Changing Of The ‘Guard’ – Honeywell Grabs Carrier’s Security Business

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Changing Of The ‘Guard’ – Honeywell Grabs Carrier’s Security Business

‘OnGuard’, that is. The recent announcement of Honeywell’s move to purchase Carrier’s LenelS2, Onity and Supra product lines rocked the building security world. Carrier’s intent to sell off its security products – and separately divest its remaining fire and safety businesses – was not itself a surprise to the industry, having been widely publicized. Yet, Honeywell being the ultimate suitor might have caught some unaware. Let’s take a closer look:

  • First off, Carrier’s security business is rather mature, with a substantial installed base. The firm has many customers using various generations of its technology, from its legacy OnGuard business and its S2 acquisition. The steady revenue stream, as well as the opportunity for Honeywell to advance and cross-sell to these organizations, is appealing. LenelS2 has a strong presence within the government, education, finance and healthcare sectors – certainly an enticing mix – and the balance of access equipment in the deal, Ontic and Supra, provide an additional foothold within hospitality and real estate businesses.

  • Honeywell already has a variety of commercial and institutional security and safety products – and is due to advance and rationalize its portfolio. This acquisition will mandate that effort take place to an even greater degree. Another option, at least for the near term, may be for Honeywell to operate LenelS2 as an independent subsidiary, akin to what it has done with Tridium, and combine in some of its commercial business. Over the past five years, Honeywell has been on a mission to reinvent itself as a software business – and LenelS2 is indeed more software-centric, primarily choosing to partner and resell equipment. It will be interesting to see how the firm manages what amounts to a competitive amalgamation.

  • Another interesting play for Honeywell is how it can create more synergies between physical and digital security. The firm recently acquired SCADAfence, a specialist in OT (operational technology) cybersecurity, which became the foundation for its Cybersecurity Watch and Insights offerings – complementing its AMIR support solution. Security teams will increasingly need to coordinate efforts, even merge, into more fully shared SOCs (security operations centres). This is where Honeywell’s higher end Command and Control Suite and its foundational EBI (Enterprise Business Integrator) capabilities offer customers a broader solution – especially for enterprises with more complex needs or large asset portfolios.


The key for either a separate or an entirely combined entity will be for Honeywell to invest in the business and accelerate on innovating for the next generation of security needs – one that will be increasingly more open, cloud-based, mobile-forward and integrated with other building and enterprise systems. The somewhat staid business of security has recently begun to shift much faster into the digital realm, with further disruption on the horizon from the broader IT vendor landscape.

The security market continues to consolidate at the high end, with some firms targeting deals that build out their portfolios of capabilities. Many, however, have been in the mode of aggregation – a tactic used more than two decades ago when enterprise IT consolidated client server solutions as it ushered in the then emerging web and cloud service market economy. This wave of consolidation in the security market heralds that a next wave of innovation is now on its way. Let’s hope the old guard participates, and even helps set the course.

Next on the docket to land with a new owner is Bosch’s security product line.

Learn more about Honeywell, Carrier LenelS2 and Bosch's capabilities, along with other leading security vendor offerings, in the Verdantix Green Quadrant: Integrated Smart Building Security Software 2023.

Any thoughts or feedback on this blog? Get in touch with us by emailing [email protected].

Sandy Rogers

Principal Analyst

Sandy is a Principal Analyst in the Verdantix Smart Buildings practice. Her current research agenda focuses on the intersection of IT and OT digital strategies and technologies, including the IoT landscape. Sandy’s experience prior to joining Verdantix includes work as a research director and technology industry analyst in IT service technologies and operations at Forrester, and at IDC, where she covered software, vertical markets and web services. Sandy has worked in competitive research and strategy consulting at Fuld & Company and developed research for thought-leadership at Deloitte. She holds a Business Degree in Marketing and Management Science from the University of Rhode Island.