DM Launches New Brand but Will it Help?

Author: John Honovich, Published on Jan 03, 2010

In a strange move that we think has low probability for success, Dedicated Micros's IP products will go to market through a new division/brand called "AD Network Video". See the new AD Network Video website.

While the goal is to "strengthen its project sales operations across the Americas," selecting the name AD in America will undoubtedly cause confusion. American Dynamics, a similarly large video surveillance manufacturer, is broadly known in the US market under the acronym AD. Worse, American Dynamics is broadly recognized as having a poor and limited network video offering. [I recognize that Dedicated Micros' parent company in the UK is the AD Group but this has low recognition in the US]

In our experience, the Dedicated Micros brand in the United States is strongly associated with legacy analog CCTV. Promoting this new brand might remove some of those negative perceptions. However, we are skeptical about the ultimate success of this given the weakness of Dedicated Micros' IP video offering (i.e., this may be little more than putting lipstick on a pig). Their biggest new IP product announcement in 2009 was a proprietary camera system with attached storage (called the ICR).

In May 2009,  the CEO of Dedicated Micros delivered a bizarre luddite presentation of the future of IP video that raises doubts on Dedicated Micros's market approach. See below:

In November 2009, a Dedicated Micros executive lamenting the poor economy and difficult sales environment. In today's announcement, Dedicated Micros announced this executive has left the company.

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