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We must first examine how we got here to discuss what is coming. Historically, we had "One Truth," which was "keep bad people out." Nowadays, the access control industry comprises two truths in motion simultaneously. As you know, I call these "Old Truths" and "New Truths." As a refresher or for those of you who are new to my writing: The Old Truths: Today and Yesterday access control from 1973, a cottage industry focused on high security, whose only job is to keep bad people out. This Old Truth started at airports, government facilities, labs, and schools and has been "horizontally" brought to market regardless of fit. This Old Truth is a $10B cottage industry (excluding China). The New Truths: Today and Tomorrow access control centered on safety and security and does a great job of keeping bad people out but also focuses on conveniences and value beyond locking and unlocking. This New Truth is the mainstream market and is about Enterprise Software. This New Truth is a $70B market (excluding China. Side note: there is a $100B ESG+R opportunity. Another story for another time). Some companies in our industry have been about the New Truth for some time. But, unfortunately, the market at scale was just not ready for it. It is now. Our industry is/was stuck in high-security, channel-only mindsets, and end users have yet to be fully aware of what else access control could do for them. But the good news is, there is a sea change happening right now, and those who approach the market with fresh eyes have all the opportunity to lead the change. In many ways, that is what the video reader represents. As you look at what products and services you should bring to market, you should focus on the less defined market. The mainstream market. The larger market exists in Enterprise, Multifamily, and Commercial Real Estate. This market concentrates on conveniences, leveraging the value beyond locking and unlocking. You need to take the approach and ask yourself, "What hardware do we need to create that supports our software strategy?" Unfortunately, most companies build the other way. And most blogs that cover our industry give you a false sense of where the market is and where it is going. They ask, "what software do we need to build to support our hardware?" And that is why most players in our industry will continue to be lifestyle businesses and will continue to be unspectacular at best. They focus on the cottage. In summary, you need to ask, "what hardware do you need to build to support your Enterprise Software offering?" And if you ask that question, then the answer is clear. You 100% need to build a video reader. Below are my quick thoughts on how, why, and for what reason: The video reader is a case of when not if. Every company at some point in the access control industry will have a video reader. Companies such as Openpath and Brivo already have one. "Nontraditional" access control companies already do: Axis, ButterflyMX, Liftmaster, Ring, etc., all do as well. Brivo and Openpath didn't do it sooner because, in my opinion, they have taken the traditional channel route and mirrored what legacy players have (today and yesterday). If you were to ask them if they wish they would have done this sooner, I believe they both would say, "yes." When I was at Brivo, we often sold "every door needs a reader and a camera." Classic peanut butter and jelly value proposition story. They make each other better, and frankly, customers want it. In many ways, they expect it. The markets where a video reader is prime for adoption are Enterprise, Commercial Real Estate, Life Sciences, and Education (K-12) markets. All are growing markets poised for Enterprise Software solutions and fit nicely into this product's value proposition. A market trend leading to why now is a good time for a video reader is consumerization. As the access control industry goes mainstream, the traditional products/services will be coming from the high-end top of the market triangle (again, airports, etc.) but will also see pressure from the bottom of the triangle, from the consumer market. They will meet in the middle, and the expectation will be that systems function like they do at home. Expectations that devices do more. What was once a feature is now a bug: The siloed nature of our industry under the pretense that it delivers more security is no longer a reality. Our products need to do more. The days, especially as you go down the market, of having separate systems (eg. Access control and video) are done. It happened in the audio/video industry. It is happening here. The product must be priced accordingly. The economics need to make sense. You need to leverage the capabilities and functionality of having a camera included versus being just a hardware reseller like the rest of your competitors. Again, think of more enterprise software with this. When you look outside North America and most of Europe, you start to see this as a standard offering. For instance, cameras are a standard for Enterprise and consumer offerings in Japan beyond traditional players. QR code intercom is now a thing (here from Unloc and here from EvTrack). Low barrier of entry. Great practical use. Rife with security concerns but expect to see it everywhere. It may be an alternative option to go along with your video reader. And in reality, why would you not? Outside of raising the price of a reader and some privacy concerns, it's a natural progression and should have been done long ago. The only reason it wasn't is because of traditional mindsets and the dealer channel.
Keep in mind: Privacy concerns. This is real and needs to be met with good practices, marketing, and a better comms plan. Use case/Value Proposition in Enterprise, Commercial Real Estate, Multifamily, Life Sciences, and Education market: Visitor verification Deliver comfort Not just for recording but for action and intent Facial authentication Efficient workflows Maintaining a visual record of all occupants across sites. Eliminate physical credentials Two-way audio and video for non-credentialed users Tailgating Detection Good point solution Reduction of SKUs and complexity when ordering, servicing, and costs Ideal for existing customers in verticals such as commercial buildings and schools Intercom: initiate calls, communicate with assigned users Track occupancy Enforce capacity limits
Examples of Companies and Video Readers on the Market:
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