OnSSI Rebuts Milestone 'False Claims'

By John Honovich, Published on Nov 16, 2015

The war rages.

Milestone's 'free' takeover of OnSSI accounts is, unsurprisingly, causing OnSSI to push back. And the former #1 Milestone partner is pulling no punches, charging Milestone with making false claims.

In this note, we examine the counterpoints of each side.

********

** *****, ********* **** give **** ******** ******** to ***** ***** ***** that **** * ******* maintenance / ******* ****. If *** ***** **** does *** **** ***, all **** **** ** do ** *** *** 2 ***** ** *********** / *******, ***** ** 60% ** **** **** normal ********* ******* **** the ***** ******** ********. By *** ********, **** is ** ********** ****.

False ******

***** ******** "***** ******** that *********** ****** ** fair *** ******." *********, according ** **** ** not, ** **** **** in ***** "***'* **** **** ** False ******" ********, ********* *** Milestone ***** / **** (get ** '****'?)

***** ***** ********

*** **** ******* ******** / ***** ** **** OnSSI ** ******** ******** for **** *** ****'* maintenance **** (***** **** call ***********) **** *** systems **** *** *** of **** *** *****, noting:

"** ***** ********* ***’* have * ******* *********** software ******* ****, **** can ******** * ***-**** StayCURRENT **** *** ******* their ****, ****** *** camera ******** ** *** Ocularis * ***** ** their ******. "

**** ** * *********** cost ********* / ******* compared ** ********** ******** of ****** ** *** new ******** *** **** expensive **** *********'* *****. On *** ***** ****, this ** *** * false ***** ** *********, just * ***** ***** ***** by *****. (**** ** the ****** ********!)

**********

*** **** ****** '***** claim' ** ********* ** this: "** **** ** ***** you * ***-**** **** that *** ***************, ********* *********". ***** ******* ** this *** ********** **. The **** '********' ** hard ** ****** ***********, minimally, ** ******** * completely *** **** *********. Whether ** *** ********* is ****** ***** **** OnSSI, * *** ********* is * *** ********* and ** **** ******* training *** ****** ********* some ****** ** **********.

************

***** **** ******* ** Milestone ********* ***** *** ******** to OnSSI's, ********* ******** *** differences ******* *** ***. OnSSI **** ********* ****** their ******** *** '*************' to ***** ****, ***** Milestone **** *** **** 'alternative'. ***** ********* **** 'alternative', ** ***** **** is **** ** *** word *********** **** *** imply *** **** *****, just ********* **** ** similar.

********

*** **** ***** ******** from **** **** *** forth ** **** ******* side ** ******* **** and ***** ** ******* hostility ****** ****.

The ******** *****

**** ********* ****** ** selling ******** ********. **** companies *** ******** ***** prices ** * ******, lose / **** ******. Even *** ****** *** gets *** **** ********* will ***** **** **** with *** ***** **** prices *** *** **** profits, ** ***** *** any ******* ** ** made ** ***.

***** ** ***** ** both *****. ***** *** reckless ** **** ********* (OnSSI **** ** *** their ****). ********* ** reckless ** ******* **** such ******* ***** *****. Ultimately, ** ******* *********, as * ***** **********, has ** ********* *** it ** *** ******* for ******.

Comments (13)

Undisclosed #1

IPVMU Certified | 11/16/15 05:30pm

...but it is not healthy for anyone.

Except maybe the end-users?

John Honovich

IPVM | In reply to Undisclosed #1 | 11/16/15 07:38pm

Healthy for end users is when companies develop new technology or methods that actually lowers cost, not when companies cut costs in a frantic race to the bottom. I do think there are some short term benefits for end users but if companies cannot make money, it means they likely will scale back other things like new development or support.

Undisclosed Manufacturer #3

In reply to John Honovich | 11/17/15 01:06am

While your statement is true, Milestone has no downside on this one. They've already been getting a low percentage (about 30-35% of MSRP probably) from their cut on these OnSSI customers, which weren't going to move over. This move means Milestone keeps getting paid on them instead of losing this revenue. If they do nothing, they lose the lower revenue that they were already getting before.

OnSSI on the other had has two choices -- either lower their prices to simply keep these customers (though their margins are higher now that they no longer pay Milestone), or lose them altogether.

In the end, both were already used to lower margins for these users and have the ability to capture a higher margin or lose it, so really, what is the risk of this behavior? Surely, neither will make this offer to new users that are either greenfield or users of other software platforms, so it really is just a race to KEEP these customers rather than see that revenue disappear.

To me, it seems like the right move, though I do agree that it's annoying for the rest of the industry to see it happen.

John Honovich

IPVM | In reply to Undisclosed Manufacturer #3 | 11/17/15 01:18am

"This move means Milestone keeps getting paid on them instead of losing this revenue. If they do nothing, they lose the lower revenue that they were already getting before."

And in exchange, Milestone now needs to incur additional sales and support costs that did not exist when they OEMed through OnSSI. So, at best, revenue is neutral, but costs are much higher. It might look steady top line but will be worse bottom line.

"both were already used to lower margins for these users and have the ability to capture a higher margin or lose it, so really, what is the risk of this behavior"

The risk is that OnSSI just bought Seetec and their unit revenues will be higher now but they have (1) the cost of Seetec (whether its debt financing or new equity) and (2) the now ongoing Seetec development operational costs to pay. So, yes, they having savings from eliminating Milestone but now they have costs for paying for Seetec.

Undisclosed Manufacturer #3

In reply to John Honovich | 11/17/15 01:42am

To your Milestone point, I'm willing to bet that Milestone already provided a certain level of tech support to OnSSI, so that might not be as much of a cost as you might think. And it's probably safe to assume that a decent percentage of those systems don't / won't need any real significant tech support, if any at all.

I do agree with your OnSSI point, though if the choice is lower price to keep customer or higher price to lose customer, I'd guess that they're willing to take every dollar they can get their hands on.

Good points on both, though...didn't really consider either of them.

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 11/17/15 05:34am

Milestone now needs to incur additional sales and support costs that did not exist when they OEMed through OnSSI. So, at best, revenue is neutral, but costs are much higher.

How is revenue at best, neutral?

They had to split the revenue with ONSSI before, now they don't.

John Honovich

IPVM | In reply to Undisclosed #1 | 11/17/15 11:47am

So before the breakup, OnSSI sold VMS licenses for 100 units (just call it units to show the trend). OnSSI paid 30 - 50 units (roughly, don't know, just guessing) to Milestone.

Now OnSSI is selling VMS licenses for 20 - 40 units (because Milestone is giving VMS licenses to their customers for free or at huge discounts). So costs are down (i.e. payments to Milestone) but revenue is down as much or more. Yes/no?

Undisclosed #1

IPVMU Certified | In reply to John Honovich | 11/17/15 03:36pm

One thing that you're overlooking is that Milestone only gives free product for the life of your ONSSI SUP, assuming a natural distribution, we would expect 1/12 of the one year SUPs to expire in the first month, and 50% of them in 6 months.

When they expire and renew, Milestone now captures ALL the revenue that they used to split.

You can argue about the aging, or that not everyone will continue, but still this is added revenue.

John Honovich

IPVM | In reply to Undisclosed #1 | 11/17/15 03:43pm

"this is added revenue."

Low bar to set.

"When they expire and renew, Milestone now captures ALL the revenue that they used to split."

If that is such a fantastic business plan, why does not Milestone do it for everyone? Milestone is giving them brand new software. How many are going to be motivated to pay a premium when they just got new stuff for free?

I get that Milestone sees potential in future upgrades, expansions, maybe someone makes a mistake and adds a Husky appliance, etc. Basically what you are saying is this is a loss leader. Hopefully they make it up later.

Undisclosed End User #2

11/16/15 06:00pm

Honestly - why are you even giving OnSSI the time of day in this - they need to learn that business is, to quote Hobbes, "Nasty, Brutish and Short". They are the prey in this cycle. The horror stories associated with their upgrades to 5.1 have been the thing of legend. Milestone saw an opportunity to turn customers to their product. Even if there was a small "fudge" on the upgrade path, in the end the Customers win. Additionally, if I were a customer, I'd want the company that was well financed, backed and had the technical means to survive the VMS wars. As far as I'm concerned, that's Milestone.

Just my two-bits.

Undisclosed #4

In reply to Undisclosed End User #2 | 11/17/15 02:54pm

"The horror stories associated with their upgrades to 5.1 have been the thing of legend."

Really? I had not heard of this legend.

Aside from the above hyperbole from someone obviously from the other camp, can any OnSSI dealers give us a real account of what they've experienced during the transition to the new recorder platform?

Sal Visone

DWG | IPVMU Certified | 11/23/15 08:23pm

Where are they pulling the Milestone claims from?

John Honovich

IPVM | In reply to Sal Visone | 11/23/15 10:56pm

Milestone's An Offer Like No Other

Read this IPVM report for free.

This article is part of IPVM's 6,581 reports, 886 tests and is only available to members. To get a one-time preview of our work, enter your work email to access the full article.

Already a member? Login here | Join now

Related Reports

JCI Coronavirus Cuts on Mar 31, 2020
JCI has made coronavirus cuts, the company told employees in an email that...
Canon Company Milestone Takes $1+ Million PPP Money on Jul 16, 2020
Milestone, a Canon company, took $1 million+ in PPP loans, despite being part...
OnSSI Founders Return, Start Corsight on May 25, 2020
The OnSSI founders are back, less than 2 years after selling OnSSI to...
Wrong Dahua Australia Medical Device Approved on Jul 20, 2020
Dahua's body temperature system is now in Australia's medical device...
Worsen: Integrators Hit Even Harder By Coronavirus on Mar 30, 2020
Integrator's problems have worsened over the past 2 weeks, according to new...
No Blackbody Mistake, Half Million Dollar, Hikvision Fever Camera System in Georgia on Sep 16, 2020
A Georgia school district touted buying Hikvision fever screening "about...
SIA Coaches Sellers on NDAA 889B Blacklist Workarounds on Aug 05, 2020
Last month SIA demanded that NDAA 899B "must be delayed". Now that they have...
Wyze Fails To Deliver Own On-Board Analytics, Launches Novel Name Your Own Price Service on Jul 24, 2020
While Wyze failed to deliver their own onboard analytics to replace the...
Milestone Presents XProtect On AWS on May 04, 2020
Milestone presented its XProtect on AWS offering at the April 2020 IPVM New...
Trade Groups Request NDAA Blacklist Delay Citing Coronavirus on Apr 06, 2020
Two trade groups representing government contractors have asked Congress to...
Milestone CEO Resigns on Mar 11, 2020
Milestone's CEO has resigned, after 17 years on the job but there is no...
70+ Security Industry Companies Take $50 Million PPP Funding on Jul 15, 2020
70+ security industry companies have taken more than $40 million in PPP...
Favorite Access Control Manufacturers 2020 on Sep 28, 2020
200+ Integrators told IPVM "What is your favorite access control management...
Beware Of Feevr on Apr 14, 2020
Beware of "Feevr". The company is marketing a 'Feevr' solution that...
CDW Sells School District 36 Low-Res, No Blackbody Hikvision Fever Cameras With Federal Funds on Oct 01, 2020
Mega IT distributor CDW sold low-resolution Hikvision fever cameras with no...

Recent Reports

Panasonic Presents i-PRO Cameras and Video Analytics on Oct 19, 2020
Panasonic presented its i-PRO X-Series cameras and AI video analytics at the...
Augmented Reality (AR) Cameras From Hikvision and Dahua Examined on Oct 19, 2020
Hikvision, Dahua, and other China companies are marketing augmented reality...
18 TB Video Surveillance Drives (WD and Seagate) on Oct 19, 2020
Both Seagate and Western Digital recently announced 18TB hard drives...
Watrix Gait Recognition Profile on Oct 16, 2020
Watrix is the world's only gait recognition surveillance provider IPVM has...
Intel Presents Edge-to-Cloud Ecosystem for Video Analytics on Oct 16, 2020
Intel presented its processors and software toolkit for computer vision at...
Best Manufacturer Technical Support 2020 on Oct 16, 2020
5 manufacturers stood out as providing the best technical support to ~200...
Microsoft Azure Presents Live Video Analytics on Oct 15, 2020
Microsoft Azure presented its Live Video Analytics offering at the September...
Worst Manufacturer Technical Support 2020 on Oct 15, 2020
4 manufacturers stood out as providing the worst technical support to ~200...
Clorox Announces, Then Pulls, Fever Camera on Oct 15, 2020
For almost one week, Clorox was marketing fever cameras. The booming...
Faulty Hikvision Fever Cam Setup at Mexico City Basilica and Cathedral on Oct 14, 2020
Donated Hikvision fever cameras (claiming screening of 1,800 people/min. with...
Directory of 209 "Fever" Camera Suppliers on Oct 14, 2020
This directory provides a list of "Fever" scanning thermal camera providers...
Avigilon UMD / UAD Tested on Oct 14, 2020
Avigilon's Unusual Activity Detection and Unusual Motion Detection claim to...
Longse Promoting Hikvision Partner Fullhan Chip Based Cameras on Oct 14, 2020
With Huawei HiSilicon production being shut down at TSMC, camera...
Meridian & Goodview (BEMS Relabeller) Temperature Screening Tested on Oct 13, 2020
A lot of temperature tablets look exactly alike and that is because they use...
Monitoring Alarm Systems From Home - Innovation or Danger? on Oct 13, 2020
Remote monitoring by alarm companies since COVID-19 is bringing cost savings...