Is Price Pressure for IP Video Increasing?

JH
John Honovich
•Published May 17, 2010 00:00 AM
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A consistent theme integrators report is competition for jobs has increased significantly in the past 18 months. Recent actions from 3 prominent manufacturers provide further indication of this trend:

  • IQinVision emailed their contacts contending that they would, "beat any competitive bid by up to 10%" for the month of May. SIW statement provides details [link no longer available]. 
  • OnSSI is offering 50% off VMS software licenses for the education market through the end of September 2010.
  • Pelco is offering [link no longer available] free resolution upgrades on megapixel cameras and waived base server charges for their VMS software (through ASIS 2010 - an offer that was extended earlier this year).

All 3 manufacturers have their specific challenges - IQ's deficiencies in H.264 support, Milestone's increased sales in OnSSI's home market (plus the public acknowledgement of OEMing Milestone) and Pelco's attempt to migrate from their analog core.

The next 6 months should reveal the momentum for further public pricing specials. If the economy does not rebound strongly, we accept these moves to accelerate as manufacturers with declining cash positions fight for a smaller amount of deals.