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
- 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
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