Axis Boasts Kicking Arecont Out of Google

By: John Honovich, Published on Jul 11, 2016

Axis has displaced Arecont as the standard IP camera for Google, boasts Axis.

Inside, we examine Axis statement, Arecont's response and what this means for both companies.

Boasts Axis

In an internal communication shared with IPVM, Axis boasted:

In Google’s eyes, the incumbent, Arecont, failed and Axis passed this test. Because of this, Google has chosen Axis as their standard moving forward.

Arecont's Response

Arecont's EVP Scott Schafer told IPVM flatly:

We do not normally address queries like this one. Your information is factually incorrect. We recommend that you check your sources more fully. Consider getting a real quote from a reliable source from Google or Axis Communications vs. street talk and rumors.

After we emphasized that we did have a quote from Axis, Schafer refused further comment and demanded his response not be published.

However, a source close to Arecont said they were confident that future enhancements would enable Arecont to regain its position.

Cybersecurity

The reason Axis gave was a cybersecurity test:

The topic that tipped the scales in our favor was the threat of Cyber Security, the attacks that take place every second, and what that can mean to Google.

Axis has been heavily promoting cybersecurity in the past year (e.g., Axis Cybersecurity Hardening Guide).

By contrast, Arecont's most obvious limitation is that they do not support HTTPS. This is particularly important for Google as Google has been one of the world's strongest proponents for using HTTPS, with Google advocating HTTPS everywhere.

On the other hand, Axis recent critical cybersecurity vulnerability is, at least, a concern for enterprise customers and potentially a black eye. However, the Axis decision occurred before this vulnerability was uncovered.

Arecont Impact

Arecont has a slew of brand-name enterprise customers, especially in the US West near their HQ, mostly won in the 2008-2010 time frame. In that era, Arecont enjoyed a significant edge in megapixel as they were early with H.264 and rivals were slower moving to 3MP and 5MP. Also, most of those deals were lead by Nathan Wheeler, who later quit Arecont to start Network Optix and now Entropix.

The problem for Arecont today is that rivals have caught up (especially for single imager cameras). For example, Arecont's highest resolution single imager camera in 2010 was 10MP and today in 2016 it is still 10MP (see IPVM 2010 and 2016 10MP test results). Many vendors have superior image quality and lower bitrate and the Chinese are far lower in price.

Axis Impact

Axis will continue pursuing these mega enterprise deals, especially as the Chinese make revenue growth impossible in the mass market. What will be interesting to see is how much Axis critical security vulnerability impacts Arecont cybersecurity marketing as it is hard to argue leadership when pretty much every Axis camera over the past half-decade is at risk for being taken over without an upgrade.

Nonetheless, we do expect to see many more battles for 'second generation' megapixel selections for enterprises as the newer products and lower prices from the past few years push large buyers to re-evaluate 2010 era decisions.

5 reports cite this report:

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