VSaaS Usage Statistics 2016 - Still A Long Way From "The Next Big Thing"

Author: Brian Karas, Published 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 answered:

"Do you offer / sell VSaaS (managed or hosted video)? Why or why not?"

Not only did they tell us if they were selling VSaaS but the key reasons driving the decision.

***** ****** #* ** ******* *** ***** ****, *** *** ********** ****** ******* **** ******* ***** ** far **** *** *******.

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

"** *** ***** / **** ***** (******* ** ****** *****)? Why ** *** ***?"

*** **** *** **** **** ** ** **** **** ******* VSaaS *** *** *** ******* ******* *** ********.

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

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

*** ******** ********* **** ***** ******* "***" *** * **** enthusiastic "*********".

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

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

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

2011 **********

***** *** *** **** *********** ******** ** ********** ******** ****** over *** **** * *****. *** ***** ** *********** *******/*** selling ***** ***** **.******* ****** *********. *********** ****** *** **** ******* ******** - bandwidth, ****, *** ******** *** ***** ******* ***** ****.

*********

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

  • "**. **** ** *** ********* ***'* **** *** ********* ********* and/or ***** ** **********'* ******** ****** ******** ******."
  • "**. ******* *****: *. **** *. **** ** ********* ** almost ***** ******** ********."
  • "**. *** ********* *** ********* *** ******* *** ************* ****** internet ******** **** ***** **** **** *** ****** ******."
  • "**, ** **** ******** ***** ** *** ******* *** ********* needed *** ***** ********* ****** ***** ***."
  • "**, ** ******* ****** ***** ** *** ****** *** **** resolution ***** **** **** *..* ****"

** **** ***** *** ********* *** ***** ** ************ *** customers. ** *******, *** *** ****** *** ************ ****** (***:********* ***** *** ***** ********************** ***** ********** ****). **** ** ********** ****** ********* ****** **** *********** ****.

********* ****** **** **** ********, *** **** ****** **** **** increasing, ****** ***** *********** **** ****** ** ****** *******. * bigger **** ** ***** *** ** *** ********* ******* **********.***, ***** ************ *** **** ****** *** ****** ** ********* the ******* *******, *********** ********** *** ********* ** **** *** barriers.

****

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

  • "**. * ***'* **** ** **** ********* ** **** *****. With *** ***** ** ******* & ******* ****** **** ** is **** ********** ** **** * ****** * ******. **** control & ******** ** *** ****** **** *** *********"
  • "** ** ** ***. **** ** *** ********* ** *** want ** *** * *******/****** ***, ** **** ***** ****** to ******** ***** *** ******** *** ***** ***** *******. "
  • "*** ***, **** *** ******* ** *** ***** ** *** high."
  • "**** *** ********* *** ******* ** *** *** ******* **** (we ***** ******* ******* *** *******) **** ********* **-**** **** itself **** ****** * ****/**** *** * **** ***** ** cost ** *****."
  • "**. ** *** ****** ** *** ********* ** **** ******* Stratocast, *** ** ****** ***** ** **** *** ************. *** one **** ** ******* ** *********** ** **** **, ** ended ** ********* *** ******."

*** **** ** **-**** ************ ******* ******* ************* **** ********* than ****** *** *****, ********** ***** *** ******* ********* ***** offers. **** * * **** ******, ** * ****** ***** may **** $*,***+ ($** *** ***** *** ******, ** **** storage) ***** ** *** **** **** ********** ******** ********* ****** available.

***** ******* *** ********* ********* ******* *** *********** ** **-**** recorder **** *** *** ********* ** ******* *** ***** ** that ******** ** *** ****** **** *** ********* ****** ****** of ********.

******

** ** **** **** ** **** ********* **** **** ********* are *** **** ****** ***, ** **** *****, *** ****** of. ****** *** "**" ********* **** **** ********** **** ********* are *** *********** **** ****** ***** ***** **** *******.

  • "******* ********* **** ********* ******** ***** ******* ********* **** ** the *****."
  • "**. ** *** ********** ** ****, *** *** *** ******** base **** ****** ***'* *********. ** **** ********* ***** ****** and ******* ****, **** *'* **** ** **** **** ******* into ***** **** ** *** ** *** ********."
  • "** ****** ** **** ******"
  • "** **** ***** ******* ***** ******** ** *** ****, **** no **** *******. ***** ***** ***** ** ** * ****** from *** ******* ** ** *** ********* ** *** ******** considering ** **** ****."
  • "** *** ** **** ****. **** ********* ****** ** **** servers/storage ** ****."
  • "**. **** ** *** ******* *** ******** ******* **** *** allow **."
  • "**. ****** ******** * *******, ** **** ** *** ******* and *********. ** **** **** ********* **** ******** ** **** from ***** ******. ********* *** *** ****** ** **** *********** has ********* ******** **** **** * *******, ********* ********."

Managed ***** ***** ***** ** *******

******* ** *** ***** **** *** ****** ** ** ******* widespread ********, *** ***** **** **** ******** **** ********* ******* video *** ** * ****** ********. ** ******* ******** *** arrangement ** ********* *** ******** ** **-****, *** *** ********** can ******* ****** ********** ** ****** ******, ******* ******** *** do ***** *************** ***********.

  • "*** ******* ***** ** *** *** ** *** ********** ** the ********* **** ** ******** *******. ****** ** ********** ******** due ** ********* ***********."
  • "*** ******* - ********* ****** *** ** **** **** ** for ***** ***** ** ****. ****** *** ******* **********. ******* into ****** - ****** * ****** *** *** ******."
  • "*******, ***. ******, **. ** **** *** ********** *** ******** wants, ****** ***** *** **** *** **** ** * **** hog ** *** ****."
  • "*** ******* ** **** *** ***** *** ***** ** ******* hosted *****. ******* ***** ** *** ***** **** ** ********* we *** ******* **, **** **** ******* ****** *******, ** would ******** *** ****** *** ******** *****/*********** *** *** ********."

Small ******* *** ********** ******* **** **** *******

******** ******* *** ***** *** ********* ***** ** **** **** examples. **** ***** ******* ** ****** ******* ****** ** ** the **** ****** ******** **** ******** *******. ***** ***** *** be ********** ********** ***** ***********, ** ** ******** ** ********** could ******* * ********** ******** ************* ** **** *******.

  • "**** ******, ****** ***** *********"
  • "***, *** ******. ********* ** *** **** ****** ********* ** storage *** ****** ** *****"
  • "**** ******. ** **** ****** **** ******* ********** ******* *** it *** *** **** *******. ***** ******* *** ***** ***** 1-4 *******."
  • "***. ********* ** *** ******* ***** ** **** *****. ***** sites **** *-* ******* *** **** ** **** ** *** so ***."
  • "***! ****** ***** ** ****** *** & *** ***** *** the *********** ** **** *** ****** ** *** ****, ** remotely ***** ** *** ** *** ***** ************** ******** **** at *** ****, ** ****, *** ***** *** ****."

Non-Storage ***** *****

*********** **** ***, ** *** **** ********* ** * ***** group ** *** "***" *****: "***. *. ***. *. **** we ** ****** *****, ** *** *** ********, ** ** have ******* ******* **** *** *******".

*** ******* ** ********** ****** ***** *****-***** *** *** **** viability *****:

  • "***. * ** *** ***** ***, ** ***** *** *** technical ******* *****. ***** ***** ************ ** **** **** ****, having *** ******* ** ****** ***** ****** *** *** ****** know *****'* ******** * *****-** ** ******** ** ****. ****** dispatch ***** *** ******* ************* **** ***** ************. ***** ****** also **** ** ****** ************ **** *** ******* ******** ** it **** **** ******** ** *** ***** **** ** **** forwarding, **** ************ ** ******** **** ****."

***** *** ***** *** ** * **** *********** *** ** NVR, ** *** ** ********* ** ****** ****** ********** ** video *******. ** **** ***** ** ** ****** ** **** the ***** *********** ** ******* **** **** *** ** ** alternative ** * **** ***** ** $**/**, **** ** *********** to * $*** ***.

Comments (11)

Nice update!

The ratio of integrators selling/not selling VSaaS today vs. 2011 was almost identical.

Maybe because falling bandwidth costs have been met with increasing resolutions and frame rates?

A couple years ago Dropcam was making a push to sign up dealers, I take it there is no sign of that amounting to anything?

The Dropcam/Nestcam thing is a little hard to read after the Google acquisition. I've seen Nest at a few industry shows, including ESX, but not 100% sure what their channel strategy is. From their website it looks like they're more interested in building a network of installers vs. doing a more direct RMR-sharing reseller channel.

IMO, Google/Nest seem to be targeting DIYers, but that space is getting crowded quickly Ezviz, Y-cam, and lots of others. On the higher end, Nestcams may not even meet the needs of the most simple commercial user (convenience store, bar, deli, etc.).

If anyone has hard data about Nestcam, particularly as a dealer/reseller, I'd be curious to hear details.

Maybe because falling bandwidth costs have been met with increasing resolutions and frame rates?

No I think because here in the US at least the last mile still tends to be copper and rates are still high for any significant bandwidth. Certainly too high for the type of bandwidth required for hosted video.

Most of our (retail) customers are on DSL or T1 class service from a phone company. Larger customers are using MPLS but bit rates are still generally low at the actual locations. Some have cable (fiber or coax) but those are rare.

Thing is how many commercial businesses see moving large amounts of data around the world as part of their core business and thus worth the cost of greater bandwidth? While the last mile is still copper, and until bandwidth is cheap and plentiful, commercial businesses will go with the cheapest service they can get away with. The value prop of moving the data off site "just because" isn't strong enough to justify any additional cost to that particular part of their infrastructure.

While the last mile is still copper, and until bandwidth is cheap and plentiful, commercial businesses will go with the cheapest service they can get away with.

Yes, telcos have been and are still expensive for WAN services. But why don't more businesses utilize broadband services since:

$50/month = 25 Mbps = 8 cameras

Is that too expensive?

$50/month = 25 Mbps = 8 cameras

What region is that? Around here (Boston), the price is twice that:

$100/mo. just for the bandwidth, then you'd have storage costs as well (see my examples above). But even if the storage was free, the breakeven on $100/mo vs. a $1000 NVR is 10 months. Not very attractive, IMO, unless there is some other extreme upside.

Also, my experience with business broadband is that it isn't reliable enough in throughput or even just daily availability to be truly viable for a VSaaS backbone.

Actually, based on Brian's area, if you achieved and used all available upload speed you would have 10Mbps upload.

That is the bottleneck.

Southern California. Don't know why the big difference.

Storage costs are retention dependent. Yes, overall it still might be more expensive than buying a Hikua NVR, though outsourced services often are.

Agreed that reliability is the biggest concern, connection uptimes around here are at about 99.0%, not great, but probably not much different than owning your own (cheap) hardware.

Steve is right about frame relay and MPLS, they are somewhere around 10x the price on a Mbps basis. Reliability is around 99.999%, which is something you need if your business depends on the WAN to operate. But video availibility may not need the same sigma...

I used to think that no one would pay a monthly fee for VSaaS until I spoke with a customer who put six Dropcams in his business. As absurd as that sounds to trust something like that, he caught a few bad employees and loves the system. He pays $1,200 for the service. After I had left his business that day, I knew we had to come up with a solution that offered a little local storage and cloud recording during alarm events (think of smash and grab NVR's). About a year ago our manufacturer started offering video user verification and central station video verification. At the time, I made the recommendation to include a local storage/display option (helps to solve bottlenecking issues). They released the product last week, I've had it running in my home with no issues. To me, it's a no-brainer to offer a solution like this and collect the RMR.

Cost/Bandwidth is always an issue. We integrate out of the Atlanta area and do full hosting for systems of usually 8 or less cameras. We also don't do 2MP cameras at 15fps......we want the user to be able to see his/her video from a mobile device without waiting forever on a huge file. It's cost vs benefit. Outside of a truck ramming through your pool gate, getting above 5fps doesn't do them a lot of good identifying visitors. I also don't need to see the pimples on the face of a lobby visitor.

Those that have more cameras we do a managed server with same software, and then dual record some key cameras offsite at a low resolution as a backup. We've had more than a couple auto stores have a DVR stolen and that's why they've come out way.

The benefits we sell are: no data stored onsite for theft, we handle all the updates and maintenance, when new phones/browsers come out we'll support them (unlike most dvr installs that STILL don't work on firefox or safari). Many like that they can be hands off. I pay a lawn service to handle it, why not video surveillance?

But it is still a limited business but one that can be good for some. We probably host ~500 cameras and have managed servers on another 1000 so it's good recurring income for a 5 person company. Most of them are between $8 and $20 a month per camera.

The voice of experience!

I'm about to dive into this VSaas world. It would be helpful to see your recent experience. I'm 530 575 0299.

Thanks.

Cost of internet is 100% political and has no relation to technological advancements, or capability. Except in the extreme extreme remote locations. In cities and suburbia its all FCC politics that bar ISP's from offering competing services in regions.

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

Favorite Request-to-Exit (RTE) Manufacturers 2018 on Sep 19, 2018
Request To Exit devices like motion sensors and lock releasing push-buttons are a part of almost every access install, but who makes the equipment...
IP Camera Cable Labeling Guide on Sep 14, 2018
Labeling cables can save a lot of money and headaches. While it is easy to overlook, taking time to label runs during installation significantly...
Favorite Intercom Manufacturers 2018 on Sep 14, 2018
Intercoms are certainly increasing in popularity, driven by the integration of video and IP networking. But who is the favorite? On the one side,...
October 2018 Camera Course on Sep 13, 2018
Today is the last day to save $50 on the October 2018 Camera Course, register now. This is the only independent surveillance camera course,...
VMS Export Shootout - Avigilon, Dahua, Exacq, Genetec, Hikvision, Milestone on Sep 13, 2018
When crimes, accidents or problems occur, exporting video from one's video surveillance system is critical to proving incidents. But who does it...
Door Fundamentals For Access Control Guide on Sep 12, 2018
Assuming every door can be secured with either a maglock or an electric strike can be a painful assumption in the field. While those items can be...
Stanley Security Acquires 3xLogic, Kushner Becomes Product President on Sep 10, 2018
Stanley Security acquired 3xLogic a few months ago. However, the company has still not officially publicly announced it, leading many to wonder...
IP Camera Cable Termination Guide on Sep 06, 2018
Terminating cables properly is critical to network performance, but it can be a tricky task with multiple steps. Fortunately, this task is easy to...
Dell Launches IoT for Surveillance on Sep 05, 2018
Historically, Dell has been a PC and server provider (e.g., "Dude, you're getting a Dell") and widely used for surveillance storage. However, in...
Directory Of 110+ Video Management Software (VMS) Suppliers on Aug 30, 2018
This directory provides a list of Video Management Software providers to help you see and research what options are available. Listing...

Most Recent Industry Reports

Alexa Guard Expands Amazon's Security Offerings, Boosts ADT's Stock on Sep 21, 2018
Amazon is expanding their security offerings yet again, this time with Alexa Guard that delivers security audio analytics and a virtual "Fake...
UTC, Owner of Lenel, Acquires S2 on Sep 20, 2018
UTC now owns two of the biggest access control providers, one of integrator's most hated access control platforms, Lenel, and one of their...
BluePoint Aims To Bring Life-Safety Mind-Set To Police Pull Stations on Sep 20, 2018
Fire alarm pull stations are commonplace but police ones are not. A self-funded startup, BluePoint Alert Solutions is aiming to make police pull...
SIA Plays Dumb On OEMs And Hikua Ban on Sep 20, 2018
OEMs widely pretend to be 'manufacturers', deceiving their customers and putting them at risk for cybersecurity attacks and, soon, violation of US...
Axis Vs. Hikvision IR PTZ Shootout on Sep 20, 2018
Hikvision has their high-end dual-sensor DarkfighterX. Axis has their high-end concealed IR Q6125-LE. Which is better? We bought both and tested...
Avigilon Announces AI-Powered H5 Camera Development on Sep 19, 2018
Avigilon will be showcasing "next-generation AI" at next week's ASIS GSX. In an atypical move, the company is not actually releasing these...
Favorite Request-to-Exit (RTE) Manufacturers 2018 on Sep 19, 2018
Request To Exit devices like motion sensors and lock releasing push-buttons are a part of almost every access install, but who makes the equipment...
25% China Tariffs Finalized For 2019, 10% Start Now, Includes Select Video Surveillance on Sep 18, 2018
A surprise move: In July, when the most recent tariff round was first announced, the tariffs were only scheduled for 10%. However, now, the US...
Central Stations Face Off Against NFPA On Fire Monitoring on Sep 18, 2018
Central stations are facing off against the NFPA over what they call anti-competitive language in NFPA 72, the standard that covers fire alarms....
Hikvision USA Starts Layoffs on Sep 18, 2018
Hikvision USA has started layoffs, just weeks after the US government ban was passed into law. Inside this note, we examine: The important...

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