Security Dealer & Integrator

SEP 2018

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26 Security Dealer & Integrator / www.SecurityInfoWatch.com September 2018 T otal Cost of Owner- ship (TCO) refers to all the costs incurred in owning and operating an asset. For IT servers, typically the initial CapEx expendi- ture contributes only 10 to 20 percent of the TCO; it is a similar picture for server-based electronic physical secu- rity systems. e differences in TCO for compet- ing products can range between 50 to 100 percent; however, due to recent technology advances, the TCO differ- ence between some types of products can be as much as 1000 percent. Here's an example: Five years ago, video analytics servers running Agent Vi soware could run analytics on 16 video streams per server on average. Some analytics companies still use technology like that; however, the new generation of Agent Vi technology can process 200 such video streams – a 1,250-percent improvement! Another way to state it is that the previous gen- eration technology requires more than 12 times the number of servers. Although the purchase cost of two competing video analytics soware products may be the same, the cost to deploy and operate them with identical functionality may not be. For an expla- nation on the difference in video ana- lytics technologies, see the SIA's techni- cal paper, "e State of Video Security Analytics" – available at http://bit.ly/ advanced-security-video-analytics. While the above example seems cut- and-dried, the picture is complicated by cloud-based systems, for reasons that are explained later in this article. Most businesses experience internal competition for technology funding; thus, security system projects are not immune to cost pressures created by internal battles. End-users want to know – and have a right to know and understand – all the cost elements involved in security deployments. ese cost factors are becoming a part of the competitive landscape, and I have personally seen recent security system RFPs that require a five-year TCO analysis as part of the design- build package. How to Create TCO Analyses Security system manufacturers should provide TCO analysis support to their integrator partners, because, as men- tioned, it is now becoming an import- ant security system sales factor. Eagle Eye Networks, for example, provides five-year TCO comparisons that look at TCO for a fully on-prem- ises VMS vs. a cloud-based system. ese documents provide detailed cost factors, including, for example: • Server configuration (CPU, RAM and storage); • Additionally required equipment, such as routers and switches where they may make a difference in the comparison; and • VMS requirements, including camera and site count, resolution and frame rate, days of retention, etc. ese example comparisons can serve as a template for making an accurate comparison between Eagle Eye's cloud-based VMS offering and a competing brand of VMS and server or NVR system. Of course, for those integrators who are Eagle Eye partners, this information is extremely helpful in the design and specification pro- cess. Check out the figure at the top of page 27 that offers a TCO compar- ison for multi-site enterprises. Access the full document at www.een.com/ security-system-true-tco. How integrators can use TCO as the foundation for selling long-term added value for both physical and cloud-based security systems By Ray Bernard, PSP, CHS-III T otal C ost of O wnership Your Business

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