June 08, 2023

Security development is so good, but where is profit?

Security development is so good, but where is profit?

In past few years, security has developed at a rapid pace, and introduction of artificial intelligence and big data has given it a new impetus. The outside world as a whole is optimistic about security prospects. But at same time, security experts are not optimistic. Cutting security profits has become a major consensus in industry, so where is security profit?

Security development is so good, but where is profit?

1. The development of industry is not standardized enough, there are no strict standards for design, construction, operation and maintenance

The country has technical standards and safety specifications, but in process of specific weak ongoing safety projects, there are no mandatory oversight measures, and people rarely strictly follow rules. Thus, in terms of project design and product technology, it can be said that there is a huge difference and variety. Although there are regulatory bodies and various associations, in end it is still impossible to achieve actual standardization

2. Chaotic competition among integrators

The security industry is an industry with low barriers to entry. Of course, this is high-tech, but basic knowledge of weak current is not difficult. The bonus security period makes people jealous and a lot of people have a piece of pie. As a result, market became chaotic in competition, and prices were compared and lowered for sake of orders, forming a vicious circle. For same project, some offer 200,000 yuan, others 100,000 yuan. The non-specialist looks at same object, but attention to it must be a thousand miles away.

3. Relatively lack of professionals

In fact, many weak electricians choose this job because they think it's easy to mess around with and there aren't many security elites. Although threshold of safety is low, experience is still required to achieve success. Some SMBs lack technology and operational capabilities and are unwilling to subcontract and distribute profits to do it themselves. As a result, there was a lot of investment, but quality of finished product did not meet standards. In addition to improvements and operation and maintenance, I was even more worried.

4. Project Investment Compression

Whether it is a developer, commercial land or government, everyone has a professional staff to manage intellectual part. That is, technology and budget are very mature, so cost check is relatively accurate, and at same time, bidding competition is added. The owner's own investment has become smaller, and it is difficult to get a high profit. Not enough attention is paid to this area, and subsequent repairs will increase cost, and investments in initial construction are not enough.

5. Competition among product manufacturers

All kinds of low-current smart products are already quite mature, there is no big gap in technology, and estimates are getting closer. So we are approaching era of price wars. This also resulted in no profit being made at all.

Security development is so good, but where is profit?

In addition to above five points of view, labor costs, crowding out large manufacturers, etc. are also factors that affect profits. The author believes that maturity of industry is a process of constant optimization of profit structure, and only after constant improvement of their own forces, security companies can become hesitant in wave of development. No industry has an eternal bonus period, but profits of security industry will become more and more reasonable as security develops.