Worst Advice Ever

Author: John Honovich, Published on Apr 09, 2012

"Don't count analog video out yet" is the worst advice ever. Integrators who want to bankrupt themselves should jump on this immediately. Unfortunately, though, a US trade magazine has recently promoted this

Maybe if you are in a developing country this is good advice but in the US, it is a recipe for disaster. As we explained last year, the market has already tipped to IP cameras.

Like a video rental store, integrators can hang on to the stragglers and the poor but the market for new systems has clearly tipped to IP.

"Barriers to IP"

Here are some barriers the trade mag lists and our thoughts:

  • Dealers don't want to "deal with networking issues". Too bad for the dinosaurs. Networking talent is widely available now. If those dealers refuse to evolve, their competitors will eat their lunch. We examined this point in the Tri-Ed terrible advice post.
  • PTZ Latency: Survey results show PTZs are a small and declining part of the market. Plus, latency is an issue with today's digitized analog systems as well.
  • Coaxial Cable Still in Place: Our survey results show most integrators replace anyway for a variety of reasons. Plus, Intersil's entrance into the market in the last year has driven a radical drop in coaxial adapter pricing (see our reviews on Sony IP coax cameras and Altronix's converters).
  • Cheaper for Small Systems: The best defense for analog. Unfortunately, this means significantly worse video quality than having an IP / MP system. By the way, as we recently reviewed, watch out for Ubiquiti's super inexpensive HD IP cameras which are rapidly cutting into this last holdout.
  • Analog Prices Dropping Faster than IP: What's really happening is that the analog market has shifted from $250 professional CCTV cameras to $50 simple cameras. Users wanting high quality cameras have mostly shifted to IP because of better quality and richer featuresets. Those remaining are primarily driven by super low pricing.
  • "In a lot of environments", SD "gives the video quality you need": And yet the repeated criticisms of video surveillance quality being terrible shows that this is not the case. Any SD camera FoV more than 5 or 6 feet is going to have difficulty capturing important details but almost all cameras have 10 foot or wider FoVs. Plus, newer MP cameras are making 'beautiful' video commonplace.

Market Share

The strangest claim made in the trade mag article is that "analog is holding on to marketshare'. I literally know no professional analysts or investors who believe that. The growth in video surveillance is in IP cameras. The top growing companies overall are IP ones - Axis, Avigilon, Vivotek, etc. Plus, the big CCTV incumbents are desperately trying to hold their ground by increasing IP camera sales to drop steep declines on the analog side.

The most misleading part is munging numbers from China and the developing word with local markets. For US and Western European audiences (who are the overwhelming readers of security sites), what really counts is what is happening in their home markets. And in those areas (save the UK), the shift is very strong to IP cameras. China might be a bubble or a great boom but to an integrator or end user in Chicago, it does not matter at all.

Where to Go

The trade mag concludes, "the old lion is still here, roaring just a bit less loudly." Those are some amazingly rose colored glasses. Analog is much closer to an endangered species getting closer and closer to extinction each year.

Market segments in decline are terrible places for businesses as growth can only come from truly extraordinary efforts. For most, it is like being dragged down by a boat anchor.

Using analog, much like buying DVDs, does not make one a bad person. It is just that the technology has simply been surpassed. Do not confuse the transition cycle to a new technology with a last gap comeback for a dying one.

UPDATE: After this critique, now that US trade magazine has changed its position on analog, equivocating, "While [analog] will certainly be surpassed by IP video, is surprisingly still being used by some installers and end users"

UPDATE 2016: Analog is back, not the SD analog SIW trumpeted but a newer HD version.

Comments : PRO Members only. Login. or Join.

Related Reports

Burglar Alarm Zoning Guide on Apr 28, 2017
The function of an alarm panel is to gather information from sensors and respond to this information by triggering actions. While it is possible to...
Hikvision EZVIZ Amazon Scam Revealed on Apr 26, 2017
Hikvision is violating US Federal Trade Commission guidelines and Amazon rules with a "Honest" Review Program scheme that provides gift cards to...
Anixter CEO Admits Price Deflation and Non-Exclusive Integrator Sales on Apr 26, 2017
Anixter's CEO has admitted to (1) price deflation impacting IP camera sales and (2) not always being 'exclusive' with security integrators. In...
Beware The "Hit List" Ranking on Apr 21, 2017
The hit list. Kirschenbaum's recent newsletter complained about a 'hit list', bemoaning how a company took aim at ADT. Alas, that's the Google...
Dell EMC Surveillance Division Profile on Apr 20, 2017
With revenue growth from traditional IT customers slowing, Dell has set a focus on the security industry as a market where the company can offer...
Top Selling Video Surveillance Distributors on Apr 17, 2017
These are the top selling video surveillance distributors in North America, as reported by 150 integrator survey respondents. In this report, we...
A New Low For Knightscope - Just $3! on Apr 13, 2017
Take a look: Did you think, even for a fraction of a second, "$3 per share, could be a good deal"? If so, you should not invest in anything....
Hide or Show Models on Quotes - Integrator Statistics on Apr 13, 2017
Customers like to know what they are buying, but they might use an integrator's detailed quote to shop the system designed. This is a challenge...
PSA Distributor Favorability Results on Apr 11, 2017
To most integrators, PSA is is a vague unknown entity but to some, PSA is exactly what a distributor should be.  In this report we provide an...
The Sleaziest Booth Of ISC West - Rapid Response on Apr 10, 2017
The use of 'booth babes' is way down overall, but one company, Rapid Response, continues to treat ISC West like it is an HBO brothel documentary...

Most Recent Industry Reports

Instant Cloud For Hikvision - Manything on Apr 28, 2017
One ISC West exhibitor had a very specific and clear pitch - cloud for Hikvision: In this note, we examine their offering, key differentiators,...
Milestone GPU Enhanced VMD Tested on Apr 28, 2017
In their 2017 XProtect release, Milestone announced support for hardware accelerated video motion detection, touting a 2X increase in server...
Burglar Alarm Zoning Guide on Apr 28, 2017
The function of an alarm panel is to gather information from sensors and respond to this information by triggering actions. While it is possible to...
Avigilon Discontinuing Rialto Analytics Line on Apr 27, 2017
Avigilon is informing dealers/partners that the legacy VideoIQ Rialto products have been discontinued, recommending the newer ACC ES Analytics...
A Marketing Home Run For Knightscope - Man Attacks Robot on Apr 27, 2017
We criticize Knightscope regularly - their lack of revenue, their trying to fool mom 'n pop investors, their associating themselves with a clueless...
The World's First Fashion IP Camera From Amazon on Apr 27, 2017
Some analytics cameras can tell you if a person is jumping a fence, or loitering in a secure area, but none of them can tell you if the person...
Last Day - IP Networking Course May 2017 on Apr 26, 2017
Today is the last day to register for the May IP Networking Course. This is the only networking course designed specifically for video...
Hikvision EZVIZ Amazon Scam Revealed on Apr 26, 2017
Hikvision is violating US Federal Trade Commission guidelines and Amazon rules with a "Honest" Review Program scheme that provides gift cards to...
Anixter CEO Admits Price Deflation and Non-Exclusive Integrator Sales on Apr 26, 2017
Anixter's CEO has admitted to (1) price deflation impacting IP camera sales and (2) not always being 'exclusive' with security integrators. In...
Xandem Next Gen Intrusion Tested on Apr 26, 2017
Xandem's "full coverage motion tracking technology" is unlike any intrusion technology we have seen. We bought their new system and tested it...

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