Do Video Analytic Providers Have to Sell Products?

Author: John Honovich, Published on Apr 01, 2010

A CEO of a video analytics company makes the case that video analytic providers must sell products with video analytics integrated to be financially viable. 

Their key point is that selling licenses to video analytics results in a small annual market of $20 Million USD (assuming 10 Million total cameras, 10% using analytics and OEMs paying $20 per license).

We expect this premise as a ballpark estimate. We reject the notion that it makes selling licenses infeasible.

The more important aspect is the the excessive spending of video analytic companies. No one required OV, ioimage, Cernium, 3VR, etc. to spend $150 Million collectively.

 

Of course, when you spend that much money, a $20 Million market is infeasible. However, that is their fault, not a fundamental flaw in the market.

 

Small teams of computer vision experts, highly focused of analytics, with an OEM sales model can be financially successful in a $20 Million market.

 

Can you have large sales teams, big booths at trade shows, global advertising campaigns in trade magazines and be successful in a $20 Million market? No but it’s not required. These companies simply chose to do this.

 

Now, there’s no free lunch when building a product around analytics. Take Cernium’s Archerfish. They know need to become experts in building cameras, storing video centrally, running a data center plus they need to grow retail sales channels, etc.

 

The market for products may be larger but the costs and the competition is significantly greater. If you take $30-$50 Million investment for analytics, it’s probably your only move but they did not need to take it and now they have a very formidable challenge in its own right.

Comments : PRO Members only. Login. or Join.

Related Reports

Verkada Salesman: IPVM "Stuck In A The Stone Age" on Apr 25, 2019
Verkada is 'tackling dinosaurs' and battling those, like IPVM, who are 'stuck in a the stone age'. Verkada's recent sales recruiting promotion...
The HIVIDEO $31 Face Detection DVR Tested on Apr 25, 2019
Face detection in a $31 DVR? That is what "HIVIDEO" (not to be confused with Hikvision, even if the company intends to do that) was promoting at...
Ex-Integrator Now Growth Strategist Interviewed on Apr 24, 2019
For more than a decade, Scot MacTaggart was a security integrator (at PA-based PSX). In late 2018, he left the industry. He is now a Growth...
19 Facial Recognition Providers Profiled on Apr 23, 2019
IPVM interviewed 19 facial recognition providers at ISC West to understand their claimed accuracy, success and positioning. 9 from China, where...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...
Arecont Favorability Results 2019 on Apr 22, 2019
Arecont's net negativity remained the same in IPVM's 2019 integrator study, though integrator's feeling became relatively more neutral compared to...
Verint Victimized By Ransomware on Apr 18, 2019
Verint, which is best known in the physical security industry for video surveillance but has built a sizeable cybersecurity business as well, was...
The Fastest Growing Video Surveillance Sales Organization Ever - Verkada on Apr 17, 2019
Verkada has the fastest growing video surveillance sales organization ever. In less than 2 years, they already have more salespeople in the US...
Strong ISC West 2019 For Manufacturers But Concerns For 2020 March Move on Apr 16, 2019
ISC West 2019 was strong for manufacturers, according to new IPVM survey results of 100+ manufacturers, consistent with 2018 results. However,...
Alarm.com Favorability Results 2019 on Apr 15, 2019
The once dot com startup has evolved to become a core provider for home security and is now expanding into commercial. In their first entry in...

Most Recent Industry Reports

Verkada Salesman: IPVM "Stuck In A The Stone Age" on Apr 25, 2019
Verkada is 'tackling dinosaurs' and battling those, like IPVM, who are 'stuck in a the stone age'. Verkada's recent sales recruiting promotion...
The HIVIDEO $31 Face Detection DVR Tested on Apr 25, 2019
Face detection in a $31 DVR? That is what "HIVIDEO" (not to be confused with Hikvision, even if the company intends to do that) was promoting at...
Amazon Marketing Pro Installs of Amazon Security Systems on Apr 25, 2019
Is Amazon a threat to conventional providers like ADT, Vivint and Brinks Home Security? Many say no. Now, Amazon is advertising free in-home...
Ex-Integrator Now Growth Strategist Interviewed on Apr 24, 2019
For more than a decade, Scot MacTaggart was a security integrator (at PA-based PSX). In late 2018, he left the industry. He is now a Growth...
19 Facial Recognition Providers Profiled on Apr 23, 2019
IPVM interviewed 19 facial recognition providers at ISC West to understand their claimed accuracy, success and positioning. 9 from China, where...
Locking Down Network Connections Guide on Apr 23, 2019
Accidents and inside attacks are risks when network connections are not locked down. Security and video surveillance systems should be protected...
Hikvision Admits USA Sales Falling on Apr 22, 2019
Hikvision, in a new Chinese financial filing, has admitted that its USA sales are now falling. Less than a year after the US government passed a...
Speco Ultra Intensifier Tested on Apr 22, 2019
While ISC West 2019 named Speco's Ultra Intensifier the best new "Video Surveillance Cameras IP", IPVM testing shows the camera suffers from...
Arecont Favorability Results 2019 on Apr 22, 2019
Arecont's net negativity remained the same in IPVM's 2019 integrator study, though integrator's feeling became relatively more neutral compared to...

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