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The fundamentals of cloud-based video surveillance as a service (VSaaS) 

enero 16, 2025

While the majority of video surveillance projects are deployed on-premises, the adoption of cloud-based systems is growing at a rapid pace. According to Omdia, the year 2027 will see video surveillance as a service (VSaaS) represent 47% of the surveillance market in the United States. This article explains how VSaaS works and the reasons why organizations are making the switch from on-prem to cloud. Towards the end, we’ll also tell you what’s special about Milestone’s own VSaaS—Arcules.

What is cloud-based video surveillance?

The cloud is just someone else’s computer. Every solution that’s either fully or partially hosted in the cloud lets you rent space in a data center. This way, you won’t need a bunch of servers and other requisite hardware. 

While VSaaS is the focus of this article, it’s actually one of three cloud-based video surveillance options. Before we dive deeper into VSaaS, let’s define each option and the differences between them: 

  • Cloud-hosted VMS: This takes traditionally on-prem video management software (VMS) and puts all (or some) of the system in the cloud. For example, some organizations want to keep video recordings on-site, but they offload everything else to a cloud provider (e.g., Amazon Web Services). The customer often gets a perpetual software license for the VMS and then pays a separate fee to the cloud provider for the hosting services. Updating the VMS is still the customer’s responsibility. Learn more about cloud-hosted VMS.
     
  • Cloud-based VSaaS: VSaaS follows the software-as-a-service (SaaS) model where customers get a web-based product on a subscription basis. The payment model is one way that VSaaS is different from cloud-hosted VMS. Another difference is maintenance. With VSaaS, the provider takes care of automatic updates. Rather than having to plan and carry out system updates, everything happens in the background without the customer needing to do anything.  
  • Hybrid VMS + VSaaS: This is the most niche option, but one that’s slowly growing in popularity. If you’re having trouble with expanding surveillance coverage to remote sites, this could be your answer. VSaaS can help avoid the high costs and complexities of setting up a lot of hardware at each remote site. With the right setup, it can even accommodate sites where internet connectivity is unstable. Learn more about hybrid VMS + VSaaS.  
Is VSaaS secure?

Many customers are nervous about moving some—or all—of their security systems to the cloud because they're handling sensitive medical information, student data, etc. What's interesting is that many of these same customers are already using the cloud. For example, most schools use web-based apps like Blackboard or Classroom, and it’s very normal for hospitals to share medical records with external specialists. That’s all in the cloud. It goes over the internet. But it's still absolutely secure.  

 

Here’s why VSaaS is secure: 

  • Encryption: When video footage is captured by your cameras and transmitted to the cloud, the transmission is protected using industry standard encryption protocols, such as TLS 1.2 (Transport Layer Security 1.2) and AES-256 (Advanced Encryption Standard 256). Surveillance data, including live video streams and recordings, may contain sensitive or private information, and encryption protocols prevent interception, ensure that data hasn’t been altered in transit and guarantee that only authorized users and devices can connect. 
     
  • Failover: Some customers worry about what will happen if their cloud system goes down. But they can rest easy because reputable VSaaS providers (that work with reputable cloud providers) implement at least some level of failover to maintain service continuity and minimize downtime. Failover refers to the ability of a system to automatically switch to a redundant or backup system in the event of a failure.
  • Multi-factor identification: Multi-factor authentication (MFA) adds an extra layer of protection by requiring verification beyond just a password. SAML/SSO integration simplifies secure access management by enabling centralized authentication, ensuring consistent enforcement of security policies across platforms.
What features are available with VSaaS?

Here’s a breakdown of what customers get: 

  • Recorded and live video playback: VSaaS platforms allow users to view live and recorded footage from anywhere with an internet connection. This flexibility ensures real-time monitoring and quick access to past events for investigations.
  • Easy export and footage sharing: Users can usually export and share footage via links, email or SMS, ensuring fast collaboration during critical incidents or investigations. 
  • Rules to trigger specific actions: Another core feature is configuring rules that trigger automated actions, such as sending notifications or activating alarms. This makes for a more proactive approach to security.
  • Cloud-based analytics: VSaaS platforms often include analytics such as motion detection, object classification and people counting. Certain systems might also support camera-side analytics.  
  • Web-based and mobile applications: One of the core benefits of VSaaS is its remote accessibility. Users can monitor and manage their surveillance system via a web browser and/or mobile application. Each VSaaS provider will be able to tell you which countries/regions are covered.  
  • User roles: VSaaS systems offer flexible, role-based user management. Administrators can assign permissions tailored to individual roles or responsibilities, ensuring that sensitive footage and features are only accessible to authorized personnel.
What’s needed to make it work?

There are three main components to VSaaS, and your preferences for one can influence what you choose for the others: 

  • A subscription: Subscriptions typically cover access to cloud-based storage, a certain number of users, system updates and some cloud-based video analytics. The monthly or yearly fee will depend on the number of connected security devices (cameras, access control points, etc.), camera resolution and video retention time. 
  • Cameras: Camera compatibility plays a crucial role in determining the deployment model. Traditional IP cameras can often be integrated into VSaaS systems via gateways, allowing organizations to reuse existing hardware and avoid additional expenses. Gateways serve as intermediaries, connecting non-cloud-ready cameras to the cloud, while also providing optional local storage for regulatory compliance or bandwidth conservation. For more modern setups, Camera to Cloud deployment offers a direct connection to the cloud, with video footage stored locally on cameras and uploaded as needed. However, this method requires specific cloud-ready camera models. 
  • A data transmission method (or methods): VSaaS systems can leverage various transmission technologies, such as WiFi or Power over Ethernet (PoE), to send data to the cloud. For Camera to Cloud setups, video is uploaded to the cloud only when it is being accessed, significantly reducing bandwidth usage. Gateways, on the other hand, act as local storage hubs, sending selected footage to the cloud while conserving network resources. Some customers use different transmission methods across sites. 

    In the below diagram, sites A and Z are using gateway transmission, while the Small Site is on Camera to Cloud. Having a gateway can significantly impact the cost of data storage in the cloud (i.e., subscription costs), by allowing organizations to manage what data is stored locally versus in the cloud, which is one of the reasons why it’s still the more common choice. On the other hand, gateways cost money (i.e., a higher up-front investment), and might require some occasional on-site maintenance. 
What are the benefits of VSaaS?

Growing preferences for VSaaS are tied to changes in broader organizational priorities, such as:   

  • Minimizing the strain on IT resources: Hiring and retaining skilled IT professionals is a significant challenge. With the increasing number of devices and the network demands of video security systems, many organizations are trying to ease the burden on already overstretched teams. As a result, they’re ready to outsource the maintenance and hosting responsibilities of their surveillance system. 
  • Redistributing expenditure: More and more customers are reluctant to request the large up-front investments often needed for on-prem security systems. VSaaS offers an attractive alternative, as financial decision-makers prefer to shift video surveillance expenses to operational expenditure (OpEx).    
  • Ensuring connectivity and cyber security: Although some organizations continue to question the security of cloud technology, the truth (as outlined above) is that cloud-based surveillance can be just as secure as on-prem systems. And this fact is catching on. Some customers even consider VSaaS to be more secure, in the sense that it takes much of the maintenance work off the customer’s shoulders onto those of the vendor. 
What’s special about Milestone’s Arcules VSaaS?

Here’s how Arcules stands out from alternatives:  

  • Device agnostic: Some VSaaS solutions force you to purchase propriety hardware. Meaning that, if you ever cancel your subscription, you’ll have expensive, unusable cameras lying around. But Arcules is device-agnostic, giving customers much more flexibility. When used with a gateway, it’s compatible with pretty much any ONVIF Profile S device.
     
  • No additional cost for analytics: Arcules includes built-in analytics at no extra charge, letting security professionals find evidence and data more efficiently. Other providers may charge extra for video analytics with their VSaaS.  

  • Integrates with XProtect: As mentioned at the beginning of the article, there is growing interest in hybrid VMS + VSaaS setups. Arcules can integrate with Milestone’s XProtect video management software (VMS). This lets security operators monitor footage and alarms from VMS and VSaaS on the same screen without having to switch between applications.  

With more than 25 years in the video security business, Milestone has built ties with resellers and system integrators all around the world. Our customers get a product that has the R&D resources of a global company while enjoying local support through an incredible network of partners.  

If you’re interested in testing Arcules or a hybrid Arcules + XProtect setup, please book us for a personalized, one-on-one demo.  

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