Canon Declares Itself Largest Surveillance System Company In the World

By John Honovich, Published Oct 21, 2015, 12:00am EDT

With both Axis and Milestone firmly entrenched as Canon subsidiaries, Canon is starting to tout its industry leadership.

In this note, we examine Canon's CEO declaration and where Canon / Axis / Milestone now stands.

*****'* ******** ******* ********:

"** *** **** ******* about *** ************* ** one ** *** *******-******* markets *****--******* *******.

** ******* *** ****** in ******** ********* *** video ************, ** ******** Milestone *******, * ****** in ***** ********** ********, into *** ***** ***** last ****. *** **** year, ** *** ******* to ******* **** **************, the ***** ****** ** network ****** *******.

**** ***** *** ***** Group ** ***the *******
surveillance ****** ******* ** *** *****."

Fast ****** ****

*************, ******* ******* *** no ****** * **** growing ******, ** **** have ****** ********** *** have ******* ********, ******** into a ****** * - 10% ****** ****** **** (which, ** ********, ** very **** ******** ** Canon's ******* ******). *** now ******* ******* **** a ****-******* ***** -** ******.

Not *** *******

** *** ***** *** largest, **** ******** *****, Axis *** ********* *** not *** ******* ** revenue *** *****, ** both ********* *** ***** easily **** **** ** both *******.

*** ****** ***** **, large ** *****, *** 3 ******** ** *** completely ************* **** ** benefits ** **** ***** part ** *** **** group. **** ** **** saying *** ** ** the ******* ************ ************ in *** ***** (***** we **** *********, ***, Tyco, *****, *****, *****, IC ********, ******* - wow, **** *** * depressing ****).

But ******* *** ****

** *** ***** ****, it ** * ******** sign **** *****'* *** sees *** ***** ** part ** * ****** company. ***** ****** ***** to ******* ** ****.

Competing ******* **********

*****, **** *** ********* continue ** ******* ******* each *****. *** **** bizarre ** ***** ** cameras ** **** ** cameras. *****'* ******** **** continues ** **** ******* Axis. ** ** **** to ********** *** ****** for ****. ***** ***** redundancies ******* **** ****** 2 ***** (*** *** ACS) **** ******* **** Milestone (***** *** ********) respectively (****** ** ********, and **********,**** ****** *********** * ****** *** than*********'* *****).

Acting ** *** '*******'

***** *** ********** *** clearly ******** **** ********* and **** ********** ***********. *** ** *****'* CEO **** **** ** all **** ** *** company, *** *** ** take ********* ** ****, and ***** *** ** be *** *******, ** will **** ** ******* them ** *** ** one.

Comments (9)

Eddie Perry

10/21/15 02:57pm

As a man once said "It doesnt have to make sense it just has to sound really awesome to make the stocks rise"

Luis Carmona

IPVMU Certified | 10/21/15 02:58pm

"Honey, now that we're married, I think it's time for us to move in together."

"Oh geez, I don't think we'd fit in either our apartments both togther."

"Well, what about buying a house?"

"I don't think I'm ready to take that step yet."

"But we're married.....?

"Yeah, and I've been meaning to talk to you about that- it doesn't mean you can keep food in my fridge."

Brian Rhodes

IPVMU Certified | 10/21/15 03:32pm

From a culture point of view, you have to think merging Milestone and Axis together would be easier than other companies being they are so geographically close and business-wise have talked about the benefit of their proximity for years.

That, coupled with Canon's relative familiarity in aqcuisitions in many markets means they aren't n00bs in making this happen. Shedding redundancy is a critical part of competition and seems like 'low-hanging fruit' in making these deals profitable.

Scot MacTaggart

10/21/15 03:40pm

But is it really the largest? I guess I saw the combined Axis / Milestone / Canon surveillance group as still being smaller than Hikvision at least.

Undisclosed #1

In reply to Scot MacTaggart | 10/21/15 03:46pm

Yeah. I read somewhere recently that Dahua is probably bigger also.

Dennis Dyer

In reply to Scot MacTaggart | 10/22/15 01:52pm

They are both bigger, word is that Dahua has billions in the bank and an 8Bil market cap.

Vincent Tong

10/21/15 03:48pm

Canon is "technically" bigger with a market cap of 34.77 billion

John Honovich

IPVM | In reply to Vincent Tong | 10/21/15 04:24pm

Under that metric, Cisco is the biggest with a market cap of ~$145 billion.

It is a misleading metric to use for 'largest surveillance system company in the world' but it still does not make Canon largest.

I genuinely wonder if Canon's CEO has any idea what is really going on with the video surveillance market and Hikvision / Dahua's expansion. If he did, why did he overpay so much for Axis and Milestone?

Undisclosed #2

IPVMU Certified | 10/21/15 04:08pm

Canon has repeatedly and clearly declared that Milestone and Axis will remain independent.

And maybe they will remain independent... of each other.

But neither is independent of Canon. So there is another possibility here. Perhaps Fujio's endgame is to build-up Canon security on the shoulders of these two giants?

Ultimately, ending up with Milestone and Axis being reduced to R&D or high-end niche arms of the invigorated Canon security.

How? Let Axis and Milestone do what they do on their own, if they are profitable, great. Regardless, pick thru any and all technologies, innovations in progress, business plans, customer data, demographics.

Like a Vampire. Brain Drain. Technology Transfer. Ring around the Rolodex.

Sounds crazy? Well consider the fact that Canon Security shows no signs of shutting down their IP camera division, to the contrary:

TOKYO, September 2, 2015 - Canon Inc. announced today that the Company is developing a high-sensitivity network camera equipped with a fast high-magnification lens capable of long- range colour image capture even in extremely low light conditions, making possible the viewing of subjects that the naked eye would have trouble discerning. This new camera will totally revolutionise low light surveillance and again show the world why Canon is a global leader in IP Network cameras.

Remember for these deals to make any sense for a company Canon's size, they have to be expecting huge growth in this market. They are not looking for a couple of small companies to own that will make a buck or two.

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