Video Analytics has been around for a while, and over the years, the algorithms have continued to evolve from simple pixel motion detection to today’s much more advanced deep learning algorithms. With the advent of lower cost hardware and advanced learning neural networks, video analytics is poised to make great strides in the coming years in many markets, including perimeter security.
Developing an internal plan to market and sell video analytics involves several factors, including what type to choose, potential hidden costs, as well as scenarios where you may be leaving value on the table. Here’s a guide for your sales team:
What Video Analytics Will We Sell?
Video analytics come in many shapes and sizes, but for now let’s focus on three differentiating factors to consider when choosing a type to promote:
1. Embedded vs. Standalone: Embedded video analytics reside on the camera itself, while standalone video analytics are essentially software programs that can be deployed on commercial off-the-shelf servers or mini computers. Embedded video analytics are convenient, as they are already included in the camera. No extra wires or power source required, and they may be tightly integrated with the camera or VMS; however, they can decrease your choice of sensors. Additionally, the algorithms embedded in the device are often limited due to processor and storage constraints.
Standalone video analytics can be more expensive than embedded video analytics, involving dedicated hardware, wiring and the cost of the software itself; however, they tend to result in higher performing algorithms, additional software features and flexibility integrating with other sensors and/or existing security systems.
2. Rules-Based vs. AI: Whether to choose rules-based or deep learning video analytics comes down to the complexity of the scene and when your customer wants to devote manpower to the installation. Rules-based video analytics require the integrator to program the system for exactly what to detect and where – the more detailed you can be, the better. On the positive, these algorithms work the minute they are turned on; the downside is they detect as the rule as written, so if they are creating false alarms due to a difficult scenario (severe lighting, shadows, etc.), they will continue to do so until the rule is modified or the scenario is changed.
Deep learning video analytics – commonly referred to also as AI or artificial intelligence – consist of a neural network that is “trained” to understand what the customer is and is not interested in. The software will come with a training set of data, but there will be a break-in period where a human in the loop must let the software know when it has done well, and when it is alarming on something that is not of interest. Out of the box, deep learning will not likely pass a stringent acceptance test; however, given the time and proper feedback, the system will lean to be more accurate and become adept at avoiding false alarms related to difficult scenarios.
3. Cloud vs. On Site Server: Selling cloud-based vs. on-site video analytics can be a difficult choice for the integrator. On-site video analytics is the traditional sale of hardware, software and installation directly at the customer location. Although there is opportunity for future hardware and software upgrades, this is likely a one-and-done opportunity.
Cloud-based analytics involve little to no hardware at the customer’s site beyond the cameras themselves, with most of the heavy lifting hardware and software being located remotely “in the cloud.” That means there is not a significant amount of installation labor or product to sell at a mark-up. Most hardware or software upgrades happen in the cloud, unbeknownst to the end-user. As such, the initial business case of these installs may not look very attractive from a resale aspect; however, often the integrator can receive a small commission (RMR) from the monthly cloud-based service. Even small amounts can really add up over time, and in most cases, this is a purely passive income stream.
Don’t Forget Your Current Install Base
An often-overlooked segment for video analytics is the retrofit market. Today’s video analytics easily integrate with existing NVRs and cameras; thus, the ability to add increased automation and detection may be as simple as adding an edge device or video analytics server. That means that every customer in your database is now potentially a new lead to update their system with video analytics.
In addition to the sale itself, regaining the business of an existing customer is much less expensive than capturing the attention of a new customer. Approaching them with the value of adding video analytics to their system is a low-cost sales action, but despite the higher return on investment associated with retrofit opportunities, upselling video analytics to an existing install base is often an overlooked opportunity.
Planning
The sales and installation of video analytics always includes assessment of camera placement, camera views, camera mission and lighting – yes, always. A key aspect of a business case is whether this cost is accounted for. An integrator can choose to absorb the cost or include it as part of the installation charge to the customer.
Another option is to engage the video analytics supplier to help. The developers of these analytics can quickly identify problem cameras or difficult scenes and propose alternatives. In most cases, there is no charge for this guidance. Either way, not accounting for this action can quickly cut into your margins.
Finding RMR
Software maintenance is a business model used in many markets, whereby a recurring fee is charged for ongoing support and often access to new features. It has been part of the security market for many years, but is often overlooked by security integrators as a source of recurring income.
When it comes to video analytics, software maintenance is often a continuous software upgrade program. These days, video analytics companies are focusing on creating new and better algorithms for detecting and deterring bad guys. In most cases, many of these new features are included as part of a software maintenance program. Getting these new features is typically as easy as updating the system with the latest software. Most times this is done via a remote connection, with no need to even set foot on the property.
The most overlooked aspect of software maintenance is that vendors encourage their integrators to resell it; thus, you have the right to apply a standard mark up to the service – every year. You should now be asking yourself: What is my role besides discussing the value of the cost to the end-user? Exactly! In most cases, this is just a paper and scheduling transaction. Unfortunately, many integrators forego the reselling of software maintenance, as it falls out of their traditional definition of product sales.
The Bleeding Edge
Search the internet for “artificial intelligence” “deep learning” or “intelligent video” and look at the number of results. These technologies are improving by leaps and bounds, and they are here to stay. Those without this insight may try to ignore video analytics completely, claiming it is too complicated or perhaps not robust enough.
Video Analytics is an exciting technology that is going to continue to grow, not only in the security market, but in transportation, entertainment, home automation and many others. The key for integrators and dealers is understanding where to gain value, where to plan for costs and to know how selling this capability aligns with long-term goals.
If we can trust a computer to control a driverless car, how long until a computer independently monitors and automates your security system? Video analytics are providing the security market with accurate detection, event insight, affordability and response automation, and all indications are that this trend will continue well into the future. Not taking the time to understand how to add these capabilities to your offerings today, will likely result in the need to play catch up.
Eric Olson is VP of Product Management and Marketing at PureTech Systems Reach him at [email protected]. Request more info about the company at www.securityinfowatch.com/10287354.
