Axis Acquires Retail Analytics Developer Cognimatics

By: John Honovich, Published on Jun 03, 2016

Two acquisitions in a week and the third in three months for Axis. At this point, it is pretty clear - Axis is on a buying spree.

On the other hand, they are buying pretty small companies.

In this note, we examine Axis acquisition of retail analytics company Cognimatics, looking at how this impacts Axis and the market.

*** ************ ** * week *** *** ***** in ***** ****** *** Axis. At **** *****, ** is ****** ***** - Axis ** ** * buying *****.

** *** ***** ****, they *** ****** ****** small *********.

** **** ****, ** examine**** *********** ** ****** analytics ******* ***********, ******* ** *** this ******* **** *** the ******.

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

Cognimatics ********

************* * ***** ******* based ****** ********* ********. While ******* *** *** disclosed, ***** **** **** sell ******** *** **** 12 *********, ** ***** expect ******* ** ** under $* ******* *** (comment ***** ***** ******* ~$2 *******).

**** ** ***** ********* video *** ***** *** are *** ******** **** them:

***** ********* ******** ** loaded ** ******** ** third ***** ******* *** their ********* ******** *** be ****** **** ********** or (**** ******) ********** into *****).

Axis *** ********** **** **** ********

*********** *** **** ** Axis ******* *** ~** years *** *** *** of *********** **** ********.

*** *********** ** ********* Axis **** **** ********, just * ** ****** walk ****:

*********** *** **** **** most ********* ****** ********* / ****** ******** *******. While *********** *** **** partnerships **** ***** ****** manufacturers (*.*., *******, *******), Axis *** ****** **** their #* *******.

What **** ** ****?

*** ***** **** ** not **** **** ******** Cognimatics *** **** **** waited ** ****. ***** ***** location, ***** *********** *********** (e.g., **** **********), *** typical *** **** ****, many ****** ******* **** were ******* **** ** Axis. *** **** **** not *** **** ****** problems.

* *****. * *** months ***, ** **** talking ** * ******* retail ********** ** *** of **** *** ******** who ****** ** *** Cognimatics *** **** **. First, ** ****** ********** within *** *** ******* asking ***** ***** ***********, who ***** ******* *** Cognimatics. **** **** *** sure ***** ******* *** integration *******. ** ** called **** ***** *** goal *** ** *** Axis *******. *** ***** Axis ******** *** *** know ********. **** **** call ***********. *** ****** at *********** **** ****** on ******** ** ***********. And **** ** ** did *** ******* *** integration *******, ** *** clear **** **** ***** have ** ** **** separately **** ***********, ****** than ****** ******* ****, etc. ** ******* **** up.

Axis **** ********* ******** ******

**** *** *** *** an **** ********* ******** for ~ * *****. It ** ************** *** best, **** ******** **** platform *** **** * failure. ***** **** *** get * *** ** partners ** **** **, usage *** ********** *** and *** ********** / using / ******* ******* was ***** **********. **** with * ***** ******* like ***********, **** *** a *******.

Benefits ** ****** ***********

****** *********** ***** * lot ** *****. *********** is ****** * ******* for **** *******. ***, it *** ********* ** that. **** *** ******** sell **. **** *** directly ******* **, ***.

**** *********** *** ************ been ***** ********* (** the ***** ** ******** of ******* *** ******). That ******** *** ********* supporting * ***** ******* who **** **** ********. Now **** *********** ** part ** ****, ** think **** ****** ** able ** ****** ******* to **** **** **** Axis ******* *** **** to ******* *** ******* that ****** ******** ******** is *** ******* ***** given **** *** ****.

Outlook - **** *********

*** ***** ** *** clear. **** ** ***** out *** ****** ***** complementary ***** ** **** them **** ** ******** open ******** ******* **** more ** ** ***-**-*** solution **** ******* **** end ***** ******* (***** acquisitions ** *** - **** ******** ***** ********* Firm *********** ******** ******** ************ 2N).

** **** *** *** enough ** ***** ************* components, ** **** **** (** least ********) **** ****** **** against *** ******* **** of *** *** ** mid ****** ****** **** the ****** ** ********* and ******* *************.

Comments (15)

It's an expected news, and I fully agree with the sentence "The story here is not that they acquired Cognimatics but that they waited so long".

The question now is : what's going on with the Open Analytics Platform Program ?

For us as an integrator, Axis is a company we just don't want to deal with. They sell their cameras all over the place, tell customers to buy their cameras direct from other places and encourage them to install them themselves, and their expensive. I know we're probably a minority and there are lots of Axis dealers and customers. Just couldn't help throwing out what immediately came to my mind.

The other thing that came to my mind is, why was Axis buying them and not Canon?

The other thing that came to my mind is, why was Axis buying them and not Canon?

That part seems sensible to me. Cognimatics directly slides into Axis application platform, while Canon video surveillance does not have such a framework. Also, it seems to build strength upon strength with Axis rather than shift things under Canon direct. Related: Axis / Canon Conflict

"They sell their cameras all over the place, tell customers to buy their cameras direct from other places and encourage them to install them themselves, and their expensive."

Unfortunately, I agree, the margins on Axis products are slim simply because there is zero exclusivity or loyalty. However, they truly do make great products and I'm very impressed with their maneuvers as of late. This is one more purchase that I see as being beneficial to them if executed properly. In some ways the "open platform" nature of Axis has to be painful for them as they have had to neglect certain value adds so as not to tread on their partners.

The other thing that came to my mind is, why was Axis buying them and not Canon?

Because Axis was offering them a better deal. ;)

what's going on with the Open Analytics Platform Program ?

Jean-Baptiste, as an Axis partner, shouldn't you know? ;)

I passed that question along to Axis to see what they have to say.

One thing is clear is that the open platform, which I am pretty sure they will keep, is going to have to compete against Axis own analytics now (that includes Citilog, Cognmatics that they now own and Digital Barriers that they now OEM).

Rumor is Axis has been told by Canon to spend the cash that was slated for dividends on acquisitions to punish the firm holding the remaining stock.

That does not make sense to me. If they really wanted to spend cash, it would be a lot more efficient operationally to buy one big company rather than 3 little ones that now all require separate integration.

I do not know what Axis strategy is here, but it seems like a way of simply strengthening areas complimentary to their core business, which is weakening.

Like who and why? Their current approach gives them the much needed domain knowledge with limited risk.

...to punish the firm holding the remaining stock.

Elliot?

Correct. The idea is to limit the up-side for Elliot Mgmt to encourage them to sell their 10.9% of Axis stock.

Who would have thought that they were long term investors?

You would think they need the cash; surely there are other deals out there waiting to be held up...

I would just like to point out that it is incorrect to call it the Open Analytics Platform. This pre-supposes that all applications run on the camera will be analytics. The official Axis name for the platform is ACAP, or Axis Camera Application Platform, which is broader in meaning and more accurate.

To answer the obvious question about what other types of application there might be, I provide, as an example, our own TRINITY Direct To Storage system architecture, with it's COLDSTREAM application running on the camera, writing directly to our COLDSTORE storage hard disk array, thereby negating the need for an NVR and with a choice of third-party client systems (which include PSIMs).

There are other application types under development too (which I can't currently discuss), so do not assume that the only applications run in the camera will be analytics. They will be by far the most common application type of course, but not the only ones.

Just FYI: I represent, Veracity, the manufacturer of the TRINITY, COLDSTREAM and COLDSTORE products.

Financial numbers of Cognimatics

Financial numbers of AXIS

Andrius,

Thanks! If I read that correctly, Cognimatics' revenue is the realm of a few million USD, which would make sense to me considering they have a dozen employees and sell software only.

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

RealNetworks SAFR Facial Recognition Profile on Sep 25, 2019
RealNetworks entered the surveillance market by giving away their analytics to schools for free, and is now targeting large commercial users with...
Hikvision Acusense Analytics Tested on Sep 23, 2019
Hikvision touts "The Magic Behind It All" in their new Acusense line are 'deep learning algorithms' inside these cameras and recorders. But how...
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...
Vivotek "Neural Network-Powered Detection Engine" Analytics Tested on Sep 17, 2019
Vivotek has released "a neural network-powered detection engine", named Smart Motion Detection, claiming that "swaying vegetation, vehicles passing...
AI Video Surveillance (Finally) Goes Mainstream In 2020 on Sep 03, 2019
While video surveillance analytics has been promoted, hyped and lamented for nearly 20 years, next year, 2020, will be the year that it finally...
Scylla AI Video Analytics Company Profile on Aug 29, 2019
Scylla, an AI analytics startup, says they are targeting 1 Billion dollar valuation in 5 years and it "is not rocket science" to detect weapons and...
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...
Anyvision Facial Recognition Tested on Aug 21, 2019
Anyvision is aiming for $1 billion in revenue by 2022, backed by $74 million in funding. But does their performance live up to the hype they have...
Verkada People And Face Analytics Tested on Aug 16, 2019
This week, Verkada released "People Analytics", including face analytics that they describe is a "game-changing feature" that "pushes the...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...

Most Recent Industry Reports

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...
IPVM Camera Calculator User Manual / Guide on Oct 16, 2019
Learn how to use the IPVM Camera Calculator. The guide below includes instructions, images, gifs, and videos demonstrating and explaining the...
Altronix Claims Tango 'Eliminates Electricians' on Oct 15, 2019
Power supply provider Altronix claims its new Tango power supply 'eliminates the need for an electrician, dedicated conduit and wire runs'. In...
Pelco CEO Out, Seeking New Industry CEO, New CEO Found on Oct 15, 2019
Just 2 months after Pelco was sold, Pelco's CEO is out, with Pelco bringing in an outside President and searching for a new CEO from the industry,...
Hikvision Dissolves North American Business Unit, Splits Canada and USA on Oct 15, 2019
Hikvision has dissolved its North American Business Unit, splitting up US and Canada operations as the PRC-government owned manufacturer faces...
Camera Focusing Tutorial on Oct 14, 2019
Camera focus is fundamental to quality imaging. Mistakes can significantly reduce details, making cameras less effective. In this guide, we...
"UL Has Blood On Their Hands" Alleges The Interceptor / Keith Jentoft on Oct 14, 2019
"UL has blood on their hands" alleges Keith Jentoft of "The Interceptor Project". We examined The Interceptor in-depth last year, see: The...
Access Control Course Fall 2019 - Last Chance on Oct 14, 2019
Register Now - Fall 2019 Access Control Course. Thursday, October 17th is the last day to register. IPVM offers the most comprehensive access...
Axis HD Analog Encoder Tested on Oct 11, 2019
Two years after declaring "Everything is IP", Axis has released their first HD analog encoder, the P7304, with support for AHD, CVI, TVI, and SD...