SD&I Fast50 No. 2: What Makes A3 Tick?
A3 Communications Inc., ranked No. 2 in this year’s Fast50 after a steady rise from No. 6 in 2015 and No. 17 in 2013, focuses completely on the commercial sector — in vertical markets such as banking/financial, industrial, government and municipal projects, the whole range of education from the K-12 to college and university arenas, and general corporate clients.
While company leadership expects that client mix to remain similar into 2020, the kind of work A3 does for customers will change. “I think service revenue will go up in the coming five-year period and hardware sales will go down,” says Brian Thomas, president of the Irmo, S.C., company. In fact, he sees hardware sales declining across the board — a sea change for a company with its roots in PC hardware.
Thomas maintains that A3 is unique in the systems integration world: “We are a security integrator, but we also are a networking integrator and an electrical provider. We offer audio-video solutions, virtualization services and unified communications solutions,” he says. “We are a networking company that now does a lot of security integration.
“We understand that clearly,” Thomas adds, emphasizing A3’s foundation is as a networking provider. “Typically, we have a competitive advantage over other security integrators.”
That advantage is based on experience, knowledge and a team of network engineers on staff.
IT Focus Gives A3 an Edge
A3 adopted its name in 2001 when the company graduated from a PC hardware-based franchise to doing voice, data and video. A3 is shorthand for “All 3” services. Fifteen years later, the company has moved with the market to providing a broad range of consultative services and a suite of product offerings from networking to video cameras.
The company’s current focus is evenly split between its networking offerings – routing, switching and virtualization -- and physical security, including video surveillance and access control. “Everything is becoming converged now,” Thomas says. “A lot of security integrators are struggling because they do not understand the network.”
Like others in the security business, Thomas is aware that anyone can go to a DYI shop and purchase a video camera for $100. Will a company manager pay for a service call if that surveillance camera goes on the blink? Thomas knows the answer is “no.” The IT staff will simply buy a new el-cheapo camera and install it. That is a death knell for any security vendor who makes a living from product sales and maintenance updates.
To be successful, a company like A3 must be involved at a much higher level than wire pulling and screwdriver turning. Again, Thomas points to the number of certified network engineers on staff as proof. Many are young but already have been exposed both to security and IT-related projects. “They don’t just install cameras but also provide switches and build out databases,” he says. “We understand storage. It is a lot more IT-based than your typical security integrator. We have VMWare-certified engineers on staff who can provide a fully virtualized environment for our customers.”
The company is currently working on a large access-control deployment for a major university, and A3 will host the school’s access control. “There is no way another security integrator would be able to accomplish what we’ve been able to accomplish,” Thomas says.
A3 brings IT language skills to planning conferences and they understand IT’s concerns. Better yet, the company has a firm grip on the college community’s security needs as well — so they can talk about everything from electrified door hardware to unified communications and the impact it will have on the network.
Whether it is education or any industry vertical, convergence has come to rule. “Nowadays, conversations about security are with the IT department, which is responsible for security as a node on the network,” Thomas says.
IT traditionally focuses on bits and bytes and really does not have premises security as its core competence. A3 is in that sweet spot between traditional security and IT and can talk both languages. Better yet, A3 offers the IT department a one-stop-shopping experience for all of its needs from door security to video cameras to network services and up the line. “Lots of things are going to the cloud,” Thomas says. “We are very focused on our efforts on our service division and how to build RMR plus provide excellent customer service.”
The strategy gives A3’s customers the opportunity to work with one vendor rather than six. One-stop shopping is convenient for the customer — it avoids finger pointing and the blame game. “We can come in, build out the network for them, provide the surveillance and access control solutions, build them a database, virtualize their servers,” he says. On top of that, they will provide voice, data and fiber and all the electrical services that are needed.
To make it happen, there will have to be a higher level of engineering involved. That will be based on people and the education and experience of the integrator’s workers. “The guy who installs cameras today is going to have to understand much more from a service standpoint,” he says.
Thomas adds that in five years, security integrators in general will have much lower hardware sales figures as a percentage of their revenue, with that revenue becoming much more service-based. It will be the integration companies that understand all aspects of the network and understand all aspects of general technology that succeed, he says.
Building Business through Marketing
That is not to say that no salesmanship is required to make the sale. That lesson was driven home a couple of years ago when Thomas realized that their marketing effort was coming up short. “Frankly, we were not that good at it,” he admits.
Today, A3 Communications employs a full marketing department which operates under Michelle Moshinskie, director of marketing and communications. The marketing department is charged with developing and executing consistent, comprehensive marketing plans throughout the year.
“Our most effective marketing tools to attract new customers include tradeshows, lunch-and-learns, sales blitzes, webinars, social media and drip marketing campaigns with electronic and print mediums,” Moshinskie says.
Within their client base, many A3’s customers ask about hosted services for both video surveillance and access control. “Additionally, our prospects without a security plan look for extremely low-cost IP-surveillance cameras,” Thomas adds.
All of that activity means the company is on the constant lookout for good, qualified employees. “Although we work hard to attract top talent, our unprecedented growth leaves us in need of experienced candidates with an industry background and familiarity with our products and services,” Thomas says.
A3’s human resources department has developed partnerships and “feeder” programs with local technical colleges, universities and technology organizations to recruit the best talent. They do a lot of online recruiting and monitoring; in fact, Thomas found Moshinskie through LinkedIn.
“We maintain stellar relationships with our manufacturers and distributors, an additional source to discover solid talent in need of employment,” Thomas says.
Success is more than a high ranking in the Fast 50, however. “Enjoy what you do and hire others who share your same passion,” Thomas advises. “Continue to work hard and reward the employees who are dedicated to the same goals.”
Market Expansion
Far and away, A3’s mainstay market is education – from K-12 through college. That is followed by government, both state and local, and a stew of commercial clients. “Security is of utmost importance to schools,” Thomas says. “We continuously see security solutions required by schools — just based on where we are as a country today.”
A3’s offering goes beyond surveillance and access control to developing security plans. “It is not just cameras and card readers,” Thomas says. “It has become a necessity to have conversations around security plans from an operational perspective: how they use security, what their goals are.
“It is more a consultative approach today than what it was even three years ago,” Thomas continues. “You have to be sure the security plan they have in place is more than just cameras and access control but how they utilize that technology.”
As a result, the conversation has migrated to filling needs. “It will continue to grow. We are focused on providing a higher level of service to our customers,” he says. “You need to have a heartbeat on your customer’s needs.”
Any manager knows that having all your eggs in one vertical basket is not a good long-term survival strategy. A3 is one of the newer members of SecurityNet, having joined last year. That relationship will enable A3 to expand its business footprint by serving national accounts at the regional or enterprise level.
Beyond that, Thomas says they have an aggressive plan in place to expand geographically. In 2014, A3 made a major expansion into North Carolina. Today, in addition to expanding their presence in the Carolinas, they are looking at possibilities in Tennessee, Florida, Virginia and Alabama.
Curt Harler is a technology writer and regular contributor to SD&I magazine. Reach him at [email protected].
SIDEBAR
Learning the Biz
With the guidance of his father, Brian Thomas worked his way up in the family business
Brian Thomas learned from a good teacher, his father Joe. After a stint in the Marines, Brian left the Columbia, SC area and moved to Atlanta where he worked for a CLEC and later got into real estate, handling in condominium mortgages.
When housing took a major hit, Brian called Joe and asked if there were gaps in his father’s business that an up-and-coming fellow could fill. Today, Brian laughs about the idea he would join his father’s company as a vice president – probably with a corner office and big salary. “I had an air about me – full suit and tie,” Brian chuckles. Joe did not see it that way. He started his son as a commission-paid junior sales executive and told him to learn the business.
Learn he did. The next year, Joe did a million dollars in sales. He discovered it can be harder to sell a 10-man company a $10,000 contract than it is to sell a school district an entire solution. “It’s the same effort for more reward,” Joe says.
It took about four years for Brian to become vice president of sales. In January 2012, he took over as A3’s president…bringing with him the lessons learned in the field. Joe remains CEO.
Data Point
Company name: A3 Communications, Inc.
Website: www.a3communications.com
HQ location: Irmo, SC
Principals: Brian Thomas, president; Joe Thomas, chief executive officer; Dave Lewis, chief financial officer.
Year founded: 1990
Number of employees: 83
Residential/Commercial split: 100% commercial/government
Top technology brands sold\deployed: Exacq, Axis Communications, VideoInsight, Sony, S2 Security, Open Options, Genetec, Arecont, Ubiquiti.
