ObjectVideo Company Update and Analysis

Author: John Honovich, Published on Jan 14, 2010

This report shares information from a January 2009 interview with ObjectVideo executives. ObjectVideo is a leading intelligent video / video analytics provider.

In 2009, ObjectVideo consists of two major business lines:

  • OEM distribution of ObjectVideo software embedded in cameras, encoders and servers for 36 contracted partners
  • R&D organization that provides specialized solutions to government and military organizations

ObjectVideo reports that they were cash flow positive in Q4 2008 and expect to be in 2009.

Also as of Q4 2008, David McGuinness is the CEO of ObjectVideo. McGuinness was promoted from the VP of Professional Services. Raul Fernandez, formerly CEO and Chairman, continues in his role as Chairman of ObjectVideo.

In 2009, ObjectVideo is focusing their efforts of on OEM distribution, supporting partners to quickly and more effectively sell products using ObjectVideo analytics. ObjectVideo expects to see multiple partners release support for ObjectVideo running on DVRs of IP Video Surveillance Software using Intel Chips. This would add to their existing and primary distribution through cameras and encoders using TI chips.

While acknowledging the significant global economic issues, ObjectVideo sees the government as a strong customer and believes the large number of partners will help diversify and grow their business.

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Finally, CTO Dr. Alan Lipton, who many of you know from his presentations and public writing, is no longer with ObjectVideo.

Potential for OEM Business

ObjectVideo's business model has great potential. The fundamental strategy is to provide video analytics to any video surveillance device. The benefit to the video surveilance companies would be access to inexpensive, high-quality video analytics. With numerous partners, Objectvideo would be able to achieve great economies of distribution and marketing. Indeed, this is why the company has explicitly compared its strategy to Intel. Economically, this makes good sense.

Comparison to other OEM Strategies

In video surveillance, Pixim is a very good example of a company that has a similar business model. Pixim does not sell cameras. They provide chipsets to numerous camera manufacturers who build and sell cameras.

This is working out well for Pixim. They have no direct competitor and while a number of camera manufacturers offer other variants of WDR cameras, only Panasonic's seems to be respected.

By contrast, ObjectVideo has faced many more challenges. While it's been 6 years since they won the prestigious Best in Show at ISC West, it's clearly still a work in progress. There are dozens of analytic companies (I personally get emails from a new one, seemingly once a week). Plus, analytic has met increasing skepticism on performance.

While an OEM strategy has a lot of potential, significant issues exist for OV:

  • A very large number of direct competitors
  • Challenges on optimizing performance of video analytics

The harder it is to optimize a technology's performance, the more difficult it is to distribute through OEMs. By contrast, Pixim cameras require little if any on-site expertise making it easy to distribute broadly.

On-Board Camera Support

One of ObjectVideo's challenges is limitations on what cameras it can or does support. A number of significant competitors exist in this space. Customers want to use video analytics with existing cameras or with non-OV supported cameras (like Axis or Bosch). The challenge here is how do you use ObjectVideo with those cameras?

Neither Bosch nor Axis cameras support ObjectVideo. Bosch has their own video analytics. Axis only supports limited video analytics (like VIA:SYS) but not ObjectVideo.

In the last year or so, Agent Vi has gained a lot of interest primarily because it works on Axis cameras. Of course the downside of Agent Vi is the need for server processing. And the risk of VIA:SYS is how well it can perform given the limited resources of analyzing inside an Axis camera.

While I do not believe these alternative solutions will 'beat' OV in terms of performance, their existence clearly constrains the growth and use of OV.

All-in-One Appliances

The other major competitive approach is the all-in-one appliance: a single manufacturer building cameras and encoders, developing their own analytics and bundling them together.  ioimage is certainly the most successful and largest provider using this approach. With its numerous project announcements and widely held reputation for high performance, ioimage has built itself a strong position. Their success and performance is very likely attributable to the benefits of building an all in one appliance.

The downside of such appliances is significant. You have to buy your cameras and encoders from that manufacturer. This is very limiting. To the extent that the other manufacturers can offer comparable analytics, most customers would have strong incentive to shift to them.

ObjectVideo's Positioning

While the OEM strategy has long term potential, ObjectVideo is caught on multiple sides:

  • Numerous competitors offer similar video analytics
  • Larger manufacturers like Axis and Bosch continue not to support OV
  • Video Analytics appliance manufacturers seem to perform better

Recession and Presidential Impact

I think most would agree that the recession is a negative force on video analytics. I tend to think it will be a very negative force, given that video analytics require additional or new budget (harder to obtain in downturns). I also believe that Obama will reduce (or at least slow substantially) governmental spending on defense. While ObjectVideo clearly has strong relationships with the US government, it is conceivable that eventually have an impact on the lucrative R&D projects the company has.

While ObjectVideo's OEM strategy has great potential, significant challenges remain that will deepen in 2009.

Related Reports

Large Hospital Security End User Interview on Mar 21, 2019
This large single-state healthcare system consists of many hospitals, and hundreds of health parks, private practices, urgent care facilities, and...
BCDVideo Expansion And Switch From HP To Dell Examined on Mar 11, 2019
BCDVideo says they have more than tripled revenue in the past 5 years and are continuing to grow, powered most recently by switching their lead...
Church Technology Director Security Interview on Mar 07, 2019
With 40+ years of experience in IT from a wide array of verticals, including US and foreign military, and large corporate and industrial settings,...
Police Department Surveillance Manager Interview on Feb 28, 2019
Former Memphis PD Surveillance Manager, Lt. Joseph Patty retired months ago, but kept busy during his decades on the force, working to build up...
BluB0x Company Profile on Feb 20, 2019
BluB0x has doubled in revenue every year since its founding in 2013, according to CEO Patrick Barry. We originally reported on them in 2015. At the...
Solink Raises $12 Million - Company Profile on Feb 12, 2019
Most industry professionals have never heard of Solink, a company whose tagline is: It's time to revolutionize the way business uses...
ONVIF Video Surveillance Tutorial on Jan 29, 2019
ONVIF is well known within the surveillance industry as an interface to connect IP cameras and VMS systems. However, new users may find it...
Bosch Favorability Results 2019 on Jan 23, 2019
Bosch's favorability moderately strengthed, in new IPVM integrator statistics over their results from 2017, with 2019 results showing strong net...
Avigilon Favorability Results 2019 on Jan 15, 2019
Since IPVM's 2017 Avigilon favorability results, the company was acquired by Motorola and has shifted from being an aggressive startup to a more...
Gorilla Technology AI Provider, Raises $15 Million, Profiled on Jan 15, 2019
Gorilla Technology is a Taiwanese video analytics manufacturer that recently announced a $15 million investment from SBI Group, saying this...

Most Recent Industry Reports

Silicon Valley Cybersecurity Insurance Startup Coalition Profile on Mar 20, 2019
Many industry people believe cybersecurity insurance is not worth it, as the voting and debate in our Cybersecurity Insurance For Security...
Covert IP Camera Shootout - Axis, Hanwha, Hikvision, March, Vivotek on Mar 20, 2019
Covert cameras were one of the last holdout areas for analog cameras. However, in the past few years, IP / HD covert cameras have become...
Top Metrics For Ensuring Integrator Profitability - Statistics on Mar 20, 2019
How do integrators ensure the profitability of their projects? As part of our profitability study, 100+ integrators answered the following...
Avigilon Launches 'Renewed Products Program' on Mar 19, 2019
There are lots of 'pre-owned' cars but pre-owned IP cameras? While such programs are common in other industries, in video surveillance, they are...
Hanwha Tax Evasion Probe, Camera Division Implicated on Mar 19, 2019
A Hanwha group subsidiary was raided as part of a tax evasion probe. While a Korean news media report listed the raided entity as 'Hanwha...
Genetec Security Center 5.8 Tested on Mar 19, 2019
Genetec has released Version 5.8. This comes after a wait of more than a year that caused frustrations for many Genetec partners. Our previous...
Retired Mercury President Returns As Open Options President on Mar 18, 2019
Open Options experienced major changes in 2018, including being acquired by ACRE and losing its President and General Manager, John Berman who...
Large US University End-User Video Surveillance Interview on Mar 18, 2019
Schools have become targets in modern days of active shooters and terrorist fears. The need for video and access security is high. Universities...
Hikvision Favorability Results 2019 on Mar 18, 2019
Hikvision favorability results declined significantly in IPVM's 2019 study of 200+ integrators. While in 2017 Hikvision's favorability was...
ONVIF Favorability Results 2019 on Mar 15, 2019
In the past decade, ONVIF has grown from a reaction to the outside Cisco-lead PSIA challenge, to being the de facto video surveillance standard...

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