Can PSIM move downmarket?

Author: John Honovich, Published on Sep 21, 2010

Significant speculation exists about the future and potential of PSIM. Widely criticized as being a niche product for the largest security organizations, one line of thought advocates expanding PSIM downmarket. In the PSIM LinkedIn Group, proponents contend:

"New technologies/ techniques like PSIM always begin their life at the top of the food chain and migrate downward becoming, eventually becoming a standard component of every integrated system."

"It is easier to scale a product down and make it available at a lower cost through implementation of industry specific templates built on the experiences gained through large scale deployments."

We are skeptical both for product and marketing reasons.

On the product side, today's PSIM solutions are designed for large organizations with complex security requirements/workflow. For their core customer base, this makes perfect sense because that is what their customers need. However, mass market users do not need the power nor complexity of PSIM as their requirements are much simpler and their users are often not dedicated nor trained for using security systems.

Disabling functionalities is the easiest way for the provider to re-pacakage a high end product for a lower end market. Unfortunately, the workflow usually remains more complex and the offering misses features important for the lower end market (that are irrelevant for the higher end one). Milestone's 'free' VMS targeted at the home/SMB market is a perfect example of the problems/challenges one faces when forcing a higher end product on a lower end market segment.

Making things more difficult in the move downmarket is that both video surveillance and access control systems already have offerings optimized for those market segments (in terms of lower price, simplicity, feature sets most important to less sophisticated use cases, etc.). Worse for PSIM providers, these companies are moving upmarket into PSIM's sweet spot.

Historically, studies show that products moving upmarket are more likely to be distruptive. The most famous and well respected of these is Clayton Christensen's Theory of Disruptive Innovation. Christsen examined numerous industries from software to mining showing that over and over again the innovations that have the strongest change at success move upmarket.

Moreover, moving downmarket will be difficult for PSIM providers on the marketing side as well. Today, PSIM providers focus on a small number of large, high dollar projects. This means the sales and marketing team is 'big game hunting.'  This rewards elite salespeople working with very few dealers who can execute a complex, long term sales process. A move downmarket would require changing PSIM provider's sales and marketing process fundamentally. By contrast, access and video providers can leverage their existing, much larger customer and dealer base to cherry pick a handful of large projects that want a PSIM solution.

In our next update, we look at PSIM moving even more upmarket, taking a look at Intergraph's positioning themselves as 'PSIM Plus.'

Comments : PRO Members only. Login. or Join.

Related Reports

Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes at the 2019 Barnes Buchanan Conference. However, despite that narrative, it is a "great...
Milestone Drops Hikvision From Elite Partners on Feb 11, 2019
Milestone has quietly dropped Hikvision from their 'Elite Partners', less than 3 years after adding the Chinese government-owned...
ADT And SimpliSafe Super Bowl LIII Ads Criticized on Feb 04, 2019
Super Bowl ads are incredibly expensive, running $5+ million this year, but two of the security industry's most controversial companies ran ads...
Surging Wyze Raises $20 Million, Threat To Chinese Brands on Feb 01, 2019
The Seattle Startup that is disrupting consumer IP cameras with $20 pricing has just raised $20 million dollars (SEC Filing and company press...
PlateSmart LPR Profile on Jan 31, 2019
PlateSmart Technologies claims to "turn any conventional surveillance camera into a license plate recognition camera" We spoke with PlateSmart to...
Hanwha Techwin Favorability Results 2019 on Jan 31, 2019
Hanwha Techwin's favorability results surged, in IPVM's 2019 study, going from barely neutral in 2016 to strongly net positive, as the results...
Vivotek Favorability Report 2019 on Jan 29, 2019
Taiwanese video surveillance manufacturers, even relatively large ones like Vivotek, have lost ground in the PRC-China-driven race to the bottom....
Genetec Favorability Report 2019 on Jan 25, 2019
Genetec's favorability moderately strengthed, in new IPVM integrator statistics over their results from 2017, with 2019 results showing solid, but...

Most Recent Industry Reports

Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...
Uniview / UNV Favorability Results 2019 on Feb 12, 2019
Uniview / UNV, the self-proclaimed #3 China manufacturer, while starting late, has been working to make inroads internationally. In IPVM's 2019...
Nortek Mobile Access Reader BluePass Examined on Feb 12, 2019
Nortek's Linear access control division claims to make mobile credentials "more secure and easier to use than ever before" with their BluePass...
Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...

The world's leading video surveillance information source, IPVM provides the best reporting, testing and training for 10,000+ members globally. Dedicated to independent and objective information, we uniquely refuse any and all advertisements, sponsorship and consulting from manufacturers.

About | FAQ | Contact