Despite advantages, cloud adoption in the video surveillance market faces resistance due to perceived costs and network dependency.
As more organizations migrate from on-premises video surveillance systems to cloud-based solutions, small businesses and residential users are weighing the benefits and challenges of the transition. While cloud storage offers scalability, ease of access, and simplified management, questions around cost, reliability, and data security continue to shape adoption decisions.
According to Boudewijn Pesch, Vice President of Japan and Asia Pacific Channel Sales at Verkada, many small businesses remain cautious about the switch.
“Cloud-based video security systems unlock scalability and flexibility for organizations of all kinds,” he said. “But making the transition isn’t always easy, especially for small businesses who are thinking about cost efficiencies and managing limited resources.”
Cloud adoption drivers
Cloud-based video surveillance has grown steadily as organizations look to reduce hardware dependencies and streamline system management. Traditional setups, such as network video recorders (NVRs) and digital video recorders (DVRs), often require substantial upfront investment, periodic maintenance, and physical storage capacity. Cloud systems, in contrast, eliminate the need for bulky recording hardware and enable centralized management across multiple sites.
“The reality is that cloud-based systems are not only more cost-effective and secure but also much easier to manage,” Pesch said. The key appeal lies in the operational efficiency cloud models provide, particularly for small and medium-sized enterprises (SMEs) that lack large IT departments.
Remote accessibility also remains a decisive factor. Cloud solutions allow business owners to monitor live or recorded footage from any location through web or mobile interfaces. This flexibility is especially valuable for multi-site operations such as retail chains, where managers can review incidents or performance metrics in real time.
Addressing cost and bandwidth challenges
Despite these advantages, cloud adoption in the video surveillance market faces resistance due to perceived costs and network dependency. For many small businesses, the fear of high recurring expenses or bandwidth limitations remains a significant deterrent.
Pesch explained that hybrid models are helping to resolve these issues. “Hybrid cloud systems balance the reliability users depend on for critical services like video security and the flexibility they crave like remote access and scalability, by combining onboard camera storage with the cloud,” he said.
Unlike pure cloud solutions that continuously stream data to remote servers, hybrid systems record footage locally while transmitting only event-based clips or metadata to the cloud. This design dramatically reduces bandwidth consumption and avoids interruptions during network outages.
“For small businesses who may still need visibility across dozens of cameras on a single network, this approach reduces strain on bandwidth while ensuring cameras capture everything without interruption,” Pesch said. The hybrid model, therefore, provides a middle ground, combining the dependability of local recording with the convenience of cloud-based monitoring.
Simplifying installation and maintenance
Ease of installation and maintenance is another reason hybrid cloud systems appeal to smaller users and systems integrators. “Beyond reliability and flexibility, hybrid systems are often simpler to use,” Pesch noted. “There’s no need to buy or maintain bulky recorders, firmware updates happen automatically, and cameras can be installed with just a PoE connection.”
For integrators, this translates into shorter deployment times, fewer points of failure, and easier remote troubleshooting. Automated firmware updates also ensure that devices remain up to date with the latest security patches without requiring on-site visits.
End users benefit from predictable costs and scalability. Adding new cameras or expanding storage capacity typically requires minimal configuration changes compared to traditional on-premises systems. You also benefit from remote access, easier scaling, predictable costs without the risk of gaps in coverage.
This simplicity and reliability are particularly relevant in sectors such as retail, education, and hospitality, where staff may lack technical expertise but require dependable surveillance operations.
Data security and privacy assurances
Security and privacy remain top priorities for organizations moving sensitive video data to the cloud. Modern cloud platforms increasingly emphasize compliance with international standards to build trust with users.
“Leading cloud-based systems today offer robust security and privacy controls,” Pesch said. “Many encrypt data both in transit and at rest, ensuring it remains protected whether it’s being sent to the cloud or stored locally on a device.” Encryption prevents unauthorized access, while role-based permissions and audit logs help administrators maintain accountability.
Pesch advised small businesses to prioritize vendors with proven security credentials. “For small businesses evaluating cloud-based systems, looking for independent security assessments and certifications like ISO and SOC can help to determine the best security solution,” he said.
For integrators, these certifications provide valuable validation when recommending or installing systems for clients concerned about compliance and data protection.
Managing reliability and uptime
Reliability is a critical factor in surveillance deployments, particularly in environments where continuous recording is mandatory. Hybrid systems mitigate connectivity risks by storing footage locally on the camera. This ensures video is captured even during temporary internet outages and synchronized with the cloud once connectivity is restored.
Such redundancy supports incident investigation and forensic review without compromising coverage. For businesses operating in remote or low-bandwidth areas, this capability provides the reassurance that no footage will be lost due to network instability.
Additionally, many hybrid systems now include built-in health monitoring and automated alerts, allowing integrators to proactively identify and resolve issues. This level of visibility reduces maintenance overheads and strengthens client confidence in the system’s reliability.
Flexibility for evolving needs
The scalability of cloud-based architectures enables organizations to adapt to changing requirements without significant reconfiguration. Hybrid deployments, in particular, allow users to start small and expand storage or camera coverage over time.
This modular approach aligns with the financial and operational realities of small businesses, where budgets and surveillance needs often grow incrementally. It also supports diverse use cases, from small retail stores and restaurants to mid-sized enterprises with multiple branches.
“Hybrid storage addresses the biggest concerns around cloud video by delivering reliability, lower costs, and ease of use in real-world scenarios where uptime and simplicity matter most,” Pesch said.
For integrators, flexibility translates into greater opportunity to serve clients with varied needs, offering solutions that scale seamlessly from single-site deployments to multi-location rollouts.
Implications for systems integrators
For security systems integrators, the shift toward hybrid and cloud-based models requires an evolution in both technical skills and service offerings. While traditional NVR-based systems focused on hardware procurement and local storage setup, modern deployments emphasize software management, cybersecurity configuration, and network optimization.
Integrators must also guide clients through the economic aspects of cloud adoption. Predictable subscription-based pricing can make long-term cost planning easier for clients but may require education on total cost of ownership compared to upfront capital expenses.
Hybrid systems present an accessible entry point. They allow integrators to offer cloud functionality, such as remote viewing and smart analytics, without fully overhauling existing infrastructure. This gradual migration path appeals to organizations hesitant about committing to a fully cloud-first model.
The future of cloud video security
As cloud technologies mature, vendors continue to integrate advanced analytics, AI, and edge computing capabilities directly into camera systems. These developments enable smarter event detection, faster response times, and reduced false alarms.
Hybrid architectures are expected to play a central role in this evolution, combining local intelligence with centralized oversight. This will allow security professionals to process and store video more efficiently while maintaining strict control over privacy and compliance requirements.
For end users, the ultimate goal remains clear: achieving a balance between performance, affordability, and data security. For integrators, that means designing solutions that are flexible enough to adapt to changing business and technological conditions.
In Pesch’s view, the momentum toward cloud-based security is irreversible but must be guided by practical considerations. Hybrid cloud systems balance reliability and flexibility. They deliver the best of both worlds for businesses that want to modernize their security infrastructure without sacrificing simplicity or control.
As physical security converges with IT and cloud ecosystems, the success of these systems will depend on trusted partnerships between manufacturers, integrators, and end users. By focusing on transparent security practices and intuitive deployment models, the industry can help even the smallest organizations gain confidence in adopting the cloud.