I am skeptical of this, because the fine print shows issues.
The article you cite, cites a Bahrain site which reports,
"The Memorandum of Understanding (MoU) was signed between Russian manufacturer Macroscop, Bahrain's MHS Technologies and UK-based Proline."
"They are hoping to achieve a sales target of $5 million over the next 12 months, revealed MHS Technologies chairman Mohammed Sajid."
This MHS is a Bahrain integrator. Proline is a UK surveillance distributor / OEM.
Hoping is a low bar. An MOU is not a commitment.
I have heard of Macroscop but only from Macroscop themselves. That does not mean they are bad. It appears though they have little presence in North America and Western Europe.
I think that they mean that if you configure JPEG stream for decoding, than they use technique to partially decompress the stream. It is commonly know technique, but not all VMSes using it, because not many (now not any) customers are using JPEG. For H.264 there is no any way to save resources on partial decompression. If you are not doing decompression, than you can connect 500 ip cameras to one server...if your server has capabilities to transfer 500x3mbs from network to hard disk.