Oliver Vellacott, CEO of IndigoVision: Better playback quality is driving IP. Actually, the playback quality is identical to live video quality. A whole host of new features are integrated into the solution, such as video analytics and the ability to scan 24 hours of video in six seconds. Perhaps most significant however, is live video through the virtual matrix. Until quite recently, the analog manufacturers could always say that IP delivered inferior quality to analog and they were right. Now, though, IP can match and even exceed in many instances the quality obtained through an analog matrix. So at last IP Video matches analog at its own game, while also delivering many additional features.
John Humphrey, Verint Vice President of Infrastructure Solutions: Based on our view of the market, the number one driver behind the adoption of IP surveillance solutions is the need for enhanced command and control over the massive amounts of data collected by modern security networks. Multiple camera feeds, sophisticated sensor data, access control systems and biometric screening devices all produce valuable security data. However, only an IP video management solution, with an open architecture, can transform these disparate data sources and potentially overwhelming amounts of information into actionable intelligence. The most critical information is delivered to the right people in time for a coordinated and appropriate response.
Brady: What can manufacturers do to assist dealers in developing a new class of customers?
Vellacott: Training is everything. IP video manufacturers are sometimes ‘accused’ of being arrogant. The reason is they are so convinced they have ‘the next best thing’ and they’re desperate to share it with the world. I think it’s probably true with all disruptive technologies. But seriously, if the knowledge doesn’t get transferred from the manufacturer to the dealers, then those dealers cannot sell the full value of IP...and it’s that value which ultimately enables a new class of customers. For example, IP allows a bank with many sites to replace what is effectively a CCTV system per site, with a single enterprise-wide system; communicating the value of that enterprise solution is crucial to the end user.
Humphrey: First and foremost, manufacturers need to build their solutions based on common industry standards and with open architectures. By open, we mean that it can be integrated with legacy security infrastructure i.e. cameras and other CCTV system components. This makes it simple for customers to enjoy the benefits of intelligent video management without the costs associated with a ground-up renovation of their security systems. By reducing the total cost of deployment, open standards allow dealers to make a better case for purchasing IP surveillance solutions.
Brady: Explain the importance to dealers of how they need to get end users to understand the TCO (total cost of ownership) of an IP surveillance system.
Vellacott: Ultimately, it is all about TCO! Unfortunately, at least in IndigoVision’s experience, end users don’t believe the “TCO spreadsheets” which manufacturers put together; there is a fair degree of cynicism, which is understandable. The only thing the end user really believes, and really wants to see, is their specific project compared with analog/DVR versus IP Video. IP should be lower cost to maintain because every node on the network can be remotely configured and diagnosed. The biggest ongoing cost in analog/DVR systems is travel time for service personnel. As for up-front capital cost, IP is normally competitive for systems larger than 32 cameras; for really large systems, IP can be literally half the cost of analog.
Humphrey: Manufacturers and dealers must transform customers’ perceptions of IP surveillance solutions from an unfortunate cost of doing business to a powerful analytical tool that improves enterprise efficiency and performance. By combining video surveillance systems with IP networks, security administrators can remotely monitor and maintain operations for multiple locations from a centralized command center, significantly reducing the total cost of ownership. In addition, the automated health-monitoring features of more robust IP surveillance solutions report on critical device performance issues so resources can be allocated more efficiently to only the components that require attention. Finally, powerful video analytics, made possible by IP technology, can provide key decision makers with better insight into operational performance and customer behaviors. This valuable intelligence can be leveraged to optimize efficiency and improve the customer experience.
Brady: Now for a perspective from a distributor who is preparing for IP Surveillance growth. What does the convergence of IP and analog CCTV technology mean to your traditional customer and vendor base?
Nick LaBella, ADI Director of Product Management – CCTV: ADI has recognized the convergence of IP technology and traditional CCTV systems and has undergone several new initiatives to assist our customers in to the IP sales arena. For 2006 and 2007 the focus should be on educating the security dealer base in both IP installation skills and IP sales skills.The typical security dealer has not been equipped to discuss an IP surveillance system TCO (total cost of ownership) vs. an analog surveillance system. While on the surface, the components of an IP system are higher priced than an analog system, the TCO of an IP surveillance system nets out a similar if not enhanced cost structure. By utilizing the existing network infrastructure the installer can save on labor costs and improve scalability and feature sets in an IP surveillance system.
Brady: How has ADI improved its product portfolio to follow this trend?
LaBella: ADI has added several new vendors to its product portfolio so that we could offer a complete IP solution to our customers. Most of our current CCTV suppliers have added IP cameras to their offering but what ADI has done is address the issues of wireless radios, canopies, mesh networks, video management software and network components such as encoders, power injectors, switches, hubs and POE (power over Ethernet) devices.
Brady: What will happen to the industry as the demographics shift?
LaBella: ADI believes we will see a subset of IP-installing dealers in every geographic region that will set themselves apart from the analog installers. We feel that a subset of dealers/integrators will train their staff and shift resources over to IT-type installers and salespeople. The IP-installing dealers/integrators will reap the benefits of having invested in their business and compete in an arena with less competition and improved profit margins.
Brady: How is ADI preparing for this tumultuous technology change?
LaBella: History has proven that as technology evolves the distribution channel of a value-add distributor takes on a very important role to the installing dealer base. ADI is taking a proactive approach in training its existing dealer base in IP technology with the understanding that there will be additional competition entering the arena as network integrators become more focused on security. ADI and both its vendor and customer community are faced with a crossroad in technological advancements today. It is our collective responsibility to stay ahead of the technology curve and continue to add value to both the products and the channel to sustain a viable security products industry. As a manufacturer needs to continue to increase feature sets and quality in its hardware appliances so does the distribution channel need to continue to add value to its channel with additional improvements of quality service and efficient delivery standards. We all need to continue to maintain our status as a security device industry and continue to provide solutions with technologically advanced products and services without spiraling in to a software-only based environment. The traditional networking models can transition downward the need for security based devices and will ultimately prove to under satisfy the true definition of security solutions to the end user.The ADI systems business has hired several IT-trained systems designers to assist the evolution of its dealer base. All of the Systems Business staff is being trained on all of the new IP products we are supporting so that they can work very closely with our dealers in designing IP solutions. The EXPO program offers seminars in IP technology to further advance our customers’ knowledge. We are doing both installation and technical training as well as IP Sale 101 training to assist the dealers in selling the TCO (Total Cost of Ownership) of an IP surveillance system.
Brady: How do you envision the future as dealers and end users understand the benefits of an IP surveillance system.
LaBella: The increasing demand will lead to increased production and economies of scale. IP surveillance solutions today reside at the high end of security solutions with higher cost devices installed by more technologically advanced integrators. This current model requires data-driven visibility in to product planning and delivery to quickly deliver important solutions to the end users albeit through a smaller more advanced integrator group. This model will gradually transition downwards as the demand increases and the increased production and economies of scale drive costs downward. At the same time the technological advancements of the devices will not only improve in features and benefits but also from user friendliness and interoperability between the surveillance solution and the network interface. Although most IP systems today are large systems based in education buildings, federal, state and local government facilities and municipalities, the evolution will have the 4 channel retail type of surveillance system also becoming IP-based. Certain analog solutions today will continue to exist as megapixel, wide dynamic range, backlight compensation will become the niche hybrid offerings in the overall IP solution. This downward trend will align the majority of today’s CCTV installation companies as IP surveillance solution providers.
