Milestone recently held another integration platform (MIPS) conference at the end of February and by most accounts it was a successful event. Over 460 attendees and 50 exhibitors heard the latest and greatest information about integrating other security components within the Milestone ecosystem. Milestone being an open platform company and all.
And that was also something heard on the conference floor. With the purchase of Milestone by Canon —a company of many things, IP-cameras being one of them; and oh, yeah, Canon just made an offer for Axis Communications, another IP-camera manufacturer— how could Milestone possibly remain an open platform company?
Over that two-day MIPS Las Vegas event, Milestone executives repeated their ?open platform? mantra and showcased how this was still the case post-Canon acquisition.
Perhaps this nagging negativity about Milestone being able to continue to work with so many other industry partners is primarily an American perspective?
As truly global companies, Canon and Milestone work with partners around the world and yet it seems —in the U.S. at least— this long-term ?open platform? business strategy for Milestone has its loudest commentary.
SecurityHive.com reached out to Karl Erik Traberg, Head of Corporate Communications for Milestone Systems, to get his feedback on these sales channel comments.
Q: Perception can sometimes be louder than the truth. Milestone has stated their commitment to remaining an “Open Platform” company. Yet, with last year?s acquisition by Canon, some within the reseller community have their doubts. What can Milestone point to that will allay the concerns of current and future partners that Milestone will remain an “Open Platform” VMS and is committed to “not pulling the rug out from under” their partners?
A: [Karl Erik Traberg] Since the acquisition, Milestone Systems has stated and continued to demonstrate our successful business model based on our open platform approach.
1) Support for an additional 1,000 devices from 150 manufacturers was delivered in the past year, also since the acquisition, with a big team for the dedicated driver support that ensures comprehensive functionality of our VMS with the different cameras/encoders. This proves our continued open platform freedom of choice for partners, which is at the core of Milestone?s value proposition.
2) Likewise, the number of Milestone Solution Partners continues to grow, offering our resellers ongoing innovation through integrations with multiple analytics, access control, storage and other third-party security and business solutions. In our most recent partner survey, 58% of our partners responded that they are likely to do more business with Milestone now that we are part of the Canon Group. We are adding more resources to our organization than would have been possible if we had not been part of the Canon Group, and this is to the benefit of supporting all our partners and customers.
3) At our annual MIPS partner event last week, CEO Lars Thinggaard explained the ?Chinese Wall? in our business procedures that has been set in place and confirmed with Canon, which ensures total confidentiality for the integrity of each Milestone partner relationship. We are thus able to continue working with all manufacturers and solution partners to offer our open platform for the widest freedom of choice for customers. (See photo of MIPS slide showing our website?s official statement on the Milestone Code of Business Conduct.)
Q: Everyone knows you are now owned by Canon. Why would it be so hard not to believe that one day Canon management will dictate a position that Milestone VMS will “now” only support Canon and Axis IP-Cameras (if the offer by Canon to acquire Axis goes through) and shut out all other technology partners?
A: Canon of course wants Milestone Systems to continue to be successful and grow. The unlimited opportunities that the Milestone open platform ecosystem engenders is the key to our success —a force multiplier, if you will— and therefore not something that would benefit from being changed. Thus, the ‘stand-alone’ format of the acquisition terms. Milestone has always worked with Axis in parallel with other camera manufacturers, so we?ve shown that the open platform model of choice succeeds.
Q: Can you explain the marketing and financial reasons why remaining an Open Platform VMS makes more sense than becoming a one-vendor solution?
A: The physical security industry remains highly fragmented, it makes little sense to shift from open to closed with a much more narrow range of opportunities. There are few standards in our industry which further supports open platform and easy interoperability as an opportunity to create more value. Also, IoT is becoming the reality and video is becoming ubiquitous, so open platform video solutions give the opportunity to play a key role in all of that. It is our stated company vision to drive the convergence of video surveillance and other business systems; we are making that vision a reality based on our open platform strategy, and Canon supports this vision and strategy.
Q: Everyone loves a conspiracy. What will Milestone need to do —after all that it has already been done— to continue to convince the channel that it will remain an “Open Platform” VMS company?
A: Continue to deliver as we always have, of course! And that?s what we have done since the acquisition and are on track to do this year and beyond, which we presented at the recent MIPS 2015 annual partner event in Las Vegas. It attracted the highest number of attendees ever —465— and also the most technology partner exhibitors – 50 companies. We are very pleased to be the instigator of such a vast network of ecosystem partners, fostering innovations and delivering benefits for the industry and customers alike.
Q: Milestone says they will remain an Open Platform company. But it’s Canon’s decision too. What have they said and done that can highlight Canon’s long-term commitment to keeping Milestone an Open Platform strategy?
A: Canon supports the open platform model and strategy, which is the reason why it was a key part of the acquisition agreement that Milestone would be a stand-alone company in the Canon Group. Companies such as NT-ware, I.R.I.S. and ONYX Graphics are successful high-tech firms operating as independent, stand-alone companies in the Canon Group, which demonstrates their experience with this business approach.
Perhaps it is hard for some people to understand that there can be other business cultures for success besides management and shareholders who only push for short-sighted return on investment. Canon?s Japanese roots and philosophies bring with it a very long-term perspective. Our open platform technology and business model have been very successful and provide a more sustainable opportunity for stronger innovation and value creation in the video surveillance industry.