Can PSIM move downmarket?

By: 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

Directory of 68 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Schmode is Back, Aims To Turn Boulder AI Into Giant on Sep 16, 2019
One of the most influential and controversial executives in the past decade is back. Bryan Schmode ascended and drove the hypergrowth of Avigilon...
ASIS GSX 2019 Final Show Report on Sep 12, 2019
IPVM went to Chicago for ASIS GSX 2019, with many exhibitors disappointed about traffic and the exhibitor schedule changing next year. However,...
US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...
Stanley Makes "Multi-Million Dollar Investment" Into Banned Hikvision Products on Aug 09, 2019
Just days from the US government ban going into effect, US mega-corporation Stanley has dramatically increased its imports of banned Hikvision...
Vivotek Revenue Soars on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%. Inside this note, we examine import records and see who is driving Vivotek's growth...
Online Video Surveillance Sales Comparison - Amazon, B&H, CDW, LTS, Super Circuits, More on Jul 31, 2019
IPVM has uncovered the key trends and top options being offered across commonly used surveillance sellers. How has the market shifted since we...
Ionodes Company Profile on Jul 31, 2019
What happened to Ionodes? With seasoned leadership from Jean-Paul Saindon founder of SmartSight and Dr. Michael Gilge, founder of VCS, back in...
"Stats Don't Lie" Says Deceptive IFSEC on Jul 30, 2019
While IFSEC has declared #statsdontlie and trumpeted seemingly skyrocketing visitor numbers, they are decieving about their show's problems. On...

Most Recent Industry Reports

Open Access Controller Guide (Axis, HID, Isonas, Mercury) on Sep 19, 2019
In the access control market, there are many software platforms, but only a few companies that make non-proprietary door controllers. Recently,...
Axis Perimeter Defender Improves, Yet Worse Than Dahua and Wyze on Sep 19, 2019
While Axis Perimeter Defender analytics improved from our 2018 testing, the market has improved much faster, with much less expensive offerings...
Directory of 68 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Uniview Prime Series 4K Camera Tested on Sep 18, 2019
Is the new Uniview 'Prime' better than the more expensive existing Uniview 'Pro'? In August, IPVM tested Uniview 4K 'Pro' but members advocated...
US Army Base To Buy Banned Honeywell Surveillance on Sep 17, 2019
The U.S. Army's Fort Gordon, home to their Cyber Center of Excellence, has issued a solicitation to purchase Honeywell products that are US...
Vivotek "Neural Network-Powered Detection Engine" Analytics Tested on Sep 17, 2019
Vivotek has released "a neural network-powered detection engine", named Smart Motion Detection, claiming that "swaying vegetation, vehicles passing...
Schmode is Back, Aims To Turn Boulder AI Into Giant on Sep 16, 2019
One of the most influential and controversial executives in the past decade is back. Bryan Schmode ascended and drove the hypergrowth of Avigilon...
Manufacturers Unhappy With Weak ASIS GSX 2019 And 2020 Shift on Sep 16, 2019
Manufacturers were generally unhappy with ASIS GSX, both for weak 2019 booth traffic and a scheduling shift for the 2020 show, according to a new...
How Cobalt Robotics May Disrupt Security on Sep 13, 2019
While security robots have largely become a joke over the last few years, one organization, Cobalt Robotics, has raised $50+ million from top US...
Panasonic 4K Camera Tested (WV-S2570L) on Sep 13, 2019
Panasonic has released their latest generation 4K dome, the WV-S2570L, claiming "Extreme image quality allows evidence to be captured even under...