VSaaS Usage Statistics 2011

Author: Ethan Ace, Published on Dec 27, 2011

Video Surveillance as a Service, also known as VSaaS for short, has been a topic of interest in the past year with Axis, along with well known incumbent integrators using Axis's AVHS platform, promoting VSaaS especially hard. In order to find out what integrators are seeing for themselves, we asked the following question of respondents in our Fall 2011 survey:

The Responses

A clear majority of integrators (77%) answered that they were not offering any VSaaS services. This was not surprising, as we have heard little aside from curious inquiries about VSaaS from integrators and end users. The reasons for not deploying VSaaS were varied, but bandwidth restrictions, pricing models, and security concerns were common.

On the other hand, given the relative short time VSaaS has been marketed by large vendors, having 23% offer it is pretty good. Of course, how well it is selling is an equally important point (examined at the end of this note).

Bandwidth Restrictions

VSaaS is often cited as being a prime solution for very small installations, in the 1-4 camera range, which typically fall into the category of small retail. However, many small retail establishments do not have spare upload bandwidth to dedicate to this service, as many still use slower DSL or cable connections. This can lead to decreased performance (resolution, frame rate, and otherwise) or the need to upgrade internet service, neither of which are favorable options.

  • "A good percentage of my commercial client base still have DSL for their internet connection."
  • "Low res due to bandwidth cost to the customer end."
  • "Bandwidth cost in NZ is too high."
  • "Love the idea but we had bandwidth issues when we did a test about 3 years ago. All 3 test customers received letters from their ISPs stating they have excited their monthly bandwidth and service would be terminated."
  • "I live in a region where the network infrastructure (internet service) is expensive and not fast enough. So the customer will pay more to the ISP rather than to our company."

Pricing Concerns

We have previously expressed concerns over the pricing structure of VSaaS offerings. These concerns were echoed by a number of integrator respondents. As we examined a year ago, many VSaaS offerings, at current pricing levels, have questionable ROIs. Exceptions to this concern, such as Alarm.com's video services, have been gaining some ground.

  • "Haven't felt that the price/performance metric was there yet."
  • "Still dont see the viabilty of the business case"
  • "We tried about 2 years ago, but the feedback we received was too expensive. We decided to table the offering until a later date."
  • "Many just don't want to pay the extra cost right now."

Security Concerns

Another concern raised by integrators was the potential security risk of storing a customer's video off-site. Indeed, many end users have cited this concern, as well, preferring to keep video from their premises in-house, where they can guarantee chain of custody, instead of storing it off-site.

  • "Clients prefer in house"
  • "Most customers are sensitive to video recorded at their facilities remaining under their direct control."
  • "Customer fear of data in 'cloud'"
  • "Customers still want their video in their hands. So no on the commercial side. On the residential side we have quoted it for a few clients who wouldn't couldn't afford a DVR with a few analog cameras. Nice option for a pet cam, nothing more at this time."

Limited Acceptance

Among those who said yes to this question (23%), the majority explained that yes, they do offer VSaaS, but it has seen limited acceptance among their customers. A number also expressed issues with positioning and selling the potential benefits of VSaaS vs. traditional systems.

  • "We use it as another tool in the tool box. Limited applications as of this time within our markets."
  • "Just beginning...the jury is still out"
  • "Yes, but have not had more than 2 or 3 customers take advantage of the opportunity."
  • "We have experimented with it - it's not a big seller by any stretch, but that's probably a positioning problem."
  • "Offered yes, sold no. I don't believe our sales staff was educated in how to sell it properly."

2 reports cite this report:

VSaaS Usage Statistics 2016 - Still A Long Way From "The Next Big Thing" on Mar 14, 2016
VSaaS ranked #2 in the Next Big Thing 2020, but new integrator survey results show current usage is far from its promise. 150 integrators...
Surveillance Statistics Survey Directory Vol 1 on Jan 03, 2012
In this report, we aggregate and present dozens of statistics about how surveillance is being used in the real world. Recently, we conducted an in...
Comments : PRO Members only. Login. or Join.

Related Reports

Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Security System Health Monitoring Usage Statistics 2018 on Oct 09, 2018
How well and quickly do integrators know if devices are offline or broken? New IPVM statistics show that typically no health monitoring is...
IP Camera Installability Shootout - Avigilon, Axis, Bosch, Dahua, Hanwha, Hikvision, Uniview, Vivotek on Oct 08, 2018
What are the best and worst cameras from an installation standpoint? Which manufacturers make it harder or easier to install their cameras? We...
Last Chance - October 2018 Camera Course on Oct 04, 2018
Today is the last day to register for the October 2018 Camera Course, register now. This is the only independent surveillance camera course,...
Axis 4K vs. 5MP Camera Shootout (Q3518-LVE + Q3517-LVE) on Oct 04, 2018
Axis has released the 4K counterpart to their 5MP Q3517-LVE (see our test). Axis claims of both these cameras: Simply put, AXIS Q3518(17)-LVE...
ASIS GSX 2018 Mixed Manufacturer Reviews With Declining Overall Attendance on Oct 02, 2018
ASIS GSX 2018 show drew 9% fewer total registrants, however, it gained 15% more paid registrations, according to ASIS. In this note, we look...
Network Cable Testing Guide on Oct 02, 2018
Proper cable installation is key to trouble-free surveillance systems. However, testing is often an afterthought, with problems only discovered...
Favorite Power Supply Manufacturer 2018 on Sep 28, 2018
While power supplies are becoming less important as PoE matures, they remain vital to access control systems, where increased power for locks,...

Most Recent Industry Reports

Best Alternatives to Banned Dahua and Hikvision on Oct 17, 2018
With the US government ban and a growing number of users banning Dahua and Hikvision, one key question is what to use for low cost? While Dahua and...
Video Quality / Compression Tutorial on Oct 17, 2018
While CODECs, like H.264, H.265, and MJPEG, get a lot of attention, a camera's 'quality' or compression setting has a big impact on overall...
Knightscope Winning Investors, Struggling With Growth on Oct 16, 2018
While Knightscope's new financials show the company only winning 11 new customers in the past 12 months, the company continues to win new...
Integrator Laptop Guide on Oct 16, 2018
This 18-page guide provides guidance and statistics about integrator laptop use. 150 integrators explained to IPVM in detail about their laptops,...
Huawei Admits AI "Bubble" on Oct 16, 2018
A fascinating article from the Chinese government's Global Times: Huawei’s AI ambition to reshape industries. While the Global Times talks about...
ADI's Financials Revealed + W-Box Growth Priority on Oct 15, 2018
  ADI is one of the most powerful distributors in the security industry but how big are they? How much profit do they make? How much do they sell...
Dahua Face Recognition Camera Tested on Oct 15, 2018
Dahua has been one of the industry's most vocal proponents of the value that AI creates: As part of this, Dahua has released a facial...
Amazon Touts Home Security Market Disruption on Oct 15, 2018
Amazon is coming for ADT and all of home security. Indeed, Amazon is advertising this as, in their own words, calling home security a: Inside...
Higher Power PoE 802.3bt Ratified, Impact on Security Products Examined on Oct 12, 2018
Power over Ethernet has become one of the most popular features of many video, access, and other security products. See our PoE for IP Video...
"New Zealand Govt Uses Chinese Cameras Banned In US", Considers Security Audit on Oct 12, 2018
Newsroom NZ has issued a report: "NZ Govt uses Chinese cameras banned in US": This comes after the US federal government banned purchases of...

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