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The benefits of Internet protocol (IP) video have been well-documented, but the true costs have been somewhat elusive. Are the costs of an IP system more or less than typical analog systems or digital video recorders (DVRs) and analog cameras? Here's a closer look at the cost of ownership and what drives it in both types of systems.
SYSTEM DESIGN
For the purpose of this article let's consider an IP video system as one built with network cameras, commercial-off-the-shelf (COTS) servers hosting video management software and a network infrastructure consisting of Category 5 (Cat 5) cabling and switches. The comparison system would consist of analog closed-circuit television surveillance (CCTV) cameras, DVRs and a cable infrastructure.
REAL COSTS
The major cost components of a video surveillance system are the cameras, recording equipment and storage, cable infrastructure and labor, including set up.
CAMERA COSTS
To compare camera costs, Eric Stanley, the security product business manager at Communications Supply Corp., Carol Stream, Ill. priced IP cameras and their equivalent analog counterparts. He made sure that we had an "apples-to-apples" comparison by selecting cameras with similar characteristics (lenses, sensors, enclosures and day/night performance). As such the price of the network cameras was about 30 percent more analog. The relatively higher cost of network cameras reflects the higher device complexity that includes a processor, video compression engine and networking.
RECORDING EQUIPMENT
Costs for recording equipment will generally be lower when using COTS servers and disk array storage versus proprietary DVRs. It is very difficult for DVR manufacturers to match the economies of scale available to global vendors such as Dell, HP and IBM.
A Dell PowerEdge Server with 1 GB RAM and 500 GB of storage carries a price tag of about $1,800. A 16-channel-DVR with 500 GB of recording capacity has a manufacturer's suggested retail price (MSRP) ranging from $6,500 to $6,800.
SOFTWARE
Most DVRs are bundled with video monitoring and playback software. Video management software for IP cameras and encoders must be separately licensed at a MSRP ranging from $150 to $450 per camera. The large price variance in video management software reflects the breadth of features, scale and range of product compatibility with cameras and encoders.
CABLE INFRASTRUCTURE
The cost of analog cabling can average three times the cost of cabling for network cameras. Analog cameras require a separate power cable while fixed network cameras can use Power over Ethernet (PoE) to deliver power over the Cat 5 network cable. Analog cameras also require separate cabling for pan-tilt-zoom control.
SWITCHES
Each network camera will occupy one port on a network switch. The best switches for network video will deliver PoE and support a protocol call "IGMP snooping" for multicast video streaming. NETGEAR has a 48-port PoE switch available for about $400.
CABLING AND LABOR
The cost of components is only one part of the story. Some of the most significant system costs are in labor, cabling and storage. One assessment of these costs is provided in a published white paper "Total Cost of Ownership, Comparison of IP- and Analog-Based Surveillance Systems," sponsored by Axis Communications, Chelmsford, Md. The paper was written by an independent consultant who researched system costs for IP and analog-based surveillance.
The consultant created a Request For Proposal to solicit bids for a fictional 40-camera system for a school building. The submitted proposals from integrators included both IP systems using Axis IP cameras and proposals for DVRs with analog cameras. The RFP specifically outlined the number, location and type of cameras (fixed, pan-tilt-zoom, indoor-outdoor), recording requirements (frames per second, resolution and retention time) and building dimensions. The study concluded the following:
- Cabling is nearly three times as expensive in the analog system proposals compared to the IP systems
- Installation, configuration and training is almost 50 percent higher in the analog system
As a general rule the cost of an IP system becomes more favorable as the number of cameras increase. Once the server, storage and switches are in place, the incremental cost of adding IP cameras is less than adding analog cameras (requiring additional DVR ports). The Axis study also found:
- Beyond 32 cameras, the IP-based system is lower cost
- Between 16 and 32 cameras, the costs of IP and analog are quite comparable
- Less than 16 cameras, the analog system is lower cost
- When the existing network infrastructure (switches, cabling) can be leveraged, IP is always lower cost
OTHER COSTS
Some intangible factors can influence the cost of ownership over the life of the system. For example:
- Brand-name COTS servers and storage may have superior warranty and service plans compared to DVRs
- Storage capacity is easily added to commercial storage systems
- Flexibility—moving network cameras to new positions involves only moving a network drop when PoE is deployed
Of course this focus is on the measurable costs and not the value-added benefits of IP video systems. While each job will have a unique set of factors, there are some general guidelines to consider:
- Network cameras cost more than their analog counterparts
- Price/performance of IP video cameras and software will improve and become more competitive as the market matures
- Fixed network cameras reduce cabling costs by leveraging PoE
- Total cost of ownership depends on the size of the system and how much of the network infrastructure can be leveraged.
- Costs for IP Video are more favorable for larger systems
For a more detailed cost study, read the perspective outlined in the Axis white paper which can be downloaded at http://www2.axis.com/files/whitepaper/wp_axis_tco_en_0709.pdf.
author: By Tom Galvin