Opening Remarks

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This information is confidential and is not to be provided to any third party without Vicon Industries Inc.’s prior written consent.

Provide an update on Vicon and other security

technologies

Discuss how these technologies are used in different system designs

to create solutions

Analyze the continued technology changes and

their effect on the industry

Build a better understanding of your needs and the needs of

your customers

Meeting Goals and Objectives

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Agenda Review

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Discussion Topics

State of the Industry

(sales profiles)

Market Drivers (Technology)

Open Platform & StandardsOperational Use of

Systems (Integration

and PSIM)

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Demand and Sales Trends

IP vs. Analog

Vicon's Camera Sales Profile

Analog Cameras

74%

IP Cameras18%

Megapixel Cameras

8%

Analog Cameras IP Cameras Megapixel Cameras

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IP Video Market Drivers

Megapixel Cameras

Network knowledge and competency Analytics

Reductions in Storage cost

Future:

IP Standards

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Megapixel Technology

One of the most influential drivers in the IP video segment.

Specialized companies have spearheaded the development and marketing– Larger camera manufactures are catching up

1.3MP is main volume with 2MP, 3MP & 5MP becoming more common in applications– Higher MP cameras are in the market

Driving up the need for external storage Lighting condition limitations now improving with intro of

Auto Iris CCD megapixel products

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Storage & Networking

Increased resolution and demand for high frame rates is driving the need for more complex storage solutions.– ISCSI RAID Arrays– Internal RAID formats– Centralized SAS storage

Constant increase in drive density is dramatically reducing storage cost– Now reviewing 2 TB drives

Typical cost of 1 TB drive now under $250.00 These reductions have affected IP video as well as DVR

costs Lower cost of storage coupled with an increase in

installer knowledge of networking has made IP video more cost effective

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Video Content Analysis

Analytics– The analytics market still has not grown to the size projected

some years back– Total worldwide Analytics market estimated at about $40M– Growth has been hampered by:

• Complexity of the technology (setup and false alarms)

• Lack of proper expectations

• Cost per channel

– Market for Analytics is still mainly in defense sectors. Small portion of analytics are used in commercial applications

– Transfer of the Analytics to edge (camera) is still a driving factor in IP video camera deployment

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Open Platform & Standards

What is an “Open Platform”?– In the video world, it’s a management platform that capable of

interfacing cameras from multiple manufacturers

• Beneficial since it does not lock the use into one hardware (camera) source

– Issues today

• No Standards:– Problems occur when interfaces change– Development from manufacturer to manufacturer is

different

• No consistency with feature support among different manufactured cameras

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Standards…

ONVIF™: (Open Network Video Interface Forum)– Global standard for the interface of network video products– The ONVIF specification will ensure interoperability between

network video products regardless of manufacturer. The cornerstones of ONVIF are:

• Standardization of communication between network video devices 

• Interoperability between network video products regardless of

manufacturer  • Open to all companies and organizations

– The ONVIF specification defines a common protocol for the exchange of information between network video devices including automatic device discovery, video streaming and intelligence metadata.

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Operational Use of Systems

PSIM (Physical Security Management Systems)– Roughly defined as a combination of different system

technologies brought together to operate as a cohesive solution.– Video, Access, Fire, Intrusion, Emergency Communication

– ORSUS, Vidsys, Proximex, Intergraph are more “Situational Awareness” software providers

– These solutions typically are very expensive and are used mostly in the Military/Government markets

– A well integrated system can provide most of the capabilities without the cost?

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