KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Will manufacturers go into the central station business  / what's up with the ADT IPO flop
January 30, 2018
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Will manufacturers go into the central station business   
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Ken
    The article on January 22, 2018  assessing risk for central stations in the cloud was interesting.
    The way I see it, within ten years the manufactures...Honeywell...DSC...Napco....and alike, will be manufacturing alarm panels that will only report to their central station.  Yes I believe the manufactures will get into the monitoring business.  It's a likely jump since they have set up their own cell backup IP routes.
    Another day in the wonderful world of alarms.....
Mike
CSS
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Response
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    The manufacturers already have one foot in the central station door, don't they?  Their devices report to their panels, their hubs, that communicate directly to their receivers.  Then the signal goes to the central station.
    So do central stations need to be concerned that manufacturers will simply

    in either scenario the fate of the central stations does not look healthy.  But is such concern realistic?  Probably not.
    I know that the phenomena of the growth of the central stations has escaped some of you, but let me clue you in.  Central stations are big business.  The "center of the alarm industry".  Don't think so?  Have a look around at the ISC show coming up.  Check out the space the central stations occupy.  They won't be off in the corner.  Sure there will be manufacturers who command a prominent position, but these are manufactures that rely on more than just the alarm industry.  You won't see many vendors who make a bigger splash than the central stations.  Here's my point.  Central stations aren't what they were 20 or even 10 years ago.  If your central station is the same as it was 10 years ago, you need a new central station.  A modern one.  A central station that embraces the latest in technology.  
    I believe that smart business  people know their strengths and limitations.  Manufacturing equipment and using automated technology is not the same as operating a central station, employing hundreds of operators and manually fielding thousands of signals a day.  Others are good at it.  Live and let live.  
    Central stations don't do installation and repair service; they don't make consumer sales.  That business is best left to the dealers.  Central stations don't manufacture equipment or create software.  That business is best left to the manufacturers.  
    Though we will continue to see evolution in the alarm industry I think dealers, central stations and manufacturers will continue to play their role.
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what's up with the ADT IPO flop
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    ADT's initial public offering came out January 19, 2018 offered at 14.  Today [I am writing this on January 22, 2018] its 11.  Is it time to own a piece of this action?  I haven't bought it -- a sure sign it will tank.  So I won't buy it and maybe it will have a chance.  
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
516 747 6700
www.KirschenbaumEsq.com