Milestone And Video Insight Takeover Offers - Good Or Bad?
The big news in VMS this fall are takeover offers. With the VMS market maturing, there's less and less greenfield and easy analog projects to convert, meaning less growth overall.
Video Insight has a $29 per channel takeover offer, which is a fraction of what most mid to high end VMSes charge for their software.
Now, Milestone is offering free VMS software to OnSSI customers on a support plan and radically reduced prices to any other OnSSI customer.
On the one hand, lower prices is good for customers immediately, as they pay less. On the other hand, less revenue and steep declines in profits makes it harder for VMSes to further development. However, given that Video Insight is a subsidiary of Panasonic and Milestone is a subsidiary of Canon, their cash needs and objectives are likely different.
What do you think?
Vote:
Good competition to me is companies that advance product capabilities or find ways to produce / deliver the same product at lower costs.
In the Milestone case, it seems to me that Milestone is choosing to lose money to try to destroy OnSSI, which I think is bad competition. Anyone have a different read on it? Be happy to hear.
In the Video Insight case, it looks like they are going to make it up by selling their own OEMed cameras or their parent's Panasonic cameras. I don't think this is very healthy competition but the other VMS companies need to continue to add valuable functionalities to differentiate themselves from this approach.
Expect to see consolidation in the industry, only the strong or nimble (finding cash) will survive. 6-12 months from now we will be discussing companies that are not even in existence now.
An integrator should not put all his eggs in one place. Should make sure they know what is available in the marketplace, otherwise their competition will eat their lunch.
I believe this is healthy.
Update, another Milestone takover offer - Milestone Launches Avigilon Conversion Program
It lowers the value in the marketplace, driving a competitive fight to get back marketshare.
This will eventually have a negative impact on the value of the cctv vms market
Should be a interesting battle for customers, good for you if you sell a lot of milestone,onnsi,video insight products
Some glitchs on all sides to the integration process though .
Lot s of time for the comversion process. IE Programming, set up, installs
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