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

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...
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...
H.265 Usage Statistics on Apr 19, 2019
H.265 has been available in IP cameras for more than 5 years and, in the past few years, the number of manufacturers supporting this codec has...
Securadyne CEO: IPVM 'Entertaining For An Ignorant Few' on Apr 16, 2019
Securadyne's CEO Carey Boethel is unhappy with IPVM's report - Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied. Indeed, he...
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...
ISC West 2019 Report on Apr 12, 2019
The IPVM team has finished at the Sands looking at what companies are offering and how they are changing their positioning. See below for 50+...
Failed Integrator Rollup, Securadyne Sells to Guard Giant Allied on Apr 09, 2019
One of the most ambitious integrator rollups of the decade has reached its conclusion—selling to a mega guard company. Allied Universal has...
Dahua Favorability Results 2019 on Apr 01, 2019
Dahua favorability declined, in IPVM's 2019 integrator favorability series, driven by their backdoors, resulting in mass hacking and US government...
HTTPS / SSL Video Surveillance Usage Statistics on Apr 01, 2019
HTTPS / SSL / TLS usage has become commonplace for websites to improve security and, in particular, to help mitigate attackers reading or modifying...
Panasonic Favorability Results 2019 on Mar 27, 2019
Panasonic favorability declined, as the company struggled to find its way amidst a changing market and its ill-timed decision to become a Dahua...

Most Recent Industry Reports

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...
H.265 Usage Statistics on Apr 19, 2019
H.265 has been available in IP cameras for more than 5 years and, in the past few years, the number of manufacturers supporting this codec has...
ACRE Acquires RS2, Explains Acquisition Strategy on Apr 19, 2019
ACRE continues to buy, now acquiring RS2, just 5 months after buying Open Options. One is a small access control manufacturer from Texas, the...
Access Control Course Spring 2019 - Last Chance on Apr 19, 2019
 Register for the Spring 2019 Access Control Course----Closed IPVM offers the most comprehensive access control course in the industry. Unlike...

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