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

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...
Anixter Sales People Selling To End Users on Nov 03, 2016
Anixter's most frequently heard defense of selling to end users is that they used to do it, but not anymore. However, this was undermined by...
The Xiongmai Botnet 'Recall' Will Not Work on Oct 25, 2016
The Xiongmai 'recall' has been the topic of global news, following the unprecedented bot net attacks that use their equipment, among...

Most Recent Industry Reports

Avigilon Touting 'Made In America' on Sep 18, 2017
Canadian manufacturer Avigilon, who completed a US manufacturing facility in 2015, is now running a marketing campaign touting 'Made In America',...
Cloud Guy Prints Book, Misses Irony on Sep 15, 2017
On-premise security systems are dead. But $75 print books are alive and well. Such are the lessons from Brivo's CEO new book "The Five...
Forgotten Password Problem Importance on Sep 15, 2017
Forgotten passwords has become a major industry topic. For example, Hikvision has been emailing admin passwords in plain text until IPVM's...
September IP Networking Course on Sep 14, 2017
LAST Chance - Registration is ending. Register now. This is the only networking course designed specifically for video surveillance professionals...
Hikvision Launching Ezviz Pro on Sep 14, 2017
Hikvision is launching Ezviz Pro. In 2015, Hikvision expanded Ezviz, a direct to consumer offering, to North America. Now, Ezviz 'Pro' is...
Genetec Launches Community Connect Examined on Sep 14, 2017
Genetec has done best in large-scale, enterprise systems and relatively worse in smaller systems such as SMB. Now, Genetec is launching...
Master Keying Tutorial on Sep 14, 2017
Mechanical keys are the most fundamental, albeit unsophisticated, form of access control. Like access control, Master Keying allows large scale use...
Startup Turing Video Segway-Based Security Robot Profile on Sep 13, 2017
If security robots can not replace guards, perhaps the next best thing is a robot the guard can actually ride.  Turing Video has raised $5...
Fail Safe vs. Fail Secure Tutorial on Sep 13, 2017
Few terms carry greater importance in access control than 'fail safe' and 'fail secure'. Access control professionals must know how these concepts...

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