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

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...
Avigilon Favorability Results on Feb 27, 2017
One of the fastest growing companies has turned into one of the rockiest, as cooling growth, management turnover and a roller coaster stock price...
Boycott Anixter, Says 82% Integrators on Feb 05, 2017
82% of 130 145 integrator respondents say integrators should boycott Anixter, in response to Anixter / Bosch Sells Direct to Amazon. This is the...
Anixter / Bosch Sells Direct to Amazon on Jan 18, 2017
Anixter regularly says they do not sell direct to end users or that they do not do it anymore. However, over the past year, Anixter has sold Bosch...
How Axis Can Beat Hikvision on Jan 09, 2017
Hikvision has rocked the industry globally, bullying former video surveillance revenue leader Axis even in the Western world. What can Axis...
'Solution' Manufacturers Threaten Integrators on Dec 09, 2016
The race to the bottom has driven manufacturers to become 'solution' providers, threatening integrators. Axis shift to 'solution' sales might be...

Most Recent Industry Reports

Dahua Hard-Coded Credentials Vulnerability on Nov 20, 2017
A newly discovered Dahua backdoor is described by the researcher discovering it as: not the result of an accidental logic error or poor...
Panasonic Unified Surveillance Strategy Analyzed on Nov 17, 2017
Panasonic is now a "Unified Surveillance" offering, as their ASIS 2017 booth proclaimed: Looking to make a comeback in the security industry,...
Amazon Cloud Cam Is Poor (Tested) on Nov 17, 2017
Retail behemoth Amazon has entered the surveillance market with the Amazon Cloud Cam, the eyes of its just-announced Amazon Key delivery...
Nest Secure Alarm System Tested on Nov 16, 2017
Google's expansion continues, this time into home security with their Nest subsidiary's move into alarm systems. They paid more than a...
Dahua Forbes 'Next Web Crisis' Vulnerability Dispute on Nov 16, 2017
The buffer overflow vulnerability in Dahua products is not in dispute, in fact we covered it when it was first published. What is in dispute is...
Isonas Cofounders Split, Launch Partner/Competitor on Nov 16, 2017
Breaking up is hard to do, especially when door access security is at stake. But that is exactly what has happened at Isonas. Senior employees...
Hikvision China Criticizes The WSJ on Nov 15, 2017
Hikvision, through the Chinese government's authoritative news service, has criticized the WSJ investigation into Hikvision. In this...
PoE UPS Tested (Energy Reconnect) on Nov 15, 2017
In security, backup power is important, but most often requires UPS systems or extra cabling to devices for low voltage power. Now, some have...
Axis Commits To Long-Term Firmware Support on Nov 15, 2017
With the rise of cyber security awareness, and a general increase in hardware reliability, "software warranties" may prove more valuable than...

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