While the words “consolidation” and “contraction” have a similar sound and are often linked, they are actually two separate conditions, as you can see in the identity/biometric industry.
- Consolidation occurs when separate entities become one. Ping Identity and ForgeRock (Ping Identity). Sagem Morpho and Motorola’s Biometric Business Unit (MorphoTrak). Digital Biometrics and Identix and Viisage and Visionics and Iridian and ComnetiX and don’t forget the ID part of Digimarc and many others (L-1 Identity Solutions).
- Contraction occurs when an existing entity becomes smaller. Hikvision’s reported layoff of 1,000 employees is a recent and relevant example.
“Ah, but Hikvision is a special case,” you may be saying. “They’re linked to human rights abuses and sanctioned by Western governments. Many identity/biometric players are not sanctioned.”
But I’m not hearing loud celebrations from these other firms.
I’ve privately heard three separate stories, one of which I just heard on Monday, involving major identity/biometric companies. All three stories involve firms that are not sanctioned. In all three cases the firms perform major business with Western governments. And all three stories involve contraction which would have been unthinkable a mere five years ago.
Not too long ago I compiled a list of four significant events that positively impacted the identity/biometric industry. That list included 9/11, the Boston Marathon bombings, Apple’s Touch ID, and COVID.
I’m starting to wonder whether that last event was, in the long term, a net positive or a net negative.
(Tumbleweed image public domain)
Bredemarket 