Loihde is a bit of a question mark regarding overall growth, as the current Loihde (group) has been built over the years through acquisitions.
How well can the group level invest in growth in individual business areas if a really good growth prospect is found? This relates to acquisitions; if the management of an acquired company remains within Loihde, how well do the former management’s and Loihde’s goals align regarding growth rate and scale?
I believe that the prerequisites for investing in new prospects are fundamentally quite good. Historically, the group has seemed somewhat slow-moving, but in my opinion, the organizational streamlining measures taken in recent years have also created better conditions for faster actions, and this has also been one of the goals of these measures. For example, in the Security Business, there could now be such opportunities, and recently, for instance, the company has been active in communicating about drone defense systems, which could bring new growth opportunities. It might not happen, but this demonstrates that Loihde is alert to new possibilities, and in this respect, I believe the company is a pioneer in physical security.
It is almost impossible to assess the conflict of interest you describe from outside the company, but I do not currently see this as a major risk. Many of the current key personnel have joined the company through acquisitions. Several of these individuals who came to the company through acquisitions also have significant Loihde holdings. As an example of recent acquisitions, Jarno Mäki (who joined with the Onrego acquisition), who is responsible for the Cybersecurity, Cloud, and Connections business, seems like a very growth-oriented leader and precisely the kind of profile I believe Loihde needs.
To what extent are Loihde’s security services standardized and available “off the shelf” when a customer requests a quote or even delivery? Could you provide an example of an order-delivery-implementation timeline and process?
My understanding is that security services are largely very standardized in many respects, but this also always depends on the customer and their size. Standardization comes from the fact that the equipment is largely always the same. In the security business, the resale of equipment plays a very significant role in revenue. For example, locking a certain office building would certainly be a very largely standard process in many respects, but it also always requires planning together with the customer.
However, the added value brought by Loihde comes more to the fore precisely in these non-standard projects. If we take the example of Keravan Energia, where the customer has Loihde’s services including NOC 24/7, corporate networks, CSOC 24/7, critical industrial environment monitoring, camera surveillance, and time tracking. In such a customer relationship, Loihde can provide completely different added value with its comprehensive security offering. Here, the consulting work and planning itself play a significant role, as the customer’s security needs must be thoroughly investigated. In addition, several continuous services are included, which Loihde typically produces with its existing continuous services infrastructure (e.g., Cybersecurity Monitoring Center CSOC).
I cannot provide an exact timeline and process schedule. Would someone from within the company like to comment on this in more detail if they are following the discussion? I can also get back to this later.
Does Loihde’s selection include services for housing companies, if, for example, a housing cooperative wants a comprehensive digital security service and surveillance?
These services are indeed available in Loihde’s selection, but to my understanding, the company has not made such a comprehensive security offering specifically for housing cooperatives. Often, housing cooperatives probably balk at the price, but it would certainly be possible. Among managed services for housing companies, Key Management Service is, to my understanding, a key service. It is also good to note that Loihde does not offer guard services; for example, in the management of camera surveillance systems, Loihde itself monitors the surveillance camera network, and partners like Securitas monitor the premises themselves.
Could you explain in very simple terms, with an example, how Loihde’s IT services can support physical security solutions, and is there an “off-the-shelf” product solution or at least a somewhat repeatable solution model that would offer more cost-effectiveness than thorough customizations for each customer case?
In Data, Digital & AI services, it is practically very largely about customized services. On the data side, data platforms also play a key role (e.g., Microsoft or SAS), which brings productization to the business. In cloud services, which are part of the Cybersecurity, Cloud & Networks business area, support for security services is clearer, as modern security systems that are connected to the network are typically built in a cloud environment today. However, it is good to note that Loihde’s IT service business is based largely on customized solutions, meaning this is where the company can generate the most value. In addition, a significant part of the IT service business involves providing experts/teams as part of customers’ IT development teams. All in all, one could say that the very clear support and joint offering of IT services for physical security services remain quite small. The most significant synergy, in my estimation, comes from the fact that customers are often the same. As security systems become digitalized, the purchasing personnel for both these services in customer organizations will also communicate more and more with each other. However, IT services and physical security services are in many respects very different businesses, and I believe that Data, Digital & AI could be very well separated at the right price, and I do not see it as an impossible idea. Perhaps now is not the most opportune time to sell, as valuations are so low. Especially in the data & AI business, there should also be good growth prospects.
Of course, a very large part of the pages covers the IT services and security markets, but the company was also discussed in depth. At least there’s something for AI to read 