Managed vs Hosted Video Competitive Pricing Dynamics

By: John Honovich, Published on Jul 06, 2010

The tradeoff between managed and hosted video offerings is one of the most critical aspect in the growth of Video Surveillance as a Service (VSaaS). In this update, we examine key issues and limitations of current pricing levels. Readers needing a background should first read our VSaaS comparison guide.

As of June 2010, we believe a major barrier/error by providers is setting high rates for managed video offerings. While managed video solves some of the problems of hosted video (specifically by providing on-site storage thus eliminating problems/ costs for off-site storage and upstream bandwidth). However, most providers are still charging significant premiums for their managed video offerings even when all of the recording is done at the customer's site.

For instance, Axis partner Secure-i charges $20 per month per camera, Rogo charges $19.95 per month per site, two of the European providers we are currently evaluating have similar price levels even with no off-site recording. (The majority of providers do not currently offer on-site storage though many reports plan to do so in the next 6 - 12 months.)

We believe managed video offers real benefits to end users by simplifying and expanding their access to video remotely. On the other hand, the pricing that managed video providers can achieve is constrained by the substitute of setting up remote access oneself (through port forwarding and DDNS - read the IT networks training report if an explanation on these functions is desired). Doing this oneself requires some IT skill and time but it is fairly modest (perhaps a few hundred dollars to setup).

Since it can be a 'pain' and does generally require a service fee to manually do, managed video providers have an opportunity to charge but the maxmium charge is limited by the alternative available (ie DIY). Charging $20 per month when all the cameras and recorders are on-site looks to be a bad deal for users who may be up to $1,000 over a few years for something they could essentially replicate with a few man hours of effort.

This being noted, we see this as a major opportunity for incumbent VMS and DVR providers to bundle in managed video support into their existing products. This is a feasible and straightforward upgrade to existing products. We've only seen Lorex do it for their DVRs but they are using widely available third party technology from Yoics to do this. Most importantly, there is no ongoing charge for this.

Managed video provides value to consumers but significant monthly premiums have little chance of being competitive (or growing the market). We believe the best opportunity for growing the market, helping customers and strengthening products is adding in managed support to video surveillance products as a free or low cost add-on.

1 report cite this report:

Cameramanager VSaaS Service Overview on Jul 14, 2010
Cameramanager is a Netherlands based VSaaS provider offering integrated support for Axis and Panasonic hosted cameras and an on-site storage...
Comments : PRO Members only. Login. or Join.

Related Reports on Storage

Rhombus Cameras, VMS and Analytics Tested on Nov 06, 2019
Rhombus boasts they have created "the new standard in Enterprise, cloud-managed video security" and told IPVM in January 2019 they offer twice the...
90+ Companies Profile Directory on Nov 06, 2019
While IPVM covers the largest companies in the industry regularly (like Axis, Dahua, Hikvision, etc.), IPVM strives to do a profile post on each...
Network Optix NxWitness 4.0 Tested on Oct 10, 2019
Network Optix released Nx Witness 4.0, proclaiming new features like a deep learning analytics metadata SDK, increased H.265 support, and UX...
Consumer IP Camera Analytics / AI Shootout - Arlo, Google / Nest, Amazon / Ring, Hikvision / Ezviz, Wyze Cam, Yi Home on Sep 26, 2019
AI analytics are hitting the mainstream in the consumer camera market, with entrants Wyze and Yi Home releasing free people detection on their...
Directory of 70 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Genetec Stratocast VSaaS Tested on Sep 05, 2019
The VSaaS market is rapidly expanding in 2019, with Verkada, Meraki, Eagle Eye, Avigilon and numerous startups growing their market share. When we...
UK Facewatch GDPR Compliance Questioned on Aug 27, 2019
Even as the GDPR strictly regulates biometrics, a UK company called Facewatch is selling anti-shoplifter facial recognition systems to hundreds of...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...
Razberi Technologies Company Profile on Aug 06, 2019
Razberi says they have doubled their revenue in the first half of 2019, citing their proprietary camera hardening and cybersecurity capabilities...
Avigilon Blue VSaaS Tested on Aug 05, 2019
Avigilon says Blue is a "powerful integrator cloud service platform", easy to set up and configure, quickly scale business, by leveraging cloud...

Most Recent Industry Reports

Axis "Best Of The Best" 4K Camera Tested (Q1798-LE) on Nov 21, 2019
Axis has released their "best of the best" Q1798-LE bullet camera, touting "4K without compromise" with a large Micro 4/3" image sensor, custom...
Glass Doors and Access Control Tutorial on Nov 21, 2019
One of the biggest access challenges are locking and securing glass doors. Unlike wood or steel doors that can be modified to work with...
Avigilon H4 Intercom Tested on Nov 20, 2019
Avigilon is well-known for video surveillance and access, but how well does the company's intercom work? We purchased and tested Avigilon's H4...
The Cowardly, Greedy "Leaders" of Video Surveillance - SIA on Nov 19, 2019
The video surveillance industry suffers from cowardly, greedy 'leaders' focused on maximizing easy money while undermining public trust. The...
Hikvision Dual Lens Face Recognition Camera Tested on Nov 19, 2019
Hikvision's Dual Lens Facial Recognition camera, claims that it "adopts advanced deep learning algorithm and powerful GPU to realize instant face...
Top Manufacturers Gaining and Losing 2019 on Nov 18, 2019
2019 has been an explosive year for video surveillance, with the world's two largest manufacturers, Dahua and Hikvision, being sanctioned for human...
Hidden Camera Detectors Tested on Nov 18, 2019
Hidden cameras are a growing problem as cameras become smaller, cheaper and easier to access. However, some companies claim to be able to detect...
Wyze Fires Back at JCI - Your Patents Are Invalid, Pay All Of Our Costs on Nov 18, 2019
Goliath JCI targeted startup Wyze this summer alleging the fast-growing consumer startup was violating a slew of JCI's patents. Now, Wyze has...
ADT Stock Surges - "Leading The Commercial Space" on Nov 15, 2019
Don't call it comeback... but maybe call it a commercial provider. ADT, whose stock dropped by as much as 2/3rds since IPOing in 2018, has now...