Vidient Out of Business - Analytics Market Examined

Author: John Honovich, Published on Nov 04, 2010

Video analytics manufacturer, Vidient, has gone out of business. This is the first prominent, well funded video analytics company to do so. [The last major analytics event was DvTel acquiring ioimage in January 2010.]

According to an interview with Vidient's CEO, while 2010 revenue was up sharply over 2009, Vidient was unable to secure additional funding. The company reports that a sale fell through at the last moment.

Vidient has a 3rd party broker who will coordinate a sale of the technology over the next few months. The goal of this includes providing support for existing Vidient customers.

[UPDATE: April 2011: Vidient's technology has been sold to Agilent.]

Vidient has focused on high end applications mostly in critical infrastructure and transportation. As we examined in June 2009, Vidient had shifted to a full services approach where they directly optimized and commissioned large, mission critical systems. We believe this was a solid approach to overcome performance issues common in video analytic projects.

Vidient's reported customer list includes: Amtrak, Los Angeles Metro, Montreal Metro, St. Louis Metro, US Departments of State, Navy, Homeland Security, etc.

Funding and Investor Interest

After being spun out of NEC in 2003, Vidient raised approximately $30 Million in VC funding. This is significantly above average for video analytics companies only topped by investments in 3VR, BRS Labs and Object Video. [See our Video Surveillance investment directory for details.]

We are not surprised about the difficulty in raising funds. We have weekly calls with top investment firms and the appetite for video analytics investments is quite low. This undoubtedly relates to disappointing market adoption and challenges hitting revenue targets that tens of millions in funding brings.

What Does this Mean for the Video Analytics Market?

Get Video Surveillance News In Your Inbox
Get Video Surveillance News In Your Inbox

Tell us what you think in the poll:

We think this is an important sign of the challenges that video analytics now face. With easy money gone after 2008 and widespread market disappointment in the technology, video analytics manufacturers will need to become cash flow positive as soon as possible. Additionally, video analytic customers should closely evaluate the financial sustainability of their providers.

One important structural difference of Vidient relative to other analytics providers is that they did not go into the recorder or camera business (e.g., VideoIQ and Cernium into cameras, 3VR and Aimetis into recorders, etc.). In this respect, Vidient's product approach of concentrating on selling analytics only is closer to BRS Labs or Object Video. We are not certain which approach will be best in the long run but we do see this as an important go to market distinction.

[UPDATE: April 2011: Vidient's technology has been sold to Agilent.]

1 report cite this report:

Investments & Acquisitions Directory 2011 on Dec 26, 2010
This directory provides a single source of information on funding and acquisitions in the video surveillance market. It is part of our Video...
Comments : PRO Members only. Login. or Join.

Related Reports

The 2018 Surveillance Industry Guide on Jan 16, 2018
The 300 page, 2018 Video Surveillance Industry Guide, covering the key events and the future of the video surveillance market, is now available,...
Directory Of 92 Video Analytics Suppliers on Jan 04, 2018
This directory provides a list of video analytics providers to help you see and research what options are available. Video...
Amazon Acquires Blink on Dec 22, 2017
Amazon has made their first significant acquisition in the connected home space, buying wire-free camera manufacturer Blink. We examine Amazon's...
Industry Vet Buying Integrators For New Conglomerate (DFENDUS) on Dec 21, 2017
Industry veteran Dan Marston has started a new company, DFENDUS, with the specific goal of buying up integrators to form an operating...
2018 Top Sales Interest For Integrators on Dec 20, 2017
130+ integrators answered: This is a key question, especially for manufacturers, as it impacts what areas to focus more on and what...
Failed Retail Video Analytics Startup Analyzed on Dec 19, 2017
Most manufacturers in this industry try hard to cover up failure. But an industry startup backed by Silicon Valley's most prestigious accelerator...
Axis Network Radar Tested (D2050-VE) on Dec 19, 2017
Axis is expanding into a new market - radar. The company has released their D2050-VE Network Radar Detector, claiming to minimize false alarms, in...
2018 Video Surveillance Cameras Overview on Dec 11, 2017
This report concisely explains the developments for surveillance cameras offered in 2017 and the state of offerings going into 2018, including...
Sentry360 Bankruptcy on Nov 30, 2017
Sentry360, a US-based video surveillance manufacturer, most well-known for its panoramic cameras, has filed for Chapter 7 bankruptcy. In this...
Dahua Hard-Coded Credentials Vulnerability on Nov 20, 2017
A newly discovered Dahua backdoor is described by the researcher discovering it as: not the result of an accidental logic error or poor...

Most Recent Industry Reports

PoE Powered Access Control Tutorial on Jan 19, 2018
Powering access control with Power over Ethernet is becoming increasingly common.  However, access requires more power than cameras, and the...
If You Have 4 Cameras, You Can Throw Them Away, If You Have 400, They Throw You Away on Jan 19, 2018
Do users care about anything but price? Do user care about cybersecurity? Do users care about trusting their supplier? These have become...
Chinese Government Hikvision Surveillance System On US Government Network on Jan 18, 2018
Hikvision, the Chinese government-owned manufacturer, has publicly claimed that their products are running on a US government network. Moreover,...
Winter 2018 Camera Course on Jan 18, 2018
Learn video surveillance and get certified. Register now. Save $50 on the course, ending this Thursday the 18th, plus get access to 2 class times...
VSaaS Usage Statistics 2018 on Jan 18, 2018
VSaaS has been a 'next big thing' for more than a decade. The prospect of managing, storing and streaming video from the cloud rather than...
Vivint Streety Video Strengthens Door Knocking on Jan 17, 2018
Vivint is famous (or infamous depending on your perspective) for mastering large scale door to door selling. The company has skyrocketed from a...
Axis: "It’s A Question Of Trust And Who You Want To Be Associated With" on Jan 17, 2018
Who do you trust? Who do you want to be associated with? Axis is raising hard questions to start 2018. In this note, we examine these questions,...
Software House Vulnerability Allows Inside Attacker To Open Doors on Jan 17, 2018
A vulnerability in Software House IP-ACM modules allows an attacker to potentially unlock doors, or perform other actions, on affected systems....
'Defiant' Hikvision 'Strikes Back' At WSJ And US on Jan 16, 2018
The fight is on. Hikvision and their owner, the Chinese government, 'strikes back' against the Wall Street Journal and US politicians raising...
The 2018 Surveillance Industry Guide on Jan 16, 2018
The 300 page, 2018 Video Surveillance Industry Guide, covering the key events and the future of the video surveillance market, is now available,...

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