Video rises into the cloud
News continues to pour in on the portential of cloud-based services, especially on the heels of Security Systems News' Cloud+ conference, which brought early adopters of the cloud together in Austin, Texas, to look at how the security industry will continue to adopt and leverage the cloud, not only to increase RMR but to provide better and more cost-effective solutions for customers.
Many of the Cloud+ speakers, from integrators and consultants to end users and manufacturers, highlighted the many challenges of educating people on the benefits and solutions the cloud can provide within security, such as in the management of data and video, two areas expected to see tremendous growth over the next few years.
According to new findings from global research firm IHS Markit, based in London, the video software market is expected to rise from $6 billion in revenue in 2015 to more than $9 billion in revenue by 2021.
According to the new Video Software, Security, and Analytics Intelligence Service from IHS Technology, the atomization of media distribution and the switch from hardware-based technology solutions to cloud implementations are key drivers for the $3 billion in revenue growth over the next five years.
“Taken together, these two forces have created a market where value is shifting towards the frontend,” Cecilia Zhu, analyst at IHS Technology, said in the announcement. “A superior user-experience has become fundamental to securing increased consumer spend.”
Globally, content security accounts for 32 percent of the digital video software market, according to IHS.
“While demand for robust security solutions is unlikely to deteriorate, particularly in the presence of high-value UHD and HDR content, the segment is effectively saturated,” Zhu said.
By contrast, Online Video Platform solutions will continue to generate large, year-on-year returns through 2021. “The necessity of online distribution backed by a platform pre-integrated across a rich ecosystem of partners, means demand for OVP solutions will rise over the next five years,” Zhu said.
According to IHS, North America is the key region for the video software market, generating roughly $2.9 billion, and the region’s value relates primarily to confluence of three factors: the presence of large media companies, their outright scale, and their sheer number.
“The region’s economic dominance should not, however, overshadow the existence of cutting-edge video services in Europe, Asia, and the Middle East, and the technology demand that these services generate,” Zhu said.
According to the research firm, Cisco has a 15 percent share of the video software segment, the largest globally. “The company has proven adept at transitioning into the video space, and at using its longstanding presence in core, metro, and access-network infrastructure to cross and upsell video-specific software,” Zhu said.