DVTel Off The Rails - or Why DVTel didn't make it onto my Security Dreamer walking tour at ISC

DVTel’s IP network-based video and access control solutions integrate the company’s software and suite of IP network video cameras to provide advanced video surveillance and monitoring solutions.  Latitude, the company’s flagship software product, can support more than 3000 cameras with high-quality, real-time video transmission for live monitoring or recording to fully-integrated DVRs with unlimited storage capacity. DVTel’s challenge for the future is simply that it is tough to compete with an OEM strategy, especially when software comes from one OEM partner and hardware comes from another, while simultaneously trying to produce one’s own products.  One would be able to find better components by turning to specific manufacturers such as Bosch for better cameras, Verint for a broader line of encoders, Milestone for richer software.  However, DVTel aims to be the best source for a combined solution - a target that they are missing with greater frequency these days.

I'll go by their booth at ISC to see if anything changes my mind and I'll let you know.  If nothing Wows me, I may have to throw them in the Dog House.  It pains me to say that, because DVTel has so many of the elements of my dream vendor.  The company uses computers, software and networking best practices to do security better.  But pricing, sales techniques, questionable support and a host of technical and operational challenges threaten the company's health.

Once a networking company that provided data delivery technology over voice telephone lines, DVTel now focuses on video surveillance and security technology.  After surviving the dot com bust of the 1990s, struggling through bankruptcy and sifting through the technological landscape, DVTel's "eureka moment" came when it discovered the usefulness of a video for analog-to-digital translation, IP transmission and connection to a digital video recorder (DVR).  DVTel oriented its business around IP surveillance and is currently in development of its own line of IP cameras and encoders.  DVTel’s software and IP network video cameras provide video surveillance and monitoring solutions with real-time video, which can be used for live monitoring or recording.  Some of the company’s customers have installations with as many as 3000 cameras.   

Here is a short profile of the company.

History
DVTel’s expertise in video security grew out of its experience as a provider or VDSL-based products to the telephone industry, delivering high-bandwidth communication over existing telephone lines. At the time, DVTel products allowed the use of readily available telephone lines, rather than coaxial cable, as the standard medium to deliver images from remote analog cameras to centrally located DVRs.
Today, by using a high-quality encoder from Verint, DVTel systems have been enhanced to provide full analog-to-digital (A/D) image conversion at the source. Through its line of network products, DVTel delivers A/D conversion of analog video signals, reliable transmission of the collected data across IP networks, and digital-to-analog (D/A) conversion at the backend; allowing remote analog sources of video to be reliably connected to remote DVRs.

Executives
Eli Gorovici – DVTel President and CEO. Gorovici came to DVTel from NICE Systems, where he was the North American manager for NiceVision.
Paul Smith – COO and acting VP of Sales. Smith came to DVTel from AT&T.
Maria Cambria – product support
Ed Thompson – engineering

Funding
Interest in DVTel is held by private investors, principally a firm called SCP.  Estimated revenues for 2007 exceed $40 million. 

Products
Latitude NVMS – Network Video Recording Systems
DVTel’s main software product, Latitude, is a fully digital, IP-based network video management system (NVMS). The system combines video collection and storage with a single graphical user interface (GUI) for monitoring, recording, and analysis.
Latitude version 3.5 is an OEM of Genetec Omnicast software.

Altitude
DVTel has also developed a suite of professional grade network (IP) cameras, called Altitude. The fixed cameras are OEM’d from Verint and Vivotek, while PTZ dome cameras are OEM’d from Infinova with Verint encoders inside.

Latitude iSOC V5
Latitude iSOC V5 was developed in Israel by the original NiceEye group. As with any new product that is developed covertly, the V5 is an engineer-oriented product. The V5 has many capabilities at its core but has yet to prove its value to the market.
Both Latitude versions (3.5 and 5.0) are available as Classic or Elite. There is no substantial difference in the core software.

AVT
SceneTracker is a new product that features video stitching between camera views.
Video Analytics from AgentVI was added in 2007.

Encoders
The most popular encoders are OEM’d from Verint
New DVTel encoders are made in-house.  We have no information about quality or reliability.

3rd party support
Axis cameras and Encoders (version 3.5 supports more cameras than 5.0)
Sony Cameras (supported only in version 3.5)
Bosch cameras (supported only in version 3.5)
iQeye (supported only in version 3.5)

DVTel also provide a generic JPEG interface to receive a standard JPEG based stream from other IP cameras.

Sales
The company sells through resellers, integrators, dealers and also directly to consumers.  DVTel has been known to modify product features and integrate with other vendors to meet RFP specifications. 

Pricing
Currently, no public access has been granted for pricing information.

Customers
American Express, Ameriprise, - IP and remote access
Port Everglade – IP based integration with ObjectVideo
Logan Airport – IP based working with Andover Access Control – supporting the Axis chassis with Axis blade based encoders
Texas A&M University – Provided the ability to convert A&M parking lots into unmanned solutions using DVTel encoders to transmit both intercom audio and analog cameras video simultaneously over the university’s existing network.
Austin, Texas School District – DVTel systems monitor all of Austin’s128 schools.
DVTel’s large clients in Australia and Thailand with the company’s version 5.0 software have systems supporting more than 3000 cameras
Bangkok Airport – DVTel provides a full airport control solution (the main Airport SMS) with integration to most other systems at the airport (access, messaging, baggage system, etc.) except cameras and recording.
Melbourne Rail system – DVTel provides fixed video in all of Melbourne rail stations.
Systems from DVTel are in use securing large corporations, hospitals, schools, airports, retail, ports, casinos and prisons, as well as in access and process control settings.

Comments

[Chris Gettings]

Who else is on your walking tour in DVtel's segment? Thanks.
Chris

[R]

DVTEL revenue for 2007 was $32M

They are working for the last 12 months on their own encoder, but I think it is too late

[Ringo]

One of the better postings I've seen on this site. They are an OEM play, not a 'true' technology play. There support is absolutely pathetic (is it a single person?), and they are getting kicked out of all types of projects around the country. The $32M is impressive for sales, but I think that it has either peaked or will peak. I wonder how much VC cash they have into it, I'm guessing a lot. Where's the value if you don't own the technology????? They are arrogant too, which makes it all the worse.

I'd like to hear who else is in the doghouse!!

[Craig]

What makes you say they're arrogant? You said software was developed in Israel by the original NiceEye group... But who's owning it now ?

I can answer one of your latest question: Where's the value if you don't own the technology????? Making money selling it, it's obvious !

[Steve Hunt]

I'm not sure what you are getting at, Craig. Selling is not the point. Anybody can sell snake oil. Creating value is a different matter.

[Dojo]

Dvtel v5 is basically a version 1.

DvTEL 3.5 was actually GENETEC (just badged with dvtel logos).

GENETEC made version 4. So dvtel released V5 (but really v1)

Talk about marketing gimmicks... :-)

[Positively Negative]

I don't see any innovation coming from DVTel. If I was in the business of regurgitating other people's products and putting my name on it, I would call myself Philips. Looks like DVtel is only increasing business for its competitors.

[Joey Pirkle]

We just junked a 5.3 system and installed Genetec 4.4. It's way better. I've virtualized all of the servers. Something I couldn't do with DVTel v5. We're not a big operation, only about 275 cameras. Funny that the place I work for is listed...

[Mike]

There Access control system does not work. Do not buy this product since you will have to rip it out. They bought another company out and rebranding it. Stick to the CCTV side that looks good.