Axis Hosted Video Decade of Failure
Author: Brian Karas, Published on Aug 29, 2016
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Comments (13)
Undisclosed Manufacturer #1
Two issues for Axis, the AVHS platform is designed to be OEM'd and is incomplete out of the box. Secondly, the don't sell it direct which limits their ability to influence the final product.
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Nick Giannakis
IPVM has suggested numerous times that AVHS is a failure of a product. I curious how you define that?
The $2.8B acquisition by Cannon last year represented a %50 premium over Axis’ stock price. That happened despite several poor financial reports from Axis where AVHS (although small by percentage of overall revenue) was one of the only shinning areas of growth. AVHS may not have given Axis the surge in growth like the VSaaS offering from Alarm.com or the insane purchase premium boasted by Dropcam, but it did help Axis secure a monster buyout.
IPVM has also suggested that VSaaS growth is weak in general for an emerging technology (26% CAGR) but by comparison to the growth of the rest of the industry, it is more than double. Everything is relative right? I would agree with the argument that AVHS is feature limited or niche in application, but an outright failure? That seems like a surprisingly hash assessment coming from IPVM(wink).
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Undisclosed Manufacturer #3
Disclaimer - I work for Axis. Not going to comment other than to say that Companion is not a cloud service in the same way as AVHS. Storage for Companion is at the local site, while storage for AVHS is (by definition) in the cloud. Just wanted to clarify.
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Undisclosed Integrator #4
The problem is not VSAAS, the problem is the Axis AVHS (why put VHS in your service name???) is just a crappy product. It has been that since day 1, very juvenile.
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Steve Mitchell
Lack of traction over the past 10 years is an indictment of the business model (reselling "cloud" service through dealer/integrator channels) rather than necessarily the offering itself.
The history of everything cloudy--or even going back several decades when it was called simply "on-line"--shows that it is an economy of scale business that doesn't need or tolerate a middle-man in the sales and operations process.
The business depends on many happy customers who are paying monthly, receiving a sense of value, and not experiencing too many technical problems. If a middle man is not providing value month-to-month then they don't deserve that monthly revenue. What's more, margins are low which requires tremendous scale, which a small reseller can't afford to support or operate. Everybody loses.
Local central monitoring? Maybe. But scaled up mass-marketed, low-touch, just-cash-the-monthly-checks? No.
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John Honovich
Axis is still looking:
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John Honovich
Update: Axis promoted RSM Mike King to this position.
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