Sources of Cisco's New 'PSIM" and Analytics Examined

Author: John Honovich, Published on Oct 12, 2010

At ASIS 2010, Cisco expanded into two major new product categories - 'PSIM' and video analytics. This is certainly a major expansion and raises question of how did Cisco get so far so fast.

While the online releases and documentation do not disclose this, Cisco confirmed that they are partnering with Proximex and ObjectVideo for, respectively, their PSIM and video analytic offerings.

For the PSOM/PSIM offering, Cisco notes in an email that, "Cisco and Proximex have entered into a technology agreement which allows parts of Proximex’s Surveillnt product to be used in Cisco’s new Physical Security Operations Manager Software (PSOM). "Powered by Proximex", means that PSOM uses certain components of Surveillnt to enhance the integration and unified operation of VSM, CPAM and IPICS."

For the video analytics offering, Cisco notes in an email that, "Cisco 4500 cameras feature a DSP for analytics processing. The first company we have engaged with on this architecture is OV. We offer security and counting packages using their SW. The base packages are included in the price of the camera."

Proximex Impact

We think the partnership with Proximex is an important action for both companies. Front end systems (such as PSIM or VMS clients) are critical long term components that cannot be easily abandoned or replaced.

For Proximex, this is a major win, both for its ability to generate immediate revenue and for its long term potential. We believe that Cisco may acquire Proximex in the next 2 years at a healthy, 'IT level" valuation. We have no inside knowledge and base this simply on the fact that choosing a front end forces a company to commit long term.

ObjectVideo Impact

We think the partnership with ObjectVideo has less potential. Edge analytics are a less critical component of systems and can be relatively easily switched to new analytic providers. Lock in to a specific brand of video analytics tends to be low as they are essentially data inputs rather than core management applications.

Also, given ObjectVideo's questionable reputation, we believe that many will be concerned about using their analytics. That noted, the partnership does make sense as it is important for a company like Cisco targeting high end projects to have an analytic offering embedded in their cameras.

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