Killing Hosted Video

By: 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.

Comments : Members only. Login. or Join.

Related Reports

Video Surveillance History on May 06, 2020
The video surveillance market has changed significantly since 2000, going...
VSaaS Will Hurt Integrators on Aug 06, 2020
VSaaS will hurt integrators, there is no question about that. How much...
The Future of H.266 For Video Surveillance Examined on Aug 17, 2020
First H.264, now H.265, is H.266 next? H.266 was recently announced amid...
AI Video Surveillance (Finally) Goes Mainstream In 2020 on Sep 03, 2019
While video surveillance analytics has been promoted, hyped and lamented for...
Directory Of 150 Video Analytics Suppliers on Dec 17, 2019
This directory provides a list of video analytics providers to help you see...
Uniview H1 2020 Financials Examined on Sep 08, 2020
While Dahua and Hikvision, helped by fever camera sales, are recovering from...
XNOR.ai Terminates Wyze on Nov 27, 2019
Wyze has shocked the industry again - this time with a major setback. Just...
Dahua Profits Surge Due To Fever Camera Sales on Aug 25, 2020
While Dahua's overall revenue is down, driven by challenges within China, the...
Bandwidth Fundamentals For Video Surveillance on Jan 13, 2020
Bandwidth is the most fundamental element of computer networking for video...
'CCTV' Is the Past, Cloud Video Surveillance Is the Future on Jul 08, 2019
A fundamental shift is happening. For decades, video surveillance was...
Cisco Video Surveillance Is Dead, Long Live Cisco Meraki Video Surveillance on Feb 11, 2020
A dozen years ago much of the industry thought that Cisco was destined to...
IP Camera Browser Support: Who's Broken / Who Works on Dec 10, 2019
For many years, IP cameras depended on ActiveX control, whose security flaws...
The Booming Multi-Billion Coronavirus Fever Camera Market on Apr 21, 2020
The market for elevated body temperature detection cameras, aka 'coronavirus...
Costar Technologies / Arecont H1 2020 Financials Examined on Sep 16, 2020
Costar's financial results have been hit by the coronavirus with the company...
2020 Mid Year Video Surveillance Industry Guide on Jul 27, 2020
The first half of 2020 has been shocking, for the world generally, and for...

Recent Reports

OnTech Smart Services Partners With Google and Amazon To Compete With Integrators on Sep 25, 2020
A pain point for many homeowners to use consumer security and surveillance is...
The Future of Metalens For Video Surveillance Cameras - MIT / UMass / Immervision on Sep 25, 2020
Panoramic cameras using 'fisheye' lens have become commonplace in video...
Hikvision Sues Over Brazilian Airport Loss on Sep 24, 2020
Hikvision was excluded from a Brazilian airport project because it is owned...
China General Chamber of Commerce Calls Out US Politics on Sep 24, 2020
While US-China relations are at an all-time low, optimism about relations...
Verkada Disruptive Embedded Live Help on Sep 24, 2020
Call up your integrator? Have someone come by the next day? Verkada is...
IP Networking Course Fall 2020 - Last Chance - Register Now on Sep 23, 2020
Today is the last chance to register for the only IP networking course...
Drain Wire For Access Control Reader Tutorial on Sep 23, 2020
An easy-to-miss cabling specification plays a key role in access control, yet...
Norway Council of Ethics Finds Hikvision Human Rights Abuses "Ongoing" on Sep 23, 2020
Hikvision's involvement in "serious human rights abuse" in Xinjiang is...
IPVM Camera Calculator User Manual / Guide on Sep 23, 2020
Learn how to use the IPVM Camera Calculator (updated for Version 3.1). The...
Installation Course Fall 2020 - Save $50 - Last Chance on Sep 22, 2020
This is a unique installation course in a market where little practical...
SimpliSafe Business Security Launched Examined on Sep 22, 2020
SimpliSafe has launched "SimpliSafe Business Security" that the company...
FLIR CEO: Many New Fever Entrants "Making Claims That The Science Just Won't Support" on Sep 22, 2020
FLIR's CEO joins a growing number calling out risks with fever / screening...
China Bems Temperature Measurement Terminal Tested on Sep 22, 2020
Guangzhou Bems (brand Benshi) is the manufacturer behind temperature...
Axis Exports To China Police Criticized By Amnesty International on Sep 21, 2020
Axis Communications and other EU surveillance providers are under fire from...
Milestone XProtect on AWS Tested on Sep 21, 2020
Milestone finally launched multiple cloud solutions in 2020, taking a...