Rivals Sound Off On Avigilon 2013

By: John Honovich, Published on Nov 07, 2013

Over 50 manufacturers answered IPVM's survey today, following Avigilon's revenue doubling announcement. Inside this note, we break down the key claims and color commentary offered about Avigilon, including quite a number of insights into why they think Avigilon is growing so quickly.

Sales Approach

One common theme was about Avigilon's "Take no prisoners approach to sales" with many rivals acknowledging strengths in their sales style. "Their key Sales/Marketing person is a great grand master in Chess/Sales and it shows. A no hold barred fighting match. Winner take all." Another manufacturer noted, "Brian Schmode is killing it!!"

A few manufacturers commented on specific tactics:

  • "They are layering sales people in some middle markets which may appear like overkill but they are focusing on vertical market 'specialists' which in North America can be a major benefit"
  • Hired sales people with experience / relationships with big end users. "These were sales people that were hunters not account managers call on distribution."
  • "Their sales guys are very aggressive and switched a number of my accounts over with high project % support discounts, and strong end user qualified leads passed on to key integrators"

However, some manufacturers allege that Avigilon sales push is unsustainable with one noting, "They have a boiler room mentality on numbers with their sales people and seem to have high turn over in some markets," and another commenting that "Managed with massive pressure that creates a turnover prone environment."

Finally, a few highlighted their "Massive sales investment" and "Market saturation with hiring ongoing everywhere with geographic overlap." Undoubtedly, Avigilon is aggressively expanding their sales team, regularly splitting up existing territories and bringing new RSMs in.

End User Marketing Approach

A number talked about the benefits Avigilon has gained from marketing directly to end users:

  • "Avigilon does a very good job of marketing the Avigilon brand resulting in very good name recognition. The general perception of the capabilities of the Avigilon brand is favorable which results in users paying more attention to Avigilon and comparing other product to Avigilon... That means many of the competitors are often in the position of comparing their product to Avigilon which elevates Avigilon in the users eyes."
  • "Most importantly... A radically new marketing approach for the security industry that has paid off in spades for end user awareness. Once they have that end users attention, No.'s 2 & 1 above kick in and hence one of the highest close rates in the industry from first touch to final install."
  • "Whether you agree with the veracity of it, their marketing campaign is awesome. They even put full page ads in the Economist."

Evidently, manufacturer sales people on the front line are seeing the impact of Avigilon's non traditional / non security outreach.

Integrator Relationships

Get Notified of Video Surveillance Breaking News
Get Notified of Video Surveillance Breaking News

Surprisingly, few respondents emphasized Avigilon's relationships with integrators. Evidently, most manufacturers do not see this as a powerful force in Avigilon's growth / effectiveness. We disagree.

However, one respondent had an interesting insight / comment: "Avigilon has identified key installers/integrators that control specific geography and vertical markets. They have made them super competitive with pricing etc."

Manufacturers, generally are failing to recognize a huge differentiator for Avigilon - integrator loyalty. Avigilon's integrators are by far the most loyal, which is highly uncommon in video surveillance. We could allege that "Milestone Clubs Baby Unicorns" and Milestone dealers would shrug but, god forbid, you say anything less than praiseworthy about Avigilon and their integrators will protest.

We believe this loyalty is an outcome of Avigilon's limited product availability and no online sales allowed. We cannot think of any other quality, lower cost, end to end solution that offers so much protection for integrators. As two manufacturers did note, "Direct Only .... so there is a assumption of geographic account control" and "My understanding is they also protect their territory, although I've also heard otherwise." This directly addresses the most common integrator complaint of Avigilon's biggest competitor, Axis, that anyone can get the latter's product.

Encoders

A few mentioned how Avigilon markets/packages their encoders.

  • "They give encoders away to win the rest of the solution"
  • "The architecture and pricing structure with the encoders facilitates a sound migration path for analog systems."

Avigilon has very low cost encoders ($300 or less for 4 channels) and only charges a single VMS license for all 4 channels (see our cost comparison here). This combination is very inexpensive and since they are one of only a few who sells encoders and VMS licenses together, it is hard for rivals to match.

Good Pricing for End to End Offering

Many manufacturers called out that Avigilon had attractive pricing plus offered an end to end solution. As IPVM has reviewed in many tests, this is certainly true, though it is the combination with the other factors above that drive such high growth.

Manufacturer Skeptics

Unsurprisingly, a minority of manufacturers were skeptical overall:

  • "Massive growth based on front end spending is not sustainable. Period. 'It stinks. Stinks bad, I tell ya...'" This is pretty clear false though, as Avigilon has been increasing its profitability at the same time (and is solidly profitably).
  • "Made their mark when naïve people didn't understand compression. JPEG2000, are you serious?!" Well, they've recently given up the JPEG2000 religion.
  • "Massive, seemingly uncapped marketing/advertising spend coupled with acceptably mediocre product offerings."
  • "They are counting future orders to be delivered in their sales numbers. Just like Diebold and ADT." They are a publicly traded company so it is highly unlikely they are doing anything against the rules. That said, for any company with re-seller partners they can take steps to push out orders end of quarter to maximize numbers. The question is - why would they need to do this given how well they are doing? This leads to a persistent manufacturer rumor that Avigilon is pumping themselves up to get acquired by a massive company at a massive premium. That would be quite the finale!
Comments (0) : Members only. Login. or Join.

Related Reports

Verkada Paying $100 For Referrals Just To Demo on Jan 22, 2020
Some companies pay for referrals when the referral becomes a customer. Verkada is taking it to the next level - paying $100 referrals fees simply...
Wesco Wins Anixter on Jan 13, 2020
Despite Anixter earlier arguing that Wesco's bid was inferior to CD&R's by nearly 10%, Anixter confirmed that they are taking Wesco's 3.1%...
Anixter Resisting Takeover From Competitor, Bidding War Emerges, Wesco Wins on Jan 13, 2020
Mega distributor Anixter is going to be acquired but by whom? Initially, Anixter planned to go private, being bought by a private equity firm....
End User Buying Axis At Prices Better Than Axis Gold on Jan 10, 2020
IPVM recently found an integrator contract with an end-user that guaranteed the end user could buy Axis products at a price / discount better than...
Resideo CEO To Step Down on Dec 03, 2019
Resideo's CEO, Mike Nefkins, is stepping down, just 18 months after being brought in to lead the now plagued spin-out. Inside this note, we...
Axis Cracks Down On Illicit Channel Sales on Nov 01, 2019
Axis has stepped up efforts to crack down on illicit channel sales according to various industry sources, though, Axis denies this. Online sales...
Giant Tyco Campaigns Against Startup Qumulex on Jul 25, 2019
One is a giant conglomerate that owns the world's largest security integrator. The other has no shipping products. But Tyco is campaigning...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
Axis Will Not Block Resellers on Jun 10, 2019
While Axis generally has strong favorability amongst integrators, the biggest complaint is their channel model, which results in smaller integrator...
Undercutting Partners, Arbitech Sells Millions In Unauthorized Axis on Mar 29, 2019
One of integrator's top complaints about Axis is poor margins. An enterprising, ethically questionable distributor is solving that. Inside this...

Most Recent Industry Reports

Viakoo Presents Cyber Hygiene for Cameras on May 28, 2020
Viakoo presented its 'Cyber Hygiene' and 'Service Assurance' products at the April 2020 IPVM New Products show. Inside this report: A...
Seek Scan Thermal Temperature Screening System ReTested on May 28, 2020
Now that IPVM has tested Dahua, Hikvision, and Sunell, we are returning to Seek, the first blackbody system we tested and retested it with our...
Directory of 106 "Fever" Camera Suppliers on May 28, 2020
This directory provides a list of "Fever" scanning thermal camera providers to help you see and research what options are available. There are...
Fever Cameras Are Medical Devices, Per The FDA, Dahua, Feevr, Hikvision, InVid Contrary Claims Are False on May 28, 2020
Fever cameras are medical devices, despite what euphemisms various sellers use. The US FDA clearly categorizes them as medical devices and...
Wyze Raises $10 Million And Seeks Services Expansion on May 27, 2020
Wyze has raised $10 million, the company's first disclosed raise since the $20 million announced at the beginning of 2019. Inside this note,...
Startup Videoloft Presents Cloud Storage on May 27, 2020
Videoloft presented offsite cloud storage at the May 2020 IPVM Startups show. A 30-minute video from Videoloft including IPVM...
Directory of 300+ Fever Camera News Reports Globally on May 27, 2020
This global directory tracks 300+ articles about thermal cameras used to detect fevers in response to the coronavirus pandemic. Articles are...
Integrators Rising Against Coronavirus on May 27, 2020
IPVM integrator statistics make it clear - Coronavirus's impact on business is lessening and many are anticipating even better news in weeks...
Netposa Stock Surges 46% After US Human Rights Abuse Sanctions on May 27, 2020
Last Friday, the US government announced it would sanction PRC video management provider NetPosa for being "complicit in human rights violations...
LILIN Presents NDAA-Compliant P2 Cameras on May 26, 2020
Merit LILIN presented its NDAA-compliant P2 camera series at the April 2020 IPVM New Products show. Inside this report: A 30-minute video...