Toshiba Shutting Down Security Division

By Brian Karas, Published Aug 03, 2017, 10:23am EDT

Toshiba is shutting down their 'Security Division' business including their video surveillance product offering.

This is certainly part of a greater trend in the race to the bottom. See related:

In this note, we share Toshiba's notice to their channel partners, examine Toshiba's positioning and what other exits we expect.

Toshiba ******* ****

******* ******* ** * huge ***********, ********* ~$** billion *** *** ****** 200,000 *********.

Big ********* ********

******* *** **** ********* a ****** ** ********* problems, ********* *$*.** *****-**** **** *** nuclear ****, *** *$*.** ********** *******, ***** led ** *** *** resigning. ***** ******** **** led ********** *** ******* *** be ****** ** **** for **********.

Restructuring *******

******* *** ************ ***** corporate *********. ***** **-***** ********* **** split *** ** **** 1, ****, ** ******* ************** Systems & ********* ***********, Toshiba ********** ******* & Storage ***********, *** ******* Digital ********* ***********. 

Focus ** ******

*** ******* *** ****** a ***** ** ********* and *************:

***** ******, ** ****** our **** ***** ******* to ******** ****** ******, record ***** ** **** 4,000 ******* ***, *** we ****** ** *** a ****** ** ***** of *% ** ******.

**** **** ** *** bottom ****** ** *** security ********, "*********" *** "profit" *** ********* ** come ** *** **** companies.

Shutting **** ******** ********

** * ****** ** partners ***** **** ****, Toshiba ******** *** ******** that ** ***** **** down *** ******** ******** unit ** *** *** of ****:

Toshiba ******** - ***** ******

******* ***** ***** ********* to *** ********, ****** **** have ************ ** ** for at ***** * ****** (e.g., *** ***** **** *******). **** *** *** have * ***** ** ISC **** ****, *** were **** ********* ** a ***** ***** ***** at **** ****:

** * ***** ****** their **** ** *** very **********, *** ******** to **** **** ******. **** will *** **** ** significant ************* *** ***********, and ***** ********* **** likely ** **** ** shift ** *********** ******** that ***** ******* *************, possibly ** ******* ****.

More ***** ********

*******'* **** ** **** telling ** *****-****** ****** in *** ********. ***** has **** * **** in ********** ** ****** years, ** **** **** committed ********* *** ****** to ****** ******** ** new ******** *** ***** on ********** *****.

*******'* **** ****, ******* with****'* **** ****, *** ********* **** ****** **** ***** sales *** ********* ***** * ***** ** reduced *********** ** ********. This ** **** **** from larger ****** **** ***** and********* ****** **** ******** from *****, ******* ***** ********* would **** **** ********** selling ***** *** ********** at *** ****.

** ********** **** ********* getting *** ** *** industry, ****** ********** ** Toshiba ***, ** ** all-but-name, ** **** ***, particularly ** ***** ***** their ******** ******** ** a ***** **** ** a ****** ********* *********. 

Comments (18)

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Luis Carmona

IPVMU Certified | 08/03/17 04:33pm

I guess it is being closed down as there would obviously be no buyers to sell it off too? I'm curious if there were any attempts to sell it off first.

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Brian Karas

IPVM | In reply to Luis Carmona | 08/03/17 04:50pm

We attempted to contact Toshiba, but received no response, so do not know exactly how the decision was reached.

That being said, given that Longse may have better brand recognition than Toshiba for security products, the price they could get for selling it off may not have even covered what they would incur in costs to slice the division off and sell it as a business unit.

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Sergio Collazo

In reply to Brian Karas | 08/03/17 06:26pm

Parent division in Japan (Digital Media Network Company) was reorganized  was sold off to Canon.  It is likely the new management in Japan forced its closure.

Same division (DMNC) owned their Telephone Systems Divison which is also winding down.

 

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Sergio Collazo

In reply to Luis Carmona | 08/03/17 06:18pm

There is no equity to sell off.  Toshiba stopped developing cameras in 2007.  It's been 100% OEM since.

 

 

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Jeffrey Kunzler

In reply to Luis Carmona | 08/04/17 04:25pm

The security division was one of the Toshiba business units that was included in the sale to Canon Medical 

All products were OEM - no equity to sell off. The decision was most likely made by Canon. The Canon Group currently owns Axis and Milestone.

  

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Undisclosed Manufacturer #1

08/03/17 05:11pm

So, who's next?  My gut says Panasonic.  I don't really have anything to back that up, just sort of winging it.  Have they released anything interesting lately?

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Undisclosed Manufacturer #2

In reply to Undisclosed Manufacturer #1 | 08/03/17 05:13pm

I would tend to agree with you, but not based on any inside knowledge. For them, I'd expect it to be more likely selling it off or spinning it off. They have much better brand recognition than Toshiba did.

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Undisclosed Manufacturer #3

In reply to Undisclosed Manufacturer #1 | 08/03/17 05:55pm

Didn't they purchase Video Insights recently?  I would think that would signal their in for a longer term haul.....

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Undisclosed Integrator #5

In reply to Undisclosed Manufacturer #3 | 08/03/17 10:34pm

I do think they are in it for the long haul.  I also think they have an uphill battle currently with the legacy NVR Pelco style product line.  I have been told that after some restructuring VI is taking a more active role in the main product line which is a positive sign that they are recognizing the shift in the industry to VMS on the enterprise side.

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Undisclosed Manufacturer #6

In reply to Undisclosed Integrator #5 | 08/04/17 01:52am

I think they are eyeing the market carefully.  I think they may pull out of the recorder hardware NVR business, depending on how the VI goes.

Now that they have brought on the OEM stuff, they could dwindle farther and get out of the market completely, within a few years.

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John Honovich

IPVM | In reply to Undisclosed Manufacturer #6 | 08/04/17 11:46am

Now that they have brought on the OEM stuff, they could dwindle farther and get out of the market completely, within a few years.

I agree that companies increasing OEMing is a strong sign of reduced commitment / investment into a market.

Related: Panasonic OEM Dahua Camera Tested

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John Tran

In reply to Undisclosed Manufacturer #1 | 08/04/17 04:44am

Panasonic has big presence in Japan, local market.  I don't think they will wind down anytime soon.

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Undisclosed Integrator #5

In reply to Undisclosed Manufacturer #1 | 08/04/17 09:57pm

Have they released anything interesting lately?

They have, but not anything that is likely to set the world ablaze:

  1. H.265 cameras w/smart codecs (first big non-Hik/Dahua manufacturer to do so)
  2. Some form of secure communication method from camera to NVR
  3. Replaced the old as dirt WJ-ND400s NVR with mediocre new WJ-NX400 NVRs.
  4. Refreshing the viewing client
  5. A new web interface for their cameras no longer reliant on ActiveX.

For Panasonic dealers these are actually very promising maneuvers.  Not so promising: OEMing a few Dahua cameras in the main non-Advidia product line.

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Undisclosed Manufacturer #1

08/03/17 05:58pm

That was several years ago.

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Undisclosed Integrator #4

08/03/17 08:59pm

Their making quite a few changes.

I know that Toshiba stopped selling their PBX a few months back. They just sold it to Mitel back in July.

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Undisclosed #7

08/07/17 03:32pm

Industry Grapevine includes:

1) Toshiba- Lost favor with distribution a few years back, cut back on quality reps, tried some selling dealer direct, but remained behind the times. Vivotek and other OEMs stepped up to sell their respective brands. 

2) Panasonic- Had distribution channel contraction a few years ago, lost spec edge it had gained when Pelco sold to Schneider when more cost effective brands flooded the market, Video Insight claiming to want to run more business through distribution and yet one long term Panasonic rep firm just bailed to go all Tyco family video solutions.

3) As previous OEMs like Dahua, HikVision now openly compete with those that brought them to the dance, more "dates" likely to go home alone...

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Rashid Khan

08/09/17 01:24am

What about Toshiba's Facial Recognition engine? Has that been sold off too or being sold? Does anyone know?

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Brian Karas

IPVM | 09/20/17 02:21pm

Semi-related, Toshiba is now selling its flash memory chip unit to Bain.

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