| The Source for Video Surveillance | Become an IPVM PRO Member |
Norbain CEO - Recession Forcing Radical Changes
by John Honovich, IPVM posted on Dec 25, 2008 About John Contact JohnIn the best security executive interview I have ever seen, Alun John, the CEO of leading UK manufacturer, Norbain, examines the severe impact of the recession on the industry.
I strongly encourage you to read the extensive interview in its entirety.
Focused in the UK, Norbain is a very large manufacturer/distributor (over $175M USD revenue). By comparison: For US readers, Norbain is equivalent in reach to Pelco and Northern Video combined. Or for Asian readers, Norbain is similar in size and power to Hikvision.
Here are some key quotes:
- "The idea that any industry is not going to be affected by the world crisis is stupid."
- "We're seeing a lot of downward pressures for people to get things cheaper."
- "We are aggressively launching a new low cost product range called Xeno"
- "We're scaling back our plans for the future and our expectations for the market."
- "The mid market for analogue CCTV I do not see changing rapidly"
- On IP cameras: "The reality is there's going be a lot less built to stick [IP cameras] into in two or three years time."
Again, I strongly encourage you to read the extensive interview as it is an excellent and thorough examination of the state of the security industry.
The Industry Needs His Honesty
I am thrilled that a CEO has publicly delivered this truth. In a world where most CEOs hide and distort, this is what we need now - a frank and honest assesment of what is happening.
It's Not Just the Traditional Players
Amongst the IP video providers, the immediate reaction is that this is an issue simply for the legacy CCTV players.
I disagree and think the entire industry is being affected. Notice last week, Axis' stunning admission of a weakening market.
The High End and Expensive Products Are Most at Risk
Economically, this is obvious. However, our industry's focus on IP is making us lose sight of this fundamental issue. With far less new construction, IP growth has to slow significantly.
Scale Back and Offer Lower Cost Solutions
This is in line with what I have been recommending in the Industry Guide. Everyone has to accept this new world and focus on providing greater value at lower cost. Delaying or ignoring this will only cause more problems.
It's too bad this interview was released on Christmas Eve, as most people will not see it. However, do share and let's discuss.
Most Recent Industry Reports
How to Measure IR Illumination on Feb 16, 2012
Using IR for night time surveillance is a popular choice. The added non visible light can improve image quality when ambient street or visible lighting is absent. However, adding the right amount o...
Top Surveillance Storage Manufacturers on Feb 13, 2012
Determining the right manufacturer to provide storage for your surveillance system is a fundamental, yet complicated choice. The choice significantly impacts cost, reliability and scalability of th...
Favorite Surveillance Storage Type on Feb 06, 2012
When selecting storage for an IP surveillance system, there are four standard options: internal / direct-attached storage (DAS), network-attached storage (NAS), storage area networks (SAN), and on-...
S2 Enters Surveillance Market on Feb 03, 2012
Convergence between access control and video is a growing trend. While historically, independent systems from different vendors would be intergrated together, recently, manufacturers are developing...
Estimating IP Camera Cabling Costs on Jan 30, 2012
Cabling is a fundamental, yet often overlooked, component of any surveillance project. Indeed, often estimating cabling costs can be more difficult than camera pricing as cabling frequently faces d...
Calling Out Manufacturer Failures on Jan 24, 2012
Serious problems with surveillance products are commonplace - from cameras dying out of the box to significant VMS bugs causing unstable systems. These problems cause real pain for both integrators...
Storage: Redundancy / RAID Statistics on Jan 23, 2012
Increasingly, users expect their data will never be lost. From using web apps like Google mail to storing files with services like Dropbox, it is easier than ever to keep your data forever. However...
CBR vs VBR: Surveillance Streaming on Jan 18, 2012
How you stream video has a major impact on quality and bandwidth. Typically, when people think streaming or encoding, CODECs such as H.264, MPEG-4, etc come to mind. However, regardless of the CODE...
Megapixel vs VSaaS on Jan 16, 2012
The surveillance industry's most powerful driving force, megapixel cameras, is virtually incompatible with the industry's biggest buzzword - VSaaS. Indeed, looking through the industry's most well ...
The Axis Corruption Cruise Returns on Jan 13, 2012
Last year, we examined how Axis paid for an expensive cruise for A&Es/security consultants and their wives, expressing ethical concerns. Unfortunately, this year, Axis is running yet anoth...