Megatrends in Video Surveillance

Whitepaper Megatrends in Video Surveillance A guide to today s leading trends in video surveillance technology and practice. Prepared by: Eric Fullerton, Corporate Chief Sales & Marketing Officer, Milestone Systems June 2011

Milestone Systems Megatrends in Video Surveillance Table of contents Introduction... 3 Megatrend 1: The move to IP video surveillance... 4 The staged approach... 5 Mobility as a driver... 5 Megatrend 2: The rise of IP video surveillance experts... 6 The importance of value-added software and services over price... 7 Megatrend 3: Better image quality at a competitive price... 8 Easier networking... 9 More manageable file sizes... 9 Megatrend 4: Video analytics will be a value-add... 10 Video analytics at the edge... 10 Video analytics at the server... 10 Video management software considerations for analytics... 11 Megatrend 5: "Open platform" video management software... 12 Advantages of open platform IP video management software... 12 Consolidation in video management software vendors... 13 Megatrend 6: More focus on the user interface... 15 Megatrend 7: Integration with other security devices and systems... 17 Megatrend 8: Realizing ROI by using video for process control... 18 Megatrend 9: IP video surveillance and the cloud... 20 Megatrend 10: Improvements in storage costs and reliability... 21 On-board edge storage... 22 Conclusion... 23 Page 2

Introduction Video surveillance today is in the midst of a major paradigm shift. The growing use of Internet Protocol (IP) technology and video management software to network and manage video surveillance cameras is transforming the industry. Not only is it improving the quality of video surveillance, but it is also creating new applications for it and expanding traditional ones. Compared to analog video technology (also known as closed circuit television or CCTV), IP video surveillance is game-changing both in the quality of the video collected and its utility and value. IP network (digital) cameras and video management software expand the capabilities of video surveillance, making it not just a tool for watching, but also for collecting data and improving business and organizational operations. IP networking and video management software are improving access control, safety, traffic monitoring, process control, and many other functions. In fact, as we will discuss later in this paper, once video is networked and accessed through computers and other devices, there really is no limit other than the imagination to how it can be used and benefit people, businesses, governments, and institutions. IP video surveillance systems can turn this security prerequisite into something that can actually provide return on investment. This paper will introduce you to many of the latest megatrends and developments in IP video surveillance, including important innovations like image quality, mobile access to live and recorded video, edge and server-based video analytics, the move toward open platform video management software, and new uses of IP video. Knowledge of these trends can help you make better decisions as you seek to improve the performance, effectiveness and business value of your video surveillance system. Page 3

Megatrend 1: The move to IP video surveillance According to a BBC article, there is a video surveillance camera for every 14 people in the United Kingdom. People in London are caught on camera up to 300 times a day. Across Europe, in the United States, throughout China and in the Middle East, Russia, Australia, Japan, and South America, the use of video surveillance by industry, government and schools and universities is growing. Video surveillance is becoming increasingly pervasive for its value in helping monitor crowds, streets, parking lots, stores, banks, industrial sites, schools, and many other types of public and private property. Driving this growth in many parts of the world is a new technology for increasing the coverage and quality of video surveillance: IP video surveillance technology. This technology is so much more effective and efficient that, according to a prediction by IP Video Market Info, "IP video surveillance product sales will increase by 200% total between 2010 and 2012, significantly disrupting and overtaking analog CCTV sales." In a 2010 report, IMS Research notes that even during the global economic downturn, when the global analog video surveillance market was forecast to have "contracted by more than 5% in 2009 the network [IP] video surveillance market grew by more than 18%." In another report, IMS Research estimates that about 50% of the surveillance market will be digital in 2013 and that the "introduction of high definition (HD) network cameras and the increasing adoption of open standards are expected to further accelerate the migration towards network video surveillance." Why the growing interest and sales in IP video surveillance systems? Because these systems provide so many performance and cost-saving advantages: IP video surveillance systems enable camera placement practically anywhere on the network. Cameras can be connected and networked just like a computer or any other network device, attaching directly through standard Ethernet connections or wireless networking technologies such as 802.11 (a, b, g or n). There is no need for complicated proprietary hardware and dedicated monitors. Standard COTS (commercial-off-the-shelf) components can be used for everything from storage servers to clients for viewing live and recorded video. You can increase frame rates and storage any time by adding standard components, such as more servers and hard drives. Live camera feeds can be accessed from any authorized computer, laptop or other device (such as smart phone) using a wired or wireless Internet connection. Many IP video surveillance systems scale easily from one to unlimited numbers of cameras in increments of a single camera. There are no mandatory 4- to 16- channel jumps such as those required when using digital video recorders (DVRs) to digitize networked analog cameras. Page 4

Many IP video management software products enable centralization of operations so a control room isn't needed at every location. Monitoring functions for remote locations can be centralized in a single control room, enabling a higher level of surveillance with less people. The increasing popularity of IP video surveillance is rapidly eroding support for analog systems. Analog video surveillance equipment, by its very nature, does not possess the flexibility or integration with computer networks that an IP video surveillance system does. The growth in IP video technology can be partially linked to how incredibly easy it is to use and install. Unlike an analog system, the flexibility of IP allows for data to be quickly analyzed from anywhere. Another key advantage to moving to IP video surveillance is that most organizations have trained and dedicated IT personnel who can help maintain and expand the system once it has been designed and installed by a system integrator. Since IP video surveillance technology works much like any other IP network hardware and software, it's relatively easily to install and maintain. What s more, the user interfaces for most IP video management software make it easy to train security personnel in how to use the system. The staged approach Many analog closed circuit television (CCTV) video surveillance users take a staged approach to their transition to IP video surveillance. Instead of tossing out their analog equipment, they run hybrid IP network-analog systems while they wait for their analog equipment to reach its natural end of life. This is particularly easy to do since many IP video surveillance management software solutions (e.g., Milestone XProtect ) can handle digitized video from DVRs and analog cameras with video encoders. This enables the management of all surveillance video (from both IP network and analog cameras) from a single software product. Mobility as a driver Smart phones, such as the iphone, and the latest generation of Blackberry devices and other handhelds are creating new expectations for being able to access the Internet and networks on-the-go. People are beginning to expect everything to be at your fingertips in and outside of the office. For this reason, many companies are turning to IP video surveillance systems. In fact, the ability to access video surveillance cameras from smart phones is showing up as a typical requirement in requests for proposals (RFPs). Many open platform solutions (a good example again is Milestone XProtect) already have a number of applications created for accessing live and recorded video from smart phones and other handheld devices. This trend should continue to grow in importance as more organizations discover the advantages of having security officers and other personnel being able to access video while on patrol and off site. Page 5

Megatrend 2: The rise of IP video surveillance experts The transition to any new technology is often slowed down by the lack of expertise in it. In regards to IP video surveillance, many thought the installation, operation and maintenance would simply be taken over by IT departments. This assumption overlooked the importance of security departments and their knowledge of regulations, security procedures, processes, camera placements, and many other facets of security operations. What's really happening in many organizations is a convergence of IT and security knowledge where some IT personnel are crossing over into security and some security personnel are crossing over into IT. Resellers and system integrators of video surveillance systems have had to also develop in-house IT expertise. Likewise, some IT resellers are beginning to hire specialists in IP video surveillance to meet the needs of this growing market. The learning curve on both sides has slowed the progression to IP video surveillance. For instance, just because a person is an expert in data storage doesn't mean they're an expert in video storage. Security officials have had to learn about the IT requirements of IP video surveillance technology and how to buy and run systems that meet the needs of their organization. IT organizations, on the other hand, have had to learn the needs of security and best practices for integrating IP video surveillance systems into existing networks or setting up independent networks for video. The data world most IT professionals deal with requires transmission and storage of a lot of relatively small files that get aggregated. Video surveillance, on the other hand, generates a lot of very large files. Consequently, these video files require a different approach for tranmission, storage and sharing. For example, the RAID configurations that are good for data are not necessarily the ones you need for video. What's more, the constant data writing requirements of video for first day capture and storage call for the use of more resilient drives (solid state or iscsi disk arrays) than typical SATA drives though SATA drives are great for long-term video file storage). As the number of people who develop a specialty in IP video surveillance systems grows, so does the popularity and spread of these systems. Many in the industry see this as beginning to snowball now. One thing still slowing it down though is the large number of building architects and engineers who have failed to learn about and adopt this technological trend. Many architects and engineers are still specifying the antiquated analog video surveillance systems they're used to rather than the more effective IP video surveillance systems which are a better overall value. In fact, in greenfield (new building) situations where computer networking is being installed, IP video surveillance makes much more sense than installing a separate network of traditional and expensive coax cable to Page 6

connect analog cameras. As a new generation of more IP technology-savvy architects and engineers takes over, these outdated practices should end. The importance of value-added software and services over price With the development of IP video surveillance equipment, many thought that the industry would follow the typical technology path of low prices, low margins, and a dependence on volume for profitability. This has certainly been true for many of the products, including IP network cameras. But video surveillance is an industry where one size does not fit all and many companies that have tried to provide inexpensive video surveillance management software have already gone by the wayside. The best value is being achieved by the video management software companies that have invested in developing open platforms offering true value in terms of features, capabilities, flexibility and scalability, as well as training the channel to properly set up the system to each customer's best advantage. This is why a company like Milestone that has trained 5,000 resellers and system integrators on its products so far (and will train up to 4,000 in 2011 alone) commands so much market share. Page 7

Megatrend 3: Better image quality at a competitive price What the world has seen happen to the film camera industry with the rapid adoption of consumer digital cameras is also the eventual fate of analog surveillance cameras. The digital technology of IP network cameras simply makes more sense from a networking perspective and provides better quality images for a competitive price. This image quality advantage will continue to grow as the technology continues to advance and mature. A 2010 report from the market analyst firm In-Stat notes that the growth in IP network cameras surpasses analog cameras. A study from International Data Corporation (IDC) enitled "Monitoring the Network Surveillance Market Chain" predicts the market for IP network cameras will increase from $9.3 million in 2007 to $26.5 million in 2013. That's almost a 300 percent growth rate. One of the biggest drivers is image quality. This is important because one of the knocks for years on analog video surveillance cameras was that their image quality often wasn't good for identification of suspect or to stand up as evidence in court. Murky images could do little to help authorities identify perpetrators or convince juries. IP network cameras change that. They can provide up to 16 times the resolution of traditional analog cameras. They also cover larger areas and offer superior digital zoom capabilities. In fact, today s IP network cameras provide rich enough detail to read the numbers on a license plate or the name on an ID badge. Two things driving the increasing popularity of IP network camera are dropping prices and the superior performance and feature set of inexpensive IP network cameras compared to analog cameras. According to IP Video Market Info, inexpensive mainstream IP network cameras that provide 720 pixels (a.k.a., 720p) of vertical resolution the threshold for high definition (HD) are the new sweet spot. These cameras, also referred to as 1.3 megapixel (MP) cameras, deliver a clear, sharp picture. Compare this performance to analog cameras which, limited by PAL/NTSC standards, at their best deliver 0.3 MP. This severely limits the amount of detail. Prices of lower end megapixel cameras are being driven down by increasing competition (including competition from Korea, Taiwan and China). What's more, the increasing adoption of open standards (such as ONVIF and PSIA) by camera manufacturers mean more of these inexpensive cameras are supported by leading video management software platforms. Low cost IP network HD cameras provide a good compromise between resolution and bandwidth, and manufacturers are beginning to exploit this opportunity. IMS Research predicted in 2009 that the megapixel and HD market would reach a new level of maturity in Page 8

2010, with manufacturers focusing less on pixel count and more on other important factors, such as camera quality, low light capabilities, sensor size and dynamic range. In IMS Research s World Market for CCTV and Video Surveillance Equipment 2009 Edition report, one and two megapixel cameras were forecast to represent nearly threequarters of megapixel camera shipments in 2010. As network camera manufacturers increase the number of such low megapixel network cameras in their product portfolios, IMS Research sees the price of these cameras falling sharply. Bottom line, organizations can go the cheap route by sticking with analog cameras, but in the end, they won't get the performance and effectiveness that creates value. Plus, they'll be throwing money at an antiquated technology that is on its way out. It's like buying a consumer film camera today for $90, when for $150 you can get a multi-megapixel pointand-shoot that will deliver much better images and a host of other features. For this reason, the trend towards IP network cameras for video surveillance continues to grow while analog camera sales decline. Easier networking IP network cameras also have the advantage of being connected to the network through inexpensive CAT 5 cable and using COTS switches, hubs and routers for easy network expansion. Compare this to the complexity of having to cobble such a IP network connection for analog cameras using encoders or expensive proprietary DVRs. What's more, as an added advantage, many IP network cameras also offer two-way data and audio transfer, allowing them to exchange information with almost any digital device, whether to activate a door lock or allow a service station attendant to communicate with a customer. More manageable file sizes As the popularity of IP video surveillance increases, so do the demands for storage and bandwidth. Fortunately, better video codecs continue to improve data compression, easing bandwidth and storage demands per camera. (Codecs are software that encode a data stream for transmission or storage and decode it for viewing and editing.) A good example is H.264. This codec delivers the same quality as the compression format MPEG-2 at a third to half the data rate. Compared to the newer MPEG-4, H.264 provides up to four times the frame size and typically achieves a 40-50% reduction in the size of a video file. For IP surveillance systems, H.264 means sharper images, as well as reduced bandwidth and storage requirements. For the reason, the growing use of H.264 is having a significant impact on enabling both more powerful surveillance performance and much more efficient use of system resources. Page 9

Megatrend 4: Video analytics will be a value-add The performance and capabilities of video analytics (the use of computer algorithms to intelligently monitor real-time video for specific actions) has not yet lived up to its loftier promises. There's still much work to do to meet the high expectations created by the initial hype. However, the future of computer vision is promising. A recent article in the New York Times ("Computers That See You and Keep Watch Over You," January 1, 2011), notes, "High-resolution, low-cost cameras are proliferating, The cost of storing images is dropping, and new software algorithms for mining, matching and scrutinizing the flood of visual data are progressing swiftly." While organizations wait for the video analysis industry to mature, there are several wellestablished applications where video analytics has been proven to be reliable and cost effective. These include motion detection, crowd detection, counter flow detection (noticing when someone or something breaks boundaries set in the camera's field of vision), license plate reading, people counting, and detecting left-behind objects). While video analytics won't be a major factor in IP video surveillance sales in the immediate future, it still is a great value-add that can reduce the number of people needed to monitor live video and make it easier to locate particular incidents in recorded video. In buying an IP video surveillance system, there are two key considerations to make in regards to video analytics: where to run the analytics (on cameras or on servers) and how to handle the integration of analytics with the video management software. Video analytics at the edge Video analytics can be performed in two fundamental modes live and post processing. For low-end live analytics (identifying actions or objects in real-time), the best place to locate the analytics is often at the edge, i.e., the camera. This can significately reduce storage and bandwidth requirements. Cameras with built-in video analytics can be set up to activate an alarm for security staff and record activity only when motion (or another criteria, such as crowd formation or a person moving the wrong way through a security zone) is detected. A number of camera manufacturers are offering cameras with such built-in video analytics capabilities. To lessen false alarms and ensure proper operation though, it's very important these cameras be set up according to manufacturer specifications. Failing to do that is often the reason video analytics don't perform as advertised. Video analytics at the server Some video analytics, particularly high-end live and post processing analytics, are librarybased. Their algorithms and data require much more resources in terms of CPU and RAM than available on a camera. These video analytics are usually centralized on a dedicated Page 10

server and deployed to search video using a variety of parameters, such as license plate numbers that aren't authorized to enter a restricted area. Analytics can make short work of reviewing live and recorded video for possible events and having the operator validate them. This enables a video surveillance system to capitalize on the strength of computers in processing large amounts of information quickly and the strength of security personnel in being able to look at the result and determine whether an action needs to be taken. Video management software considerations for analytics Video analytics may not currently influence many IP video surveillance purchases in the near future, but it should play a role in the choice of video management software now. By selecting an open platform video management software solution, IP video surveillance system buyers open the door to adding video analytics later when the capabilities improve. Buying an open platform solution future proofs a video surveillance system investment for when video analytics comes of age. In fact, some open platform video management software solutions, such as Milestone XProtect, already have a proven framework for handling server-based (including library-based video content analysis) and edge-based video analytics. This saves having to go through a painful change of video management software when sometime in the future video analytics are desired. Page 11

Megatrend 5: "Open platform" video management software A key technological advantage in the migration to IP video surveillance technology is the ability to move to an open platform. An open platform is a software system with published external application programming interfaces (APIs) that allow other companies and developers to develop products that add additional functionality and versatility to a solution such as IP video surveillance. These solutions then enable the platform to both meet more specialized needs and serve a wider variety of purposes. Compare this with the closed nature of the proprietary DVR/NVR solutions that have been popular in recent years for recording analog camera output and enabling transmission on on an IP network. These closed systems typically lock an organization into a single manufacturer for applications, support and replacement parts even replacement hard drives. There is little choice and no price competition. What's more, these proprietary DVR solutions scale in multiples of eight cameras, which makes it expensive to add a camera here and a camera there. (Note: Proprietary DVR/NVR systems are not to be confused with DVR and NVR systems designed to work with open platforms.) Open platform IP video management software solutions, on the other hand, enable organizations to choose from a wide selection of COTS servers, cameras, and other components from hundreds of manufacturers. What's more, they enable organizations to update technology (such as servers, clients, cameras, video analytics, etc.) selectively and avoid the extensive ("forklift") upgrades required when a proprietary DVR system and their cameras reach their end of life. Advantages of open platform IP video management software Hardware and software independence. As described above, open platform IP video surveillance software allows organizations to choose best-of-breed (and price) components from a wide range of manufacturers, not just one. In fact, selecting an open platform with an extensive ecosystem opens up an enormous marketplace of proven solutions that helps lower total cost of ownership (TCO) and provides greater flexibility in meeting evolving security or other surveillance needs. For example, a major reason for Milestone XProtect software's success is that it provides an open platform with a well-documented software development kit (SDK). This open platform continues to attract new Milestone Solution Partners from all over the world. Today about 300 partners have integrated the Milestone XProtect IP video platform with such systems as access control, Point-of-Sale Page 12

(POS), analytics, biometrics, HVAC and building automation, ERP, RFID, production, logistics, and more. Protecting existing investment. True open platforms, particularly those backed by a large ecosystem and strong ongoing support for external hardware and software solutions, enable organizations to continuously to take advantage of new advances as they become available. For example, in video surveillance that means an organization will be able to add in the future new cameras with advanced capabilities that cannot be anticipated today. With an open platform, an organization will be able to continually keep its options open for the best deal, the best innovations, and the best return on investment (ROI) over time. Video-enabling. By combining IP network cameras with other applications and systems not just for surveillance, it's possible to "video enable" processes to improve productivity and safety, and achieve ROI. (This is a megatrend that will get further discussion later in this paper.) Scaling and interoperability. No-growth is a bad strategy for any video surveillance system. Most organizations grow over time and so do their video surveillance needs. But while installing an IP video surveillance system does make it easier to add cameras and other components, it doesn't guarantee interoperability. Interoperability requires an open platform solution. Used in front of a product (such as in "IP" network camera), "IP" simply means the product will use the Internet protocol to exchange data. There is no guarantee that two IP-based products will plug and play and instantly be useful together. Choosing a true open platform IP video management platform ensures the greatest amount of choice in selecting cameras and other components, the greatest ease in setting them up to work together, and the least amount of trouble in scaling the system as it needs to expand. Consolidation in video management software vendors As the IP video management software industry continues to mature, organizations are choosing vendors offering proven open platforms that have developed ecosystems around them. These are the companies that have prevailed in this relatively new industry and have products that install well, integrate with other security products, perform as advertised, and that are supported by system integrators and resellers. For organizations, this means tried and true solutions that are ready to go today from established solution providers. In terms of market share, Milestone Systems is the leading IP video management software vendor. According to IMS Research in its latest report, "The World Market for CCTV and Video Surveillance Equipment 2010 Edition," Milestone Systems is listed again as the Page 13

number one provider worldwide of open platform network video management software. The report found that Milestone Systems increased its market share and maintained the top position it has held for the last six years. Page 14

Megatrend 6: More focus on the user interface Video management software is the window into the entire video surveillance system. It is the component that provides access to all the information available in the system. It defines the user experience, whether it's an administrator needing to go into the system and authorize a new user, or a security officer needing to view live and recorded video of an entry in response to an event. The video management software is responsible for the workflow with respect to alerts, alarms and events. And it can be, if it's an open platform with the ability to integrate other security systems, the platform that unifies security operations under one user interface. As video management software becomes richer and richer in features and functionality, the video management software vendors who can make it easy to access and use these features will prevail. Client user interfaces must: Adapt easily to a person's role and access needs, hiding unnecessary functions and controls to avoid confusion Enable instant, intuitive control of cameras and other connected security devices (such as lights, speakers, door locks, gates, and input/output devices Display views from multiple cameras and provide integrated PTZ (pan-tilt-zoom) control for individual cameras Allow fast access to alarm messages and corresponding cameras Allow playback of recorded video from a camera while also enabling live monitoring of what's happening right now Offer multi-layered interactive map views that allow personnel to click quickly to the cameras and other system components they want to access Provide excellent search features that enable quick access to incident recordings and easy export of evidence Better management. The trend in video management software is to provide a comprehensive solution that enables cameras to be dynamically managed from anywhere on the network and intelligently distribute alarms, alerts, and associated video to the appropriate decision makers and devices (such as cell phones or PDAs) wherever they are located. This empowers more effective collaboration and timely response to emergency situations. Management features to look for include: Ability to support unlimited cameras, devices, users and servers Centralized control of all operations from a single interface Automatic device discovery (including camera model detection) and system configuration wizards Page 15

Flexible rules system and intuitive interface for easy configuration and management of large and complex video installations Lots of integration options for incorporating other security devices and systems or being integrated into their interfaces Page 16

Megatrend 7: Integration with other security devices and systems Imagine a video surveillance system capable of identifying an intruder and locking all adjacent doors to seal the intruder in until police arrive. Or imagine a video surveillance system that recognizes unauthorized personnel have entered a corridor and sends an email alert to security, plus instructs each camera in the network to follow the intruders' movements and relay them to security. A big advantage of an IP video surveillance system is that because the system is connected to an IP network, it can use the network and interact with other network devices. Naturally, open platforms with extensive APIs and well documented software development kits (SDKs) make it much easier to integrate with other security elements. Finding innovative ways to leverage this connectivity is a major trend in efforts to improve security, reduce risk, and increase the overall value of the surveillance system. Since most IP network cameras have digital inputs and outputs (I/O), it is possible to integrate them with other security devices, such as alarms, sensors, lighting, gates and doors. For example, alarm devices or sensors can trigger properly connected and programmed cameras to start recording and transmitting images to a specific destination, or initiate a process where the camera sends e-mail alerts complete with video clips to a mobile phone. Camera outputs can be used to enable cameras to turn on lights, set off alarms, close or open doors, or other actions. Integration with POS devices can enable pinpointing an action, such as the swipe of a credit card or the cancellation of a transaction to alert the immediate IP network camera to save the six seconds of video both before and after the action. This allows a security or loss prevention team to collect only the data they are interested in and it can even be categorized by the checker on duty or other criteria. Integration of video surveillance resources with other systems should continue as a major trend over the next decade not just for the ability to put security systems under a single interface and maximize the effectiveness of the overall system, but also because of the ROI potential of video enabling a variety of operations within an organization. (More on this in the next section.) Page 17

Megatrend 8: Realizing ROI by using video for process control IP technology is doing more than revolutionizing security surveillance. It is providing opportunities to improve the bottom line by enabling the use of networked video for process control. Already valuable tool for security surveillance and protecting against liability for work injuries and other accidents, video becomes even more valuable when it is also used for monitoring business processes. For instance, a chain restaurant could install an IP video surveillance system for security, but then also use it for loss prevention (monitoring activity at the register, as well as in food storage areas) and process optimization. This could include ensuring workers wear gloves, properly greet and treat customers, follow procedures for food handling and serving, etc. A hospital could use video to make sure doctors and nurses wash their hands and thus help reduce costly infections. Waste Management, a U.S. recycling and waste management company with over 2,200 locations, uses video analytics for business optimization activities such as improving traffic patterns. Retailers use video to obtain information about customer flow, hot spots (places within the store that are most frequented by customers), checkout traffic, product placement, and in-store advertising effectiveness. Other examples of using video for uses other than surveillance include: Businesses using video systems to improve customer service and sales by collecting information about customer behavior in banks, retail stores, grocery stores, gasoline stations, and other locations. Distribution warehouses using video for loss prevention (making sure trucks are completely loaded and unloaded). Museums using cameras to track traffic patterns and devise ways to increase museum store and cafe visits. Building designers using cameras to study traffic flow to improve interior design. Toll roads employing video to monitor vehicle flow and improve response to traffic incidents. Transit companies using high resolution cameras to continuously inspect train pantographs (the metal frame on top of an electric locomotive that picks up electricity from cables hanging above the track) for suspicious anomalies suggesting defects. Semiconductor fabs using video monitoring cleanroom procedures to guard against contamination. Page 18

Utilities operating wind turbines or other equipment in remote locations installing video to monitor critical machinery and reduce costly trips for visual checks by maintenance personnel. Training departments repurposing clips collected during surveillance or process control monitoring to create training videos. In general, once video is networked and available throughout a facility or site, there are many more ways to use it than security surveillance. By choosing an IP video surveillance system run on open platform video management software, organizations open the door to deploying a number of business process control applications now and in the future that can deliver value beyond the security benefits of the system. A centrally controlled, IP video system can enable organizations to make more accurate and intelligent decisions in sales, marketing, HR, supply chain systems, and many other areas. In fact, as data mining techniques improve and move into the mainstream, it will become easier for organizations to search video for patterns, relationships and trends that will help them improve their customer service, interactions, and responses to a wide variety of events. Page 19

Megatrend 9: IP video surveillance and the cloud One of the biggest developments in recent years is Internet-based computing, more commonly known as cloud computing. A new model for the consumption and delivery of IT services, cloud computing abstracts the infrastructure from its users, providing them with software, data and storage on demand through the Internet. The provider of this service could be in the hinterlands somewhere, but, in terms of performance, it could seem almost as if they're in the same building. A big advantage is that the sharing of infrastructure among organizations removes the responsibility for maintaining IT infrastructure (including application licenses) from these organizations and transfers it to the hosting provider. The disadvantages include entrusting someone else with the preservation of valuable (and potentially mission-critical) data and the potential for higher costs than if IT needs were handled in-house. Cloud computing is still a new industry and, for video surveillance purposes, best suited for applications with just a few cameras and not a lot of video data that needs to travel over the Internet. The biggest inhibitor for using cloud computing for video surveillance is cost. Video is bandwidth-intensive and requires large amounts of storage space both items that drive up cloud computing costs. It could be anywhere from 5 to 15 years before costs go down enough to make managed cloud services economical enough for largescale video surveillance operations. Where cloud computing can make sense is for installations like chain stores where each store has a few cameras or businesses like alarm companies that use video verification to check on alarms at homes or small businesses. A hybrid form of cloud computing for video surveillance might also emerge. In this model, video would be recorded and stored locally, but other aspects of the video surveillance operations would be handled by the cloud provider (such as hosting the video management software and other applications). Page 20

Megatrend 10: Improvements in storage costs and reliability A big advantage for organizations moving from analog to IP video surveillance is that digital video storage is less costly and requires less space than analog video storage. This represents significant savings for surveillance operations that need to record massive amounts of surveillance video. Casino security systems are a prime example. Until recently, casinos required a room full of VCRs to record the video feeds from the dozens of cameras keeping an eye out for cheaters. Today, a small stack of video servers can replace a room full of VCRs. Running video surveillance on an IP network enables greater archiving capabilities and storage reliability. Recorded video can be transferred over the network to off-site storage. IP storage components also make it less expensive to increase redundant infrastructure (server and storage architecture) to provide backup storage. The key is making open platform IP video management software the hub of the system. Open platforms make it possible to use standard server and network equipment for redundant systems and replacement, rather than having to depend on considerably more expensive proprietary solutions. As the industry matures, video storage options have become better and more reliable. The latest installations are using Small Computer System Interface (SCSI) drives for first-day recording and Serial Advanced Technology Attachment (SATA) arrays for archiving. This improves both write performance and reliability since SCSI drives are fast and more reliable for applications that frequently write to disk, such as first-day recording. SATA drives, though less expensive, are not designed for the frequent (24/7) writing to disk required in first-day recording. They are best deployed as a cost-effective solution for longterm archiving. What is next? Solid state drives built entirely from flash memory and having no moving parts offer dramatically improved performance. These drives have read and write speeds that approach 100 Mb/s (many times faster than today s fastest hard drives), plus have no moving parts for greater reliability and resistance to impact. Mean time between failure (MTBF) is almost 2 million hours nearly 228 years! Solid state drives are ideal for firstday storage. They also provide energy-efficient edge device storage, consuming about half the power of a standard hard drive. This can be a real advantage in power-constrained situations. Page 21

On-board edge storage An important adjunct to central storage is edge storage on the device (camera). This enables video to be captured even if the camera is disconnected from the network or for some reason the network is down. Edge storage records audio and video as digital data in the on-board storage of cameras. This on-board storage is typically memory cards (such as those used in consumer digital cameras), built-in flash memory, or small hard drives. Combining edge storage with central storage provides greater fault tolerance. Incorporating edge storage can: Increase system robustness over unstable networks like wireless networks Provide additional recording redundancy during system failures or maintenance downtime Supply a superior solution for handling the video data recorded by mobile units that go in and out of network coverage (video can be transferred to the recording server when back online) One video management software product that has particularly embraced this trend is Milestone XProtect Corporate. It makes edge storage extremely easy to deploy. Once cameras supporting edge storage are integrated in the surveillance system, operators have seamless access to the recordings whether they have been recorded on the recording server or a camera's edge storage. A particular advantage of Milestone XProtect Corporate's support of edge storage is the software's ability to retrieve recordings from onboard storage after system failures. This allows cameras to function as failover/redundancy devices and increases the overall robustness of the video system. Page 22

Conclusion The biggest megatrend of all is the move to IP video surveillance. Call it a paradigm shift, a sea change, an inflection point, a quantuum leap, or any other phrase signifying major change, but it's here to stay. IP video surveillance is transforming not just video surveillance and other security operations, but the very business processes on which organizations depend. Any organization looking to move from analog to IP video surveillance should start by selecting an open platform IP video management software solution that will enable them to take advantage of all of the megatrends discussed in this paper. Things to look for in a open platform IP video management software solution and the company that makes it include: Leadership and a solid track record in the industry Unlimited integration capabilities through extensive application programming interfaces (APIs) Well documented software development kits (SDKs) Continual upgrades and expansions to the SDK Training programs for third-party programmers and system integrators Project consulting and engineering for customized or comprehensive integrations An extensive ecosystem of partners that includes leading hardware and software vendors (particularly top camera manufacturers and video analytics companies) as well as system integrators, and security system manufacturers The biggest danger in these changing times is being left behind by choosing a proprietary solution that locks you into a single vendor for nearly all your needs. For the first time, video surveillance is being freed from the shackles of proprietary solutions and receiving all the scaling, efficiency, performance, and versatility of an open platform. Those who enter this new age on the right foot will gain the most now and for years to come. Page 23

Page 24

About Milestone Systems Founded in 1998, Milestone Systems is the global industry leader in true open platform IP video management software. The XProtect platform delivers powerful surveillance that is easy to manage, reliable and proven in thousands of customer installations around the world. With support for the widest choice in network hardware and integration with other systems, XProtect provides best-of-breed solutions to video enable organizations reducing costs, optimizing processes, protecting people and assets. Milestone software is sold through authorized and certified partners. For more information please visit www.milestonesys.com Milestone Systems Headquarters, DK Tel: +45 88 300 300 Milestone Systems US Tel: +1 503 350 1100 Page 25