Cheaper and greener - enough reason to change?

In the last issue of ECD Solutions, we asked the question why bother changing from a CCTV surveillance installation to a more expensive IP solution? This issue, we take it a step further and take a look at a true decentralised system and a study of the costs involved in implementing all three solutions. German manufacturer Mobotix AG carried out a cost-analysis study, using its own system, as well as an analog installation and a ‘traditional’ IP solution. The findings follow.

The majority of currently installed video security systems can be considered outdated, as they are based on analog technology. Although the approach is adequate enough, these systems have many limitations. This is why using network cameras with megapixel resolution makes sense for many scenarios. In terms of image quality, cost efficiency, flexibility and scope of applications, IP is the clear number one choice, which is also reflected by numerous market forecasts. According to the market analysts from Markets and Markets, the global market for these solutions is growing at an annual rate of approximately 19% and is predicted to reach a volume of over US$25 billion by the end of 2016. Analysts further expect the sales volume of IP cameras to exceed that of analog cameras as early as 2014.

More detail, more possibilities

Network cameras make it possible to monitor objects over an IP network (LAN/WAN/internet) and can record the image data, providing additional benefits and high image quality. In sensitive security areas, high-quality images are essential, so traditional analog technology simply doesn't offer enough. Live images based on analog technology have no more than 0.4 megapixels (MP) and a recorded image generally only 0.1 MP (CIF). Images with such low resolution often appear out of focus, making it impossible to zoom in on detail. In contrast, HD cameras can record up to 3.1 MP and capture about 30 times the detail. Combined with a megapixel sensor and built-in image processing technology, the images produced can be higher resolution than HDTV.

Open and flexible

IP video security interfaces well with other systems and can easily be integrated into applications such as fire or intrusion alarm systems, building management or access control. With IP technology, authorised users can access a selected building or a single camera part of the security system from any computer, notebook or even smartphone and remotely control it from anywhere in the world.

Saving costs with IP

Thanks to the high resolution of IP technology, fewer cameras are required to record the necessary image section in comparison to analog or standard IP systems. For example, hemispheric camera technology enables a single camera system to capture views of up to 360°, reducing the number of cameras required and the associated costs. Where four conventional cameras would be required to record the activities at a four-lane service station, one single IP camera could now be sufficient. Costs are even further reduced as existing network infrastructure can be utilised for integration of the IP cameras. This does away with time-consuming and costly cabling expenses.

Decentralisation makes high-resolution cost efficient

Even though the benefits of high-resolution network technology are easy to see, the recorded images present a challenge because of the high data volumes generated. Under this system, a high-performance and well-dimensioned network with large bandwidth is needed. A decentralised solution solves the problem, as each camera is equipped with a powerful processor and, if required, an optional digital long-term flash memory (MicroSD) card that enables recording over several days.

The central computer, or video control centre, serves only for viewing, not for analysis or recording. This prevents users from having to rely on complex and expensive video management software, as most of the important functions requiring a large amount of processing power are integrated into the cameras themselves. Efficient video codecs, motion detection and data storage integrated into the camera help to minimise the network load. As a result, a high-resolution security monitoring system can be implemented and operated at a low cost. This makes it a suitable solution for installations requiring just a few projects or for those with several hundred devices, such as areas, museums, airports or highways.

Network cameras: going ‘green’

When planning a video surveillance system, investment security is one of the biggest reasons to go digital. However, decision makers base their choice on other high-priority aspects including energy efficiency and sustainability, as well as cost efficiency. At first sight, modern 'energy- and bandwidth-hungry' video systems appear at odds with green thinking. In most cases, this assumption is probably reasonably accurate, but in the case of Mobotix, the opposite is true as the camera’s wide temperature range (-30 to +60°C) is achieved without the use of heating or fans and consumes only 3 to 4 watts. Additionally, fewer cameras are used.

As users increasingly want to see a comprehensive cost-benefit analysis, Mobotix decided to carry out its own cost analysis study to see which installation method faired best.

It's the holistic view that counts

It is difficult to actually quantify the savings that can be achieved by using a video security system, as return-on-investment can be indirect and generally stems from a number of different factors. Any true cost analysis should therefore include more than just the one-time procurement costs and ongoing operating costs. Operational expenditure on elements that have been eradicated using newer technologies also impacts on the overall end price.

It is the costs arising from theft, vandalism and other destructive acts (which are be avoided because of the deterring nature of video systems) that are so difficult to quantify. This means that the use of security systems cannot really be measured in terms of monetary outlay, even though they improve security in public spaces or deter crime in retail and hospitality environments. Theft can noticeably affect return on investment in the retail sector, for example. €3.7 billion worth of goods went missing in the German retail sector in 2010 according to EHI, a private research institute; a compelling reason to favour using state-of-the-art video security systems. It is notoriously difficult to predict how high the costs would be without the deterrent effect of security systems. In all likelihood, this cost might be far higher than the value that was calculated.

Furthermore, intelligent video applications can also contribute to security in other areas and provide additional return on investment. They can be used in a number of sectors, including the retail sector, to analyse customer behaviour or determine the amount of time passengers spend at an airport check-in counter. This information can be used to develop concepts that benefit customers and sales.

Comparison of the procurement, installation and operating costs of different video security systems

Although undertaking a return-on-investment analysis is difficult, it does permit comparison of different systems in terms of procurement, installation and operating costs such as camera maintenance, software updates, licence fees and power consumption. Mobotix AG, a software company with in-house hardware development for digital, high-resolution and network-based video security solutions, decided to carry out a cost analysis of its own in-house solution by comparing it with analog and traditional IP camera solutions. The study used similar application scenarios and comparable software and hardware elements.

Creating a level playing field

The sample analog installation consisted of 50 security cameras (15 outdoor, 35 indoor) in D1 PAL resolution. The installation also included four analog 16-channel digital video recorders (DVRs) with a storage capacity of 500 GB and a multiplexer crosspoint switch for selective alarm management. Costs were also incurred for the video management system (VMS) software for recording, searching, analysing and alarm management, and the control centre hardware with four video workstations.

The traditional IP camera installation also consisted of 50 security cameras (15 outdoor, 35 indoor) including switches, motherboard and the RAID system. As with the analog system, the IP solution required VMS software and hardware for the control centre.

The number of cameras in the decentralised IP solution was reduced to 35, as fewer cameras were required to capture the desired image area. This is due to the higher resolution capability of the (Mobotix) cameras.

The use of fewer hardware items immediately realises lower installation costs in terms of labour, as well as a reduction in the number of required cables and other essential hardware such as PoE switches.

The decentralised solution also provides savings in other areas, including storage and power supply. Using this methodology, images are processed directly in the camera. Using power over ethernet (PoE) technology, cameras receive their power supply via ethernet cable, removing the need for additional copper and power draw.

According to Mobotix, the decentralised system presented a clear advantage over analog in the direct cost comparison; procurement costs are approximately 30% lower, installation almost 15% lower and it offers 66% lower operating costs per year. Power consumption is less than 30%. When compared to the HD IP system, the decentralised solution is less expensive to acquire, with a difference of around 10%. In contrast, the operating costs are 79% lower, making them significantly below those of the traditional IP camera solution. With less than half (47%) of the energy costs, the decentralised solution is also particularly cost effective and environmentally friendly.

The only option

Companies that are looking to modernise an existing system, or set up a new one, are increasingly looking to network solutions. Such systems are ideally equipped to keep up with emerging needs and technologies, because modern security systems can be easily upgraded, expanded or combined with other digital applications. When combining this technology with a decentralised system approach based on in-camera image processing that takes a major load off the network, high-resolution security systems are not only convenient and user friendly, but also cost efficient.