Volume 62 | July 11, 2024
Welcome to Brief 62, originally titled "When will the alternative access control market become mainstream?" However, it was interrupted by the Wavelynx news that broke yesterday (Wednesday, July 10th). Interestingly, it is somewhat related, so I'll use this to strengthen Brief 63. ๐
So, Brief 62 is titled Wavelynx Unveils Their "Accelerate" Program: Vowing to "Transform Electronic Access Control and What I Think About It." Not many news items cause a stir, but this one did, judging by the number of DMs and text messages I received shortly after 11 am EST. I even did a poll on LinkedIn to gauge reactions, and as of 7:49 am EST, with 56 votes, we're at 59/41 on whether the Wavelynx Accelerate Program announced today will succeed or fail.
Here's what we know from the announcement, past information, additional context from a call I had, and my thoughts on all of this.
As always, your feedback is invaluable to us. Please let me know if there's any area where we can better meet your expectations.
Thank you!
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Wavelynx Unveils Their "Accelerate" Program: Vowing to "Transform Electronic Access Control"
Before I Get Into My Take: The TD/LR Background and Answers to Some Questions I Have Received
What is the Accelerate by Wavelynx program?
Wavelynx's 'accelerate' program is a business model that facilitates the transition to modern access control solutions. Under a three-year agreement, for every 20 credentials per reader purchased, an end user receives a free reader. This unique approach reduces the initial cost and encourages the adoption of advanced solutions.
Why was it created?
The goal stated by Wavelynx is to move everyone to more secure systems and remove adoption barriers commonly encountered by partners and customers.
Who is it for?
Wavelynx states this program benefits everyone, including OEMs/PACS, who gain recurring revenue. Integrators can join the model with Wallet, offering clients modern solutions at a lower initial cost. End users can adopt these solutions more efficiently with a CAPEX vs. OPEX model.
Who do end users buy this from?
From PACS, PIAMs, or Integrators participating in the program.
What is Wavelynx's goal with Accelerate?
Their aim is to 'remove barriers to adopting modern, secure security solutions' by providing a unique business model that encourages the transition to advanced access control solutions.
What happens if a reader breaks?
The standard program's process applies, including a lifetime warranty.
There was more. Here is the webinar, and I have summarized some of it at the end below.
My Initial Take: Different is good.
I like different.
I'm open to different.
We need more different.
We will desire binary conversations about different things but must resist that urge. This difference is "and," not, "or." This supports the $100BN market opportunity. Many questions will only be answered by one thing... time.
Also, it's fair to note that sometimes the intangibles are the tangibles, and we should start to appreciate them in the modern era of electronic access control.
This effort is a new way of doing business for our industry. Sure, other industries have done it (see the cell phone industry), and I've received many messages calling this a "financing program," a "leasing program," or a "Hardware as a Service program." Maybe so, but I think seeing this as a new way the industry can sell solutions is better.
Even if the channel doesn't like it or see the value in it (there will be plenty that do), I do think there will be plenty of end users who will (and plenty that won't). Will it be easy? No, it never will be, but there are a lot of signals why now, unlike before, is a good time for an initiative like this. However, it's important to consider the potential challenges, such as resistance to change, as well as the benefits, like increased adoption of modern solutions.
We should put all the reasons why not aside and view this as positive because it brings a lot of good stuff with it (and I plan to address that in Brief 62, where I delve into the value of LTV vs. project-based business and why that is when the alternative becomes the norm).
As Wavelynx explained, Accelerate aims to meet "the future of electronic access control." In my opinion, what that means is that it is an excellent example of an idea that answers questions like "What could the business look like in the modern era of electronic access control, the next 30 years, versus the traditional era, the past 30 years?" This program looks past the $10 billion mindset of traditional access control challenges and pushes toward a $100 billion vision. I'm here for it and expect others will be too. My initial thought (hope?) was that this would break the dam and show a good example of how hardware can support software versus the historical way we do things where software had only to support hardware. I see a bright future for this and other programs like it.
Again, this does not mean one way of doing business is better. It means they are both valid. It also does not mean it will binaurally succeed or fail. It has the opportunity to do both, depending on your measuring stick. This goes beyond what Rob and the team promote via their webinar and marketing message. It goes beyond whether this "pencils out" correctly in the finance department or solves a math problem, and that's because of the intangibles of what it allows, means, and can create. Don't get me wrong; the financial side of this matters a lot, and so do the other intangibles. For instance, this approach opens up a world of possibilities and value for the industry.
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How we can think differently
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How we can experiment
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How we can value different models
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How can we invest in what we believe long-term value is
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How sometimes, it comes down to timing and the market changing to allow past ideas that didn't work the opportunity to work now
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How we can drive a different conversation and own the zeitgeist of an industry. The 'Accelerate' program has the potential to shift our industry's dialogue, sparking new ideas and approaches that could redefine the future of electronic access control.
In an industry that often adheres to the status quo, more innovation is not just desired, it's necessary. As I've highlighted in my book, The 6 Phases Shaping Access Control, innovation isn't just about technical advancements. It's about how we experiment, do business, communicate, hire, pay, and more. The Accelerate program is a prime example of the kind of innovation that can drive our industry forward, inspiring us to think differently and embrace change.
Even if this new approach fails (which I don't think it will), I'm more interested in its impact. I can't measure its success yet, but I am biased toward different approaches, so I believe it will succeed. In some ways, it already has.
Ultimately, it will come down to, as stated above, time.
So, here's to more innovation, experimentation, ideation, and things seen as new.
Strap in, as I think this is the first of many similar things. The rules of electronic access control in the modern era are not bound by the past.
There is no better time to be in the access control industry than now.
More on the Announcement
What was in it?
The key announcements from the webinar highlighted several important aspects of the "Accelerate" program. I broke it up into two sections:
Stuff You Heard Before
Wavelynx introduced its new "Accelerate" program, which aims to offer secure credentialing systems without the high costs typically associated with upgrading access control systems. In addressing the typical security challenges, their digital credentials and mobile wallets validate identity, ensuring that individuals accessing facilities are who they claim to be. It offers secure credentials that are difficult to compromise, provides administration tools for efficient access control management, and focuses on making the user experience seamless and intuitive.
A significant emphasis was placed on privacy and security. The Wavelynx Wallet Solution ensures that personal data is not shared, maintained, or stored, tying privacy directly to the user's device. Access can be instantly revoked in case of loss or theft, enhancing security. The Wavelynx Wallet Solution supports various applications, including parking garages, lockers, elevators, and printing, making it versatile for diverse environments.
The solution is designed to scale and adapt to the needs of growing businesses, supporting multiple applications across various locations with easy implementation and management.
New Stuff
Accelerate addresses the barriers to adoption, such as the costs of upgrading readers to NFC compatibility, wiring upgrades, and physical card compatibility, with multiple solutions, including firmware upgrades and replacement options.
The Accelerate program is based on cost-effective solutions. It offers a free reader with the purchase of 20 credentials per reader under a three-year agreement. The program also facilitates updates to older readers and provides more secure communication protocols, like OSDP.
The Accelerate program is available to end users or integrators in sectors such as corporate, multifamily, higher education, government, and any country where the wallet solution is offered.
To implement the Accelerate program, users must choose a partner and select either Accelerate or Core, sign a simple one-page agreement to receive the Wallet license, and the readers will be shipped within 30 days of the contract.
Wavelynx often spoke about wanting Accelerate to bring a more accessible, affordable, and user-friendly solution that addresses the common issues of expensive, disruptive, and complex access control upgrades.
Wavelynx showed the math behind the program: the total year-one cost for 100 readers is $47,000, compared to the traditional $89,000.
