One trend that stands out as a game-changer in the fast evolving landscape of video surveillance technology: the ascent of hybrid and cloud-based video management system (VMS) solutions. With the promise of scalability, flexibility and enhanced accessibility, cloud-based VMS is not just a technological evolution but a transformation in the way stakeholders perceive and utilize video management in security applications.
As security integrators and end users navigate the complexities of modern security challenges, understanding the trends and opportunities presented by cloud-based VMS becomes paramount. Ahead, we delve into the forefront of VMS cloud technology, engaging with leading manufacturers to uncover the latest trends, insights and opportunities that are shaping the future of surveillance. From cost considerations to security enhancements, integration challenges to scalability benefits, they explain the transformative potential of cloud-based VMS and empower security integrators with the knowledge they need to navigate this dynamic landscape.
Reducing Total Cost of Ownership
The adoption of cloud-based VMS is reshaping the way organizations approach video surveillance. Beyond technological advancements, cloud-based VMS solutions offer a paradigm shift in the cost dynamics of video management. With the promise of reduced infrastructure footprints and investments, simplified maintenance, and scalable subscription models, these innovative solutions are not only transforming surveillance capabilities but also challenging traditional notions of cost ownership in the security industry.
“For both security integrators and end users, cloud-based VMS solutions help to minimize the need for on-premise software and servers, particularly in multisite locations,” explains Michael Coniff, offering management lead, Honeywell Commercial Security for Building Automation, Charlotte, NC. “This enables end users to lower their infrastructure costs and simplify their IT management on-premise, while integrators can meet end-user demands for a simplified, integrated and intuitive platform all from one user interface.”
In addition, cloud-based VMS solutions enable integrators to proactively maintain their customer locations, health and status of devices, upgrades and maintenance, Coniff adds, which helps to provide timely fixes when problems occur, thereby strengthening customer relationships.
With cloud-based VMS deployments, considerable infrastructure and maintenance savings can be realized where storage hardware is concerned, explains Aaron Saks, senior technical marketing and training manager, Hanwha Vision America, Teaneck, NJ. This is particularly the case for systems with high camera counts or where long retention times are required.
“Hard drives have limited lifespans; servers need updates, licensing, reboots and antivirus software,” he says. “Now, you’re eliminating all those initial costs and you’re also shifting from capital expenditures to operational expenses. For example, a user doesn’t need to outlay $50,000 in physical servers that depreciate on day one. Also, if there is an issue, such as a power surge and the hardware is damaged, now the user is just paying a monthly fee and doesn’t have to lay out that much — and a dealer or integrator makes recurring revenue.”
Matt Fishback, AWS business development manager, Milestone Systems, Lake Oswego, OR, also emphasizes how the cloud shifts expenses from upfront capital investment to flexible operating expenditure based only on system usage needs.
“Amazon Web Services and other cloud providers offer tiered pricing that optimizes costs further as usage scales,” Fishback says. “Hybrid approaches balance cloud efficiencies with on-premises investments, including hardware, software and human resources. Also, recurring cloud services drive increased monthly revenue for integrators by opening opportunities around remote monitoring, maintenance and managed services.”
In fact, the opportunity for integrators to leverage Software as a Service (SaaS) programs is reshaping the business model of video management in the digital era, comments Anastasie Najem, product marketing manager, Genetec, Montreal. The company’s recent unveiling of Security Center SaaS is an example of the technology evolution taking place in the physical security industry, she says.
“In terms of managing costs, with a SaaS solution we have the recurring business model, it’s subscription. It is the model that everyone prefers in terms of how we manage cost,” Najem explains. “So, end users can pay as they go, they pay only for what they need, they can upgrade their plans over time, depending on the capabilities and their changing needs.”
Najem also points to hybrid VMS deployments as often preferred by end users due to their ability to seamlessly integrate both cloud-based and on-premise infrastructure, offering the flexibility to leverage the benefits of both environments while accommodating diverse security needs and preferences.
“End users can have different options for storage,” she says. “Bringing this into the hybrid model, they can decide to have a subscription model for the cloud service. But if they have restrictions in terms of bandwidth or in terms of storage or processing, they can leverage a cloud-managed appliance to store some parts of their data locally, and that won’t impact them. It will help reduce that cost and reduce the bandwidth and control it and optimize a little bit more.”
In terms of overhead cost, Najem adds, a hybrid model can mitigate hardware depreciation over time. “Maintenance costs, energy consumption ... you won’t have those anymore,” she says. “All this will be significantly reduced, because you will have a mix of cloud devices, direct-to-cloud devices and some edge and on-prem.”
When it comes to calculating overall cost of ownership, Fredrik Nilsson, vice president, Americas, Chelmsford, MA, underscores a key concern: “Bear in mind that cloud-based solutions present an operating expense versus a capital expense posed by some on-premise or hybrid solutions.”
While the lower monthly OPEX may be more attractive than a large CAPEX outlay, he explains, it could actually be more expensive over time.
“A total cost of ownership analysis — with an in-depth review of the VSaaS contract to determine any constraints — is essential,” Nilsson advises. “In the end, openness and flexibility are important both to the VMS and the relationship with the solution provider.”
Video surveillance professionals have been waiting for the cloud to become a viable way to offer their customers more capabilities and to extend their business models, but first a few things had to come together, explains Matt Fishback of Milestone Systems.
“Reliability and security concerns, bandwidth and infrastructure limitations, ROI drivers, and the need for a viable solution and support ecosystem that surpassed or at least rival existing on-premises systems needed to be developed,” he says. “With many recent business and technology advances addressing these concerns, the cloud has opened the door to fast, flexible VMS deployments, highly scalable remote connectivity, and new video data storage and processing possibilities.”
Stakeholders are now witnessing a revolution in security driven by the flexible, affordable cloud computing, video storage and use options now available, Fishback adds.
“The cloud’s cost-effectiveness and scalability have the most significant impact, freeing organizations from ongoing on-premises capital expenses,” he says. “With tiered pricing structures, costs can be aligned with usage, optimizing budgets. By moving infrastructure to the cloud, organizations reduce the burden of the maintenance and growth costs of physical compute, processing and storage hardware.”
One of the biggest overarching trends within the security industry is the changing perception and general acceptance toward cloud-based security systems, which in turn, is driving an increased adoption of these solutions, with many end users now asking for an integrated cloud-based solution from the outset, says Michael Coniff of Honeywell Commercial Security.
“With today’s confidence in the reliability, effectiveness and security of cloud-based platforms, demand for video software as a service is greater than ever,” he says. “Cloud-based solutions help make multisite security simple and effective and intuitive to use interfaces reduce learning curves and streamline operational efficiencies.”
Genetec’s 2024 State of Physical Security (SOPS) report cited 60 percent of end users are now investing into hybrid cloud deployments, with those investments growing over time.
“Our channel partners are also seeing an increase in those deployments as well,” says Anastasie Najem of Genetec. “Around 93 percent see a mix of cloud and hybrid deployments over the next couple of years. So that’s really the biggest trend we see right now because it brings so much flexibility for organizations.”
In general terms, the cloud is becoming a more important component of IT infrastructure for many organizations, says Fredrik Nilsson of Axis Communications. “Accordingly, VMS providers continue to introduce features and tools that leverage the cloud’s ability to perform functions remotely such as live video surveillance, system health monitoring, device configuration, and automatic software updates, which is tremendously beneficial to cybersecurity.”
The cloud, he adds, also enables video management to be sold as a service. “For end users this shifts CAPEX to an OPEX, thereby freeing up vital capital for investment in other areas of the business. On the other side of the equation, those who sell cloud solutions benefit from recurring monthly revenue (RMR),” Nilsson says.
More Benefits & Advantages
Cloud-based and hybrid VMS solutions offer distinct advantages over traditional on-premise systems, including the possibility to have a solution up and running in minutes, Saks explains.
“Users don’t have to deal with massive servers, system configuration or storage,” he says. “Cloud eliminates the issues of having to design a system for a certain number of days or a pre-defined storage capacity. With a few clicks a system can be provisioned to add more storage or cameras, and the cloud takes care of it. You have that elasticity. An operation becomes much more flexible, nimble and faster since you don’t have to deal with the time-consuming backend sizing.”
Cloud video recording is becoming more accepted for managing the growing demand for video retention, Saks continues. This is attractive to many customers since cloud recording is elastic and only requires a few clicks to extend storage retention.
“Once a cloud system is up and running, users can have full access to their system from any device from anywhere. Cloud removes the barrier of physical access or needing to be onsite only versus the flexibility of being offsite,” he adds. “Once the data egresses and is ingested to the cloud, it’s the same ease of access from anywhere.”
Saks emphasizes the cloud is a good fit for a seasonal business, like smaller retail operations managing remote locations, or an oil and gas utility monitoring remote sites.
“They don’t have to deal with managing and maintaining a large server room,” he says. “They just choose the number of cameras they need and are able to view and monitor everything through a single pane of glass from any location with internet access.”
Coniff also notes cloud benefits such as centralized intuitive security management across multisite locations, streamlining monitoring and management processes.
“These solutions enable seamless to access, intrusion and other complimentary platforms, facilitating the deployment of additional security features and various elements, such as video access control, intrusion detection and analytics, enhancing operational efficiency,” Coniff says.
In Nilsson’s view, the primary benefit of cloud-based VMS solutions is convenience. “They’re generally easy to deploy since no on-premise servers or recorders are usually required. This also makes them easy to maintain as well as easy to scale up or down as needed,” he says. “Ease-of-use is another big advantage. With a cloud-based VMS, video is readily available and can be viewed through a web browser or smart device.”
Maintaining uninterrupted surveillance operations is paramount in the security industry, and cloud-based video management system (VMS) solutions should employ robust redundancy measures to mitigate the risk of downtime or system failures.
“It’s important to ask the questions of whose cloud are you running on — your own cloud or someone else’s cloud? Are you running on a cloud that has a proven track record? Are they doing co-location or do they have multiple redundant sites? Do they have plans and processes in place to detect downtime, degraded service and load balance? Is your data hosted in your country or is it egressing to another country, which may raise GDPR issues,” says Aaron Saks of Hanwha Vision America.
Another factor to consider, Saks adds, is determining who is hosting the cloud/data center. “Data should be encrypted in transit and at rest, and no one — not even the cloud provider — should have access to the video, except for the customer and possibly the integrator, if granted access,” he advises.
Despite a high level of availability and redundancy, cloud-based VMS solutions can experience disruptions and outages says Fredrik Nilsson of Axis Communications. Therefore, it’s important to ensure that backup strategies and recovery plans are a part of any service-level agreement.
“Of course, another way to handle the challenges of downtime and system failures is to implement a hybrid system with local recording on SD card or VMS server — this can provide greater assurances and peace-of-mind,” he continues. “Also, despite a lot of processing capacity, cloud-based solutions can experience latency and bandwidth issues, so it’s key to make proper adjustments when selecting the right cloud region, optimizing network configurations and balancing cloud resources.”
Cloud-based VMS solutions are typically able to run on and partner with other companies’ applications. This allows not only security solutions but the peace of mind of global deployments, full redundancy and disaster recovery, up-time and compliances, explains Michael Coniff of Honeywell Commercial Security.
“By partnering with other company applications, cloud-based VMS solutions can integrate seamlessly with a wide range of third-party systems such as access control, analytics and alarm systems,” Coniff says. “This interoperability enhances the overall functionality and effectiveness of the system, helping minimize downtime.”
When utilizing cloud-native services and cloud-managed devices, leveraging containerized workloads can be especially beneficial during system failures and similar events, explains Anastasie Najem of Genetec. This means that if an issue arises with one workload — such as video processing, access control or intrusion detection — it remains isolated, safeguarding the overall system from disruptions.
“So the team can be much more responsive addressing those issues rapidly without the whole system going and failing,” she says. “There is less of a risk in terms of failure, less risk in terms of cybersecurity as well because it’s containerized. Everything is controlled, and that also helps with resource optimization.”
In terms of software redundancy data is stored across multiple data centers, ensuring backups are readily available, resulting in a cost-effective solution, Najem adds.
“Whereas, maintaining on-premises infrastructure requires significant investment in space and redundancy, leading to escalating costs,” she explains. “Cloud-based solutions offer scalability and manageability, alleviating these cost concerns.”
When it comes to hybrid architecture specifically, Najem points to flexibility and freedom of choice. “The mindset we have right now is that cloud is only a means to an end. It’s good to select cloud, but you shouldn’t start with, ‘I need a cloud solution.’ You should start with, ‘What are my needs? What are the needs of the different sites that I need to secure? And what is the best deployment for such sites?’”
Organizations and integrators alike will appreciate having the flexibility of a hybrid solution, Najem says. Depending on an individual site, compliance regulations may require an on-premise system while a different site may not be held to the same criterion.
“And maybe that site is smaller. Maybe I want to replace everything. So I can invest in cloud devices, direct-to-cloud devices, and I can do that,” Najem continues. “I can pick and choose what works best depending on the customer’s needs. So there’s no compromise in terms of it has to be cloud or on-prem, one or the other. It’s really whatever they want and need.”
Scalability Not Without Challenges
For integrators, cloud-based VMS solutions provide a centralized platform where many elements of the security system can be managed and monitored remotely, explains Coniff of Honeywell. With this, cloud-based VMS solutions streamline the process of servicing customers, simplifying operations, enhancing customer satisfaction and meeting customers’ evolving needs.
“On top of that integrators can utilize cloud-based VMS to create recurring monthly revenue (RMR) by offering proactive monitoring services,” he says. “With automatic failure notifications, integrators can quickly respond to issues, demonstrating value to customers and fostering stronger client relationships.”
For end users, Coniff continues, cloud-based VMS solutions deliver ease of use and accessibility.
“Users are accustomed to seamless and intuitive experiences in their daily lives, meaning as consumers they are used to instant access and simplicity of cloud solutions like banking, travel, etc., and cloud-based VMS brings the same level of convenience to security systems through cloud integration,” he says. “With cloud integration, users can access and manage their security systems from anywhere, at any time, using any device with an internet connection. This accessibility empowers end users to monitor their properties, receive real-time alerts and respond to incidents promptly, enhancing overall security and peace of mind.”
In terms of scalability, an open platform VMS enables seamless hybrid cloud deployments by connecting local and cloud video infrastructure, explains Fishback of Milestone Systems.
“An open platform approach provides access to an expanding ecosystem of integrated third-party applications for expanded capabilities. Users can quickly test and deploy new video capabilities on demand without added complexity,” he says. “Cloud connectivity also allows storage and computing capacity to scale instantly to meet growing analytics needs.”
Additionally, Fishback says, there will always be uncertainty regarding hardware requirements for future AI/ML/video analytic needs. “We do know that as the solution technology expands, the hardware requirements will increase,” he says. “With cloud integration, the user can request more computing and storage capacity as needed and deploy the technology immediately.”
There is much for installing security contractors to consider when designing and deploying cloud-based video management solutions. Here are five such factors to think through, as provided by Fredrick Nilsson of Axis Communications:
- Openness is important so that edge devices can work in different solutions, including both on-prem and cloud solutions from different vendors.
- Ideally the device management platform should be provided by the manufacturer of the edge devices to ensure the most cyber-secure solution. Otherwise, integrators should ensure very deep collaboration exists between the VMS provider and device manufacturer.
- Always make sure that the edge devices have great AI capabilities and video compression technology to reduce bandwidth and increase systems capabilities. Remember that cloud-based recording is typically high cost.
- Be aware of solutions where the edge devices have been OEMed (not developed by vendor) as they may be difficult to update — presenting cyber vulnerabilities.
- Video surveillance cameras need to be of the highest quality — both the cameras themselves and the video they produce — since they are often in service for five to 10 years and should operate flawlessly over that time.
Nilsson of Axis Communications also highlights the ease with which cloud-based solutions can be scaled, given cloud providers already have the infrastructure in place. Essentially, users buy more capacity as they need it.
“This offers much needed flexibility to a growing organization as well as those who face unpredictable workloads,” he says. “As far as integration and maintenance, while this work can be performed in-house, end users can also utilize a service organization — namely, a systems integrator — if they do not have the requisite resources.”
Nilsson stresses it is important to understand that not all systems can be integrated or upgraded into a cloud-based solution. Although technologies such as video encoders facilitate the transition of legacy analog cameras to the digital realm, inherent limitations persist.
“Sometimes it is more cost effective to revamp a system with new edge devices versus trying to patch it together. Consider that in the IT industry most essential systems, and even laptops, are replaced every five years based on warranty and cybersecurity risks,” Nilsson explains. “Physical security equipment has a tendency to be used for 7-10 years, so regular device inventorying as a part of a proactive device lifecycle plan is crucial.”
Addressing compatibility challenges when integrating cloud-based VMS solutions with existing on-premise security systems requires having systems that already enable compatibility with existing edge devices such as cameras, Coniff explains.
“It also requires the ability to integrate into other platforms, which can reduce transition costs and compatibility issues,” he says. “Additionally, the key to resolving compatibility issues lies within the integrator’s ability to balance the transition to cloud costs and changes of hardware with the significant savings that can be realized by the end user, especially across multisite locations.”
