EMC Dumps Axis VSaaS

By: Carlton Purvis, Published on Oct 15, 2013

Just two years ago, mega storage manufacturer EMC partnered with Axis to make video surveillance in the cloud go mainstream. Now, it is dead already.

In this note, we review what went wrong what and what is next, along with statements from both Axis and EMC.

Background

The concept was that EMC would provide the hardware infrastructure in the cloud to compliment Axis' AVHS software and cameras. EMC could leverage its Atmos cloud storage platform, and its own storage devices to provide a secure, enterprise class, foundation. EMC would then sell this to large integrators and/or service providers would could re-sell / re-brand it to their customer base. This would free the integrators and service providers from having to build out / maintain their own data centers / hosting.

EMC Divesting This Business

However, EMC cloud video is no more, as they confirmed to us:

"EMC is divesting our Video Surveillance as a Service (VSaaS) business in order to concentrate maximum resources and energy on core strategic initiatives. This approach allows partners to deliver these cloud-based video surveillance offerings, which are enabled by EMC, rather than EMC doing so directly. EMC is working with our partners to make sure there is no customer impact."

What Caused the Failure?

In general, VSaaS remains far more hype than reality and Axis AVHS business model (specifically, high pricing and multi-tier reselling scheme) has problems.

However, we suspect that EMC's failure was compounded by their own ambitions. As a massive company doing $20 billion annually, the company wants and needs big numbers and very fast growth. Indeed, at the initial launch, EMC made it clear that they wanted only large partners and had no interest in 'mom and pops'.

Unfortunately, neither the surveillance business as a whole, nor certainly the immature cloud surveillance space supported the type of revenue or expansion that would motivate EMC to continue. Indeed, looking at the landscape of the VSaaS market, most are small companies.

Axis Response

However, Axis remains undeterred and is continuing to go forward with other partners. They responded to our inquiry with this statement:

"The EMC and Axis hosted video relationship, while officially over, was still a fruitful one and we thank them for the collaboration and knowledge shared. During the time that we worked together to evangelize cloud technology and educate the market on the value of hosted video solutions, we learned how to best reach the market and identify the right partners to deliver hosted solutions. This led to the decision to terminate the partnership and we appreciate the journey. 

At Axis, we have refined our strategy and believe it is more powerful than ever for existing and future cloud solutions. By concentrating AVHS partnerships on physical security-focused companies like I-View Now and others we believe this will have more of an impact because they know the industry, have a pedigree in central station monitoring and hold meaningful relationships that garner respect, etc. We’ve already seen this type of relationship success with the Secure-I / ASG partnership.  

Regarding I-View Now, they have a very technically-capable development team and can spend time and effort to develop the AVHS platform into a world-class offering for our joint partners. And of course they have the sales, support and training resources to drive the business for the channel. Combine this with their existing central station monitoring platform being closely integrated into AVHS and you have a recipe for success. They have deep integrations with all major CS automation software providers and can now take hosted video into a true VSaaS environment, including services from basic video verification to complex video based monitoring services. 

These efforts over the years are bearing fruit, especially with many of our largest National Systems Integrator partners. As you know, we have worked with cloud solutions for many years and have been pushing the industry to see hosted video as a viable option for certain installations (sweet spot today = small camera counts, multiple dispersed locations). While many of the wins have yet to be made public, more and more operators have seen the potential and are positioning themselves to include this business model."

3 reports cite this report:

History of Video Surveillance on Jul 19, 2019
The video surveillance market has changed significantly since 2000, going from VCRs to ab emerging AI cloud era.  The goal of this history is to...
Genetec Cloud Tested on Aug 12, 2015
Not since Axis public and prolonged agony with AVHS, has a major manufacturer bet as heavily as Genetec is now doing on the cloud. Genetec started...
ASIS 2014 - 17 Manufacturer Tech Review on Sep 30, 2014
This long post recaps key findings from IPVM team members meeting with manufacturers at ASIS 2014 including Hikvision, EMC, Pelco, Digital...
Comments (24) : PRO Members only. Login. or Join.

Related Reports

Alarm.com Acquires OpenEye on Oct 21, 2019
Alarm.com is targeting commercial expansion and now they have a commercial cloud VMS with the acquisition of OpenEye. In this note, based on...
Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Network Optix NxWitness 4.0 Tested on Oct 10, 2019
Network Optix released Nx Witness 4.0, proclaiming new features like a deep learning analytics metadata SDK, increased H.265 support, and UX...
Milestone Has Problems on Oct 01, 2019
Milestone has problems. While the company previously excelled in the shift to IP cameras, as IP has matured and competitive differentiation has...
China Enforces Barriers Against Foreign AI and VSaaS Providers on Sep 30, 2019
While AI and VSaaS is the future of video surveillance, these are obstructed to foreign firms in China (the PRC), where authorities are tightening...
Consumer IP Camera Analytics Shootout - Arlo, Google / Nest, Amazon / Ring, Hikvision / Ezviz, Wyze Cam, Yi Home on Sep 26, 2019
AI analytics are hitting the mainstream in the consumer camera market, with entrants Wyze and Yi Home releasing free people detection on their...
Directory of 70 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
How Cobalt Robotics May Disrupt Security on Sep 13, 2019
While security robots have largely become a joke over the last few years, one organization, Cobalt Robotics, has raised $50+ million from top US...
Genetec Stratocast VSaaS Tested on Sep 05, 2019
The VSaaS market is rapidly expanding in 2019, with Verkada, Meraki, Eagle Eye, Avigilon and numerous startups growing their market share. When we...
UK Facewatch GDPR Compliance Questioned on Aug 27, 2019
Even as the GDPR strictly regulates biometrics, a UK company called Facewatch is selling anti-shoplifter facial recognition systems to hundreds of...

Most Recent Industry Reports

Government-Owned Hikvision Wants To Keep Politics Out Of Security on Oct 21, 2019
'Politics' made Hikvision the goliath it is today. It was PRC China 'politics' that created Hikvision, funded it, and blocked its foreign...
Integrated IR Camera Usage Statistics 2019 on Oct 21, 2019
Virtually every IP camera now comes with integrated IR but how many actually make use of IR or choose 'super' low light cameras without IR? In...
Alarm Veteran "Demands A Criminal Investigation" Of UL on Oct 18, 2019
The Interceptor's Project pressure against UL continues to rise. Following Keith Jentoft's allegation that "UL Has Blood On Their Hands", Jentoft...
Camect "Worlds Smartest Camera Hub" Tested on Oct 18, 2019
Camect is a Silicon Valley startup that claims the "Smartest AI Object Detection On The Market", detecting not only people and vehicles, but...
Hikvision Global News Reports Directory on Oct 17, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Camera Calculator V3.1 Release Improves User Experience on Oct 17, 2019
IPVM has released a new version of our Camera Calculator, V3.1, with significant user experience improvements, a new development plan, and an...
Securing Access Control Installations Tutorial on Oct 17, 2019
The physical security of access control components is critical to ensuring that a facility is truly secure. Otherwise, the entire system can be...
Access Control Course Fall 2019 - Last Chance on Oct 17, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
US DoD Comments on Huawei, Hikvision, Dahua Cyber Security Concerns on Oct 16, 2019
A senior DoD official said the US is "concerned" with the cybersecurity of Hikvision, Dahua, and Huawei due to "CCP" (China Communist Party)...
Pelco Sarix Pro3 Camera Tested on Oct 16, 2019
Pelco has released their Sarix Professional Series 3 cameras, claiming "more security detail in challenging scenes with excellent low light and...