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

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...
VSaaS Startup Raises $5 Million For Global Expansion on Oct 04, 2016
There is money to be made in VSaaS. At least that is what the investors of Morphean believe. The Swiss company received a $5M investment to expand...
History of Video Surveillance on Sep 22, 2016
This is a concise history of video surveillance covering the past decade.  The goal is to help professionals newer to the industry understand...
Axis Hosted Video Decade of Failure on Aug 29, 2016
Do you want to 'head up' Axis hosted video offerings? Axis almost never publicly promotes senior positions, but for such an unattractive job they...
ONVIF Profile G Video Storage Test on Aug 26, 2016
A standard to retrieve video stored on 3rd party devices. This is the aim of ONVIF Profile G. The proprietary nature of accessing recorded video...
H.265 Licensing Fees Examined / CEO Interview on Jul 14, 2016
Axis has repeatedly warned about H.265 licensing, most recently: [The H.265 license model] includes a royalty on revenues generated on the...
Avigilon's Revolutionary H4ES Announcement on Apr 01, 2016
Avigilon has a revolutionary announcement, according to Avigilon. Have they solved terrorism as their CEO explained? No, not yet at...
VSaaS Usage Statistics 2016 - Still A Long Way From "The Next Big Thing" on Mar 14, 2016
VSaaS ranked #2 in the Next Big Thing 2020, but new integrator survey results show current usage is far from its promise. 150 integrators...
Taser Aims To Be Emerging VSaaS Powerhouse on Mar 01, 2016
Taser, the company, is best known for its stun-gun product (or "CEW - Conducted Electrical Weapon") which is commonly referred to as a...

Most Recent Industry Reports

Simplisafe is 'Blowing The Doors Off' on Feb 17, 2017
The company alarm dealers love to hate, Simplisafe, is 'blowing the doors off' according to Michael Barnes, one of the top financial advisors in...
Hikvision OEM DDNS Devices To 'Lose Remote Access' on Feb 17, 2017
The fallout of Hikvision's DDNS discontinuation is expanding, this time hitting OEM partner Supercircuits, who reports that on June 30th: The...
Milestone: "Easy Money Days Are Over" on Feb 17, 2017
Contrary to IPVM's criticisms, Milestone has reaffirmed that glory days remain. But they admit that they 'easy money days are over': Are the...
Directory of Alarm Panel Manufacturers on Feb 16, 2017
Alarm panels are the central controller of intrusion systems. The following is a list of manufacturers of alarm panels. This directory only covers...
Panasonic Favorability Results on Feb 16, 2017
Panasonic is one of the largest brands in the world and a long term provider of both video surveillance imagers and cameras. But, like all...
China Huawei Gives France Free City Surveillance on Feb 16, 2017
China is using its financial resources again, this time in France, just a month after the Chinese government funded a $100 million security /...
Hikvision Silicon Valley and Canada R&D Expansion on Feb 15, 2017
After massive growth in their sales team, Hikvision is now planning to add two new R&D centers in North America. In this report we examine...
Directory Of Wholesale Central Station Monitoring Providers on Feb 15, 2017
Wholesale central stations help smaller and local dealers providing monitoring to their customers. Dozens of options exist.  Below is the first...
Bosch/Genetec Video Cybersecurity Partnership Examined (CHAVE) on Feb 15, 2017
Surveillance products have been relatively weak when it comes to cyber security. Default passwords, open ports, and weak authentication mechanisms...
Security Alarm Industry Trends - Barnes on Feb 14, 2017
This is a review of key security alarm industry trends, taken from Michael Barnes' presentation at the 2017 Barnes Buchanan conference. Key trends...

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