Hikvision Dealer Losing "Hundreds Of Thousands" In Orders

JH
John Honovich
Jul 25, 2018
IPVM

As part of Hikvision's defense against the House bill, they have brought out a US dealer in support. 

Chris Nickelson, owner of NexGen Integration, declared:

 

Losing such orders is certainly believable, though NexGen appears small (e.g., LinkedIn only lists 1 employee - Nickelson himself).

It is an interesting defensive strategy. On the one hand, generally, Hikvision likes to portray that things are great and all of this is just irrelevant noise. On the other hand, it is only reasonable that a US government ban added to Hikvision's Chinese government ownership would cause lost business.

In that same article, Nickelson emphasized:

Somebody still needs to show me that there’s any real meat and potatoes behind any accusations that have been made towards Hikvision

Worth noting, Nickelson deployed numerous Hikvision IP cameras on a US military base that were later found to have a magic string backdoor.

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MM
Michael Miller
Jul 25, 2018

Lots of Genetec ALPR readers on his site.  Wonder how he feels about the Genetec charging double licenses for Hik products. 

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UI
Undisclosed Integrator #6
Jul 25, 2018

Double the markup for him.  Win Win. 

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UI
Undisclosed Integrator #1
Jul 25, 2018

Somebody still needs to show me that there’s any real meat and potatoes behind any accusations that have been made towards Hikvision..

Thank you for your honest candid response. We (as a top level dealer also) are awaiting the same 'Meat and Potatoes' that no one has been able to provide, ever, and furthermore jealous accersions from competing dealers mean nothing.

Worth noting, Nickelson deployed numerous Hikvision IP cameras on a US military base that were later found to have a magic string backdoor.

OK, installed...this does not in any way mean that these cameras did anything or were connected to any path that even 'could' see the Internet so this is a moot point.

And even if they were connected where is one tidbit of proof Hikvision corporate or any entity connected to China or the Chinese government has ever connected to any Hikvision camera on a military base or otherwise?

It is easy to point fingers at Hikvision, but three are pointing to yourself....

 

 

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Bas Poiesz
Jul 25, 2018

Agreed. Some months ago I made the point that the safety of the network was the defining part of the install, not the fw in the camera. The replies given stated that doing those things for a network was too much work and no one would do it.

A few months down the line EU Law makes sure you have to spend time and energy on a good network.

If your network and software (Genetec) are good, there is nothing to be worried about.

The Hik block is purely political, not technial.

 

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UM
Undisclosed Manufacturer #5
Jul 25, 2018

Funny that the only documented hack involved Genetec and Axis at the Republican convention in Baltimore.

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U
Undisclosed #3
Jul 25, 2018

That was ultimately an exploit of Windows, not the Genetec software (though Genetec certainly could have done more to force changing the defaults Windows credentials).

Genetec and Axis have both been far more forthright in addressing security issues, and not trying to hide behind claims of being "attacked" or targeted by IPVM, or other entities. Compare that to Hikvision's "Special Bulletins" that try to spin the issue, or their use of Chuck Davis as a hollow figurehead offering no real new or unique perspectives on cyber security.

In that instance, Genetec could have easily tried to paint themselves as victimized and maligned, but they avoided that approach and took a more level response.

 

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JH
John Honovich
Jul 25, 2018
IPVM

Dear Hikvision Employee, you really are that ignorant of Dahua and Hikvision hacks?

(1) Dahua is #1 in getting hacked - Dahua Recorders Mass Hacked

(2) Hikvision is #2, e.g., thousands of Hikvision IP cameras were hacked, something we documented in our Hacked Hikvision IP Camera Map USA And Europe

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John Day
Jul 25, 2018
LMN Software Corp

That's odd... I seem to recall seeing video posted on line of hundreds (thousands?) of HIK vision cameras.. Would that qualify as a "documented hack"?

Now if I could only remember which site that was on....

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JH
John Honovich
Jul 25, 2018
IPVM

OK, installed...this does not in any way mean that these cameras did anything or were connected to any path that even 'could' see the Internet so this is a moot point.

No, that's wrong. NexGen themselves, in Hikvision's own 2014 press release said:

Also, in the same press release, Nickelson boasted about them passing government certification:

"Very few products and systems, past or present, carry this elite designation and meet the requirements of the RMF (and, previously, DIACAP) certification processes," affirmed Chris Nickelson, co-owner of NexGen.

And yet, the magic string backdoor was there the entire time, undetected.

If that is not 'meat and potatoes' for him or you, nothing will be.

We covered this here: Chinese Government Hikvision Surveillance System On US Government Network

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U
Undisclosed #3
Jul 25, 2018

OK, installed...this does not in any way mean that these cameras did anything or were connected to any path that even 'could' see the Internet so this is a moot point.

I've written and deleted a few responses to your comment. I will just say this, you are wasting your money on an IPVM subscription if you are not reading and comprehending the materials published regarding the threats and risks associated with Hikvision products. 

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John Day
Jul 25, 2018
LMN Software Corp

I'm stunned that we'd even be having this conversation.

A vulnerability can allow access to a well defended network. The basic premise of network security is called "Defense in Depth". It requires each portion of the network to be defended to the greatest extent possible. Just because the "security professional" doesn't know how to secure a network doesn't mean that the manufacturer should also get a free pass.

Since security networks almost always contain network drops outside the security perimeter, the security of these networks present risks that can't be mitigated at a firewall on the internet connection. We should be discussing how to increase network security not defending manufacturers that don't understand network security.

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UM
Undisclosed Manufacturer #8
Jul 25, 2018

Well said John. Another principle of network / information security is to assume breach. The attacker may already have some undetected access to your network, may have been able to corrupt an employee who has some limited access, or may be able to trick an honest employee into bridging access (spear phishing is increasingly common). Having equipment on your network that is easily coopted by an attacker is a big liability, even if that equipment is not directly reachable from the internet.

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Bas Poiesz
Jul 26, 2018

Just because the "security professional" doesn't know how to secure a network doesn't mean that the manufacturer should also get a free pass.

Instead of focusing on the device, why not have more demands for the network and the professional installing it. Would you allow an amateur to fix the brakes on your car? Kick out the trunkslammers and demand more. That's why the GDPR set of laws is so good, it's moving the market in the right direction.

I honestly don't see why I get so many disagree votes on my comment.

What if I was to offer you a software for a few hunderd bucks. It requires 2-3 updates a month and you need to buy a decent firewall too. Also an antivirus is a must. If you google the name of the software and add 'leak' you get millions of results.

Also, ransomware can be installed on it and many cases of this have been documented. Are you interested?

If you didn't guess so already, I'm talking about Microsoft Windows. Hundreds of millions of users. Any company knows 'just windows' is not good enough. You need to build and maintain a wall of software programs around is just to use it. And yes update it very regularly.

That's just for a simple PC in an office building! But the security of your building can be done by the man in van who just makes sure you can view the cameras on your smartphone? It's pretty laughable. But hey let's blame the manufacturer instead of the so called professional installing it. After all, that's what we do with Microsoft right?

And John, I am not talking about the camera being Chinese or not. This goes for any camera built by any company from any country. Please don't make it about that.

 

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UI
Undisclosed Integrator #10
Jul 26, 2018

Would you allow an amateur to fix the brakes on your car? Kick out the trunkslammers and demand more.

Jonathan, do you not see that trunkslammers are almost invariably Hikua, LTS, or some other OEM of Hikua?  The two are inextricably linked.  There is no Hikvision without trunkslammers buying cameras on Amazon or Alibaba for $100. Hikvision has shown no interest in controlling the channel to prevent this.  In fact the constant ADI sales and endcap status at ADI virtually guarantees they will remain trunkslammer grade.

Nearly all of the IPVM surveys on popular brands show Hikvision is immensely popular due to price and quality that is not embarrassing.  When those are the defining traits of the product how could it not be trunkslammer product #1?

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Bas Poiesz
Jul 26, 2018

If the cheapest is what you want, there a cheaper options.

Dahua is cheaper. Also, Tiandy Vivotek and Kedacom are cheaper options.
All real brands, just see the link.

Hikvision makes a cheaper high quality solution when compared to the more traditional brand.

It's not just the trunkslammer buying it. Or would you say most IPVM readers are trunkslammers, since the brand is so populair in the IPVM survey?

My point is that securing any cctv installation, of any brand, requires a skilled installer. That should not be an option, it should be mandatory.

No company allows a trunkslammer to do their network security. No company allows the maintanance of their company cars to be done by a trunkslammer.

Requiring more from the installers would greatly benefit the business, I like to think most professionals in the security business would agree wholeheartedly.

We just need some help from legislation to make it a reality. Without regulation there is too much room for the trunkslammer selling tiandy/kedacom/dahua or even the more expensive Hikvision option.

 

 

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JH
John Honovich
Jul 26, 2018
IPVM

Dahua is cheaper. Also, Tiandy Vivotek and Kedacom are cheaper options

Jonathan, in the US, the difference is distribution and sales support. Hikvision has a massive amount of people and money to spend. Dahua is just a fraction of that. Vivotek is a fraction of Dahua. Tiandy and Kedacom have no local support and are effectively non-existent. You left out Uniview and they are now the #3 Chinese branded offering in the US but have no chance of getting close to Hikvision because they have no US sales nor support people.

Also, in the US, do to Hikvision's nearly non-stop sales, they are regularly less expensive than Vivotek and close to or similar in price as Dahua.

The situation in Europe, of course, may be different. What are you seeing for those brands where you are?

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Bas Poiesz
Jul 26, 2018

Hikvision is definitely in the low end of pricing, but not the lowest.
For the real cheap installs people choose cheaper brands.

The reason Hik is doing well here (as far as we can determine) is pretty simple. The price quality ratio is great. If you pay a little less but the bracket is shabby, you loose out. If the RMA procude is costly, if the stock levels are bad, or the distributor knowledge is low, all these things matter.

That's what makes Hik strong.The product is good, the supporting parts are good.The technical tests IPVM publishes almost always prove this point: great value for money.

As a distributor we make sure to have top notch support and good stock levels so every customer can have the support they need.
We train them in networking skills and many other things, we believe it will help their succes and in the end that helps our success.

I'm hoping to see some more GDPR cases to make the public aware of the necessity of choosing a solid installation partner. One with proper IT knowledge and someone that understands the risk of connecting a device to the web.

 

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UI
Undisclosed Integrator #10
Jul 27, 2018

It's not just the trunkslammer buying it. Or would you say most IPVM readers are trunkslammers, since the brand is so populair in the IPVM survey?

We are the company we keep.

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John Day
Jul 26, 2018
LMN Software Corp

"Instead of focusing on the device, why not have more demands for the network and the professional installing it."

Because you can't have any meaningful network security without BOTH the installer AND the manufacturer.

What makes it worse is that the manufacturers know better. The manufacturer "exploits" we are talking about here are as basic and simple as they come. US-CERT provides a rating of exploits - compare CCTV manufacturers by the simplicity of the exploit and you'll see why there is a big difference between CCTV manufacturers.

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Bas Poiesz
Jul 26, 2018

I agree that both parties need to work at it. When it comes down to CCTV 9 out of 10 times it's only the manufacturer that is blamed or held responsible.

To come back to my analogy, we don't mass-delete Windows or try to shame them. We install their patches and create a safe network.

If CCTV installers were as conscientious about the networks they install as the average IT company, the CCTV world would be a lot safer!

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U
Undisclosed #2
Jul 25, 2018
IPVMU Certified

For over a decade NexGen has designed and provided required upgrades and updates to an aged digital recording system for US Army Base Fort Leonard Wood.

That’s an odd phrasing.  Did they replace the “aged” system? Or just design upgrades/updates to it for the last 10 years?

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UM
Undisclosed Manufacturer #4
Jul 25, 2018

Political?  Yes.  However - I have no problem with this. I don't want to continue to turn the US into China's dumping ground for their inexpensive products. 

There is a reason why the deficit is 5 to 1 in China's favor:  we like to buy the cheapest/least expensive products in order to make the most $ - we are culture obsessed with "more" - more discounts, more product for less money, more everything.  China knows this, suppresses their work force into manufacturing products for pennies on the US dollar and subsequently, we see more and more manufacturing go oversees to support our need for "more" cheap products. 

I'm not for seeing anyone go under or close down - but I'll absolutely support the idea that "making an omelet means cracking a few eggs".  

 

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Anton Miller
Jul 25, 2018
Shaked Projects

You'll be suprised, but pretty much everywhere in the world - and probably in places where they don't even have any money at all - people want to give less to take more. 
I guess it is a part of human nature. 

Not all end-customers are on budget, but those who are want to get the most bang for their buck. You won't be able to persuade a grocery store owner that a 2 cam Axis system is better than 16 cam Hikvision job.

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Undisclosed Integrator #6
Jul 25, 2018

I have said it before but will go ahead and restate it here.  

No one. that I have seen, has said HIKVision has no place.  What has been said is that we as concerned citizens do not think that place should be in critical government infrastructure or military bases.  As a large end user with confidential IP, CFATS and MTSA regulations the risk of a Chinese backdoor into our systems is not acceptable AT ALL.  However, a mom and pop retail store do not really have a need to worry about that risk so HIKVision will surely work for them as long as the integrator is up front with them about the documented exploits and previous hacks and how these can be mitigated then the choice is theirs.  

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UM
Undisclosed Manufacturer #7
Jul 25, 2018

Goes to show you why case studies are so hard for a manufacturer.  Once a dealer and/or end user puts their name out there, it can come back to bit you for years.  

 

I don't understand how it is costing tens of thousands of dollars to test out a new product line.  Most reputable manufacturers will give you demo gear to try out as a loaner or sometimes even to keep.

As far as losing orders, they should have realized that potential when working with 1) Hik in general, and 2) when working with a low cost manufacturer.

If I was selling XM or Dahua cameras, I would always be on the defensive, knowing that the rug could be pulled out and need to switch if/when something happens, such as a vulnerability.  If it was a major company, I wouldn't have to keep this in my mind.. however, we have seen many M&A or failures which then would cause the same issue  (Sony/Bosch, Panasonic, Pelco, Arecont...) of lost orders, needing to research new manufacturers...

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Undisclosed #3
Jul 25, 2018

I don't understand how it is costing tens of thousands of dollars to test out a new product line. Most reputable manufacturers will give you demo gear to try out as a loaner or sometimes even to keep.

That was my first thought as well when I read that section. Tons of manufacturers would love the chance to displace Hik and would send both equipment and people to help with the process. The only way I could see spending $20K+ to explore Hikvision alternatives is if the tests were being conducted at a combination strip club/cocaine dealer, and even then you'd have to be a helluva tipper to run up that tab.

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Undisclosed #2
Jul 25, 2018
IPVMU Certified

...if the tests were being conducted at a combination strip club/cocaine dealer, and even then you'd have to be a helluva tipper to run up that tab.

Fact CheckMostly True

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Sam Eskew
Jul 25, 2018

Perhaps Mr. Nickelson made a poor choice of vendors. That happens in business. Hikvision is a prime example of the unfair trade practices in the news. I thank IPVM for providing pertinent market information which kept me from being sucked into the Hikvision orbit. 

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Dennis Ruban
Jul 25, 2018

This never-ending holy war. I thought we are all professionals here and everyone understands that hik is not good as axis from a cybersecurity standpoint. But Internet today is not like it was 20 years ago, you have to set up your network properly, and don't rely on a CCTV manufacturer. Having a proper setup will eliminate the big hik risk or small axis risk anyway. So why to pay more?

The only reason if you are scared of the chineese communists.

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U
Undisclosed #2
Jul 25, 2018
IPVMU Certified

But Internet today is not like it was 20 years ago...

No, it’s not.  20 years ago, you could get away with hardcoding passwords right in your firmware, but not today.  Now, the tools researchers use for discovering exploits, whether intentional (backdoors) or just sloppy coding, are increasingly effective at finding things that might have gone unnoticed before.

Likewise, networks themselves (and their gateway devices) are under increased and sophisticated attack, so the possibility of unauthorized network access cannot be ruled out.

Therefore, to have any real confidence in the cyber security of your system relies on both clean devices and a safe network, in case one turns out to be not so.

The age-old dilemma of who is responsible for security, the manufacturer or the installer, has become moot, as both are equally culpable for their defects.

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UI
Undisclosed Integrator #1
Jul 25, 2018

No kidding......Anyone please provide documentation where any Hikvision device jumped up and connected itself to a network that Hikvision was responsible for? Won't happen, never has happened....

It is more foolish than the Gun debate, do they jump up on their own and kill people?

Dealers that use knowledgeable, experienced and educated networking professionals know this also and many obviously install Hikvision every day....

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John Day
Jul 25, 2018
LMN Software Corp

Wrong... a security network, by it’s nature, has network drips outside the security perimeter. Anyone who plugs into that network will exploit the camera and have an easy toehold in the network.

Network security has to be done across layers ... Defense in Depth. Everyone has to do their part and security integrators will (eventually) have to part of the answer.

You’d never install a good lock on a door made out of cardboard.

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U
Undisclosed #2
Jul 25, 2018
IPVMU Certified

It is more foolish than the Gun debate, do they jump up on their own and kill people?

Actually...

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Undisclosed #3
Jul 26, 2018

No kidding......Anyone please provide documentation where any Hikvision device jumped up and connected itself to a network that Hikvision was responsible for? 

Here is one example of a Hikvision device that automatically connects to a wifi network without the users knowledge: Hikvision Vulnerability Permits Wi-Fi Attack.

Then there were the Hikvision Devices with uPNP Enabled, and in many cases those had some default configs to connect to Hikvision-owned ntp servers or DNS servers, which would make it really easy for Hik to identify and remotely connect to those devices, particularly the ones with the magic-string backdoor.

And of course, those are just the readily identified known examples. In no way is it unreasonably to expect other current, or future, Hikvision devices might have a "bug" that causes them to tunnel out, connect to hard-coded wifi networks, or do other highly insecure things without the user being aware.

Won't happen, never has happened....

HAS happened, probably will again.

Seriously, are you even reading the content you're paying for access to?

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Dennis Ruban
Jul 26, 2018

really? wifi security cameras with ethernet connection and wifi enabled but not used? UPNP enabled? Installer like that would be fired from my site on a very first day.

I just said that we need professionals to set up the system and 99% of the problems will go away. Those listed above will never happen if your security installer has up-to-date knowledge and skills.

Of course, when you take the guy who pulled and terminated the coax cables yesterday, installed analog cameras, and you send him to install a modern IP CCTV system, you shouldn't expect the job done properly. You don't ask the groom to fix your BMW.

Educate your people or team-up with IT/network firms. Don't blame the manufacturer for your ignorance.

MM
Michael Miller
Jul 26, 2018

I just said that we need professionals to set up the system and 99% of the problems will go away.

That is never going to happen with Hikvision and Dahua willing to sell anything to anyone with a checkbook. 

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Bas Poiesz
Jul 26, 2018

Disagree Michael. We only sell to companies that are registered as security installation companies.

Sadly like as Dennis points out that’s no guarantee for good installations. Hence my point: we need better legislations (like GDPR is attempting). Unless it’s set in stone a good salesman can sell a crap installation.

MM
Michael Miller
Jul 26, 2018

Your kidding right?   I could have my 2-year-old order Hikvision or Dahua from eBay, Alibaba, Amazon or the thousands of other online vendors.  And don't forget ADI doesn't set the bar high to become a vendor either. 

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Bas Poiesz
Jul 26, 2018

The product should not be on eBay or alibaba, but that’s hard to control once the cat is out of the bag.

As a responsible partner we do screen our resellers, as any good partner should.

JH
John Honovich
Jul 26, 2018
IPVM

The product should not be on eBay or alibaba, but that’s hard to control once Hikvision threw the cat out of the bag over and over and over.

I fixed it for you.

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Bas Poiesz
Jul 26, 2018

I voted funny on that.

They created products like EZVIZ HiWatch and HiLook for these markets, but the strategy to implement them has been far from effective.

We have reported Chinese channels based on serial numbers of bought items, and they have been shut down. It’s been worse in the past.

JH
John Honovich
Jul 26, 2018
IPVM

I do believe that things are better in Europe than in the US when it comes to policing / restricting Hikvision product availability.

U
Undisclosed #3
Jul 26, 2018

really? wifi security cameras with ethernet connection and wifi enabled but not used? UPNP enabled? Installer like that would be fired from my site on a very first day.

That is really a separate topic, and also probably puts you in the 1% bracket in terms of people paying attention to these things.

The comment I replied asked for examples where Hikvision cameras "jumped up and connected itself to a network that Hikvision was responsible for?", and went on to claim it never happened or would happen. I showed examples Hikvision devices out of the box did connect to networks, or perform network functions that a user did not ask for, did not explicitly enable, and that would compromise the security of the device and the network it was attached to.

Hikvision has a proven track record of continually putting their customers at risk. This applies to their cameras, recorders, cloud services, and PC software, to different degrees and with different levels of vulnerabilities. Hikvision supporters can try to deny it, pretend like it was not a major breach of user trust and security, or lull themselves into believing it won't likely happen again, but they are only fooling themselves.

 

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Bas Poiesz
Jul 26, 2018

You must be replying from a self programmed OS with a pretty decent VPN at least!

If you are a windows users you are in for some eyeopening surprises, a hint: it’s not really safe by itself.

Maybe you are an apple user , rest assured nothing wrong with iCloud, it’s never been hacked.

Then again if you use android you will by now be used to getting google notifications about the best road to take and where you must be going based on the data they gathered from you.

 

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Undisclosed Integrator #10
Jul 28, 2018

#whataboutism

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UI
Undisclosed Integrator #9
Jul 25, 2018

Think about how Target got hacked because of an air conditioning vendor and then read this:

Power Hack

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Undisclosed Integrator #10
Jul 25, 2018

Nickelson says if the ban goes through he will have to spend thousands on research and development to identify substitute products.

Attention Hikvision dealers:  We know your "research and development" consists of driving up to ADI and asking what 4 MP camera is cheapest that day.  Let's not fool ourselves.  Hikvision dealers are not Silicon Valley startups banging out code or engineering... well, anything at all.

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Undisclosed Integrator #11
Jul 26, 2018

Attention undisclosed Integrator #10. You would do well not to generalize Hikvision dealers as the guys looking for the cheapest camera at ADI. I can't and won't speak for everyone but we use Hik not because it is the cheapest but because it offers the best balance of value, features and availability. We tested several cameras over the course of several months to evaluate day/night performance, throughput, motion detection, VMS compatibility, etc. We don't install cameras in military or Government facilities and our solutions include a completely discrete network that we monitor and support to minimize issues and control security. We have yet to hear of any of our installations being hacked or breached. No doubt we would have far less installations to worry about if we had used "higher end" cameras since our competition would have eaten our lunch on most of the jobs we quoted.

Your comments have no basis in fact and do nothing other than demonstrate a snobbish air of superiority that many larger supposed "high end" integrators seem to have. We will continue to take the high road with our "low end" Hik solution .... all the way to the bank.

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Bas Poiesz
Jul 26, 2018

Well said. Some talking Hik down sound just like the jealous little kid in the corner that feels overlooked.

Yes you can have reasons not to sell Hik and I respect that. But saying it's nothing more than a trunkslammers choice is very far from the truth.

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JH
John Honovich
Jul 26, 2018
IPVM

#11, good feedback!

You would do well not to generalize Hikvision dealers as the guys looking for the cheapest camera at ADI.

I agree that there are dealers, like yourself, knowledgeable and quality focused, that use Hikvision.

On the other hand, Hikvision NA does deserve its reputation as being the brand for those wanting the cheapest camera at ADI. They've literally earned it. They've run 3 or 4 'flash sales' at ADI in the past 2 months, most recently last week. Dozens in the last year.

(1) Simply being on sales so often will attract 'trunkslammers' and (2) others who sees those 'flash sales' over and over will conclude that Hikvision is for guys looking for the cheapest cameras at ADI.

Hikvision is caught between wanting to maximize short term revenue and market share, unfortunately at the expense of both profits and a respected long term brand. Agree/disagree?

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Bas Poiesz
Jul 26, 2018

Hi John

In the local market here, ADI is giving more discounts on Dahua opposed to Hikvision. So maybe ADI USA is making it the low cost option, not Hik itself.

They won't snuff the turnover, don't get me wrong, but it seems more to be ADI pushing it.

That being said, summer months are slow for business. This is just a way of generating some quick turnover. They won't do flashsales in the busy months as the order flow is high enough anyways in these months.

 

(ps the link you've send is dead)

JH
John Honovich
Jul 26, 2018
IPVM

No, ADI absolutely does not push or give its own discounts to Axis, Dahua, Hikvision, Hanwha, whomever.

Manufacturers have to pay ADI for the privilege. All sorts of manufacturers complain to us about this but ADI has such strong power in North America, that if you want to move big volume fast, you have to pay ADI. Not only do you cut your price for the sale, you also pay ADI for sending out these notices that you cut your price.

Also wrong about summer months being slow. Hikvision has been doing this almost every month for 2 years in the US. We've covered this repeatedly - Hikvision Hits Record 'ALL PRODUCTS' Sales RunForget The Backdoor, "ALL HIKVISION PRODUCTS" On Sale, etc.

I know it's different in Europe so it's harder to believe but Hikvision NA has become addicted to these short term sales that are contributing to burning their long term brand.

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UI
Undisclosed Integrator #11
Jul 26, 2018

The wonderful thing about capitalism is that anyone is free to do whatever it is they think will improve their business, profit, brand, etc. Once you get out of the bid/spec circles the end users of the product know little or nothing about brands. Aside from the geeks in the DIY market there is really little or no brand recognition of security cameras in the consumer market.

We've structured out business (pretty much entirely referral based) so that our customers rely on us to provide the solution to their issue. They neither know nor care what products we choose to do this as long as we meet their needs for performance, ease of use, reliability and cost. We're not the cheapest by a long stretch and we differentiate Hik from the grey market OEM stuff (which really is crap) like LTS and others that don't even have a name on the products. The trunk slammers will always go for the absolute cheapest thing they can find, even if its $1 less so we find very few of them using branded Hik products.

All of this political and protectionist rhetoric is just that. It has no bearing on what we do or how we do it. If Hik ultimately digs it's own grave and goes belly up at some point in the future we will change product then or maybe sooner if a better product/value emerges. Back in the day we used IQ and Panasonic IP cameras. They had much higher brand equity than Hik and where are they now?

I'm fine with the flash sales. It means more product on hand for immediate delivery and a bump in my margins if a sale happens to coincide with an order we are placing for a job.

The rest is just noise and a pointless distraction from serving my customers and profiting from the partnerships we've forged. Of course this whole discussion and others is the basis for IPVM's existence so by all means carry on and keep up the good work.

JH
John Honovich
Jul 26, 2018
IPVM

The rest is just noise and a pointless distraction from serving my customers and profiting from the partnerships we've forged.

It's hardly noise, considering just this week, the House and Senate reconciled a bill that will ban Dahua and Hikvision products for US government use.

Now, all of this could be pointless for you, but it's a major industry issue as no video surveillance manufacturer has ever been banned by the US government, and the consequences of this going into law will be significant.

(2)
BP
Bas Poiesz
Jul 26, 2018

No video surveillance manufacturer has ever been banned by the US government before, and the reason it has been done seems more political then technical. Not saying that this is wrong, we could differ in opinion on that.

I'm not sure how much it will hurt the brands mentioned, most goverment projects (in the EU) are down with VMS's like Genetec and are the result of a very long lobby. Traditonal brands like Axis and Bosch still have a big part in these installs.

Who benefits from Hikvision not being allowed in Genetec? Exactly.

UI
Undisclosed Integrator #11
Jul 26, 2018

Precisely. This is the same government that put tariffs on Canadian steel and aluminum because of "security concerns". Politically, this is a brilliant move that will appeal to the populist base and, by extension, the competing manufacturers. Whether there are any tangible merits to it really doesn't matter in this context.

UI
Undisclosed Integrator #11
Jul 26, 2018

Significant in the US maybe. We are Canadian so the ban means nothing and changes nothing for us and the rest of the world. I would be curious to know how much actual business Hik does with US government sites and what it is as a percentage of their total sales.

(1)
UI
Undisclosed Integrator #10
Jul 26, 2018

I would be curious to know how much actual business Hik does with US government sites and what it is as a percentage of their total sales.

Same here.  I know not what it is today, but I know tomorrow it will be 0%.  0% is surely damaging.  OEMs may think twice about sliding some Hikvision product into their product line as much as they do now.

JH
Jay Hobdy
Jul 26, 2018
IPVMU Certified

Where is this magic cup of Kool-Aid at?

UI
Undisclosed Integrator #12
Jul 26, 2018

How many John's does it take to secure a network? :)

(1)
JH
John Honovich
Aug 03, 2018
IPVM

This Hikvision dealer has now made Chinese government media:

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