The Hidden Costs of Video Surveillance Systems

When organizations invest in video security systems, the focus often lies on upfront system costs and immediate functionality. However, this poses potential problems as video security systems include hidden costs that emerge over the product’s lifetime. Ignoring these hidden expenses can turn an initially affordable solution into a financial burden. In this article, we’ll dive into all the factors contributing to the total cost of ownership (TCO) when selecting a new video security solution and how to ensure your investment remains cost-effective now and in the future.

Maintenance and Upkeep

Video security systems, especially those relying on traditional network video recorders (NVRs) and digital video recorders (DVRs), often require significant maintenance. These systems require regular manual updates, hardware replacements, and unexpected repairs. Over time, the cost of maintaining these systems can exceed initial purchase savings, particularly as traditional NVR/DVR units typically start to fail within a few years of deployment. Hybrid-cloud solutions provide the best option to mitigate this. These types of systems typically include automatic updates, better efficiency by combining on-premise and cloud resources, and more reliable infrastructure with longer warranty periods.

Employee Monitoring Costs

Another hidden cost of traditional video security systems is the expense of having employees monitor video feeds and operate the system manually. Employing staff to continuously watch live feeds or review recorded footage can be resource-intensive. Not only does this require significant manpower, but it also diverts valuable human resources from other critical tasks. The need for around-the-clock surveillance can lead to increased labor costs, including overtime pay and benefits. Additionally, manual operation increases the likelihood of human error, potentially compromising the effectiveness of the security system. Investing in an automated, AI video security solution can eliminate these costs by reducing the need for constant human oversight with real-time alert capability, allowing employees to focus on more strategic tasks than just video monitoring.

The Impact of False Alerts and Missed Events

False alerts and missed events can greatly diminish the effectiveness of a video security system. False alerts waste valuable resources, as personnel must investigate non-existent threats. False alerts can also lead to alert fatigue where employees no longer take the alerts seriously and disregard potential incidences. Missed events, on the other hand, can lead to unaddressed security breaches and significant financial consequences. Both issues undermine the system's reliability and inflate operational costs, ultimately increasing employee inefficiency and the total cost of ownership.

Complex Video Search and Retrieval

Searching and retrieving footage from outdated systems can be a cumbersome and costly process. Many older systems use proprietary formats or outdated methods to retrieve footage, such as manually rewinding and fast-forwarding through individual cameras, investigating incidents on-site, or downloading video on separate devices to either store or share with others. These laborious methods can make accomplishing simple tasks like verifying an event or sharing footage with team members or law enforcement incredibly difficult and time-consuming. More modern solutions should offer seamless, remote access, investigative tools to find specific footage in seconds, the ability to save video on-premise or in the cloud, and share footage via email, SMS, or push notification.

Cybersecurity Concerns

Ensuring the cybersecurity of a traditional video security system can be both complex and costly. NVR/DVR systems need to be either isolated from networks to remain secure or opened up for remote access, which introduces cybersecurity vulnerabilities. Managing the cybersecurity of these systems can be another job in and of itself since securing these systems against potential cyber threats requires continuous monitoring, regular system updates, and additional technical resources, all of which contribute to higher operational costs.

Ongoing Software Expenses

The initial investment in video security systems often overlooks ongoing software costs. Traditional NVR/DVR systems may require frequent software upgrades, new feature packages, AI analytic add-ons, or third-party solutions to solve new use cases. These recurring expenses can quickly add up, impacting the total cost of ownership of a system. To minimize unexpected software expenses, we recommend finding a solution that provides an end-to-end system and all-inclusive software licensing. When a vendor develops their own hardware, software, and AI and all features come standard with their software license — this ensures greater cost stability and assists with accurately forecasting future video security costs.

Storage Costs

Storage capacity is a crucial aspect of video security systems that can significantly impact the total cost of ownership. As security needs grow, so does the demand for storage, particularly with the shift towards higher-resolution footage. Traditional NVR/DVR systems often come with fixed storage capacities that quickly become insufficient as additional cameras are added or the quality of footage increases. This often requires unforeseen investments in extra storage hardware, which can be both expensive and cumbersome to integrate. Additionally, maintaining these storage systems involves ongoing costs maintenance and data management. Opting for scalable, hybrid-cloud solutions can mitigate these hidden expenses by offering flexible storage options that grow with your needs.

Scalability Costs

Scaling traditional video security systems across multiple locations presents another layer of hidden costs. Expanding these systems is not as simple as adding more cameras; it often requires extensive hardware installations, including additional NVR/DVR units, hard drives, and complex network configurations. Each new location may need its own centralized recorder, wiring, and setup, leading to significant time, labor, and financial investments. Additionally, managing multiple siloed systems can increase the complexity of operations and maintenance, further driving up costs. Modern, hybrid-cloud security solutions offer a more streamlined approach, enabling easier scalability through centralized management and infrastructure that can be quickly expanded to new sites. This reduces the complexity and costs associated with traditional systems, providing an easier and more efficient security solution.

TCO and Ensuring a Cost-Effective Investment

To avoid the hidden costs that can turn a seemingly budget-friendly video security system into a financial burden, it’s essential to consider long-term expenses such as maintenance, storage, scalability, and operational resources. Opting for modern, hybrid-cloud solutions can help streamline maintenance, enhance cybersecurity, simplify your video security experience, and offer scalable storage options, ensuring your investment remains cost-effective now and in the future.

For many video security systems, the original quote is usually just the beginning of an ongoing investment that can continue to balloon over time. At Lumana, we view these hidden costs as potential pitfalls for every organization’s budget, which is why we offer all-inclusive pricing to make your investment predictable and consistent every single year. Learn how to save money on your video surveillance with Lumana. Click here to get a custom quote.