Honeywell makes move to capture business through SIs

Honeywell makes move to capture business through SIs

 
By Bill Lydon - Editor
 
Systems Integrator Program Update from HUG 2010
 
At the recent Honeywell Users Group (HUG) conference, I received an update on Honeywell’s Systems Integrator Program from Anand Krishna, Marketing Director Honeywell Process Solutions (HPS) Honeywell Field Solutions, and Scott Perrin, Americas Leader, Systems Integrators. HPS is pursuing relationships with independent system integrators (SIs) to “capture incremental business” for smaller systems in applications including specialty chemicals, food & beverage, and pharmaceuticals. Krishna explained that their leader Roger Fradin, President and CEO of Automation and Control Solutions (ACS), understands distribution very well and challenged HPS to pursue adjacent markets to capture business in less complex projects. HPS is structured to manage and implement very large projects, and as such, their large operations team and other overhead make it difficult to compete on smaller projects.
 
System integrators have access to products termed, System Integrator Modular Systems (SIMS). SIMS includes the Experion LS, HS, HC900, and Master Logic products. These products do have size limitations. The Experion LS, for example, is limited to approximately 1,200 points and about 8,000 SCADA tags. The traditional Honeywell Process Solutions offices also have access to these products.
 
Honeywell MasterLogic
The MasterLogic line of programmable logic controllers (PLCs) would seem to give system integrators an interesting PLC alternative for projects. The MasterLogic supports the IEC-61131-3 programming languages and a number of important features including large memory (10MB Program, 2MB System, 2MB Data, 16MB Flash Memory), optional redundancy, Profibus DP, DeviceNet, MODBUS (Ethernet & Serial), Ethernet, Fiber-optic (100MBPS), and serial (RS232/RS422) communications.
 
The Experion HS and Experion LS products are designed for systems integrators - they are easier to use and “priced for these additional markets.” The systems still leverage the power of Experion with features including the control execution environment, development tools, algorithms, alarming, trending, and batch features. The Experion HS is a software product for HMI and SCADA applications. The Experion LS control system is a small distributed control system (DCS) based on Honeywell’s flagship DCS.
 
Scott Perrin explained that appropriate business for system integrators in the program are defined by the intersection of three criteria on a grid, namely, geographic reach, domain knowledge (example: boilers), and vertical markets served. “The HPS capability with respect to that grid is on the larger projects and large geographical reach,” said Perrin. “We are not looking to sign integrators up to do refining projects...” He characterized system integrator opportunities as fine chemicals, food, packaged goods, water/waste water, and others adjacent markets that the smaller modular systems fit into.
 
There are currently six system integrators in the Americas program and it is ramping up to about 30 qualified system integrators. Field channel mangers that work with distributors will also manage system integrator relationships. The system integrators purchase the SIMS products directly from Honeywell. Perrin emphasized, “We want to own those relationships directly…our competitors go through channels so can we differentiate with a direct mode.” The integrators will purchase instrumentation through distribution. The system integrators will eventually have access to other Honeywell offerings such as security and life safety products.
 
Scott Perrin sums up the strength of the Honeywell system integrators program as based on four pillars: unique products, portfolio of products, competitive price structure, and sales and marketing collaboration with system integrators.
 
Thoughts & Comments
The Honeywell system integrator program has been developing over time. Since Scott Perrin founded a system integration company, he is an excellent addition to Honeywell.
 
PLC vendors are pushing into process control applications so this is an offensive and defensive move by Honeywell. This also brings to mind the debate over DCS vs. PLC. In 2008, I conducted an interview on this topic
 
This is a major strategy reported by Norm Gilsdorf, President of the Honeywell Process Solutions, on Investors Day, June 16, 2010, where he described this as a way to grow into adjacent markets - by expanding sales channels through system integrators.   Gilsdorf noted this channel expansion is coupled with expanding product investment into smaller hybrid systems.
 
I believe the winners will be the users who ultimately receive more choices and features.