Panasonic Free VMS Licenses Program

Author: John Honovich, Published on Apr 21, 2015

Looks like Tyco is a trendsetter.

Weeks after Tyco starting giving free Exacq licenses, Digital Watchdog followed suit and now the biggest camera manufacturer yet is offering free VMS licenses.

In this note, we look at Panasonic's move, what it includes and how this is likely to impact the market.

***** **** **** ** * ***********.

***** ***** **** ******** ********** ***** ********, ******* ******** ******** **** *** *** *** ******* ****** manufacturer *** ** ******** **** *** ********.

** **** ****, ** **** ** *********'* ****, **** ** includes *** *** **** ** ****** ** ****** *** ******.

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

********

** ******** ****,********* ****** ** *** ************ ***** *******. ** **** ****, ********* ********** *** ***** *** ** was ********* ** ***** ******* *** **** **** ********** ******* for ***** ***** *****.

**** **** * ******, ********* *** ********* **** *** **** Panasonic ****** ****** ******, * **** ***** ******* *** ******* would ** ********.

How ** *****

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

"******** *** *** **** ******* ** *** ******* *** ******* a ** ****** ****** *** *****.  ****** *** ************, *** customer **** ****** “********* ******” *** *** *** **** **** for ******** ******* (** *** ******** *** ******** ***** *** IP ******* ** *** *******.) ** *** ****** *** ** on * *********** **** *** ***** *** ********, *** *** will **** *** ***** *** ****** ******* ** ** *** be ***** *********.  ** *** ****** ** *******, *** *** will ***** *** **** ** ******** * **** *** ************ upload ** ** *** ** ******* ****** ** ****."

*** ******* ****** ** *** *, **** *** **** *** include ********** ********* ********* *******. *******, ************ ***** **** **** "******** ** ***** * ********* **** $** *** ****** *********** upgrade **** ****** ********* ******* ***** *** ******** ** ****** to ** *** ******* *** ******** ** *** ******."

** **** *** ******* ****** ************'* ******* / ********** (****** the***** *******), ******** ********* ***** ** ****** ***** *** **** ********.

************ ********* **** ****** ******* ******** *** ****** ****.

What ******* ** ******

***** *** ~*** ********* ******* *******, ********* **** ** ******* is *** ** ***** ************ ******* *** **** * *** of ***** *** / ******** ********* **** *** **-*****. ** **** ***, ** ** ****** *********. ** *** other ****, ********* **** *** **** $*** ** *******, ** almost *** *** ******* ******** *** **** ******** *** ***** to ** $***+, **** **** ~$*,***.

Competitive ******

*** **** *********** ********* ****** ** *********** *** ******* ******** that *** ******** ****** ** ***** **** ** **** ** a ****** ****. *** ***** **** **** ********* ******* ****** *** *** ***** ***** ***, *** *** ****** **** **** ****** ***** ********.

*** *********, **** ******* * ****** ***** ****, ***** ** helps ******* * ******* ***** / ****** **** ***** **** no *** ****. ** ******, *** ***** *******, ** ***** get **** ****** ****** / ***** ***** ********, ** ** taps **** *** ****** ***** ********* ** ****** ******** ****.

*** ******* ** **** **** ** **** *** *** *** less ********* **** ******* **** ***** ************* *** **** ***** VMSes *** ****** ****** ** ****** *** ***'* ***** **** VideoInisght (**** ***** ** * ********** ******* ********, *.*.).

**** ******* ** ** **** ** *** *** ************* ** with *** **** *** ******. ************ ************* ***, *******, ********** to ****, ** **** ***** ** **** ********* ** **** away *** ******** ** **** ******* ** **** ******** ***** camera *****.

What ** *** *****?

Comments (6)

Chris,

While we have you here, as one of the last independent VMSes left, I'd be curious to hear your specific pitch against the free VMS bundles.

From an outsides perspective, I would be weary of using anything free for such a critical process. More importantly how will the customer react when they learn the software selected to secure their facility was free?

From an insider's perspective, IPConfigure invests blood and treasure into developing innovative software solutions with a team that's passionate about the important work they are doing. I could not imagine how the team might react if I told them we are selling the business to a camera manufacturer who will be giving our software away for free. Needless to say their best work would be behind them.

The consolidation of VMS manufactures went all wrong and will negatively impact the rate of innovation in the market. Silicon Valley was suppose to make the big move into this space, not the old guard who have been getting it wrong for so long.

Innovation and great customer support can only come from independent VMS companies. For they have everything to lose if they don't get it right.

I think it's a mistake to simply take the fact that vendors are offering their cameras with 'free' VMS licensing to mean that they don't recognize the value of VMS software. Just the opposite.

The reason bundling is attractive to buyers is because they save money, of course. And the reason it is attractive to the vendors is because they can make a sale that they may have not made otherwise.

And if that were all there were to it, then there is definitely an argument to be made saying the VMS license is worth so little that it can be just thrown in for free.

But another big vendor benefit, apart from the initial $ from the sale, is the channelling of the user into a controllable eco-system of the vendors choosing. And that can translate into many times the profit down the line as the end user is more likely than not to continue on their initial path with respect for to purchases.

Since the vendors cameras will always be supported first and best by their own VMS, this adds stability to the system that the end-user may not want to risk.

On the other hand if one were to buy one Panasonic cameras, and seperately purchase Christopher's IPConfigure product the situation changes. Even assuming that IPConfigure were to be an overall better VMS, there would be times when integration with Panasonic would be behind VI.

That's when the customer starts to think, "maybe I should buy the cameras that have the best features AND are supported by IPConfigure", instead of thinking Panasonic automatically.

This unrecognized eco-system affinity is a large part of the value of the VMS for a camera manufacturer, and bundling is the natural way to derive maximum value from it.

"But another big vendor benefit, apart from the initial $ from the sale, is the channelling of the user into a controllable ecosystem of the vendors choosing."

We call this vendor lock-in, which makes for a difficult exit if the customers finds the solution inadequate or seeks features not available in the Free VMS.

"Even assuming that IPConfigure were to be an overall better VMS, there would be times when integration with Panasonic would be behind VI."

This is where ONVIF profiles -S and -Q address integration gaps with VMS manufacturers. Note, not all integration is equal but the VMS should have those risky manufactures identified for their resellers.

"This unrecognized eco-system affinity is a large part of the value of the VMS for a camera manufacturer, and bundling is the natural way to derive maximum value from it."

If you are in a race to the bottom then I completely agree.

Regards,

Chris

Thanks for the insightful response.

The customer saves money while the vendor/reseller makes more money? Actually, the vendor is losing the VMS revenue opportunity under the free model.

The customer appears to save money, the 'free' VMS appears to be a total loss. Neither is necessarily the case.

Yes, this is vendor-lock in strategy, and I'm not advocating it, only recognizing its overlooked contribution to the vendors decision to bundle in the first place.

Yes, ONVIF has made great strides in reducing the degree to which one is limited by such an arrangement. That is why I used the term vendor affinity instead of lock-in. But still there will be at least some benefit for some time to come.

And from an independent VMS manufacturer's perspective, it might seem like it is purely a 'race to the bottom', but from the point of view of someone who sells both cameras and VMSes, it may not be the case.

Imagine you are Panasonic and want to increase sales, you could just discount your hardware and charge fairly for your VMS, or instead keep the hardware the same and give the VMS away 'free'. Its a trade off from their point of view, not necessarily a race to the bottom. Anyway it's not a race because $0 is the bottom.

But I do agree with you that the appeal is lessening everyday as interoperability increases.

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 on VMS

IBM / Genetec Surveillance System Investigated Over Philippines Human Rights Abuses on Mar 22, 2019
A lengthy investigation into an IBM video surveillance project in the Philippines, raising concerns IBM helped local police conduct a bloody...
Eagle Eye Favorability Results 2019 on Mar 21, 2019
Eagle Eye has been the biggest spender in the cloud VMS market including (via their owner) acquiring Brivo for $50 million and CameraManager from...
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...
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...
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...
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...
City Physical Security Manager Interview on Mar 14, 2019
This physical security pro is the Physical Security Manager for the City of Calgary. He is a criminologist by training with an ASIS CPP credential....
Pelco GFC 4K Dome Camera Tested (IMP831-1ERS) on Mar 12, 2019
Pelco has finally released their first 4K IP camera, after years of competitors' releases. Is this move too late? Or is their new GFC Professional...

Most Recent Industry Reports

IBM / Genetec Surveillance System Investigated Over Philippines Human Rights Abuses on Mar 22, 2019
A lengthy investigation into an IBM video surveillance project in the Philippines, raising concerns IBM helped local police conduct a bloody...
Eagle Eye Favorability Results 2019 on Mar 21, 2019
Eagle Eye has been the biggest spender in the cloud VMS market including (via their owner) acquiring Brivo for $50 million and CameraManager from...
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...
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...
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...

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