The total cost of ownership for an IP-based system is lower than an analog system. Even though analog cameras are less expensive to buy, the accompanying labor costs and expensive DVR equipment tip the scales in favor of IP cameras.
In an independent integrator survey in 2010, bids for analog versus IP-based systems for a retail store with 14, 25 and 40 cameras were compared. The survey showed that the IP-based bids were consistently lower, and the difference increased with the number of cameras. With 40 cameras offered, the IP-based system cost 16% less than the analog one.
Less cabling means less maintenance, and the open standard enables the use of inexpensive, off-the-shelf IT hardware for integrating functions.
Figure 12: The total cost of ownership for an IP-based system is lower than for an analog system.