Killing Hosted Video

Author: John Honovich, Published on Oct 30, 2012

Hosted video gets a lot of vendor hype but is on the verge of being wiped out in surveillance. Ironically, while it aimed to disrupt the traditional market, it is already being disrupted itself.

What’s killing hosted video? Edge recording plus cloud access delivers the key benefits of hosted video for free.

Vendors and integrators hoped hosted video would deliver RMR, invigorating their businesses. Recurring fees of $10 - $20 per camera per month would deliver a steady, high profit revenue stream.

The business case for hosted video never made sense. Compared to traditional surveillance, the overall costs were far higher for a far less mature and sophisticated offering.

The most critical differentiator for hosted video was eliminating the on-site recorder. Providers argued offsetting cost savings from lower install and service demands.

Hosted's Advantages Disappearing

However, in the last year, edge recording has emerged as a powerful competitive force. Like hosted video, edge recording eliminates the need for a dedicated recorder. However, instead of streaming it off site as hosted video does, edge moved the recording onto SD cards inside cameras. Unlike hosted video, edge recording typically costs no more for the product nor for ongoing ‘service’.

Simple setup and remote access has been another key advantage for hosted video. Using the ‘cloud’, cameras would ‘phone home’ to providers enabling seamless connections between users on their phone or laptops to video streams. By contrast, edge recording, like traditional surveillance, required more complex setup to enable remote access.

Now, edge recording providers are combining recorder elimination and cloud access to match the key benefits of hosted video. Our test results of Lorex’s new line show this in action. As one of the biggest home / consumer surveillance line (with over 500,000 cameras sold annually), Lorex, who was just acquired by FLIR, is a good template of what other providers will certainly do. And since they want to sell more hardware, they are giving away these software / service capabilities for free. This makes selling hosted video incredibly difficult.

What Remains

The remaining major advantage hosted video providers claim is eliminating theft of recordings. With the video stored in a data center, thieves cannot steal the recorders from a site they break into. While this is certainly true, it is neither a common nor high priority risk for most. Indeed, to the extent users fear for the security of their recordings, they are unlikely to trust an off-site service provider either.

The future is clear. Camera manufacturers have every interest and capability to give away cloud accessed edge recording to sell more cameras. This approach essentially kills hosted video as a viable competitive force for years to come.

Comments : PRO Members only. Login. or Join.

Related Reports

Verkada, Silicon Valley VSaaS Startup, Targets Enterprise on Oct 19, 2017
Verkada says they are building an enterprise-class VSaaS offering, calling it "The new platform for video security". This is a departure from the...
Cloud Guy Prints Book, Misses Irony on Sep 15, 2017
On-premise security systems are dead. But $75 print books are alive and well. Such are the lessons from Brivo's CEO new book "The Five...
Microsoft Video AI Cloud Services Examined on Jul 18, 2017
Microsoft has released one of the most amazing video analytics marketing videos ever. In it, they detect oil spills, track individual people giving...
Milestone / Canon Launch Cloud Startup Arcus Global on Jun 27, 2017
Milestone has spun off a business, Arcus Global, funded by their parent company Canon. The new company aims to transform the VSaaS market with an...
Panasonic Sells VSaaS Company To Eagle Eye (Cameramanager) on Jun 15, 2017
While many VSaaS companies might hope for one acquisition, Cameramanager has managed to get acquired twice. First they were acquired by Panasonic,...
Instant Cloud For Hikvision - Manything on Apr 28, 2017
One ISC West exhibitor had a very specific and clear pitch - cloud for Hikvision: In this note, we examine their offering, key differentiators,...
Eagle Eye Exec On Mountain Of Servers - VSaaS Growth Analysis on Apr 25, 2017
Eagle Eye VP of Operations, Hans Kahler, posted a picture of himself sitting on top of a shipment of new servers, as a testament to the companies...
Comcast SmartOffice (Using Genetec and Axis) Profile on Mar 29, 2017
Comcast has more than 20 million subscribers and $80 billion in revenue. Now Comcast is partnering with Genetec and Axis to deliver a...
Ex-ADT Exec Joins Eagle Eye As President on Nov 04, 2016
VSaaS has been a tough market, while Axis struggles with their business, Eagle Eye is filling out their executive team. Eagle Eye has hired an...
'Legal Protection' From Eagle Eye Contract Vault Examined on Nov 02, 2016
"I was promised the high-end model for the entry level price." "Nobody said there would be a monthly service fee when I signed...

Most Recent Industry Reports

Uniview Recorder Backdoor Examined on Oct 20, 2017
A Chinese research group has identified a vulnerability in Uniview recorders that allows backdoor access in a method similar to the Dahua...
Hikvision Access Control Tested on Oct 19, 2017
Hikvision aggressive pricing and marketing combined with generally reliable hardware and free software has made them a major player in video...
Verkada, Silicon Valley VSaaS Startup, Targets Enterprise on Oct 19, 2017
Verkada says they are building an enterprise-class VSaaS offering, calling it "The new platform for video security". This is a departure from the...
Exacq Unbreaks Avigilon Integration on Oct 18, 2017
For nearly 4 years, Exacq had broken and effectively blocked use with Avigilon cameras, as IPVM reported in January 2014. Now, Exacq has...
Search More Important Than Live Monitoring - Statistics on Oct 18, 2017
Search is overall more important than live monitoring to integrators, according to new IPVM statistics.  The key themes found in integrator...
Axis 'Sold Out' P3707-PVE Multi-Imager Tested on Oct 18, 2017
Axis faced significant product shortages over the summer. Perhaps the most notorious and significantly sold out model was the Axis P3707-PE 8MP...
Dahua Removes Auto Rebooting on Oct 17, 2017
For years, Dahua has automatically programmed its IP cameras to reboot weekly, a highly atypical and questionable practice. Following IPVM...
Deep Learning Tutorial For Video Surveillance on Oct 17, 2017
Deep learning is a growing buzzword within physical security and video surveillance. But what is 'deep learning'? In this tutorial, we explain...
Multipoint Lock Access Control Tutorial on Oct 17, 2017
Doors are notoriously weak at stopping entry, and money can be misspent on wrong locks that leave doors quite vulnerable. While closed and locked...

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