Myth No.13 ~ 'IP is more expensive than analogue'

IP CCTV systems are a good financial bet. It is always more expensive to buy the latest technology and products – IP CCTV hardware is no exception – but this is only one factor. Add on the installation, operation and ongoing service costs, which are considerably lower, and a good economic case can be made for choosing IP.

IP cameras are slightly more expensive than comparable quality analogue cameras, but network recorders offering superior quality images can be less expensive than comparable DVRs. With smaller installations (e.g. £5k systems), IP system equipment costs can be perhaps 20% higher than analogue costs, but with medium and larger systems the cost difference disappears. (For example, on a £20k system, the price of hardware will probably be equal.) Even on smaller systems when the IP hardware costs more, the extra cost is not much for the additional futureproofing, better picture quality, improved ease of use, and excellent scaleability.


Trends in the ultra-competitive computer industry make it easy to predict that PC processing power and hard disk drives capacity will continue to increase rapidly, offering superb value for money. Network hardware will also continue to be highly competitive and an area where costs are likely to continue to fall with volume. Remember, however, to choose professional, ruggedised equipment for CCTV applications.


Take a longer-term view and ask: what is the total cost of ownership (TCO)? Panasonic makes the case that the greatest benefit of IP surveillance systems is their lower total cost of ownership, stating that “TCO is the life-cycle cost of an asset, which includes acquisition, setup, support, ongoing maintenance, service and all operating expenses. IP surveillance systems dramatically lower post-purchase installation, operation and maintenance costs, sharply lowering overall TCO.”