Milestone is now competing against... Milestone's own spinout Arcules.
New IPVM testing shows that Arcules has incorporated a substantial amount of Milestone technology and is offering a VMS that is, in many ways, quite similar (and in parts identical) to Milestone's own VMS XProtect.
This is highly unconventional. While most VMSes are expanding into cloud offerings, none are taking this approach. For example, Avigilon and Genetec have developed and sell their cloud offering internally while JCI / Exacq has acquired (i.e., Smartvue) and is combining this with Exacq's VMS, etc.
So is Milestone creating a separate company that competes not only against Avigilon, Exacq, Genetec, etc. but Milestone itself too a smart move? Inside this note, we examine "The Innovator's Dilemma" contrasting the tradeoffs of these approaches.
Arcules / ********* ***********
******* ** ***** ** ***** *** *********, having ********** **** **** *** ** Milestone ** ****.
*******, ******* ** ******** **** *********, **** its *** ********** ****. *** ***, Andreas *********, [**** ** ****** *********] was ********** * ******** ** ********* but **** ** ******* ** ****. **** ****, Arcules added ******** ********* **** ********* ** *** [link ** ****** *********] *** **** ***** ** Chief ******* ******* [**** ** ****** available].
******* ** ******** ** *** *** (competing ******* *********) ***** **** ********* industry ******** **** ****** [**** ** longer *********] *** **** **** [**** no ****** *********] (**** ******** ** Milestone), **** ******** [**** ** ****** available] (******** ** ********), ***** ***** [link ** ****** *********] (******** ** AMAG) *** ****** ****** [**** ** longer *********] (******** ** ********).
Arcules **** ***** *** ** *********
*******' ***** ****** *** ****** **** **** the **** ******* **** *** ****** at *********, ** *** *** ***** demonstrates:
*** ****** *** '****' ** *******, it **** ** **** **** *** looking ** ********* ********. ********** *** existing ********* *****, **** **** ******* a ***** ** ******* *** ********** when *********** ****** / ********* ** Arcules.
Innovator's *******
"*** *********'* *******" ** * **** **** **** has ****** *** ** *** ******* works ** ********** '**********'. *** ****:
************ *** **********, *********** ********* *** do ********** "*****" *** *** ***** lose ***** ****** ********** – ** even **** – ** ***, ********** competitors **** *** **** **** *** market
**** ** * **** *** ********* VMS ******** ********* *** ************ **** addressed *** ***** ********* ****** ** selling ******** ********, *** ****** *** shift ** ******* ***** ******** / ******* services.
*** **** ****** **** ********** ******:
***** *** ********** ********** **** ** autonomous ************ **** *** ** ******** with ***** **** *** ***** ******** sets
***** *** ********** ************ ** ******* all ** *** *******'* ********* **** needed *** *** ******* ** **** sure *** ********* *** ****** **** not ***** ** *** *******
**** ** ******* **** ********* *** done ****.
Sustaining ** ********** **********?
*** ******** ********, **** ****** *** Innovator's *******'* ********* ** ******* ***** VMS / ***** ** * '**********' or '**********' **********. ********** ***********, **** argue, ******* ********** ***** ********** **** undermine ****. * ********** **********,**** ***, "**** **** ******** ****** ** the **** ** ** *********’* ******** customers" ***** * ********** *** *** "initially ********** ******** ** **** ** an *********’* *********"
*********, *** ******* ****** *** **** continues ** **** ***** ** ******** for ***** ***** (*** ** *********, security, *************, ***.).
** ***** ** * ***** ********** innovation ** **********, **** ***** **** that ***** *** *** ******** **** are ******, ******* ** *** **** market ********** ********** **** ********** **** overtake *******, *********, ***.
Avigilon *** ******* ***********
******** *** ******* **** ***** * much **** ************ ********, ******, ************ Blue *** **********, ** ***** ******** product ******** *** **** ******* ***** existing ***** ********. *** ********** ******* using ******** *&* *********, ******** ***** force *** ******** *******. *** ************* center ****** ******* *** *******'* *&*, sales ****** *** ******* *** ****** that ********** *** ******** ** *****, which ** ***** *** **** ********** than ***** ******** ******** *******.
Eagle *** *** ******* ***********
** ********,***** ***, *** *+ ***** *** ********** (****** **** **** ** **-***** management)********* *** ******** **********. ** *** plus ****, *** ********* *** ***** from ********** ** ************ ********* *** business ********** *** *** ******** *********. They *** ***** * ******** ********* around **********, ********* *** ******* *****. On *** ******** ****, **** **** the *********, *****, ******** ****, ***. that ***** ********** ****.
******** ** **** *****, ***** *** has *** ********* ** ******** ~* years ******* **** *******, ****** ******* has *** ********* ** ********** **** 2 ***** ********** ***** ********** ************* and *** **** **** **** ******** customers. ***** ***, ** *** ** themselves, **** ** ** *********** ***********.
*******, ** *********** * '******', ********** a ********** ********* ** ***** *** and *******, ** *** ***** **** they **** *** ********* ** ** incumbent (***** / ********* *** ******* in **** ** ******** ** ******** to *********'* **) *** *** ******* to ******* ** * *** *******.
Milestone ***********
*** *******, ***** ********* *** *********'* parent ***** **** *******, ** ******* 'wins', **** '***'.
*******, ******* **** ********* ***, ** particular, *********'* ***** ****, ** * strange *********. ******* ** *********** ***** with * ***** ******* ** ******** that **** **** **** ******* *** to *********'* *** *********. **** ***** undermine *********'* *** ******* ** **** as *********'* ********** *** ******** ** the ********, ********* **** ********* **** have ** ** *********** ** ******* against.
** *** ******* ****, **** ******* still ***** ** ***** *** *** cloud ********** ******, *** ********* ********* that ******* *** ** ****** ********* built-in ***** ********* ****** ** * complicated ******* ** *** ***** *********. If ********* / '**' ***** ***, like **** ** *** ******** *******, it ***** ******* ******* * ***** positive ************** ******* ***** ****** *******.
Arcules *********
*******, ******* ***** *** * **** way ** ** *** ********* ** not ******. ******* ******** ***, **** ********** [link ** ****** *********], ******* *********** earlier **** ****. **** ******** ******* ********* [link ** ****** *********] ** ***, *** needs ** ******* ******* *** *******'* ambitious, ** ** **** **** ** 'bold', ****. **** ***********, **** ******* CTO *** *** (***** / *********) brought ** **** **** *** *** to *** ******** *** **** * sharp ******** *****.
**** *********** *** ********* *** ***** to **** ******* (**** **** ******** selling **** ****), ******* **** **** ** execute.
Poll / ****
*******
*******, ** *** **** ** ******** for *** ****** ** *** ********. The **** ********* **** *** ********* on ********* ******** *** ********* *** better.
*** ***********, *** **** ******* ********* and *******, *** **** *** ******** and ********** ****** *****, **** ** a *** ******* ** *** ******** over *** **** *** *****.
I voted "Yes", but mostly in a "they probably won't go bankrupt" way. I don't think the Arcules team as it currently stands is positioned to develop and market a competitive VSaaS offering. They will likely get a lot of me-too business from the current Milestone channel from the name recognition and familiarity factor. But I think they will be forever in Milestone's shadow trying to build "Milestone in the cloud" instead of an independently architected VSaaS platform.
But I think they will be forever in Milestone's shadow trying to build "Milestone in the cloud" instead of an independently architected VSaaS platform.
What would you want to do as an 'independently architected VSaaS platform?
What would you want to do as an 'independently architected VSaaS platform?
For starters, not build a sort-of Milestone-in-the-cloud.
Maybe I missed in the Arcules test report, but is there any kind of robust HTML5 support? A really good/elegant app? Robust support for where your data is stored to (regions) and/or retention policies?
If you took out the Milestone association, would Arcules even be noteworthy?
It has an HTML5 web client available through the Web Portal which allows for live and recorded remote viewing:
However, the Thick Client makes for a better experience for heavy video users.
When you deploy a Gateway you have the choice to store the data in a single close geographic region to the Gateway, or multi-region diverse data center backup.
If you took out the Milestone association, would Arcules even be noteworthy?
Uh?
If you took out the Genetec association, would Stratocast even be noteworthy?
If you took out the Hikvision association, would Ezviz even be noteworthy? Etc.
Such associations bestow advantages.
But leave Milestone out, any company that did with Arcules did in 17 months would be noteworthy. Of course, they did that because that had Milestone's IP and Canon's money, so on a purely academic / technical level, it may not be that impressive, but as a practical business force, I do think it's noteworthy. There's lots of reasons it could still go sideways but I think they have shown enough to be a real player.
In the case of Stratocast, that is a product of Genetec, marketed, sold, and supported by Genetec. It has the benefit of Genetec's engineering and sales departments, among other things.
Arcules is its own company, at least for the most part. Sure, they got some source code from Milestone, but they have to build everything else themselves.
There's lots of reasons it could still go sideways but I think they have shown enough to be a real player.
Take any random halfway decent group of developers and give them the same head-start advantage and they could do something similar in the same time frame. Arcules as an independent entity has not yet done anything noteworthy. They started with a huge tailwind, lets see if they can keep that momentum.
Take any random halfway decent group of developers and give them the same head-start advantage and they could do something similar in the same time frame.
But that's life. It's, e.g., why huge tech startups are disproportionally founded by people who come from well to do families. This is the corporate analogy of that.
And the flipside is that this is noteworthy and newsworthy since almost no one in this industry gets that 'head-start advantage' that Arcules has. I am not arguing that it's fair or nobel or heroic, simply that it puts them in an advantageous position to capture business in this market.
For those of you who like Glassdoor reviews, Arcules are hysterical. The top 'cons' employees list:
Free chocolate, soda, ice-cream, cakes, and donuts can pose health risks, especially for someone who loves sweets.
There is always so much candy and cake available, I’ve definitely gained some weight. But at least there is a nice gym downstairs should the motivation ever strike me to actually hop on a stair master.
getting hit with nerf balls lol
The cloud / VSaaS space has desperatly needed a thick client approach which utilizes a common surveillance application.
This will be a hit.
I think that there is a rapidly growing customer group that expects a cloud offering. If Arcules can deliver a really solid offering while being honest about what the customer expectations should be (ie. bandwidth constraints, etc.) they should do very well. Having them as a separate company from Milestone allows both groups to focus on their target audience while also allowing the true numbers and performance of both companies be visible.
Why can't the cloud be an extension to the VMS platform? Bolt on cloud solutions to the current platform and add cloud features like P2P, cloud backup and central health monitoring. This way you are not excluding your current customer base from the cloud offering and customers then don't have to make a choice between cloud or local VMS.
I would be lot more excited if I knew which VMS you where referring to :)
I would be lot more excited if I knew which VMS you where referring to :)
Milesight... it's definitely Milesight.
Might be the first post of yours I completely agree with. Totally agree. Cloud should be an enterprise layer over existing infrastructure and offer an extension, not replacement of, features, integrations, etc.. Everyone's missed this for years.
My current understanding is that most SMB's only have the upload bandwidth to support a few cameras. Is this the VSaaS's target market or are they going after enterprise's with the belief (hope) that they will shell out for the huge bandwidth needed for hundreds of cameras uploading to the cloud? Do these customers understand these costs? Am I missing something here?
*Enterprise Customer*
Our VMS sales engineer and business development individuals have actually been instrumental in squashing ITs hopes and dreams of migrating physical VMS servers and storage to the cloud by providing real numbers to the upload, download, and cloud storage requirements for our deployments. However, I suspect that has more to do with personal integrity than hunting for revenue, probably helps that we have to buy through an integrator and not direct from them.
How cute...another company to jump in on the me-too rmr model. At what point are companies/customers going to say enough is enough?
ms office seems to be going back to the perpetual option.
Example:TeamViewer keeps trying to get me to go to a subscription model when I've got my perpetual model just fine. They say it's to keep updates going, I call bs...they did it just fine for years and years...yet the software has issues every month whether monthly or perpetual.
If Arcules sells directly to end-user, than it is right idea to separate from Milestone.
If their business model is exactly the same, than it is bad idea.
Murat,
Arcules indicated they were selling through channel partner integrators, just like Milestone. I have followed up with them to make sure that has not changed. I will post their response here.
