ManCloud computing is a much discussed topic in the IT world. Over the past 12 months, the video surveillance
industry has started to sit up and take note on what could be a potentially lucrative market.
aged video, hosted video or video surveillance as a service (VSaaS) has many names, but as market analyst William Rhodes comments, “Whatever the name, VSaaS solutions have the potential to become a serious competitor to traditional video surveillance systems. The market is forecast to achieve significant double-digit revenue growth over the coming years.”
ManCloud computing is a much discussed topic in the IT world. Over the past 12 months, the video surveillance
industry has started to sit up and take note on what could be a potentially lucrative market.
Managed video, hosted video or video surveillance as a service (VSaaS) has many names, but as market analyst William Rhodes comments, “Whatever the name, VSaaS solutions have the potential to become a serious competitor to traditional video surveillance systems. The market is forecast to achieve significant double-digit revenue growth over the coming years.”
VSaaS solutions offer cost savings over traditional video surveillance systems. This is most apparent in applications with a large number of sites with a low camera count per site, spread over a large geographic area. Rather than purchasing hundreds, if not thousands, of individual video surveillance systems, VSaaS offers users the ability to manage and view all sites through a simple system with little or no upfront capital investment. Some of the applications where VSaaS solutions are currently being used include cellphone masts, oil rigs and electricity substations.
include cellphone masts, oil rigs and electricity substations. “Traditional, ‘mainstream' users of video surveillance equipment have yet to identify the same benefits as niche users because, for them, the solutions do not offer the same cost savings. The value for traditional, mainstream users will be VSaaS solutions that offer more than just video,” Rhodes said. Successful VSaaS deployments in the past 12 months have offered users a “complete” solution, where the video is integrated with security and nonsecurity applications. Security applications include intrusion detection alarms, electronic physical access control or PoS data. Nonsecurity applications include home energy management integration and personal health monitoring. Rhodes suggests that “VSaaS solutions that integrate with nonvideo applications will be most successful in the future because they offer users a level of functionality beyond that of a video surveillance system.”
But who will provide VSaaS solutions? A wealth of telcos, alarm-monitoring stations, security system integrators and distributors, and dedicated VSaaS providers currently have solutions on the market. IMS Research forecasts alarm-monitoring companies will see some of the greatest traction in the coming years because they have an existing route to market with security-conscious customers. Many telcos have struggled in the past to bring nontelecom services to market because customers often do not associate their provider with these services. However, dedicated VSaaS providers are likely to see significant growth in the coming years, offering tailored solutions for specific applications.
It is an exciting time for the video surveillance industry, with cloud-computing solutions opening up new markets and revenue streams. In the coming years, niche applications and solutions integrated with nonvideo applications are likely to see the greatest growth.