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INSIGHTS

Analog cameras remain resilient

Analog cameras remain resilient
According to a Memoori Business Intelligence article, just about every angle on the battle between analog and network cameras must now have been covered. Strange then that every time someone proclaims the death of analog, up pops another reason to protect and extend its life. It just doesn't want to lie down and die.

According to a Memoori Business Intelligence article, just about every angle on the battle between analog and network cameras must now have been covered. Strange then that every time someone proclaims the death of analog, up pops another reason to protect and extend its life. It just doesn't want to lie down and die.

In a recent IPVM investigation the number one cited problem in going to IP cameras (gained from interviews with over 100 integrators in the US), was an emphatic “Price Price Price”. It seems that as fast as IP prices fall, analog prices falls faster. Whilst it is important to continue the drive to reduce manufacturing costs this will not win the battle. The strong growing penetration by IP into the analog market will continue to erode its traditional market.

Analog may have enjoyed a respite, as many heritage estates have held back going to IP because of the poor economic trading conditions in the west and analog systems have seen significant growth in the consumer market. But if you want to see where the profit is being made look to the IP manufacturers. Those realizing poor growth and profitability are the analog manufacturers in the developed markets of the world.

We no longer see any arguments extolling the virtues of analog over IP cameras, unlike a few years ago, there is now no doubt that it is ‘better' than analog because it provides the full solution needed by a surveillance system. Higher pixel counts, panoramic imaging, edge recording, far improved low light performance, the wealth of form factors and manufacturers to choose from all make IP cameras the clear choice for high end surveillance and now the medium sector.

However the benefits of IP have to be sold right throughout the distribution chain down to the end-user. If that chain breaks at any point then the message that IP offers additional benefits will not be heard. The dealers and distributors that are essentially “box shifters” will see the first time cost as critical and will promote such products.

IP systems need to be sold on solution capability and not price. The reasons for this are clearly laid out in the article "Security Systems in the Channel: What will Tomorrow's Distribution Model Look Like.”

The new reality here is that it is time to start focusing on ‘services' and ‘data', not on hardware costs. It's no longer about how clear the picture is, that's taken for granted, but about the data and information in that picture, and how to share this information with the right people.

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