The video surveillance industry is undergoing a fundamental change. Video technology is at the beginning stages of transitioning from standalone, analog video output with tape storage to networked, digital video, revolutionizing the manner in which video information is analyzed, archived, distributed, and managed. The market for networked video surveillance (IP surveillance) hardware is currently experiencing explosive growth. According to IMS Research predicts that revenues for networked cameras will grow at 28.4% (CAGR). Several factors confirm this clear technology breakthrough, including the fact that all major manufacturers of analog surveillance hardware (JVS, Panasonic, Pelco, Sony, etc.) have begun producing network video products.

Text Box: “In the United Kingdom, there is a video surveillance camera for every 14 people; and people in London can be caught on camera up to 300 times per day.” - Source: BBC, May 2004.

As the adoption of networked, digital video hardware grows, new network opportunities emerge as illustrated by several global IT players, such as IBM and Cisco, who have intensified their initiatives in IP-based video solutions . The move to networked digital video is also resulting in a shift from decentralized, local surveillance infrastructure to a more centralized monitoring station covering several remote locations via a private network or the Internet.

In addition to the technological advancements, recent geopolitical events have caused an increased global focus on physical security in both private and public environments. Furthermore, the commoditization of video hardware has put downward pressure on equipment prices, thus further facilitating the proliferation of installed units. According to a recent BBC article, there is a video surveillance camera for every 14 people in the United Kingdom , and people in London can be caught on camera up to 300 times a day. These two factors, combined with the shift to networked, digital video solutions, have created exponential growth in the creation of raw, digital video data. This growing mass of raw video data is putting increasing pressure on conventional video monitoring and analysis processes that are labor intensive, inefficient and costly. Consequently, there is an emerging market need for scalable technology solutions that can all eviate the growing labor cost associated with video monitoring and increase the over all efficiency and accuracy of video surveillance.