According to IMS Research the hype around VSaaS is not unfounded; the recurring monthly revenue business model is very attractive to telcos/ISPs, central monitoring stations and installer/integrators. The value-add promoted by some solution providers is certainly a convincing proposition. The ability to achieve remote redundancy of video data, true ‘plug n’ play’ installation, remote access to the video, and a lower cost video surveillance system are all factors that will encourage this market to grow.

Looking ahead to 2011, certain applications of VSaaS are more likely to take off than others. The most successful will be customers with multiple sites that each require (four or less) cameras. These niche applications include mobile phone masts, chains of small retail shops, oil rigs and electricity sub-stations. These applications all require security or monitoring, but the cost of installing hundreds if not thousands of traditional DVR systems across multiple sites can be reduced by having a VSaaS solution.

VSaaS has the potential to be the disruptive force needed to break into the low cameras count, DVR and analogue camera dominated video surveillance market. In a bid to speed up this process, some service suppliers have started to offer VSaaS solutions integrated with other services. The benefit of this is that it turns the service from a simple security application, to a multiplatform service. An increasing number of VSaaS providers offer the following services integrated with their solution: energy management, point of sale (POS), video analytics, home automation and access control. The belief is that end-users will be more likely to adopt a solution with a strong value-add, rather than just a video surveillance or security application, particularly if cost is the primary decision factor.

For the time being, niche applications will have the greatest initial traction in the growth of the VSaaS market. To succeed in the mass market, VSaaS providers are increasingly likely to require integration with other services such as home automation, POS or energy management. Once VSaaS can demonstrate a clean and strong value-add, the market has the potential to grow significantly.