How the Cloud & Big-Time Manufacturers Will Affect the Security Industry

BLUE EYE TECHNOLOGY

In my 37 years working in the industry, I have seen the “race to the bottom” occur with every popular technology that has come into our business.

Two examples come quickly to mind: PIR motion detectors and digital communicators.

The first PIRs I sold at a distributor in Atlanta went for $275 in 1977 dollars.

A few years later the cost for better performing PIRs had dropped below $50 each, and soon bottomed out at around $10 apiece.

The same story happened with digital communicators. The first ones were $130 with no control panel functions. Dealers had to purchase a $150 control panel (ADEMCO 342Rs, anyone?) to complete the “head end” of a security system.

Today’s combined control panel/digital communicators are typically priced to the dealer at around $50 for a six zone control.

You can’t take your wife to dinner for $50, but dealers can buy an alarm panel/communicator for that price.

What has surprised me is the speed at which IP cameras have dropped in cost, while simultaneously increasing features and options.

In a couple of short years (the older I get, the shorter the years) the price of feature-loaded IP-cameras has dropped to or below the cost of low-end analog surveillance cameras that have no IP capability, on-camera recording, audio, or any advanced features.

While the established manufacturers try to plan their new offerings, the flood of IP-cameras is coming from across the Pacific.

Our friends in Asia seem to have decided that there is a large market in indoor IP cameras and are filling that perceived need. Security dealers need to be thinking right now about how these inexpensive IP cameras will impact our business.

Source: sdmmag.com
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