Are You Too Stupid to Buy IP Cameras?

Author: John Honovich, Published on Jan 12, 2009

Why are 4 out of 5 of you still not choosing IP cameras? The IP video vendors keep trying to educate you. Is it that you are clearly that stupid to not get it? Or do you just shut it out?

A Serious Issue

I believe a fundamental cultural and strategic issue is at the heart of this discussion. I think the IP Video industry has fundamentally misinterpreted the real issues involved - it's the lack of business value of IP video, not the transaction cost of getting educated.

The Importance of Education

Anywhere you go in the industry you hear talk about the importance of education. The lack of education is holding IP back. We need to get more people trained. Once they are trained, they will move to IP. Nothing is holding back IP except for awareness.

What They Mean is - You are an Idiot

I talk to executives all the time and there is a clear negative undercurrent to this seemingly positive message.  New entrants, especially IT people, tend to think that  security people are idiots - stupid, lazy people that neither have intelligence nor drive to understand new and better technologies.  I am not saying everyone does and I am not here to call people out. However, I am sure this a very widespread belief that impacts the strategy and marketing of IP video.

A Dangerous Cop-Out

I see two major dangers here:

  • IP video vendors build flawed strategies based on an assumption that makes them feel better but misses the real customer problem.
  • Traditional end users feel mistreated and marginalized, creating more cultural and political problems in migrating to IP video.

The Business Barriers for IP Video

When business make decisions, there are two fundamental economic components: (1) transaction costs and (2) direct costs.  If you are a PC user and you buy a Mac, the cost of the Mac is a direct cost while the cost to learn how to use a Mac is the transaction cost.

Education is a transaction cost. People need to learn about the value and operations of IP Video before buying and deploying it.

Some decisions will not be made when the direct costs are justifiable but the transaction costs are too high. This is when reducing transaction costs (like education) make sense.

The problem is the direct costs of IP are still too high to justify for the majority of users. It does not matter how much you educate them, most rationale buyers cannot make the business case for IP video - period.  

As such, education may be nice but it is not the key to success. We have debated this point extensively both in the IP camera problem discussion and the IP video advantages and disadvantages review. Read those threads for background information.

The Future

The easy victory and dominance of IT is not happening. Even before the global recession, it was clear that convergence was moving at a slower than projected rate. Now, it will take even longer.

*** *** * *** ** * ** *** ***** *** choosing ** *******? *** ** ***** ******* **** ****** ** educate ***. ** ** **** *** *** ******* **** ****** to *** *** **? ** ** *** **** **** ** out?

A ******* *****

* ******* * *********** ******** *** ********* ***** ** ** the ***** ** **** **********. * ***** *** ** ***** industry *** ************* ************** *** **** ****** ******** - **'* the **** ** ******** ***** ** ** *****, *** *** transaction **** ** ******* ********.

The ********** ** *********

******** *** ** ** *** ******** *** **** **** ***** the ********** ** *********. *** **** ** ********* ** ******* IP ****. ** **** ** *** **** ****** *******. **** they *** *******, **** **** **** ** **. ******* ** holding **** ** ****** *** *********.

What **** **** ** - *** *** ** *****

* **** ** ********** *** *** **** *** ***** ** a ***** ******** ************ ** **** ********* ******** *******.  *** entrants, ********** ** ******, **** ** ***** ****  ******** ****** are ****** - ******, **** ****** **** ******* **** ************ nor ***** ** ********** *** *** ****** ************.  * ** not ****** ******** **** *** * ** *** **** ** call ****** ***. *******, * ** **** **** * **** widespread ****** **** ******* *** ******** *** ********* ** ** video.

A ********* ***-***

* *** *** ***** ******* ****:

  • ** ***** ******* ***** ****** ********** ***** ** ** ********** that ***** **** **** ****** *** ****** *** **** ******** problem.
  • *********** *** ***** **** ********** *** ************, ******** **** ******** and ********* ******** ** ********* ** ** *****.

The ******** ******** *** ** *****

**** ******** **** *********, ***** *** *** *********** ******** **********: (1) *********** ***** *** (*) ****** *****.  ** *** *** a ** **** *** *** *** * ***, *** **** of *** *** ** * ****** **** ***** *** **** to ***** *** ** *** * *** ** *** *********** cost.

********* ** * *********** ****. ****** **** ** ***** ***** the ***** *** ********** ** ** ***** ****** ****** *** deploying **.

**** ********* **** *** ** **** **** *** ****** ***** are *********** *** *** *********** ***** *** *** ****. **** is **** ******** *********** ***** (**** *********) **** *****.

*** ******* ** *** ****** ***** ** ** *** ***** too **** ** ******* *** *** ******** ** *****. ** does *** ****** *** **** *** ******* ****, **** ********* buyers ****** **** *** ******** **** *** ** ***** - period.  

** ****, ********* *** ** **** *** ** ** *** the *** ** *******. ** **** ******* **** ***** *********** both ** ***** ****** ******* ************* ***** ***** ********** *** ************* ******. **** ***** ******* *** ********** ***********.

The ******

*** **** ******* *** ********* ** ** ** *** *********. Even ****** *** ****** *********, ** *** ***** **** *********** was ****** ** * ****** **** ********* ****. ***, ** will **** **** ******.

[***************]

***** * ** *** ********* ********** *********, * **** * key ******* **** **** ** ** ************:

Small ****** ***********

***** *********** ** * - ** ******* *** ******** ***** revenue ************, ** * ***** ** *** ******* ******, **** is **** **** ****. **% ** *********** *** **** ******** in ***** ** ****** ***** (***** **** ******, ***** ********* shop ** *****, ***** **********, **** ********* *********, ***.) *** revenue ********** ** ********* ******* **** **% *** **'* ****** near **%.

***** ******* *********** ****:

  • *****, **** ***** ** ***** ********** *******
  • *********** ** ********

** ***** ********* *** **** ** **** ** ***** ******. IP ***** ************ ******** *** ***** ********* *** ***/*** ********** are ******** *** ******* **** *** ********** *** *** **** market *******. ** ******* *** **** ***** ******** *** ********* but **** ** ********* *** *** *** ******* *****.

*** **** ************ ** **** ** ***** ****** *** ****** from **** (************ ******, *** ******* ****'* ********). ** *********** and ******* **** ** ****** **** **** ******, **** **** to **** ** ***** ******* *** ******.

Existing ***********

**** ************* **** **** ** ***** **** **** ****** ****. It ** ********* ************* ** *** **** ** ****** ***** them *** ** ** *** ** ** ** * ******** system. *** *********** *******, **** ************* **** * ****** **** interface ** ****** ***** ***** ************. ***** **** ********* ****** throw *** *** **** *** **** ** *** **** ** spend ******** ** ******** ** ****, **** **** ****** ********** ** **** **** ***** ******** DVRs.

** ******** ** ** ****** ********* ***, ********* *** ***** management ******* (****/****) *** ******** ** ***** *** ************ ** legacy *******. **** ** ******* ** *** ******* *** **** a ********** **** ** * ***** ** *** **** ** IP ***** ******* *** ***** ** ****. ***** ** *********, vendors *** *** ** ******* ****** **** ********. *****'* ************** ** ******* ****. ** *** **** **** ** **** will ** ** *********** ********.

Broader ******

* *** ** ** ***** ******* **** ****** ** ****** - ********* *******, ****** *********, ****** ******** ******** ******** (****, Mobotix *** ********** *** **** ******** ** ****). **** *** only ********** *** ******, ** ****** **** ** ****** ****** that *** ***** ** **** ****** ********** ** * *********.

** *******, *** ****** ***** ******* / **** ******. ** a ******, ******** ******** *** ************ ***** **** ** *** tolerate **** ****** ********. *******, ** *** ***** ***** **** it *** ******** **** ******.  **** ****** *** **** ** features *** ***** *** ***** ******** (**** ** ** *****) but **** *** **** *** * **** ******/********** ******* ********.

 

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports on Standards

IR Surveillance Guide on Jul 31, 2017
Infrared (IR) has become an increasing core component to video surveillance systems. In particular, the expansion of integrated IR cameras that...
Access Control AHJ Nightmares on Jun 01, 2017
For access control jobs, a single person can be the difference between finishing a job, costing thousands in extra dollars, and being profitable...
Technician Personal Protective Equipment (PPE) Guide on May 12, 2017
Technicians encounter multiple hazards when running wires and installing security devices. Wearing personal protective equipment, or PPE, helps...
ONVIF Favorability Results on Jan 11, 2017
ONVIF has been one of the most debated aspects of the video surveillance industry. On the one hand, its aim to increase interoperability has been...
Introduction To Burglar Alarm Systems on Jan 04, 2017
While alarm systems are popular, balancing between the right level of protection, the appropriate components and an acceptable price can be very...
ONVIF Tutorial 2017 on Dec 19, 2016
ONVIF is well known within the surveillance industry as an interface to connect IP cameras and VMS systems but: Is ONVIF a 'Standard'? Why...
API / SDK Tutorial on Dec 18, 2016
While Application Programming Interfaces (APIs) are key to 'open' platforms, they are frequently misunderstood and over-hyped in physical security....
No One Should Ever Use Simplisafe on Dec 12, 2016
Simplisafe, the upstart DIY intrusion alarm system, is increasingly Public Enemy Number One in the alarm business. Recently, Security Sales ran an...
Free Online NFPA, IBC, and ADA Codes and Standards on Nov 29, 2016
Finding applicable codes for security work can be a costly task, with printed books and pdf downloads costing hundreds or thousands. However, a...
Axis: HD Analog Will Die Out on Nov 18, 2016
If you are a fan of HD analog, stock up now. Axis says the popular low-cost architecture is going to reverse course and die out in the next couple...

Most Recent Industry Reports

Avigilon CEO Attacks Asian Companies Cyber Insecurity on Aug 18, 2017
Avigilon CEO is taking aim at their Asian competitors. And he is going directly after these company's cyber security issues. In this note, we...
Sony Next Gen HD Dome Camera Tested (SNC-EM642R) on Aug 18, 2017
Sony has released their latest generation, claiming improved WDR and low light, increased IR range, and more. We tested the SNC-EM642R outdoor IR...
IP Networking Course September 2017 on Aug 17, 2017
This is the only networking course designed specifically for video surveillance professionals plus it includes live training, personal help and...
Knightscope Raises $10 Million With $3,320 Average Per Investor on Aug 17, 2017
Congrats to Knightscope. And condolences to their legion of little investors. Knightscope has disclosed they have raised $10+ million from their...
Axis and Arecont Legal Conflict Over Multi-Imager Cameras on Aug 17, 2017
Arecont threatened Axis. Axis has responded by moving to invalidate an Arecont patent. It is an important contest. Multi-imagers are Arecont's...
Directory Of Consumer Security Cameras on Aug 16, 2017
The consumer camera segment continues to grow, with new startups and models from existing players released seemingly every month. In this report we...
Cat 5e vs Cat 6 vs Cat 6a Network Cable Usage Statistics on Aug 16, 2017
Cat 5e? Cat 6? Cat 6a? What do integrators use in practice, today? 140+ integrators told IPVM. Here are the results: For those who want to...
Hikvision Responds To Cracked Security Codes on Aug 15, 2017
Hikvision has responded to IPVM's report on Hikvision's security code being cracked, both with a 2 page update to dealers and communication...
Stolen Video NVR / DVR Statistics on Aug 15, 2017
"But what happens if someone steals my recorder?" Anyone who has done more than a handful of jobs has probably heard this question several times....
Hikvision Europe Cutting Out Unauthorized End User Sales on Aug 15, 2017
The days of anyone buying Hikvision from anywhere off the Internet are numbered, at least in Europe, if Hikvision's plan comes to fruition. In...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact