NICE Acquires Orsus - Confirms Weak PSIM Market

Author: John Honovich, Published on Nov 22, 2009

NICE Systems has acquired Orsus for $22 Million. While this looks to be a good deal for NICE, it raises many important questions for the state of the PSIM market.

Background

On November 23, 2009, NICE confirmed that it is acquiring Orsus. NICE, one of the leading video surveillance manufacturers, plans to integrate Orsus's PSIM offering (called Situator) with NICE's portfolio of video and security product offerings.

Earlier reports indicate that Orsus raised over $70 Million in funding. However, over half of that funding was raised during the dot.com bubble prior to switching to and developing a security product.

NICE disclosed that Orsus's revenue will contribute "several millions of dollars in 2010."

The Good

We see two good and positive signs from this acquisition:

  1. Given NICE's strength, size and complimentary market position to Orsus's product, NICE should successfully expand the sales and deployments of Orsus's products.
  2. Given NICE's relatively conservative acquisition history, this acquisition signals that a major player believes that PSIM products can be financially profitable.
 
The Bad
 
At the same time, the acquisition raises some troubling concerns:
  1. Orsus is one of the leading PSIM providers with the most publicly announced wins yet has low revenue.
  2. If PSIM is the next 'big thing' as many convergence proponents advocate, a $22 Million acquisition does little to validate this.
  3. The other PSIM companies (including CNL, Proximex and Vidsys) now have a fairly low benchmark for their own valuations.
 
We have been bearish on PSIM over-hype for a long time. See our original examination of PSIM's problems.
 
Examining NICE and Orsus
 
In the premium section of this report, we examine NICE and Orsus's products, how their joint offering is likely to be positioned and the potential impact on the PSIM market.

**** ******* *** ******** ***** *** $** *******. ***** **** looks ** ** * **** **** *** ****, ** ****** many ********* ********* *** *** ***** ** *** **** ******.

**********

** ******** **, ****,**** ********* **** ** ** ********* *****. ****, *** ** *** ******* ***** ************ *************, ***** to ********* *****'* **** ******** (**************) **** ****'* ********* ******* *** ******** ******* *********.

******* ******* ******** **** ***** ****** **** $** ******* ** funding. *******, **** **** ** **** ******* *** ****** ****** the ***.*** ****** ***** ** ********* ** *** ********** * security *******.

**** ********* **** *****'* ******* **** ********** "******* ******** ** dollars ** ****."

The ****

** *** *** **** *** ******** ***** **** **** ***********:

  1. ***** ****'* ********, **** *** ************* ****** ******** ** *****'* product, **** ****** ************ ****** *** ***** *** *********** ** Orsus's ********.
  2. ***** ****'* ********** ************ *********** *******, **** *********** ******* **** a ***** ****** ******** **** **** ******** *** ** *********** profitable.
 
The ***
 
** *** **** ****, *** *********** ****** **** ********* ********:
  1. ***** ** *** ** *** ******* **** ********* **** *** most ******** ********* **** *** *** *** *******.
  2. ** **** ** *** **** '*** *****' ** **** *********** proponents ********, * $** ******* *********** **** ****** ** ******** this.
  3. *** ***** **** ********* (************,*****************) *** **** * ****** *** ********* *** ***** *** valuations.
 
** **** **** ******* ** **** ****-**** *** * **** time. *** *** ******** *********** ******'* ********.
 
Examining **** *** *****
 
** *** ******* ******* ** **** ******, ** ******* **** and *****'* ********, *** ***** ***** ******** ** ****** ** be ********** *** *** ********* ****** ** *** **** ******.

[***************]

NICE ******* ********

**** ******* ********* $*** ******* *** ** **** ******* *** has * ****** ************** ** ***** $*.* ******* *** (******* ***** *****).

**** ***** **% ** ****'* ***** ******** **** **** *** public ****** *** ******** ******. *** ******** ** ******* ** from****'* ********** *********** *********.

****'* "****** ****** *** ******** ******" ******* $*** ******* *** revenue ** ****, ** **** $*** ******* *** ******* ** 2007 (*** **** ** ** ***** **** ****** ******). ** **** ******* *** **** **% **** **** **** ($35 * *** ** **** ** $** * *** ** 2008).

***** *** ******* *** *** ***** *** ** ****'* ******** $100-$150 ******* ****** ******** ******, **** *** **** ******** ********** Orsus' ******** ** * ********* *** *** ********** ******, ***** Situator ** * ********** ****.

NICE's ******** *** ***********

** *** ******** ******, **** ****** * ***** ********* ** video ************ ******** ******* **** ********, ****, ****, ** ***** management ********. *** **** ********* ****** ***** ** **** *** products *** ******** ** *** **** *** ** *** ****** that ***** ******** ********.

******* ******** ****'* ***-***** ****** ********** **** ****** ***** ** ****** and ****** ***** **** ****'* ******* ********* *** ********. ************* includes ***** ********** *** ******* ****** - *** ********* ******** for **** *** / ********** ***********.

********** ***** ****'* ** ***** ********** ******** **** ******** **** *** appliances *** ******** **** ********.

********** ********* ****'* *********** *** **** ********* * ****** - *** high *** *** **** ******** ** ** ** ****** ******** per *********, *** *** *** **** **** ******** ** ** 32 ******** *** *** ***** ********* *** ** ** * channels.

********** *********** ****'* **-***** ***** ********* *********. ****** **** ***** *** providers, **** ******** *** ******** ***** *** ******** ***** ********* that *** *** ** ***** *** ********** ** ** ******* using ****'* *** ** ***** ********.

********** ********* ****'* ***** ***** ** ***** ******** ********* ** ******** only ** ** ** *** *********. **** ** *** **** non-enterprise ********** *******. *******, **** **** ** ******** ** ** fully ********** *** *********** ** ****'* ********** *******.

*******: ***** **** **** *** ******** ******* ********, ** ** well ***** **** ***** ******* ** ******* *** ********* ******* or ******* ***** ********** ***** ******** **** ** ******, *********, Genetec, ***.

Orsus's **** ********

***** ****** * ****** ******* -********- * ******** ******** **** (*) ********** **** ******* *** party ******* *** (*) ******** *********** ** *********** ********** ******* improved ******** *** *********** **** ********** ***-*******.

***** ******* *** *************/******** **** * ********:

  • ****** ***, **** ** ***** ************** ** *********** **** ********** *** response *********. **** ******** ******* ** *********** **** ******* ********** including *****, **** *** *** *********** ********** ** ****-**** **** various ****** ****** (**** ********, ******, ***.)
  • **********, **** ****** ****** ********** ** ******* *** ******* ***** standard ********* ********** ** ******** ******* *********.
  • *************, **** ** ** ************* *** ******** **** **** ***** operators ********** ********* *** ********* **** ******* ****** ** **** to ****** ****** *********.
 
***** **** *** ******** ******** ***** *** ***** ************ (******* to ****** *** **** ********* *** *** ****** ********* ** show *** ***** * ********** ** ***** ******* *** *********). That *****, **** ******** *******, ** *** *** **** ***** integrated **** ****** ** ******* ******* *** ****** *** *** of *** **** ********* **** ** *** ***** ******* *********. [Update: **** ********* *****'* ******* ************, ******** * ***** ** '150 ********* ************'.]
 
*******: ***** **** *** ******** ******* (******* ** ****** *** PSIM *********). *******, *****'* ******** **** ** ** **** ***** scale. ** ******** **** **** ** ***** ******** *** ** least $***,*** *** **** * ****** ***** ****** $* ******* USD. *** ** ******** ** ***** ********, ********'* **** ***** *********.

*****'* **** ****** ******** ******* ** ******* *.* (******** ** 2009). *.*'* ******** *** ********** ** *** **** **** *** of *** ******. ************, ***** ********** ***** **** *** *** only ******** *** *****-***** ******* *********** ***.

***** *.* ******* ******** * ******* ** ****** ************* ********* a ********* ****** ******* ********** *********, *****/********* *** ******** *********, changes ** *** ***** ****** ** ****** ******* ***** ********** and * ********* **** ** ************* *********** **** ******* ** access ******* *******.

*** ***** ************ ******** ******** ***** *******: (*) * ***** pursuit ******** **** ********** ******** ******** **** ****** ** ****** (at * **** *****, ** ***** ******* ** ******** ********* from ****** *** ********) *** (*) *** ******* ** ****** different ****** *** ** **** ********'* *********** (******** *** ********, for ********, ** *** * ** *** *** ******* *** (say *** * ******) ** *** * ** ***).

** ******** ****, ***** ****** *******. ***** ******* **** *** *********** *** **** ********* *** Cinario's ******** **** (** ******) *** **** *** ********** *** similar *** *** ********* ** ***** ******** ********).

NICE - ***** ****** ***********

***** *** '***** ** ****' *** **** ** ** ******* an *********** ****** **** ********** ******* ***-*******, **** ** **** likely ** ** ** *** ******** *********.

*****, **** **** ** ****, ******* *** ********* ** ** integrate ***** ******** "**** ** ******* * ************* ***-********** ********* of ******** ********** *********."

********, *** ***** ******* **** ** * ***** ********* ** NICE's ******* ********* ***'* ******* **** **** ** ** ********** the **** ** ****'* ******** ******** ****** **** ** **** an '***********' **** ******.

*****, ***** **** ********** ******** ***** ***** *******, **** *** never ********** ****** ** * '**** ********' ******* **** ***** to ********* **** ******** ** *** ***** ******* (******** ** an '****' ****). ******, ** ** ****** **** ********** ** use ***** ** ******* ****'* **** ******** **** ** ******* an '****' ****.

* **** ********** ******** *** *** ****/***** *********** *** ****'* ******** *********- * ******* *** ******* ****** **** ******** *** ***** systems *** ** ********** **** *** ******* ** **'* ********.

Impact ** ***** **** *********

** *** ******** **** *** ***** **** *************, **** ****** reduces ***********. **** **** **** ****** ***** ** ***** ******** customer **** *** ******** ***** **** *** ******** **** **** have * ****** *********** ** ******* **** ***** ******* ******* portfolio.

** *** ******** ****, **** ******** ******** *** **** ****** of *** **** ******. ** ** **** ** **** ***** stage ******* ** ******** ** ********* *** ******** ****** ********* success. **** ********** *** ******* ***** ** **************** *** **** ***** be **** ** ******* ***** *****'* ********** **** ****** ** publicly ********* ******* ****.

*** *** **** ******* ****** **** *** **** **** ********** that ***** *** - ********* ****** *** ******** *******, **** costs *** ************ ** ********* ****** (** ********) ** *************, complex *** ****** *********** **** *********** *** *** ******* **********.

** *** ***** ****, ***** ******* **** ** **** *** other **** ******** ** ******* ** **** ***, *******, ***** scale *********. *** **** *** **** ** **** *** ** the ********* ************ *** **** **** ****** *** ********** ****** to ******* ** **** ****** **********. **** *** ****** *** with *** ********* **** ****, ** ***** ** ** * long **** ******.

Login to read this IPVM report.
Why do I need to log in?
IPVM conducts unique testing and research funded by member's payments enabling us to offer the most independent, accurate and in-depth information.

Related Reports

Vivotek Acquisition Offer From Delta on Aug 10, 2017
One of the largest remaining independent video surveillance manufacturers has received an offer to become majority owned by Delta Group, a Taiwan...
Competing Against Convergint on Jul 24, 2017
No integrator is more aggressively expanding than Convergint Technologies. Owned and funded by private equity firm KRG, Convergint has acquired...
March Networks Company Profile on Jul 17, 2017
March Networks was one of the most well-known video surveillance manufacturers of the 2000s. In 2012, March was acquired by Chinese / American...
Genetec Mission Control Tested on Jul 13, 2017
Genetec continues to move up market with their Mission Control, "Decision Support System", bringing PSIM-like procedures and incident management to...
Resolver Raises $20M For Acquisitions on Jun 29, 2017
Resolver has closed a $20M funding round, and has several acquisition targets lined up already. Industry people might better now Resolver from PPM...
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,...
Ex-ADT President And PE Firm Pay $200M+ For Alarm Dealer Guardian on May 31, 2017
Private equity firms are on the hunt for security companies with strong RMR numbers. One such security company, Guardian Alarm, was recently...
Dell EMC Surveillance Division Profile on Apr 20, 2017
With revenue growth from traditional IT customers slowing, Dell has set a focus on the security industry as a market where the company can offer...
ObjectVideo Acquired by Alarm.com on Mar 14, 2017
Once potentially the most recognized name in video analytics, ObjectVideo has effectively been sold for pieces. Alarm.com has now acquired what...
Tyco PSIM Proximex End of Life on Mar 06, 2017
The end of life for Tyco's PSIM Proximex is here, with no more product releases coming and 3 years of remaining support. Inside this post, we...

Most Recent Industry Reports

Save $50 - IP Networking Course September 2017 on Aug 16, 2017
Tomorrow, Thursday, August 17th is the last day to save $50 on the September IP Networking Course. This is the only networking course designed...
Hikvision Responds To Cracked Security Codes on Aug 15, 2017
Hikvision has responded to IPVM's report on Hikvision's security code being cracked, both with a 2 page update to dealers and communication...
Stolen Video NVR / DVR Statistics on Aug 15, 2017
"But what happens if someone steals my recorder?" Anyone who has done more than a handful of jobs has probably heard this question several times....
Hikvision Europe Cutting Out Unauthorized End User Sales on Aug 15, 2017
The days of anyone buying Hikvision from anywhere off the Internet are numbered, at least in Europe, if Hikvision's plan comes to fruition. In...
Axis Laser Focus PTZ Tested on Aug 14, 2017
Axis has been touting its new Q6155-E laser focus PTZ as 'always in focus' and 'always in color'. Does it really deliver? We bought and tested...
Vulnerability Directory For Access Control Cards on Aug 14, 2017
Knowing which access credentials are insecure can be unclear, especially because most look and feel the same. Even the most insecure 125 kHz types...
IP Camera Specification / RFP Guide 2017 on Aug 14, 2017
RFPs are hard. Do them 'right' and it takes a lot of knowledge and time. Do them 'wrong' and you can be (a) unwittingly locked into a specific...
Cellphone Usage Issues For Integrators (Statistics) on Aug 11, 2017
Cellphones clearly offer significant advantages in communication and problem solving. But they can also be a major pain point if employees...
Rebooting IP Camera Statistics And Practices on Aug 10, 2017
Dahua cameras automatically reboot weekly, by default. Is this an innovation by the Chinese mega-manufacturer or a sign of a problems? 125...
Avigilon Profits Surge, Stock Jumps (Q2 2017) on Aug 10, 2017
Avigilon said earlier this year they would shift their strategy to maximizing profits. Now, they are delivering it and the stock market is...

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