Pelco's All-HD Gambit: Who Wins? Who Losses?

Author: John Honovich, Published on Mar 27, 2010

In a much publicized move, Pelco's booth at ISC West was 'all-HD': HD fixed camera, HD PTZs, HD monitors, HD NVR appliances, etc.

Even in an industry where nearly all the incumbents are now marketing IP heavily, this move stood out for it's 'bet the farm' approach. [As background, review Pelco's admission of heavy sales declines in 2009].

Who Loses?

The clear loser here is analog CCTV sales, both for Pelco and for other incumbents. Such marketing reinforces that analog video is antiquated and not worth buying (whether it's true or false). The message has more impact because Pelco is arguing against it's own interests. Pelco's size and marketing size is large enough to have a material impact, especially in North America.

Who Wins?

By contrast, IP video sales clearly benefit from this.

In November 2009, we estimated that IP video sales would increase 200% between 2010-2012. We see this move as an important driver in reinforcing high growth rates. As we argued at that time, the incumbents would play a major role in accelerating growth levels. Regardless of how successful Pelco ultimately is in IP video, their current plan will accelerate IP video growth in 2010 (both for themselves and their competitors).

What about Pelco and its competitors?

We think this is a risky approach for Pelco. While we believe their IP portfolio can be competitive against other analog incumbents (Tyco Security, DM, Honeywell, Samsung, Bosch, etc.) who have limited IP options, they still have an uphill battle against the pure IP players (whether it's Axis or ArecontVision on the H.264 megapixel side or Genetec, Milestone, etc. on the VMS side).

Take Pelco's Sarix cameras. They are expensive (2MP are $1100 or more on-line pricing), have (at best) modest third party support and are only available in a few form factors (box, indoor and outdoor dome). Contrast this to Arecont where they lose on price, 3rd party support and breadth of product options (e.g., 180 and 360 models). Contrast this to Axis where Pelco is close on price but far behind on 3rd party support and Axis's massive range of product options (including lower cost and premium offerings).

Maybe this is the right move for Pelco at the right time. We do not know enough about Pelco's internal workings to make an informed claim here. However, it's clear that Pelco's all HD marketing effort is a boon to Pelco's IP competitors with superior strength in H.264 HD.

Comments : PRO Members only. Login. or Join.

Related Reports

Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Amazon Touts Home Security Market Disruption on Oct 15, 2018
Amazon is coming for ADT and all of home security. Indeed, Amazon is advertising this as, in their own words, calling home security a: Inside...
Honeywell Hides Selling US Gov Banned Chinese Video Surveillance on Oct 10, 2018
Honeywell hides selling US government banned Chinese video surveillance as their own 'Honeywell' products, deceiving buyers and putting US security...
UTC Merges Lenel and S2, Creates LenelS2 on Oct 03, 2018
UTC has completed the acquisition of S2, launching literally Lenel's2 LenelS2 with UTC declaring that "LenelS2 unites two world-class teams with...
ASIS GSX 2018 Mixed Manufacturer Reviews With Declining Overall Attendance on Oct 02, 2018
ASIS GSX 2018 show drew 9% fewer total registrants, however, it gained 15% more paid registrations, according to ASIS. In this note, we look...
The Robolliance is Dead on Oct 01, 2018
The Robolliance has died. Formed 2 years ago to fanfare, the robots-focused marketing machine is no more, having slipped quietly away sometime...
ASIS GSX 2018 Show Report on Sep 25, 2018
In the first major US show since the US government ban of Dahua and Hikvision was passed into law, the mega Chinese companies were in retreat and...
Hikvision USA Starts Layoffs on Sep 18, 2018
Hikvision USA has started layoffs, just weeks after the US government ban was passed into law. Inside this note, we examine: The important...

Most Recent Industry Reports

ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Dahua Face Recognition Camera Tested on Oct 15, 2018
Dahua has been one of the industry's most vocal proponents of the value that AI creates: As part of this, Dahua has released a facial...
Amazon Touts Home Security Market Disruption on Oct 15, 2018
Amazon is coming for ADT and all of home security. Indeed, Amazon is advertising this as, in their own words, calling home security a: Inside...
Higher Power PoE 802.3bt Ratified, Impact on Security Products Examined on Oct 12, 2018
Power over Ethernet has become one of the most popular features of many video, access, and other security products. See our PoE for IP Video...
"New Zealand Govt Uses Chinese Cameras Banned In US", Considers Security Audit on Oct 12, 2018
Newsroom NZ has issued a report: "NZ Govt uses Chinese cameras banned in US": This comes after the US federal government banned purchases of...
Mysterious Patent Troll 'Secure Cam' Targets Industry, Sues Hanwha, Hikvison, JCI, Panasonic, More on Oct 11, 2018
A company named "Secure Cam," who is actively hiding their ownership, has acquired a slew of video patents and is systematically suing video...
Unfixed Critical Vulnerability In Millions of XiongMai Devices Disclosed on Oct 10, 2018
XiongMai, one of the biggest OEMs alongside Dahua and Hikvision, has suffered a critical vulnerability impacting millions of their devices. This...
Honeywell Hides Selling US Gov Banned Chinese Video Surveillance on Oct 10, 2018
Honeywell hides selling US government banned Chinese video surveillance as their own 'Honeywell' products, deceiving buyers and putting US security...
Door Hinges Guide on Oct 10, 2018
Some of the trickiest access control problems are caused by bad door hinges. From doors not closing right, to locks not locking, worn or warped...
Default Passwords Outlawed in California, US To Follow on Oct 09, 2018
UPDATES A new California bill aimed at improving security for connected devices has been signed into law. The law takes aim especially at...

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