Volume 71 | September 16, 2024
Welcome to Brief 71! Having just returned from Legic connect24, a unique 48-hour experience, I am filled with enthusiasm and excitement. This exclusive gathering reaffirmed the irreplaceable value of in-person interactions in our industry. It provided a rare opportunity to witness firsthand the innovations and challenges faced by companies in the field - an insight that simply can't be replicated through virtual meetings.
In this Brief, I'll share my overview of Legic connect24, delving into its significance and the broader implications for Legic as a company. Additionally, I'll address a critical point: a call to action for dormakaba to support or reconsider its position regarding Legic's potential entirely. This aspect warrants particular attention as the absence of dormakaba at the event was ironically on full display. I'll explain more in depth below.
Upcoming Events This Week
The following week, I'm heading to Denver for VerkadaOne. (Envoy was postponed to later this year).
Next, it's back to Zurich for Bergfest, where I'll meet with Any2Any, FATH Mechatronics GmbH - TANlock, and 20 global thought leaders in our industry.
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!
PS: I am sure some of you may forward this, but please do so sparingly and encourage others to sign up here. Thank you!
Legic connect24
Legic connect24 was a great experience showcasing the company's potential and its technologies. The event is a smaller, more technically focused version of Apple's Developer Conference. While there were elements of self-promotion, the primary focus was on partner technologies and use case demonstrations, making it more of a technical showcase than a sales pitch.
The event started with a networking session at the FIFA Headquarters in downtown Zurich. This provided an excellent opportunity for attendees to reconnect with old colleagues and meet new faces in the industry. The evening was filled with networking, insights from a renowned referee, a playful display of the geographical rivalry between the Swiss and Germans, and an introduction to the event's themes.
The main event occurred at StageOne, a venue reminiscent of early tech conferences in San Francisco. The converted warehouse space provided the perfect backdrop for gathering about 300 industry professionals from around the world. The long form layout, picture a NFL football field or futbol pitch, offered attendees choices: grab refreshments, head to the main stage, or explore partner stands showcasing Legic-enabled technologies. The partner area was particularly impressive, featuring various applications from traditional access control to cutting-edge solutions like EV charging stations and indoor positioning systems.
The technical presentations were a highlight of the event. Legic's team presented new developments excellently, demonstrating how technical products should be showcased. The Neon platform and Orbit services stood out as potential game-changers in the industry. These innovations are designed to meet the market's evolving needs for access and related solutions, including time & attendance, parking, closed-loop payment, and logical access. With Legic's work on Nordic BLE, UWB, and standards like Matter, these developments position the company as a strong competitor in the broader IoT space.
Andreas Manser's presentation on IoT applications was inspiring. It highlighted the vast potential of the "$100B side of 'things' opportunity." This focus on IoT underscores the endless possibilities beyond traditional access control, opening up new avenues for innovation and growth.
(Sal D’Agostino gave a presentation called Identity: Evolution or Extinction that should be seen by everyone. Reach out to him and I am sure he will share it with you).
Legic's overarching strategy can be summed up as "solving problems, delivered by partners and owned by customers." Their focus on digital sovereignty, versatility with standards, and lifetime value sets them apart in the industry, in my opinion. The concept of "uncomplexity" is particularly intriguing—a made-up word that perfectly encapsulates their approach to simplifying complex technologies, making them more accessible and user-friendly.
Reflecting on the event, it's clear that Christoph and his team have much to be proud of. Legic connect24 showcased the company's current capabilities and hinted at the boundless opportunities that lie ahead. As an attendee, I left excited about the industry's future and Legic's role in shaping it.
The Great Potential and Plea for Action
While Legic's immense potential was on display at connect24, it also highlighted the constraints of being part of a large mechanical lock company like dormakaba. The disconnect between Legic's innovative software capabilities and dormakaba's traditional mechanical approach is becoming increasingly apparent. This situation is common when a subsidiary technology developed for a specific purpose finds broader applications across various industries.
The evolution of Legic's value proposition - from secure lock credentials, say, for a hotel, to enabling secure transactions for EV charging stations - demonstrates the company's adaptability to shifting market demands. However, dormakaba's perception of Legic hasn't kept pace with this transformation.
Conversations with industry executives outside dormakaba reveal a stark contrast: Legic's potential is often better understood externally than internally. This disparity is concerning and frustrating. It's important to note that this isn't a criticism of Legic's leadership team, who grasp the company's potential. Their restrained approach, to a point, is understandable given the challenges of operating a software-oriented business within a mechanically focused parent company.
This is not an attack on dormakaba's leadership. Instead, it's a call to urgent action. The dormakaba Board and leadership team need to reassess their stance on Legic. There's a pressing need for a comprehensive investment thesis that positions Legic as a cornerstone of dormakaba's future - not as a replacement for the mechanical business but as an equally vital component.
If dormakaba cannot fully embrace and support Legic's potential, perhaps it's time to consider finding a partner who can. The responsibility for Legic's underinvestment ultimately rests with the Board and the dormakaba leadership team.
To the dormakaba leadership who attended Legic connect24: What were your key takeaways? Did you recognize the excitement of your global partners and the vast opportunities beyond traditional access control? Did you see areas where increased commitment and investment could drive growth?
My intent in raising these points is to spark curiosity and drive action. The potential for Legic is clear, and the opportunity is inevitable. With the right support and investment, Legic could lead the new access control industry and open up fresh revenue streams in the rapidly growing IoT market. What remains to be seen is whether dormakaba will invest the necessary resources to capitalize on this potential.
The time to act is now. dormakaba has a clear path to success with Legic, but it requires commitment, vision, and decisive action in 2024 to reap the benefits for decades. The question is: Are you ready to seize this opportunity?
In Conclusion
Witnessing Legic's operations revealed its unique position: a company straddling the transformation of a $10 billion legacy industry while poised to capitalize on a $100 billion future market. Its potential seems boundless, yet its position within a traditional lock company currently constrains it.
Reflecting on my experience at the event, I was caught in this same duality. On stage, I joined eight others in discussing the implementation of wallet technology for large-scale access control applications. Presentations on indoor positioning systems and EV charging stations followed this. While our discussions about mobile solutions and wallets at scale were exciting, I realized we were, in a sense, telling an old story in a new context.
However, this juxtaposition of established and emerging technologies makes this opportunity so exciting. It's the convergence of the old and the new, opening doors to a $100 billion opportunity.
The potential for Legic is clear, and the opportunities are vast. I hope dormakaba recognizes this potential, makes the necessary investments, and allows Legic to realize its capabilities fully. The future of access control and related technologies is bright, and Legic is well-positioned to lead the way - if given the chance to spread its wings.
