EMC's Entry to the VSaaS Market

Author: 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 : PRO Members only. Login. or Join.

Related Reports

Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...
Uniview / UNV Favorability Results 2019 on Feb 12, 2019
Uniview / UNV, the self-proclaimed #3 China manufacturer, while starting late, has been working to make inroads internationally. In IPVM's 2019...
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...
Barnes Buchanan 2019: Despite 'Strange Narrative' Great Time To Be In Security on Feb 11, 2019
A "strange narrative" is being spun, said Michael Barnes at the 2019 Barnes Buchanan Conference. However, despite that narrative, it is a "great...
FLIR Favorability Results 2019 on Feb 08, 2019
FLIR has had a challenging past few years including FLIR Security business struggling, FLIR restructuring their security division and FLIR selling...
Sony Favorability Results 2019 on Feb 05, 2019
Sony Favorability amongst integrators improved moderately compared to their 2017 favorability results, with a modest net positive...
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...
Hanwha Techwin Favorability Results 2019 on Jan 31, 2019
Hanwha Techwin's favorability results surged, in IPVM's 2019 study, going from barely neutral in 2016 to strongly net positive, as the results...
Designing Access Control Guide on Jan 30, 2019
Designing an access control solution requires decisions on 8 fundamental questions. This in-depth guide helps you understand the options and...

Most Recent Industry Reports

Casino Surveillance Pro Interview: James Lathrop on Feb 15, 2019
James Lathrop has been working in casinos for almost 25 years. During that time, he says he has held "just about every job you can do in the...
Hikvision 2018 Revenue Tops $7 Billion USD But Growth Slows To Low on Feb 15, 2019
Hikvision's annual revenue topped $7 billion for the first time in 2018, although growth slowed sharply. In this post, we analyze the latest...
Hanwha Smaller Multi Imager Tested (PNM-9000VQ) on Feb 14, 2019
Hanwha's first repositionable multi imager PNM-9081VQ tested well, but was huge, over 12" wide and weighing in at over 10 pounds. Now, they have...
ADT And 'The Defenders' Silent About Massive Complaints on Feb 14, 2019
ADT's largest dealer, "The Defenders" has been the subject of a massive number of complaints over many years and many forums, most recently a CBS...
Hikvision Chairman Praises United Front on Feb 14, 2019
Hikvision’s controlling shareholder held a meeting last month praising the United Front, a Communist Party organization known for its secretive...
Sales Turnover At Anyvision on Feb 13, 2019
Anyvision raised a $43 million Series A and according to their newest investor: what you need to do is push the gas pedal and build an...
Cisco Meraki Cloud VMS/Cameras Tested on Feb 13, 2019
Cisco Meraki says their cameras "bring Meraki magic to the enterprise video security world". According to Meraki, their magic is their management...
Uniview / UNV Favorability Results 2019 on Feb 12, 2019
Uniview / UNV, the self-proclaimed #3 China manufacturer, while starting late, has been working to make inroads internationally. In IPVM's 2019...
Nortek Mobile Access Reader BluePass Examined on Feb 12, 2019
Nortek's Linear access control division claims to make mobile credentials "more secure and easier to use than ever before" with their BluePass...
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...

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