How Tyco/Intellivid Will Impact Retail Video Surveillance

Author: John Honovich, Published on Jul 16, 2008

Tyco's acquisition of Intellivid has the potential to be a great solution for retailers. While it certainly will take time and there are definitely questions to be answered, the fundamental fit is good. Over the next 3 years, this may have a substantial impact on customer's selections and the competitive dynamics within the retail video surveillance market.

[UPDATE 2012: This has not had a major impact on the market. Inded, Intellivid's offering have received minimal promotion or advancement in the intervening time frame. Our original analysis was too bullish.]

This report examines the impact of this acquisition. For background information on the purchase, see Intellivid's Acquisition Announcement. For an extensive review of Intellivid, read my report my June 2008 report on Intellivid.

Key Findings for the Tyco / Intellivid Acquisition

  • The fit between Tyco/American Dynamics and Intellivid is strong
  • How the integration works and how well it does are key questions
  • This solution has strong potential for medium sized and big box retailers
  • The solution is a major threat to March, Verint, Milestone and Genetec
  • The solution may be less strong for small box retailers
  • The solution should be less of a threat to Clickit and i3DVR

Background of American Dynamics

American Dynamics, the division of Tyco, that manufacturers video management systems is one of the top selling DVR companies in the world. Their main line, the Intellex, has been a top seller for more than a decade. The product is widely regarded as one of the easiest to use DVRs. According to Tyco, more than half of the top 50 retailers use Intellex. This is consistent with my own experience as an integrator, where more than half of the stores in any given mall used Intellex.

American Dynamics is attempting to catch up to the trend of network video and video analytics. While they have had an IP Intellex version for a few years, it is limited in functionality. Recently, Tyco purchased Trident Tek to enhance their network video offering. Combining Trident Tek and Intellivid provides solid foundations for both of the key trends.

Background of Intellivid

From its founding, Intellivid has been focused on the retail market through the use of video analytics (see my Intellivid review for details). Intellivid is widely regarded as one of the most sophisticated video analytics solution with an emphasis on providing an end to end workflow optimized for retail stores. Intellivid offers a full suite of loss prevention and business intelligence analytics. The most unique aspects of Intellivid's offerings are likely Computer Aided Tracking. Intellivid uses analytics to simplify operators tracking suspects from camera to camera - a very common use case for retailers.

Strong Fit

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

The fit is strong because you have the market leader in retail video systems combining with the technology leader in retail video analytics. They complement each other very well. American Dynamics has a very strong customer base with a large installation footprint within retail. This gives Tyco an advantage on expansions, upgrades and new deployments. With Intellivid, this gives American Dynamics the most sophisticated video analytic solution for retail.

Just because the fit is strong does not ensure that it will have a significant impact or be the right choice. It clearly depends on the implementation and details. The remainder of the report examines what these issues and elements may be.

Questions on How it Will Work?

I see two key issues that will determine how significant an impact this acquisition has.

  • How seamlessly does this work with Intellex appliances?
  • How seamlessly does this work with the Intellex User Interface?

The risk is essentially that these two systems are bolted on together rather than seamlessly integrated. I am not saying this will happen but this will be critical in maximizing customer value.

Retailers have tens if not hundreds of thousands of Intellex units deployed. To the extent that American Dynamics can make it cheap and easy to add Intellivid to those Intellex units, it becomes extremely attractive to stay with American Dynamics.

Key questions include (1) Can Intellivid be loaded on Intellex DVRs?, (2) Can Intellivid use video from existing Intellex units, (3) Will Intellex offer a unified user interface for video management and video analytics?

Strong Potential Mid Size and Big Box Retailers

At the very least, I think the American Dynamics / Intellivid combination will be very attractive to mid size and big box retailers.

For larger stores, Intellivid's camera tracking will be very attractive as it solves a core Loss Prevention problem of tracking suspects across numerous cameras.

Also, larger stores accept more complicated, costly solutions so even if the integration is not especially tight, it will still be quite competitive given the comparable cost structure of a Verint Nextiva.

Furthermore, most of the big retail vendors (Milestone, Genetec, March) are fairly light when it comes to video analytics. They all support third party analytics add-ons but none of them are anywhere close to the sophistication of Intellivid. Given American Dynamics stronger customer base and Intellivid, this may have a major impact in blocking the expansion of Genetec and Milestone.

Less Strong for Small Box Retailers

For smaller box retailers that max out at 16 cameras, how viable the American Dynamics solution will be depends on how tightly they can integrate with Intellex. Those retailers get the most benefit out of a single appliances that combines analytics, video management and encoding in one. They usually have small footprints so network cameras do not offer cost savings. Plus, they want to minimize cost and complexity of deployment. Companies like Clickit and i3DVR are being selected by many retailers in this application. While Intellivid's offering is certainly more sophisticated than either of the two, the cost of the Intellex/Intellivid solution will need to be close or most retailers will not select them.

I do not know how this will work out but I think it will be challenging to be competitive in this segment at least in the next year or two.

Concluding Thoughts

I think this is a good deal that should benefit customers and the companies involved. It has the potential to deliver an excellent video management solution for retailers. Of course, we must continue to watch carefully to see how the integration is executed and how the overall solution is delivered to the market.

1 report cite this report:

Investments & Acquisitions Directory 2011 on Dec 26, 2010
This directory provides a single source of information on funding and acquisitions in the video surveillance market. It is part of our Video...

Related Reports

FLIR Buys Point Grey For $253M on Oct 04, 2016
FLIR's acquisition streak continues, announcing an acquisition of Point Grey Research for $253M in cash. Other notable FLIR deals include: FLIR...
Hiring Spree At Aimetis 6 Months After Being Acquired on Sep 28, 2016
Aimetis was acquired in April 2016, and is now expanding almost all of their departments, hiring employees from Axis and other industry...
Camio Natural Language Processing Tested on Sep 27, 2016
The ex-Googler led team from Camio has advanced its video monitoring offering to include natural language processing. Camio ingests video,...
Nest Cam Outdoor Tested - Analytics Strong, Installation Weak on Sep 23, 2016
After years of claiming an outdoor model was "coming", addressing their biggest user demand, Nest has finally released their Outdoor Camera, an...
History of Video Surveillance on Sep 22, 2016
This is a concise history of video surveillance covering the past decade.  The goal is to help professionals newer to the industry understand...
Tagged RFID Object Search Recorded Video on Sep 20, 2016
Video analytics has gotten fairly good at tagging people in video, but it does not solve the problem of finding items like specific merchandise or...
Brickstream People Counting Sensors Acquired on Sep 07, 2016
Brickstream's sensors have been considered the market leader in retail store people counting applications, the company claims over 175,000 units...
1 New Acquisition Per Year Planned for Qognify (Former Nice Security) on Aug 23, 2016
Want to be acquired? Qognify, the former Nice Security Group, has big money behind it and the plans for multiple acquisitions. In this note, we...
Directory Of 67 Video Analytics Suppliers on Aug 22, 2016
This directory provides a list of video analytics providers to help you see and research what options are available. [premium_content] Video...
VMS Developer Lensec Acquired on Aug 10, 2016
Independent VMS companies have been popular acquisition targets in the security industry the past few years (with Tyco acquiring Exacq, Canon...

Most Recent Industry Reports

Security Consultants Speak Episode 1 - Protus3 on Oct 21, 2016
This is a first of a series of conversations with security consultants. If you are a security consultant that wants to talk and can share frank...
Sony and Samsung Breaking VBR on Oct 21, 2016
For years, users have known variable bitrate (VBR) as one thing only: bandwidth varies, compression stays the same. This is not an accident but an...
Pelco Matrix End Of Life - End Of An Era on Oct 20, 2016
Pelco Matrix switchers, once the pinnacle of large SD analog installations, are now literally impossible to build. The Matrix products were not...
Axis Video Revenue Down on Oct 20, 2016
An important milestone. Axis revenue for video products is down year over year. But Axis is now focusing on 'diversification'. In this report, we...
Worst Access Control 2016 on Oct 19, 2016
Two access control providers stood out as being the worst to work with for integrators. In this report, we analyze the answers to: "In the past...
Hacked DVRs Surge To 400,000 on Oct 19, 2016
The global internet is under attack from record breaking botnets. And it is getting worse, Mirai doubled in size in the last month. Shamefully,...
Longse Rips Off Hikvision on Oct 19, 2016
Longse is on the attack, and now they are targeting Hikvision. Evidently not content just to rip off Milestone and Video Insight, Longse has now...
China "Unswerving Leadership Over State-Owned Enterprises" Like Hikvision on Oct 18, 2016
The PR agency of the Chinese government declared: President Xi Jinping stressed the Communist Party of China's (CPC) unswerving leadership over...
Move Aside Cisco, Axis Has A Network Switch For Integrators on Oct 18, 2016
Cisco is a common choice for network switches, including in our Favorite Network Switches survey, but now Axis is releasing a 16 port PoE+ switch...

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