John Honovich opened a discussion on this topic, along with a lot of good analysis at his web site:
http://ipvideomarket.info/report/sd_cards_video_surveillance_storage
This plays right into my most recent post on intelligent storage in the camera. The webinar I held last week had record attendance, so there seems to be interest in this subject.
I’ve been watching this shift in storage technology for the last few years, and I went through a lot of the same math that John spells out so well. I’d like to add a few added twists to the topic that show why I’ve come to a different conclusion.
The most important comparison that John points out is the cost of a 1 TB hard drive versus an 8 GB or 16 GB SD card. When you look at the cost in $/GB, the SD card is 21X more expensive. So, even though flash memory is dropping in price faster than hard drive memory, how could it ever catch up in the next five years?
Here’s an important piece missing from this comparison: You can’t just plug in your hard drive into the network, you need a storage server. When you get done adding the storage server, which includes all the hardware needed to manage lots of streams from many video cameras onto the hard drives, then the cost per TB is much, much higher. The typical end user price I’m hearing today is around $2,000. There is a wide range in pricing and options here, but this is the average I’ve heard.
That’s 20X more than the price of the 1 TB hard drive. Since the cost of the SD card is the total cost needed, this wipes out most of the cost difference with using SD cards compared to hard drives in a storage server.
If you put the hard drive in the camera directly, as we do in our iCVR, then you don’t need all of that server overhead. That’s why I think that today, putting a hard drive in the camera, ends up being the lowest cost storage solution.
For the next big factor that changes the math, take a look at this whitepaper by Uptime Institute:
http://www.uptimeinstitute.org/wp_pdf/%28TUI3008%29Moore%27sLawWP_080107.pdf
This shows a growing problem with the costs of data centers. It has become a lot more expensive to support servers these days than it used to be. Since the latest servers are far more dense in storage capability, and far more powerful, they also draw a lot more electricity to run, and they generate a lot more heat, which requires more electricity to cool the rooms down and higher support costs. On top of this, the numbers of servers in data centers are growing fast.
Take a look at Table 1 on page 3. It shows there that for every $1,000 you spend today on servers, there is a total cost of $3,510 over three years. That means you now need to pay the cost of your server over again each year, for overhead, power, and replacement of hard drives as they fail, in today’s data center. This is based on conservative electricity costs. In many parts of the world, it is going to be higher.
This includes the costs of hard drives failures, and that’s another big factor here, since flash memory lasts a lot longer. In fact, storage failure in cameras should become rare, while hard drives in DVRs and servers fail after 3-5 years.
While this overhead, electricity, cooling, support and hard drive failure costs aren’t usually calculated into the cost of servers when video surveillance systems are bid, that should change. IT managers realize this is a growing issue and that cost needs to be added into the true total cost of ownership when comparing.
These issues of power consumption and data center overhead, plus failure rates, is one of the reasons that solid state storage is expected to make serious inroads into replacing hard drives in storage data centers. The cost of the overhead and electricity and support has become bigger than the cost of the servers. Solid state storage uses far less power, has longer life expectancy, and can run at higher temperatures reliably.
The use of solid state drives is just now starting to be used in data centers, mainly for special applications, since cost is still higher. But most projections I’ve seen say that in 5 years, this is going to change and SSD will start replacing hard drives.
We can expect to see the same thing happening in laptops, since lower power consumption means longer battery life, and with the rugged abuse that laptops get, solid state storage makes a lot more sense from a reliability standpoint.
In five years, the growth rate of hard drives should start slowing significantly, as solid state memory starts taking over.
These are some big factors that clearly push the equation in the favor of SD cards as they drop in price, and they get large enough to provide 30 days of storage. They aren’t quite there yet.
The latest reports I’ve seen say that 64 GB SDXC cards will be available early next year, and 128 GB cards will be introduced by the end of 2010. If this is true, we could see 1 TB cards being introduced in 5 years, although I think it might take a year or two longer than that, since the rate of advancement will probably slow down a bit as the demand for such large storage cards will not be as high.
I agree completely with a lot of the other points that John raises: That video management software can’t deal with storage in the camera today. This needs to be addressed. Also, the storage on most SD cards in cameras cannot be accessed like you would a DVR (Mobotix is the only exception I know of, besides our own cameras with built-in storage). In fact, some cards need to be removed physically to access the stored video. So, this is a long way from ready for most cameras.
However, the cost impacts above suggest to me that SD cards in IP cameras (or microSD cards) will become the standard in five years. The largest megapixel cameras may require hard drives, but most of the cameras will have plenty of storage capability.
This is of course just a guess, and the thing about technology predictions like this is that you have to always wonder what factors you overlooked. Will a new technology be introduced that changes everything? Or does someone solve the problems with hard drives and server overhead costs?
August 19, 2009 at 10:42 pm
Hi Doug,
Good points. Thanks for examining many other important items on the topic.
One aspect I would question: “The typical end user price I’m hearing today is around $2,000.”
I think that number’s somewhat dated. For video surveillance deployments, I think 1/2 to 1/4 of that amount ($500 to $1000) is becoming quite common.
Even high end storage like Intransa or Pivot3 is significantly less than $2,000 per TB. Many of the NVRs being released today are providing servers with 4TB of storage for less than $3,000.
Then there’s the use of NAS arrays which bring the cost of storage way under $500 per TB (however these are only in limited use currently for video surveillance applications).
There are certainly ways to spend more than $2,0000 per TB (most of the incumbent DVR companies charge outrageous storage prices). However, either those companies will bring their prices down or have their market share taken away by the newer generation of products.
August 20, 2009 at 3:21 pm
John,
Thanks for your input on the server storage costs. You are closer to this than I am. What surprises me is the wide range in prices that I hear. I’ve seen some prices down as low as $500 as you point out, but I’ve not seen many integrators using those. More in the $1,000 range per TB, especially in large systems (1 TB and 2 TB systems are more per TB than 8 TB systems). But as you also mention, there are plenty of systems going in at much higher prices per TB.
I’m sure you are right that in the next year or two this is going to flatten out.
I’m no expert on what the average is, so I’ll take your word that $2,000 to the end user might be high. But once you add the total cost of ownership, the SD card still looks quite competitive in 5 years.
What I’ve heard from specialists in SSDs moving into data center servers is that SSDs are more expensive today (of course they are more expensive per TB than SD cards as well), but they expect that to change in the next 3-5 years. My guess is that’s about where the shift in SD card storage should also start looking more compelling.
Thanks for the input on storage server pricing.
August 20, 2009 at 11:35 pm
Hi Doug,
I certainly agree on storage moving to the edge for all the reason you mentioned here & also in the webinar. The key thing for an enterprise with existing infrastructure storage and bandwidth costs already planned & budgeted by the IT managers. So for adding the delta is not a big concern. However for other users who have no infrastructure (obviously they form a larger market) having storage at the edge makes sense.
But if I’ve to pick up one nit in your theory, the VMS need to manage all the cameras & for search and play back kind of feature that’s common across all VMS’s, the user need to login to each individual ip cameras to search for an event/alarm since the storage is still at the edge. Unless the VMS also knows (meta data) of what’s being stored in each of the IP cameras, it’s indeed a slow search.
August 21, 2009 at 8:24 pm
Gautham,
Thanks for your comments.
Yes, if an IT department already has incurred the expense of building the space for the servers, some of that overhead cost is covered, and some IT managers will ignore that portion of the costs. However, it surprising how much the electricity costs and replacement costs of hard drives add up to. Those are still additional costs that should be considered.
As for the VMS issue, we already have a camera with built-in storage. Our current models use a 2.5 inch hard drive, the type you find in rugged laptops. Until SD cards are cost effective, this provides the best solution for storage in the camera.
We supply our own VMS with our camera, which works great for small systems. It provides all the search and playback options you mentioned, plus a number of other improved methods of searching.
The good news is that we will be announcing integration with the largest VMS companies in the next few months. They will be able to fully access the video stored in our cameras, just the same as if each camera was a single channel DVR.
Search is a few seconds slower than if you were using an NVR, but not much slower, since we have a full relational database in the camera, along with tons of added metadata that we get from our video analytics.
So, you can more quickly find events and have far more search capabilities than a traditional NVR or DVR.
In most ways, the storage in the camera is invisible to the user when searching or playing back video. Networks are fast enough that you generally don’t see any difference.
At first, we expect the VMS integration to be able to access the stored video and play it back like a traditional NVR. We send them links to the alarm event video clips, so they can access them quickly without searching. However, some of the metadata search capabilities that we offer with our VMS will probably be added to the integrated VMS systems later. You can still use our client for that, when needed.
So, we are almost there. As you said, this is an important issue. We see it as a big milestone (name dropping intended). We’ll be making announcements about this soon, and will be demonstrating it at this upcoming ASIS conference in September. Stop by and we’ll show it to you working.
Thanks.
August 24, 2009 at 8:35 am
Hello Doug,
“Also, the storage on most SD cards in cameras cannot be accessed like you would a DVR (Mobotix is the only exception I know of, besides our own cameras with built-in storage).”
The interesting thing is that even some Asian corporations provide such compatibility. Example? Dahua Technology and their IPC-F725P. You can use a 32GB card with it, You can view recorded video without removing the card. Obviously this trend is getting more popular.
Regards,
Marian Maroszek
November 5, 2009 at 8:54 pm
I like this theme you are using… what is it?
November 6, 2009 at 1:20 pm
It is called: “Connections” by Patricia Müller.
Thanks for the compliment.
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