Geovision Executive Speaks About Cloud And Its Future
While Geovision is commonly considered a camera / recorder manufacturer, the company tells IPVM it is a "software company" and believes the market is in its favor with the coming dominance of the cloud.
IPVM spoke with Geovision USA's president, David Huang, and examined the company's financials, position, and strategies in this report.
Executive *******
******* ***** ***** ************ ** * camera ************, ********* **** **** **** are "*****" ******* ********/*********. *** ******* added **** *** ***** ** *** cloud ** ** ***** *****, *** "software *********," **** ** ********* ******, will "**** *** *****" ** *** next *** *****, **** ***** ** leverage ***** ******** ******** **** *** their ******* ******, *** **.
************, *********'* ******* *** ****** **** to ~$** ******* ***** *** **** at ~$** ******* ** *** ***-*****, raising ********* ***** *** ** *** grow, ***** *** ****-**** *******.
***** **** ****** * ********** **** in ******, ********* ********* ************* ***** own ******* "*********** *** *****" *** chooses ** *** *** ******** (*.*., Uniview). *******, ** * ******** ***** products **** ** ******, **** *** they *** ******* **** *****.
******** ******** * ***** ***********, *********, which ******** ** *** ***** *** of *** ******, ******* ********'* * ****** (*** ****). *** **** *** ********** *** it ** ** ** *********** *****, but ** ***********, ** *** **** operating **** **** * *****-*** ****** of *********.
Developing ******** *** ** *****
********* ******* ** ***** *** **** video ******* *****, *** *** **** products *** *** ******** ****** **, Huang **** ****:
** *********** *** ********* *** ****** images ** ******* ****** *** ****** them ** *** ********. ****'* ***** we **** **** ** ***** ***. We *** *** ** *** ***** patch ********* ** **** ** [*******] video *********. ** **** **** *** hot **** *** ****** ***** ******* Card.
**** ** ****** ****** ***, *** real ******* ** *** ******** ****** it. ** **** **** ******* ** developing **** ******** *** ** *****.
********* ******** **** ** *** "*** of *** ****" ***** ** *** market, *** ** ** ********** ** end-to-end ********* ********, ***** **** ****:
** ******* [** ***] *** ** the **** *** ******** ** *** market.
****, ****'* * ****** *** ********* stay **** **. ***** ** *** core ******, ** **** **** ** developing *** ******** ** ****** ** end-to-end [********].
***** ******* **** ******** ** ***** an ***-**-*** ********* ********:
*** *******, ** **** *** **** access ******* ******** * ***** ***** to ****. ***** **'* **** ** believe, *** ****'* *** ** *** to ********* *** ******* ********* *** make *** ********* [**** ** **] one-time ********.
***** **** *** ****** *********'* *******, we **** *** ****** ***** ******* due ** *** *******'* ******* ****** size *** ********* *******.
Not ******* ** ** *** ******* ** *** ********
***** ********* **** **** *** *** trying ** ** *** *******, *** "Geovision *********" ******** ***** ** ******** it ******** *** "**** ** *****":
** ***, **** ****** *** ***** see **** [*********] ***** *** ** very ****** ** *********, ** ** have * ****** **** ******** *****. It ** ***** ** **** ** call *** ********* *********. **** ********* has **** ********** *** ** *****. So, ******, **** ** ***** ***** on ********* ** ** *** ********.
** *** *** *** *******; ** are *** ****** ** ** *** biggest *** ********. ** **** *** own ****, *** **** ** ****** strive *** ** ** ****** *** best.
Geovision's ******* ****** ** *** ***-*****
*********'* ******* ****** ** **** *** has ******** **** *** **** ******. It *** ***** ****** $** ******* a ****. *** ******* ** ******* profitable, *** *** ****** ****** ********** yearly.
*** ******* ** ******** ****** ** the ****** ***** ******** **** ~$*** million *** ****** **************:
50%-60% ******* **** *** **, **** ~*% **** ******
*********'* ******* ******* ****** ** *** US ******, ***** ***** ** ~**% - **% ** *** ***** *******. The ******** ****** ***** ** ~**% of *** *****, *** ~**% - 15% ** *********'* ******* ***** **** Asia, ***** **** ****.
**** ** *** *******'* **** ***** were **** *** ****** ****, *** the ***** **** **** **** ***** and ***** ***** ** ****. **** ~3% ** *********'* ******* ***** **** its **** ******, ******. ***** ***** that ** **** *** **** ** China *** **** *** ** ******* there.
Headcount, ********* ******* ** **** *******
********* **** ** ******** * ********** low ********* ************ ** ~** ****** in *** **, *** ***** ********** on *** ***** ** *** ** sales ****** ** *** ******* ******:
** **** ***** ** **, **+ [people]. **'** ****** *** ** ******** a **-****** [****]. ** ** *** intend ** ***** * *** ************. If *****'* * **** **'** [****], but ** **** ******, ** ***** close ** **, ** ** **** for * ******* **** *** ****. We **** * ***** ********. *** we **** *** **** ****. ** there ** * **** *********, ** will ****** ******** **.
*** **** ******* ********** ****** *** organization *** *** **** ********* *** is **** ******* ********. ***** ******** on *** *** **** ***** ****** of **** ******* ** **:
** ******* ****** *** **** *******, or **** ******* ****** ***** ******** or ********** *******. *** ******* **'** truly ******* ** *** ********, *** solution. **'* *** **** *** ******, which ******** *****'* **** **** **** support. ** **** **** ** **** department. ** *** ** **** *** customers *** **** ******* ********.
**** ******, *** ********, ** ****** control, ***. *** ******* ** ****** control, ** ********* ***** *** **** and ****** *** ** **** **** be * **** ********. ** **** sure *** ******* ** *****. ** put **** ********* ** ******* **** sales.
*******, **** **** ********** *** *********, it ******* ** ** **** *** well ********* *** ***** / ******* a ******** ***** ******** ****** ******** without *** ***** ** **** *** USA ******** / ******** ** *** growth ** ********* / ***** ** overall ******.
Emphasis ** ******** *** *********
*********'* ******* ******* **** ****** *** diversified ******* *****. **** **** **********, its ******** ******* ******* *** **** higher **** *** ******** *******, **** as *******. **** ****** *** ****** margins *** ****, ********* ******** **** out *** ******* ******** - *** key *******, ***** ****:
** **** ** **** ********* ******** from *** ******, ****** *******, *** POE ******, *** *** *** ** the ********. **'* * **** ** combination. ******** [***] * **** ******, but *** ****** ****** ** ****.
* ***** ** **** **** * very **** ***********. **** ****** *** camera ****** ** **** ** *** get * ****** **** ********* ****, to **** ** ********. ** * mentioned ** *** *********, ******** ** our [****].
Software ********* **** "**** *** *****"
******** ** ******** **** *** **** of * "**** *****" ** *** video ************ ****** *****, *** **** trend ** ** *********'* *****, ***** said:
*** ******is ****** ** *** *****. For *** ****** **** ** *****, *** ******** ********* **** **** *** *****. It doesn't mean one needs to be a pure software company. A company whose core value is software will rise and shine.
***hardware ********** [** ********] ********. You can always get the hardware from an OEM vendor. But once you've got that, what kind of software you can utilize? That makes the solution attractive. That's where the core value kicks in. I think it's for the coming 10 years. We think the VMS company will start to rise and shine, and Geovision, we bet, is one of them.
***** ********* **** *********'* **** ********* was ** **** ******** ******** ** years ***, ******** **** *** ******* card ********:
**** ** ***** ***, ** ****** to **** **** ********. ****** ****** to *** **. ** **** ** sold *** ******* ***** **** *** software. ** ****, **** ** **** actually ******* *** * ***** ** software, *** ** ******** ** **** the ******* ****. *** *** *** capture ****, *** *** *** ******** for ****, *** **** ******* **** is $***. ** ****, * ******* card ****** *** ******** $**. *** other ****** [****] ** *** ********. That's ***** ** **** ****.
********* ** ***** * ******* ******** today, *********** ***** ******** ** ***** the ******* ** ****, ** ***** said:
**** *****, ** *** *** ********* camera, *** *** ***** *** ** channels *** ****. ********* [***** **** they ****** ***] ********, *** ******, but ** *** **** ** ********* Community *********, **** **** ****'** ****** [Geovision's ******** *** ********].
**** *** *** * ******* ****** from ********* ****, *** **** *** willing ** *** * ******* ** buy * ********* ******. **** ******* they **** ** *** *** ********.
Moving ** *** ***** "** *** *****"
*** ***** ** *** ***** ***** is ** *********'* *****, ***** ******:
*** ***** ** ** *** *****, which ** *** *****. **** *** market ***** ** *** *****, ********* looks ** ********.
The ** ****** ** **** *****-****** *** **** ******** ** ** ********* *** *********
***** **** **** **** ** *** observed **** ******** ** *** ***** in *** ** ****** ******** ** others:
** ******* **** *** ** ****** is [******] ** ***** *** *******. The ***** ******* *** *** **** cloud-driven, *** ** *** ** ****** right ***, ******** ***** ***** *****.
** * ******, *** ** **** continue ** ** *********'* "**** *********" market, ***** ****:
* **** *** **** ** ********* will ******** ** ** *** **** important ****** *** *********. **[*** ** market] **** **** **** *** ****** [for *********] ******* ** *** **** the *********** *** ********* *** **** the ***** [*********].
GV-Cloud ******
*********'* ****** ***** ******** -**-***** ******, **** *** ********* *** ****, Huang ****:
** **** ******** *** ***** ********, and *** ***** ******** ** **** than **** *** ***** ***** *********' offers. *******, *** ***** [******] *** cloud [******* **** **** ***** ** Amazon [***] ** ********* [*****].
*** ***** ** **** *** *******, we **** ******** ******* *** *** customers. [** ****] *** **** ***** cameras. ** ** *** ******* **** existing *******, **** *******, ******, ** Hikvision *******, ** ******* **** **** our ***** ******, *** *** **** [the *******] ** *** ***** *****. Or **** *** *********. **** **** our *** ******** *******, [****] *** select ******* ******** [***] **** [****] all ** *** *****. **** ** something *** ********* ****.
***** **** ****-*********, ********* ****** ** move ** *** ***** ** **** manner, ***** ****:
*****, ***** ******* ** ***** **** cheaper. ** **** **** *** **** practical [*** ** ***** ***] ***** at **** ****** ** **** *** customers' ***. **** **** *** ******** stored ** *** ********* ****** *** the ******* ******* **** *****, *** they [****] **** [**** ** *****] channels ** *** ***** [** ********* backup] *** *** *** **** *******.
**** *** ****** ******** **** **** their *** ** *** ***** ** no ******. **** *** ****** ******** on *** ***** ** ** ****** unless **** **** ** ***** ** the *****. ** ****** ***** ****'* a **** **** ****** *********. ** just ******** *** ***** *** ***** [ago]. *** **** ********* [***] ******* on ** ******* *** **** ***** are [**** ******] *****.
** **** ** * ****, **** strong ****** ** *** *****. ** already **** **** ******** ********* ** board.
***** ********* **** **** **** "**** existing ********* ** *****," *** ******* declined ** ******* ******* ** *** many ***** **** ********* **** ***** the *****.
Pricing *** ***** *******
*********'* ******* *** ***** ******* ** $15 *** **** *-********* ****** * month, ***** **** ****. *** *** also ****** ** ******* ** *-********* or ********* ** **** ** ****, Huang *****. ** **** **** *** rule ** ***** *** *** *******'* cloud ******* *******:
*** ******* ********* **** ** ****** complicated. *******, ** **** **** ** simple, *- *********, ** ****, $**.
** ***** ** **** ****, ***** be **** ****, ********* ** **** kind ** ********** [********* ****].
Geovision's ***** ******** ** "**** *****"; "****** ** ***** **" **** *******
*********'* ***** ******** ** * "**** range" *****, **** *******'*, *** *** company ** "******," ***** ****:
********* *****, ** *** **** ****** and ***, [**] ** * **** range [*******]; [**] ** **** **** Verkada. ** **** ** *** ******* right *** ** * ******* ********* for ****. ***we *** ******. [Emphasis added]
***** ***** **** *** ******** *** "just **** *******" *** ********** ** their *********:
********** ***** ** **** **** * big ******** *** ******** ****, **** can ****** ****** ******* ***** ********, and ** *** ****, **'* *** just ****** ****. **'* * ******* different *** *******. **'* * ******** to ****** ***** ******* *** ** the *********; ** *** ****** *******; it *** ******* *** **********...***.
**** * ******* ********, ********* ** trying ** ***** ** **** ******* while ********* **** *****'* * ***, Huang **** ****:
** ** * ****-***** *****, **** like *******'*. *** ** ******, ** still **** ******* **** **** *******. We ***** ***** ****, *** ** are ****** ** *** ****** ** catch **.
Compare ********* ** *** *********, **** ******* ** *********
*** **** ********** *** ********* ** to *** ******* ** **** "****" camera ********* *** ****** ******* ** with ***** *** ********* **** ** Genetec ** *********. ********* ********, ******* they ********** ********* ********, *** **** competing, ***** ** * "**% ****** we ***", ** ***** ****:
******* ** *** * ******** ******* depends ** *** ** ******* **. Usually, *** **** ********** *** ********* is *** ********* ** **** **** camera ********* *** ********* ** **** [VMS ********* ****] ********* [***] *******. The ***** ******* ** ********* *** most ** ********. **** ** *********** Avigilon, ***** *** * **% ****** we ***.
** **** *** ** ***** ***. Our *** ******** *** ** ** better **** *********'*, ****** **** *******'*, or ** ***** **********. *********, ** lose *** *****. ** *** *** camera, ** *****'* ****** ****** ***** you *** *** ** **********, *********.
*******, ******** ** **** **** *** times *** **** (** ****** ****** revenue) ** *********.
OEM ******* - ****** **** ***** ** ******
******** ** ********, ************* ******* ** itself ** *********** *** *****, *** this ** *** ********* **** *** cameras, ***** ******:
** ***** ****[************* *** *** *******], we *** *********** *** *****.
** *****'* **** ***** ** *** car ******** *** [*** ******] ** manufacture *** ********** ** *****. ** is *** ****-*********. ** ******* *** strategy.
** ***** *********** **** ** *** hardware. ** ****'* ********* ******* **** needs ** ** ******* **-*****, ** will ** ****. *** [***] ********* type ********, ** ***'* **** ***** somewhere ****. ** ****** **** ** ensure ******* ** * *** **** to **** ** ****** * ********* product.
***** ***** **** ********* *** ******** OEM ***** *** *** ******* *** risks:
** ***'* ***** ********* ** ***. We **** ******** *******. * ***** by ***** ** ** *** **** customers **** **** *******. *** ** will ***** ***** ******** ** ****** launch *** [******* ** ******] ** it ********* ** ******** ******** ********* products.
** ********, *********'* ******* ******** **********, Vivotek, **** *********** *** *** ******* (related, ********** ********** ***** ** ******).
NDAA *********, *** *** *** *********
***** ******** **** ********* ******** **** nothing ** ** **** ********* ** Huawei *** **** **** **** "***** be ******":
********* ***'* **** ** ***** ******* the ******** **** ** ******. [****] will ***** ** ******. ** **** nothing ** ** **** ********* ** or ******. ** **** ****** **** sure ** ******* *** ********. *** the ******** [****] ********* ****, [**] make **** **** *** *****. ** try ** ********* *** ****-**-***** ******** for *********.
*******, ******* ********* ******* *** ******* OEMs, ****** ** ********** ** ******* *********** actions ******* *******.
***** *********, ******, *** ***** *** on *** **** *** ****, ******* is ***. ***** ******** **** *** of *** ******* ****** ***** *** NDAA *********, ******* ***** *** ****** "from **** ***** ***" *** ***:
*** *** **** *********. ******* *******, some *** ******* ** **** ******* from **** ***** ***, **** *** Geovision ****, [***** *** ** **** compliant *******] **** ***** *** *** entire ******** ******* **** *** ********** chip.
**** ****** *******-******** ******* *** **** compliant,**** *** *** *** ********* ***** they *** **** ** *** *****. *****, ***** **** **** ********* also *** ****** ********** *****, *** customers *** ****** ** **** ***** products **** ** ******:
** ***** **** *** ********** **** in ******. ** * ******** ***** [the ******] ** ** **** ** Taiwan, [** *** *******]. ** ****** depends ** ******** *****.
***** **** ********* ** **** **** the ****** ***** **** ** ****** are *** ******-*** *****.
The ********* ***** - ***** ***, ************-******, ******* *** ***************
********* ******* * "*********" ***** * few ***** ***, ******** ******** *********. Huang ********* ** **** **** *** new ***** *** ***** ** ************* Geovision's **********-***** ********* **** *** *****, on-the-shelf, ******-****** ******** **** **** ***** as *********/***** ************:
[*** ************ ********], ***** ** *** market ******, **** ******* **: "***, maybe * **** ********* **** ** the *****. *********, [***] *** * very **** *******. ** **** *** are ********** ********-******. ***** ***** ** products *** *** ** ** *** on *** *****. * **** ********* quick ** *** **** ** *** shelf.
*** *** ******-****** *********, ****'** *** quite **** **** ** **. **** need ** **** ** *** ******* and *****. ****'* *** ***** ** came ****, *** ******* ** *** demand **** *** ************ ********, ** came ** **** **** ********* *****.
** **** ** **** * ****** differentiation. **** ***** *** ******, *** example.
********* ** *** *********** ********* ** the ****** ** * ******* ****** as ******* ** *** ******** **** of ******** ** **** * ********** different *****, ***** **** ****:
** ******** ********* **** **** * series, *** *** ********* ******. **** though ** *** ** ****** ****, it's **** **** ** ******** *****-*** these *. ** ** ****** *** to *****-***. **********, ** ***** ** define ** ** * *****, *** when **** ****** **, ** ***** [it ** **] **** **** * series.
*** ********* ***** ******* *************, *** Geovision's *** ***** *****, ***** ************:
**** ** * *****, * ****** driven ** *** ************ ********. **'* not ** *** ***** *****. *** sales ***** ****** **** ** **** the ****-*** *******, *** **** ****'* where **'** **** **.
Future ****** ********
********* ** *****, ********* *** * global ******** *** ****** ****** ** the ****** ****. *********'* ***** ****** the *****-** ******** **** **** ** Europe, *** ** ** "****** ****" there, ***** ****:
** **** ******* ** *** **, Canada, *** ******. ** **** **** offices ** *** ***** ********, ******, Japan [*** ******]. ** ** *** very ****** ****** ** *** ****** East. **'** **** ***** ****** **** over *****.
***** ****** ** ****** **** ****** in *** ******** ****** [*****] *****. [Due ** *** ***,] **** ** Europe, *** ******** ***** *******, *** I ***** **** **** ** ****** back *******. ** ** ** *** [some] ******* **** ********** **** ****** compared ** *** ***** ***. ** will ******** ** **** **** ***** markets **** ****.
*** ** ** ******* *** "****-**-***-*****" trend, *** **** **** ** *** of *** **** ********* ******* ****** Geovision's ******, ***** ****:
** ******* **** *** ** ** the ****** **** ***** ** ***** the *******. *** ******** ****** ** not **** *****-******, *** ** *** US ****** ***** ***, ******** ***** about *****. **, * **** *** the ** ****** **** ******** ** be * **** ********* ******. ** will ******** ** ** *** **** important ****** *** *********, *** **** a ****** ** ****** *** **** because ** *** *********** *** ******** but **** *** ***** [*********].
* ***** ** *** **** ****** [Geovision] ****** ** ****. *** ** portion ***** ** ****** ** *** cloud. *** ******** ******'* [****** ****] mainly ** [* ********] **** *** Covid-19 ********, *** ** **** **** the ********* *** *** *** ** soon ** ********. *** ****** **** business ** [****] ******* ****** *** better.
** **** *** ****** *********'* *****, so ** ****** ***** ** *** positioning.