Total Cost of Ownership – Cloud Video
Cloud Video Surveillance is taking off. From Nest Cameras to Arlo cameras, you are going to see cloud-based video surveillance pop up all over the place. Did you know that VanBelkum has been selling an enterprise-grade cloud-based video surveillance system for some time now? We partnered with Eagle Eye Networks to deliver a highly available, scalable, cloud-based video surveillance system.
But why should I buy a cloud-based system when a premise-based system doesn’t have any monthly charges associated with? We get asked this question a lot. Besides the obvious reason that the cloud offers you a much wider array of features and functions, let’s look at the total cost of ownership between a cloud-based system and a premise-based surveillance system. At the end of this article, you will be able to speak to the difference between the two very different systems.
Total Cost of Ownership
Investopedia defines Total Cost of Ownership (TCO) as the purchase price of an object plus the cost of operation. In our examples, we will be looking at a 5-year span with 12 cameras recording at 720P and 15 frames per second.
First, let’s go over some terms
- Recurring System Fees – These are charges that you pay to operate either software or hardware. Typically billed on a monthly rate.
- Hardware – Any physical pieces that we may require to build the system
- Hot Redundant Computing & Storage – Servers and storage that are mirrored for redundancy in case of outages
- Cybersecurity – This applies to any security measures that are needed to protect equipment and software from rogue attacks.
So What’s The Difference?
To start, a cloud-based video system is approximately $1200 cheaper over the course of ownership. But, what is more important is the security aspects. With a premise system, you will not receive any security updates, patches or hotfixes. This means that unless you as the administrator is manually patching your devices you will be vulnerable to attacks. One of the other important things that is important to note is that a premise-based system has no backup. If your recording device fails you have no means of failover or redundancy.
So is cloud really all that better? We sure think so. From redundancy and security all the way to infinite storage and analytics we know that cloud-based video surveillance is the best system you can buy for your business.