The Next Failure in Wireless Video Surveillance: $18 Million Funding

Author: John Honovich, Published on Aug 21, 2015

Wireless video surveillance is one of the most difficult niches in the industry.

Tens of millions have been wasted trying to build a wireless video surveillance winner. The most famous, of course, was Firetide, who failed, despite more than $50 million in funding.

Now, an Israeli company, Siklu, has taken in $18 million, aiming at the video surveillance market.

In this note, we examine the company's positioning and why this big bet is likely to be a big failure.

******** ***** ************ ** *** ** *** **** ********* ****** in *** ********.

**** ** ******** **** **** ****** ****** ** ***** * wireless ***** ************ ******. *** **** ******, ** ******, ***********, *** ******, ******* **** **** $** ******* ** *******.

***, ** ******* *******,*****, *** ***** ** $** *******, ****** ** *** ***** surveillance ******.

** **** ****, ** ******* *** *******'* *********** *** *** this *** *** ** ****** ** ** * *** *******.

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

Siklu ********

** *** *****, *** ******* **** ******** ****** **** ****** using ********** ***********.

****** ****,***** ** ********* ********** **** (**, ** *** ** ***) ***** ** point *****.

****** *** *********** ******** $** ******* *******, **** **** ******** **** **** $** ******* ***** ***** founding ** ****. *******, ** *** **** **** ** *** last **** **** *** ******* *** ******** *** ***** ************ market.

Problems **** ***** *** ***** ************

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

  • ***** *****: *** ******** ** ~***, ***** ****** *************.
  • ******** *********: ***** ** ***** *** ******* ********** **** ** ******** for ********** ** **** *******.
  • ****** **** ** *****: ***** **** *********** **** ** ********* ** ******** **********.
  • **** *****: *** **** *** **** ** ~$*,***, ***** ** *** more **** **** ** **** ******** **** ** ************, *.*.,********.

***** ****** **** *** ***** *** ********** ******* ** ************ (i.e., ****** ********, ***** ******* / ****** ************, ** ***** pricing, ***.).

Management **************** *** **********

*****, ***** *** ************ **** ** *** ********** *** ***** surveillance ******. ****** **** **** ******* ** *** *********** ************ expert,**** ********, ***** ********* ****** *** ********.

*** *******, *****'* ********** ** ***** *** ****** **** ********** wireless ***** ************ ** *** *******; **** *** *********** *** so ********* **** ** ** *** * ****** ******, ******* the***** *** ******* ********* **** **** $*** ****** **** ******** and ******. **** **** ******* ***** ******** **** ********, ********** ** add **** *****, ******** *** ******* ******* **** ** ***** offering. *******, **** ********** **** ********* *********** **** * ******* to **********, ******* *** **** **** ******** ******** ***** ************ links *** ****** ******* *** ****/* ** **** **** ** cameras ****, *** ********* ** *** ***** ****** **** ***** is ********.

** **** **** **** ******* **** *** ***** **** *** entrants **** ** ****** ** *** ***** ************ ******. **** your *********** ************* ** *** *********** ********* ** **** *****, your ******* ** ******* *** *******.

Niche ****

** ** ***** ***** *** **** ******* *** ***** *** Siklu, **** ** *********** **** ******* **** * ***** ***** or **** *** ******** ** ******* ** ** **** ***** areas, ***** ********** ********* ********** ***** ** ** *****.

***, ** ***** ************* *** ****** ***** *****, *** ***** far ******* *****, ** ** ******** ** ** * *** for * **** ***** **** ** ** ******* ***** ******** video ************ ******.

Got *****

**** ****, ********* **** ***** **** * ******** ****** ** funding ** ******. *********, ** *** ***** ****, **** **** mean **** ********* *** ***** *******, ***** **** ******* *** fundamental ******** **** ****.

*** **** ** *********** ******* *****'* ******** *** * **** as * ***** ******, **** *** *** **** *** ******* such ***** ** **********.

Comments (26)

****...* ***** **** **** ******* ***** *** ********** ** ***** for ******** ****** ***********. ** *** * *********** ****** **** year **** ****** ** ** ******* ***** * ***** ******, and ***** ****** *********. *** **** ****** ********* ** ***** higher *********** ******* ***** ** ******* *** ******** *** ****** issues. ** **** ****** *** ******* ** ******* *** *****. The ******** *** **** ***** ******* *** *** *********** ***** hacking, *** *** ********* ******* ********* *** **********. ***** *** not ** ******** *** ****** ****** ******, *** *** **** for ****** ********* *******, ******* **** ********** ******** ********* *******, may **** ***** **** *********** **** ** *** ****. ************, the ****** **** *** *** ** ** ********* ** ****** projects.

** ** *****, * *** ****** ************* ***** ***** ****** the ***** ********** ****** ** *** **** ** ********** ******* throughout *** ****.

***, **** ********. * ****** ***** *** **** ****.

*** ********* ** ******** * ***** *** ********* ************* ** go ***** * ***** ** * *****. **'* ***** ********* relative ** *** ******* ******** ** ******** **** **** * small *** ****** *** ******.

** **** ***, * ****** *** ***** ** **** ** OEM / **** ******* ******* **** ********* *** *** * general ******* ******** ****** **** ****** ** ***** ******** ** build ***** ***.

"** **** ****** *** ******* ** ******* *** *****."

************* *** ***** **** **** *** **** ***** **** * pair ** ******* ****** *** * **** ** ***-******* ******* on ****** ****. ***'* ***** ** ** **% ** *** cost ** *** ***** ********.

***** *** **** ** ******, ********, *********, ***., ** **** as ********* ** *** ***-**** *******, * ***** *** ****** for $**** ** ***** ** ******** ******* ** * **** small ****** ** *************. *'* ** **** ********* ** ***** ever **** ***** $*** ***** ** *********, **** **** ******* enough ** ******* *** ******** *********.

*** ********** ****** **** *** ***** ** ******** *** *********, it ** ** ************* **** ****** ** ***** *** ***** very ****. **** ******** ******** **** *** ******** **** *** proving ** ** **** ******** *** **** *********. * **** used **** *** ***** *** ******** ** ** **** **** say **** **** **. *** *** ***** ******* ** ******** was *********!

* ******* "***** ****" ** ******** **********. ** *** ********* I ******, ****** ** ******** ***** *** ****, *** ****'** also *** ** *** **** ** ***** ** ** * major ****** (***).

* *** ***** ****** ** ** ******* ** * ******* that *** **** ****** *** * ***** *** *** ***** really ****** *** ** *** ***** ** ***** * ******* success. ***** *** ****** $*** ** *** ********'* *********** **** $18M **** ****** $****, ***** ******** ***** ** **** $**** worth ** ******* **** ****. ****'* *** ****** **** ******* generating * ****** ** *** ***** ***** ********.

** ***** ** '*****', *** *** ***** **** ******** ***** companies ** ******* / ******** **** ** *****. ** *** extent **** ****** ** ***** '****', ** ** ******* **** did *** ***** **** *** *** **** **** ***.

********* **** ***** ** ** ***** ****, ****** **** *** not **** ******* ***** **** ******** ***.

"*'* ** **** ********* ** ***** **** **** ***** $*** worth ** *********, **** **** ******* ****** ** ******* *** positive *********."

**** ******** *** ******, ***** ** ******** ***** ******** ** different ************ / *********, ** **** *** **** ** ******* in ******.

** *** $** ******* ** ***** ************, **** ******** **** at **** ***** '****' *,*** ***** ****. ** ******, ******* that ** ***** ** **** * **** ****** ** ***** and ********* *****, **** ****, ***** ***** ***** **** * while ** *****. **********, **** ** **** ***** *** *** new *******. **** ******* *** **** ****** *** **** ** sales ******** ***** ** **** ** ******.

***** ***., *** ****** ****** ****** ** *** **********-**** **********...

...**** **** *** ******* *** ***********, ***** **** ******** ** disrupt *** ****** ******.

* ******* **** ******* **** ****-*******...

(********** - * ** ******** ** ******** *********** & ***** for ***** ************ & ******** ** *****)

****,

******** * ******* **** *******, ** *** ****** * *********** increase ** ****** *** *** ******** **** *** ***** ************ market, ************ *** *** **** ** ** *********** *** ************ free ******** ******** *** ***** ***** ***** ***** *********** *** often ************ ************ **** ************ ***-**** *******. ***********, ** *** a **** *** ****** ********** ** *** ****** *** ******** increases **** ****** ********* *******. **** ** *** ** ******* this ****** ** *** ***** *****.

* ** **** ** ******* *** **** ** **** ******. Our ****** *** ******* ********* ** ** ** ************* * miles ** *** (********* ** *** *****), *** *** ** per **** ******.

***** ****** *** ***? **** ********* ** *********** *** **********? What ******* **********?

***, * ** ****** **** ******** **** * ***** ***** to ** ***** *****-**** **** *** *** *********** *** ***** ************:"********* ***** ** ** *,***' ** **.***% ************"

** ****

**/***** ***** (*** ****** ******) **** * ****** ***** **** 60GHz ***** (*** ***** *****). **** ** ****** + *** antenna *** *** ** ** * **** *** **** * 2ft ******* ** ** * *****. ********** *** ************ *** directly ******* ** ******** (*** ****** *** ******** *** ******* the ******** *** **** ***** ********** ** *** ***** ************/**********). We **** ** ****** **** ****** ********** ***** ********** ********** and ************ ** ********* ********* ** ********* **** **** ***** (you *** **** ** ** ** **** ** ********/*********).

*** ******** *** ****** ** ******* *** *** ****** - 60GHz **** - ***** ** * ***** ***** ****-**** *****.

(********** - * ** * ***** ********)

"***** *****: *** ******** ** ~***, ***** ****** *************."

******* ***** **'** **** **** ** ******.

******** *********: ***** ** ***** *** ******* ********** **** ** ******** for ********** ** **** *******.

** **** ***** ** *** **** **********.

****** **** ** *****: ***** **** *********** **** ** ********* ** ******** **********.

**'** ****** ******** ** ******* ** **** ** ****, *** sometimes ***** *** "******" *********, ** ***** ** ******* ** some ****.

**** *****: *** **** *** **** ** ~$*,***, ***** ** *** more **** **** ** **** ******** **** ** ************, *.*.,********.

** **** **

"**** *****: *** **** *** **** ** ~$*,***, ***** ** *** more **** **** ** **** ******** **** ** ************, *.*.,********.

** **** **"

***... *** ****'* ********** ******** *** ******* *** *** ******** ******. ***, *** ****** ** *********** ******* ****, ****** ** tough *** ****** ** **** * ******* ******* ** * broad ******** ****.

* **** ** **** *** *********. ******** ** ********, ***** found ** **** **** *** *************, *** **. *** **** need ** **** * ****** ******.

** *** ** **** ** ***** *** *********** ****, **'* just ****** *******. ********** **, ***** **********, *** ****** ** the **** **** **** ** **** ** ****** ** ******. A **** **** ***** ******* ******** ***** **% ** *** thickness ** *** ********** ****** ** **** *** ********** ** continue. *** *** ** ******** ** **** **** **** ** peak - *** *** ***** ****** * ***. *.* *** is * ****** ******* **** * ********, * ****** ****** than * **** ****. *** ***** ***** ******* *******, ** you *** ** ********. ** *** ** ***** * **********. You'll ** **** ** ***** ******* * ***** ** *****.

** *** ** ********* ****, ******** ** ***** **** ** backhaul **** * ****** ********. ** ******* ** *** ******** across ******, ***. **** **** ****** *** ****-******, *** ***** is ********, ** ** *** **** ***, ***'** ***** ** get ****/* **********. **'* *** ******* ********* ** ********* * sub-6 ***** ** * ***** ** *****.

***** **** *** *** ********* **** *********, ****'** ********* **** Dragonwave, ***. $** ** ****** *********** ** **** *****. **** will ** **** ** ******* ** **** *** *********'* ** the *****, ** ***** ******** *** *************.

***, * ***** *****'* ********* *** ********** ********** *** ***** is **** ******* ********* ********** ********** ******* (*.*.,*** **** *** *** ***** ****), *** **** ********.

*** *** ****** * *** *** ******** *** ********** ****** connections ***:

(*) *****'* * *** ***** ******** ************* **** ***** *** camera *********** ** ***** ************ (** **********).

(*) *** ********, ** *** ******* ***** *** ****** ** competitors, ***************** ***** *** * ***** ******** ** ******* **** *** ***** ** *****'*.

...*** *** ** ******** ** **** **** **** ** ****...

******** **'* * ****** **** * ****.

**** *** **** *****,

***** ****. ** **** ** ****** ******* *** * ** Fluidmesh **-******* *** ** ** *****. * ****** ** ***** my *** ***** ** **** ***** ** * ***** ** is **** *********** *** **** ***** ** **.

** **** ******* ***, *** **** ***** **** ******** *** sustainability ** ** *********** ** *** ******** ***** ************ ***** is ******* ** ****** ****. *** ****** ** * *** smaller **** **** **** ****** ******* ** ** **. *** second ***** ** *** ****** *******. **** ** *** ******* jobs *** ********** ***** **** * ***** ***** ****** **** 12-18 ******. ** * ***********, ***** ** ** *********** ****** and ***** ** ** '*******' **** ****** *** ** ***** as * *********** ******* *********. *** ******* *** **** *** there.

**** ****, *** *** ***** *** * **** ********** *** profitable ******* ** *** *****, *** **** **** ** **** the ***** ************.** ****** ********* ** **** ************* *** ******* *** ******* to **** ** ********** ** * *****. ** *** **** 10 ***** ** **** ******* ** ****** *** ***** ***** to ***** ********* *** **** ******-***** ****** **** ***** ****. At **** ***** ** *** * *** **** **** ** people ******* *******, ***, *****, ****, *** ******. ** ***** America ** **** ** *** ** ***** ** ** ******* 42% ******. ** **** ******** * *** ******* **** ** 2015 *** ** *** ********* ** ******* * ***** ********** radio ** ***** ****, ***** **** ** **** ** **** north ** *** **** ** * ***. ** ****** *** going ****** **** *** ** *** ** *** ******* **** traction. ******* ** ******* **** * **** ***** ********** *** funded *** *** ******, ** ***'* **** *** ***** ******* to ****** ** *** ****** ****** ** *****. ** ***** on **** ***** *****, **** *** ********* ****, *** **** the ****** *** *******. **** **** ** **** **** ******** from *** ************* ** **** ** *** ***** ** ****** wireless ******* ** *** *****. ** ********, *** *****-***** *** Radio *** “*****” *** **** **** **** ******** ***** *** aggressive ***** ***** *** *** *** *** **** **** ******* provided.

***** *** ** *********** ******* *** **** ** * **** friend ** ** **** **** **** ** **** ** **** new **** *** ****** **** **** **** ***** ******** *** that **** **** ** **** ** **** ****** ** **** and ***** ******* *** **** ***** ********* *****.

** ********!

******

* *** ******** * ******** ** *** *********** *** ***** brought **** ***** *** ******** ** *** ** ******, ** I **** * ** ********* ** *******.

*. ***** ********* *** **** *********** *** **** ************ ******** for ************ ***** ** *** ** **** *** **** * years. **** ********** *** ********** ********* *** ********* ** *** 5GHz ********* *** ****** ******** ***** **** ********* ******** *******. Whilst ** *** ** *** **** ***** **** * **** runs (******) *****-****, ********* *** ********* ** ******** **** ** intended ** **** * ***** ** **** *** ** ********** can *********** ******* ********** ** **** ************ ********* **** **** time ****** ***** *** **** ****** ** *** **** **** links **** *** ***** ********, ************ ** ***** *****. **** higher ********** ***** ***** *** **** ****** ********** (***** *** above) **** ** **** ** ** *****.

*. ** ****** ** ***** ** ****** ***** *** ******* more ****** ***** **** ******** ***** ** * *******, *** this ** *** ****** **. ***** ** ********* **** ** public ******* ***** **** *** **** ** ** ** ******* in * ******** *** ******, *** **** **** ** **** centralised ********** *** *********.

*. ****** ********, ************ ** **** *** ********** ***** ****** sector *** *****. * ** ******* *** ******** ** ***** link ************* *** *** **** **** ****** *** ******** ********.

*. *** **-****'* **** ****** ** *** ** *** ******* target ****** ** ***** **** ******** ****** **** ****** ******* (for ***** * ***** ** ** *** ** * ******** pricepoint).

*. ****** ******** *** * ********** ******** ******** ** *** AF-24, *** ***** **** ** ******* ** ***** **** ** Europe ** ** *** *** **** ***** ********** ** * mile ** ****. *** **-** **** *** * ********** ********* form ******, ******** **** *** *** ***** **** ****** *******, compared ** *.*** *** *** **-**** *** *.*** *** *** EH-1200.

******, ********* ********, ******!

"*** **-****'* **** ****** ** *** ** *** ******* ****** market ** ***** **** ******** ****** **** ****** ******* (*** which * ***** ** ** *** ** * ******** **********)."

**** ***** ********* ***** ******** ** **, **** ********** *** EH-600T's ***** *** ****** ****** ***********, ************ *** ***** ****. While *** ***** **** ** ****, * ***** ** ***** that *** **** *********** ***** ** *** **** ***** *** single *******.

(********** - * ** ******** ** ******** *********** & *****, Video ************ & ******** ** *****)

** ***** ** ** ***** ** * **** ** ******* a ****** ** ***** ***** **** ** **** ****** * little ***** ** **** ********* **********.

**** *** **** ******** ****** ****** ** *** *****, *** selected *** **** *********** ***** ** * ******* ********** **** company, ***** ***** **, ** *** ********, * **** ********** millimeter **** ******** ********** *******.

*** ** **/** *** ****** **** **** ******* ** ***** carriers ****** *** ***** *** ************ ******* ********** **** ** network *******, ******** ******** ******* *** ***** *** ***** *********.

* ***** **** **** ** **** ***** ** *** ********** $18M *******. **** ******* **** *** **** ** ******** ** the ***** ************ ******, *** **** **** ** **** ** help **** ********** *******, **** ** *** *******-**-***-**** (****) ****** - ********* *** *****-********-***** (***) ***** ******.

*****’* ****** ******** *** ***** ********* *** *** ******** ** one ******** ****** ** *** ***** ****, *** ****** ** maintaining * ****** *** ********** ******** ****, ***** *** ******-*******, with * ********** **** *** ******* ***********, **** ** ***** that ***** ********, *** ********. ***** ******* ******* ****-***** *** backhaul ************.

**** *** **** ******** ****** ****** ** *** *****, *** selected *** **** *********** ***** ** * ******* ********** **** company

****** ********, *** *** **** *** * ** * ***********?

** "**** ******** ****** ******" ******** ** ***, ****, ** 1000s ** ***** ******** ** *****?

**'* ******* **** *****. ****'* *****.

*** *-**** ***** ******** ** *** ** *** ******** ** be ********** **** ***** (*** ********** ** *** ***) *** the ******** ** ******** *********. *** *** ******** ** **** URL ****://*********.*****.***.**/********/********/*****-***********-*****/************-*****-*********/************.****

*** *** *** **** ** ** **** ***** ***** *** 2067 ********** *****, ** ***** *** (*.*. **** *****) **** supplied ** *****. ****'* **** *** ** *** *****'* ******* V-Band ***** - ***** ** *** ******* ************.

******, ***** ****** ** ***** ********* ******** **** *********: "**'** ******* *************** ****** ********* ** ******* *********, ****** *********, ******** ******** network ********* *** ***********."

*** ** ********* ****** * ***?

**** ** * ******* **** *** ****** **** ** ******** in ** *******. *** ***** *** "***, ****'** *** ** raise $**,*** ** ** ******* *** ***** ***** **** ****."

***** ********* ******* ******* **** *** **** **** ***** ** ********* ********** (not ***** ************) *** ******* ********* ** ***** ** *** early ** ****** ****** *** *** ** ********** *** ******* (or ********** **** *******) **** **.

* ***** *****'* * *** ******** *********** *** *********/*********** *******. You **** **** ** **** ** ******* *** **** **** around *** **** ** ***** *** ************ **** ** ******* a ******. ********* ** ****** ***** ** ********* *******, ***** never ***** **** ** ******. * ********** ***** *** ****** my ***** ** ***** **********.

***** *** *********** *** *********** ****** - ****** ***** ******* the **** ******* **** ********* **** ** ********** *** ******** selling ***** ** $**,*** ****. **** *****'* *********** **** ***** business ***** **** ******* ** *** **** *** *** ********* are ********* ********** **** *** ******** *********.

** ** *********** **** *** ** ******* ** *** ********** worldwide ***** ** ** ***** **,*** ***** (**** ** ******* we ******* *** **** **** **%). ** ***** **** $**** for **** ***** ****, **** ****'* $*** ** ******** ** far. *** ****** *** ** ******* *** ** ********** *** not *************.

****,

******* ** ******' *******, **** **** ** *** ******* ******* besides ********. *** ******** ***** ** *** ***** ********** **** stand "*******" ** ****** ********* **** **** (IEEE ***.****) . Customers don't want to get "locked" on propietary technologies.

****** **** *** ***** ******* ******** ************ *** ***********. **** Ubiquiti ****** **** *** ***** **** **-** ********* *** ***** own *********** ***** ****** ******* ******** (******) **** *****'* **** to *** ***** ******'* *******.

********* ***** ********* **** ** **** ****** ******* **** ***'* do ** ********* *** ** *** ******* *********** (**-**) ** they *** *** ******* / ********* (*****).

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