Throughout, domestic users and integrators have not recognized the value of software, believing that 'software is priceless'. With the integration and systematization of the security market, software vendors are playing an increasingly important role in the industry, which is a great news for software vendors. However, at the same time, we also see that some traditional security hardware vendors adopt a sales strategy of buying hardware and getting software for free, and use their market share, channels, and capital advantages to win the market, which is a significant blow to software vendors.

Article published in: A&S CHINA, Issue 181, February 2014

　　For a long time, domestic users and system integrators have not recognized the value of software, believing that "software is worthless." As the security market moves towards integration and systematization, the role of software vendors in the industry has become increasingly important. This is good news for software vendors. However, we also see that some traditional security hardware manufacturers adopt a sales strategy of giving away software with hardware purchases. Relying on their advantages in market share, channels, and capital, they win the market, which is a significant blow to software vendors. In this issue's topic discussion, we invite major software vendors to explore how software vendors should respond under the trend of the integration of hardware and software!

　　 策划/a&s安全自动化编辑   刘丽红

　　       The Survival Strategy of Independent Software Vendors (ISVs) in the Security Industry       

Gu Changhai, R & D Director of Beijing ZhongShengYiHua Technology Co., Ltd.

　　As the status and role of software become clearer, there will be more professional and independent software companies. The profit - making model of security systems will inevitably shift from simply relying on the supply and installation of hardware to a comprehensive model that meets users' needs with software systems and perfect service systems. It can be predicted that under the new business model, independent software will surely become the pioneer in leading industry applications.

　　At the beginning of the formation of the security industry, software was provided to end - users as an accessory to hardware devices. In the entire security industry chain, there were only chip suppliers, device designers and manufacturers, distributors, and system integrators, but no software developers. As the architecture of security systems became more complex and users' needs became more professional, especially with the emergence of new technologies such as video intelligence, cloud computing, and cloud storage, the functions of the randomly provided software became increasingly inadequate and far from meeting actual needs. At this time, ISVs in the security industry emerged. International companies like Milestone and Genetec, and domestic ones like Csvision (ZhongShengYiHua), are all outstanding in the industry.

    ISVs Have an Edge among the Three Software Forms   

　　Currently, there are mainly three forms of security - related monitoring software in China:

　　Software developed by hardware device manufacturers to support hardware sales.

Customized software developed by system integrators to meet users' special needs.

Independent software that is not attached to any hardware and focuses on system architecture and in - depth industry applications.

　　The profit - making models of the first two forms are obvious. In the first type, the value of software is reflected through hardware sales. Since the value of software cannot be intuitively presented, there is insufficient motivation for software development. For the second type of software, due to the differences in projects undertaken by integrators, the customized software varies greatly. As a result, this software cannot be sold independently as a stable software product and can only be attached to specific projects. Therefore, neither of these two types of software can realize its value independently.

　　Only independent software vendors can develop security monitoring software as a product. As a software product, it should have the attribute of replicable sales. Therefore, at the beginning of product design, a detailed analysis of the monitoring industry's needs and a strict demonstration of the product architecture are carried out to make the product have characteristics such as open adaptability. It is no exaggeration to say that independent software vendors have a thorough understanding of industry applications and customer needs and can professionally meet industry requirements.

Strengthening Self - Advantages to Achieve Win - Win Situations

　　In the current complex competitive environment, independent security software vendors (ISVs) must have the following characteristics to gain a foothold in the competition:

　　Strengthen self - advantages. Independent security software vendors have strong advantages in technical precipitation, industry experience accumulation, and product concepts. In subsequent competitions, these advantages must be strengthened. Especially in the face of a new wave of the Internet, the upgrade of wireless 4G, and the background of industries such as the Internet of Things, ISVs are bound to experience rapid growth.

　　Seize opportunities in industry applications. As an important visual perception method, video has been widely infiltrated into non - security fields. For example, in production safety management, enterprise on - site management, assembly - line management, office automation management, etc. Even many non - traditional security industries such as environmental protection, water conservancy, and land resources have shown a booming demand for video. Independent security software vendors must fully utilize their inherent advantages in video storage, forwarding, and management and closely combine with relevant industries to expand their industry applications.

　　Make full use of the win - win strategy. Many traditional hardware manufacturers such as Sony, Samsung, and Axis have launched ISV programs to better adapt to local market promotion. These companies conduct business and technical cooperation with independent software vendors (ISVs) and establish long - term technical partnerships for mutual benefit and common development. The ISV programs of these hardware manufacturers not only help provide digital monitoring solutions for users but also facilitate the promotion of their own hardware products. They also provide technical support for the cooperating ISVs, which is beneficial for ISVs to better explore the market and achieve a win - win - win situation.