Axis Financials From Bad To Worse (Q2 2015)
Author: John Honovich, Published on Jul 09, 2015
In this note, we break down:
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Comments (18)
John Bazyk
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Undisclosed Manufacturer #1
Abandon your partner ecosystem and this is what happens... The combination of technology partners with near infinite solutions will always prevail. No single company can dominate alone.
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Undisclosed Manufacturer #3
In the quarterly report executives claim that they maintain the "clear leadership in network IP cameras in the Americas according to IHS". I believe they are in for a shock in the next few weeks.
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Undisclosed Integrator #5
The simple answer: Price generally wins in the long term.
In other industries for example, look at DeWalt tools. Their hand held drills and drivers were considered the best. Almost a status symbol. But, you by a drill for the hole, and other cheaper brands began to up their game, and now DeWalt's sales are declining. You have to look around most job sites to find them, and they are typically older. Almost never see a new set.
A typical elementary school might have 16 IP cameras, a POE Switch and an NVR.
Look at the old way from a dealer's perspective: (rough numbers)
16 Axis xxx cameras at $550 cost each $8800
Milestone Xprotect Enterprise: $2000 Server and 16 x $200 camera licenses $5200
Netgear 24 port POE Switch $400 (or way more with Cisco)
Dell PC/Server with 4 TByte: $1500+
and assume cable and installation is the same for both options.
Total Hardware and Software dealer cost: $15,900. And a dealer is lucky to get 15-18% from Axis and Milestone
Now compare to a Hikvision option:
16 Channel NVR with 16 port POE and 4TB: $650
16 3mpxl IR cameras at $150 each: $2400
Total cost: $3050. and a Dealer can generally get a nice markup and still be half the price of the other option.
Yes, of course you can make all kinds of arguments and claims about VMS features, but in the end, like the drill, you buy the system for the recorded video to capture an incident. In all my years of installing these systems of both types, I've not found a real compelling advantage of one vs the other in general use. If there was a fight in the school cafeteria at 11:30 am, it's generally as easy to pull footage on one as another.
So, guess what's selling these days?
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Undisclosed Integrator #6
Hi, Not surprised, too many products which are "me to" . New website is awful. And the alienation of partners by putting reviews on the axis website from a online box shipper is unforgivable. For that last one they just lost us. I will never subscribe to dealing with a company who does this, casestudies are one thing. Using an online retailer!
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Undisclosed #4
Good time to build a new headquarters?
Gotta compete with Avigilon right?
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