Total cost of ownership (TCO) in network surveillance

August 2024 Editor's Choice, Surveillance

Amid South Africa’s political and economic uncertainty, many businesses and institutions are looking closely at how they can extract as much value from their infrastructure and resources as possible. That includes physical security, which encompasses everything from protecting infrastructure and resources, enforcing health and safety measures, to deterring inappropriate and criminal behaviour. Even though property-related crimes on residential and non-residential premises have recently decreased, organisations still need to adequately invest in solutions.


Rudie Opperman.

But how big should that investment be? Physical security is no longer just about protecting people and assets, not when cutting-edge network and the Internet of Things (IoT) solutions open the door to expanded use cases across all business and life activities. A security camera can both protect a building and provide insights such as the amount of foot traffic. Organisations do not need to spend more money than they necessary, not when they are aware of the total, actual cost of their security investments.

Running the numbers

Several market drivers, including the availability of new technologies, pricing changes, new threats and updated risk assessments, and changes in operational footprint drive companies’ budget allocations for physical security. All this reflects not just the need for adaptability in an organisation’s budget, but also a need to maximise the return on initial investments.

Total cost of ownership (TCO) puts the actual cost of a single security product into full perspective. For any product or solution, TCO encompasses everything, including the initial purchase and installation, the product’s energy consumption, network resources and management, ongoing and spot maintenance, and the salaries of the people employed to look after it.

Failure to conduct comprehensive TCO analyses leading up to purchases and deployments may result in severe consequences. These include miscalculating budgets, purchasing unnecessary products or components, and generally underestimating or overestimating long-term needs surrounding security.

Security that comes at a cost

According to TCO analyses of security systems of Axis customers from around the world, including South Africa, the system costs prior to their deployment account for only around 30% of its total TCO, with the remaining 70% of costs occurring during its operation.

Therefore, TCO is a powerful tool for customers when calculating the cost of a project or tender. Imagine the potential scale at play here, like a network of video cameras that provide surveillance across a metropolitan area. Hundreds, possibly thousands, of devices require regular repairs or downtime, which could further impact urban activities. such as public transportation or emergency response services. In use cases like this, the value of a system even extends to elements like reduced instances of criminal activity and suspicious behaviour.

The rate at which technology evolves is also a factor. A device being rendered obsolete can compromise long-term investments in surveillance projects. Therefore, future-proofing systems is essential and can be accomplished via open standards in technology and system architectures. The lifecycle of an effective system should factor in a level of flexibility, a quality that all modern business operations need to exhibit.

Making the most of your investment

Determining TCO for security systems should never be limited to just checking the warranty on a piece of hardware. Looking more broadly, it should be part of a comprehensive consideration that, ideally, leads to significant cost savings and an improved return on investment.

From the get-go, organisations should identify solutions based on the value they add to operations. Calculate how those solutions may influence existing infrastructure and estimate their cost, leading up to making a final, informed decision. Organisations do not need to do this alone. During this process, they can identify vendors and partners that can assist and have an active stake in successfully implementing solutions.

Businesses in South Africa excel at leveraging available resources and making the best out of a difficult operating environment. Part of that involves having a heightened focus on value. By scrutinising and fully considering the cost of their security and network surveillance systems, they can optimise themselves further while contributing to a smart and enhanced security landscape.


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