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ABI Research: Video Surveillance as a Service changing the revenue equation

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Security customers are on the hunt for scalable data solutions to meet their video needs. This demand will create more opportunities for cloud providers and drive global cloud data and analytic services revenue in the video surveillance market to US$25 billion in 2030, according to ABI Research.

“The video surveillance market is experiencing a transformation as more cloud video surveillance systems emerge, diversifying a market that capital expenditure costs have historically dominated,” said Lizzie Stokes, IoT networks & services analyst, ABI Research, in a press release. “Enterprise companies, lines of business, and small and medium enterprises (SMEs) are looking to take advantage of surveillance insights and are searching for new storage and analytics service models to ease implementation, drive faster time to market, lower costs and improve ROI.”

According to ABI, surveillance investments are moving away from expensive new camera deployments towards more cloud data services.

“First, as video resolutions have improved, data loads have become heavier and more costly to store. At the same time, regulation is driving more firms to save their video footage. These market dynamics have created a demand for scalable and cost-effective cloud data storage solutions,” said Stokes.

“Second, video surveillance users increasingly view video data as untapped business intelligence. Video surveillance cameras are already tracking employee behaviour, observing customer actions, and monitoring goods as they journey through the supply chain and the factory floor. Many video surveillance users — enterprises and SMEs — are searching for streamlined cloud video analytics services to mine raw video data for operational insights.”

Revenue streams will diversify as more customers pay for video services through a recurring fee model.

“VSaaS vendors are redefining how video surveillance can be offered and deployed,” said Stokes.

More details are available in ABI’s report, IoT and Video Surveillance: Revenue Model Evolution.