Pivot3 Raises $23 million / Refocuses

Author: John Honovich, Published on Feb 07, 2012

Last year, we raised concerns that Pivot3 was pivoting away from the surveillance business. Now, Pivot3 has raised a major fundraising round of $23 million lead by Samsung. In this note, we examine how this impacts Pivot3's positioning and why Pivot3 says this show renewed committment and improved focus on the surveillance market.

Let's start with a review of key points:

  • **** $** ******* ****** ***** ****** **** ******* ** ~$*** million. *********** ***** *** $** ******* ****** * ***** ***.
  • ** **** ** *** *******, ****** ** ********* * *********** with ******* *******, * *********** ********* ****/******** ********.
  • ****** ** ********** ** *** **** *** ** *** ***** surveillance ****** ****** **** *** ******* ******** ** *** **** few *****.

** ***** ****** ***** ***** ***** *** *** ************ ******. They ******** **** ******** *********:

"*** **** ** **** $*** ******* *****, *** ************* ** Samsung, *** *** ********* ** **** ****** ** **, ******** Development ************ *** ***** ********** ** *** ********** ** *** surveillance ******. ** ****, ** ******** **** *** *** * bit *** **** ** **** ************ *** **. ***, **** the ********** ** ****** ***** ********* *******, **** *******, ** **** ******** ** *** ***** ***** **** **** us *** *** ******** ** ** **** ** *** ******. Here *** **** ********** ** *** ** **** **** *** hand ** ****.

** *** ******* "*****" ** *** ************ ******, ******** ** larger, *********** ************ ************* **** *** ******* ** *** **************, government, ****** *** **** ************ ******** *******. ***** ******* ******* benefit **** *** ***********, ********** *** ******* ******** ** *** Serverless ********* **********. *** *** ********** ** * *****-***** ******* team ** **** ****** *** ***** ******* *******-******** *******.   

** *** *** ********* ** *********** ****** ********* ******** * huge *********** ****** *** ***** ** ********* *** *********** **** to ******** **** ******* ************. **** *** **** ** *****, integrators *** ******* ***** ******** ** ****** ***** ***** ** customers ****** **** ***** ** **** ******* *** ********* *** the ********* ** ** *****. **'** ***** ***** ** *** UK, *****, ***********, *********, *****, ******, *** **** **** ** capitalize ** **** ****** ****** ******.

*** *********** **** ***** ***** ** **** **** **** *** company *** ** **** ******** ** ****** ** **** ******** engine ** **** *** ******** ******. **** ******** *** *********** team ***** * ****-********* *** ** ********* ***** ********** *********** into *** ************ ****** ******* ********* *** ***** ** *** appliances. ** **** **** ** **** **** ***** ****** ********** across *** ******** ** ** **** ****** **** *** ******* performance ******** ********* **** *********** ******** **** *** ****** ****** EMC." 

Our ********

****'* *** **** ********:

  • Funding ****: The large round gives Pivot3 resources to dedicate on surveillance which improves their capabilities relative to last year.
  • Focus ** *** **** ***: This is likely a necessary and positive action as it as very hard to differentiate on small to mid sized projects (16, 32, cameras, etc.), especially with the VMS vendors increasingly releasing their own boxes/appliances.
  • Competing ******* ********** *** ***** ********: Incumbent CCTV companies are not strong at providing large scale storage, typically OEMing general purpose storage offerings. There are few specialists targeting this market segment (e.g., Intransa, ***).
  • Samsung ************: We are not sure what value the Samsung relationship will bring specifically in security. Samsung is a traditional strong CCTV player but we do not see their core user base of small to mid size projects overlapping well with Pivot3's core strengths.
  • Long **** ******: While raising more money gives a greater runway, it also increases the expectations of future revenue/profitability that investors have. Now at $100 million+ in funding, it will be interesting to see how it can justify its valuation. Certainly, Pivot3's expansion last year to the general IT market is a needed step in accomplishing this. On the other hand, while focusing on the high end of the surveillance market is likely more efficient, it does narrow the overall market opportunity.

Product ***********

*** ******* *********** ** *** ******* **** ** *** **** year ** *** ************ ** ******** *****, ***** ** *********** *** **** ********** ** ************** ******. **** *** *********, ** ************ ** ******** ******* ******. However, *** ***** ***** **** ****** *** ******** ***** ***** CloudBank **** *** *** ************** *** **** *** ******* *****.

******

** ***** ****** ***** *** **** *** *** ***** ******:

"*** **** ********* ******** ****** *** **** ** *********** ****** our ************ ********* *** *** *********** ***** ** *** *** partners *** ******* ************ ** ******.  ** **** ***** ******* the ***** **** *** *** *** ******* **** ***** ******* Vmware *********.  

*** *** *********, *** *******, ** ***** ****** ********** ***** software **** *** *** ************, ** *** **** ****** *** been ****** **** ******** *****."

** ** **** *** ********** **** *** ********* **** ***** support ******. ****, ***** *************** ******* ******* / *** ****** can ** * **** **** (*** ************************ ****), ***** ****** ***** *****.

*****

** ***** ****** ***** *** **** *** *** ********** *****:

"** *** ****** ** ** *********** ** ******* *** ********* write **********. *** **** ********** ** *** ****** ** ******* per *** ******** ** *** *** * ***** ****. **** we **** ** **** **** ********** *** ************ ******* **** from ******* ************ ******* ***** ********, **** ** ******, **********, and ***, ** ******* **** **** * *********** ********. ** the **** ****, **** *** ************ *** **** ****** ** buffering **** ****** *** ****'* ** ********* ** *** ***** memory.  

** **** **** *** ******* *********** **** ***** ***** *** likely ** ******* *** **** ******* *** ******** ** **** most ******* **** ***, ** * ******, ** *** ******* scalable ***** ***** ** *** ** *** **********."

** ** *** **** ****** *** **** **** ********* **** specific *********** *********. *** *** **** ** ****** * *** manufacturer ********** ********** ***** *** **** *** ***** *** **** ********* *** ***** ********* *** version. *******, ***** ************ **** *** **** ******** ** ********.

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

Verkada, Silicon Valley VSaaS Startup, Targets Enterprise on Oct 19, 2017
Verkada says they are building an enterprise-class VSaaS offering, calling it "The new platform for video security". This is a departure from the...
Axis 'Sold Out' P3707-PVE Multi-Imager Tested on Oct 18, 2017
Axis faced significant product shortages over the summer. Perhaps the most notorious and significantly sold out model was the Axis P3707-PE 8MP...
Top Problems Searching Surveillance Video (Statistics) on Oct 13, 2017
When crimes, accidents or incidents happen, the video surveillance system is a key component in finding out and proving what actually...
Exacq M Series Low Cost NVR Tested on Oct 12, 2017
With recent cyber security issues hitting NVRs and cameras from low cost leaders Dahua and Hikvision, users are increasingly seeking alternatives...
Knightscope Rockets To $20 Million Funding on Oct 11, 2017
Knightscope is celebrating. 15 months after running over a child and 3 months after a Knightscope robot drowned, Knightscope is having the last...
Genetec Launches Streamvault Hardware Revamp on Oct 10, 2017
Genetec is launching a new series of hardware appliances, dubbed "Streamvault", with updated capabilities and design. These units will replace...
Hanwha 20MP Multi-Imager Tested (PNM-9081VQ) on Oct 09, 2017
Hanwhwa has introduced the latest in their multi-imager camera line, the PNM-9081VQ, a Wisenet 5 20MP model with four repositionable 5MP camera...
Exporting Video Surveillance Tutorial on Oct 05, 2017
Exporting video surveillance is important when incidents or crimes occur. However, there are multiple ways to export video which have their pros...
Deep Learning Startup Umbo Raises Prices 733% For Analytics on Oct 02, 2017
While the industry overall trend is racing to the bottom on price, deep learning startup Umbo is taking the alternative approach, raising prices on...
ASIS Show 2017 Final Report on Sep 27, 2017
ASIS is in Dallas for 2017 and this is our final show report (compare to our 2016 ASIS show report). When walking in, one is greeted with Dahua's...

Most Recent Industry Reports

Hikvision Access Control Tested on Oct 19, 2017
Hikvision aggressive pricing and marketing combined with generally reliable hardware and free software has made them a major player in video...
Verkada, Silicon Valley VSaaS Startup, Targets Enterprise on Oct 19, 2017
Verkada says they are building an enterprise-class VSaaS offering, calling it "The new platform for video security". This is a departure from the...
Exacq Unbreaks Avigilon Integration on Oct 18, 2017
For nearly 4 years, Exacq had broken and effectively blocked use with Avigilon cameras, as IPVM reported in January 2014. Now, Exacq has...
Search More Important Than Live Monitoring - Statistics on Oct 18, 2017
Search is overall more important than live monitoring to integrators, according to new IPVM statistics.  The key themes found in integrator...
Axis 'Sold Out' P3707-PVE Multi-Imager Tested on Oct 18, 2017
Axis faced significant product shortages over the summer. Perhaps the most notorious and significantly sold out model was the Axis P3707-PE 8MP...
Dahua Removes Auto Rebooting on Oct 17, 2017
For years, Dahua has automatically programmed its IP cameras to reboot weekly, a highly atypical and questionable practice. Following IPVM...
Deep Learning Tutorial For Video Surveillance on Oct 17, 2017
Deep learning is a growing buzzword within physical security and video surveillance. But what is 'deep learning'? In this tutorial, we explain...
Multipoint Lock Access Control Tutorial on Oct 17, 2017
Doors are notoriously weak at stopping entry, and money can be misspent on wrong locks that leave doors quite vulnerable. While closed and locked...
Buy From B&H, Ship Direct From ADI on Oct 16, 2017
B&H, one of the largest online sellers of video surveillance equipment to end users, regularly purchases their video surveillance equipment...
Competing Against Siemens on Oct 16, 2017
Siemens entered the integration business with 15,000+ customers, through their acquisition of Security Technologies Group in 2001. Since that time,...

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