Final Update--DVTel Acquires ioimage

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DVTel has agreed to purchase video analytics supplier ioimage in an all-stock transaction. Israeli press reports placed the the value of the deal at about $80 million, although neither company confirmed this figure.

DVTel, a manufacturer of video management software, integrates video analytics into its iSOC system from several third-party suppliers, so it remains to be seen how the ioimage deal will affect those relationships. Herliya, Israel-based ioimage has been among the more successful players in the shaky analytics market. The company sells cameras and encoders with built in processors that perform analytic functions--a configuration commonly referred to as edge-based. Installations include the Vatican, Exxon-Mobil and New York City area airports.

Although the acquisition makes sense in the larger context of the security convergence trend, it does little to settle questions about the overall health of the analytics market, which has been trying to regain traction with users after several years of overpromises, As John Honovich notes on his IPVideoMarket site, ioimage, one of the largest analytics players, is being bought by one of the smaller VMS competitors

In a statement released this yesterday, DVTel said the decision to acquire ioimage is central to the company's on-going strategy to innovate end-to-end, IP-based physical security solutions so that it continues to grow to meet the changing needs of its customer base. DVTel said that over the past 18 months, it has seen a significant increase in the number of third-party analytics solutions integrated with DVTel's enterprise level systems around the globe.

"It is a good fit," said a DVTel spokeswoman. "Ioimage has a strong, professional engineering team. There's a lot of synergy. It is a market leader with great branding."

Mutual support

DVTel will continue to support other third party video analytics, be they edge- or server-based.

"Ioimage fits cleanly [with DVTel]," Honovich told Security Squared. "They have mainly encoders and cameras, so it's not complicated."

Ioimage analytics technology will be incorporated into DVTel cameras, but the ioimage brand will remain and stand-alone ioimage products will still be marketed for integration with other systems, according to John Whiteman, president of Americas, for ioimage.

For DVTel, the ioimage acquisition is in-line with DVTel's strategy to package greater functionality and features with iSOC. Other on-board features and components include incident recording and management, client recording software, video switching and cameras, the DVTel spokeswoman said.

From ioimage's perspective, the decision to sell was a recognition of the growing market power of VMS and camera suppliers, even as best-of-breed integration moves to the forefront. "The market is looking for end-to-end solutions," he said. "As a stand-alone company we don't drive the buying process the way VMS and camera [suppliers] do,"
  
Full configuration

For ioimage, the acquisition also provides an opportunity to deliver its ioibox, ioicam and ioiware analytics solutions in full configuration, said Whiteman. Although the packages run on other VMS systems, he added, not every vendor integrated every feature, such as two-way audio or pan-tilt-zoom tracking. "All the power was not being utlilized," Whiteman said. "It became a bit of a frustration for end-user customers."
 
Whiteman also pointed to organizational synergies the two companies have. As a U.S. company, DVTel can bolster ioimage's presence in North America. Conversely, DVTel will benefit from ioimage's larger sales presence in northeastern Asia. 

The news comes as analytics and video intelligence gain renewed attention from users. Vendors have tempered their promises after overhyping the capability of the technology. "We believe video analytics is the wave of the future," said the DVTel spokeswoman. "But we've gone beyond the sexy demonstration of the technology with a 90 percent failure rate for something that has become a mature solution. The industry has regrouped and is saying 'let's use it in places where it makes good sense."

For more background on ioimage, its technology and strategy, see our past video interviews with Whiteman.

Analytics, Take Two
Analytics: Intelligence and Surveillance
DVTel has agreed to purchase video analytics supplier ioimage in an all-stock transaction. Israeli press reports placed the the value of the deal at about $80 million, although neither company confirmed this figure.

DVTel, a manufacturer of video management software, integrates video analytics into its iSOC system from several third-party suppliers, so it remains to be seen how the ioimage deal will affect those relationships. Herliya, Israel-based ioimage has been among the more successful players in the shaky analytics market. The company sells cameras and encoders with built in processors that perform analytic functions--a configuration commonly referred to as edge-based. Installations include the Vatican, Exxon-Mobil and New York City area airports.

Although the acquisition makes sense in the larger context of the security convergence trend, it does little to settle questions about the overall health of the analytics market, which has been trying to regain traction with users after several years of overpromises, As John Honovich notes on his IPVideoMarket site, ioimage, one of the largest analytics players, is being bought by one of the smaller VMS competitors

In a statement released this yesterday, DVTel said the decision to acquire ioimage is central to the company's on-going strategy to innovate end-to-end, IP-based physical security solutions so that it continues to grow to meet the changing needs of its customer base. DVTel said that over the past 18 months, it has seen a significant increase in the number of third-party analytics solutions integrated with DVTel's enterprise level systems around the globe.

"It is a good fit," said a DVTel spokeswoman. "Ioimage has a strong, professional engineering team. There's a lot of synergy. It is a market leader with great branding."

Mutual support

DVTel will continue to support other third party video analytics, be they edge- or server-based.

"Ioimage fits cleanly [with DVTel]," Honovich told Security Squared. "They have mainly encoders and cameras, so it's not complicated."

Ioimage analytics technology will be incorporated into DVTel cameras, but the ioimage brand will remain and stand-alone ioimage products will still be marketed for integration with other systems, according to John Whiteman, president of Americas, for ioimage.

For DVTel, the ioimage acquisition is in-line with DVTel's strategy to package greater functionality and features with iSOC. Other on-board features and components include incident recording and management, client recording software, video switching and cameras, the DVTel spokeswoman said.

From ioimage's perspective, the decision to sell was a recognition of the growing market power of VMS and camera suppliers, even as best-of-breed integration moves to the forefront. "The market is looking for end-to-end solutions," he said. "As a stand-alone company we don't drive the buying process the way VMS and camera [suppliers] do,"
  
Full configuration

For ioimage, the acquisition also provides an opportunity to deliver its ioibox, ioicam and ioiware analytics solutions in full configuration, said Whiteman. Although the packages run on other VMS systems, he added, not every vendor integrated every feature, such as two-way audio or pan-tilt-zoom tracking. "All the power was not being utlilized," Whiteman said. "It became a bit of a frustration for end-user customers."
 
Whiteman also pointed to organizational synergies the two companies have. As a U.S. company, DVTel can bolster ioimage's presence in North America. Conversely, DVTel will benefit from ioimage's larger sales presence in northeastern Asia. 

The news comes as analytics and video intelligence gain renewed attention from users. Vendors have tempered their promises after overhyping the capability of the technology. "We believe video analytics is the wave of the future," said the DVTel spokeswoman. "But we've gone beyond the sexy demonstration of the technology with a 90 percent failure rate for something that has become a mature solution. The industry has regrouped and is saying 'let's use it in places where it makes good sense."

For more background on ioimage, its technology and strategy, see our past video interviews with Whiteman.

Analytics, Take Two
Analytics: Intelligence and Surveillance

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