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Jack, much has been said about the move of video monitoring from NVRs and DVRs to the cloud. Where do you see that movement coming from today?
The interest will be coming from small companies such as restaurants, small mom and pop grocery stores, and residential. There are many other markets out there that will need to be explored by the individual integrators.
The cloud is a different business model and it will take the integrator some time to wrap their heads around hosted 4-16 camera deals and continue to support their 50-150 camera deployments.
What type of integrators are you having the most success with?
You may be surprised, but we are not having success with surveillance integrators. I feel the companies that will be most successful are other non-surveillance integrators that see an opportunity to be the first in their particular industry and take advantage of the residual revenue that is waiting for them.
Unfortunately, I do not believe surveillance integrators will be the ones pushing clients to the cloud. They say this because surveillance integrators are focused on the large deployments.
We felt surveillance-integrators were a perfect match; we provide a service, and the surveillance integrator to focus on sales. We were wrong.
As a result of lack of interest by surveillance integrators, it forced us to look into other markets and introduce our services to the integrators that support those industries.
Where is the hesitation and reluctance coming from?
I feel the hesitation and reluctance comes from not having enough time to focus and learn a totally different product and the marketing that goes with it.
I’ve also found sharing the monthly revenue with the “hosting service provider” is a hard pill to take.
What are the overall benefits of cloud service? What should we be concerned about?
Surveillance data to the cloud provides several benefits.
Video is stored in a secure level III facility that will ensure the data is not tampered with or stolen via a DVR. If the video stream is interrupted for any reason it will e-mail a notification to the end-user.
Because we are located in Florida – the lightning capital of the world – when there is a lightning strike we have found the DVR/NVR to be extremely susceptible to those strikes. We have not had to replace any IP cameras as a result of lightning.
You had mentioned that DVRs and NVRs aren’t going away anytime soon. What applications and markets are they still very relevant for?
As long as there is government, education, transportation and other large project bids, there will be boxes. The other market is the do-it-yourself person that is not very educated about cameras and DVRs.
In general, I have found their purchases are based mostly on price, not knowledge of the technology. No one wins with this type of purchase.
What other thoughts, opinions or ideas do you have about the subject that you would like to convey?
The cloud is a reality and we see a tremendous interest with other types of integrators and businesses providing this service to the end-user. I personally feel the large surveillance integrator will be left out of this market while others are slowly taking their place.
I know the cloud to some industries and businesses is a scary thing. It could mean some surveillance companies that have not kept up with technology will just disappear. Manufacturers switching from analog production to IP market and the integrators that are not trained in that area will be left behind as well.
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