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Segmentation of Pricing / Product Offering This overview should give you a sense of the significance of the Milestone entry level price drop. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. A few exceptions include Luxriot (average MSRP $40 - $100 depending on total channels) and Digifort (average MSRP $45 - $115 though lower price level has severe functional restrictions). It is rare for open VMS systems (sold through dealers or distribution) to drop in price below $100.
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Milestone XProtect Basis+: ~ $125 per channel.Axis Camera Station: ~ $125 per channel.In this list, we use the price of the least expensive offering from each supplier (sometimes this is a 'basic' version, othertimes this is the flat fee for all functionality). Here are a few examples of pricing from VMS vendors around the world. This is from Spring 2010 and represents the pricing status quo before the Milestone Essential announcement. Licensing options - per channel, per server, per connection, etc.Competitors will likely stress that they still offer more value for customers needing access control integration, analytics, enterprise management as these features are still provided by Milestone at the same significant premium as it was previously.įrom our VMS training, we examine what prices you might pay for various VMS options, including: High end VMS systems: Milestone's move here does not affect nor improve their positioning in the high end VMS market segment.We believe these options will continue to grow in attractiveness as IP video goes mainstream and users want to buy direct. On-line VMS options: There are a growing number of VMS systems that can be bought immediately on-line that are similar or lower in cost to Milestone's offerings.Providers that lack both of these elements are likely to be hurt by this change.Īt the same time, we see 2 other areas of emerging VMS competition:
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Milestone is likely to benefit from forcing this shift as they have 2 strengths not common in most of their competitors: (1) well established distribution/marketing channel to sell this offering around the world and (2) ability to upsell to their higher-end, more costly packages. Milestone's release of its own entry level offering at $49 MSRP per channel will trigger these changes. What specific changes should we expect in the industry?īy the end of the year, we believe average entry level open system VMS pricing will drop from its current $100- $125 level to $50 - $75 per channel.How does the pricing and functionality of the new XProtect Essential compare to the previous XProtect Basis+?.How does Milestone segment their pricing/product offerings?.How do VMS vendors segment their pricing/product offerings?.What is the existing price structure for VMS offerings in the market?.
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While the VMS market is fragmented, Milestone is a relatively large supplier and one that both partners and rivals look to as a benchmark.Inside the premium section, we will explain the following key elements for members: We believe that this will trigger an industry wide reaction over the rest of 2010. The new entry level package, called XProtect Essential, replaces XProtect Basis+ with notably expanded functionality and, most importantly, significantly reduced price. Milestone's new entry level version announcement will have a major impact on the VMS market, forcing rivals to match or lose market share and benefiting consumers by lowering prices.