- 24
- AUG
- 2010
Integrated security market yields more procurement savings
Author: Jonathan Webb - Categories: Indirect Spend
The security market is emerging from facilities management to become a sophisticated and complex category in its own right. A recent PIU Operational report shows that the increasing use of technology in security solutions is leading providers into a more integrated market. For instance, Intel's acquisition of McAfee today indicates the need for suppliers to offer a collective package for a range of different products.
The report finds that the security market is becoming increasingly integrated, with buyers procuring the services of a single entity offering security across physical sites, IT and mechanical systems. This process is producing a convergence amongst suppliers, which is intensifying competition in an increasingly smaller nexus of products.
By leveraging the greater crossover in previously distinct areas, buyers can lower their total security costs whilst still enhancing the robustness of their security coverage. For instance, the use of technology has came into the domain of physical security. Surveillance cameras can now be controlled and transmit images via the internet. Fast data streams enable the immediate streaming of images, and an increased monitoring and analysis capacity.
The issue of security is essentially a matter of risk management. Yet, unfortunately, even experienced managers are prone to skew their assessment of genuine risks. For instance, according to a 2008 Chartered Management Institute survey, 28% of businesses prepared for disruptions due to terrorism. Only 3% actually experienced such disruptions. Meanwhile 39% of firms have continuity plans in the event of IT loss, yet 43% of companies suffered these disruptions, with 73% of these disturbances having a significant impact on cost and revenue.
The report, which conducts supply analysis of all major security providers, shows the increasing uptake of managed security services. These are outsourcing relationships whereby content and server security are provided by a third vendor and are commonly deployed in relation to IT services. However, by integrating cameras, anti-virus software, data protection and other security packages, costs can be centralised and lowered. Furthermore, insurance costs can be contained as the risk of a breach lessens. The means by which external tools can be integrated with internal IT systems are complex, yet the potential savings that this generates are substantial.
