Will Emerging Manufacturers Choose Not to Use Integrators?

By: John Honovich, Published on Feb 20, 2010

We see new video surveillance manufacturers choose business models that eliminate the need for the traditional channel. We think this will become a major issue /trend in the industry over the next 5 years. Indeed, in our direct conversations with these new manufacturers, it's clear that they are open and cognizant of the competitive advantages.

Traditional manufacturers not only embrace integrators but need them. It would be practically impossible for VMS providers like Genetec, Milestone, OnSSI, DVTel, etc. to deploy solutions without integrators. The systems are simply too complex and require too much on-site configuration and optimization for these manufacturers to go without these services or to do it themselves.

By contrast, managed/hosted providers who provide 'plug n play' networking of on-site devices with core management functionalities housed in data centers do not require anywhere near the same level of expertise. Envysion's recent win of a 400+ site deployment [link no longer available] is a case in point. They note:

"This win is significant in that it involved absolutely zero contribution from anyone in the traditional video security or systems integrator worlds. . . . We worked directly with a forward thinking customer to understand their requirements and help them implement a service that drives material value for them that happens to use video cameras.  We are managing the entire implementation working with a good partner of ours that does traditional telecom installation services."

We see this as part of a growing trend. Managed/hosted providers can lower costs to end users, increase their margins and still deliver a functional solution because of the installation ease that managed/hosted provides.

While detractors will point that a small number of manufacturers sold direct or without integrators for some deals for years. However, the key difference is that traditional manufacturers could not scale their business by selling direct (because it required the rare end user who was very technically strong or the use of the manufacturer's own SEs). By contrast, this practice can scale for managed/hosted providers because the on-site technical complexity is much less.

Comments : Members only. Login. or Join.

Related Reports

Phone Camera Calculator Released on Mar 10, 2020
IPVM has released the first-ever Phone Calculator, video surveillance design software that you can use on your phone, without installing an...
Every VMS Will Become a VSaaS on Feb 21, 2020
VMS is ending. Soon every VMS will be a VSaaS. Competitive dynamics will be redrawn. What does this mean? VMS Historically...
Video Surveillance 101 Course - Last Chance on Feb 20, 2020
This is the last chance to join IPVM's first Video Surveillance 101 course, designed to help those new to the industry to quickly understand the...
Cisco Video Surveillance Is Dead, Long Live Cisco Meraki Video Surveillance on Feb 11, 2020
A dozen years ago much of the industry thought that Cisco was destined to dominate video surveillance. They stumbled repeatedly, failing. Now it is...
ADT CEO Not Worried About DIY: "2 Discrete Markets" on Dec 13, 2019
ADT's CEO is not worried about DIY, characterizing DIY and ADT's DIFY as "2 discrete markets" at the Imperial Capital Security Investor's...
Giant Tyco Campaigns Against Startup Qumulex on Jul 25, 2019
One is a giant conglomerate that owns the world's largest security integrator. The other has no shipping products. But Tyco is campaigning...
'CCTV' Is the Past, Cloud Video Surveillance Is the Future on Jul 08, 2019
A fundamental shift is happening. For decades, video surveillance was overwhelmingly 'closed' and off the Internet. This is changing. More and more...
Axis Will Not Block Resellers on Jun 10, 2019
While Axis generally has strong favorability amongst integrators, the biggest complaint is their channel model, which results in smaller integrator...
Closed Cloud Cameras Trashed on May 13, 2019
When you buy a camera, do you own it? Not anymore. In the world of closed cloud cameras, you may think you are buying a camera but all you are...
AI Video Tester Released on Apr 02, 2019
IPVM has released the world's first AI video tester that lets you see how various AI models (including from Amazon, Google, Microsoft and YOLO)...

Most Recent Industry Reports

Embedded Logix Thermal Temperature Detection System Examined on Apr 08, 2020
Embedded Logix has been producing thermal temperature measurement systems for industry and fire detection for over 10 years. Now, they are entering...
Micron 1 TB SD Cards Aim To Eliminate NVRs on Apr 08, 2020
Micron has boldly proclaimed their latest 1TB microSD "eliminates the need for network video recorders", targeting the growing market of...
US DoD Declares "Can No Longer Do Business" With Contractors Using Dahua, Hikvision, Huawei on Apr 08, 2020
The US Department of Defense has confirmed to IPVM that they fully support and intend to proceed with the NDAA 'blacklist clause' covering Dahua,...
IPVM's 12th Anniversary - Thank You! on Apr 07, 2020
IPVM is proud to celebrate it's 12 anniversary expanding our commitment to providing the industry independent and objective information on video...
Mobotix Thermal Body Temperature Detection Examined on Apr 07, 2020
Mobotix has jumped into the Coronavirus temperature detection market, but how do they compare to thermal incumbents like FLIR or ICI who have been...
Verkada Coronavirus Response: Free Temp Systems For Government and Health Care on Apr 07, 2020
Verkada has built a reputation on giving away things for free - free Yeti Tumblers, free trial cameras and now free temporary systems for...
Hikvision USA Refuses, Dahua USA Drives Forward With "Coronavirus Cameras" on Apr 07, 2020
Both have been federally banned, both sanctioned for human rights abuses but only one - Dahua - is taking aim at the booming "coronavirus cameras"...
China Surveillance Vulnerabilities Being Used To Attack China, Says China on Apr 07, 2020
While China video surveillance vulnerabilities have been much debated in the West in the past few years, China is now saying those vulnerabilities...
USA ICI Elevated Skin Temperature Detectors Examined on Apr 06, 2020
Infrared Cameras, Inc. (ICI) is aiming to help slow the spread of COVID-19 with "pinpoint accurate skin temperature measurement" using their...
Trade Groups Request NDAA Blacklist Delay Citing Coronavirus on Apr 06, 2020
Two trade groups representing government contractors have asked Congress to delay implementation of the NDAA's 'blacklist' clause from this August...