Next week in Las Vegas at ISC West 2011 Niscayah will be introducing a new offering that enlists other integrators and dealers in the sale of a Niscayah service. The service which we have named InSight 24/7 is a video hosting service similar to what we are now providing at our corporate offices in Atlanta and which we call internally Hosted Always. The concepts are nearly identical; selling space on servers outside of a client’s facilities to store video. The only differences between what we are presently offering and what we will be offering going forward will be where the video will be hosted and the channels we utilize to get to market and generate sales and revenue. However, we want our entire sales force to be knowledgeable about our new program in order to be an advocate for potential dealers or integrators you may meet.
We introduced Hosted Always back in the fall after more than a year of research. As a result we now have almost 200 cameras sending video to our servers and being stored for our customers convenience and savings. Since that time we have performed additional research and worked with our Champion Partners, Axis and EMC, in order to assemble and deliver an offering unique in the marketplace. The offerings we will be providing through the dealer program will be identical to our internal offerings to our clients. The design of the program is to enlist those dealers and integrators who do not typically service our geographic or caliber of customer markets and segments, hence we are not looking to create competition for ourselves, but to scale a unique and profitable offering quickly.
InSight 24/7 will enlist alarm dealers and smaller integrators in order to scale the opportunity faster. As part of our program we will provide them with marketing materials, favorable discounts on Axis hardware from Anixter for our hosting program only and a partnering relationship with an international provider to deliver a new offering unique in their marketplace. The same marketing materials will be incorporated into Niscayah’s InSight 24/7 marketing materials. The additional market research specific to remote video hosting has revealed the following facts:
- 44% of current analog users surveyed plan to go to IP within next 2 years
- Users’ greatest challenge is managing the growing volume of surveillance data
- Other top challenges: On-site camera and DVR/NVR failures, high cost of service calls, search and retrieval
- 61% of respondents would consider outsourcing their entire video surveillance infrastructure to a service provider
- Why? More cost effective, lower CAPEX and centralized break fix
- Respondents believe by a 2-to-1 margin that it is easier to get budgetary approval for OPEX rather than CAPEX
These are just a few of the reasons why we are taking this proactive approach, why the market is developing and why it is important that our entire sales and engineering force is aware of this new program. There will be additional information and details provided shortly on our offering as well. Please direct any of your inquiries to Ray Dean, Bob Stockwell, Duane Richendollar or Ed Meltzer.