Axis and Milestone on the Recession's Impact

Author: John Honovich, Published on Mar 01, 2009

As the largest manufacturers of IP cameras and open VMS software, Axis and Milestone are key forces in the video surveillance market. Recently, Axis and Milestone provided interviews to Security Products on the economy:


For those interested in hearing more about the recesison's impact on video surveillance, I encourage you to listen to those podcasts. In this report, I review and comment on the key claims made by Axis and Milestone.

Milestone Outlook on the Economy

Milestone's executives key points:
  • Q4 2008 growth was soft: slowed to 35%
  • January 2009 slowed further to 25%
  • Sales pipeline for Q1 2009 looks solid
  • Seeing slowdown in some new buildings
  • Municipal investments should increase due to stimulus

Milestone's growth has slowed significantly. In October 2008 at MIPS Copehagen, Milestone reported growth rates of 60%+. In a 6 month period, growth reduced about 40%.

This is another example of why I contend that convergence is slowing. Imagine analog and IP are two runners. Analog is far ahead of IP. The only way for IP to catch up is to run far faster for a long period time. What's happening now is that while both runners are slowing, IP is slowing far more significantly.

I would be very impressed if Milestone can hold 25% growth for the remainder of Q1 2009.  The problem is not Milestone specific but a fundamental issue of the rapidly declining world economy that will hurt the industry for at least another year.

That being said, it is great that Milestone quantifies their performance. As a private company, they have no obligation to do so. However, their willingness to do so is a help to the entire industry.

Axis Outlook on the Economy

Axis' GM key points:
  • Video surveillance is not recession proof
  • Retail, banking, casinos are being hit hardest
  • Analog affected more than IP
  • IP is benefiting from lower Total Cost of Ownership
  • Expect to see consolidation with larger providers come out stronger

I am puzzled by Axis' contention that analog is more affected than IP. Considering Axis steep drop in growth (only 9% in Q4), their own results do not support that. Moreover, analog companies are not reporting drops anywhere near as steep as the IP video companies. 

I find Axis' claim of lower TCO to be especially unbelievable. Last year, Axis claimed that systems of 40 cameras or more has a lower TCO (based on a study they paid for). In this interview, Axis does not even make that qualification. How did IP cameras TCO suddenly become so strong?

Consider that just last month, IMS Research released a survey of integrators where the overwhelmingly majority listed IP cost as the number #1 barrier. We have analyzed and discussed in depth as the number 1 issue for IP.

Most Recent Industry Reports

Dahua Removes Auto Rebooting on Oct 17, 2017
For years, Dahua has automatically programmed its IP cameras to reboot weekly, a highly atypical and questionable practice. Following IPVM...
Deep Learning Tutorial For Video Surveillance on Oct 17, 2017
Deep learning is a growing buzzword within physical security and video surveillance. But what is 'deep learning'? In this tutorial, we explain...
Multipoint Lock Access Control Tutorial on Oct 17, 2017
Doors are notoriously weak at stopping entry, and money can be misspent on wrong locks that leave doors quite vulnerable. While closed and locked...
Buy From B&H, Ship Direct From ADI on Oct 16, 2017
B&H, one of the largest online sellers of video surveillance equipment to end users, regularly purchases their video surveillance equipment...
Competing Against Siemens on Oct 16, 2017
Siemens entered the integration business with 15,000+ customers, through their acquisition of Security Technologies Group in 2001. Since that time,...
Geovision GV-EDR2100 Tested Vs Hikvision on Oct 16, 2017
A number of ADI's top selling IP cameras are, at least surprisingly to us, from Geovision. We recently bought and tested the Geovision EDR2100...
Top Problems Searching Surveillance Video (Statistics) on Oct 13, 2017
When crimes, accidents or incidents happen, the video surveillance system is a key component in finding out and proving what actually...
Exacq M Series Low Cost NVR Tested on Oct 12, 2017
With recent cyber security issues hitting NVRs and cameras from low cost leaders Dahua and Hikvision, users are increasingly seeking alternatives...
Long Time Industry Exec Leads New Security Franchise Offering on Oct 12, 2017
John Nemerofsky previously built and sold a $150 million dollar integration business, and then was VP of Niscayah from its spinout of Securitas,...
PoE Powered Access Control Tutorial on Oct 12, 2017
Powering access control with Power over Ethernet, like for IP cameras, has become increasingly common.  However, the demands for access power are...

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