Image via WikipediaA couple days ago Matt Steinfort posted on the significant investment dollars that are funding both start-up and well established companies in the broader video market.
Is this another case of irrational exuberance? Not by a long shot.
Capital infusions of this significance are not executed on a whim. The investors conduct extensive research on the company seeking investment and the greater landscape of the marketplace. They must be convinced that the target company is in a segment poised for growth, and that the team assembled is capable and well-positioned to capture a portion of this growth.
Investing in the absence of either is simply hoping that the “greater fools theory” prevails.
Contributing to the attractiveness of the video market are projections referenced in stories like this one. In a recent report, ABI Research projected that the video surveillance market (which includes surveillance cameras, computers and storage, professional services and hardware infranstructure) is poised to grow to $46.0 billion by 2013 from $13.5 billion in 2006.
This is an annual compounded growth rate of nearly 20% per year!
This type of projected growth tends to draw a crowd, and suggests that MVaaS providers and partners are in the right place at the right time. Carpe diem!
