The IP Video Financial Threat

Author: John Honovich, Published on Sep 01, 2010

Investors examining the video surveillance market must properly distinguish between secular and cyclical trends. This issue is nicely demonstrated in an investor's analysis of Vicon, one of the elder CCTV incumbents. The investor argues that video surveillance is heavily dependent on new construction and the overall macroeconomic environment. He concludes that given Vicon's low valuation metrics, Vicon may be a good investment opportunity as the economy recovers.

His analysis focuses on the cyclical aspect while missing the key secular issue. Specifically, the migration to IP has increased risk to all incumbents (Vicon, Pelco, Honeywell, Dedicated Micros, Tyco Security, etc.) that their businesses while never recover to previously revenue or profit levels. IP migration may shift financial power to new entrants, increasing the risk that incumbents are marginalized or forced out of the market. When looking at the chart of Vicon's 15 year revenue levels, another interpretation is that Vicon never recovered from its pre-Bubble 1.0 peak because it was already losing ground to digital and that coming out of this recession, its future peak may be significantly lower than during the last expansion.

***** *** **** ** **** **** ********* ** ******* ******** by ***** *** ********* *********, *** ***** *** ********* ******** on *** ** **** **** ****** ** *** *********** **** they ** *** **** *** ********* ** ********* ** **.

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

Honeywell Sues Alarm.com For Violating Anti-Trust Laws on Feb 24, 2017
Is Alarm.com about to dominate the smart home software market? That is what Honeywell alleges in its new lawsuit, first reported by...
Axis: "Everything is IP" - False on Feb 24, 2017
Axis is congratulating itself, with executive Fredrick Nilsson declaring: "Now the conversion is all done and everything is IP and analog is...
Advertising Like Avigilon at the ISC West Airport on Feb 24, 2017
Avigilon has grabbed a lot of attention over the last few years advertising at the Las Vegas airport when attendees fly in. But how does that...
Artificial Intelligence Robot Assistant (ACTi) on Feb 23, 2017
Has artificial intelligence come to the video surveillance industry? ACTi has released 'SARA' which it bills as an 'AI assistant that brings...
Cutting Costs 70% Using Milestone With HD Analog on Feb 23, 2017
HD analog and enterprise VMSes are often thought of as being on opposite sides of the spectrum, with HD analog best for small jobs due to its low...
Dahua 4K HD Analog Cameras Announced on Feb 23, 2017
HD analog has been gaining popularity (even if Axis hopes otherwise). Last year, HD analog's max resolution doubled from 1080p to 4MP (see our 4MP...
Uniview (UNV) IP Cameras Tested on Feb 22, 2017
"We're #3," in China says Uniview (UNV). While the company significantly trails Hikvision and Dahua in total sales, one notable difference is that...
Glass Doors and Access Control Tutorial on Feb 22, 2017
The biggest challenge for many access control systems are glass doors. Here's what happens when a maglock is improperly installed to an existing...
Exacq Favorability Results on Feb 22, 2017
For years, Exacq has been one of the most frequently favored VMSes in IPVM integrator statistics (e.g., see Favorite VMS Manufacturers...
The Hot RMR Company - Electric Guard Dog on Feb 22, 2017
The financiers at the Barnes Buchanan conference praised a company named 'Electric Guard Dog'. While the name sounds fairly low tech, the money and...

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