ADT 2011 Annual Report Download - page 107

areas of their premises, all via secure access from web-enabled devices. Pulse also allows customers to
create customized schedules for turning lights, thermostats and appliances on or off, and can be
programmed to perform certain functions, such as recording video and sending text messages, based on
triggering events.
Many of our residential customers may purchase security systems as a result of prompting by their
insurance carriers, which may offer lower insurance premium rates if a security system is installed or
require that a system be installed as a condition of coverage.
Tyco Security Solutions also designs and manufactures electronic security products, including
integrated video surveillance and access control systems to enable businesses to manage their security
and enhance business performance. Its global access control solutions include: integrated security
management systems for enterprise applications, access control solutions applications, alarm
management panels, door controllers, readers, keypads and cards. Its global video system solutions
include: digital video management systems, matrix switchers and controllers, digital multiplexers,
programmable cameras, monitors and liquid crystal displays. Its intrusion security products provide
advanced security products for homes and businesses ranging from burglar alarms to a full range of
security systems including alarm control panels, keypads, sensors and central station receiving
equipment used in security monitoring centers.
Customers
Tyco Security Solutions sells to residential, commercial, educational, governmental and industrial
customers. Our residential customers typically include owners of single-family homes or renters in
multi-family apartment complexes. Our commercial customers include, among others, retail businesses,
financial institutions, commercial/industrial facilities and health care facilities. Our government
customers include federal, state and local governments, defense installations, schools and universities
and mass transportation providers. In addition to advertising, direct mailings and the internet, we
market our electronic security systems and services to these customers through a direct sales force and,
with respect to certain residential customers, through an authorized dealer network. A separate sales
force services large commercial and governmental customers and focuses on key vertical markets such
as retail and banking.
Competition
The electronic security services business is highly competitive and fragmented with a number of
major firms and thousands of smaller regional and local companies. Competition is based primarily on
price in relation to quality of service. Rather than compete purely on price, we emphasize the quality
of our electronic security service, the reputation of our brands and our knowledge of our customers’
security needs. For large commercial, educational, governmental and industrial customers the
comprehensive national and/or global coverage offered by Tyco Security Solutions can also provide a
competitive advantage. We also have significantly expanded our systems integration capabilities, which
allow Tyco Security Solutions to offer comprehensive solutions to commercial customers that fully
integrate security and fire offerings into comprehensive IT networks, business operations and
management tools, and process automation and control systems.
Competition for the manufacture and sale of our security products is based on specialized product
capacity, breadth of product line, price, training and support and delivery. The principal competitors
are specialty products manufacturing companies based in the United States, with other smaller
competitors in Europe and Asia.
4 2011 Financials