Surprisingly, Milestone is entering the hardware business. After years of warning the industry about the dangers of proprietary jail and emphasizing how it does not compete with its partners, Milestone will begin selling NVR appliances. In this note, we examine the move's competitive positioning and market impact.
The first phase of Milestone NVRs will consist of 2 NVR appliances: an 8 and 16 channel PC from HP (HP Z200), running Milestone Essential. The MSRP of the appliances is projected at $2,999 for the 8 channel, 1TB unit and $3,999 for the 16 channel, 2TB unit. The appliance provides support for a fixed number of channels and do not require the traditional DLK licensing process. The appliance will be optimized for running Milestone Essential, eliminating setup time and potentially improving performance. Finally, by using HP, Milestone can take advantage of common HP benefits - large scale, name brand hardware, rapid replacement, etc.