Martin McGrath, Sales Manager for UK & Ireland at Milestone Systems, delves into the key considerations for organisations when adopting cloud video solutions.  

The security world is awash with the promises of cloud video solutions — for good reason, as Video Surveillance as a Service (VSaaS) holds numerous benefits for organisations that desire flexibility, futureproofing and scalability.  

Choosing between an onsite solution built around Video Management Software (VMS), VSaaS or a hybrid approach isn’t a simple decision to make, however, as different organisations and site locations will suit different approaches.

This is why Milestone’s cloud offering is built around our customers’ diverse needs and preferred infrastructure.  

For context, though, the VSaaS market is growing in popularity as more organisations look for flexible ways to secure their sites and gain vital business intelligence from AI and advanced video analytics. Almost half (47%) of the surveillance market in the US will be VSaaS by 2027.  

By the end of 2025, it’s predicted that the VSaaS market will be worth over $5 billion USD, growing at a CAGR of 13.7%.

This growth will accelerate over the next four years, as more organisations seek out advanced surveillance that leverages AI and other technologies, more advanced cameras and other sensors, and subscription-based service models; alongside the continuation of hybrid and remote workforces and an increase in the Internet of Things (IoT).   

Now, you may be wondering what the difference is between a cloud-based VSaaS and an on-premise VMS – and what they actually mean for your surveillance and security choices.

Understanding the key benefits and differences between these options will help you make a more informed decision about the best solution for your organisation.   

VMS defined   

Most security leaders are acquainted with video management software (VMS) such as Milestone XProtect.

This software consolidates information from your cameras, sensors, connected devices and other data streams such as instant messengers or social media, in a single place.  

It gives operators a comprehensive overview of everything they need to know to keep a site or building safe, secure and running smoothly.

Increasingly, it also provides users with information that gives them insights into their operations, taking their video solutions ‘beyond security’.   

Traditionally, a VMS is installed on-premise with surveillance software running on work laptops and video recordings on servers. Each customer or end-user needs to update and maintain this installation themselves — or outsource to a system integrator.

A one-off payment gives access to a perpetual VMS license.   

VSaaS defined  

VSaaS is a cloud-based surveillance solution that’s delivered over the internet.

As it is a ‘service’, VSaaS customers usually get cloud storage, software updates and maintenance at no additional cost in exchange for a recurring subscription fee.

Also, VSaaS typically requires lower upfront investment. It deploys with a range of low-maintenance, Linux-based gateway devices that enable internet connectivity.  

It can even function without any onsite devices by using a concept called “camera-to-cloud,” where the camera manages video buffering, performs some on-device analytics, and communicates directly with the cloud-based VSaaS.

The low-support design of these devices also results in ongoing maintenance and energy savings.  

With VSaaS, the ability to reuse your existing cameras while enhancing them with cloud-based AI increases their intelligence, extends the useful life of older camera models, and reduces the need for new cabling or complex infrastructure changes.   

Enhanced cybersecurity is another benefit, with secure cloud access generally more resilient compared to using a VPN to access an on-premise solution.

As data is stored in the cloud, disaster recovery and data redundancy are also improved.   

Milestone’s Arcules VSaaS lives in a cloud-hosted service (Google Cloud) as opposed to an on-premises data centre, saving storage costs and energy usage.

The cloud-hosted service is managed, upgraded and even monitored for performance by Milestone.

Organisations with Arcules benefit from the increased flexibility and scalability that cloud-based software provides, with video footage accessible from anywhere.  

Conversely, this means that for installations with remote sites along with a core VMS installation on a main site (such as University campuses), VSaaS can be a cost-effective and simpler alternative than attempting to connect your remote installation to the main one.

Arcules seamlessly integrates with XProtect, making this setup simple for organisations with an existing XProtect system in their main location.  

A hybrid solution  

For many organisations, a hybrid approach is most likely due to resource, security and technology needs.

Switching to the cloud doesn’t require an all-or-nothing approach with Milestone offering three types of hybrid deployments that give organisations the flexibility to adopt the cloud in the most tailored, convenient and impactful way.  

On-premises XProtect with Arcules  

This option enables organisations to extend their video surveillance coverage across multiple remote sites while maintaining centralised control.

As mentioned earlier, Arcules cloud-based VSaaS is deployed at each remote location with minimal hardware, seamlessly transmitting live video, recordings and security alarms to the primary XProtect installation at the main site.  

This setup ensures efficient monitoring, improved situational awareness and streamlined management without the need for extensive on-site infrastructure.

By integrating Arcules with XProtect, businesses gain a scalable, cost-effective solution that enhances security while minimising deployment time and IT overhead.  

On-premises XProtect with cloud storage  

This hybrid model combines the reliability of on-premises XProtect with the scalability of cloud storage solutions from providers like AWS and Microsoft Azure.

Organisations can retain critical footage and sensitive data on local servers while using the cloud for expanded or long-term storage.

This approach optimises costs, reduces hardware reliance and offers flexible storage scalability.

Additionally, cloud storage enhances disaster recovery by ensuring secure backups and remote accessibility while maintaining compliance with data security policies.  

Cloud-hosted XProtect  

In this model, XProtect runs on public cloud infrastructure, such as AWS, Azure, or Google Cloud, eliminating the need for physical servers and maintenance.

Organisations retain full control over configuration and data, while local recording servers and cameras ensure seamless operation.  

Secure communication between on-premises and cloud components is maintained through a VPN.

This approach offers effortless scalability, as virtual machines and storage expand as needed.

Hybrid configurations also enable direct local video access, minimising internet bandwidth consumption.

Operators can access footage from anywhere, with options for a web-based interface instead of a dedicated client application.  

Making the right choice for your organisation  

As you can see, there are many ways to get the surveillance that you need now, and in the future.

Organisations can either deploy a VMS entirely in the cloud or, more commonly, have some components running on the cloud and others on-premise.

The key distinction between pure cloud and hybrid-cloud physical security deployments lies in whether you need to retain any on-premises systems or infrastructure.

VSaaS is pretty much plug-and-play and suits mid-sized installations or those with multiple sites such as franchises, retailers and petrol stations.  

Cloud-based VMS and VSaaS share the same benefit of offloading storage to the cloud.

Nowadays, they enable advanced analytics with some going beyond security into business optimisation and intelligence (for example, heatmapping in a retail location or queue and crowd management in a transport hub).   

However, most leading VMS solutions are not cloud-native applications, so the onus for maintaining and updating the installation still falls to the end-user or system integrator.

Another distinction is that you have to pay for the cloud services on top of the VMS license, whereas it’s a package deal with VSaaS.

With cloud-managed VMS, there’s a bit more configuration required by your system integrator or IT team to make the cloud network work as if it were a part of your physical network.  

In short, your maintenance and financial needs, along with site complexity and size, will be the main influences on a VSaaS versus cloud-based VMS/hybrid decision.   

As alluded to earlier, there are some situations where a mixed approach involving an on-premise VMS for a main location and VSaaS for remote sites is the most cost-effective and simple to maintain and install.

Where it is impractical to have a direct cable or wireless connection to the same local area network (LAN) as the VMS, for instance.

A school with a sprawling campus may use a VMS for classrooms, libraries, cafeterias and so forth, but require VSaaS surveillance for outdoor sports facilities and remote car parking. In this scenario, it’s impractical to run cables to sports fields and other remote areas due to distance, cost, and complexity.

Environmental barriers such as roads may make a cabled connection take longer and cost more.   

Hybrid setups are ideal for organisations with IT teams on a main site who can maintain an on-premise VMS with a secondary VSaaS, but with dispersed sites that don’t have the same resources.

Therefore, they are often installed in franchises or retailers with many rural or small stores.

This optimises resources and saves on additional infrastructure costs, set-up time and maintenance.   

With VSaaS, security operators can view videos over the internet. There’s no need to make changes to firewalls, build VPNs or open ports.

With some solutions, such as Milestone’s Arcules and XProtect, security teams can see both feeds in their control room without having to switch between applications.   

One other benefit to having a core VMS on the main site is that you still retain the infrastructure to support heavier video analytics like crowd and occupancy detection or fall detection.

As VSaaS is an emerging field, some solutions lack the breadth of advanced features and capabilities of a market-leading VMS like Milestone XProtect.  

What should you look for in a VMS and VSaaS vendor?  

Whatever your ultimate decision, here are a few key ‘green flags’ to look for when assessing your VMS and VSaaS solution:  

1. Compatibility: Does the solution support the hardware that you need? Either your existing cameras and devices or the hardware you intend to invest in.   

2. Integrations: Check that your chosen solution integrates with the analytics, applications and systems that you need. If restricted to the vendor’s ecosystem, you may find yourself limited in the future if you wish to expand or enhance your system. Open platforms provide more flexibility and customisation options.   

3. Reputation and customer success: Begin by looking through sites such as G2, Gartner or forums like Reddit to understand how well your chosen vendor is serving its customers. If you plan to work with a system integrator, ask them what they know about the manufacturers that you’re considering. In the case of VSaaS, it’s a good idea to be crystal clear on cancellation policies and what happens to your video data if the subscription isn’t renewed.  

This article was originally published in the March 2025 Edition of Security Journal UK. To read your FREE digital edition, click here.