Analysing the TCO of video surveillance systems

analysing-the-total-cost-of-ownership-of-video-surveillance-systems

There are few studies modelling the total cost of ownership (TCO) – total estimated costs across a system’s lifecycle – of video surveillance systems, despite this being a mature concept in many other industries.

In this paper, Axis Communications presents the results from a TCO study conducted in 2015, resulting in a model with 40 costs relating to system components and stages. The model is populated with an example city surveillance project. The analysis looks at how hardware, software, installation maintenance and operation costs combine towards the total cost of ownership.  The paper also looks at how different technologies and approaches can be used to reduce the overall TCO.

“A common misconception companies make when procuring business technology is that the upfront cost will make up a large majority of the total outgoings for a project. This is not the case – a Total Cost of Ownership (TCO) analysis is vital to help firms realise the true overall expenditure of a project, including the whole cost of acquisition, the entire operating cost and the total decommissioning cost.” Jonathan Whiteley, MD, Horus Security Consultancy Ltd

“Costs that can’t be overlooked are those associated with service and maintenance. The importance of product reliability is often underestimated when these costs are taken into consideration and this can lead to unexpected outlay or an even more expensive burden – system downtime. A quality solution, designed with performance and reliability in mind, has been proven to have a significant impact on a system’s TCO.” Carl Chippendale, B.Eng (Hons) MIET MSyI, CDC Technical Services Ltd

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