Report: IP Storage May Squeeze Out DVRs

Video surveillance storage will exceed $5.6 billion in 2013, which could lead to a decline of the DVR, according to IMS Research.  IT network storage, in particular IP SANs (storage area networks), is at the forefront of new enterprise surveillance projects, according to the research firm’s latest market report, “The World Market for Enterprise and IP Storage Used for Video Surveillance.”

The study forecasts network storage will account for more than 30 percent of world video surveillance storage revenues in 2013.  “Although the market is currently dominated by DVR solutions, network surveillance storage is gaining traction and is more scalable and flexible to the needs of some end-users,” says IMS Research Market Analyst William Rhodes.

There is currently a very large installed base of DVRs being used to record surveillance footage; however, some end users will replace DVR appliances with like-for-like solutions, according to IMS. The report also suggests that more forward looking end users are requesting new technologies such as network storage or video surveillance software as a service (VSaaS), which along with hosted video may drive the decline of the DVR.

“The target market for VSaaS vendors is small- to medium-sized businesses or residential deployments; essentially low-camera count installations with minimal recording capabilities and little requirement for constant monitoring,” adds Rhodes. “The market is currently small and nascent. However, if brought to the market in the right way and at the right time, it has the potential to disrupt the traditional DVR market.”

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