AI-Powered Video Analytics

Cloud vs. On-Premises VMS: Selecting the Right VMS Deployment for Your Security Requirements

In today’s rapidly advancing world of security and surveillance, businesses and organizations must choose the right Video Management System (VMS) to handle their video data, security operations, and footage storage. Among the choices available, Cloud-based VMS and On-Premises VMS are two prominent options that businesses can choose from. Both have their advantages, but the decision on which platform to adopt depends on several factors such as cost, security, scalability, and maintenance requirements.

In this blog, we’ll explore the key differences between Cloud and On-Prem VMS, their respective benefits, and help you understand why more and more companies are shifting toward cloud solutions like Drishticam.

Cloud-based AI-Powered VMS

Cloud VMS solutions like Drishticam are hosted on the cloud, meaning that all your video footage, analytics, and security features are managed and stored remotely. These systems are designed to be accessed over the internet and are supported by cloud storage services. Drishticam, for instance, provides features like AI-based intelligent algorithms for real-time analysis and cloud recording capabilities, making it a highly effective solution for modern surveillance needs.

Growth Trend:

i) Market share (~41% in 2024), but stronger projected growth likely >20% CAGR, possibly above 25% per Markets & Markets trends.

ii) Cloud-based and hybrid models are rapidly gaining adoption due to scalability, analytics, OpEx models, and remote management

iii) Financial shift: Subscription/OpEx models dominating.

Key Features Cloud-based Deployment:

1. Scalability on Demand: Cloud-based VMS platforms provide an immense level of scalability. Businesses can easily scale their surveillance systems as they grow by simply adding more cameras subscription or storage capacity without needing to purchase or maintain new hardware.

2. AI Integration: Advanced AI algorithms, such as facial recognition, Intrusion detection, and vehicle number plate recognition, more than 100+ can be seamlessly realized and integrated into cloud-based platforms, providing enhanced intelligence for surveillance operations.

3. Remote Access & Management: Cloud-based solutions allow users to access footage and manage cameras from anywhere in the world, provided there is an internet connection. This remote capability makes it ideal for businesses with multiple locations or remote monitoring needs.

4. Lower Upfront Costs: Reduced need for on-prem hardware translates to lower capital expenditure.

5. Automatic Updates & AI Enhancements: Benefit from continuous improvements, including real-time AI model upgrades and security patches.

On-Premises VMS:

On-premise video analytics systems are deployed within an organisation’s local infrastructure. The video footage is stored either on physical servers or Network Video Recorders (NVRs) within the organization’s premises, and the system is managed by the in-house IT team.

Growth Trend:

i) Still holds the majority market share (59% in 2024), heavily used in high-security, privacy-sensitive, or low-internet scenarios.

ii) Expected CAGR moderately lower than cloud based VMS, potentially in mid-teens.

Key Features of On-Prem VMS:

1. Complete Control: Since the system is hosted locally, businesses have full control over their video surveillance setup, including data storage and security protocols. This can be crucial for industries with strict regulatory or security requirements.

2. Offline Functionality: Unlike cloud-based systems that rely on internet access, on-prem VMS can function even when the internet is down, as the system operates entirely within the local network.

3. Data Sovereignty: For organizations that have strict requirements regarding data sovereignty, on-prem VMS ensures that data remains within a specific jurisdiction.

Which One is Right for You?

Choosing between cloud and on-premises VMS and Analytics solutions comes down to your organisation’s specific goals:

Looking for agility, lower upfront costs, and centralized access?

Cloud-based deployment might be your best fit. For modern organisations looking to stay ahead, cloud-based video analytics offers a clear advantage. It enables rapid deployment, real-time access to data across multiple sites, and seamless scalability as your needs grow. You also benefit from automatic updates, AI-powered insights, and easier integration with other cloud services, making it ideal for businesses that prioritise flexibility, remote access, and faster innovation. The cloud is the smarter, more future-proof choice for video analytics today.

Meet Yotta’s Drishticam: AI-Powered Video Intelligence

If you’re seeking a cutting-edge AI powered video analytics solution that doesn’t make you choose between performance and scalability Drishticam is your answer. Built by Yotta, Drishticam combines the power of real-time AI, and the flexibility of cloud-based deployment.

Feature / Dimension	☁️ Cloud-Based AI-Powered VMS (Drishticam)	🖥️ On-Premises VMS	💡Cloud Advantage
Deployment Time	⚡ Rapid deployment, no physical setup	🕑 Manual setup, hardware required	✅ Much faster setup
Initial Cost	💸 Low upfront, OpEx model	💰 High CapEx (hardware, licenses)	✅ Cost-effective
Scalability	🚀 Instantly scalable across sites/users	📦 Limited by infrastructure	✅ Flexible and limitless
Management & Maintenance	🛠️ Fully managed (updates, patches)	👨‍💻 Needs IT staff	✅ Hassle-free
Remote Access	📱 Secure Web/mobile access	🔐 VPN/firewall setup needed	✅ Built-in mobility
Software Updates	🔄 Auto-updates with no downtime	🕒 Manual, delayed updates	✅ Always up to date
Storage	☁️ Cloud storage with auto-expansion	🗃️ Fixed local storage	✅ Scalable & flexible
AI & Analytics	🤖 Integrated AI & smart alerts	🧩 Needs third-party tools GPU Servers	✅ AI built-in
Redundancy and High Availability	🔁 Auto-backups /redundancy and High Availability	🧰 Manual backup setup	✅ Resilient by design
Cybersecurity	🔐 Managed firewalls, AC and SOC support	🧱 Local IT security	✅ Enterprise-grade
Multi-Site Support	🌍 Centralized dashboard, Health Monitoring	🧭 Complex site setup	✅ Seamless control
Bandwidth Optimization	🧠 Adaptive streaming, cloud-side transcoding, low-bitrate options	📶 High stream usage	✅ Efficient streaming
Mobile & Smart Access	📲 Native mobile App, live view, playback, alerts	📴 Needs add-ons	✅ On-the-go control
Integration with Cloud Apps	🔌 Easy cloud-native integration	🔧 Hard to integrate	✅ Cloud ecosystem ready
Energy & Space Savings	🌱 No hardware, energy-saving, Resource savings	🔌 High power & space use	✅ Low carbon footprint

Conclusion

Both Cloud-based VMS and On-Prem VMS have their respective strengths. The trend is clearly moving toward Cloud-based VMS, with its scalability, flexibility, cost-effectiveness, and cutting-edge AI capabilities, as exemplified by platforms like Drishticam. The decision ultimately hinges on your organization’s specific needs, whether it’s the flexibility and remote access of the cloud or the control and customization offered by on-prem solutions.

Whatever your choice, understanding the key differences and benefits of both systems will help you make the best decision to enhance your security infrastructure and ensure your organization is well-equipped for the future.