Smart Security Cameras: No Cloud, No Problem

Spend enough time with modern security cameras, and the fragmented cloud storage ecosystem becomes increasingly apparent. Almost every manufacturer has a cloud subscription that provides additional revenue for itself. While some revenue sharing exists within the security and integration dealer landscape, traditional retailers have few methods to balance low-margin security cameras.

However, retailers should consider selling security cameras with local storage, which aren’t wholly dependent on the cloud. These cameras use a microSD card or network video recorder (NVR) to keep video recordings on-site and off the internet. Local security camera storage is an opportunity for retailers to connect with privacy- and budget-minded consumers, while improving margins overall. Let’s explore a few ways local storage media can round out a retail security camera strategy.

The benefits of keeping video footage off the cloud

While it seems counterintuitive, most local security cameras have mobile apps. This matches the user experience of cloud-based systems, even allowing for remote access. Two primary perks come with local video storage: price and privacy. In terms of price, local video storage eliminates costly cloud subscriptions to save money over the life of a security camera.

A pricey 256GB security-rated microSD card can hold over eight days’ worth of continuous video (at 2,560 Kbps) for $100 — event-based recording further extends this. In contrast, Arlo charges $10 a month (or $80 for the annual plan) for 60-day cloud storage on a single security camera. Even a relatively short camera lifetime of two years saves the customer around $60. (Or $115 in savings using a standard microSD card with the same capacity.)

Regarding privacy, many tech-literate consumers resist giving security footage to corporations, even with assurances that employees won’t look at the data. While physical media may be more vulnerable to theft, consumers may find some comfort in the increased level of privacy it otherwise provides against corporate algorithms.

To illustrate, Surfshark, a VPN provider, recently published a study of eight popular AI security camera brands that analyzed how much data the companies collected. It notes that “Despite claims of enhanced safety, most popular models require companion apps for setup, notifications, and cloud storage – apps that often collect additional information unrelated to core camera functionality.”

Security cameras and law enforcement

Understandably, part of customers’ hesitation also comes from companies that have established agreements with law enforcement agencies. Recently, Ring began to walk back its most controversial policies regarding data sharing with law enforcement, as well as ending its partnership with Flock Safety, a police surveillance provider.

However, most security camera privacy policies often permit brands to share data freely if the company believes an emergency exists. In theory, this benefits first responders seeking information about a developing emergency. However, such policies give too much leeway for companies to define what constitutes an “emergency,” and process the requests as they choose — emergency or not. Under these circumstances, it’s understandable when privacy-focused customers forgo cloud storage to guard against surveillance and data breaches.

Notably, local security camera companies likely have some of a user’s data, especially if there’s a mobile app. This is subject to request, and even video thumbnails can serve as probable cause for a warrant. Retailers shouldn’t sugarcoat it: Customers seeking true privacy must use a security camera without an internet connection.

What local security cameras mean for your business

Building a business strategy around local security cameras means knowing that your primary opportunity is selling camera-oriented storage media like microSD cards, hard drives and NVRs. Even with these specialized storage options off the table, security camera storage offers more profit potential than cameras.

Understandably, many customers are skeptical about the merits of security-centric storage. Ensure that your sales team can explain how standard storage devices may not stand up to continuous recording in the long term. For example, most local security cameras constantly record and can’t even stop when the hard drive fills up — as that’s an obvious security issue. To prevent this, a security camera deletes the oldest clips to ensure it can store the newest, most relevant footage.

As such, security cameras put a lot of strain on storage media, so having durable, weatherproof options is imperative for reliable performance. This means you can focus on surveillance-rated storage like Seagate SkyHawk HDDs or SanDisk Max Endurance microSD cards. Because some consumers will still choose more generalized types of storage, it’s important to cover both bases.

Lastly, most local security cameras are more affordable to purchase than those requiring cloud storage. This applies even when accounting for storage that’s sold separately. It may be easier for budget-minded customers to justify a local storage purchase than one with subscription strings attached. Whether they buy for privacy or price, meeting consumers’ security camera needs is always worthwhile.

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