Pivot3 Pivots Away from Video Surveillance

Author: John Honovich, Published on Aug 22, 2011

Multiple IPVM sources indicate that Pivot3 is pivoting away from video surveillance to focus its core resources on the IT / cloud services market. However, Pivot3 denies this, saying that they are 100% committed to the video surveillance market. In this note, we examine the issues involved and the potential ramifications.

To start with let's review what multiple sources, both verbally and with documents, have shared with us:

  • Pivot3 sees the IT market as a much larger and valuable overall opportunity than surveillance
  • Pivot3 sales are growing well in IT 
  • Pivot3 surveillance shipments are slowing
  • Restructuring of sales positions, retraining and refocusing of the sales team is occurring
  • Pivot3 is shifting resources to areas where it projects higher value - namely the IT market

We do not know how significant the shift will be nor what changes will specifically occur within the video surveillance market. Indeed, we would expect this situation to be fluid even within Pivot3 as they gain feedback about their progress in both markets.

In a response to our inquiry, Pivot3 said that they were "100% committed to the video surveillance market" and that "It would be a gross misstatement to convey to any of our customers and partners that our new products and normal sales planning somehow suggests a retreat from the surveillance market which represents the bulk of our business and investment."

Our Analysis

That noted, we do believe that the steps Pivot3 are not normal planning and do represent a major shift in the company's overall strategy that are likely to have a material impact on surveillance users in the future.

From a general strategic perspective, a shift toward the IT market is understandable. Relative to the video surveillance market, Pivot3's investment total ($75+ Million) is massive and nearly impossible to justify given the limited number of potential buyers in the surveillance space for large scale storage. To meet the company's valuation and associated revenue targets, expanding beyond surveillance is essential.

While Pivot3 has made a significant investment in sales and marketing efforts in the surveillance segment, we see questions about how far Pivot3 can grow in surveillance and how they can compete against lower cost, simpler mainstream options.

What this means and how sharply they pivot away from video surveillance remains to be seen. However, we have seen enough credible signs to recommend users and integrators to carefully examine and consider the risks of Pivot3's long term commitment to developing video surveillance products.

1 report cite this report:

Winners and Losers Fall 2011 on Sep 25, 2011
Now that the dust has settled from the new announcements of the last month, we can better understand the impact on the overall video surveillance...
Comments : PRO Members only. Login. or Join.

Related Reports on Sales

Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
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,...
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...
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...
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...
Favorite Intercom Manufacturers 2018 on Sep 14, 2018
Intercoms are certainly increasing in popularity, driven by the integration of video and IP networking. But who is the favorite? On the one side,...
VMS Export Shootout - Avigilon, Dahua, Exacq, Genetec, Hikvision, Milestone on Sep 13, 2018
When crimes, accidents or problems occur, exporting video from one's video surveillance system is critical to proving incidents. But who does it...
Ambarella on Computer Vision and US Hikua Ban on Sep 10, 2018
Ambarella, a widely-used video surveillance component supplier, is betting on the rise of computer vision and is already seeing a sales impact from...
Ligowave Wireless Profile - Ubiquiti Competitor on Aug 27, 2018
Ubiquiti has become the most common choice for wireless in video surveillance (see Favorite Wireless Manufacturers) but not without controversy and...

Most Recent Industry Reports

Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
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...
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...

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