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

Hikvision Corrects False Cybersecurity Announcement on Jun 18, 2018
Hikvision has corrected a false cybersecurity announcement that claimed a British government-sponsored program endorsed the cybersecurity of...
Security Sales Course Summer 2018 on Jun 14, 2018
Based on member's interest, IPVM is offering a security sales course this summer. Register Now - IPVM Security Sales Course Summer...
IPVM For PR / Marketing People on Jun 13, 2018
This post helps PR and Marketing people understand and productively work with IPVM (as much as possible given our independent, often critical,...
ReconaSense - The AI / Access Control / Analytics / IoT / Video Company Profile on Jun 12, 2018
One company's ISC West booth stood out for displaying a light-up tower of buzzwords. The company, ReconaSense, pledged to be 'making sense of it...
Dahua's Terrible Cybersecurity, Buys Credibility From PSA And SIA on Jun 04, 2018
Dahua has a terrible cybersecurity track record. But American organizations, like the Security Industry Association (SIA) and the PSA Security...
Ambitious Mobile Access Startup: Openpath on May 24, 2018
This team sold their last startup for hundreds of millions of dollars, now they have started Openpath to become a rare access control small...
Buy Arecont: Top Bid $10 Million Cash on May 22, 2018
Last year, Arecont had a deal for a purchase price of $170 million (see Failed Arecont China Acquisition). This year, Arecont has a deal for a...
Stealth / UCIT - Remote Video Monitoring Provider Profile on May 18, 2018
Can 2 remote video monitoring companies, Stealth Monitoring from the US and UCIT from Canada combine to impact the market and compete in a changing...
Worst Manufacturer Technical Support 2018 on May 16, 2018
5 manufacturers stood out as providing the worst technical support to 190+ integrators in new IPVM results. These integrators answered: In the...
Hikvision Source Code Transparency Center Examined on May 14, 2018
Following criticism of Hikvision's Chinese government ownership and Hikvision's IP camera backdoor, the company has responded with a series of...

Most Recent Industry Reports

July 2018 IP Networking Course on Jun 16, 2018
The last chance to save $50 on registration is this Thursday, June 21st. Register now and save. This is the only networking course designed...
The Dumb Ones: PSA's Bozeman On Cybersecurity on Jun 15, 2018
The smart ones are the hundred people who flew to Denver and spent $500+ on a 1.5-day conference featuring Dahua as a 'cyber responsible partner',...
Amazon Ring Launches $10 Monthly Professional Alarm Monitoring on Jun 15, 2018
Amazon's Ring has announced an alarm system with 24/7 professional alarm monitoring for $10 per month, a fraction of the $30+ per month traditional...
Axis Releases First New Access Controller In 5 Years (A1601) on Jun 15, 2018
It has been 5 years since Axis 2013 entry in the physical access control market, with the A1001 (IPVM test). Now, Axis has released its second...
Hikvision 12MP Fisheye Camera Tested (DS-2CD63C2F-IV) on Jun 14, 2018
Hikvision's DS-2CD63C2F-IV is their flagship panoramic camera, with a 12MP imager, 15m integrated IR, smart codec, and more. We tested the 63C2 in...
Four Major Outdoor Camera Install Problems on Jun 14, 2018
Over 140 integrators told us the top four camera installation mistakes that lead to unexpected problems and failures. Their comments often...
Security Sales Course Summer 2018 on Jun 14, 2018
Based on member's interest, IPVM is offering a security sales course this summer. Register Now - IPVM Security Sales Course Summer...
China Public Video Surveillance Guide: From Skynet to Sharp Eyes on Jun 14, 2018
China is expanding its video surveillance network to achieve “100%” nationwide coverage by 2020, including facial recognition capabilities and a...
IPVM For PR / Marketing People on Jun 13, 2018
This post helps PR and Marketing people understand and productively work with IPVM (as much as possible given our independent, often critical,...
Avigilon H4 Multi-Sensor Adds 32MP, H.265, Analytics on Jun 13, 2018
Avigilon has announced the H4 Multisensor, the successor to their repositionable multi imager line, adding features like H.265, integrated IR,...

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