Volume 18 | May 23, 2023
Welcome to Volume 18 of the Access Control Executive Brief! This one is titled, "Can Anyone, From Anywhere, with a Computer Create a Physical Access Control Software Company?"
The title alone should spark some debate, but after years of being in this industry and recently spending more time meeting and speaking with companies, something feels… well … different.
And please do not take my writing this as a vote that the world needs more physical access control systems or that I am over simplifying the level of depth that is needed to full scale a high security access control system. In fact, I have been well-documented in saying that the world does not need another access control system and I am well documented as saying that delivering a scalable high security access control product is hard. However, this transition our industry is going through right now, a digital transformation, does require some legacy players to change, some to go away, and new innovative solutions solving for the new use cases built on the legacy value we have delivered for 30 years to come to market.
This idea that all things are going to stay the same and that we should use the past as the predictor of the future, just does not work for me.
“This” is different. To what degree, not sure. As you will read, this is still an idea and developing discussion. I left it as an open question with some background on why I believe this is happening.
What are the impacts? That is a question to answer in future Briefs.
I look forward to hearing what you think.
As a reminder, please do not forget, two events coming up that I would love to see you attend and participate in.
First, the Access Control Summit 2023 is a one-day event being held on September 28th in Washington DC. I am bringing together the access control and smart lock industry's most influential executives and thought leaders at the premier event of the year. I have confirmed a growing list of speakers that includes Antony Slumbers (keynote speaker and coined “Space as a Service), Steve Van Till, Erica Grant, Mark Roberts, Kumar Sokka, Joni Lampinen, and many more. There are three reasons why you should attend: networking, exposure, and thought leadership. There will be no sponsors for this event, and it will be funded entirely by ticket sales. As members of the Access Control Executive Brief, you can get a 50% discount on the ticket cost by using the promo code ACSACEBMD at checkout.
Second, CREtech New York and the Access Control and Smart Lock Village by the Access Control Executive Brief. Based off the response we had in London, NY is lining up to be even bigger and better. We will have more show floor space and a stage to activate thought leadership and conversations. We have a limited amount of companies that can attend. If you sell into the commercial real estate or multifamily market, CREtech NY is a must attend show. Please let me know if you are
I hope you enjoy the Brief, and I am excited to get on Slack with you and discuss it!
Thank you,
PS: I am sure some of you may forward this on but please do so sparingly and encourage others to sign up here. Thank you!
Can Anyone with a Computer Anywhere in the World Create a Physical Access Control Software Company?
After spending a significant amount of time meeting physical access control systems from around the world, I've observed that the barrier to entry for software companies is lower than ever before. I have seen it with, to name a few, Parakey out of Sweden, Spintly in India, Geokey in the US, AMADEO Systems in Austria, and Goki in Australia. Check the growing list of companies in the Global Access Control and Smart Lock Topology Map. This observation typically sparks a debate similar to the one about what constitutes "good pizza." (For real, Google "Great Pizza Debate," and you will get stories like this one). The debate on what is and isn't a physical access control system centers around defining what is a physical access control system. Is it based on historical definitions or the current use cases? In my opinion, it is nuanced and a blend of both. While that is a fair (and fun) debate, the fact remains that the barrier of entry to creating an access control system is becoming low. Maybe even lower than ever before. In a later Brief, we will explore why this is the case, but first, let's discuss the thought and how we have gotten here.
In today's digital age, the barrier to entry for starting a software-centric business has significantly lowered. Advancements in software development, coupled with the power of the internet, have made it possible for individuals with basic computer skills to create innovative solutions. One such domain is our industry, physical access control systems (PACs). The democratization of technology has empowered aspiring entrepreneurs globally to enter the realm of physical access control software companies, bringing forth new opportunities and challenges.
The Evolution of Physical Access Control
To understand the emergence of accessible software solutions for physical access control systems, we must first appreciate the industry's evolution. Traditional access control has been a cottage industry in the shadow of much sexier industries, lacking the proper attention it deserves. On top of that, it is a very specialized industry. Because of this, we rarely saw external individuals or companies looking to disrupt the physical access control systems at scale. The disrupters, broadly, were known individuals with the vision and desire to iterate off what had existed before. As a result, we have been an industry of tweakers, moving slow and with caution. To be fair, we did see computing advancements by people such as Bud Toye and John Moss using systems like the TRS-80 or other computers sold at Radio Shack or Steve Van Till with Brivo, but they were more of an outlier, not the norm.
And what is happening today is very different.
Also, traditional access control systems heavily relied on proprietary hardware and specialized knowledge. Said in another way, our industry has been all about the hardware, not the software. New companies that wanted to get into the industry and implement such systems faced high costs, complexity, and limited flexibility. It is nearly impossible for lock companies to scale internationally given the different opening types needed country to country. These barriers limited the innovation and discouraged innovators that you would expect from such an essential utility in our daily lives.
Lastly, the channel has always been a necessary evil for new physical access control system manufacturers. On one hand, they have been the selection process of winners and losers. If the channel adopted your system at scale, so too did end users. If the channel did not fall in love with your product, good luck. You were DOA. On the other hand, you only went as far and as fast as the channel would take you.
However, the landscape began to shift with the advent of cloud computing, wireless technology, and Internet of Things (IoT) devices. As a result, software-based solutions have been gaining prominence, allowing for more affordable, scalable, and customizable access control options. Plus the old truths of how products flow to market has changed. The convergence of software and hardware and visibility by the mainstream market provides a fertile ground for aspiring entrepreneurs to tap into this market.
The Power of Software Development
The availability of powerful software development tools and resources has played a pivotal role in enabling individuals to create physical access control software companies. Aspiring entrepreneurs can access modern open-source platforms, libraries, and programming languages with just a computer and an internet connection. These resources empower them to develop software that they can deploy across a wide range of devices. Sure, most access control panels or readers are proprietary. Still, with partner programs opening up, middleware companies becoming more prevalent than ever, and alternative options, the barrier to entry to work with existing hardware options has become only time and material.
Additionally, online learning platforms and communities offer tutorials, courses, and knowledge-sharing forums. This accessibility to information allows individuals to acquire the necessary skills and knowledge required to build a physical access control software solution.
The democratization of access and knowledge in software development has eliminated traditional barriers and unlocked opportunities for ambitious entrepreneurs.
Addressing Market Needs and Challenges
While the ability to create a physical access control software company has become more accessible, it is essential to acknowledge the challenges that arise. Understanding market needs, ensuring security and reliability, having go-to-market strategies that scale, and building a competitive advantage are crucial aspects to consider.
To succeed in this competitive landscape, aspiring entrepreneurs must conduct thorough market research to identify specific pain points and gaps in existing solutions. They also need to look deeper into specific verticals and countries. By addressing these needs, they can differentiate themselves from competitors and provide value to potential customers that are looking for more innovation and are tired of being told no by legacy providers.
It is important to remember and to state, this is a life-safety product. It always has been and always will be. Even with the push for more convenience and additional value creation, security and reliability are paramount in access control systems. As an example, developing robust software that can withstand potential threats and vulnerabilities is essential to gain trust and establish credibility. Trust and credibility are one of the superpowers legacy access control systems have, and that has been built over the many years of being in business and serving the market. New entrants cannot buy trust and credibility and they cannot afford a hiccup in security and reliability.
Building a competitive advantage requires innovation and differentiation.
Being new has advantages when starting fresh with the latest and greatest advanced technology. Developing unique features, integrating with other systems, and offering seamless user experiences is setting new physical access control software company’s apart from the legacy competition. Additionally, providing excellent customer support and continuously adapting to industry trends is vital for sustained growth.
The democratization of technology has empowered individuals with desire and computer skills to create physical access control software companies. The availability of software development tools, online learning resources, and a market hungry for innovative solutions has opened doors to aspiring entrepreneurs. While challenges exist, addressing market needs, prioritizing safety and security, and focusing on differentiation can help create a successful venture in this domain. As technology advances, access control requirements evolve, and vertical-specific solution demands increase, the opportunity for anyone with a computer to shape the future of physical access control remains real.
Expect to see much more of it globally. But, to what impact? To what degree? Will it matter?
Let’s discuss. I plan to spend more time on it.
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