Clicky Web Analytics
IP Video Surveillance News and Reviews
Search:
Login
The Source for Video Surveillance Free Video Surveillance Guide Download
Email Address:

Are You Too Stupid to Buy IP Cameras?

by John Honovich, IP Video Market Info posted on Jan 12, 2009 About John Contact John


Why are 4 out of 5 of you still not choosing IP cameras? The IP video vendors keep trying to educate you. Is it that you are clearly that stupid to not get it? Or do you just shut it out?

A Serious Issue

I believe a fundamental cultural and strategic issue is at the heart of this discussion. I think the IP Video industry has fundamentally misinterpreted the real issues involved - it's the lack of business value of IP video, not the transaction cost of getting educated.

The Importance of Education

Anywhere you go in the industry you hear talk about the importance of education. The lack of education is holding IP back. We need to get more people trained. Once they are trained, they will move to IP. Nothing is holding back IP except for awareness.

What They Mean is - You are an Idiot

I talk to executives all the time and there is a clear negative undercurrent to this seemingly positive message.  New entrants, especially IT people, tend to think that  security people are idiots - stupid, lazy people that neither have intelligence nor drive to understand new and better technologies.  I am not saying everyone does and I am not here to call people out. However, I am sure this a very widespread belief that impacts the strategy and marketing of IP video.

A Dangerous Cop-Out

I see two major dangers here:

  • IP video vendors build flawed strategies based on an assumption that makes them feel better but misses the real customer problem.
  • Traditional end users feel mistreated and marginalized, creating more cultural and political problems in migrating to IP video.

The Business Barriers for IP Video

When business make decisions, there are two fundamental economic components: (1) transaction costs and (2) direct costs.  If you are a PC user and you buy a Mac, the cost of the Mac is a direct cost while the cost to learn how to use a Mac is the transaction cost.

Education is a transaction cost. People need to learn about the value and operations of IP Video before buying and deploying it.

Some decisions will not be made when the direct costs are justifiable but the transaction costs are too high. This is when reducing transaction costs (like education) make sense.

The problem is the direct costs of IP are still too high to justify for the majority of users. It does not matter how much you educate them, most rationale buyers cannot make the business case for IP video - period.  

As such, education may be nice but it is not the key to success. We have debated this point extensively both in the IP camera problem discussion and the IP video advantages and disadvantages review. Read those threads for background information.

The Future

The easy victory and dominance of IT is not happening. Even before the global recession, it was clear that convergence was moving at a slower than projected rate. Now, it will take even longer.
Inside the Premium Section

In the premium section, I will recommend a course of action for IP video companies to follow to break through the real business barriers they have including:

  • How to expanding into markets that are currently poor fits for IP video
  • How to overcome barriers for existing deployments
  • How to optimize product fit for the broader market
Offerings from Axis, Mobotix, IQinVision, OnSSI and Nuuo will be discussed.


Options




Most Recent Industry Reports

IP Video Sales Rebound, Analog CCTV Continues to Fall on Mar 18, 2010
An important market shift for the video surveillance market is occurring. In the last 6 months, while IP video sales have rebounded, analog sales continue to fall. This is in clear contrast to...

Testing Ikena's Video Enhancement Software on Mar 17, 2010
Driven by Hollywood sensationalism, public interest and expectations for miraclous video surveillance enhancement is common -- unrealistic and dangerous. A popular YouTube video captures the essenc...

Education: IP Network Basics for Video Surveillance on Mar 14, 2010
Understanding IP networks is increasingly critical to designing and deploying video surveillance. In this special report, we provide nearly 2 hours of video training on the key issues, technologies...

Video Surveillance Industry Weekly - Mar 12 2010 on Mar 12, 2010
New funding, new panoramic from Mobotix, more analytic bashing and the power of IT managers examined. All updates are available to premium members inside.

Testing Avigilon ControlCenter VMS on Mar 09, 2010
While Avigilon is best known for its high resolution cameras (up to 16 MP), Avigilon offers its own VMS, Control Center, a system that is required for using their cameras. With interest in megapixe...

2010 Video Surveillance Industry Guide on Mar 08, 2010
The 612 page 2010 Video Surveillance Industry Guide provides the most comprehensive global coverage of the market, companies and products in video surveillance. It aggregates key analysis and resea...

Testing Digifort's VMS (Version 6.3) on Mar 07, 2010
As video management software matures, more choices are emerging from around the globe. In the past year, we have heard increasing discussion about the use of Digifort, a company based in Brazil, no...

Testing Vitamin D Video Analytics Software on Mar 06, 2010
With significant tech blog coverage, Vitamin D has generated widespread interest in using their video analytics. Two of the most commonly cited points is their technology, called HTM, that is based...

Video Surveillance Industry Weekly - Mar 5 2010 on Mar 05, 2010
This week: Falling Analog sales.The future of GE Security. New Investments. New info on key startup and more. Aggregates premium weekly updates.

Testing LuxRiot VMS (Version 1.7) on Mar 01, 2010
As video management software matures, complaints increase about its high price. Even a small deployment of 16 cameras in a single site can cost $1,500 - $2,500 for basic VMS software without any en...

IP Video Market Info 2010