50,000 Customers World Wide Wyller: Through the open platform we enable our partners to give customers a powerful surveillance solution that is easy to manage and highly reliable. So far it has been proven at more than 50,000 customer installations worldwide. Deliver: Today our open platform supports the industry’s widest choice in network hardware, over 600 different network camera models from 45 manufacturers along with integration to around 60 solution applications ranging from video content analysis to access control.
Milestone Systems Today As you can see we have changed quite a lot Today Milestone is the global leader in open platform IP video management software with manufacturing and solution partners all over the world. In the United States the Milestone business community (or eco-system) has over 500 certified integrator partners working with customers day to day. EMEA: 400 certified partners
Theme: convergence has changed – used to be physical security (dog) and now it is done by computers
Americas Market for IP Video Surveillance Management Software Table 2.4 The Americas Market for IP Video Surveillance Management Software by Product Type Revenues ($M) 200720082009201020112012CAGR 07 - 12 Open Platform94.9128.5164.6217.7289.3377.3 31.8% 35.4%28.1%32.3%32.9%30.4% Proprietary10.113.6126.96.36.1995.8 28.8% 34.4%26.0%29.1%28.6%25.9% Total 105.0142.0181.7239.8317.8413.131.5% 35.3%27.9%32.0%32.5%30.0% Source: IMS Research Dec-07 So as we have seen the physical security and IT are undergoing convergence and this has led to a high growth, we are typically seeing 35% CAGR. As a result, at customer’s sites we are seeing that IT managers have much more influence in the surveillance buying decision going forward. This data, from the IMS report to be released in November, shows you the impact of this influence on actual Dollars being spent on video surveillance solutions software. IT managers know the issues with vertical solutions, they’ve been there, done that, got the T-shirt if you like... They burned their fingers in the early 90s and they have not forgotten some of the more costly consequences, like the fork lift upgrade This slide clearly shows that as far as software goes, the future customers favor, maybe even requires, open platform solutions.
OK, so what is an open platform?
Well I looked it up on Wikipedia and this is what it said … Click : … essentially a solution that is designed from the start for the software to be used… Click : … in OTHER ways than the original programmer intended.
If you were to ask our CTO, John Blem, he would probably say: “ It’s all about decoupling SW from HW to give users freedom to choose the best combination that truly meets their business needs…” I’ve heard John say that many times, but what does he really mean? Looking at it from a customer’s point of view, an IT manager if you like, it’s about living a commitment to always let the customer freely mix and match both software and hardware to create a solution that, as seen through their eyes, meets their needs exactly. The crucial thing here is, “as seen through their eyes”, the manufacturer should not put up requirements or conditions, it’s always the customer that makes the choice. That’s a true open platform solution and it’s our job as manufacturers to make the different parts work together seamlessly. E: Depending on the complexity of the solution, you’re right I guess. But as the manufacturer starts to dictate requirements for the customer’s solution…
Slide 11 : Proprietary Jail E : …that’s when you start to get into Proprietary Jail. E : And Proprietary Jail is just like any other jail, once you’re in, is can be very hard, and expensive to get out.
Going with a Platform as opposed to just a surveillance system - The message of, “Milestone is to Surveillance what Microsoft is to a PC” seems to be making sense. In today’s world, surveillance is done, by and large, with DVRs. A DVR is simply software and storage in a box. With an Open Platform, IP based solution, you are effectively un-bundling that software and storage and literally building the system much like you would build your PC. In essence, an IP system becomes a “Platform” on which you can build effective business solutions that are video enabled. One of the biggest challenges we face with surveillance as it relates to new technology today is that adopting these new solutions, whether they be analytics, data mining, or something we have yet to conceive, is that we are bound by the limitations of our hardware provider. For example, if I have DVR “xyz” in all or most of my stores, but there is a new solution from DVR “abc” then I have two choices, either do without, or “fork lift” my investment and replace it with another manufacturer that may become obsolete in a few years as well. With IP surveillance, you are building a surveillance system that can continually be scaled and upgraded to constantly keep up with technology. In fact, it is quite possible that you will have implemented the last surveillance system you will ever have to buy!
OK, but in real language, what should you look for to make sure the solution you are thinking of buying is truly based on an open platform? Well we went out and asked the industry analysts and together we came up with these five points for an open platform. Walk through each point: Common external programming interfaces (API) Published SDK documentation Programmers’ training on how to use the API Project consulting “ Walk the talk” We called them Hallmarks, just like the Hallmarks on gold or silver that tells you, you are getting what you are paying for. Now you’ll hear many vendors that talk about being open platform and as an end user or an integrator you need to drill down to verify what you are really getting. Look for the Hallmarks if you like When you hear we’re open, and at the same time they are recommending applications that are part of their own portfolio, possibly acquisitions, that sounds like vertical integration to me, and I would be surprised if you were not about to hear the doors of proprietary jail slamming shut behind you!
It was the analysts that suggested we add “Walk the Talk” because as they described it, you have to be actually doing it. You have to live the open platform idea in everything your company does. To give you an idea of what it takes, look at the growth in camera drivers. Today there is an explosive growth in the number of new IP cameras in the market. We are investing more and more time for our Camera Integration Team to maintain and support integrations for existing and new cameras. The number of new camera integrations in 2008 Click will actually match the cumulative driver development and integration effort in the company up until 2006.
So what does an open platform look like? M : Back in 2007 in Miami Eric talked about how through the open platform we are building a new Hybrid channel — a system of fellow travelers M : milestone ecosystem adding value to each other and driving the speed of innovation to create broader integration greater ROI and Future-proofing our customers’ business. Click : M : Greater hardware integration through our MAP partners, for example we are working with IQI as the market leader in megapixel cameras and Click : M : Greater application integration through our MSP partners, for example video analytics E : Together we are building what we see as the best long-term option for business success, for our partners, for their customers and of course for Milestone.
Slide 19 : Return on Investment of an Open Platform Click : M : And at this point here’s what we tell them that they can expect from a true Open Platform solution: Creates best of breed solutions Flexibility to integrate future technology innovation Protects your investment M : Now everyone wants the latest technology when they buy a solution, sometimes they will even delay a purchase to wait for an advanced feature to be released. M : So here’s the point I really emphasize with customers, by protecting their investment with a true open platform solution, they can integrate new technologies, even if they did not exist when they bought the solution. Like a race This idea really connects with the IT managers and you will have the attention of the purchasing managers
Keeping Up with the Speed of Innovation As a result you will see more and more customers realizing that open platform is the way forward. As the influence of IT grows in purchasing decisions they are turning away from vertically integrated solutions. Companies like Milestone and PARAGON will further accelerate the speed of innovation and the growth of the Open Platform as the long-term option bringing: Broader integration, greater ROI Future-proof
Thank you The take-away that we want to leave with you today is that to be successful in the future we are going to have to give our customers the freedom to build the solution they want. The true open platform we have shown you today, gives your customers the flexibility they need to create a best of breed solution to meet their needs exactly, and note I mean exactly, And going forward we believe it is the best approach for long-term business success for integrators, for customers and of course manufacturers. Thank you If there are any questions we would be happy to answer them here, or come and talk with us in the exhibit area. Slide : Black
Open Platform and IP Video
The Value of a true Open Platform Chris M. Wyller – North Central Regional Sales Manager
Milestone Systems Today Headquarters Denmark Subsidiaries / Joint V. MAPs / MSPs Resellers / Distributors
An Open Platform describes a software system which has published external Programming interfaces that allow using the software in other ways than the original programmer intended, without modification to the source code An Open Platform describes a software system which has published external Programming interfaces that allow using the software in other ways than the original programmer intended , without modification to the source code
“ It’s all about decoupling SW from HW to give users freedom to choose the best combination that truly meets their business needs…” John Blem Chief Technology Officer & Co-founder Milestone Systems
Metcalfe’s Law At Work The value of open platforms rise in direct proportion to the number of applications created for them. 40 - Milestone Application Partners 291- Software Development Kit Downloads 20 - Custom Integrations 61 - Milestone Solution Partners
Going With a Platform 24 HOUR VIDEO SURVEILLANCE IN OPERATION
Computer Open Platform Architecture Hardware Software Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Driver 1 Driver 2 Driver 3 Driver 4 Driver 5 Hardware Abstraction Layer / Driver Layer Kernel / Core System Functions API / Application Programming Interface Application A Application B Application C
Milestone Open Platform Architecture Hardware Software IP Camera Type 1 IP Camera Type 2 IP Encoder Type 3 IP DVR/NVR Type 4 I/O Device Type 5 Device Driver Type 1 Device Driver Type 2 Device Driver Type 3 Device Driver Type 4 Device Driver Type 5 Device Driver Layer XProtect Core System Functions SDK / API / Application Programming Interface XProtect Clients XProtect Add-on 3rd Party Apps.
Hallmarks of a True Open Platform <ul><li>Common external programming interfaces (API) </li></ul><ul><li>Published SDK documentation </li></ul><ul><li>Programmers’ training on how to use the API </li></ul><ul><li>Project consulting </li></ul><ul><li>“ Walk the talk” </li></ul>
Walk the Talk — Supporting Cameras ” Supporting all major brands and allowing more to be added...”
What Does an Open Platform Look Like? Best of breed IP cameras Best of breed network infrastructure Possible integration with other data sources Best of breed analogue cameras Best of breed add-on components or vertical solution Best of breed computer server Best of breed storage system Integrate with best of breed access control or security system
Return on Investment of an Open Platform <ul><li>Creates best of breed solutions </li></ul><ul><li>Flexibility to integrate future technology innovation </li></ul><ul><li>Protects your investment </li></ul>
Keeping Up with the Speed of Innovation <ul><li>Open Platform is the long-term option </li></ul><ul><ul><li>Broader integration, greater ROI </li></ul></ul><ul><ul><li>Future-proof </li></ul></ul>Accelerating Innovation Single Vendor — vertical Open Platform — horizontal
Milestone White Paper www.milestonesys.com/Resources/White_Papers