When analytic startups are gathering more interest, there is a need to understand who wants to buy them and how.
Several factors have sustained demand for security products traditionally. The need for safety and protection has always been important in every industry. But the demand for video analytics stems from an entirely different phenomenon
Amit Phansalkar, CEO of Netra
, explained that to start with, there is simply too much video footage being recorded worldwide, that it is impossible for manual monitoring. Even when it's analytic based monitoring, customers have, until recently, been concerned about the costs.
"The number of cameras installed globally is growing at an exponential rate," Phansalkar explained. "The quality of these cameras is much higher than what they were a year or two ago, and they are all recording continuously."
Besides this, Garett Larson, CEO of Rhombus Systems
, added that the need for remote work solutions is providing additional momentum for us these days. Companies want to keep an eye on all of their facilities without actually needing to be onsite.
Security concerns rising
A need to increase security is another factor driving analytics. Solutions like ANPR, for instance, help customers keep track of vehicles better. When the end-user is the police or government, the efficiency of the service they provide increases. Facial recognition, for instance, despite being a contentious issue, does give authorities the power to verify people with lists of people who may cause trouble. Even simpler algorithms that are meant to detect movement (motion detection) helps in keeping perimeters of an institution or home safe.
Purpose beyond security
Another factor that companies expect to drive demand further is the need to add more value to the security investments that are being made. A people counting solutions, for instance, provides an additional feature without having to install separate sensors or other infrastructure. Heat maps help retailers understand what their customers prefer and can in better customer reach.
Despite their unconventional goals, startups follow rather traditional sales channels. Larson, for instance, said that his company sells 100 percent through the channel, which includes resellers and systems integrators. Phansalkar, too added that they work through distributors and systems integrators.
"We have an API model," Phansalkar explained. "We have a SaaS API that gets integrated into any of the systems. We have to work through SIs and distributors because the analytics is one part of the solution. There are so many other things that need to go with to have a comprehensive end solution. When working with SIs and distributors, they may already have all these components and analytics becomes a piece that gets added on to what they have."
Davista follows a SaaS (software as a service) business model. Their customers and partners can host in their cloud or other separate cloud severs.
"We are helping our partners drive more ARR (annual recurring revenue) into their business," said Scott Sieracki, Chief Sales, and Marketing Officer, Davista
. "Additionally, Davista is currently developing a go-to-market strategy that touches multiple physical and IT security markets. We are very interested in the systems integrators looking to extend there "as a service" business and their software integration business. Additionally, we are partnering with conventional security integrators, the software systems integrator, the IT channel, and companies that are providing an SOC-as-a-service business model to the market."
The demand for video surveillance analytics will continue to rise as algorithms become more and more efficient and affordable. That their usefulness goes beyond security is the icing on the cake
. But the sales channel continues to remain traditional as these startups ultimately aim to augment what is already available in the market.