IP Video Will Be Resilient to the Recession

Author: IPVM, Published on Oct 16, 2008

In tough economic times, security is the last thing to be cut. IP Video Market Info's forecast treats the market as a unified block, but that is not good analysis. At Sightmind, we sell into enterprise, mostly institutional customers. For these organizations, security is a core mission, not an optional "capital project," They have long budget cycles and far less cuts than in the consumer and retail sectors.

These Projections are Speculation

A second problem is that any kind of numerical forecast, like "66% less" growth, is simply pure speculation. No individual, no algorithm has ever shown success in predicting the future of the economy. The single most accurate statistical predictor is always "same as last year." You might guess that growth would be, "less," but even that is risky.

IPVS is Flat Out Lower For Many Applications

Another problem is your "assumption" that IPVS is more expensive than analog camera systems. For many of our clients IPVS is flat-out lower cost. The common reasons are either less cables, or no cables, because they already have network wiring. A second reason is that enterprise customer have significant integration requirements with their existing IT operations. Open-standards based systems, instead of DVR, meet these requirements directly. Full system management, such as SNMP, is only available end-to-end with IP cameras.

For most of our customers, analog systems or analog portions of systems simply don't meet their needs, and so there is no possibly way to compare "ROI" or "TCO" between apples and oranges.

For locations that have significant members of the public, such as bridges and zoos, how do calculate ROI??

How to you measure effective emergency response to an emergency? How do you calculate the cost of a fire on public lands? (Yes, we put in automatic fire detection video systems.)

An ounce of prevention is worth a pound of cure. Knowing what is happening in your facility is an ounce of prevention.

Costs of Labor Analysis

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

Then their is your claim that guard labor will get cheaper in a poor economy. Most guards are already close to minimum wage. How much cheaper can it get? I think you are wrong about that.

However, professional labor may get more competitive. That means that the cost to put an IPVS system may be a fabulous deal in 2009.

Analytics is being used to replace people. As organizations scale back, they are going to look more seriously at saving costs that way.

We have seen a huge spike in interest in people wanting to purchase a Sightmind IVPS franchise in the last week. Slowdown or not, modern security installers are going to be one of the few businesses that do well in a bad economy.

Kim Rubin is the CEO of Sightmind.

Most Recent Industry Reports

Knightscope - $122,509 Revenue, $2.5 Million Loss Seeks $20 Million Investment on Dec 09, 2016
The robot that ran over a child, Knightscope, wants money and they need it. Investors can invest as little as $1,000 to participate and...
'Solution' Manufacturers Threaten Integrators on Dec 09, 2016
The race to the bottom has driven manufacturers to become 'solution' providers, threatening integrators. Axis shift to 'solution' sales might be...
The Russian SMP Security Robot on Dec 08, 2016
A Russian manufacturer, SMP, has a commercially available outdoor security robot, at a lower price and with much less marketing than their main...
How Hikvision Beats Its OEMs on Dec 08, 2016
Hikvision GM declared that they are not aggressive with their competitors. But some of their own OEM partners disagree. Inside, we reveal a key...
Dahua Discontinuing H.264 Only Products on Dec 08, 2016
Dahua has taken a stand for H.265 and is discontinuing its H.264 only products. We examine the shakeup inside this...
IP Networking Course January 2017 on Dec 08, 2016
This is the only networking course designed specifically for video surveillance professionals plus it includes live training, personal help and...
Hikvision vs Dahua Mobile Apps Tested on Dec 07, 2016
With smartphone use and low-cost video recorders surging, many user's main interface to their surveillance system is their phone. With mobile video...
Paxton Drops US Reps, Plans Major Expansion on Dec 07, 2016
Paxton is gearing up to make a big run at  US access control success. The first step they have made is to cut all US Rep Firms, in anticipation of...
Axis Partner Elder Care Video Analytics (Smartervision) on Dec 07, 2016
Can video analytics be used to improve the care of the elderly? Axis and a video analytics startup, Smartervision, are working together to do so....
Sony IP Camera Backdoor Uncovered on Dec 06, 2016
A backdoor has been uncovered in ~80 Sony IP camera models, attackers can remotely enable telnet on the camera, and then potentially login as root,...

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