VMS Market Getting Tougher

By: John Honovich, Published on Nov 19, 2015

A new member asked us:

"What are your thoughts on the future of VMS now that the new camera makers seem to be bundling it with their cameras (Tyco/exacq, DW/network optix, panasonic/VI etc.) or waging price war against each other (Milestone vs onSSI). Wouldn't it be harder for an independent VMS system to survive without a camera maker alliance/marriage?"

We are seeing the market become harder for all VMSes, despite the fact that VMS software, unlike hardware is not facing direct commoditization. In this note, we examine what we are seeing, what manufacturer execs have told us and where this leaves the market.

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

"**** *** **** ******** on *** ****** ** VMS *** **** *** new ****** ****** **** to ** ******** ** with ***** ******* (****/*****, DW/network *****, *********/** ***.) or ****** ***** *** against **** ***** (********* vs *****). ******'* ** be ****** *** ** independent *** ****** ** survive ******* * ****** maker ********/********?"

** *** ****** *** market ****** ****** *** all *****, ******* *** fact **** *** ********, unlike ******** ** *** facing ****** ***************. ** this ****, ** ******* what ** *** ******, what ************ ***** **** told ** *** ***** this ****** *** ******.

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

************

*** *************** ** ******* over *** **** *** years *** ********** ************* and ****** *** *** overall ******. ******* ** that, ************* *** ****** to **** *** **** ** justify ******* *** ************* their *********. *** ***** way ** ******** *** software *** ** *******, given **** ***** *** less *** ********* *** more **** ** ************* ** software ******** **** ****** hardware.

** **********, ****** *************** is ******* *** *** market, ** *** ************* aim ** ******** *** software ** ******** ****** to ****** ***** ****** / *** ***********.

********

******** ******* ************* ** at * **** ** the ** ***** ***. At **** *****, ** is ******* ** **** manufacturers ******** ** ** about *** ******** ***** competitors **** **** *** just ****** * *** or ***** * ****** line. *************, **** ** the *******. **** *** Canon / **** / Milestone ****, ***** **** have ********** ******** **** are *** ******** ***** creates **** ***** *** reasonable ****** **** ** some ***** ** *** future ** **** ******.

**** ******** ** ******** a **** ********** ******. Manufacturers ************ ***** ******** on ***** *** *********, so ***** *********** ** not ** ******* / bring ****** **, ******* greatly **** ** ******. Though ***** *** ******* benefits ** ***** *** those *** ****** * no ******* ******** (***** Avigilon), ** **** *** more ************* *** ** do ****, ** **** be ****** *** ***** later ******** ** ** ************ with **** ******** / closed ********. 

Pricing ****

***** ***** *** **** always **** ******* *** price **** *********, ********** *** ****** projects, **** *** ****** far **** ****** *** aggressive. *** **** ******* is***** *******'* $** *** channel ******** *******, ***** ** ******** cited ** ***** ******** manufacturers ** * ***** factor (**** ***** / more ******** ** ***** Insight *** ***** **** for ********* ******* ** well). ********** ********* / ***** war** *** ******** * significant ******* ** *** NA ***** ************ ****** that ***** *** *** software *** ** *** for ****** *******. **********, both ********* **** **** this ** *** *** long **** ******** *** they ***, ***********, ****** into ****.

$600 ****

******* ****** ********* *** lower *** ** *** market is ******* ************* ******** cheap **** **** ***** cheap *******, **** ******* Hikvision's. ***** **** ******** / ******** *** ******* not ** *** **** league ** ********, *****, Genetec, *********, ***. (*** ********* ****-**** ******) *** ********* ** selling ** ******* **** in *** $*** ***** including ******** *** ********. You ****** *** **** the ******** ***** *** that ***** **** *** main ******* *****. **** is **** *****, ** the **** **** **** buy *** $*** ***, you *** (******) ~$*** IP ******* **** *** same *******.

*******

*** *** *** ** the ****** *** ***** been ****** *** *** software, ** *** ****** there, ****** ****, ** not **** * *********** impact. *** ******* ******* right *** ** *** middle ** *** ****** where *** **** *********** price **** *** ******** are *********. **** ** the **** *** / enterprise ******, **** *** VMS market **** ********** **** but **** ****** ****** support **** **** *********.

** * ***** ****, though *** ***** ** hot * ***** ** technology *********, ** ** not *** *** ***** shift ** *** ***** occurring ** *** **** year (****) ** ***** systems *** ********* *** competitive ******* *** ***** of *** ****** ** on **** ******** / bundling ** ******* *** / *** *********.

Comments (7)

I hear a whisper that Hikvision are planning to bring out Nvrs with built in VMS (Ivms4200 or 5200) software too. Basically a Linux Nvr with a Windows board running Vms all in one... Another interesting and maybe scary proposition for VMS companies.

The 4200 and 5200 client software currently connects to the DVR/NVRS as they act as servers now. I am not sure what you are saying. Can you explain?

Hi Michael,

What I've heard is that the NVR will act as a server like you mentioned as well as have a local IVMS client software embedded in them too.

Not too sure of the exact set up but I believe that there will be 2 mainboards in the NVR (one video server, and one "local" IVMS client to allow grouping of cameras, cross line detection, foreign object detection and other basic VMS functionality directly from the NVR main interface.

For medium sized installations, an integrator and client might find this alternative quite advantageous, especially if the client just wants to do his main viewing, clip copies and investigations from the one machine rather than from a third party paid VMS software running on another VMS client computer.

Not a bad idea, two computers in one?

Maybe even keep the TCP/IP traffic on the backplane instead of PHY's?

Might be a bit clunky going from recorder mode to client mode, but there's definitely a few advantages in have more than one autonomous CPU running.

But Windows SOC has to be a bit pricey compared to normal embedded processors.

I head about this. Basicly if you have multible NVRs and/or DVRs you can have one be the master and you can view the other units from the master.

My biggest problem is finding reliability in the hikvision NVRs. They work yes, but are cumbersome when trying to playback video and ends up crushing my profit on small installs. I try to manage customer expectations when quoting them and explain the differences, but it doesn't seem to matter.

My new "tactic" is trying to find a reliable VMS solution close to the cost of an embedded NVR. Basically building a machine that can handle exacq start, but at a similar price point; it's been difficult, but I just purchased some components to try out. Would be easier if I had more in depth knowledge of Linux for mounting drives, but Windows will work for now.

Anyone trying something similar or have any other VMS ideas?

Every industry reaches a point of maturation and saturation, HVAC, TELECOM, IT SUPPORT, and the businesses focused on long term customer service, seem to be the ones that survive the cut. Trying to find the least expensive technology and winning business on think margins is a recipe for disaster.

Selling and Supporting a Home-Brew solution, regardless of features, etc, places you in a very difficult position to compete beyond customers that simply trust you as a person.

If anything, you need to sell your services and support, as if the equipment was free, and the customer pays you for any and all time and support.

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.

Related Reports

Milestone Drops Hikvision From Elite Partners on Feb 11, 2019
Milestone has quietly dropped Hikvision from their 'Elite Partners', less than 3 years after adding the Chinese government-owned...
Exacq Raises VMS Software Pricing Twice in Less Than a Year on Feb 18, 2019
Most VMSes regularly release new features, but rarely increase their prices. For the 3rd time in 4 years, and 2nd time in 8 months, since being...
Prysm PSIM Profile on Mar 05, 2019
A decade ago, PSIM promised significant potential but has always suffered from significant problems. Now, a number of PSIMs have either gone out of...
Milestone Launches Marketplace Where Nothing Is For Sale on Feb 26, 2019
The central announcement at Milestone's annual conference MIPS is Marketplace, which Milestone compared to Uber and Match.com for its ability to...
Qognify Dropping Seetec and OnSSI Brands on Mar 01, 2019
Qognify is dropping both the Seetec and OnSSI brands, just over 2 months after acquiring OnSSI / Seetec and a week after sweeping cuts to the...
BCDVideo Expansion And Switch From HP To Dell Examined on Mar 11, 2019
BCDVideo says they have more than tripled revenue in the past 5 years and are continuing to grow, powered most recently by switching their lead...
Avigilon Launches 'Renewed Products Program' on Mar 19, 2019
There are lots of 'pre-owned' cars but pre-owned IP cameras? While such programs are common in other industries, in video surveillance, they are...
Genetec Beats Milestone For IHS #1 on Jun 21, 2019
For years, Milestone has touted that they are the #1 VMS. Now, Genetec has beaten them in IHS rankings. But what is this? Even other manufacturers...
Axis Will Not Block Resellers on Jun 10, 2019
While Axis generally has strong favorability amongst integrators, the biggest complaint is their channel model, which results in smaller integrator...
Giant Tyco Campaigns Against Startup Qumulex on Jul 25, 2019
One is a giant conglomerate that owns the world's largest security integrator. The other has no shipping products. But Tyco is campaigning...

Most Recent Industry Reports

"Hikvision Football Arena" Lithuania Causes Controversy on Jan 24, 2020
Controversy has arisen in Lithuania over Hikvision becoming a soccer team's top sponsor and gaining naming rights to their arena, with one local MP...
Axis and Genetec Drop IFSEC 2020 on Jan 23, 2020
Two of the best-known video surveillance manufacturers are dropping IFSEC International 2020, joining Milestone who dropped IFSEC in 2019. The...
Multipoint Door Lock Tutorial on Jan 23, 2020
Despite widespread use, locked doors are notoriously weak at stopping entry, and thousands can be misspent on locks that leave doors quite...
Avigilon Shifts Cloud Strategy - Merges Blue and ACC on Jan 23, 2020
Avigilon is shifting its cloud strategy, phasing out its Blue web-managed surveillance platform as a stand-alone brand and merging it with its ACC...
Verkada Paying $100 For Referrals Just To Demo on Jan 22, 2020
Some companies pay for referrals when the referral becomes a customer. Verkada is taking it to the next level - paying $100 referrals fees simply...
Camera Analytics Shootout 2020 - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Jan 22, 2020
Analytics are hot again, thanks to a slew of AI-powered cameras, but whose analytics really work? And how do these new smart cameras compare to top...
Intersec 2020 Final Show Report on Jan 21, 2020
IPVM spent all 3 days at the Intersec 2020 show interviewing various companies and finding key trends. We cover: Middle East Enterprise...
Vehicle & Long Range Access Reader Tutorial on Jan 21, 2020
One of the classic challenges for access control are parking lots and garages, where the user's credential is far from the reader. With modern...
Clearview AI Alarm - NY Times Report Says "Might End Privacy" on Jan 20, 2020
Over the weekend, the NY Times released a report titled "The Secretive Company That Might End Privacy as We Know It" about a company named...
Favorite Camera Manufacturers 2020 on Jan 20, 2020
The past 2 years of US bans and sanctions have shaken the video surveillance industry but what impact would this have on integrators' favorite...