Continuing our series of articles on Innovation we talked to Steve Russell, CEO of Prism Skylabs, about how they intend to disrupt the Security Market in 2013 and what he thinks will be the major innovations over the next 5 years.
Q. Where will the major innovations in the security industry come from in the next 5 years?
A. Over the next 5 years, there will be a number of significant innovations in the security industry, many of which will stem from technology growth in the consumer sector. I see 3 key drivers of innovation on the horizon:
and cloud technology.
The development of camera and mobile technology in the consumer sector has rapidly spilled over to the security video marketplace, which will lead to smaller, lower-cost sensors that business can deploy everywhere for both security- and non-security applications. And similar developments in the consumer space have allowed for cheap, local processing power that is capable of doing compression analytics, video enhancement, and more. Not only will we see smarter cameras and more of them, we are going see applications move to the cloud. Due to the unique challenges associated with bandwidth-heavy video, the industry has been slow to migrate to a cloud-based approach. That is quickly changing. The days of big, bulky, expensive storage archives are behind us.
These innovations will open the door to networks of higher-quality, centrally managed cameras with applications that go well beyond traditional security, and transform the industry from a perceived cost center to a revenue generator that supports a host of non-security functions, such as business analysis, marketing and merchandising.
Q. Why is the security industry so resistant to change? Is this creating opportunities for SME’s (Small & Medium Size Enterprises)?
A. It’s not so much resistance to change as it is significant legacy investment in infrastructure. In the past 10 years, businesses have spent billions of dollars on their infrastructure, and the people and technology in place to maintain networks have been slow to change. With the rapid adoption of IP technology in the past few years we’ve seen that begin to shift. Over the next five years that trend will expand, replacing an industry that is slow to change with one that will move as nimbly as enterprise.
Q. In our research we’ve seen a shift in security services; moving from just a cost centre for businesses to actually driving operational savings and delivering real ROI. How will this impact on the industry and how far can this trend go?
A. This trend holds potential that’s many orders of magnitude larger than the current sub-sectors of the security industry as we know it today. We’ll see three big impacts from this.
- One, is market growth.
- Two, is the emergence of more specialists, such as integrators and consultants who will focus on emerging opportunities.
- And three, the transformation of business models from reselling high-cost and capacity storage boxes to value-based and recurring pricing of beneficial services.
Q. How do Prism Skylabs intend to disrupt the Security market in 2013?
A. Prism Skylabs is an entirely new business model for security. We are disrupting the industry by making it easy for integrators to generate new and recurring revenue. Not only does Prism Skylabs provide what their customers have been asking for — mobile access, next-generation analytics, and infinite storage — it doesn’t require truck rolls or any upfront costs to deploy. It works with existing video cameras. It’s easy to maintain. And it expands sales beyond Loss Prevention and into larger organizations such as marketing, merchandising, and operations.
What integrator doesn’t want to get on the phone with a retail customer and ask them if they would like to know which of their products are being picked up the most? Or if they would like to view enhanced, real-time images of any location or in their business from their iPad?
Steve Russell is a Silicon Valley veteran with 15 years of experience in building and managing disruptive content networking, video search and video intelligence technology companies. Prior to Prism Skylabs, Steve served as the CEO and Chairman of 3VR, the world’s leading video intelligence company, which he founded in 2002. In less than 10 years, Steve took 3VR from a small group of engineers working in his basement to an industry leader serving global customers including Wells Fargo, T-Mobile, GAP, Hilton and many more of the world’s leading brands.
Before 3VR, Steve was VP and GM of the Content Networking group at Internet search giant Inktomi. In 2000, Inktomi Acquired eScene Networks, a consumer video management platform company he founded. Steve holds 11 patents and was named #8 in the American Venture’s “Top 40 under 40” list. He studied Economics and Computer Science at Stanford University.