Video Surveillance [VIDEO]

[TRANSCRIPT]

My name is Corey English. I am the physical security practice manager for Loffler Companies and my responsibility is to manage the physical security offerings that we have across the entire Loffler footprint which is pretty vast. It's throughout the Midwest, all of Minnesota, Wisconsin, Northern Iowa, South Dakota, North Dakota. I formerly was a loss prevention manager for the Nash Finch Company, a Fortune 500
company.

And so I caught shoplifters and dishonest employees and the point there is that I was the user of video
surveillance equipment and that was a frustrating time with the equipment that we had to work with during that period or era, and I'll kind of touch on that in a little bit.

After my years at Nash Finch, Mike Ketterl and I and we... Mike, back there in the corner... Mike is also with Loffler now. Mike and I started a side business, well I was actually still working for the Nash Finch Company, installing camera systems on the weekends and we grew that into a viable business. Another gentleman caught wind of our successes there, and I think he is in the room, Gary Johnson over there, and Mike, Gary and I partnered to form Laser Systems Security in 2005.

So that's kind of the evolution of my career. It's always been something to do in physical security. Come on in. Plenty of chairs. That's not me you guys [laughing]. And my co-presenter [laughing].

I Want to Learn More About Physical Security

James Anderson is one of our manufacturer's reps and he reps some of the mainstay manufacturers in the industry standard with dorma kaba, Hanwha, Altronix and several others. Very knowledgeable in his shoes in his industry so I thought it would be fun to hear from him today about things of cyber security nature and we'll get into that but I think that'll be really interesting for you guys to hear. All right. So Laser Systems was founded by Gary Johnson in 1990 as an imaging company and after the years went on they got at document management, managed print services, toner manufacturing and then in 2005 that's when we started the security division at Laser Systems. Loffler Companies by contrast, founded in 1986 by
Jim Loffler, by one guy and he's still around, as youthful as ever and he's still the sole owner of Loffler Companies and the business is run like a like a small company; it has a small company feel. When we were acquired by Loffler, we really felt welcome. It was an easy story, the Loffler story was an easy one to kind of resonate with our customers and so we're happy to be part of Loffler.

Loffler was founded as an imaging and dictation company and then they expanded into managed services, telephony, security, when they acquired us, Laser Systems, and much more so and I have acquired Laser
Systems in May so we're about six months in and by the way I appreciate all the customers that were Laser Systems customers that have now followed us to Loffler. It does mean a lot. Moving on.

Just touch real briefly on the security services that we do provide. I know the title of this breakout session was, video surveillance, access control and intrusion alarms, what you need to know, we're not going to have time to talk about intrusion alarms really and access control except to just mention it here.

Video surveillance, we're talking about IP network based systems. We still do run into HD over coax where we have customers with an existing coax infrastructure and it's cost prohibitive to actually re-cable. We are still supporting analog in some cases, believe it or not, there are people out there that still have analog cameras that are working. Video surveillance as a service is becoming more prolific and more and
more people are asking. Video surveillance as a service is like a hosting situation. Video is stored up in the cloud and as we might brush on later there are some issues with that depending on the resolution of
your cameras, the throughput you have, the bandwidth, etc. Card access, we have stand-alone solutions for card access, what we manage, co-manage. We can do access control as a service through one of our partners and hosted vs. non-hosted. So all of those are in our, kind of our bag of goodies. Intrusion detection systems of course your typical alarm system that you might have installed in your business. Those systems can be managed or co-managed or customer-managed.

They're usually communicating these days via cellular not so much POTS. Anyone know what POTS stands for? Right, right. So there's somebody still that knows that. Yes, so there really aren't any plain
old telephone system lines anymore. They're all fiber converted to copper and simulated analog. Other systems that we install, intercom, 70-volt distributed audio paging, fire alarm systems, fiber cabling certification, so that's a a real quick overview of the services that we provide.

So I thought it would be interesting just as a comparison when we get to what James will be talking about a little bit later, the history of video security. So early systems, I remember... Is Josh Ellison here? No he's not, okay. Josh took my job when I left Nash Finch as a loss prevention manager and when I walked into the security office for the very first time in Nash Finch I walked into a cabinet that had VCRs lined up with VHS tapes and multiplexers and it was, it was a hassle right? You had to rely on somebody to change those tapes otherwise you didn't have any video. But then a couple of companies came out with something called the digital video recorder, actually AD stands for America Dynamics and DM is dedicated micros. DVRs existed before they came out with a surveillance style digital recorder. In fact, Tivo back in 1986 had a DVR solution for broadcast. But this was the first DVR, these were the first DVRs that recorded to a hard drive.
Pros, of course no tapes. Video would just overwrite if you set the DVR up to overwrite.

In some cases they have a network part so you could connect via client. Cons, finite storage inside the machines, early hard drive technology. It's improved a lot, back then the hard drives were really not designed for video surveillance. Video surveillance is pretty intense. A lot of data being written and therefore you're producing a lot of heat and bearings expand and hard drives fail. Image files, low resolution and you're only, back then you're only able to get about 4CIF. Which is about 480 by 680 or D1 which is 480 by 720 out of an analog camera. Then there was 960h and some other protocols, we won't get into that.

The advent of the network camera: So the first company to come out with the network camera was Axis Communications, back in 1995, it was the first one. And if you looked at it today you would expect that you would have dug it out of the ground from 200 years ago because it was really you know kind of gangly looking. You know on a stand and kind of looked like a teardrop looking at it from the side. The point there is those first cameras with low resolution, not much better than an analog camera. Problems with transmission. Transmission was looming because as time went on, resolutions on IP cameras went up and worried about well how much information can we push over wires. Compression was kind of a solution to that. We'll get to that in the next slide.

Advent of the NVR. So the network video recorder which is to say basically a computer with hard drives but the vast improvements of recording capabilities led to the ability to record higher and higher resolutions, improved compressions and that led to less storage. New hard drives came out, everything got more and more reliable.

Cons, new things to worry about. Well, that kind of opened the floodgates. So, many manufacturers flooded the market and wanted to enter into that space because there was a huge need. It was a little bit slow at first, but everybody wanted to own that space.

Axis Communications kind of fell behind, then you had manufacturers like Sony and Samsung, IQinVision, they kind of took the lead and in the progression of megapixels, we had further improvement in file
storage with different compressions.

We're gonna talk a little bit more about compression in kind of the next segment with James but we went from JPEG and MPEG to H.264 which is kind of the mainstay compression in the industry for a long time. Until H.265 was released and then the manufacturers have their novel ways of further compressing the images and pushing more processing to the camera has allowed the servers, video servers, to run on fewer
resources so record more cameras to a server, take up less storage so on and so forth. Some of the problems you know now you have IP cameras and NVRs on the internet, part of a larger Internet ofThings, IOT, and now we're concerned about, you know, the teenager in his parents basement with nothing better to do than to hack into your system and try to take over your cameras and take your system down. So now these days we worry about hacking, distributed denial of service attacks, ransomware attacks and then just
the larger issue with throughput, how much can we actually shove through a wire in terms of information.

Processing power, you'll see that the camera manufacturers are coming out with faster and faster chip sets. Hanwha, for example, is going to releasing their Wisenet chip set which is going to do a ton of processing of camera that chip set is needed for all of the analytics and AI that's gonna run on that particular line of cameras - x-series and p-series, I believe?

Other cyber security concerns: Protected information, complex passwords
We're gonna do a demonstration on complex passwords, there's a link to a website where you can actually punch in a password and see how secure it is in terms

[James] Please don't use your own password to do it.

[Corey] Yeah, don't use your own password. You just never really know about these websites and URLs could be coming from China or something like that. So, well thank you that's kind of the first segment. Turn it over to James and Ben Kallas and Johanna Gross from Hanwha who are here actually to provide a little more esoteric information if we have some tough questions at the end.

And... Any questions so far about what I've talked about?

Okay well I have 10 minutes at the end so write your questions down mentally and then we'll hopefully have time to answer.

[Johanna] The one thing that we don't lack is passion for what we do. Really.

[James] Perfect. Thank you everyone. I'm James from Core4Technologies. I'm a local manufacturer headquartered out of the Twin Cities. Got Ben and Johanna from Hanwha here, they'll jump in and help me
with this presentation as we go through. Couple things we wanted to highlight from Corey's perspective is I wanted to touch base on a couple of things today. Think a little differently. A lot of people have video surveillance systems or have talked about it. Most people think of video surveillance systems as just security. Meaning I put up a camera I want to catch a bad guy, put up a camera I want to watch somebody as they move around the facility, whatever. We want to think about how we can use the technology to be
smarter. How that sometimes works in the world that we live in today.

Sometimes in a matter of, you know, we may have companies that come to us and say, you know we're looking for some cameras for our business. We work with Loffler, we go out and we put together a quote and they look at it and go, holy cow, we can't afford that or whatever the case may be, but thinking about it from a big picture perspective. We can solve multiple issues using technology. We can go back to other parts of your department or within your organization and figure out ways to maybe increase profitability. You
know, save, you know whatever the case may be, you know, save lives, prevent things from happening, whatever the case may be.

It can be more justifiable and easier for you guys to sell upstream to your management or to yourself even sometimes. Along those lines. Today my presentation really our presentation, is gonna be broken down into two things. Number one we wanted to discuss, you know, so who is Hanwha? We're a manufacturer based out of South Korea, like the Honeywell, you know, of South Korea. You know, we're a military defense company. That's what we do. So we're based in South Korea, we do all of our manufacturing in South Korea and Vietnam. And we're a fortune global 500 company. When we roll into part of presentation number one, we want to discuss was really cybersecurity in general.

Corey brought that up as a big topic, it's a big topic as we discussed today. One of the things you may or may not know the federal government announced a ban last August that went into effect this August. It affected two major Chinese manufacturers, Hikvision and Dahua and any of the manufacturers [inaudible] which is hundreds of different people so it doesn't matter who they are, they're out there.

About 80 percent of the video surveillance is probably what you see on the marketplace is literally made with the same components, the same piece, the same this, same that. And a manufacturer is truly like an assembler, they buy different components, put it together, put their firmware on it and saturate the market with all these products that came out in China. The reason why it was such a big concern is one of the products had backdoors to it where the Chinese government can get into it, you can hack easily through cheap firmware which we'll touch on why that's important, but the last thing, one thing I'll finish with, we manufacture from chip set on up. So we do our own lenses, we do our own boards, you know, we are a 60 billion dollar a year manufacturer of anything that's specialized, including f-16s on down to surveillance cameras so...

[James] Well I'm going to talk about cybersecurity, I walked in front of one of those competitors about a week and a half ago with a contractor. Walked up to a system, we didn't know the log on for that system, the end user didn't have log in information for the system. I physically made a phone call, ten minutes later I had a root door backward password to log into the system. So you install one of those in your company everybody thinks, it's in a closet. Now we have access, so me, just a little old me was able to walk up to it, take 10 minutes to log on to gain access to it and do whatever I wanted to the camera and anything I wanted to the NVR. Now imagine you actually put in something for surveillance or for security if I was to walk up to that and be able to within 10 minutes gain access, set the time back three hours, go and do whatever the heck I wanted to do, go to the NVR then change the time back to three hours, write over everything I just did and walk out. We have no idea who was ever in there. And more importantly when we look at cameras we look at nothing more than a little computer hanging in the sky. We look at things that are being hacked today, you know, Internet of Things, you know, devices that are being hacked, you know, those are the things that are of major concerns and like he mentioned to have a Chinese manufacturer now has access to our network it's kind of a big deal.

You know, we look at all kinds of major hacks, as far as Target and other things. It was a HVAC contractor that walked in with a thumb drive that plugged it into a machine that spread like rapid fire. Same thing can happen in our world today on a video surveillance system. So cybersecurity should be a big deal, it
should be something we're having a conversation about and making serious, you know, and we're not the only manufacturer taking this seriously, but this is something that is very, very serious to us so you know we're taking care of it.

So what are we doing today? You know we've got a whole team that's dedicated to cybersecurity. We've written documentation that we hand out to our contractors, our end-user partners, and people that are installing our product. We talk about cybersecurity and more importantly, how do we harden our product? You know, if we forward a couple of slides here and we sit and look at this a lot of times we walk into companies today and we look at their network and everybody's so concerned, they say, well my cameras are on the network, they're behind my firewall. That's great you want to harden them, you want to lock down our network. But more importantly those devices that are out there need to be locked down as well. Making sure that we're current, we stay up-to-date on firmware. With that team we just discussed a minute ago that we have that's in South Korea looking at this, we're constantly trying to find vulnerabilities in our products. Today we have yet to have a major vulnerability that's been found by somebody else, but the fact is we find little bugs all the time. We come out with patches, we send them out to the public, tell them to update them. We want to be ahead of the curve – making sure that we don't have a problem with that. Other manufacturers in the world today that have vulnerabilities, have an attack, which creates major problems. So again something to take very, very serious.

[Corey] The importance of keeping firmware, software, up-to-date at all times.

[James] Exactly and you know working with the trusted partner like Corey here at Loffler, that's
one of the things that we discussed and have conversations all the time. He's the filter down to you folks, you know, if an end-user isn't paying attention to this stuff. He's making sure that when there's firmware updates that we're contacting our customers, whether it be on a regular scheduled basis or if there's a major patch that comes up, making sure we're being in front of our customers. In fact, one of the first things you see and I stepped over is, the whole, it disappeared, the whole built on trust thing. 

[James] So really, truly, when we start talking about, you know, cybersecurity in general, it is all about trusted devices. We want to make sure the devices we're putting on our network are trusted. That's also in the video world, that could be in the access control world, alarm systems, everything we do today is going to the IP. It's going out to the network, it's going on the network I should say. We want to make sure those devices are trusted.

[Ben] We've been working with Corey, I don't know 5-6 years now? If not longer? Yeah, before the transition to Loffler and he sought us out because he was looking for some best degree products that have these different guidelines. You know, Hanwha manufacturer [inaudible] Samsung before, but they got picked up a few years ago but we're in anything you can think of from jails, to stadiums, to your big retailers, your banking, all those different worlds, including some of those that had cybersecurity issues. So when you get through their testing cycles, I mean, you're proving it's something that's trusting you by those entities and that's why [inaudible] Corey reached out to us in the past because he can rely on us. I mean we aren't just going to leave him hang out to dry.

[James] So as we roll into the next thing is we have for a long time had a strong password policy. So it's something that forces us to have a complex password, so minimum character length, you know, capital, lowercase, you know, it's both numbers and special characters is something that's very important to us and that we enforce. With our product if you do not know the password, if you set a password you walk away and forget it, I'm sorry there is no way for us to log on to those devices. The only way of getting to them is physically factory reset those devices, bring them back the factory and bring them back online. Which requires going up to the ceiling, removing a cover, holding down and there's a whole sequence of things that need to happen to be able to factory reset a camera.

[Ben] Now the cool part is we have all the tools that installers and the people that commissioned the systems like Loffler can use in order to avoid any of those things from happening. So the reality is that those things shouldn't happen if we all do it correctly which we do.

[James] So as we talked about this, Corey had mentioned there's a website out there that allows us to just
randomize a password. So for example I'm just going to use Loffler. I just used Loffler with a capital L. They say with these auto-generating, you know, these hacking sites, within 6 minutes or 6 minutes 2 seconds they can hack that. You know, so now if I just put an @ sign after that, now it's gone to 10 days. Now I'm gonna put a number, I'm going to put the number one, 6 years. Okay I'm gonna do the number three. It just went up to 609 years. Okay?

[Ben] So our base passwords on the cameras require eight character passwords, require a capital letter, a special character and a number. So you can see even just with a base that we do, that other people don't do, it's a more secure device right off the bat.

[James] And so a simple password like Loffler with a capital L, with an @ sign, one, three, five, with an exclamation at the end, now became a very long time for somebody. Something that simple which is adding
those different characters you can see very difficult to hack. So whether you're on your own financial institution, using your website, a lot of people say password, okay or something simple you can remember your kids' names with, lowercase, doesn't take very long for people to hack those things. I'm taking
that seriously so we have done that and incorporate that into all of our technology.

So hopefully just got you guys thinking about something a little differently. You guys have systems on your network today, you know, are they compliant, are we following some of those guidelines to make sure we're secure? You're looking at new technology, making sure that we're thinking a little different, that we're taking that aspect seriously, if somebody other than Corey is coming out to see you, make sure we're asking questions and making sure that the product that you're going to put on your network, you know, it's secure and you don't have anything to worry about.

So part two of this, is we want to think about being a little different. How are we using technology today, how are we picking the right cameras for the right job? So as we look at and I'm not going to talk technology, we're not going to go through a bunch of different cameras, we're gonna talk more technology. As you can see with what we do as far as Hanwha, as far as cameras, we have everything from entry-level product, you know, HD over coax, you know, Corey mentioned having a product today, that a lot of old analog technology out there. There is technology that allows us to take HD cameras and run them over the coax and encode them and bring them into a regular IP NVR so with our HD over coax product and that, beautiful thing about that product is it's both HD analog or HD or HD over coax as well as it can be a traditional analog product as well.

And then all the way up to explosion-proof, thermal, stainless steel, we've got all kinds of crazy things that
fit within everything in between.

So Ben do you want to talk a little bit about H.265 and our WiseStream technology?

[Ben] So traditionally speaking one of the biggest downfalls with IP based video surveillance systems is how much networking you need in order to get video from the camera to the recorders and how much storage you need for that. Anybody that has worked with managed systems has probably run into something that has to do with it.

Well as all technology evolves we find better ways to transmit the data and H.265 was essentially the next
generation of transmitting data. It was actually something developed by Netflix, for guess what, streaming high definition video. So it's something that's been adopted within our industry by some manufacturers; we've had it onboard since about 2017. In essence it makes it more efficient for you to run your video
system on your network, uses less storage, that requires less cooling, less space in an IT closet, all kinds of good things. So really, what it means is, we're more defining how we gather information out of an image so we're just easier on your network, it's an easier system to use from that standpoint. Does that make sense?

[James] Yup. And as we start talking about higher resolution cameras, one of the biggest things or biggest concerns we have, as things went from VGA, you know, as the old analog world or even the first IP
cameras that we talked about, until today where, you know, we as a manufacturer have cameras as high as
32 megapixels.

[Ben] Which is 8K. So if you put it into reference, I mean the VGA resolution 720p. You know, 1080p was the next evolution. Then 4K is the next evolution just like we see in our consumer media. When we're getting up into those higher resolutions you do with cameras, you can start applying this kind of technology to it, essentially, whatever my network requirement is to do a 1080p camera, I can now do a 4K by using
something like this, so I can double my resolution, on my site, with only happen to have the requirements what it would have been for 1080p before that. Does that make sense? So you can just do a lot more with a lot less because of things like this.

[James] People always forget that as the world has changed that we've evolved with technology, high-resolution cameras, there's a major impact on storage and bandwidth. Your network transmission, your switches, everything else inside your environment so by using technology like WiseStream or H.265 compression, we're able to reduce that overall amount of storage and bandwidth, producing off, you know, making it much more efficient, saving cost overall on the entire network as well as recording system.

So a couple things we wanted to touch base on, we're going to talk a little bit about some of the analytics in cameras and how we've used them and had success, but more importantly as we start talking about cameras, one of the downfalls is people look at technology and they just think a camera is a camera. I put this slide in here simply to talk about wide dynamic range because as we as people, human eyes, imagine if that door was an outside door looking outside. I would have no problem looking outside, so seeing everybody that's sitting here in the audience as well in looking outside and seeing the what, you know, the whole scene. The trees, the parking lot, the cars, whatever else is that's out there.

Cameras traditionally would have issues with that. If we were to take out our smartphone and take that same picture, we're going to end up with a very dark forefront, very washed out background. So
the idea here is saying with wide dynamic, wide dynamic technology, we're taking multiple exposures and stitching those together to camera size, to give us the perfect scene. So my laptop looks a little cleaner, but in this scene what you'd see is I can see the people sitting there, I can see the trees, the parking lot, the sidewalk, everything else that's going on. Really the purpose of this slide is to say, yeah we have great wide dynamic range, in fact, industry-leading wide dynamic range, but more importantly, what I wanted to
mention is when we start talking about video surveillance systems in general, making sure that we're picking the right cameras for the right job. I know all the time I walk into customer sites with integrators and we'll sit down with customer and they just want the cheapest, most cost-effective system there is. Well ideally we look at that and say, okay you're smiling and most kind, you know, in cases most interior cameras we can get by with just simple basic IP cameras. But I will tell you, you know, if you've got issues, what good does
this do you if somebody was to break in your facility on a Saturday and there's a lot of snow on the outside with a bright light coming in. You get this black silhouette and you have no idea who that person is. It is making sure that we're picking the right technology for the right scene, the right job, you know. If you're trying to capture a license plate in a parking lot, now wide dynamic it isn't that, but making sure that we have the right technology in place to have better success. Now it's never a guarantee but potentially having success for this, the right camera, in that entrance is going to provide success, we're gonna be able to determine who that person is, as they walked in the scene.

[Ben] Just think that goes for like a warehouse or garage, I mean you have those roll up doors and you get bright light that comes in camera washes out, can't see anything. Same principle applies there. People
unload, load things in trucks and do what they do in those environments; this is another thing that's a life saver. It could be anything, if someone says, I slipped and fell, well then bad resolution, bad video, you have no idea, but the proper camera you could go, no, you didn't you were dancing. And, you did it to yourself. 

[James] So some other things again, when we start talking about Corey mentioned analytics before so as we start looking forward we're using a lot of these analytics as we move forward. In fact, we're getting a lot of requests for these different things so now these are some analytics that are just built in and we got time right? Yeah. So built in to a majority of our X and P series cameras and beyond, but just simple things like
directional traffic or directional or direction detection, you know, enter/exit stuff. I have an application with the directional line that at a parking structure, that's down in the Twin Cities area, where the parking garage exits to the west, now imagine in the winter time there's a bright light as the sun sets coming directly into that ramp as the ramp is exiting, you know, cars are exiting that ramp.

And the idea, the reason I'm telling you this is, the building is smoke-free. You have to physically go off property to go out and smoke. So everybody leaves the property through the parking garage and goes and stands on the sidewalk. Well they walk back into the garage. So now imagine the sun's setting in the afternoon as you're leaving the building and somebody comes through that ramp. Somebody got hit. Driver didn't see them. So we could've used a camera with a directional line but as soon as somebody tripped that line, a little red light comes on. Simple as that. Now driver knows, stop, wait for the person to come and you can leave. So thinking a little differently, thinking outside the box is using simple technology to do very, very simple things.

You know, we go to loitering; here people hanging out in these areas. Objects appear, disappear, now this is a little different. We're not looking for a simple bag, but as a car was there and it disappeared, whatever the case may be. Now do you have anything to add to that?

[Ben] Did you go back to the one with the box, the enter and exit area. The number one way I see that
used is for illegal dumping in your dumpsters after hours. You can actually set that on a schedule, put it around something, somebody who's back there flips open your dumpster in the middle of the night you can have a camera trigger an output, turn on your floodlight, make a barking noise, whatever you want to do. There's a lot of ways to keep people out of a place like that. So that's always a very common thing
that we hear about.

[Johanna] And we also try to be efficient with the recording and bandwidth and everything and moving away from motion detection or motion recording and using some of these analytics to make it more efficient is very helpful. We've all seen or scrubbed video where trees are moving and we're recording and that's just dead space so using these analytics will help you be more efficient and using the storage in your system.

[James] Yeah, it's a little simple things. Like we can do advanced motion detection or we can do up to eight
different boxes. A lot of times you throw a camera on an exterior parking lot, all kinds of trees that are floating around in there. We can set up different motion boxes to eliminate those so that we're only really concerned about certain areas of the scene in generating motion. So again getting going back to even her
comment of saying, we can do things a lot more efficiently, more effectively and not have all that false positive motion like trees or whatever the case may be.

[Ben] And these features are included in the price of the product. It's not a licensing fee, it's not a returning fee.

[James] So a couple other things built in one of the things I like to mention is, you know, even there's some
simple things like face detection, now this is not, hey we're looking for facial recognition. When we start talking about analytics like that we work with third-party companies that would install a product on our camera and on the server end where I can put in my face, Ben's face and they'll actually be able to determine the difference between the two of us. Our facial detection is, is it a human, you know, the difference between a human and a vehicle. So going back to saying, you know, somebody's getting out of 
you know, somebody's driving through your parking lot at night may not be a big deal. Somebody goes through the parking lot at night and gets out of their car and starts walking towards the dumpster because
they're gonna unload something, I want to know about it. So again, you know, these are things that can make a big difference. Our cameras can automatically determine whether or not they're out of focus. People that are not active on their system or that are not using the system frequently, don't log in and don't
see that. When do you find out that your cameras are out of focus? When you had an event and you try to export video. With this feature enabled, we can physically have the camera automatically simple focus itself, without you even knowing. So just simple things like that.

[Ben] In fog detection, real quickly, I think that's important up here. So fog detection isn't just fog. The cameras see the histogram of what they see on a day-to-day basis and they learn their field of view and when you have, you got an atmospheric interference like, I don't know, blowing snow, that comes into
the image, it tries to digitally cleanse that out so you can actually see the image a lot better. So this is something, like I have covered the Upper Midwest, a seven-state territory for about seven years now. It's nine states as I'm here and some other stuff, but it's definitely one of the issues we have and it does help with it. Does it make it perfect? No, but it's tremendously better. It's one of the things built into the camera.

[James] Exactly. And now we have a new series of cameras that Corey was talking about that actually started shipping this month that include all of our advanced AI stuff. When we start looking at
that, I've been able to go back after the fact and search based on female versus male, hat versus no hat, glasses, all kinds of different parameters based on that. Talk about license plates – it could trigger that it found the plate. We're not being able to search on that plate, we're using a third-party company to actually do those analytics, but again a lot more characteristic based stuff. You know, so this is the hot rave, this is what a lot of people are talking about. I'm looking for it today on kind of a post search stuff. Again, look at all this is going to be incorporated into our AI cameras and beautiful thing about this is, when I showed the portfolio products, not every camera needs to have all of this detail. Maybe front entrances and now once you figure out who that person is, now we can track them throughout the scene using just standard IP cameras. Whatever the case may be. So again just kind of a little highlight – we talk about non AI versus AI, having advanced analytic stuff.

Another really cool feature that's built into our x-series cameras and we're seeing a lot more of is, the sound classification stuff. So we start talking about gun shot, you know, and scream being the most two common analytics that we're seeing today. This is becoming a hot topic that almost every one of the customers that I go out and see in general is taking advantage of. Primarily, one of those two analytics. We start talking about the glass break, it's common, but I think most people are still tying those into their burn system, but for us, I mean as simple as I'm talking to the K-12 education space. We're now talking about putting microphones in restrooms. Not to record audio, but to trigger based on a scream. You know, I spoke at a higher education conference, back in June or July, and I had a university tell me that from January 1 to June 1 they've had 18 reported sexual assault attempts in female restrooms. Sad part about that is, he says only about a quarter of them are actually ever reported. That tells me there's almost 80 sexual assaults, you know, almost 80, that it happened on their university. The key there is, that's a problem. We need to prevent that. I'm hearing cases of even in the K-12 space, in 3rd and 4th grades, of attempted sexual assaults today. So the fact is, is using technology to be smarter, using our technology to sense that scream and to trigger an event, you know you've got the camera on the outside of the bathroom, watching who's going in and out, so we get an event that triggers from the camera. Now somebody in the office can pull up that scream event, see who went in there and when, and be able to react based on that.

[Corey] James, want to make sure we have time for questions.

[James] Yup. So again thinking outside the box. Two slides left. So perfect timing. Awesome.

[Ben] What I kind of want to make, so we're not a proprietary end-to end-solution; our equipment does work on a lot of different video management platforms. So if you already have something in hand and you're looking to add to it or whatever, or if you need a full upgrade, you can communicate with Corey. He'll communicate with us, and we can figure out what works and what doesn't.

[James] So I mentioned the K-12 space, I was given an opportunity just recently to go and revisit some fitness chains that were based out of California. The fitness chain was using Hikvision, which one of our
competitors that was banned by the federal government. They said, you know what, we're not a federal government site, but we want to follow their guidelines. We care about cybersecurity; we want to revisit what we're doing. So this was one of the biggest things we did in their site, was A, we added sound
classifications. We find out that they were a 24/7 club that wasn't manned 24/7. So the key there was, we're putting microphones all over the facilities so if some female is working out at night and she gets attacked, we've got technology that can react immediately. You know, so they've got a monitoring service that's monitoring their video system that gets an event and they can react and dispatch police that quickly. So just some thoughts like that. Couple of other things that are built in, we're seeing, even this is really geared more toward retail analytics, but people counting and heat mapping functionality. You're smiling at me, are we done?

Ben] Yeah.

[Corey] We should open it up to questions. It can be anything that we touched on or something
other, it's something else that is security related.

[James] Hopefully we've got everyone here thinking a little different, so yeah go ahead.

[Guest] So on the subject of passwords and log ins do you guys also offer password-less log ins such as like RSA [inaudible].

[Ben] Yeah, there's significant support, there's actually a number of different ways that you can provision the cameras on your own network so you can kind of get beyond it. The reality is you're going to have to have a password in there at some point in order to get it all started, but there's a whole slew of different things you can choose from, that are more advanced as far as how you are on it, and have it set up on your network.

[Guest] Okay.

[Ben] And that's what gets us in to a lot of the big financials and stuff like that, they are like that.

[Guest] Yeah, I was just looking because we're looking at going password-less with just certain logins. 

[Ben] Yeah, when you do the initial configuration you can factor that [inaudible].

[Guest] So we're looking at and we're building a new facility and remodeling an existing one, but anyway. All we have right now is basic burglar alarm system, that means just are door sensors [inaudible]
Would there be any reason to [inaudible] traditional or new alarm system?

[James] I'll let you answer that because you're more of the burn guy.

[Corey] Yeah, I mean, well, I should say that the analytics it's not a perfect technology. It's hitting pretty good. Probably 90% plus?

[Ben] Yeah.

[Corey] I would say you probably wouldn't want to replace your intrusion detection system, your door contacts, with, you know, just a camera solution only. Maybe there could be some kind of hybrid system that you have.

[Ben] The other thing too is, I mean, it's part response too. Your burn system was tied into a central station where it's monitored, I would assume, you know, with the video surveillance you can do the same thing but, it's totally different. But that same token, there's inputs and outputs. Either your burn panel, it could go into your video surveillance system, back and forth, so you can work on the way to marry them together so they compliment each other.

[Guest] So maybe then what I need is a burn system and maybe some inputs then [inaudible].

[Corey] Yeah, exactly. Keeping in mind it's a round about way right? The camera is detecting it, it's closing and relay, that relay is tied into its own...

[Ben] Yeah, actually it's much different than using the traditional glass breakers as well.

[James] And I like the answer of what we're saying, as somebody mentioned here, more of a hybrid solution today is what we would look at it right? Which is just plastering motions everywhere and everything else now you've got a combination of technology.

[Corey] Good question.

[Guest] So if you're on H.264 right now and you add a 265, a newer style camera, does your DVR need to support that or?

[James] It does. It needs to be both sides.

[Guest] You'd need an upgrade for that?

[James] It needs to be and it depends on when we talk to the NVR it's just whatever software platform you have and almost every major VMS today now supports H.265.

[Ben] Oo, they're going to be at it by like next spring.

[Guest] And if your cameras are in 264 then it would be, depending on how old they are, one of the manufacturer had a firmware upgrade to go to that?

[James] It wouldn't typically be a firmware upgrade because it does, I mean, it would be a newer camera. -

[Ben] It's usually, with the camera-side for us it's generational. So our Wisenet 3 cameras that been out since, they were from 2013 to '17 essentially, that hardware can't support 265, but in '17 when we switched to the Wisenet 5 chip, that hardware was designed to support it. So the cameras themselves, has to be a piece of hardware that supports the technology. The reality is, there might be some stuff that is upgradeable but our stuff, for a long time has been out there with it, so if you had any of our legacy stuff or something like that, chances are you'll be able to use it.

[James] Yeah, in most cases, exactly right. The legacy stuff typically didn't support it unless it was designed to support it.

[Corey] But Lauren you have a lot of x-series cameras installed on your campuses and you're running exacq Vision. As long as you're running the latest software on exacq Vision, it does have H.265 so should work just fine.

[James] Yeah so any of those x-series, if you have the old Wisenet 3, you know that, from five years ago, those would not be supported with H.265 but all the x-series stuff would support that.

[Guest] Thank you.

[James] Any other questions? Perfect. All right. Well, thank you everyone.

[Corey] Thank you for lending us your ears. Appreciate it very much.

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