1. Tech Data’s 2010 Physical Security Playbook Enablement for Networking Resellers

2. Tech Data Confidential 2 Physical Security powered by: Understanding the Market Vendor Connections Training Resources Solutions Central Selling Support Fast-Path Playbook for Physical Security

3. Tech Data Confidential 3 Understanding the Physical Security Market

4. Tech Data Confidential 4 Understanding the Market: Market Overview The Surveillance Camera Market –Overall U.S. camera market is approximately $7B (grew 2% in 2009) IP cameras $700M market: showed +18% growth in 2009; expected to grow 25% in 2010 –Analog is still 65-70% of the total market (forecasted to shift to 50% by 2012) Video Surveillance Market 2008 Video Surveillance Market 2012/13

5. Tech Data Confidential 5 Understanding the Market: Market Overview Trends for 2010 –Growth in megapixel and HD cameras 1MB & 2MB megapixel cameras will be 75% of IP market in 2010 H.264 compression to be widely adopted as a result –Standardization & Interoperability Incorporating surveillance components into an IT ecosystem Industry forums are developing global standards for the interface of IP- based physical security products Open Network Video Interface Forum (ONVIF) Physical Security Interoperability Alliance (PSIA)

6. Tech Data Confidential 6 Understanding the Market: Reseller Benefits Leverage Your Expertise –You already understand Networking solutions (switching, routing, wireless, PoE) –Let our team of experts in the Physical Security SBU help you configure a system, and help with placement and other security considerations Your Customers –As the market moves from analog to digital cameras, responsibility for surveillance systems is shifting from company’s Security staff to their IT staff You already have these relationships Margins –Resellers can enjoy 10-20% margins on hardware alone Sources: IMS Research’s Security & Fire News, various months

7. Tech Data Confidential 7 Understanding the Market: Reseller Benefits Surveillance Cameras are Only 20% of the Opportunity! –Other components of a surveillance solution include: Storage Servers Video Management Software Accessories (lenses) Power Supplies (including PoE) Racks Wiring

8. Tech Data Confidential 8 Understanding the Market: The IT Reseller Advantage Your Competitors - Legacy Security Integrators –Only know analog cameras and wired solutions –Do NOT know switching, routing, IP addressing, software and storage, etc. –Most are resistant to the industry change from analog to digital cameras –They only know 20% of the IP solution… You Already Know 80% of the Solution! –You possess the knowledge to add another device to the network, load the software and provide a storage solution –IT resellers only need to learn the basics of surveillance, i.e., camera placement, lenses, mounting solutions. IT Resellers Have the Advantage Sources: IMS Research’s Security & Fire News, various months

9. Tech Data Confidential 9 Understanding the Market: Key Verticals Education Federal, State & Local Government –Traffic Monitoring Transportation –Rail, Airports, Ports Manufacturing/Industrial Banking & Finance Utilities Healthcare

10. Tech Data Confidential 10 Understanding the Market: Components of a Physical Security Solution The Solution –Network video (also called IP-based video surveillance or IP- Surveillance) uses a wired or wireless IP network as the backbone for transporting digital video, audio and other data Allows video to be monitored and recorded from anywhere on the network With Power over Ethernet (PoE) technology, the network can also be used to carry power to network video products Core Components –Network camera –Network –Server and storage –Video management software –Video encoder (only needed if connecting analog cameras to the network) –Other components - accessories, i.e., camera housings, PoE midspans, active splitters

11. Tech Data Confidential 11 Understanding the Market: Core Components 0 0 Source: Axis Communications’ Technical Guide to Network Video, 2006-2009.

12. Tech Data Confidential 12 Understanding the Market: Benefits of an IP Solution vs. Analog Remote Accessibility – Network cameras can be configured and accessed remotely, enabling multiple, authorized users to view live and recorded video at any time and from virtually any networked location in the world High Image Quality – High image quality is essential to clearly capture an incident in progress and identify persons or objects involved – Progressive scan, megapixel and HD technology Better image quality and higher resolution than an analog CCTV camera – Image quality can also be more easily retained Analog systems that use a DVR as the recording medium, requires the conversion of the analog signal to digital, and then back to analog for transportation  Only then are the analog signals digitized for recording  Captured images are degraded with every conversion between analog and digital formats and with the cabling distance o The further the analog video signals travel, the weaker they become. – Fully digital IP-Surveillance system images are digitized only once

13. Tech Data Confidential 13 Understanding the Market: Benefits of an IP Solution vs. Analog Event Management and Intelligent Video – There is often too much video recorded and lack of time to properly analyze it; network cameras with built-in intelligence or analytics take care of this problem Reduce the amount of uninteresting recordings Enabling programmed responses:  Video motion detection  Audio detection alarm  Active tampering alarm  I/O (input/output) connections  Alarm and event management functionalities – These functionalities are not always available in an analog system Capability may reside on the DVR – IP cameras have the capability to constantly analyze inputs to detect an event and to automatically respond to an event with actions such as video recording and sending alarm notifications For example, we have several customers that use event management software to notify business owners of activities in their businesses after hours.

14. Tech Data Confidential 14 Understanding the Market: Benefits of an IP Solution vs. Analog Easy, Future-Proof Integration – Based on open standards; IP can be easily integrated with computer and Ethernet-based information systems, audio or security systems and other digital devices Scalability and Flexibility – Network video system can grow with a user’s needs – Provides a means for many network cameras to share the same wired or wireless network for communicating data Any number of network video products can be added to the system without significant or costly changes to the network infrastructure  This is not the case with an analog system (where a dedicated coaxial cable must run directly from each camera to a viewing station)

15. Tech Data Confidential 15 Understanding the Market: Benefits of an IP Solution vs. Analog Cost-Effectiveness – Lower TCO – IP network infrastructure is often already in place and used for other applications within an organization Network video applications can piggyback off the existing infrastructure – IP-based networks and wireless options less expensive alternatives than traditional coaxial and fiber cabling – Digital video streams can be routed around the world using a variety of interoperable infrastructure – Management and equipment costs are also lower Back-end applications and storage run on industry standard, open systems-based servers (not on proprietary hardware such as a DVR in the case of an analog CCTV system) – Power over Ethernet technology enables networked devices to receive power from a PoE-enabled switch or midspan through the same Ethernet cable that transports data (video) Provides substantial savings in installation costs and can increase the reliability of the system

16. Tech Data Confidential 16 Understanding the Market: Complementary Technologies Media Conversion – Copper-to-fiber media conversion products for IP video surveillance available – Enables the conversion between disparate media types possible Media conversion is a cost-effective way to improve bandwidth – Benefits of fiber Highly secure; difficult to tamper with IP video in a copper UTP network is limited to ~100 meters; copper-to-fiber media conversion media converters enable you to extend coverage to up to 10km Fiber is immune to electrical interference (from fluorescent lighting, card access door strikes, outdoor lighting systems) and RFI interference

17. Tech Data Confidential 17 Sources for Understanding the Market IMS Research’s Security & Fire News, various months. Charts: Lusax Security Informatics, Key Success Factors to Becoming a World-Class Preferred IP Security Integrator presentation, October 14, 2009. Axis Communications’ Technical Guide to Network Video, 2006-2009. Source: IMS Research’s Security & Fire News, various months

18. The Difference In Distribution