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The True Economics of Video Surveillance: TCO Insights on VSaaS vs Build-Your-Own VMS

Siddhesh Alone

October 31, 2025

4 Min Read

The-True-Economics-of-Video-Surveillance

Think Building Your Own VMS Is Cheaper? Think Again. 

When organizations plan their video surveillance strategy, a critical decision they face is whether to build their own Video Management System (VMS) or to adopt a Video Surveillance-as-a-Service (VSaaS) platform. While, building your own VMS may appear to be a one-time investment, a deeper Total Cost of Ownership (TCO) analysis reveals otherwise. 

Let us break down the cost factors, hidden expenses, and operational advantages that make VSaaS the smarter, scalable, and more cost-effective choice for modern security, surveillance, and AI-driven intelligence 

Understanding TCO in Video Management:  

TCO is not just about upfront costs it encompasses every expense incurred over the lifecycle of your video surveillance system. This includes: 

1. Hardware procurement – servers, storage, networking, and redundancy. 

2. Software licensing – VMS, database, analytics modules, and OS. 

3. Infrastructure maintenance – Power, cooling, rack space, and AMC. 

4. Manpower – administrators, cybersecurity specialists, and monitoring staff. 

5. Upgrades and scalability – software patches, hardware refreshes, and expansions. 

When all these components are calculated over 5 years, the real cost of a Build Your Own (BYO) VMS setup often turns out to be significantly higher than the initial estimates. 

The Reality of Building Your Own (BYO) VMS: 

A “Build-Your-Own” VMS solution often promises control and flexibility, but it comes with hidden costs and operational complexities: 

1. Hardware & Storage – Requires upfront capital investment, frequent upgrades, energy for cooling, and space. 

2. Manpower– Multiple skilled resources needed for maintenance, updates, and troubleshooting. 

3. Licensing & Integration – Each feature (AI analytics, remote access, redundancy) adds licensing cost, complex integrations with third party systems and software 

4. Cybersecurity – Needs firewalls, antivirus, patches, and constant monitoring to prevent breaches. 

5. Scalability – Adding new sites or cameras means redesigning infrastructure. 

6. Downtime Risks– Hardware failures and software bugs directly impact uptime and security. 

While the control is appealing, maintaining a BYO solution demands ongoing management, budget, and dedicated expertise something most organizations underestimate.

How VSaaS Reduces TCO by Over 30% 

VSaaS (Video Surveillance as a Service) shifts surveillance from capital expenditure (CapEx) to operating expenditure (OpEx). This model simplifies operations, reduces costs, and enhances scalability and security. 

Here’s how VSaaS provides up to 30% cost advantage over a 5-year period:

1. No upfront CapEx – Pay only for what you use. Hardware, storage, and compute are managed in the cloud. 

2. Centralized management – One dashboard for all sites, cameras, and analytics. 

3. Elastic scalability – Add or remove cameras instantly without redesigning your network. 

4. Automatic updates & security patches – Managed and secured by cloud infrastructure. 

5. Reduced manpower – No need for dedicated IT or maintenance personnel. 

6. Predictable monthly cost – Subscription-based pricing ensures financial transparency and no hidden costs. 

Hidden Costs That VSaaS Eliminates:

Over time, these hidden costs make BYO solutions more expensive, less secure, and harder to scale. 

VSaaS: Built for Modern Security and AI Intelligence 

Today’s surveillance systems are more than just about video recording they are intelligent platforms for real-time insights and proactive response. 

VSaaS platforms like Drishticam bring in advanced AI-powered analytics such as: 

– Object detection, loitering, and intrusion alerts 

– Face and Vehicle recognition, ANPR 

– Smoke and Fire detection, PPE Compliance 

– Queue management, crowd analysis, and heat mapping and more 

All of this without any need for additional GPU servers or complex local setups. The AI processing and storage are cloud-native, ensuring faster insights, continuous learning, and real-time alerts at scale. 

The Strategic Advantage: From Surveillance to Intelligence 

Organizations adopting VSaaS are not just saving costs they are transforming their security operations. 

They gain: 

– Unified visibility across multiple sites 

– AI-assisted decision-making 

– Faster incident response 

– Regulatory compliance and secure audit trails 

– 24×7 accessibility from any device, and anywhere 

Conclusion 

Over a 5-year horizon, Drishticam VSaaS delivers up to 30% cost savings compared to traditional Build-Your-Own VMS setups while offering unmatched scalability, enterprise-grade security, and advanced AI-driven intelligence from the cloud. 

This 5-year period reflects the typical lifecycle of an on-premise surveillance system, during which organizations incur recurring costs for hardware refresh, software renewals, AMC, manpower, energy, and cybersecurity maintenance. When these ongoing expenses are compared to Drishticam’s predictable, subscription-based VSaaS model, the total cost of ownership (TCO) proves to be significantly lower by as much as 30%. 

For organizations looking to modernize their surveillance infrastructure, simplify operations, and transform video data into real-time actionable insights, Drishticam is the clear choice a smarter, more secure, sustainable, and future-ready way to manage video surveillance. 

Ready to Experience the Future of Surveillance? 

Learn how Drishticam VSaaS empowers enterprises, campuses, and smart cities with secure, intelligent, and cost-efficient cloud video management. 

www.drishticam.ai

Siddhesh Alone

Product Manager - Yotta Drishticam

Siddhesh brings 9+ years of expertise in the Security and Surveillance industry, with a focus on CCTV surveillance and AI-enabled solutions. He has worked across systems like Video Management Software (VMS), Access control, video door phones (VDPs), Intrusion alarms, Interactive and LED displays, Door frame metal detectors (DFMD), Wireless bridges, and Enterprise storage. He previously held solution engineering and presales Manager roles at Hikvision and Dahua, supporting projects across Education, BFSI, Manufacturing, Warehousing & Logistics, Retail, and Residential sectors. At Yotta, he plays a key role in driving the development and growth of Drishticam, a cloud-based AI-powered video surveillance-as-a-service (VSaas) offering, while also contributing to partner enablement, go-to-market strategy, and building scalable video solutions for enterprise and public sector customers.

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