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

Save $50 - IP Networking Course September 2017 on Aug 16, 2017
Tomorrow, Thursday, August 17th is the last day to save $50 on the September IP Networking Course. This is the only networking course designed...
Hikvision Responds To Cracked Security Codes on Aug 15, 2017
Hikvision has responded to IPVM's report on Hikvision's security code being cracked, both with a 2 page update to dealers and communication...
Stolen Video NVR / DVR Statistics on Aug 15, 2017
"But what happens if someone steals my recorder?" Anyone who has done more than a handful of jobs has probably heard this question several times....
Hikvision Europe Cutting Out Unauthorized End User Sales on Aug 15, 2017
The days of anyone buying Hikvision from anywhere off the Internet are numbered, at least in Europe, if Hikvision's plan comes to fruition. In...
Axis Laser Focus PTZ Tested on Aug 14, 2017
Axis has been touting its new Q6155-E laser focus PTZ as 'always in focus' and 'always in color'. Does it really deliver? We bought and tested...
Vulnerability Directory For Access Control Cards on Aug 14, 2017
Knowing which access credentials are insecure can be unclear, especially because most look and feel the same. Even the most insecure 125 kHz types...
IP Camera Specification / RFP Guide 2017 on Aug 14, 2017
RFPs are hard. Do them 'right' and it takes a lot of knowledge and time. Do them 'wrong' and you can be (a) unwittingly locked into a specific...
Cellphone Usage Issues For Integrators (Statistics) on Aug 11, 2017
Cellphones clearly offer significant advantages in communication and problem solving. But they can also be a major pain point if employees...
Rebooting IP Camera Statistics And Practices on Aug 10, 2017
Dahua cameras automatically reboot weekly, by default. Is this an innovation by the Chinese mega-manufacturer or a sign of a problems? 125...
Avigilon Profits Surge, Stock Jumps (Q2 2017) on Aug 10, 2017
Avigilon said earlier this year they would shift their strategy to maximizing profits. Now, they are delivering it and the stock market is...

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