EMC's Entry to the VSaaS Market

By: John Honovich, Published on Aug 14, 2011

Over the last 2 years, interest in VSaaS has risen significantly yet most of the providers have been startups and small companies. Now, EMC, a giant storage provider with nearly $20 Billion annual revenue, is launching its own VSaaS service. In this note, we examine the structure, pricing and positioning of EMC's offering examining if EMC can overcome the problems holding back many of today's current VSaaS providers. 

To start, a few key points about EMC's solution:

  • The total package consists of EMC's implementation of Axis' AVHS, integrated with their Atmos cloud storage platform
  • The user interface to EMC's VSaaS has been customized beyond that of the typical Axis' AVHS interface, although it is unknown to what level.
  • Local storage at client sites can be served by the Iomega StorCenter NAS appliance at each site, reducing bandwidth and remote storage needs.
  • EMC has targeted large national integrators with this offering, providing accounts to these integrators at wholesale pricing, who will resell the service to end users.
  • With many of these integrators providing in-house central station monitoring, EMC has integrated AVHS with the central station monitoring software used by some, allowing video from the could service to be used for alarm verification.
  • Unlike many VSaaS providers, EMC meets SAS 70 and ISO 27001 standards. Readers may remember Axis' controversial claim that these must be met for hosted video implementations and our analysis and counterpoint.
  • Expected end user pricing is between $10 and $15 per camera per month, in line with other offerings.
  • With 25% market share in direct-attached storage, and nearly 30% in network storage, EMC certainly has an experience advantage over other vendors.

Competitive Analysis of EMC's Offering

We examined the VSaaS market about a year ago, citing a number of issues prohibiting widespread adoption which still exist today: concerns about storage and bandwidth, network security, and pricing all were major issues.  EMC, being the giant that it is in the storage industry, mitigates some of these concerns. Few, if any, competitive offerings could boast the sheer numbers of installations. This is likely to ease concerns over reliability and security which end users may have with VSaaS in general. Additionally, adherance to SAS 70, ISO 27001, and RSA Encryption standards puts EMC ahead of most of the market.

One complaint in reviewing various hosted video services was the user interface. Since it is normally web-based and made to work across browser versions, it's usually simplistic, and limited to simple views of a few cameras. This makes live operation and archiver viewing often cumbersone, and not as feature-rich as full-blown client software. Integration of VSaaS video to third-party systems are also unheard-of. According to our contact, EMC says that they are capable of customizing the interface of their hosted service beyond that of the standard AVHS. How much of this customization has been finished and how much is planned is unknown, though if forced to guess, we would assume little to none in the time period the service has been available.

Another complaint, and perhaps the greatest, about VSaaS is pricing. In our research we found that $10-20 per camera per month was typical for most VSaaS providers. This number is subject to change depending on the storage duration required, and number of cameras. EMC's offering reportedly will price out at the same level. Our concern remains that this pricing is simply too high for many users. With even low-end DVR's costing $300 featuring remote access and even iPhone clients these days, $400-700 per year for a hosted service seems a difficult sell. Customers desiring a few HD cameras may find hosted services more attractive, since low-cost DVR's can't provide greater than standard resolution.

Overall, while EMC offering VSaaS is more attractive them some lesser-known providers, thanks to their brand and experience, we feel they will face many of the same challenges of other providers until pricing drops to more reasonable levels.

2 reports cite this report:

Winners and Losers Fall 2011 on Sep 25, 2011
Now that the dust has settled from the new announcements of the last month, we can better understand the impact on the overall video surveillance...
New Surveillance Products Directory Fall 2011 on Sep 21, 2011
This report provides a summary of key announcements and news being made related to or around the ASIS 2011 show.For each product or change, where...
Comments : Members only. Login. or Join.

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's Cloud Drive Storage Tested on Feb 04, 2019
Less than a year after acquiring cloud video company Smartvue, Exacq has launched its 'cloud drive storage' offering. We see the VSaaS market...
Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...
Eagle Eye Favorability Results 2019 on Mar 21, 2019
Eagle Eye has been the biggest spender in the cloud VMS market including (via their owner) acquiring Brivo for $50 million and CameraManager from...
Ivideon Russian VSaaS Profile on Jun 27, 2019
Ivideon was an early VSaaS entrant, initially focusing on the consumer market, claiming massive growth to IPVM in 2014. We spoke to Ivideon, to...
'CCTV' Is the Past, Cloud Video Surveillance Is the Future on Jul 08, 2019
A fundamental shift is happening. For decades, video surveillance was overwhelmingly 'closed' and off the Internet. This is changing. More and more...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...
CheckMySystems Company Profile on Aug 14, 2019
CheckMySystems says that too many users respond, "I get an email when something is wrong" when talking about their video system maintenance plan,...
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...
Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...

Most Recent Industry Reports

Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Cheap Camera Problems at Night on Feb 19, 2020
Cheap cameras generally have problems at night, despite the common perception that integrated IR makes cameras mostly the same, according to new...
Milestone Launches Multiple Cloud Solutions on Feb 18, 2020
Milestone is going to the cloud, becoming one of the last prominent VMSes to do so. Milestone is clearly late but how competitive do these new...
Video Surveillance Architecture 101 on Feb 18, 2020
Video surveillance can be designed and deployed in a number of ways. This 101 examines the most common options and architectures used in...
UK Stands Behind Hikvision But Controversy Continues on Feb 18, 2020
Hikvision is exhibiting at a UK government conference for law enforcement, provoking controversy from the press, politicians, and activists due to...
IronYun AI Analytics Tested on Feb 17, 2020
Taiwan startup IronYun has raised tens of millions for its "mission to be the leading Artificial Intelligence, big data video software as a service...
Access Control ADA and Disability Laws Tutorial on Feb 17, 2020
Safe access control is paramount, especially for those with disabilities. Most countries have codes to mandate safe building access for those...
ISC West 2020 Removes China Pavilion, No Plans To Cancel Or Postpone on Feb 17, 2020
ISC West plans to go on next month, amidst concerns over coronavirus. However, the Asia / China Pavilion has been removed, show organizers...
Hanwha Wisenet X Plus PTRZ Tested on Feb 14, 2020
Hanwha has released their PTRZ camera, the Wisenet X Plus XNV-6081Z, claiming the "modular design allows for easy installation". We bought and...
PRC Warns Against China Video Surveillance Hacks, Hikvision Targeted on Feb 14, 2020
Hackers are targeting China video surveillance manufacturers and systems, according to the PRC's main cyber threat monitoring body. The hackers...