VSaaS Market Size and State 2011

Author: John Honovich, Published on Feb 01, 2011

VSaaS has high hopes, small adoption so far and important questions to consider. In this report, we project, analyze and examine the key issues impacting the VSaaS market.

Let's start with our estimates of the VSaaS market:

  • $50 - $100 Million: Total Global Hosted VSaaS Subscription Revenue 2010
  • 75,000 - 125,000: New Cameras Added to Hosted VSaaS 2010
  • 200,00 - 300,000: Total Cameras Hosted VSaaS 2010
  • 0.1% - 0.5%: New 2010 Surveillance Cameras using Hosted VSaaS

VSaaS Flavors and Entrants

As an early market, VSaaS means many things to different people. Most importantly, how you categorize VSaaS offerings has a BIG impact on the size of the market. Here are 3 commonly cited options:

  • Plug n Play Live Video Access: No video is recorded off-site but users can remotely access their cameras without performing network setup
  • Hosted Video/VSaaS: Video is recorded 'in the cloud' and not on-site (the traditional way).
  • Managed Video/VSaaS: Video is recorded on-site (the traditional way) but plug n play remote access to video is provided.

Note: If you are new to VSaaS, review our VSaaS Training including 60 minutes of video screencasts.

In our analysis, we are focusing on Hosted Video/VSaaS as (1) it is the most significant break from traditional surveillance and (2) it is the 'purest' version of cloud services. This does not mean we believe it is the best or the most likely to succeed. Indeed, we believe managed video is even more compelling for most traditional surveillance users for the foreseeable future.

Dozens of entrants already exist in the VSaaS market. A good approximation is about 25 providers who develop their own solution. However, this can become confusing as many providers allow re-selling / re-branding making it appear that there are hundreds of 'unique' offerings.

Review a directory of over 25 VSaaS providers in our VSaaS Competitive Comparison.

***** *** **** *****, ***** ******** ** *** *** ********* questions ** ********. ** **** ******, ** *******, ******* *** examine *** *** ****** ********* *** ***** ******.

***'* ***** **** *** ********* ** *** ***** ******:

  • $** - $*** *******: ***** ****** ****** ***** ************ ******* 2010
  • **,*** - ***,***: *** ******* ***** ** ****** ***** ****
  • ***,** - ***,***: ***** ******* ****** ***** ****
  • *.*% - *.*%: *** **** ************ ******* ***** ****** *****

VSaaS ******* *** ********

** ** ***** ******, ***** ***** **** ****** ** ********* people. **** ***********, *** *** ********** ***** ********* *** * BIG ****** ** *** **** ** *** ******. **** *** 3 ******** ***** *******:

  • **** * **** **** ***** ******: ** ***** ** ******** off-site *** ***** *** ******** ****** ***** ******* ******* ********** network *****
  • ****** *****/*****: ***** ** ******** '** *** *****' *** *** on-site (*** *********** ***).
  • ******* *****/*****: ***** ** ******** **-**** (*** *********** ***) *** plug * **** ****** ****** ** ***** ** ********.

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

** *** ********, ** *** ******** ** ****** *****/***** ** (1) ** ** *** **** *********** ***** **** *********** ************ and (*) ** ** *** '******' ******* ** ***** ********. This **** *** **** ** ******* ** ** *** **** or *** **** ****** ** *******. ******, ** ******* ******* video ** **** **** ********** *** **** *********** ************ ***** for *** *********** ******.

****** ** ******** ******* ***** ** *** ***** ******. * good ************* ** ***** ** ********* *** ******* ***** *** solution. *******, **** *** ****** ********* ** **** ********* ***** re-selling / **-******** ****** ** ****** **** ***** *** ******** of '******' *********.

****** ********** ** **** ** ***** *********** *** ***** *********** **********.

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

Data ******, ********* *** ******

**** ******* ************* **** ******* ********* ** ****** *****, ** hear * ****** ****** ** ********:

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

*** ***** ****** ** ***** ***** *** ***** **** ******** existed ****** ****, **** ** *** *********** *** ******** ** the **** * *****. ******* ** ****, ** ** **** hard ** *** *** ***** ****** ******** **** * ******* (as * ***** ** *********, **** ** ** ** ******* surveillance ******* *** ****** ** *** *****-****). ** *** ****** VSaaS ****** ******* *** ***,*** ** ********, ** ******* **** would ** **** ***************** ********* ***** ***-*********** ********. **** *****, signals ******** **** ****** ***** ****** ** ****** *** **** offering.

**** ****** ************* **** *** **** ******* ** *** ** $5 *** ** **** ** $** *** ****** *** *****. The ******** ** ****** ** *********** ** ********** (*.*., *** vs ****), ******* **** (********** ** ****** *****) *** ******* duration (* ****, * ****, * *****, ***.) *******.

*** $** - $*** ******* **** ************ ******* ******** ******* from *********** ** ******* ******* ***** (*.*. $** ***) ***** total ****** ** ******* (*.*., ***,***). ** ******, **** ******* on ********** *** **** ***** ** ******** *****. **** ***** providers *** ******* (*.*., **** **** ** ********* ** *******) while ****** **** ****** (*****, *******, **********). ******** *********** **************** **** ******* ******** *** ******* ****** *** ******* *********.

************, *** ***** ****** ** *** ******* **** ********** ****** sales. **** ***** ******* *** ********** ******, ** **********, **** cameras **** ** *** **** ***** ** $** ** $***. Camera ***** ***** ******** *** ******* ****** **** ** ******* $10 ******* (******** $*** ****** ***** *** ***,*** *** ******* sold ** **** *** ****** *****). ***** **** ***** ********* require ** *** ***** ******* (**** ******* ******** ****** **), some ***** ********* ***** *** '****' ************.

**********, ***** **** *** ****** ***** ************ ****** ** ******* $10 ** $** ******* ** ****** *****, ***** ** * very **** ********** ***** (********* ************** ***** *** ******** *******).

What ** ****'* ****?

************ ****'* **** ** ********* ** ****** *****. **** ** not **** * ******* ** ** *******, **** **** **** the **** ********** ********* ** ****** ***** *********. ******, ** you ********** *** *** ******* ****** ** ***** ********, **** would ********* ** *** ****** ******. ** *** ***** ****, the ****** ** **** ***** *** **** ***** **** ******* obstacles. ***** *** ********** ** ***** (*** ******* **** **** *******), **** **** ***** ***** *********/********* ******** ** *** **** more *********** *** ********* *********** ************ ************ (********* ** ** inefficient ****** ******** ******** *****). ** ****, *** ******** ******* relatively ********** *** *********. (**** *********** ** ****'* ***** ******** ******* ****).

Who ** ***** ****** *****?

**** *** *** **** ****** **** ** ****** ***** ** see:

  • *********** *** *** *** ** *** *******
  • ***** ******** *** *** * *** *******
  • *****-**** ********** **** * *** ******* *** ****

**** **** **% ** *** ****** **** ** **** * use *****. ****** ***** *** **** ****** ** **** ** the *********** * ** ** ****** ****** *** ** *** far **** **** ***** * ****** ** *** '**********' ***** surveillance ******.

What *** ****** *****'* ****** *** *********?

******** ********* ************ *** *** ******** **** ** *********** ******* are *** *** **** ********* ****** **** ***** *****. ****** most ***** ********* ***** ********* *********** ** ********** ***** (***** e-mail ** ***), *****'* ********* *********** ** ********** *******, ********* in ************ ******** ********* *** *** **** ** *********** *******. For **** ** *** ***** *** ******, ****** ******** ************ ********.

******** ******* ** ***** ********* ****** ** *** ********* **** price ** ***** ******** ** *********** ************. ** ** ************ in ******** *** ********, **** $**-$** ******* *******, ****** *** *** ***** ***** save ** ******** *********** ************ (*.*., ***/*** ** ***). ******, with***** ***** *** ******** ****** *******, **** ******** **** *** *****.

What's *** ****** *** *****?

**** *** *** ******** ***** *** ***** ***** ** ******** growth, ***** ******** **** **** ****** **** **********. ** ****, it ** **** ** ******** **-**% **** **** *** **** 5 *****.

******* *********, *** **** ***** *********** ** *** ******* - easy ****** ****** ** ************ ***** - ** * ****** desirable ******* ** ****** *** ***** (**** ********** ** *** office ** *** ****** ** ***** ********). ** ****, ** expect ** *** *** ******** ** *** '**** * ****' remote ****** ** ***** ** ****** **** *********** *******.

*** *** **** *********** ********* ******** *** *** ****** ** VSaaS ***:

  1. *** ***** ***** *** ***** **** *** *-** ****** ******?
  2. **** ******* ******* **** ******* ****/***/*** *********?

*** * - ** ****** ****** ** * ***** ************ segment ************ *** ******** ** ************ ***** (****** *** *******). At *****'* ******* * - * ****** *****, ** *** help ****** ************ **** *** **** *** ** **** ****** for ******** *****.

** *** ******* ****, ** *** ****** ***** **** **** appliance *****, ** ***** *** *** ********, ** ***** ****** in * ******** ********** ******* **** ** *** *********** ************* and * *** ****** ** *** ***** ******** ************.

*** ****** ** **** ** ***** *********, *** *** **** 3 - * ***** ** ** *** ** *** ** structural ****/************* ********. ** ****, ** ******* ****** ***** **** remain * *****.

*******, ** ** ******* ******* ***** *** ****** '***** ****' capabilities ** ******** ****, **** *** *** **** ****** ** important ******* *** **********, ****** ***** ** ******** ********* *** hurting *** **** ****** *********.

How **** ***** ****** ***?

***** ***, *** ***** ******* *** ******* ** ***** *** are ** *** ******. **** *** *************** *** ********* ******:

  • Residential / ********: This could be an interesting option, especially if are offered it as a low cost add on to a phone or cable package. However, you can avoid these monthly fees. See ****** * **** ****** *** ****** ***** ********** ******* ***.
  • Small ** ****** ********: Hosted VSaaS is unlikely to be a fit as it's just too much money for your 8 - 16 camera deployments. However, managed VSaaS could be interesting and useful.
  • Enterprise / ********* / **********: VSaaS is so far away meeting your functionality needs that it is not worth considering outside of future trend tracking.
  • Dealers ***** ** ******: I know you are all supposed to pray at the altar of recurring monthly revenue and as such Hosted VSaaS should ** **** ******. ** *** ********* ** *** ****** ****** ** *** professional ****** ** **'* * *** **** *** **** ** your *********.
  • Large ******* ***********: VSaaS does not meet your large customer's needs and has little practical use. However, at this level, testing and being well informed of future developments is important.
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