He alleges that one of the components (VMS) of a hybrid (eg: not all single vendor) surveillance system is facing bankruptcy. There have not been that many VMS startups, so presumably this is a company that is older than Verkada. Also, there are very few (if any) common VMSes that would stop working if you did not pay a SUP or ongoing license fee. So, with all this in mind, he proposes to the customer that they invest in an all-inclusive system from a very new company, where the components likely WOULD stop working if the company went bankrupt.
This is not just lack of understanding of the market, it is lack of understanding of basic sales tactics.
he proposes to the customer that they invest in an all-inclusive system from a very new company, where the components likely WOULD stop working if the company went bankrupt.
In their minds, Verkada is destined to be a multi-billion dollar company. I think that's a fair bet, as the business model (locked-in subscription business with unprecedented industry sales organization) is strong. The long-term customer value proposition is another matter.
I used to work for a credit counseling company many years ago and "ethics" wasn't very high on their priority list. As employees, we were encouraged to watch Boiler Room and GlenGarry Glen Ross as these should inspire us. Thankfully, they are no longer in business.
I see their pitch being successful in younger SMB companies. I can't imagine any real enterprise company would go Verkada let alone not use an integrator or dealer restricted product. The reality is that large multi-billion dollar enterprises want consistency and conformity across sites for installation, use, training, support etc. Not sure how this model scales upstream but in SMB I bet Verkada can get away with churn and burn.
As a distributor, I've had clients tell me that our competition told them that the company I work for went bankrupt, is in financial ruin, is getting ready to be bought out by another company, is no longer bringing in products, etc... To me, when this happens, it means that the competition is getting desperate. I would assume that Verkada has been desperate for market share for a while now.
I would assume that Verkada has been desperate for market share for a while now.
If by 'desperate for market share' you mean they are struggling to grow revenue, then definitely not. All signs point to them growing very quickly (granted it's from a very low base since they only started selling in the past 2 years) but they are winning numerous large scale accounts - hundreds to thousands of cameras each, which is very, very rare for a company in this industry this young.
My hypothesis is that the sales team knows that they will be in a new industry in a few years anyway so they are not worried about 'dinosaurs' not liking them. That's simply based on their track record of going from startup to startup based on what's hot, regardless of the category or industry.
If you stayed in an industry and did such things, you would gain a bad reputation and it would harm your employment prospects longterm but whatever blockchain or self-driving car or whatever hot segment there is in 2022 will not care what Ryan Young et al. did in video surveillance back in 2019.
Of course, for Verkada's board and execs who may remain, it is an issue. But as lots of other fast-growing Valley startups have shown, better (financially) to get hyper-growth first and deal with the fallout, if it comes, later.
I appreciate the full fledged assault on these guys, they are a huge market disruption, I'm scared of them and Meraki. This article pulls no punches, attacking the little whipper snapper, digging up "dirt" (drinking games aren't all that bad and neither is trying to make some money selling them) and just crushing the entire organization. I love it.
These guys lie, have they been actively trying to conduct cyber security attacks, designed back doors into their products? Are they under investigation for human rights violations? Boy oh boy I bet IPVM would REALLY get after them if that was the case.
wow! when did IPVM turn into TMZ? Not so much respective to the article and information regarding the false information. That's good and important information to know...
But personally attacking the SDR? I know you'll defend this as simply publishing his work history, that is publicly available... but c'mon. Your disdain for Verkada really shines brightly in this post.
Not at all... But there is an appropriate way to do this. Your post was a bit sensationalistic – graphics, screen grabs, personal pics, custom stamps, and a YouTube clip – to the level of a click-bait article.
I think you know this… So not sure why I’m even responding. I suppose I misinterpreted the type of content I hoped to have when subscribing to IPVM.
I agree that looking 10 years down the road is absurd... Assuming they are around and still maintaining their cloud in 10 years.
Also, look at the costs...
One of their cameras is listed at $799.
Then add a 10 year cloud license, because what good is a 10 year warranty if you can't use it for the next 10 years. $1,599
Then there is a viewing station at $1,999. I am sure you can view it without, but let's look at a system approach.
Then a 10 year cloud license for the viewing station. $3,999
So the total to view 1 camera is $8,396. Assuming you don't need any switches or mounts or anything....
Anyone know why their camera has wi-fi & bluetooth? Most enterprises do not want wireless nodes all over the place. Also, wireless connectivity, but without low voltage, so you need to run a PoE network connection anyway..