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August 25, 2025
Cloud and video surveillance as a service (VSaaS) solutions have seen substantial adoption. By the end of 2022, there were over 2 million cloud-connected cameras in operation across the United States, with forecasts indicating this number may increase to 25 million by 2026.
Take a look at HxGN dC3 Video | Cloud
In parallel, there has been notable growth in AI and video analytics applications. Incorporating generative AI in video analytics accelerates investigations by providing advanced capabilities such as object tracking, behavioral and anomaly analysis and facial recognition. Generative AI also simplifies tasks such as monitoring, searching and identifying actionable insights with seamless, natural-language interaction with the application.
These AI-driven capabilities are increasingly integrated within security system platforms.
Cloud technology initially played a pivotal role in advancing AI-powered security solutions by democratizing access to sophisticated analytics without substantial capital investments. Another factor that led to an increased cloud adoption is that a pure cloud installation increases flexibility and can be quickly scaled. It is also advantageous when a company has distributed locations or a central command center. The entry costs are lower and less IT personnel is required.
The answer depends on what operation you run. The suitability of a cloud-only video surveillance system depends on specific operational requirements. The cloud approach is particularly advantageous for businesses with a limited number of cameras per site and moderate data volumes, such as small retail outlets, cafés or offices. It’s also a great option for users who can rely on alerts rather than having eyes on glass at all times.
Organizations with limited onsite IT resources — including startups, temporary stores and seasonal operations — benefit from eliminating the need for local servers or network video recorders. However, large enterprises operating across various regions and jurisdictions, including sectors such as retail and banking, can also leverage the benefits of VSaaS. This approach enables seamless scalability while eliminating the necessity for investment in on-premises server infrastructure, and provides robust centralized management functionalities.
Additionally, cloud solutions are ideal for mobile sites, including construction projects and event venues, where rapid deployment and remote access are critical. Cloud surveillance ensures data security in areas prone to theft or vandalism by storing footage off-site. However, optimal performance of cloud solutions requires reliable, high-speed internet connectivity, which is fundamental for secure video streaming and an effective use of AI. For critical infrastructure operators or high-security facilities, cloud solutions may not be feasible due to stringent regulatory requirements.
The rise of intelligent edge devices and the increase in processing power back at the edge via next-generation devices is a factor as it extends the scope of available solutions, making it easier to find the ideal solution for specific use cases.
This shift toward more intelligence and AI capabilities on the edge and on-premises offers several significant benefits: By enabling real-time responsiveness, this approach allows critical decisions to be made instantaneously, removing delays linked to cloud communication. It also optimizes bandwidth, as only the most relevant and processed data is transmitted. Furthermore, operational resilience is improved since systems can maintain functionality even during internet connectivity interruptions. This is very important for operators of critical infrastructure who want to retain full data sovereignty, whose locations do not have stable internet connections or who do not want to be dependent on the provider or the cloud.
Why is this important for physical security information management (PSIM) and security management systems? They act as essential intermediaries, aggregating, processing and transmitting data throughout intelligent security applications. The systems enable seamless communication between IoT sensors like cameras, alarm devices, control systems and external networks. PSIM and security management systems can bridge the gap between on-premises and cloud-based systems, being the facilitator for hybrid deployments.
We see that some security management systems are advancing beyond centralized cloud models to advanced hybrid architectures, enabling efficient real-time control at the edge and on-premises while supporting comprehensive analytics across entire portfolios in the cloud.
These companies and organizations are taking a hybrid approach with local data processing and storage (e.g., video data, access) on-premises and centralized control, analysis and reporting via the cloud.
The freedom to choose the right architecture is something very valuable if you aim to protect your investment and want your systems to be future-proof. Flexible systems can extend the lifespan of existing hardware by connecting it to new cloud services or AI tools. Switching vendors for specific subsystems (e.g., upgrading analytics but keeping cameras) avoids costly rip-and-replace projects, and the freedom to choose means you can select storage location (local, private cloud, public cloud) and decide which AI features to enable — balancing privacy, performance and budget.
Physical security tech evolves fast — AI capabilities, cybersecurity standards and regulations change. A flexible vendor lets you adopt innovations at your own pace instead of its upgrade schedule. HxGN dC3, Hexagon‘s comprehensive portfolio of physical security solutions, is perfectly suited to meet these demanding requirements. Whether it is an on-premises solution, a hybrid architecture or an AI-enhanced, cloud-based VSaaS solution like the new HxGN dC3 Video | Cloud, Hexagon enables more agile and resilient surveillance operations.
Sunil Mudholkar is the VP of product, physical security, for Hexagon’s Safety, Infrastructure & Geospatial division. Based in Boston, he has almost 20 years of product management experience and leads Hexagon’s physical security product team, including developing the roadmap and strategy along with a talented global team of product managers.
