The State of the VMS Market 2010

Author: John Honovich, Published on Sep 12, 2010

Video Management Software is undergoing a violent transformation. Evolving from its niche beginnings, VMS has matured into a core component of video surveillance. However, the current shifts are stronger and faster than the market has ever experienced.

Indeed, VMS is the segment in most flux. The megapixel market is growing well and smoothly, with incremental innovation and increasing suppliers. The video analytics market is rather subdued (save for BRS Labs' BS).

By contrast, the VMS market is being hit by numerous forces. From:

Incumbents are attacking, new entrants are cutting into the low end of the market and standards are reducing traditional competitive differentiation.

On the other hand, the overall demand for Video Management Software is robust. The growth of IP cameras and the increasing cost effectiveness of Commercial Off the Shelf PCs and storage drives the overall market.

However, which individual solutions are best and what specific companies will thrive are very much open (and debatable) questions.

In the past year, we have conducted thousands of hours of testing and analysis on enterprise VMS systems, budget VMS systems, VSaaS offerings and more. Leveraging this, we examine the status and future of the market.

Inside this premium section, we answer the following 10 questions/issues:

  1. What impact are IP camera 'standards' having on the market?
  2. What is the future of NVR/DVR appliances?
  3. How will Milestone's moves effect VMS competitors?
  4. What threat do the VSaaS providers hold?
  5. What impact will the growing use of mobile devices have on the VMS market?
  6. Are video analytics changing the use or selection of VMS?
  7. How will PSIM change the VMS market?
  8. What will become the key foundations for success in the VMS market?
  9. What VMS companies are most at risk?
  10. What VMS companies are most likely to benefit?

***** ********** ******** ** ********** * ******* **************. ******** **** its ***** **********, *** *** ******* **** * **** ********* of ***** ************. *******, *** ******* ****** *** ******** *** faster **** *** ****** *** **** ***********.

******, *** ** *** ******* ** **** ****. *** ********* market ** ******* **** *** ********, **** *********** ********** *** increasing *********. *** ***** ********* ****** ** ****** ******* (**** for *** ****'**).

** ********, *** *** ****** ** ***** *** ** ******** forces. ****:

********** *** *********, *** ******** *** ******* **** *** *** end ** *** ****** *** ********* *** ******** *********** *********** differentiation.

** *** ***** ****, *** ******* ****** *** ***** ********** Software ** ******. *** ****** ** ** ******* *** *** increasing **** ************* ** ********** *** *** ***** *** *** storage ****** *** ******* ******.

*******, ***** ********** ********* *** **** *** **** ******** ********* will ****** *** **** **** **** (*** *********) *********.

** *** **** ****, ** **** ********* ********* ** ***** of ******* *** ******** ************ *** *******, ****** *** *******,***** ************ ****. ********** ****, ** ******* *** ****** *** ****** of *** ******.

****** **** ******* *******, ** ****** *** ********* ** *********/******:

  1. **** ****** *** ** ****** '*********' ****** ** *** ******?
  2. **** ** *** ****** ** ***/*** **********?
  3. *** **** *********'* ***** ****** *** ***********?
  4. **** ****** ** *** ***** ********* ****?
  5. **** ****** **** *** ******* *** ** ****** ******* **** on *** *** ******?
  6. *** ***** ********* ******** *** *** ** ********* ** ***?
  7. *** **** **** ****** *** *** ******?
  8. **** **** ****** *** *** *********** *** ******* ** *** VMS ******?
  9. **** *** ********* *** **** ** ****?
  10. **** *** ********* *** **** ****** ** *******?

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

**** ****** *** ** ****** '*********' ****** ** *** ******?

**** *** ****** **** ** ****** '*********' **** ****** * real ***** ** *** ****** **** ****. ** ** ************ ********** *** ****, *** ********** ******** ** ** ****** ********* ** *******. ONVIF ******* ***** *** *** **** **** *************** ********* *************** *******. **** * **** *** ***** ******* ****, ***** is ******** ******** **** ***** ******** ** *** **** ** the ****** ******* ************ ******** (********** ******).

***** ***** ******* ****** ****** ********, ** ******* **** ****, 2011, **** ** *** **** **** ** ****** ********* ***** significantly ********* *** ****** **** ***** *** **** ***************.

**** ******** **** ** ********** *** *** ******* ** ****** and *** ****** ** ** **** ***** ******* ******* *** users ** *** *** ***** *** **** ******** *** ***** price *** ***** (********** ** *********** ******* ***************).

** *** ***** ****, ****** '*********' **** ****** ** ********* element ** *********** ********* *** ********* **** *** ******** *********** IP ****** ******* - ******, *********, ****, *******, *******, ** name **** ** *** **** **** ***** *********. ** ******, this **** *** ********* *** ******* ********** **** ****. *******, it ****** **** ** ******* ** ********* **********.

*** *** ********* **** **** ** ******* ****** *******, **** will ****** **** ** ******* ******* * *** **********. **** importantly, **** ***** *** ******** *** ******* ***** *** *** enter *** ****** ** ***** ****. ** *** ********** ** budget *** *********, * *** ******* ** *** ****** ******** on **** ******* ** *** '****** ****** ***********' ****** *********** technique. ***** **** ******* *** *** *********'* *********** *****, ** has ****** **** ** * *********** *********. **** ******** ** about ** ** *******.

**** ** *** ****** ** ***/*** **********?

***** ********** **** ****** * **** *** *****-**** '******' ****** deployments, ** ******* ********** **** ************ ** ******** ** *** software, ********** ** *** ***** **** ** *** ****** ***** appliances **** ************* **** ******.

*** ********** ******** ** ****-********** *** **** *** *** ******* plus **-**** *** ************ ***** *** ******** **** *** ***/*** appliances ****** *** ******. ****** * *****, ****** *** ** today (**** '*****' ****) *** ******* ** ********* **-** ******** of *****. **** ** ******* *********** *** **** *** ******* cards, *** **** *** ******** **** **** ******** **-***** ********** as ****.

**** *** ******** ******** ** *****, *** ***** **** ** a '***' ******** ** ************* **** **** **** ********* ********* can ******. ***'* *** *** **** ** *******: $**** *** hardware/storage ** ********* **********, *** $*** *** ******** *** *** total **** ** ***** $*,***. **'* **** *** ********* ************* to ***** **** ***** ** **** ****-** ***** ** **-**** hardware.

** *** **** *** ** *** ****** (******** ** *******), VMS ******** ******* ********* *** ***** ***** ** ** ** reason ** ******* **** ****** **** ****** ** *** *********** boxes **** ******** **** *** **** *** *****.

** ***** *** ******** **** ** *********** *** ********** ** using *** ********** **** *** ******** ***-****** (******* ** ** *******). ******** *** *** *** ******** * ********** *********** ***** to ******* ************ **** ** ******** ***** *** *** ***** benefit ** *****-** ******* ********** (********* **** ***-*** ***** ***). However, * ******* ****** ** **** ***/*** ********** *** ********* (with ********** *************** ********).

**** ****** **** **-**** ***** *** ************ ** *** ******** have?

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

**-**** ************ ***** ***** *** *********** ****** *** *** ***** VMS ********. **** *** ********* ****** ** *** ********* **** appliances ** *** ********. ** ********* *** *** * **** dozen *** ************ ** * *** ** ********** ** *** shipping (*** ***** ********** ********) *** **********. **************, *** ************ majority ** *** ******** ******** ***** ** **** ** ****** their ********. **** *** ****** *** ******** ********* **** * disproportionate ********* ******** ** ********* ************* *** *** ********* *** closely ***** ***** ******** (*.*., ****, ******, *******, *****).

** *** ***** ****, **-**** ***** ** *** ******** ** surprisingly *** (** ***** ************ ******** ** *** ******* ******** market). *** **** ******* ** **** ** ********* ***, ******* its **** ********* *** ***** *****, ***** ****** ***** ** buy **** *** $** *** ******* ******* ******* ***** *******. Only * **** *** ** *** ******* ****** *** ********* sell ******.

***** ** ********** **** **** ** ******** ***********, **** * software ************ *********, ** ** ******* ***, **** ***********, ***********. We ******* **** ** *** ******** **** **** *** *** market (********** **** *** ****** ****), *** ******** **** ********** be **** ****** ** *** ***** (******* *** *** *******). On *** ***** ****, **** *** *** ****** ********* ***** 2012.

*** **** *********'* ***** ****** *** ***********?

** ******* *********'* ********** ******* ******** ** *********** *** *** end ** *** ******. *** ********* ******* ** ** **** if **** ******** *** *** ***, **** *** ******** ***** overall ******* ** ***** *** ***** ****** ** ********* ***** who ********** *** ***** ****** *** *********.

***** ** *********'* *****, ***** *** ******* *** ** *** *** ***** *** ****** **** *** ******* ******* ** ***** $***. However, ********* *** ********* ****. ** *** ******** ********* **** we **** *** **** **** ***** ******** ** ******* *********** but ** ***** **'* ********** **** **** *********** (**** ***** level ********) **** *** ******* **** ***** ****** ** *** next * *****.

***** ******* ******** ** ***********, *** ******* ***** **** ***** ****** ********** ** **** ** ****** (**** **** ***** *****) **** most ** *** ****** ** ***** ***** ******* ** *** market.

***********, ********* *** *** ********* *** ************ '******' ** **** their ***** ***** ********* ***** *** ********* ********.

*** ****** ** ******* *** ********* ****** *** ***** *** likely ** ** ******** ** *********'* *******. ** **** ***'* match *****, ******* ****** **** ** ******* (** *******). ** they ** *****, **** ****** *** ******** *** ******* ******* is ***** ****** ** ******* (*** ** *** **** ***** unit *****).

*** *** ********* ** *** ******* *** ********* **** **** higher *** ********* ** ******** ** *******. ** ******* **** at *** *** ** *** ****** ** *** '*******' *** 'losers' *******.

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

** *** ***** ********'* ******* ********* ***** ****** ** $** per ****** ** ****, ** ** *** *** ***** ****** a *********** ****** ** *** *** ******. *** **** ***** adopters **** *** ** *** *******, ** ******* **** **** be **********. *** ******** ****, ** **** ** **** ** justify.

***** ************ *****, ** ** ******* **** *** **** ** use **** ***** ********* **** **** * **** ***** ** a *******/***** **** ***** **** *******. ** ******* ********** ***** providers **** ****** ***** ******* ** ** ******* ** *** pricing (** ** ********* ******* ******* *******).

** ** *** *** **** *** ********* ********** ** ********* plug * **** ****** ****** **** ***** *********. *******, ** and **** ********* **** **** ****, **** **** ********* ******* the ******** * *********** *********.

**** ****** **** *** ******* *** ** ****** ******* **** on *** *** ******?

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

  • ********* ******** ***** *** ****** **********
  • ********* ********** ** ****** ************

****** *********** *** **********, ****** *********** ********** **** '***** **' in * ******** *********** ***** ******* ******** ** $* ** $10 ** ***** ****** ** ***** ******** ** *** ****. As **** ***** ***** **** ** ** *********** ********* **** minimal ***** *** ********* ************. ** ***** **** ***** *** a ********* ****** ** *** ****** ***.

************ **********, *** *** **** **** ****, ****** ******* * world ***** ************ ******** *** **** ****** *** **** *** Internet *** **** ****** ***** ****. ***** ***** ** *** of ******* *****, ***** ******** *** *******.

**** *** ******** ** ****** **********, *** *** ****** ****** appear **** **********. **** * ******* **** *********** ******* ** ******** ******. *** ******* *** **** *,*** reviews *** ** ***** ******* **** **,*** ********* ** *** last ****. ** $* *** ******* *** *********** *****'* **% cut, *** ********* *** ******** **** **** $***,*** ** *** last ****. ************* *** * *********** ************ ******* *** ****** quite ********** *** ** *********** ********* **** ** *****, ********* or ** ******. [**** *** ********* ****** **** ***** * ************** ********** ******** ************.]

** ***** *** **** *** ***** ********* ******* *** **** can ****** ******* *** *** ********* **** ********* ******** *********** version *** ************ ******** *** ******* *** ****.

** ******* **** ****** *** ********* **** ******, **** **** incorporate '*********' *** ******* ***** **** ************. **** **** *********** be ******** ** ******** ******* ****** ** *** ****** ******.

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

***** ********* ** *** * ******* ***** ** *** ********* nor ****** ***************. ***** ***** ********* ********* ** ** **** and ** ********* *** ******* ************, ******* ********** *** ******** video ********* *** *********** ******* *** *** *********.

**** *** **** **** ** ******* ********** *** ***** ********* in **** *** ****** ****** ** ********** * ****** ** 2011 (*** ** ****/** ******* *** ****/** **********), ** ** not ****** **** ***** ** ****** *** *** **** ******.

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

** ******* ****, ** ** *****, ******** *********** *** **********, will ****** *** ******** *** *** ********* **** ******* **** sea ******. **** ** **** *** *********, ********* *********** * conventional ****** ** ********* *** ****** *********, *** ********* **** offer ******** ***** ** **** *******.

**** ******* ***** ****** *** ** * ******** ** *** providers **** **** ****** '** ******' *** ***** ****** ** enterprise **********, ******** ****** ***********, **********, ***** ************ **** *** last *** *****.

** ***** **** *** ********* **** ******** ** *** ** advanced *********** *** ********** *** **** **** **** ************ **** the **** ******* **** ******* ********* *** ******** *** *********.

** *** ***** ****, ** *** ********* **** *** ********* will *** **** *********. *** ******* ******* ** *** *********** amount ** ********** ******* *****'* ******** *** ********* *** **** software. ***** ** ********* ***** *** ***** ********** * **** offering ** ******** ***** ********** ***** *** *******, ** ******* Genetec, *********, *****, ***. **** ****** ******** ** ****** ***** own *********.

**** **** ****** *** *** *********** *** ******* ** *** VMS ******?

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

  • ******* ***** *** *** ********* ********* ** ***** ***** *** sold ****** *** *** ******
  • ******** ******** ***** *** *** ****** ** *** ****** - broad ******** ********, ***** ********, **** ** ***** ** ***** provides *** ****** *** *********** ********* *** * *** *********
  • ******** ********** *************** **** *** **** ** ***** **** ******* the ******* *** * ******* - * *** **** ****** technological ********* **** ****** *** ****** *** ***** ***** ***********
  • ******* ********* ** *******, *******, *******, ********, ********* - ****** but *** *** **** ******** *** ******** ******** ** ******* solutions **** ****** ********** **** *** ***** *****

'******' - **** *** ********* *** **** ** ****?

** ***** * ****** ** ********** *** *** ********* *** specifically ** ****:

  • '***** ********** *** ********' - *******: ****. ********* ** ****** it ********** ** **** ** '*********'. ****'* *** ******** ** not ************* ****** ** ******* ** *** ****** *** ** the ******. *** **** ******** ***** *** ******* (***** ** think ** *************** ****** *** **** ****-********* **** **** *** still ****** *** **** *********** **********).
  • '****** *** *********' - *******: ********* *** ******. **'* **** ** ******* * ****** ****** *** *** of ***** *********. ******* **** *** ****? ** ***** *** difficult *** **** ** **** ** **** ******** ******* ********** massive **********.
  • '********* ***** ** *** ******'- ********: ******, *******, ************ (*** those *** **** *** ***** *********). *** ********* *** **** of *** *********** *** ******** ********* ** **** **** ****** become ***** ****** ** ****** **-**** *** ********* ** **** will **** ** ******* **-****** ** ******* **** ******** *********. Perhaps **** *** *** ** ***** *** ******** **** ********.

'*******' - **** *** ********* *** **** ****** ** *******?

*****, ** ***** * ********** ** ********* *** *******:

  • ******* ***** *** *** ********* ********* ** ***** ***** *** sold ****** *** *** ******. ** ******* **** *** ********* like **** (** ********* ******) ***** *** ******, ****** *** dominate *** ****, **** *** **** **** ** *** ***** parts ** *** ***** ******** ******. **** **** **** ******, at *** **** *** *** *** ******** ** ***** **** sales ****.
  • ******** ******** ***** *** *** ****** ** *** ****** - broad ******** ********, ***** ********, **** ** ***** ** ***** provides *** ****** *** *********** ********* *** * *** *********. Since ********* ** ******* *** ****** ** ******* *** ***** and ********** ***** ******** *********, ** ***** **** **** **** likely ******** ***** ***** ** *** ***-****** ** * ***** to *** ****** ***********.
  • ******** ********** *************** **** *** **** ** ***** **** ******* the ******* *** * ******* - * *** **** ****** technological ********* **** ****** *** ****** *** ***** ***** ***********. We ******* ********* **** ******* *** ***** **** **** ******* demonstrated *** ********** ** ********** ****** ** **** ******** ************ have *** **** ****.
  • ******* ********* ** *******, *******, *******, ********, ********* - ****** but *** *** **** ******** *** ******** ******** ** ******* solutions **** ****** ********** **** *** ***** *****. ** **** segment, ** ******* *** ****** ********** (**** ** **** *** Verint) **** *** ******** ****** *** *******, ******** ** *****, risk ****** ************* *** **** ******, ********** ******* ******* *** not *** **** ******** ************.
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