John Davies of TDSi talks Biometrics, NFC and International Expansion

We delved into the history of biometrics and its potential growth trajectory with access-control luminary John Davies.

Surveying a rapidly-evolving industry, the TDSi chief also notes how security is a ‘grudge purchase’ no more and reflects on the rise of NFC technology and the changing roles of installers and end users in the age of convergence.

IFSEC Global: Hi John. How are things going at TDSi right now?
John Davies: Well. Come the end of April 2013 we’d recorded about a 13% increase in sales on the previous year globally. UK was up 15%, Europe was down though France was up 40%, and the Middle East was up 20%.

And we’re seeing similar growth rates this year.

We’re opening up new export markets to East and West Africa and south-east Asia. Vietnam and Thailand have been very good for us this year and there’s a lot of potential in Malaysia.

We did the IFSEC southeast Asia show in Kuala Lumpur in September last year [find out about this year’s IFSEC southeast Asia, where TDSi are exhibiting again].

We’re also looking at the Philippines and Indonesian markets and put some new resellers into our channel in China. We’re also opening avenues into Australia.

About two years ago we changed our route-to-market strategy, which really boosted sales growth.

We filled eight new job positions last year, mostly technical, marketing, sales and operations. We hired three new apprentices. This year we’re hiring mainly in product development.

IG: So demand for security solutions is growing strong globally then?

JD: I think so. The access market is growing about 4%. I think worldwide compact annual growth is projected at 7.5% over the next five years. But we’re growing at twice that rate.

And access control is about more than just controlling access through doors. It’s about identity management, knowing where people are and giving permissions.

It’s also about integration. OK, you’ve come through the door, the door system’s told Microsoft that you’ve arrived, and so you can log onto your PC. Or so many people have entered so the building management system turns the heating off or increases the air conditioning.

IG: In what ways does the emergence of integration as a dominant theme change things?

JD: Security has traditionally been a bit of a grudge purchase –  ie,“we’ve got to do this because the insurance company told us to.”

But thanks to integration businesses can see a return on investment, cost savings – and that’s where we’re seeing most interest in our products. We’ve been banking on integration happening since about 2005-2006, so I think we’ve been doing it for a bit longer than most. I think that’s why we’ve been successful.

IG: Tell us about your biometrics products…

JD: We first started with biometrics in 2002-2003. Another company wanted to use bioscript readers and interface the enrolled side of bioscript software with the access control system – one system not two.

So we started to interface with Panasonic’s iris recognition systems in 2004. Since then it’s become more popular and the cost has come down.

I can remember bioscript units sold in 2002 for £1,200 each; now biometric readers cost £300 or £400. We started developing fingerprint readers in 2009 and launched the three-factor digi-card plus reader in 2012.

And we’re seeing a lot more attraction with that reader because biometrics aren’t just used in a security context; in many overseas markets it’s used for employee timekeeping and attendance.

We finished a project before Christmas with a large casino that wanted biometric readers because you can’t chop someone’s finger off to get through a door. So we are starting to sell an awful lot more of our biometric readers.

We secured electricity substations in Bangkok; 174 site now use our fingerprint reader, access controllers amd technicoms intruder alarm.

IG: With the security and IT worlds converging how do you expect an installer’s job to change?

JD: Installers who have installed IP CCTV for a few years have realised they need IT networking skills, structure cable skills and network design skills into their business – either to do the work themselves or to interface with IT or network managers to get systems running.

You’re now seeing IT companies entering the security world and saying: “Well we’ve got these networking skills, we understand IT. We just need to hire people who can design a security system.”

So those guys are seeing themselves as a one-stop shop. So that’s why you have companies like Anixter entering the security world over the last four or five years.

IG: And end users have had to become much more IT-savvy too…

JD: They’re getting more involved with the IT and networking people rather than facilities management people. And end users are very much more driven by “we’ve got a problem, we need a solution”, rather than, as I said before, security was a grudge purchase, but it’s becoming less so. If they get more involved it can deliver benefits.

IG: What are the big technological or regulatory challenges for you right now?

JD: Next year we’re looking at expanding into the US, so we’ll have to go through the Department of Homeland security and UL hurdle’s but as long as you know what they are and you can manage them, and as long as it’s not too costly and time-consuming, you can work with that.

As a technology manufacturer we wrestle with the question: “How quickly will NFC [Near Field Communication, as used in contactless cards] technology really take off? Will phones replace cards and how quickly is that going to happen?

I think it will happen at a slower pace than many people actually think. But that doesn’t mean we just sit and wait to see the take-up. We need to embrace this technology, put it into our family of readers, because we don’t have the pockets to change marketing or change consumer behaviour.

I think consumer behaviour will change. Biometrics and face recognition technology will be used to access phones.

Because if it’s a finger or a face reader, you know that finger or face belongs to that person. If it’s a phone, how do I know it belongs to that person? So that’s where you need biometrics in the phones.

So in that sense, biometrics seem invulnerable – but of course nothing is 100% invulnerable.

IG: Might biometrics’ ostensible invulnerability make operators complacent?

JD: There is that danger, but you could have said that with the key and the padlock. Someone learned how to pick the lock or copy the key and it’s just whatever system’s in place, someone is going to try and find a way to fool it. If they’re determined enough, and the prize on the other side of the door is big enough…

Free Download: The Video Surveillance Report 2023

Discover the latest developments in the rapidly-evolving video surveillance sector by downloading the 2023 Video Surveillance Report. Over 500 responses to our survey, which come from integrators to consultants and heads of security, inform our analysis of the latest trends including AI, the state of the video surveillance market, uptake of the cloud, and the wider economic and geopolitical events impacting the sector!

Download for FREE to discover top industry insight around the latest innovations in video surveillance systems.

Download The Video Surveillance Report