Ameritech was one of the seven baby bells created when the original AT&T was broken apart. It is now apart of the new AT&T via the SBC/Ameritech merger.
My first job was at Ameritech. Let me correct that, my first post college job was at Ameritech. Prior to graduating college, I was a bus-boy, a caddy, a painter, a swim pool worker, a bagel maker, a do-whatever guy at a tree nursery, a RA, a pizza delivery guy, and (for one month) a telemarketer.
My last Ameritech stint was in Corporate Development. One of the projects I worked on was Ameritech’s entry into Security Alarms. The notion was that the physical security company was like telecommunications and therefore Ameritech should do a roll-up in the space. It sounded flimsy to me, but Ameritech went onto acquire several companies and launch Ameritech Security Link. SBC/AT&T thought this was not such a good idea, and they sold it.
However, my views changed over the years. I think Ameritech was right all along. Physical Security and Communications are converging. Ameritech was just a decade and a half off in its timing.
Cisco is moving ascertively into physical secuirty. Read Rob Hagen’s post on the Managed Services Blog for insight into this. A growing number of telecom-orientated managed services providers are following Ciscos lead. Envysion, which provides a software as a service video surveillance solution–which is called Managed Video as a Service–is actively working with several of them.
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I agree with you that Consolidation opportunities exist within the security industry but I have yet to find an appropriate model to address the unique culture of the independent security industry. Discounted as they often are, independent dealers still have significant market share and a powerful strategic (yet unused) position. The “convergence opportunity” is in partnering or enacting their extinction. The later may prove more costly (in more ways than finance) than one could understand from an outsiders’ perspective.
In the early 90’s SLA’s (SecurityLink from Ameritech) approached the independent dealers (via National Guardian acquisition) from a telecom perspective. Not only was not only too early to the game, it missed the boat with respect to independent security dealer culture and how to leverage the contacts associations and consumer confidence that LOCAL security specialists bring to the table. GE has struggled in this area also while companies such as ADT focus on a different breed of “sales-dealers” often with little-to-no technical competence or invested interested in servicing the customer with the most appropriate technology. SAI and securityvillage.com were also ahead of the curve and ultimately failed due partly to lack of infrastructure and technology, however their early roots held promise with respect to integrating the unique culture of the independent security industry.
It will be interesting to see how manufactures such as Cisco enable the IT sector to meet new and exciting demands in the security space and whether or not an innovator of technology will find a way to harness the sleeping giant of the independent dealer base or if the giants’ value and potential will slip from it’s restful hands.
Drew, thanks for the comment. Do you read ManagedVideoblog.com? I think you’d find interesting.
I agree with you 100%. The security industry is well entrenched and needs to be part of any industry transition. Convergence means something completely different to them–and they will rightfully protect their turf. Success will come to those who work with these dealers, not against them. Nonetheless, convergence will not go away.
I was part of the team at Ameritech that approved the SecurityLink strategy. I disagreed with their conclusion to enter the business.