Matrix Systems, a well-established provider of access control solutions, has announced a strategic restructuring of its business operations. The company is dividing into two distinct business units: Frontier and Xentry Systems Integration. This significant move aims to sharpen the company’s market focus and leverage its existing strengths in technology, personnel, and customer relationships. Frontier will concentrate on developing and delivering Matrix Systems’ access control management platform, including the upcoming Frontier Integrated Platform, an integrated enterprise video and access solution slated for launch later this year. Xentry Systems Integration, on the other hand, will specialize in providing expert security integration services to clients located in the Great Lakes region and southern Florida.
According to Holly Tsourides, CEO of Matrix Systems, this strategic shift is the result of a thorough planning process initiated after she joined the company in April of the previous year. The objective was to identify avenues for business growth. Tsourides emphasized that Matrix Systems possesses “great natural resources,” specifically highlighting the company’s experienced employees, loyal customer base, and robust technology.
Tsourides explained that the previous business model, which involved direct sales and servicing of the Frontier platform, was inadvertently restricting the full potential of these resources. She noted the industry’s preference for clear market strategies and go-to-market approaches, an area where Matrix Systems was previously less defined. By separating into Frontier and Xentry Systems Integration, Matrix Systems aims to establish a clearer market presence and unlock new opportunities, including building a strong channel partner network.
The transition is planned to be rolled out carefully. Over a three-month period, Matrix Systems will engage in detailed discussions with their existing customers to thoroughly explain the implications and benefits of this structural change. The official split into Frontier and Xentry Systems Integration is scheduled to take effect on April 1st. Matrix Systems will remain the overarching corporate entity, with Frontier and Xentry operating as distinct brands within the group.
Historically, service work has been a substantial revenue contributor for Matrix Systems, primarily linked to the Frontier product line. The establishment of Xentry Systems Integration is designed to overcome the limitations of this historical association. Tsourides pointed out that their service teams were often on client sites, servicing access control systems comprehensively, yet not extending their expertise to adjacent security areas like video surveillance. In today’s integrated security landscape, this approach is no longer optimal. Xentry Systems Integration, while a newly formed brand, benefits from a solid foundation of existing business, inheriting the responsibility for servicing Matrix Systems’ established customer base within its defined geographic areas.
Currently, Matrix Systems has no plans to expand the geographic footprint of Xentry Systems Integration beyond the Great Lakes and southern Florida regions. Tsourides articulated that the primary objective for Xentry is to deepen client relationships within these regions, broadening service offerings beyond access control to encompass video surveillance, intrusion detection, and the full spectrum of clients’ physical security requirements.
A crucial driver for creating separate divisions, as Tsourides further clarified, is to prevent potential conflicts with channel partners who choose to market the Frontier platform. The division ensures market clarity and channel integrity. Xentry Systems Integration’s defined service area (Great Lakes and southern Florida) and the commitment to no geographic expansion at this time, reinforces this integrity. Matrix Systems intends to proactively transition customers outside of Xentry’s direct service areas to channel partners, underscoring their commitment to building strong channel relationships. This customer handover to channel partners is presented as a tangible demonstration of Matrix Systems’ dedication to a channel-centric model.
While Matrix Systems serves a diverse range of vertical markets, Tsourides highlighted a specific strategic focus on expanding their presence in the healthcare sector. This expansion strategy involves two key approaches: first, promoting more specialized healthcare-specific technologies to their current healthcare clientele, and second, leveraging this enhanced product suite to attract and acquire new customers within the healthcare vertical.
Looking towards the future, Tsourides emphasized that “long-term growth” is the ultimate objective. She recognized Frontier as a “fantastic asset,” but acknowledged its growth potential has been constrained by relying solely on direct sales. The strategic move to establish a national channel for Frontier, alongside the focused service offerings of Xentry Systems Integration, is projected to be a catalyst for substantial growth for Matrix Systems in the coming years, particularly looking ahead to 2015 and 2016.
