The Fall of Dedicated Micros - 2014

By: John Honovich, Published on Jun 11, 2014

Not even a decade ago, Dedicated Micros was one of the biggest manufacturers in the video surveillance industry. At their peak, the company did ~$135 million USD, a number that none of even today's largest VMS / NVR manufacturers have reached.

Since then, the decline has been continuous and incredibly steep.

In this note, we review Dedicated Micros' financials and why they have fallen so far.

*** **** * ****** ago,********* ********* *** ** *** biggest ************* ** *** video ************ ********. ** their ****, *** ******* did ~$*** ******* ***, a ****** **** **** of **** *****'* ******* VMS / *** ************* **** reached.

***** ****, *** ******* has **** ********** *** incredibly *****.

** **** ****, ** review ********* ******' ********** and *** **** **** fallen ** ***.

[***************]

***** ****, ********* ******' revenue *** ******* **% while *** ******* ***** surveillance ****** *** ***** 100%+.

**** ***** ~$*** ******* peak, *** *******'* ******* declined ** ~$** ******* in ****.

** ********, **** ** Dedicated ****** *** ***** at ** ******** ********** 10% ******* ****** **** over **** **** ******, they ***** / ****** have **** ********** $***+ million *** *****.

*** *******'* ******* *** consistently ********, **** *** most ****** **** ***** one ** *** (**********) least ***** ********, ******** 10%, **** ~$** ******* to ~$** ******* ***.

****

********* ****** *** **** significant **** ****** *** board.

**** ** ****, *** company *** **** *** employees, *** ** ** less **** ***, ********* a ***** ******** **** recently, ****** *** *****:

**** *** ****** **** reduce ***** ********* ******** significantly:

**** ** * ****** measure ******* **** **** depleted ***** **** *** have **** ********* ******** million ****** ******.

*************, ***** ******** ** fall ****** *** ***** as ****:

***?

***** ******, ** *** wrong *** ********* ** do **. ** *** most ****** **********, ** emphasized *** ********* ********:

** ********** **'* ******** strength (********) ***** ******* its ******* ******** (**** cost). ** ** ********** how **** **** **** kept ** **** ********* failing ********.

**** ***** ***, **'* CEO **** ***** ****:

** ****** ** *** today ** ** *** then.

A ********** ****

********* ****** *** * leader *** *** **** ago. ***, ** ** hard ** *** *** they *** **** ** business ************* *** **** longer.

****** ***** **** ** extreme *** ** ***** failed ********** ********, ** is * ********** **** for **** *****'* *** companies ***** *** ******* things *** ******.

Comments (14)

A few years ago I gave a presentation to an audience of network professionals in London at an event aimed at the network infrastructure industry. My theme was 'IP Video and the benefits of an Open Platform in Creating the Intelligent Building. (I still have the presentation saved even now).

This was to an audience of around 50 IT professionals. Immediately afterwards the next presenter was from Dedicated Micros. He presented the theme of 'Closed IP TV solutions - the Best Aproach'

It was so opposite to the Open Platform discussion that most of the audience left - and those that stayed were completely baffled.

So I'm not surprised to read this information about their poor results. They have just turned themselves off from the market with their poor messaging if nothing else.

Glenn, that's classic :)

Agreed that DM closed Cctv talk, I cringe thinking about it!

At their peak, the company did ~$135 million USD, a number that none of even today's largest recording manufacturers have reached.

What manufacturer group of firms are you comparing them to? The Milestones or the Digital Watchdogs or the Axises? I don't know if they make them or not, but they do at least sell cameras, unlike Milestone, so they are not a pure recording play. And obviously Axis' sales are greater than > 135 million. So vs appliance makers?

I am comparing to Milestone / Genetec / Exacq, etc.

Back in 2006, DM only sold recorders (see their 2006 website).

One can argue that DM always sold appliances, not software licenses, that DVRs were far higher priced back then, etc.

Even with that, $135 million annual revenue is a lot. Those comparables, even today are doing about half that revenue.

can anyone say Betamax?

Lesson here: never be afraid to take a risk, but don't double down on failure, either.

The trick is knowing when to cut your losses.

More importantly now DM can no longer afford to race in LMP2. At least Mike has scraped the pennies together and bought a car company so can continue to race:

Tiga Race Cars

As long as the finance is there to support your hobbies all is good right?

Back in '06 there was a deal on the table to sell DM but he blew off a key meeting to go racing and the deal died. I'll bet they'd like to have that one back...

Holy cow, there's actually a real Wikipedia page about DM's CEO being a race car driver.

Surreal....

Money quote: "In recent years the AD Group has seen significant financial hardship, compromising Mike's aspirations in motorsport."

In Mike's defense may I point out that all his racing was "Closed Circuit"...

Studies have shown there's generally an inverse relationship between a CEO's golf handicap and performance of the company. This is probably just another good proof point that running any company successfully takes significant focus.

From now on, before I buy stock I'm researching the CEO's hobbies....

As an integrator, I tried to speak to the Regional Management in the region on the challenges that the end-customer and the installer/integrator face with the Closed-IP solution soon after we purchased the SD-Advance NVRs. The customer wanted to use a well known 3rd party PTZ camera and we found out that neither a 3rd party encoder could be used (analog version of the camera) nor the IP camera. I arranged a meeting between DM and the camera manufacturer, but was really surprised to learn that DM was so adamant that they are not going to change their platform or support the integration.

That was 3 years ago. Today, the customer have moved onto IP - with an Open Platform VMS and IP cameras being used in all their expansion requirements and other new developments. I have seen how DM is losing its ground, and unfortunately there are no signs of change.

Before all of the "Closed Network" issues, was the fact that they could not provide a mobile APP ...directly. That third party app company was ridiculous.

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.

Most Recent Industry Reports

ONVIF Suspends Huawei on Sep 20, 2019
Huawei has been 'suspended', and effectively expelled, from ONVIF so long as US sanctions remain on the mega Chinese manufacturer. Inside this...
Open Access Controller Guide (Axis, HID, Isonas, Mercury) on Sep 19, 2019
In the access control market, there are many software platforms, but only a few companies that make non-proprietary door controllers. Recently,...
Axis Perimeter Defender Improves, Yet Worse Than Dahua and Wyze on Sep 19, 2019
While Axis Perimeter Defender analytics improved from our 2018 testing, the market has improved much faster, with much less expensive offerings...
Directory of 68 Video Surveillance Startups on Sep 18, 2019
This directory provides a list of video surveillance startups to help you see and research what companies are new or not yet broadly known. 2019...
Uniview Prime Series 4K Camera Tested on Sep 18, 2019
Is the new Uniview 'Prime' better than the more expensive existing Uniview 'Pro'? In August, IPVM tested Uniview 4K 'Pro' but members advocated...
US Army Base To Buy Banned Honeywell Surveillance on Sep 17, 2019
The U.S. Army's Fort Gordon, home to their Cyber Center of Excellence, has issued a solicitation to purchase Honeywell products that are US...
Vivotek "Neural Network-Powered Detection Engine" Analytics Tested on Sep 17, 2019
Vivotek has released "a neural network-powered detection engine", named Smart Motion Detection, claiming that "swaying vegetation, vehicles passing...
Schmode is Back, Aims To Turn Boulder AI Into Giant on Sep 16, 2019
One of the most influential and controversial executives in the past decade is back. Bryan Schmode ascended and drove the hypergrowth of Avigilon...
Manufacturers Unhappy With Weak ASIS GSX 2019 And 2020 Shift on Sep 16, 2019
Manufacturers were generally unhappy with ASIS GSX, both for weak 2019 booth traffic and a scheduling shift for the 2020 show, according to a new...