—The editors of Security Systems News are pleased to present the “20 under 40” Class of 2013.

The "haves and have-nots of security integration companies"

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Wednesday, May 8, 2013

PSA TEC is in full swing. The action started on Sunday night, but I arrived late on Monday. Yesterday I spent the day (Tuesday) talking to PSA Security integrators and members and attending four different educational sessions.

I attended the State of the Industry panel, moderated by PSA Security CEO Bill Bozeman and featuring a large group of integrators and industry experts; a discussion on Big Data, Business Resiliency and Physical Security moderated by Chris Peckham of Kratos; a session on security finance moderated by Bozeman; and a session on how to adopt managed services, moderated by Sharon Shaw, of Integrators Support.

These folks covered a lot of ground. I’ll be writing more in-depth stories on some of the topics covered, but below are some highlights from the day.

Haves and have-nots

Bozeman started the first session of the day quoting Imperial Capital’s Jeff Kessler, who in a recent report wrote that increasingly the world of systems integration is dominated by the "haves" and the "have-nots." The "have" have an RMR base, are making a good margin on jobs, and are profitable. The have-nots have not moved into managed services and are surviving on installation revenue. Bozeman agreed with Kessler, recommended all read his report, and spent a great deal of time in this session and others talking about how all PSA Security integrators can join the "haves."

Know your verticals
Phil Aronson of Aronson Security Group, Ron Oetjen of Intelligent Access, and Eric Yunag of Dakota Security all said “deep focus” on your vertical markets is key. Yunag, whose Dakota Security is growing rapidly, said that his company made a strategic misstep 7 or 8 years ago when it decided to expand outside of the financial vertical. Banks are something that Dakota had grown to know very very well. The mistake the company made was not the fact that it expanded outside of that vertical, but it did so without the focus and understanding of other verticals.

The message from integrators on the panel was this: Focusing on different verticals is good, but get to know them. And don't delve into too many. How many verticals should an independent integrator focus on? Three, most agreed.

Mad about channel conflict? Look within
Another topic that came up was the problem of channel conflict and manufacturers going direct to end users. Jim Henry of Kratos, said it’s important for systems integrators to remember that manufacturers who go direct to end users fail. However, he noted, “it’s important that and end user sees you as a value, not a middleman making a margin.” Yunag added that if an end user is going direct in your coverage area “that’s your failure as a systems integrator.” You need to know what’s happening in your region, and if this kind of stuff happens take a look at your own organization.

Government Opportunity
Don Erickson, CEO of SIA, was banging the drum about the opportunity for integrators who want to do business with the federal government. Despite sequestration and budget problems, money is in the pipeline for K-12 projects, ports, transportation. “Consider the GSA Schedule program, it’s a very effective contract vehicle for doing business with the federal government.”

How to build an effective business?
During the State of the Industry, Ron Oetjen of Intelligent Access Systems broke it down this way: hire the right people and focus on your strategic plan.  Later, during a finance educational session that got pretty granular about how to make your business attractive to buyers, Kratos’ Jim Henry said that the businesses that he’s attracted to are the ones that are not for sale, the ones with a “clear vision and a mission.”

Boston bombing and video surveillance
In the aftermath of the Newtown gun massacre and the Boston Marathon bombing, Yunag said that now is a “significant watershed for our industry and the services we provide … in the next five to ten years, the way video surveillance is used will change,” he predicted.  The general public has seen, particularly with Boston, how video surveillance can be useful. Jim Henry said that the incident clearly demonstrated how video can be used for “actionable intelligence and business intelligence.” Further, he said, it's important to note that the ability to find the suspect was not because the camera in question was a certain quality or manufacturer,  but because it was a “well positioned camera installed by a professional.” This horrific event showed the world how video can be used, Yunag said, and it's incumbent on integrators now to have those conversations with law enforcement and others about how they can best take advantage of video and other physical security offerings to help prevent and detect situations like these.

There are many more highlights that I’ll report on later, now I need to get to the conference.

Better strategic alternatives for MMI hedgefunders?

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Wednesday, January 25, 2012

Remember MMI Investments? I haven’t written about this NYC-based hedge fund in a while, but it appears that its principals have found some new, more attractive strategic alternatives to this NYC-based hedge fund.

Rueters reported this past weekend that MMI Investment principals Jerome Lande and Clay Lifflander were divesting stock and moving on.  I called Jerome Lande today to confirm and find out where he and Lifflander are headed and what they think about investing in the security industry--but he has not returned my call.

Lande and Lifflander, who had this profile written about them by Forbes a few years back, teamed up with Thomas “surrender the booty” Hudson of Pirate Capital to get Brink’s to split into two companies. (Well maybe it wasn’t an official team-up, but all of these hedgefunders were working for the same thing—“enhancing shareholder value” by getting Brink’s to separate the cash handling business from the home security business.)

In this case, Lande and Lifflander were successful. Both Pirate and MMI were Brink’s stockholders—and eventually board members who successfully agitated for the “review of strategic alternatives” back in 2008, which led, eventually to Brink’s splitting into the cash-handling business and Brink’s Home Security. The rest is history: BHS then renamed itself Broadview Security  and seven months later was purchased by ADT

Pirate’s ship sunk pretty quickly after the Brink’s deal, though there was word last year that Hudson may be getting back into the hedge fund business.

According to this report and others, MMI had some other investments in the security industry: notably Checkpoint Systems and Kratos Defense and Security.   Those investments didn’t work out so well.

From Rueters: “The activist fund had a mixed track record in its investments last year -- which typically involved taking a minority stake in companies and urging them to consider a sale.
Last summer, MMI amassed a near 10 percent stake in Kratos Defense & Security Solutions (KTOS.O), spurring a strategic review by the company that did not result in any deal.
MMI also failed to convince the board of Checkpoint Systems Inc (CKP.N) to explore strategic alternatives.”

I haven’t had a chance to scour SEC documents, but Bloomberg in August 2011 did report this about Kratos doing a casual exploration of a sale.

 “Kratos Defense & Security Solutions, Inc. is seeking potential buyers with the help of a boutique investment bank, two industry sources told deal Reporter. It is not clear whether Kratos has officially hired a financial advisor. Kratos Chief Executive Officer Eric DeMarco said: "Our policy is not to comment or discuss strategy or strategic alternatives." MMI Investments, L.P., holding 8.6% stake, said that Kratos' competitive advantages and growth prospects are greatly undervalued by its share price. "This undervaluation is unlikely to improve on a sustainable basis while [Kratos] remains an independent public company. Therefore, the reporting persons may engage in discussions with members of management and the board of directors of the issuer regarding strategic alternatives to maximize value," said MMI.”

And here’s part of an August 2011 Bloomberg report on MMI’s attempt to get Checkpoint to review its strategic alternatives.
“MMI Investments, L.P., a shareholders of Checkpoint Systems, Inc. (CKP) has asked the Board of Directors of CKP to conduct a comprehensive review and decide strategic alternatives to maximize value for all shareholders, including a sale of CKP as it is significantly undervalued given its strong products, technology, market positions and customer relationships. MMI Investments has also asked CKP to hire a banker for the purpose and explore strategic alternatives.”

Security cos. among fastest growing tech businesses

Avigilon ranks No. 4
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11/09/2011

YARMOUTH, Maine—Several companies who are active in the physical security space were listed on the “Deloitte 2011 Technology Fast 500,” released in October.

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