Coming Battle Between DVR and IP Video Manufacturers

Author: John Honovich, Published on Mar 09, 2009

In the next 18 months, DVR and IP video software companies will compete head to head. They will add in each other's key functionalities and the distinction between these manufacturers will largely disappear.  This will be a major industry shift that will force end users and the channel to re-evaluate future product selections.

Based on my review of product roadmaps for over 20 vendors, here are the key claims:

  • Today, DVR and IP video surveillance software companies rarely see each others as competitors
  • DVR companies, motivated to defend their turf against the growth of IP, will broaden their IP camera support and sell software only
  • IP video software companies, motivated to expand to multi-site smaller camera deployments, will offer DVR/NVR appliances
  • End users will be motivated to stick with their DVR supplier
  • DVR companies main challenge will be executing the transition

In the 2009 DVR Comparison Guide, we examine the specific plans of leading DVR providers and the key strategic issues involved. In the remainder of this report, we overview the background and key factors.

Not Competitors Today

While end users do compare DVRs and IP video software today, the differences between the offerings are usually quite different. In fact they are so different, it is fairly common for DVR integrators to know little about IP video software and for IP video providers to never have used a DVR.  

DVR Company Motivation

The DVR companies now realize the threat that IP video has against their businesses. They have lost many deals, especially larger ones, to IP video software providers. While they tend to think convergence will take a long time, they also now accept that it's a significant business force.

Almost all of the leading DVR companies I reviewed either have already released or have committed to releasing software only versions and support for multiple IP camera manufacturers.

IP Video Company Motivation

IP video software providers have their greatest challenge with DVRs in sites with small camera counts. The rapid growth of IP video software providers has made them generally arrogant and dismissive of DVRs. 

While I expect only a few IP video software providers to release DVR appliances initially, I expect more to do so after they realize the commitment the DVR companies have in eliminating their advantages.

DVR Company Challenges

Adding in IP camera support and rolling out IP camera support will not be trivial for the DVR companies. Not only is it technically challenging, a number of the DVR providers are attempting to integrate acquired products to execute this transition. Some may fail and many may take multiple attempts to get this correct.

One element that will not be a challenge is providing enterprise level functionalities like centralized management and 3rd party system support. Despite the IP video marketing claims, the leading DVRs are all quite strong in these areas.  For instance, Intellex DVR is supported by many more access control systems than the flag bearer for open systems, Milestone. 

End User Motivation

The poor economy and enhanced DVR offerings will motivate many end users to stay with their existing DVR providers. By adding in IP camera support and allowing software only, the biggest drivers away to IP video providers will be reduced. Moreover, since operators will already be comfortable using the DVR system, many will satisfied with incrementaly adding to what they have.

Outlook

This shift will provide end users more options, put pressure on the IP video software companies and help the DVR incumbents withstand the attacks from IP video startups.

Related Reports on End Users

Key Control For Access Control Tutorial on Apr 16, 2018
End users spend thousands on advanced systems to keep themselves secure, but regularly neglect one of the lest expensive yet most important aspects...
GDPR For Video Surveillance Guide on Apr 12, 2018
The European Union’s General Data Protection Regulation (GDPR) comes into force on May 25, but there is much confusion and no clear guidelines on...
VMS New Developments Spring 2018 (Avigilon, Exacqvision, Genetec, Hikvision, Milestone, Network Optix) on Apr 04, 2018
What's new with VMS software? In this report, we examine new features and releases for Spring 2018 to track different areas of potential...
Brivo 'Buy Now' Online Campaign on Mar 26, 2018
Brivo has a new marketing campaign running across the web: Are you ready to buy access control now? Brivo tells IPVM this is a new campaign,...
If You Have 4 Cameras, You Can Throw Them Away, If You Have 400, They Throw You Away on Jan 19, 2018
Do users care about anything but price? Do user care about cybersecurity? Do users care about trusting their supplier? These have become...
Anixter End User Sales Troubles on Oct 23, 2017
End user sales have and continue to be a major problem for Anixter's physical security business. Every year, according to various Anixter people,...
Buy From B&H, Ship Direct From ADI on Oct 16, 2017
B&H, one of the largest online sellers of video surveillance equipment to end users, regularly purchases their video surveillance equipment...
Hikvision USA Hires VP of Business Development on Jul 05, 2017
Hikvision USA is expanding again, this time in its drive to move up market to larger integrators and end users. In this note, we analyze...
ADI's 'Elves' Selling Direct on Amazon on May 15, 2017
Buy from Amazon, get delivery from ADI. What? Recently, we bought a part from Amazon and the shipment came from ADI. We dug into the...
Anixter Favorability Results on Mar 28, 2017
Anixter's direct sales and integrator anger about it has been in the news recently: Anixter / Bosch Sells Direct to Amazon Anixter Touts...

Most Recent Industry Reports

May 2018 Camera Course on Apr 25, 2018
Save $50 on early registration until this Thursday, the 26th. Register now (save $50) for the Spring 2018 Camera Course This is the only...
Death Of A Dummy Camera Manufacturer on Apr 25, 2018
5 years ago, IPVM gathered insights from a dummy camera manufacturer, who was then the top selling dummy camera provider on Amazon and 3rd in all...
Hikvision Critical Cloud Vulnerability Disclosed on Apr 25, 2018
Security researchers Vangelis Stykas and George Lavdanis discovered a vulnerability in Hikvision's HikConnect cloud service that: just by...
The Yolo Bro And The Death of Journalism on Apr 24, 2018
There's an old quote: The job of the newspaper is to comfort the afflicted and afflict the comfortable Unfortunately, the opposite is more...
DMP Adds Ring Video Doorbell Integration on Apr 24, 2018
Video doorbells have become one of the hottest items for security systems. After several years with no doorbell, DMP has announced integration with...
Milestone 2017 Financials Examined on Apr 24, 2018
For ISC West 2018, Milestone released ... their financials, touting "strong revenue growth in 2017". However, there were discrepancies with the...
Chinese Manufacturer Kickstarter Campaign Huge Success (EverCam) on Apr 23, 2018
In a week, a Chinese manufacturer's expertly done Kickstarter campaign has received $1.4 million in pledges, an incredible amount for a video...
Favorite Biometrics 2018 on Apr 23, 2018
Biometrics are on the rise, or at least integrator opposition to them is declining, according to new IPVM integrator statistics.   Almost half of...
Dahua and Hikvision Win Over $1 Billion In Government-Backed Projects In Xinjiang on Apr 23, 2018
Dahua and Hikvision have won well over $1 billion worth of government-backed surveillance projects in China’s restive Xinjiang province since 2016,...
Global Real-Time Video Surveillance - EarthNow on Apr 20, 2018
A new company, EarthNow, with backing from Bill Gates, Airbus and more, is claiming that: Users will be able to see places on Earth with a delay...

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