Market strategy perspective from Munich

On the sidelines of the Verkada Security Summit 2025 in Munich, Euro Security held an in-depth conversation with Filip Kaliszan, co-founder and CEO of Verkada, in October. The conversation took place against the backdrop of a phase of accelerated expansion in Europe, in which Verkada is further consolidating its position as an innovative provider of cloud-based security solutions in the DACH region and beyond.

Five key points relevant to market strategy emerged from the conversation: Europe is considered a key market, whose heterogeneous country structures and strict regulation make it complex, but at the same time one of the most attractive growth markets for cloud-based security solutions. Germany acts as a compliance laboratory. Fully developed tools and certified processes give Verkada a competitive advantage that can be directly scaled to other European markets. The software-first approach leverages hardware standardisation to integrate camera, access, alarm and sensor systems and capitalise on technological advantages over hardware-centric competitors.

AI-based solutions proactively detect security incidents, reduce false alarms and minimise costs while increasing operational efficiency. Finally, Verkada guarantees market-leading ethics and trust in the DACH region through strict separation of customer data, country-specific functional control and clear demarcation from mass surveillance.

Europe as a patchwork quilt – technological opportunity rather than obstacle

Many US companies view Europe as a homogeneous market. Kaliszan emphasises: ‘In the US, many view Europe as a single market. But Europe consists of different countries, cultures and legal frameworks. You really have to understand each one.’

It quickly became clear to Verkada that technological, cultural and regulatory differences in each country had to be taken into account. Data protection, national security requirements and different integration standards make Europe complex – but at the same time open up opportunities to establish market-leading solutions at an early stage.

The company was founded in Silicon Valley in 2016 and initially focused on the US market. In 2019, it opened its first European branch in London. Further expansion was delayed by COVID, as Kaliszan was unable to meet customers and partners in person for two years.

Market dynamics: Enterprise dominates in Europe instead of SMEs

In the US, Verkada initially grew strongly in the SME segment, which was quick to adopt new technologies. In Europe, however, SMEs were more cautious, especially when it came to cloud and AI-based security solutions.

Kaliszan made it clear: ‘In Europe, large companies understand the value very quickly, especially in Germany, where compliance is so important.’

This market segmentation had a significant impact on the European expansion strategy.

Germany as a test lab: Strict rules become a competitive advantage

The German market is highly regulated. Verkada took strategic advantage of this by developing all compliance tools, technical guidelines and documentation in-house. This significantly reduces the burden on partners and customers. Kaliszan explains: “Many countries simply say: If it works in Germany, that’s proof enough for us.”

As a result, Germany became not only a sales market, but also a driver of innovation for the entire European expansion.

Cloud in physical security: from mistrust to operational efficiency

When Verkada began replacing traditional on-premise systems with cloud solutions in 2016, the company was met with scepticism – even in the US. Kaliszan describes the strategy of how pilot projects with test hardware and coverage of evaluation costs facilitate entry. ‘After a few weeks of testing, customers recognise the added value. Then they want to standardise it. The “aha” effect is very strong.’

Technological difference: software-first instead of hardware-centric

The hardware race of the last few decades – megapixels, sensors, lenses – has largely been resolved. Instead, Verkada relies on integrated platforms consisting of camera, access, alarm and environmental sensor technology, controlled via cloud software. “Cameras are now a relatively solved hardware problem. The consumer market is driving innovation through iPhones and smartphones. But no one has seriously addressed the software.‘

One trade fair visitor summed it up aptly: ’The difference is that Verkada’s AI really works,” reports Kaliszan.

European standards: integrations are mandatory, not optional

German BDS standards, EN standards and national data protection requirements pose challenges for international providers.

Verkada takes on this work itself: unauthorised functions such as facial recognition are deactivated, country-specific documentation is provided, and data sovereignty is secured both technically and organisationally. ‘In the past, manufacturers built products and left compliance to the customers. That no longer works today. We have to take the burden off – not the customers,’ Kaliszan is certain.

Proactive security through AI: from reactive to predictive

AI is transforming physical security from reactive analysis to proactive prevention. Among other things, Verkada systems detect unauthorised climbing over fences, falls, early warnings of smoke or water damage, and atypical movement patterns. “A lot of damage occurs at night. A burst pipe can cost hundreds of thousands of pounds. If a system detects and reports this before it escalates, it saves a huge amount of money,‘ says Kaliszan, summarising the threat situation.

New activity detections are only released if they work exceptionally reliably – the motto is: ’Don’t promise anything that doesn’t work in practice,” says Kaliszan.

Ethics and responsibility: No future like in China

Kaliszan emphasises that AI-supported security systems must follow clear ethical guidelines. Reducing crime must not go hand in hand with mass surveillance. Customer data is strictly separated, tracking is not carried out, and technologies are not developed for government surveillance. ‘Freedom means security – not surveillance.’

Innovation through customer dialogue

New features are continuously released via the cloud, accompanied by annual product conferences. However, direct communication with customers is even more crucial. ‘When we do what is right for our customers, our company automatically becomes better,’ says Kaliszan, assessing the dialogue with Verkada customers. Verkada thus remains fast, innovative and software-driven – with a clear focus on compliance, proactive security and ethically responsible AI solutions in Europe. [DCM]

German Flip Magazine: https://online.fliphtml5.com/fvnsg/ES_DACH-12-2025_Seite-18-21