VSaaS Startup Pivots to Camera API Provider Evercam

By John Honovich, Published Jul 24, 2014, 12:00am EDT (Info+)

This is a fascinating case study of how a VSaaS startup recognized the flaws in that market and are using their experience to build a hosted API camera API service called Evercam.

In this note, we examine what they learned providing VSaaS and what they are trying to do now with their API service.

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Comments (4)

While I think Evercam may find some success with this new route, I suspect that there will be high support costs here as well. Attempts to be a "hardware abstraction layer" for disparate devices means that their development and support costs will be a function of the number of difference devices supported. Their revenue-per-employee will be limited, and to grow revenue they will have to keep adding bodies linerally. There will be unhappy employees who won't get the plum projects, because they are are too busy with code for cameras from XYZ corp that maybe 5 customers use. Eventually they will leave and management is screwed because no one else knows how to support XYZ cameras, so they re-task someone else from a cooler project, "temporarily", and then he gets pissed as well. I wish them the best in this endevour.

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This comes down to how long it takes to add integration to new cameras and how often those integration break / change.

Since they are doing a very narrow subset of camera functions (basically logging in / getting images), I think this won't be a huge problem.

I am curious to see how they get customers. While monetizing APIs generally is certainly viable, doing so for something as niche and novel as cameras will take work and ingenuity.

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It kind of makes me wonder about a lot of VC-backed startups. So many "ideas" pitched by a smooth-talking guy with buttoned-down shirt, wireless mic, big-screen, and a panel of judges who not knowing the industry, A) think the idea is more new and novel than it really is, and B) misjudge the entrenched competition. I wish them the best.

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They should make the API open source and see if development spikes. If it does they will alleviate themselves form development costs and then they could find ways to make revenues around that model.

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