It’s not just about money, or how I came to believe in video surveillance as a service.

For several years, to install video surveillance at different objects, I tried to use a classic system based on an on-premise model, since cloud-based services based on the VSaaS model (video surveillance as a service) did not inspire me with sufficient confidence. I learned that many big businesses preferred to choose a traditional security system because they perceived cloud services as not fitting into their budget.

Since then, I have started to use video surveillance in the cloud. I understand that for many clients it is more profitable and convenient to choose a rental, but, using examples from my past projects, I want to show that the price of a classic system increases during its use, and also that its support is more difficult. I will make approximate calculations so that it becomes clear how much the same system will cost in a cloud-based model.

I took the following prices from projects that I was involved in during the last year. If any significant price changes have occurred, I have replaced the data.

Comparing only money: small business

Below is an estimate that was calculated a year ago for a chemical fertilizer company. The company is small, with only 7 employees. They need to install 2 cameras to monitor the premises.

1. 2 HD cameras — 2 *$80=$160.
2. DVR with an uninterruptible power supply unit (in case of power surges) worth $400–1 pc.
3. Disk (data storage duration 2 weeks) $ 100–1 pc.
4. Router costing from $50–1 pc.
5. System installation and configuration — from $200

We get that about $910 will be required to launch the on-premise system. Now let’s make a calculation using the VSaaS model:

1. 2 HD cameras — 2 *$80=$160.
2. The service fee (2 cameras) costs from $ 50/month.
3. System installation and configuration — free

We get that it will take about $ 210 to launch the VSaaS system.

Let’s imagine that we invested all the necessary funds to launch the on-premise system at the very beginning, no new expenses will be needed. Below is a graph showing a comparison of investments in these systems.

The graph shows that the cloud storage system caught up with the traditional one in cost near 1.5 years. If you think about it, though, it becomes clear that additional money will have to be invested in the traditional system. For example, disks often fail and will need to be replaced, and you will need to hire someone to maintain the system. These costs will make adjustments to the schedule.

The company mentioned above chose the cloud. And here it is not only about cost but also about convenience. They often changed office space, so it was easier for them to move. The cameras had to be removed and installed in a new room.

Those who are closer to traditional systems may start to voice their objections, the same was with me myself: “It’s just a small company. Such companies can only set plans for a couple of months ahead, so it is better to look at ROI on the example of big business. ”

So let’s compare the systems for a large company.

Let’s compare only money: a medium company

Below is the estimate we calculated for a medium company in New York with several offices. Its employees are located in one business center on the entire floor, so it is necessary to install 25 cameras on the floor.

1. $ 400 camera — 25 pcs. 25 x $ 400 = $10,000
2. Digital video recorder (DELL for example) (disks for 30 days) worth $8,000 (1 pc)
3. Professional software (to control IP cameras) worth $1,000–1 pc.
4. System installation and configuration — $10,000
5. Maintenance -$500/month

We get that $ 29,500 is needed to launch an on-premise system.

Now let’s make a calculation using the VSaaS model:

1. Camera worth $300–25 pcs. 25 x $ 300 = $ 7,500 .
2. Service usage — $1,500.
3. System installation and configuration — $2,000

We get that $10,500 is needed to launch VSaaS

Let’s imagine that you have to replace something on the server 3–4 years after installation. Look at the graph.

Cloud-based services and traditional services will become equal in 1.5 years. But for on-premise, something will need to be replaced during this period of time. This company chose the cloud, although I tried to persuade them to go traditional. Now I believe they made the right choice: they did not have to pay for everything at once, and they split the payment for 1.5 years.

If there is a need to change something, then the cost of this may become more than the initial investment. I’ll show you how this happens in the next example.

Adding video analytics

The large Boston shopping center had its own video surveillance system. They had several local servers and about 120 analog and IP cameras. Its owners are going to improve the system.

They decided to do this in 3 stages:

1. A complete update of the IT infrastructure, replacing the cable network as well as the active network equipment. This is necessary to increase the network bandwidth and abandon analog cameras.
2. Updating servers and storage systems.
3. Installation of modern software.
4. Step-by-step replacement of video cameras.

We calculated the estimate and received the following figures:

● Network modernization — $70,000.

● Server upgrade — $80,000

● Replacement of existing cameras with less expensive digital models — $ 36,000 (120 pcs ).

● Installation of cameras and their configuration — $20,000.

It turns out that the cost of upgrading an on-premise system is $206,000.

After calculating the cost, our clients told us that they have another wish: the shopping center needs to be connected to the “ Smart city “ program. This requires video analytics modules such as:

● the detector of abandoned objects;

● face recognition;

● license plate recognition.

The video analytics system needs completely different cameras, as well as more space for storing files. Additionally, the bandwidth of the channel must be higher and, consequently, the budget must be increased.

Also, to mount cameras with face recognition, you must follow some rules: they need to be installed in a specific place and at a specific angle.

As a result, the estimate has grown several times:

1. 150 cameras worth from $ 500 = $75,000 .
2. Network modernization — $80,000 .
3. License for software that recognizes faces and numbers — $25,000
4. Video analytics servers — $80,000 .
5. Installation of cameras and their setup — $30,000.
6. Maintenance- $2,000/month

We get that the total cost is $292,000.

Now let’s make a calculation using the VSaaS model:

● Cameras — 150 pcs. of $ 300 = $45,000

● Video analytics module — include

● Active network equipment — $6,000

● System installation and configuration — $ 18,000

● Payment — $ 9,000 / month

We get that the total cost is $78,000.

Costs would catch up with an on-premise solution in 2.5 years

Unfortunately, in this case, the owner of the shopping center did not want to use a cloud server, although the costs for it would be lower. But I have to show it in any case that these cases are present in real life too.

Apart from financial costs, there were other problems. The project had to be split into stages as the budget was limited. No one was going to stop the work of the shopping center, so the replacement of old equipment with new ones took place while the old cameras were still in operation. This caused inconvenience to the security service since it turned out that two different systems worked in parallel and supplemented, and sometimes duplicated each other.

Bottom line

We have considered only a small part of the examples of unforeseen financial expenses. These expenses often arise from completely unforeseen reasons: errors at the design stage, abnormal situations, or neglect of maintenance. If the company is large, makes long-term plans, and is not going to change the office, then the local system is chosen.

The cloud is suitable in the cases indicated below:

1. The company is developing rapidly and plans to expand, and with it, the video surveillance system is expanding.
2. The company often changes, so it is necessary to quickly implement new technologies.
3. You need to secure your archive, while complex and expensive storage systems are not suitable.
4. The staff does not have its own IT specialist.
5. There is no necessary budget for launching a video surveillance system, so it needs to be reduced at the initial stage.

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