Is Bundling Video Analytics a Good Strategy?

By: John Honovich, Published on Jan 11, 2010

While increasingly adopted, we believe bundling video analytics with cameras and recorders is a reflection of failing initial strategies rather than an inherently strong approach.

Bundling video analytics is increasingly common. The 3 biggest acquisitions of analytic companies have fostered bundling - DVTel/ioimage, American Dynamics/Intellivid and Honeywell/ActiveEye. Beyond that, a number of the most well known analytic companies have evolved into bundled product offerings - 3VR's searchable video recorders, Cernium's managed video offerings and VideoIQ's iCVR.

There are benefits of bundling:

  • Tighter integration can allow for improved performance of the analytics
  • Lower cost of combined product as duplicate costs can be eliminated
  • Greater revenue because more functionalities are being sold

On the other hand, there are downsides:
  • It is harder to be strong at both analytics and cameras/VMS - company can become stuck in the middle - average at both
  • Many customers only want one part of the package and may reject bundled product because of cheaper or simpler alternatives

As a practical matter, we believe the rise of bundling analytics is a result of failure to meet original investor expectations for rapid and sizable revenue growth. Many of these companies received tens of millions in investment, only to generate a few million in revenue after the first few years. This was primarily a result of failure to meet the original performance claims (both in accuracy and ease of use in real deployments). We believe this was a critical factor in the shift to bundling. Bundling will almost certainly increase revenue growth but at the cost of making the bundled provider a weaker alternative to more focused providers (3VR compared to Exacq, Cernium to Axis STS, VideoIQ to Mobotix, etc.).

Ultimately, bundling may be the best option but only given the failure of analytic performance to justify mainstream adoption.
Comments : PRO Members only. Login. or Join.

Related Reports

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...
Directory of 59 Video Surveillance Startups on Jun 25, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Repositionable Multi-Imager Camera Shootout - Avigilon, Axis, Dahua, Hanwha, Hikvision, Panasonic, Vivotek on Jun 19, 2019
Repositionable multi-imager cameras are one of the fastest growing segments in video surveillance, with a slew of new offerings being recently...
Startup Vaion Launching End-to-End AI Solution Backed with $20 Million Funding on Jun 17, 2019
An EU / USA video surveillance startup, Vaion, founded by ex-Cisco Senior Directors is launching an end-to-end VSaaS platform with $20 million in...
Sighthound Transforms Into Enterprise AI Provider Profile on Jun 14, 2019
Sighthound is now rapidly expanding its R&D team, building an enterprise AI service. This may come as a surprise given their origins 6 years...
Embattled $400 Million China Funded Philippines Surveillance System Proceeds on Jun 13, 2019
An embattled 12,000 camera surveillance system project that will cost ~$400 million will proceed.  The project contract was awarded, had its...
Carnegie Mellon AI Startup Zensors Profile on Jun 11, 2019
Zensors is a startup formed by Carnegie Mellon graduates from a Carnegie Mellon research project, offering customized models per camera that they...
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...
Hikvision DeepinMind 2019 Test on Jun 06, 2019
In 2018, Hikvision's DeepinMind AI NVR performed terribly, recognizing vehicles, animals, and other objects as humans, misclassifying demographics,...
"New" Arecont Fixes Failures "Without A Fight" on Jun 05, 2019
The "old" Arecont was infamous not only for its camera failures but for making their "partners" fight to get them fixed. IPVM drew the ire of...

Most Recent Industry Reports

HD Analog vs IP Guide on Jul 16, 2019
For years, HD resolution and single cable signal/power were IP camera advantages, with analog cameras limited to much lower resolution and...
How To Troubleshoot Wiegand Reader Problems - Inverted Wiring on Jul 16, 2019
Wiegand is the dominant method of connecting access readers, but problems can arise for installers. In fact, one of the most difficult reader...
ZeroEyes Gun Detection Startup on Jul 16, 2019
A gun detection video analytics startup, ZeroEyes, is being led by a group of 6 former Navy SEALs, aiming to "save lives" by using AI to assist...
Motorola Acquires Watchguard, Adds to Vigilant And Avigilon on Jul 15, 2019
2 years ago, Motorola had no position nor relevancy to video surveillance. Now, they own major video surveillance, LPR and body camera providers...
Hikvision Global News Reports Directory on Jul 15, 2019
Hikvision has received the most global news reporting of any video surveillance company, ever, ranging from the WSJ, the Financial Times, Reuters,...
Vivotek Trend Micro Cyber Security Camera App Tested on Jul 15, 2019
Vivotek and Trend Micro are claiming five million blocked attacks on IP cameras, with their jointly developed app for Vivotek cameras. This new...
Beware African 50,000 IP Camera Contract Scam on Jul 12, 2019
A “Nigerian Prince” scam for the video surveillance market is going around. You, or at least we, could be lucky enough to be the single bidder for...
Axis ARTPEC-7 P1375-E Camera Tested on Jul 12, 2019
Axis claims the new P1375-E box camera with ARTPEC-7 chip delivers "clear, sharp images in any lighting condition." But how well does it do? We...
Last Chance - Camera Course Summer 2019 on Jul 11, 2019
Last day to register is Thursday, July 11, 2019. This is the only independent surveillance camera course, based on in-depth product and technology...
Nortek Blue Pass Mobile Access Reader Tested on Jul 11, 2019
Nortek claims BluePass mobile readers are a 'more secure and easy to use approach to access', but our testing uncovered security problems and...

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