Mariann McDonagh, Vice President of Global Marketing, Verint Systems, Inc: IP-based video management technology has already made a significant impact on the market. We'll see its influence grow exponentially over the next few years as intelligent video analytics helps bring video systems into alignment with corporate priorities. Video is an untapped source of valuable enterprise data and video analytics transforms that data into actionable intelligence that organizations can use to enhance security and make better decisions about operational efficiency.
Scott Schafer, PELCO Sr. VP of North American Sales & Marketing: I think they are making a major impact right now. A number of customers are already using IP video technology to improve or change their business. There are a number of systems integrators already conversant on the systems and the processes and services around them.
JP Forest , Director of Security Solutions, Avigilon: We are seeing that IP-based video systems are already making a major impact in certain niche markets that require centralized management of geographically distributed sites. For the market as a whole, however, many people have been sitting on the fence regarding IP-based solutions because, to date, they did not offer additional benefits in terms of image quality when compared to analog systems. We expect that over the next two years the market will come to understand that IP-based solutions can offer both dramatically better image quality as well as centralized management of geographically distributed sites. As a result 24 months from now the majority of systems being sold will have an IP component.
Jay Hauhn, Executive Director of Product Planning & Development, ADT Security Services, Inc: From what I can tell by talking to others in the industry, IP video appears to be growing at a 40% Compound Annual Growth Rate (CAGR). Analog video is single digit CAGR. In two to three years I expect IP video to have perhaps a third of the market as manufacturers drive costs out of the hardware, dealers develop the correct IT expertise, and IT departments start to understand and accept its use on “their” networks.
Brady: Since IP-based video represents only a small percentage of the video surveillance market at present, please put into perspective how your company views analog and hybrid video systems. What percentage of the market do they represent and what percentage of the market will they have in the future?
Whitcomb: Analog's quality will continue to improve with better compression technologies and faster procession, however the improvements will be limited by the underlying technology. As a percentage analog will continue to decline as IP camera prices decrease and as mega pixel camera technology proliferates. Hybrid is a convenient short term solution that works well when adding a few additional cameras to an existing system; however the benefits of IP will force most end users to simply upgrade to an all IP system.
DeFina: The IP/network category represents a growing portion of the market today, and we are seeing continued increase in IP systems applications versus analog systems. The transition is taking place, although in a migratory manner. An increasing number of system upgrades and new installs implement hybrid systems, employing some combination of IP and analog devices across different platforms. Yet, as this trend continues, it masks the actual penetration of IP-based systems due to the hybrid nature of these systems' configurations. We believe these hybrid systems are the building blocks for the IP market moving forward and expect to see the continued implementation of hybrid systems over the next couple of years.
McClean: Hybrid systems are very important to our company and existing video surveillance users. The ability to leverage the benefits of IP video, such as having a few remote cameras, while at the same time maximizing their current investment appeals to most customers. An area that is often overlooked is hybrid systems which also include analog matrix switchers.
Abram: Hybrid systems probably account for the majority of IP product placements to date. This is further evidenced by the number of hybrid products on the market: DVRs with both analog and IP inputs and cameras with both analog and IP outputs. Most systems we are seeing today– especially where large numbers of cameras are deployed – still rely on analog matrix switchers to provide the features and functionality required to manage complex signal routing, monitoring and recording assignments.