I bet they're looking to build a Nest-killer. Their intrusion line is perfect for volume resi, and cameras like the Nest or the Ring are by far the most popular home security product there is, to the point where lots of volume resi programs give away these cameras for cheap or free as an incentive to sign a home monitoring contract. Just adding video to their portfolio won't make Nortek stand out, but adding a camera with some cool features like motion based notification might. And that will allow them to sell an alarm and camera and monitoring contract all at once and keep the profits. Maybe sell cloud storage too- Nest won't let dealers keep any RMR.
Nortek Acquires IntelliVision
Published May 09, 2018 00:51 AM
One of the largest intrusion manufacturers, Nortek, has acquired the self-proclaimed 'Leader in AI-Based Video Analytics Software', IntelliVision.
In this note, we examine the deal, Nortek's rationale, IntelliVision's mixed background and the potential impact of the deal in the increasingly hot 'AI' sector.
Nortek **********
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IntelliVision **********
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Comments (10)
Ari Erenthal
May 09, 2018
Brian Rhodes
May 09, 2018Imagine the security panel, gate or access system that recognizes the approaching user and responds accordingly, uniquely to that individual. That’s the type of intelligence we will integrate into our portfolio,
Technology is cool, but I think they just described a dog?
Ari Erenthal
May 09, 2018To be fair, a security camera that is as intelligent as a dog would earn somebody a Nobel Prize (actually a Turing Award, but you know what I mean).
U
Undisclosed #1
May 09, 2018Family and friends who know what I do always ask the best security they can get for their home. My answer is always a big, loud dog and a 12 gauge .
Clint Hays
May 09, 2018JH
John Honovich
May 09, 2018
Vaidhi Nathan
May 10, 2018Hi Jon, would it be OK if I added a few facts to your opinions?
- “not particularly deep in computer vision” – IntelliVision has 80+ employees of which over 32 are PhDs or MSs.
- “smart cameras that aren’t smart” – here’s the Wikipedia definition of smart camera https://en.wikipedia.org/wiki/Smart_camera. Yes, even a Ring video doorbell (with our intelligent motion detection) is a smart camera. In many other cameras, we include over 3-5 analytics functions.
- You missed the releases from last year where our facial recognition came #2 in the Megaface challenge (using 1 million faces), and our LPR/ANPR software achieved 99% accuracy.
- It is very hard to get Google native search to make IV #1 in AI/Video Analytics. It takes many years to get third party validations, credibility and good technology progress. We’re proud of it and wanted everyone to know.
- You queried the merger, but please understand, both companies have deep experience (15+ yrs) and market background, and customer needs were validated before this merger was decided. People don’t make these major decisions easily or without clear justification and market validation.
Let’s set a time to talk so we can help clarify your questions and maybe change your opinions with some real facts...
Vaidhi Nathan, CEO IntelliVision
JH
John Honovich
May 10, 2018Vaidhi,
I reached out to you before we published. It was your decision not to talk to us. Let's also make clear that your marketing person lied to me saying that you were still in negotiations until I made it clear I had a copy of an email from Nortek.
I am happy to speak with you. I provided you my cell phone number in that email. Call me.
I do appreciate your response, mine is:
(1) Do you have some proof to share on the 32 PhDs or MSes?
(2) If a Ring doorbell is a smart camera, then any IP camera today is a smart camera because they all include some form of rudimentary intelligent motion detection.
(3) And Hikvision was top in an academic test but their analytics have bombed so far.
(4) Google search results promotion is the game of con men or junior marketing people. Even for a company who touts a Frost 'award', that is embarrassing.
(5) What 'merger'? It's an acquisition. You are the CEO of the company and you don't know the difference between a merger and an acquisition?
In any event, I am happy to talk. Email to suggest a time or just call my cell phone.
U
Undisclosed #2
May 10, 2018Intellivision: Yet another company that claims to have been founded to prevent terrorism after 9/11.
Here is the CEO answering a very good question in 2014 (after ~12 years in business since 9/11). Notice the specificity of each of his two answers.
As an industry influencer, can you share with us a business success story or case study that you are most proud about?
There are two I am most proud of. Disney has been a great customer. They are always looking at new ways to better manage customers and employees. In their theme parks, they wanted to better understand customers with regards to flow and timing in specific areas. Using IntelliVision technology, they now have more valuable information to better run theme park operations.
Another important project was related to traffic monitoring. Throughout the United States, in almost every state, there are smart cameras running IntelliVision technology. Around 15,000 cameras have been deployed on US roadways to better control traffic lights and intersections. This was a seamless and behind the scenes project that really helps people today, even if they don’t exactly know it.
Author edit: My apologies for my disjointed wording above regarding the term 'specificity'.
My intention was to make a point about the vagueness of both of the two things that he is 'most proud of'.
i.e. not specific at all.
i.e. if generalized nothing-speak is all you got after 12 years, stop bragging.
UM
Undisclosed Manufacturer #3
Nov 11, 2021One company is irrelevant in video surveillance. The other company pretends to be a big shot. The combination is weird.
That's an astute observation and funny!