Lenel, S2 marriage ignites strong legacy memories

Oct. 5, 2018
It is hard to ignore the impact the pioneers that founded these two industry powers have had shaping today’s market

When I entered the security industry in the late-1980s John Moss was already attaining legendary status. His launch of Software House in 1981 created the first true enterprise access control system that was seamless and relatively open to other technologies. The Software House C•CURE solution became one of the industry ’s most installed products. Moss was a technology evangelist who is certainly regarded as a key pioneer in the development of the modern age and someone I enjoyed listening to relating what visions of the future might entail.

A decade later I met a captivating Russian couple at a tiny technology company housed in the bowels of the Kodak Company in Rochester, New York. Elena and Rudy Prokupets had convinced Kodak that their idea related to managing photo images on a PC was worthy of a start-up division called Edicon. Their digital ID technology evolved into a $50 million enterprise for Kodak. Both Rudy and Elena left Kodak to launch Lenel Systems International, which began as a software multimedia company providing innovative solutions to customers such as Oracle, Borland, IBM and Microsoft.

I still remember being invited by Rudy to a celebration of its  “grand opening” at the new facility in Pittsford outside Rochester in 1995. As a small start-up, Lenel immediately faced the challenges of entering an established access control marketplace. But the Prokupet’s innovative approach to technology and the promise of an open-architecture solution Lenel soon gained a following. In short order, Lenel’s OnGuard enterprise management system emerged as an industry standard.

The Prokupets sold Lenel to United Technologies in June of 2005 for around $400 million, which began a flurry of more than a decade of high-profile mergers and acquisitions around the security industry, one of which was Moss selling Software House to TYCO in 1996.

I figured I had seen the end of John Moss in our space, but we all should have known better.  Almost 35 years after founding Software House. Moss and several former business and technology partners launched S2 in the spring of 2003. This was a new venture that would tap into the ever-expanding world of networkable security products that could manage multiple security systems over the web. Fifteen years later S2 and Moss seemed to have had a crystal ball into the future, as they honed the concept of running multiple security end-devices across the network controlling access control, video and other systems into a plug-and-play format. Both systems integrators and end users embraced the concept. Moss was IoT savvy before it was a “thing”.

For me, it was deja vu all over again this week as UTC Climate, Controls & Security completed its acquisition of S2 Security and launched the combined technologies of S2 and Lenel to create the new LenelS2. The marriage of the two iconic brands and industry pioneers aims to provide scalable, cutting-edge customer solutions in the access control and security management systems industry, serving global enterprises to small- and mid-sized companies, according to the UTC Climate, Controls & Security public relations folks.

Lenel President Jeff Stanek will lead the new organization, while Moss will serve as Chief Product Officer. The broader leadership team will consist of key members from each company, ensuring that the combined company will bring together the best of both worlds in serving its customers.

I was able to catch up with Alex Housten, the Vice President and GM for Fire & Security Products at UTC Climate, Controls & Security following the recent GSX event in Las Vegas on behalf of SecurityInfoWatch.com to get his reaction to the new collaboration of legacy companies Lenel and S2.

Steve Lasky:  What does the acquisition of S2 bring to the table that Lenel didn’t already have from a technology perspective?

Alex Housten: We are extremely excited about this combination, and we believe the potential of LenelS2 is far greater than the sum of its parts. As far as integration benefits, with the acquisition of S2, the Lenel side of the business will gain a strong, feature-rich and scalable SMB solution that complements its OnGuard platform. Ultimately, the combination will accelerate our development of access control and video-centric solutions for intelligent buildings across the globe.

Lasky:  How is the S2 solution going to blend into the OnGuard technology and what new vertical markets will it open up?

Housten: LenelS2 will seamlessly combine the depth of Lenel’s OnGuard platform and BlueDiamond mobile credentialing with the breadth of S2’s product ecosystem and channel. Products like Magic Monitor will also soon be available across the customer base from SMB to Enterprise, bringing new technology and solutions to customers. Additionally, customers will enjoy the benefits of a unified access and video SMB product to complement the enterprise products they currently utilize today.

Lasky: Is there a go-to-market strategy that S2 lends to capturing enterprise-class customers and expanding cloud-based technologies?

Housten: LenelS2 brings together two world-class, innovative teams with complementary strengths, and the increase in scale and reach of the combined sales force will enable us to better serve the complete range of customers, from global enterprises to small and mid-sized companies. We also believe there is a significant opportunity for cross-selling as we will accelerate and scale through integrated access control, mobile and cloud security management and video-centric solutions for intelligent buildings.

Lasky:  How will the acquisition play within the channel and S2 dealers?

Housten: Customers will maintain their day-to-day point of contact and immediately benefit from more choices as a result of the combination of businesses. They will receive the same best-in-class product features and services and will enjoy increased innovation and R&D.

Lasky:  Some in the industry have said that Lenel has been a bit stagnate in market presence. Is the S2 acquisition a move to ignite a Lenel resurgence?

Housten: Absolutely not. Lenel has been reinvented in the last three-and-a-half years, with a laser focus on providing excellent customer service, and on the modernization of the OnGuard platform, which has a completely new, intuitive and clean graphical user interface called Lenel Console. OnGuard can now be hosted in the cloud and is accessible on mobile devices and web clients to support the dynamic needs of today’s security professional. We have also launched an expanded leading functionality with Blue Diamond mobile credentials, and added significant and meaningful product integrations through our Open Access Alliance Program (OAAP), providing Lenel’s integration partners and end users with unsurpassed intelligent security system functionality.

Another important point.  One of the values we love most about S2 Security, and what we will cultivate across LenelS2, is the focus on the customer. Lenel has taken significant steps since 2016 to improve the customer experience and is gaining traction. As LenelS2, we will maintain that same customer-centric focus and work toward creating a measurably better experience for all customers.  

The Lenel and S2 product lines will exist in harmony, and we see the acquisition as a unique opportunity to both enhance and broaden LenelS2’s service capabilities, customer support, and product offerings. Together, we will have one of the largest installation bases in the industry, with more than 50,000 systems worldwide. Ultimately, it is about better serving our customers by continuing to provide them with best-in-class product features and services – as well as more choices.  

About the author: Steve Lasky is the editorial director of SecurityInfoWatch.com Media Group, which includes the SIW web portal, along with print publications Security Dealer & Integrator, Security Technology Executive and Locksmith Ledger International magazines. He is a veteran of 30-plus years in the security industry. [email protected].

About the Author

Steve Lasky | Editorial Director, Editor-in-Chief/Security Technology Executive

Steve Lasky is a 34-year veteran of the security industry and an award-winning journalist. He is the editorial director of the Endeavor Business Media Security Group, which includes the magazine's Security Technology Executive, Security Business, and Locksmith Ledger International, and the top-rated website SecurityInfoWatch.com. He is also the host of the SecurityDNA podcast series.Steve can be reached at [email protected]