april 2025
// VIDEO SOLUTIONS
Easing Your Clients Through a VMS Upgrade
Whatever the reason may be that end users initiate an upgrade of their video management software, as a security integrator you can make the process easier by addressing all of their technology questions and practical details.
By Laura Stepanek, SDM Contributing Writer
Security of a VMS should be a top priority, with strong encryption, multi-factor authentication, and automatic updates to help prevent cyber threats. It’s also important to vet your manufacturer partner’s cybersecurity record, customer service and technical support. Image courtesy of Eagle Eye
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Working with a client to upgrade their video management software (VMS) can produce many positive outcomes. End users gain a more capable system because elements such as analytics, remote connectivity, and third-party integrations are usually elevated. An upgrade also can yield more stringent cybersecurity protections, as well as the ability for clients to scale and expand their systems cost-effectively.
The advantage to security integrators in upgrading a customer’s VMS is that it can add revenue streams from items like cloud subscription fees, service and maintenance agreements, hardware upgrades, remote monitoring, and more. It’s usually a win-win.
Making sure the process goes well is the key to achieving these benefits. Overall, success can be found in addressing the details, beginning with: What is the customer’s current VMS missing that they need, and what additional features would be useful?
There are several reasons why end users would initiate a VMS upgrade, including:
- Progressing from analog to digital technology.
- Achieving NDAA compliance.
- Leaving behind inadequate technology.
- Wanting more advanced features.
- Improving back-end performance.
- Adding the ability to scale the system.
- Gaining better cybersecurity.
“Funny enough — even though it’s 2025 — we’re running into many customers that are still using analog technology and they want to get into the digital world,” says John Rathwell, president and owner, Detection Systems and Engineering Inc., Troy, Mich.
A relevant question for organizations upgrading their VMS is who will be using the video system and how. Don’t assume it will only be the security team; it could be human resources or even operations to check that certain procedures are occurring or safety practices are being followed. Image courtesy of Detection Systems and Engineering
When helping clients with a VMS upgrade, Scarsdale Security’s Jim Mahoney emphasizes ease of use and practicality over having superfluous features that may never be used. He says this approach frees up dollars that can be used elsewhere in the end user’s budget. Image courtesy of Scarsdale Security
Andy Schreyer of Stone Security holds up two of the many partner awards the company has received from manufacturers, demonstrating that it has earned their confidence as an integrator partner. Stone Security was SDM’s 2020 Systems Integrator of the Year. Image courtesy of Stone Security
With analog cameras connected via coax to a digital video recorder, Rathwell says these end users likely don’t have analytics and other valuable features. An upgrade from analog to digital could be extensive, because it’s likely the customer also would want to include network IP cameras rather than adding encoders to existing analog cameras. Customers also may upgrade their cameras to higher megapixel models or units with built-in analytics if they’ve discovered they weren’t able to capture footage of a critical incident.
Prior to 2019, some integrators had been installing video surveillance cameras manufactured by companies that subsequently were banned by the 2019 National Defense Authorization Act (NDAA). Some of the entities that receive federal funding and are covered by the act, such as municipalities and public schools, “are upgrading now because they have non-compliant, non-NDAA systems,” Rathwell explains.
Getting Up-to-Speed With the Latest VMS Features
Scarsdale Security Systems Inc., Scarsdale, N.Y., handles about 100 VMS upgrades each year. Jim Mahoney, vice president sales at Scarsdale, says the highest force that is driving customers to upgrade is obsolete technology. “It’s systems out there that can’t be supported anymore, so they have to make an investment [to] upgrade. But also, some of the older technology lacks the ability to scale and to grow and still bring it back into one mainframe,” Mahoney says.
In some cases, upgrading involves a complete switchover from one VMS brand to another. In other cases, upgrading means moving a customer from a previous version of their existing software to a newer version, which is what Salt Lake City-based Stone Security typically handles. They represent only one major VMS vendor and complete 200 to 300 client upgrades each year — mostly so clients can gain technology advantages. It’s a more complex process than doing just a simple patch or a firmware update, explains Andy Schreyer, vice president of security technology and marketing at Stone Security.
Though the vendor issues two or three new software releases each year, clients don’t always upgrade that often — sometimes they go a year or more before getting the next version. “If the system’s working well, the reason why someone would upgrade is if there are features that are released that they would like to take advantage of. Or, if there are issues that they’ve been experiencing that [were] fixed in the new version, that’s another reason why they would choose to upgrade,” Schreyer explains.
Helping a customer through an upgrade starts with examining the customer’s existing hardware and software versions. “Whether it’s camera technology or recording appliances like servers, those have about a five- to 10-year lifecycle,” Schreyer says. “If it’s been a long time and we’re going to do a major VMS upgrade on the software, we do tend to pay attention to where the hardware is at right now — are we knocking on the door of five years? Because maybe it’s time to consider that as part of this big VMS upgrade, too.”
Stone Security has found that sometimes the need to improve back-end system performance and cybersecurity are the factors stimulating change. Having the VMS “run better, faster, smoother” and ensuring that it contains the latest security protections are important reasons for upgrading, Schreyer says. Upgrades also may be done to address Windows operating system compatibility.
Choosing a VMS with an intuitive interface will minimize the learning curve for the end user’s team. A user-friendly design can enhance productivity, reduce training time, and enable a proactive approach to security before losses occur. Image courtesy of IDIS
Funny enough — even though it’s 2025 — we’re running into many customers that are still using analog technology and they want to get into the digital world.
— John Rathwell, Detection Systems and Engineering Inc.
A Closer Look at the Details of an Upgrade
Security integrators typically excel in the role of trusted advisors to their clients. In the case of a VMS upgrade, the topics they need to advise on range from features and integrations, to security and performance, to user practices and logistics of the upgrade.
Foremost is the discovery phase, which involves learning what the customer’s long-term plan is. “Why are you trying to upgrade? Are there integrations that you don’t have with building management systems, with security alarm systems, with access control systems? What’s driving your initiative?” Mahoney asks.
That discussion might lead into one about the current system and its components, he says. “Are we able to use anything that you have — meaning, is it IP and we’re just changing the VMS so we can use some of this technology and still get the benefit from it?
“And once that gets going, it turns into analytics and reporting and budgets, and all of those factors,” Mahoney describes. “It really is just kind of an open dialogue.”
Rathwell says Detection Systems and Engineering, which represents six or seven VMS vendors, asks the client if they’ve seen any specific products that they’re interested in. That answer usually leads into a discussion about features, he says. Customers may ask about mobile apps for remote connectivity; floor plans with icons that can pop up camera views in the VMS; having audio synched to video; integrating license plate recognition; and many other features.
Since the convergence of artificial intelligence with video surveillance, analytics have become a major factor in discussions about upgrades. Analytics provide alerts that match the customer’s criteria — a response to the algorithm, Mahoney describes. “Rather than looking for something, now you’re being alerted to something, and I think that’s driving remote observation to be more important,” he says.
It’s noteworthy to point out to customers that some cameras contain very powerful analytics. This is a cost-effective alternative to purchasing highly robust server solutions to process the AI, Schreyer says. He believes that the pattern of processing analytics on the camera edge has the tendency to scale better. Schreyer also thinks that leveraging the built-in camera analytics can make a VMS upgrade “quite a bit more simple.”
When to Use the Cloud for VMS Hosting/Storage
Another key decision revolves around system architecture; whether the client wants part or all of the VMS to reside in the cloud. “Most of our clients that are trying to future-proof their security solutions are looking to the cloud because every other system that they use in their business has moved to the cloud already and security is kind of the last [one],” Schreyer says.
5 Key Revenue Sources Integrators May Tap Into Through a VMS Upgrade
Upgrading a client’s video management system and associated hardware often presents an opportunity for security integrators to upgrade their revenue.
There are five key sources that integrators typically find when doing a VMS upgrade:
- Additional hardware, such as cameras, servers, and related products.
- Service level agreements (SLAs) from contracts between security integrators and customers, defining the services to be provided and the level of performance to expect.
- Reselling of VMS software licenses, typically per-camera.
- Share of cloud subscription fees.
- Share of remote video monitoring from third-party central station.
“The No. 1 revenue opportunity really is going to be recurring revenue,” Scarsdale Security’s Jim Mahoney says. “That’s going to be relative to the licensing and any subscription services that they have. Especially if they’re going to the cloud, there’s typically a monthly fee associated with that.”
The SLAs that Scarsdale offers cover health monitoring, which identifies if a camera is operating or not, and whether the image is distorted or covered up by something that may be stacked in front of it.
The agreements also include “scene view” monitoring. “Once you have the camera scene documented, if that scene changes [the customer] gets an alert or we get an alert, depending on how we have it set up, that the scene has changed. We know we need to dispatch a tech to get the camera pointed back in the right direction,” Mahoney says.
“Upgrading our customers to a modern VMS and IP video system has been transformative for our business,” he says. “We’ve seen a significant increase in our recurring monthly revenue specific to service level agreements. “The IP systems and VMS support are more advanced, so I think as these systems evolve in their necessity for uptime, our monthly recurring revenue streams will continue to increase.”
In addition, a VMS upgrade usually involves an upgrade of some hardware, such as on-premises servers or newer, better cameras to enhance the system. Hardware sales can be a good source of revenue in a VMS upgrade, “Especially if they’re upgrading massive amounts of hardware or they’re moving forward in a direction where they’re using new hardware in new locations,” Mahoney says. “That’s a nice revenue-builder as well.”
“Most systems integrators — old school — have in the past have made money on the installation of the product. But now the industry’s changing and there’s more opportunity to capture recurring monthly revenue (RMR) from the cloud-based services,” says John Rathwell of Detection Systems and Engineering Inc. The structure encompasses a fee per camera, typically per month. Some of the manufacturers charge on an annual basis. “You can buy a one-year license, a three-year license, a five-year license to have that video pushed to the cloud,” Rathwell says.
Additional revenue stems from software service agreements on the VMS software, and maintenance contracts covering servers and cameras. “If the camera fails, the integrator replaces it at no cost. Those are some ways that integrators can generate recurring revenue from a VMS system,” Rathwell says.
The top two revenue sources related to VMS upgrades for Stone Security are cloud subscriptions and SLAs. “Proving to the customer that it’s worth it for them to purchase a service agreement with Stone Security because we’re going to help them with these upgrades — that’s a way that we can add value,” says Andy Schreyer at Stone Security.
The company’s chosen VMS manufacturer provides what it calls annual renewals, and Stone Security benefits from reselling those annual renewals. They include VMS upgrades at no cost, as well as additional service and support. “So there are benefits for a customer to remain current, and they give us a revenue stream,” he says.
In addition, hybrid cloud solutions, where some of the video is stored in the cloud, are structured so that Stone Security resells the subscription and recognizes a portion of the subscription as revenue. “If it’s a full cloud solution, that’s all RMR,” Schreyer says. “Those are a pure SaaS model [and] we do have offerings for pure SaaS.”
Some security integrators now offer remote video monitoring, which presents another significant source of recurring revenue. If they don’t have their own central station, they simply use the services of a third-party UL listed monitoring station.
“You first have to have the proper analytics to make it actually work with the remote monitoring solution,” Schreyer says. “So, you’ve got to have integrations into [systems] where that remote monitoring service can get those alerts in real time and then respond to them. It’s so cool how those technologies are coming together.
“It’s unfortunate that our type of integration firms have been so focused on large projects that we’ve maybe missed a little bit of the opportunity,” Schreyer adds. “I hope our company continues to pursue those types of RMR situations, because it’s nice to be able to have customers that are constantly working with us that way. It’s a good relationship if you’re doing service that’s monthly with them.”
However, he thinks one of the arguments for sticking with an on-premises system is that they are more advanced. “With these enterprise VMS systems that weren’t initially built out as cloud, they’re so far ahead on features that it is still going to take the cloud VMS quite a few years to be as capable and as powerful, as robust as these enterprise on-prem VMS,” Schreyer says.
With that said, however, some clients are interested in a hybrid approach — in which they augment some of their storage in the cloud — because cloud storage is becoming more affordable than buying additional servers, he says.
A discussion about cloud hosting will surely involve the customer’s IT department. “At some point, IT is going to have to be involved, because your video management software is going to be sitting on a server — either cloud-based or premises-based. And if it’s cloud-based, we’re going to have to work with the IT department to push that video out of your facilities,” Rathwell explains.
Because the customer’s new VMS likely will not recognize the indexing patterns of the old VMS, there is a chance that some of the existing video recordings will be permanently lost unless the integrator provides a solution — such as temporary cloud storage — for retaining it.
“If it’s a client that has requirements for maintaining 30 days of video recordings at all times [and] we’re going to give them a new VMS, we need to safely transfer data. Otherwise, they lose that and they start from the day the new VMS is turned on,” Schreyer explains. “If they have an incident back 30 days that they’re legally required to have storage for, we need to make sure to help them maintain that.”
Another necessary part of the discussion is whether the customer’s old platform should be kept up and running while the new one is being installed. If it can be taken down, then how long is an acceptable transition period from the customer’s old video management system to their new one? Rathwell asks. He says that certain customers, like banks and cannabis operations, may be required to have video up and running continuously.
VMS upgrades can be significant undertakings, often bringing about many questions. By assigning a person or team with first-hand knowledge of the customer’s operations and a deep understanding of video technology, you'll set yourself up for success in your next VMS upgrade.
VMS Specialists Offer Guidance to Help Your Clients Accomplish Upgrades
There are so many important reasons your customers would need or want to upgrade their video management software. It may be to take advantage of superior security policies, to leverage an open architecture platform, or because of a dire need based on a past incident to produce better image quality than their current system does.
VMS vendors — who study all of these factors and more — impart their most important advice about selecting a new VMS solution, which you can then share with your customers.
There likely isn’t a customer out there who wouldn’t want their cameras to stay connected, their recordings to keep running, their operators to do their jobs without interruption, and all of their third-party integrations to keep working exactly as required, describes Tim Palmquist, vice president, Americas, Milestone Systems, Portland, Ore. Meaning that, “You want a trusted upgrade that’s been thoroughly tested and vetted.
“Second, cyber hygiene is critical in today’s environment,” Palmquist says. “You’ll want to ensure the upgrade includes the latest security improvements and vulnerability fixes. Cybersecurity is the number one best reason for staying current with your VMS.”
Customers should definitely choose an open platform, advises Tom Cook, executive vice president of sales, marketing and operations, North America, at Hanwha Vision America, Teaneck, N.J. This enables the VMS to integrate seamlessly with a wide range of video products, cameras, and IoT devices. “The right solution will support industry standards and offer APIs, SDKs, or partnerships with other providers to enable easy integration and customization,” Cook says.
Another important consideration is perpetual licenses, which sidestep annual or recurring fees, Cook says. End users pay just once and subsequently own the software, which can save them money over time and help with more predictable budgeting. “Look for a one-time payment with the option to purchase support and updates as needed, and clear terms for licensing, including any limitations on the number of devices or users,” Cook says.
Choosing an open platform VMS is important for many reasons, another of which is that it prioritizes flexibility and scalability to accommodate future growth, without locking the user into a proprietary system, says Justine Saunders, program manager, video management, Axis Communications, Chelmsford, Mass. “An open-platform, single-vendor solution offers simplified design, cost structure, and system management while offering the flexibility to integrate with third-party devices as your needs evolve,” Saunders says. She says to ensure your customer’s investment remains adaptable and relevant, they should select a vendor that offers a broad support network, industry expertise, and a clear product roadmap.
An open and flexible VMS is the key to not getting locked into a single vendor and therefore restricting possibilities with integrations and emerging technologies. The platform should support on-premises, cloud, and hybrid deployments in order to let the customer scale their system without costly overhauls, says Charles Nguyen, product marketing manager, Genetec Inc., Montreal. “Think beyond video. Unifying video surveillance with access control and other systems in a single interface enhances situational awareness, streamlines operations, accelerates incident responses, and speeds up investigations,” Nguyen says.
He emphasizes that cybersecurity is a must. “Look for systems with built-in encryption, secure access controls, and compliance tools to protect data as security standards evolve,” Nguyen says.
Today, a cloud-based VMS should always be part of the discussion with customers, because in some form or another, it might be the best solution for your customer. A cloud-based VMS is inherently flexible and future-proof, says Dean Drako, CEO, Eagle Eye Networks, Austin, Texas, meaning it can be upgraded, expanded, and customized as the business grows.
“An open-platform cloud system, which works with all camera manufacturers, existing cameras, access control and other third-party technologies, is the best,” Drako advises. “Avoid systems that require high upfront costs and vendor lock in. Look for a cloud-based subscription model with affordable annual fees and a lifetime repair-and-replace policy for hardware. Is the AI in the cloud where it will continue to improve and become more accurate?”
A vital part of assessing a VMS upgrade is doing a calculation for total cost of ownership. “It involves evaluating not just the upfront costs but also the ongoing costs related to control room and field-based operations, maintenance fees, support, and video storage,” says Mike Rose, executive vice president sales, IDIS Americas, Coppell, Texas. “That means prioritizing essential features such as live streaming, recording capabilities, AI-powered analytics, and remote access, based on your operational and users’ needs. Determine how many cameras you need to support now and into the future to understand your retention burden.”
Rose is another who advises users to not incur license fees to support third-party equipment during a phased upgrade. “And, very importantly, evaluate modular VMS that only charge one-off fees for the functionality you need versus annual recurring license fees that soon eat into your annual budget,” Rose says.
Integration, scalability, reliability and total cost are all important factors to consider, says Doug Coppola, senior director, sales, at LenelS2, Honeywell Building Automation, Atlanta. Choose a solution that integrates legacy and modern systems, and prioritize a unified interface to manage diverse video subsystems across sites that requires minimal retraining, Coppola says. “Ensure scalability from as little as a few up to thousands of cameras and seek features like analytics and interoperability with access control.
Select a VMS that maximizes existing investments, enhances efficiency, and adapts to future needs,” he says.
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