Growth in the VSaaS market can be attributed to a rise in demand from consumer, small- to medium-sized businesses and government end users, according to IMS Research Market Analyst Sam Grinter.
“Also, an increasing number of entrants to the market has accelerated growth of service development and marketing presence,” he says. “It’s also creating a more competitive environment. All of which means that VSaaS is set to grow significantly faster for 2012 onwards.”
VSaaS solutions include self-monitoring, real time alerts, integrated analytics and off-site storage. VSaaS might include integrated security systems incorporating on-site and off-site storage and remote video monitoring by a central station. However, despite its developments, a key hindrance of the VSaaS market is pricing, Grinter says.
“For VSaaS to become more widely adopted, the market needs to resolve a number of barriers,” he says. “For consumers and commercial users, the price per camera needs to drop significantly and installation must be simpler. Additional requirements for commercial users include new features and technologies, such as business intelligence functions, that increase the return on investment of using a VSaaS solution.”
The research firm notes that the cost to provide a cloud-based solution is rather costly. As it stands, monthly camera subscriptions cost between $5 and $30 depending on the level of service and the inclusion of hardware. While it seems inexpensive compared to the initial spending for a DVR, it will cost the end user considerably over time, according to Grinter.
Additionally, some video surveillance equipment vendors offer free remote monitoring through DVRs, NVRs and video management software (VMS). The service may prompt end users to upgrade existing hardware or software rather than opt for a VSaaS solution.
IMS Research’s initial findings show that the VSaaS market has even stronger growth prospects than originally predicted. However, a key factor that will determine the success of the market will be the VSaaS providers’ ability to overcome the previously stated product barriers.