Just How Powerful Is Network Video?

One of the most successful methods of buying and selling securities involves “momentum investing.” Purists may ask how you can make an informed investment decision if you don’t know the price-earnings (P/E) multiple, book value, cash flow and balance sheet details. It’s a fair question.

Yet logic tells you that, even if you can’t answer the purist’s questions in detail, there’s an unmistakable power supporting the momentum of a share price that continues to rise. What do other investors see that prompts them to allocate money from another place to assets with rising prices?

This question of momentum power — which we call trend diagnosis when we help companies with their product planning — now affects the security industry in a major way.

Networked Video Hits Its Stride
We’re now approaching the 5-year mark of 9/11, the day that transformed the industry from a quiet, growing business into one of the major growth industries in every developed nation across the world.

Leading the vanguard of this trend is the network video business, which includes strong vectors in its overall trend such as IP, intelligent and mobile video. These areas of advancement add to the power of the network trend since so much new technology is now possible that the trend’s momentum will likely continue for years to come. What is it that’s convinced security people everywhere that network video is the strongest industry growth segment among the major product categories? We already know that “a picture is worth a 1,000 words” of course. But the deeper appreciation is for the revenue potentials in this business. There’s a wide range of products needed to fully engage in the network market, and almost all have strong futures.

Convergence Further Ignites Trend

We measure power and influence on a 5-point scale among business groups affected by that power. As the chart shows, there are six product groups that systems integrators give ratings of 4 and higher, and another five with ratings of 3 and higher.

We’ve seen many integrator forecasts, and you rarely see a chart this strong. DVRs, NVRs, remote video storage, smart cameras and additional products like intelligent video software and high definition cameras all promise strong future sales.

Add to this network video trend the network convergence trend and all the methods by which physical security and information security operatives can merge their networks while simultaneously securing them, and you have a huge growth potential for a strategic and product-rich business.

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