Genetec Launches Subscription VMS

By: John Honovich, Published on Mar 30, 2016

Are the days of paying $50, $150, $300 up front per camera from VMSes soon to end?

Genetec is pushing forward with an additional subscription pricing model including an all new subscription only plan.

In this note, we share feedback from our discussion with Genetec, examining its competitive impact.

*** *** **** ** paying $**, $***, $*** up ***** *** ****** from ***** **** ** end?

******* ********* ******* ****** ********** ************ ******* model ********* ** *** new ************ **** ****.

** **** ****, ** share ******** **** *** discussion **** *******, ********* its *********** ******.

[***************]

Adding *************

******* ** ****** ************ options ** ******** ***** / *****. ** ****, users *** ****** **** the *********** ******** ** paying for * '*********' ******* and annual ******* ***** ** month ** ***** **** a ************.

New '*******' ******* 

** ******** ** ******** subscriptions ** ******** ******* editions, ******* ** ****** 'Compact', * ** ****** max, ***** **** ********. The **** **** ** $* per ***** *** ** will **** ** ********* via ************.

******* **** ** ******** down, **** * ******* ********* *********, *** according ** ******, ******* 'no ********'. **** ** their ********* *****:

********** **************** ********

******* **** *********** **** bill ***** ********* ******** monthly **** ******* ******* the **********, ***** ** online ********* ** ******.

Subscription ******* **********

******* **** **** **** targeted ******* ************ ******* to ** ******* ***** to * ***** ** their ********** ********* ******* plus ****** ******* *****. For *******, ** *** the ********* ******* *** $100 *** * ***** of ******* *** $*** ($20 *** ****), *** equivalent ******* *** ***** be ~$* ($*** ***** / ** ******).

Vs ********** *******

***********, **** **** *** be ***** ******** ** other ***** **, ** course, ******* ****. ***** that ******* ******* ** annual ******* ***** *** has ********* ***** ******* pricing, *** ********** ************ pricing ** ***** ** be * *******.

*** *******, *** * 16 ****** ******, *** $3 *** ***** *** camera ******* ******* ***** out ** $*,*** ***** (and $*** *** ******) over * * **** period **** *** ********. One ***** ***** ** buy **-**** ******** ** run / ****** *******. Totalled, **** ** ***** or ****** **** ***** premium ******* *** *** far ****** **** *** $500 - $*** ***-** Chinese **** *********.

Selling ****** *** *************

******* ******* ** * number ** ********** *** selling ************* ****** **** licenses, *********:

  • ************ ** ****** *** being **** *********** ****** for *************, ****** ** SaaS ******** (****** ******* does ***** ****, **** is *** ***** *********** on-site ********).
  • ***** ** ***** ***** requires **** ********** *** risk ** *****.
  • *** **** ** ****** to **** **** *****'* VMS ********, *.*., ******* of ****** ** *** a ***** *** ** front **** ****** **** Milestone ** *****, *** the **** **** ***** to *** * ******** of **** *******, ***** may ** ****** ** the *********** **** ** VMS ******. **** ****, while *** ******* ***** will ******* ** **** lower **** ****** ******* for * ********* *******, we ******** *******'* ************ fee ** ***** ** higher **** *****'* ******* fees.
  • *********** ****** ********* *** integrators ***** **** ***** increase *** ********** ** their ******** **** ** RMR. **** ** **********, though ***** *** ******** is * *** ******* of ***** (********* ** recording ********, *******, *****, etc.), *** **** *********** this **** *** ** a ***** ******* ** *******.

Competitive ******

**** ** ********* * trend ******* **** ** very ***, ** ***, well ***** *****, ***** subscription *******. *** ******* has ** ******** ******** base *** ************, ***** they ***** **** ** large ** **** **** projects **** *** **** frequently ******* ** **** through **. *** ***** buyers, **** ***** ** attractive.

*** *** **** ***** surveillance ******, ******, ** see **** **** ** a ********* **** * day ** *** ****** on *****.

What ** *** *****?

Comments (24)

Before I vote, I need to know if 1) there's any commitment, and 2) what the penalty is if I want to cancel my subscription before my commitment is up.

No contract, month to month, is my understanding. I'll update if wrong, double checking now.

Well, that seems risky on Genetec's part. Is this confidence or desperation?

I am pretty sure it's confidence, either that or they are really good at hiding desperation.

But, in all seriousness, that is increasingly normal on the IT side. In reality, given the cost / time / complexity in setting up / switching VMSes, how many people are going to sign up for Genetec for 3 months and then switch to VMS B? It certainly increases the risk that if someone hates it, they say "Screw it, dump that stuff" but, if anything that would be a good sales pitch for them, i.e., we are so confident that you will love our software just pay X dollars for a month, cancel anytime.

The way it was pitched at the connect event a few months ago was as a confidence based approach towards an IT buyer that has the rest of his payments already subscription based (except hardware of course); and primarily in takeover opportunities where the biggest argument against switching VMS systems is the sticker shock at a software only change.

A few integrator mentioned using it just to get in the door and then sell a perpetual license, but no discount is available for switching from subscription to perpetual (it seems like Genetec would want customers to stay with whatever they started at).

Hello

Thank you for the questions. The integrator buys the service based on customer requirements - be that on a month-to-month or one year term basis. Genetec does not get involved with how an integrator contracts with their end-user, in fact some of our certified channel partners are building out a bigger RMR business on our subscription plan and including hardware and cameras in a monthly price. That said, we do not offer a prorated refund to integrators who may have a client unsubscribe part way through their term.

Jimmy Palatsoukas (Product Marketing @ Genetec)

I think that no contract/no cancellation is becoming increasingly normal in all industries. It's how a lot (most?) of the cloud camera startups are functioning. Even the cell phone carriers have made moves toward it.

I think from a perception standpoint it puts Genetec in the more "forward thinking" bracket compared to other VMSes using the "old" model.

On the other hand, there is the 'classic model', which is "I buy the box once why should I pay you anything else again?"

Related: VMS Annual License Fees - Love 'Em or Hate 'Em?

Does this mean that your VMS now requires Internet access to continuously validate the license?

This could be a cyber-security issues, as many systems are not directly on the Internet. If you need to transfer a license, as you can with a traditional VMS, this would be a time suck if you had to do it every month...

Hi Undisclosed,

The system needs to connect periodically to validate the license.

The Genetec Update Service is the component responsible for running these checks. This is an independent component of Security Center that can be installed on a dedicated server, which connects to the internet, and acts as a proxy. Consequently, subscription systems can reside on an isolated network.

This is coupled with communications encryption in Security Center to ensure the system is protected.

Thanks,

Erick Ceresato (Product Manager @ Genetec)

Do you think this move is a way for Genetec to try and market to a customer base that has been unavailable to them previously?

As an OPEX solution, wouldn't subscription pricing allow those without the CAPEX formerly required to install their products the ability to now use Genetec?

Lack of CAPEX is a real barrier to enterprise level VMS for smaller end users - I think subscription pricing can help them to at least put a dent in that barrier.

Lack of CAPEX is a real barrier to enterprise level VMS for smaller end users

Other barriers:

  • Really high license costs
  • Server costs
  • Storage costs
  • Implementation / management costs

If this was a subscription SaaS that included storage/ recording/ hardware, then maybe I see that but with all the other bigger costs still being CAPEX, I don't see it making a major factor.

It's their only way to combat things like "free takeover" and other manufacturers that take over competitor systems for the cost of an SMA/SSA basically; it's a foot in the door for accounts that previously were hard to get in when you're talking a few hundred per camera as a license

Matthew,

Good points! Though if Genetec is successful here, I doubt it would be hard for competitors to replicate the Genetec subscription pricing but at a lower price point. I am sure there are many manufacturers looking at Genetec's move and already contemplating that ;)

I'd be surprised if we don't see subscription based from other vendors by the end of the year, best guess is a milestone or video insight?

best guess is a milestone or video insight?

In fairness, I don't think it takes a crystal ball to predict that Milestone will follow a Genetec release ;)

For Video Insight, do they really need to? Their regular special takeover price is a one time fee of ~$79? Their special takeover price is a one time fee of ~$29? Against someone willing to go that low, hard to see how Genetec can match and maintain its large engineering team. I would think they just need to win on selling more advanced features / benefits of them.

This is a great option offering yet another degree of flexibility for the end user, and it eliminates the initial investment for licenses/SUP at implementation. It is indeed a solid entry point for clients working with VMS's they are not satisfied with to switch to an alternative without the front end investment in licensing. It will prompt competitors to develop their own offering over the next few months or be left behind.

I think this will become more and more common. The one question I have is how it works when someone stops paying? End user or integrator.

If the account doesn't stay current on monthly payments, then the license goes invalid. basically you'd log in and get a license error and be unable to view or modify the system (From what I have heard though, system config stays the same so if you get current then the system doesn't have to get rebuilt).

Hi Matt, Undisclosed,

Our goal is to ensure customers will not lose access to the system due to an oversight. We will continue to auto-renew customers that are on monthly term contracts, to ensure they can continue using their system. If an account is in arrears, we will notify and work with our channel partner responsible for the system.

Should a customer need to cancel a system, they can do so by providing us notice of non-renewal before to end of their term.

Thanks,

Erick Ceresato (Product Manager @ Genetec)

What happens to the visibility/availability of recorded video if customers stop a subscription?

Do they continue to have access through a viewer?

Nope, if you don't stay current you have no video. So if you do go non-supported, it becomes a race against the clock for any recorded video that may get overwritten as retention period runs out

Thanks Matt. If a customer cancels their subscription, they will no longer have access to Security Center to review recordings. Users can export video of interest prior to canceling their subscription, should they need to retain it longer.

Thanks,

Erick Ceresato (Product Manager @ Genetec)

This is all starting to look like the Alarm industry with their monthly monitoring fees and RMR. It won't be about the equipment as much as what the monthly service fee will be.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Directory of 30+ VSaaS / Cloud Video Surveillance Providers on Jun 07, 2019
This directory provides a list of VSaaS / cloud video surveillance providers to help you see and research what options are available. 2019 State...
Exacq Raises VMS Software Pricing Twice in Less Than a Year on Feb 18, 2019
Most VMSes regularly release new features, but rarely increase their prices. For the 3rd time in 4 years, and 2nd time in 8 months, since being...
BCDVideo Expansion And Switch From HP To Dell Examined on Mar 11, 2019
BCDVideo says they have more than tripled revenue in the past 5 years and are continuing to grow, powered most recently by switching their lead...
Favorite Video Storage / Server Manufacturers 2019 on Mar 25, 2019
189 integrators answered this question: "What is your favorite storage device / server manufacturer for recording video? Why?" In general...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
Giant Tyco Campaigns Against Startup Qumulex on Jul 25, 2019
One is a giant conglomerate that owns the world's largest security integrator. The other has no shipping products. But Tyco is campaigning...
Ionodes Company Profile on Jul 31, 2019
What happened to Ionodes? With seasoned leadership from Jean-Paul Saindon founder of SmartSight and Dr. Michael Gilge, founder of VCS, back in...
Razberi Technologies Company Profile on Aug 06, 2019
Razberi says they have doubled their revenue in the first half of 2019, citing their proprietary camera hardening and cybersecurity capabilities...
Vunetrix Health Monitoring Company Profile on Nov 26, 2019
Vunetrix boasts that they make the integrators the 'HERO' by using Vunetrix's monitoring. We spoke to Vunetrix to better understand their...
The Battle For the VSaaS Market 2020 - Avigilon, Arcules, Eagle Eye, OpenEye, Qumulex, Tyco, Verkada on Jan 13, 2020
While VSaaS suffered from inflated expectations in the 2010s, 2020 marks a new decade and a much stronger competitive position for VSaaS vs...

Most Recent Industry Reports

"Hikvision Football Arena" Lithuania Causes Controversy on Jan 24, 2020
Controversy has arisen in Lithuania over Hikvision becoming a soccer team's top sponsor and gaining naming rights to their arena, with one local MP...
Axis and Genetec Drop IFSEC 2020 on Jan 23, 2020
Two of the best-known video surveillance manufacturers are dropping IFSEC International 2020, joining Milestone who dropped IFSEC in 2019. The...
Multipoint Door Lock Tutorial on Jan 23, 2020
Despite widespread use, locked doors are notoriously weak at stopping entry, and thousands can be misspent on locks that leave doors quite...
Avigilon Shifts Cloud Strategy - Merges Blue and ACC on Jan 23, 2020
Avigilon is shifting its cloud strategy, phasing out its Blue web-managed surveillance platform as a stand-alone brand and merging it with its ACC...
Verkada Paying $100 For Referrals Just To Demo on Jan 22, 2020
Some companies pay for referrals when the referral becomes a customer. Verkada is taking it to the next level - paying $100 referrals fees simply...
Camera Analytics Shootout 2020 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Jan 22, 2020
Analytics are hot again, thanks to a slew of AI-powered cameras, but whose analytics really work? And how do these new smart cameras compare to top...
Intersec 2020 Final Show Report on Jan 21, 2020
IPVM spent all 3 days at the Intersec 2020 show interviewing various companies and finding key trends. We cover: Middle East Enterprise...
Vehicle & Long Range Access Reader Tutorial on Jan 21, 2020
One of the classic challenges for access control are parking lots and garages, where the user's credential is far from the reader. With modern...
Clearview AI Alarm - NY Times Report Says "Might End Privacy" on Jan 20, 2020
Over the weekend, the NY Times released a report titled "The Secretive Company That Might End Privacy as We Know It" about a company named...
Favorite Camera Manufacturers 2020 on Jan 20, 2020
The past 2 years of US bans and sanctions have shaken the video surveillance industry but what impact would this have on integrators' favorite...