Srikanth Kamath,
Country Manager – SAARC,
MOBOTIX AG
The surveillance market is growing at over 40 per cent due to government’s mandatory policies for residential, commercial and public properties. However, growth has been noticed in the sub-US$200 (INR10K) camera. Lack of information and confusion in the market is due to the availability of 100+ brands both from the organized sector and the unorganized sector. Many brands which manufacture their own cameras are now OEMed. Hence, the differentiator for the product is primarily on price and the service that System Integrators (SIs) can provide. The market is getting commoditized, which clearly indicates the requirement for surveillance in growing but at the cost of quality solutions.
Srikanth Kamath, Country Manager – SAARC, MOBOTIX AG, recently spoke to VARINDIA about the company’s market position, its channel strategy and roadmap ahead. Edited excerpts…
Where does the Indian market stand when it comes to adoption of technology in the surveillance space? How the switch-off from analogue to digital is affecting the market in terms of price and technology enhancement?
As the market is getting commoditized, there is no difference between IP and analogue in terms of technology or price. The availability of brands across the market segment at every price point has made technology irrelevant in the camera. The Indian market is yet to understand the solution / limitation of the VMS and Intelligence, for keeping records of the footage and using the footage for day-to-day usage, instead of only for evidence after the incident has occurred. Adoption of +3-mega pixel is very low and not clear to the market why a Megapixel Camera should be used. The choice of Megapixel is not only indicated for higher resolution but also to reduce the number of camera in any site.
With a host of new players in the fray, what will be the positioning strategy of your brand? How do you differentiate your solutions from the rest?
MOBOTIX AG has been pioneering technologies since its inception. We are the only brand with +3-mega pixel technology with Decentralized Solution. Our technology does not require VMS or Central Server. In a large system the removal of Server for the VMS results in huge cost saving in both CAPEx and OPEx. MOBOTIX philosophy is to provide software and firmware upgrades free of cost to the customers, keep the surveillance system up to date and upgraded with the latest technology. This is a key factor which makes MOBOTIX Solution highly acceptable in the market.
What kind of opportunities or potential exist for channel to explore?
MOBOTIX is channel driven and we have only 25 partners doing business worth US$2+ million. It is clear that we have not yet tapped important cities in India and we are now on the lookout for partners in major cities in our fourth year of operations in India. The selection of partners with understanding of IP technology and drive to grow is the key. We believe that size of the market for MOBOTIX is US$10 million.
What are some of the challenges that hinder the growth of this market?
The growth is limited due to +60 to +180 days’ timeline to finalize any order. The justification of prebid expenses is the main hindrance with many large SIs. Further, the biggest challenge faced in the market is the non-payment of dues by customers in time. The primary reason for non-payments is that the SIs are unable to deliver the system performance as stipulated in the bids. This again shows the lack of trained staff on the part of System Integrators.
What does the future hold for this market in India? Which are the areas in surveillance that will witness immense growth in the future?
India has the potential to provide business at par with any developed countries because of our robust manufacturing and service industries. The growth in industrial output will enable industries to expand their facilities and surveillance is a must in today’s security environment. The uncertainties of FY 2013 should be overcome after the Elections this year. We, at MOBOTIX, have a planned growth to reach US$10-million business in India by the end of 2015.
satinder@varindia.com
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