TCO analysis is helpful when investing in a business security system to outline the price differences between a traditional ‘on-premises’ installation and that of a cloud-based system such as VSAAS.
Upfront costs:
Running costs:
The main considerations of any prospective CCTV surveillance system are:
Since all cameras in both on-premises and cloud installations need to be installed and connected to a network in the same way, the main differences between the two environments are apparent when it comes to data storage and software.
Traditional ‘on-premises’ installations require a digital network recorder for basic recording functionality, while greater investment can provision a DVR or NVR with RAID storage for enhanced data backup and longer footage retention periods. Depending on requirements, recording hardware can be expensive. Specifications must also be considered at the time of investment to meet the exact requirements for the life of the system, any changes after installation will almost certainly incur further costs.
A VSAAS surveillance system requires only the cameras to be installed and connected to the network. Additional cameras can be added at any time while data storage and features are handled by hardware at our data centre and can therefore be entirely flexible. In short, businesses have the flexibility to add cameras and features as required.
Hardware configuration and software installation can be costly for traditional CCTV solutions, and businesses will often outsource this to a third party as part of a service contract.
Server costs can escalate when central management of multiple sites is required, each site will require an individual system to be configured and installed. Initial setup costs are minimal with a VSAAS security system and each additional site can be immediately connected to the same cloud system. Investment in setup, installation, configuration, and software is not required meaning that businesses need only invest in security not hardware.
Cloud systems are run as a subscription service, the cost for which is clear when the service commences. ‘On-premises’ systems however incur a multitude of operational costs that are often overlooked.
One of the largest costs is the electricity required to power an on-site server 24/7. Power, back-ups, operating systems and other software updates plus hardware maintenance can require a significant annual investment. In addition, as cameras and other devices are connected to the network and require ports to be opened for incoming connections, investment in cybersecurity becomes important in the secure operating of ‘on-premises’ video surveillance systems.
Cloud systems do not operate in the same way because video footage is viewed via encrypted connections from our data centre. VSAAS systems avoid virtually all the investment required in IT, support, maintenance, power, and security issues of the ‘on-premises’ system.
In a cloud system, redundancy (achieved by the installation of additional components for use in the event of hardware failure) comes as part of the VSAAS service subscription.
Achieving true redundancy in an ‘on-premises’ system is estimated to be between 3 and 5 times the cost of the hardware and software in use! As a result, the total cost of ownership of a traditional ‘on-premises’ installation is far greater than that of a VSAAS system.
All ‘on-premises’ systems require some level of maintenance for both software and hardware. There is typically an annual software maintenance cost of 20%, while hardware maintenance agreements incur additional costs to cover any hardware failures. In addition, upgrading both hardware and software can also be costly to implement in terms of both time and money.
Our VSAAS solution does not incur these costs as they are included in the service subscription.
Each business has its own security requirements, the accepted wisdom suggests that at best cloud systems can reduce costs by up to 45% when compared to traditional ‘on-premises’ installations. In the majority of cases, video surveillance as a service offers a significant reduction in cost while providing a flexible and scalable service.
