COPENHAGEN, Denmark, 19 April 2006
Milestone Systems, the world market leader in the development of open platform IP video surveillance software, has received the 2006 Frost & Sullivan Brand Development Strategy Leadership Award. In the course of conducting extensive research in the security market over the past year, Frost & Sullivan experienced a positive cross-industry ‘buzz’ about Milestone Systems, and carried out due diligence to determine the reasons.
The Frost & Sullivan Award for Brand Development Strategy Leadership is presented to the company that has demonstrated excellence in brand development within the industry. It recognizes a company’s ability to best perceive consumer needs and develop marketing strategies that elevate the brand’s quality, image and overall value perception. Through a combination of unique product quality, communication, distribution and packaging strategies, Milestone Systems has demonstrated superior market growth skills.
"Milestone Systems is widely recognized among the industry participants as a leading player in the open platform IP video surveillance software market. Its core competency in delivering solutions that meet dynamic needs of the market and its effective channel interaction programs make it a worthy recipient of the 2006 Frost & Sullivan Brand Development Strategy Leadership Award," says Frost & Sullivan research analyst Sathya Durga.
To select Milestone as the recipient, Frost & Sullivan tracked all the major players in the security industry, conducting interviews with customers and suppliers, doing hundreds of hours of extensive technology research, using pre-determined measurement criteria. Brand development efforts are analyzed based on the number of market participants, competing brands, commitment to the brand, and its recognition among peers and customers.
Milestone Systems has excelled based on the following criteria:
- Market penetration and market share growth in existing market segments
- Development of unique brand strategies
- Competitor recognition and value of brand
- Participation in industry trade groups with the goal of expanding market potential
- Establishment of programs that allow its customers to grow
- Increases in customer loyalty
Milestone Systems has seen very healthy revenue growth rates of 50-60% over the last several years. The most significant factor contributing to this growth is the company’s well-established channel network. Milestone operates in 55 countries and has an ever-increasing number of installations with market penetration of more than 10,000 customers. It is significant that Milestone has been profitable since inception and growing organically, independent of venture capital investments or other controlling interests. Frost & Sullivan also notes that Milestone’s effective marketing strategies include reaching participants through awareness, education, and channel interaction programs that aid growth.
Milestone partners and customers enjoy the freedom to choose which hardware they want to use with Milestone Systems’ open platform software for managing IP video surveillance. The open architecture also allows them to integrate their IP video with other business systems and devices, deriving added value through inter-operability. The reliable and robust performance of Milestone XProtect software also contributes to its popularity.
To help expand the security market’s understanding and adoption of IP technology, Milestone Systems has been a member and supporter of the IP User Group and Security Industry Association. The company has produced and distributed documentation of more than 60 customer success stories to illustrate and educate customers and partners in the many advantages gained with IP surveillance.
The partner channel has been notably lifted up to new levels of expertise and knowledge through Milestone Systems certification training programs, started in 2004. The company’s partner programs are continually being developed, and now include a Milestone Solutions Partner program for offerings that integrate the company’s XProtect IP video surveillance software with such systems as Access Control and Point Of Sale transaction systems, as well as a Manufacturers Alliance Program.
"It is extremely gratifying to be publicly honored in recognition of all our hard work to grow IP initiatives. Our mission is to drive the convergence of video surveillance with business systems, and we have spearheaded this movement with a global strategy. Our partner business model, market activities, and product development combine to move everyone involved forward," says Lars Thinggaard, CEO of Milestone Systems.
According to Frost & Sullivan, the $153.7 million global video surveillance software market is projected to experience a robust compound annual growth rate (CAGR) of 23.4 per cent from 2004-2011 to reach $670.7 million. This growth will be derived to an extent from the expansion of network-based systems including local area networks (LAN), wide area networks (WAN) and the World Wide Web.
Currently, the $44.3 million video surveillance software market in Europe, Middle East and Africa (EMEA) trails the Americas market in terms of revenues and growth rates. The EMEA market is estimated to record a CAGR of 23.0 per cent over 2001-2011 to touch $188.3 million. Initiatives to replace the installed base of analog cameras with network-based systems will support robust growth in the EMEA video management software market segment.