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

By: 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

US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...
Proactive CCTV "Only Affordable Video Archiving Solution" Profile on Aug 12, 2019
Proactive CCTV is claiming to offer "the only affordable video archiving solution on the market", reducing the storage typically required for H.265...
Stanley Makes "Multi-Million Dollar Investment" Into Banned Hikvision Products on Aug 09, 2019
Just days from the US government ban going into effect, US mega-corporation Stanley has dramatically increased its imports of banned Hikvision...
Vivotek Revenue Soars on Aug 05, 2019
Vivotek's revenue has soared so far in 2019, growing 45%. Inside this note, we examine import records and see who is driving Vivotek's growth...
Online Video Surveillance Sales Comparison - Amazon, B&H, CDW, LTS, Super Circuits, More on Jul 31, 2019
IPVM has uncovered the key trends and top options being offered across commonly used surveillance sellers. How has the market shifted since we...
Ionodes Company Profile on Jul 31, 2019
What happened to Ionodes? With seasoned leadership from Jean-Paul Saindon founder of SmartSight and Dr. Michael Gilge, founder of VCS, back in...
"Stats Don't Lie" Says Deceptive IFSEC on Jul 30, 2019
While IFSEC has declared #statsdontlie and trumpeted seemingly skyrocketing visitor numbers, they are decieving about their show's problems. On...
Fujifilm Expanding Into Video Surveillance on Jul 26, 2019
While Sony continues to fade out of the video surveillance market and Canon continues to make huge investments into acquiring video surveillance...
Australia Security Full Show Report on Jul 25, 2019
IPVM went to Australia attending the 3 days of the Australia Security Exhibition: This was held at the ICC Sydney, as shown below: In this...
History of Video Surveillance on Jul 19, 2019
The video surveillance market has changed significantly since 2000, going from VCRs to ab emerging AI cloud era.  The goal of this history is to...

Most Recent Industry Reports

Verkada People And Face Analytics Tested on Aug 16, 2019
This week, Verkada released "People Analytics", including face analytics that they describe is a "game-changing feature" that "pushes the...
Dahua OEM Directory 2019 on Aug 16, 2019
US Government banned Dahua OEMs for dozens of companies. The following directory includes 40+ of those companies with a graphic and links to...
Installation Course - Register Now on Aug 15, 2019
Register Now for the September 2019 Video Surveillance Install Course. This is a unique installation course in a market where little practical...
Axis Suffers Outage, Provides Postmortem on Aug 15, 2019
This week, Axis suffered an outage impacting their website and cloud services. Inside this note, we examined what happened, what was impacted...
Hikvision Scrutinized In The Netherlands on Aug 15, 2019
Hikvision is facing unprecedented scrutiny in the Netherlands, at the same time the US government ban has taken effect. This week, a Dutch...
Axis 4K Camera Shootout 2019 on Aug 14, 2019
Axis' 4K Q3518-LVE claims the "best video quality possible", with Lightfinder super low light performance, Axis' high end Forensic WDR, and...
CheckMySystems Company Profile on Aug 14, 2019
CheckMySystems says that too many users respond, "I get an email when something is wrong" when talking about their video system maintenance plan,...
Hikvision OEM Directory on Aug 13, 2019
The Chinese government-owned and US-government banned Hikvision has become the world's largest video surveillance manufacturer and generally hidden...
Biometrics Usage Statistics 2019 on Aug 13, 2019
Biometrics are commonly used in phones, but how frequently are they used for access? 150+ integrators told us how often they use biometrics,...
US Government Ban of Dahua, Hikvision, Huawei Takes Effect Now on Aug 13, 2019
The 'prohibition on use or procurement' of Dahua, Hikvision and Huawei products and 'essential components' take effect today, August 13, 2019, one...

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