As the first installment in a series of Q-and-As on cloud and OEMs, Tim Pavlovich, Services Consultant with Dell OEM Solutions, will explore why OEMs in the video surveillance market should take a hard look at how they deliver their solution today and the opportunities it may be costing them in the long run.
Can you describe the typical OEM video surveillance solution today?
Pavlovich: Video surveillance or video security solutions are typically on-premise solutions. So today, all the hardware including cameras, sensors, digital video recorder and security software are scoped for specific locations like doctors’ offices, retail establishments, airports, etc. With this comes custom requirements for the security integrator (OEM) to consider when installing and supporting these solutions at each of their customers’ locations. This model requires high upfront costs and ongoing support programs on the backend.
What trends are you seeing that suggest this traditional approach may be changing?
Pavlovich: I’ve been talking with security integrators (OEMs) in this space and it’s clear that three main trends are impacting this model.
So what does any of this have to do with the cloud?
Pavlovich: With the trends I just mentioned, I actually think it has more to do with the OEM’s fundamental business model than the cloud. The cloud is a way for them to enable a more cost-effective, competitive business model. Let me explain.
When talking to these global security providers, they are facing tremendous competitive pressures. Many OEMs in this space are pursuing large, national contracts with businesses like coffee shops, pharmacies, convenience stores, fast food restaurants, etc.. The challenge is that they’ve already squeezed out all the costs in their current model and are looking for new business models that not only offer cost savings but also a differentiating value proposition to their customers. This is where cloud can help them.
So what could a cloud-based video surveillance-as-a-service solution look like?
Pavlovich: There are options but here are details for one that we are helping our customers design.
It sounds like there are a number of new benefits that the OEM could realize with a cloud-based solution like that, correct?
Pavlovich: Absolutely. In addition to the benefits we’ve already discussed, cost and complexity reduction, offering a utility model like this to their customers gives the OEM the ability to sell into new markets and new geographies faster as well as provides them with a different and more predictable revenue stream. And, overall, they can reduce the burden on their technical support resources by minimizing the onsite installation and maintenance of IT hardware.
So how do you recommend an OEM in the video surveillance get started if they are considering changes to their business model and whether or not the cloud is for them?
Pavlovich: We have a variety of services to help them on their journey to the cloud starting with an initial workshop through assessment and design steps to determine the best strategy needed to achieve their goals for their service offer. We’d also help them scope roles that either Dell or the OEM plays when it comes to implementing and supporting the solution. We can help them determine whether they need the tools and training to do it themselves or if they’d like Dell to do it for them. With Dell™ Cloud with VMware® vCloud™ Datacenter Service and our global support infrastructure, we are equipped to help our OEM customers tailor a solution that allows for the flexibility and value that their customers require.
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