Report: Physical Security Market Turning to Cloud and Hybrid Solutions

Genetec, a provider of unified security, public safety, operations, and business intelligence solutions, today shared the results of its 2024 State of Physical Security report. Based on insights from over 5,500 physical security leaders worldwide (including end users and channel partners), the report looks at the security strategies organizations are putting in place to effectively navigate the realities of a changing industry.

Cloud adoption is picking up speed
The adoption of cloud-based solutions for physical security has been gradually increasing over the past decade, but it is now picking up speed. According to the survey, 44% of end users reported that more than 25% of their physical security setups are now either in the cloud or use a combination of cloud and on-premises solutions. This is a significant jump from the 24% reported in last year's survey.

Cyber concerns about the cloud are diminishing
Cyber concerns about cloud-based solutions are lessening significantly. In last year's survey, end-users considered perceived cybersecurity risks to be the primary factor discouraging their organizations from adopting cloud-based security systems. However, there seems to be a shift in attitudes. This shift underscores growing confidence in the capabilities of cloud solution providers to establish robust cybersecurity measures. As a result, in the 2024 survey, respondents have relegated perceived cybersecurity risks to the sixth position among the factors deterring their organizations from adopting security systems in the cloud.

Channel expects increased demand for cloud and hybrid solutions
Feedback from channel partners also supports the idea that end-users are eagerly shifting towards cloud solutions. A substantial 74% of channel partner respondents anticipate that more of their current customers will embrace cloud connectivity for security in the coming year. Furthermore, 39% of channel partners stated that they prioritize cloud-based solutions whenever possible, and an additional 52% offer cloud-based solutions upon customer request.

IT and physical security departments are increasingly interconnected
The increasing adoption of cloud-based physical security systems has led to a rise in cybersecurity threats, data handling, and compliance requirements. As a result, IT and physical security teams are becoming increasingly interconnected as evidenced by 55% of end users indicating that the IT department has access to physical security data. As technology adoption grows and remote access from external networks becomes more common, the partnership between IT and physical security will continue to develop.

The future looks hybrid
It appears that most organizations will prefer a hybrid approach, combining both on-premises and cloud-based solutions. 60% percent of end-user respondents revealed that their organizations aim for a security deployment strategy that combines both. The transition to hybrid systems is already in progress, with 15% of end-users stating that their organizations are currently storing video surveillance data both locally and in the cloud, marking a notable increase from the 4% reported in last year's survey.

“A hybrid cloud deployment clearly emerges as the ideal path forward for many organizations, seamlessly blending local infrastructure with the power of the cloud," said Christian Morin, Vice President Product Engineering / Chief Security Officer at Genetec Inc. "With a hybrid-cloud solution, organizations can optimize their physical security installation to best fit their business. And no matter how their security needs evolve, their systems will remain agile and adaptable to continue providing them with the capabilities they require.”

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