Statement of Direction

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1 Statement of Direction Milestone XProtect VMS Prepared By: Bjørn Bergqvist, Global Product Marketing & Business Development

2 2 Table of Contents Introduction 3 Milestone & XProtect Priorities going forward 5 Future developments 6 Our commitment 9

3 3 Introduction This Statement of Direction is designed to give you an overview of Milestone s products, vision and business objectives as set for We use these business objectives as a guideline for the future development of the software products offered by Milestone. This document introduces XProtect Milestone s award-winning Video Management System (VMS) and the add-on applications developed by our vast network of technology partners. The combination of the two extends the reach and usability of our video management solution far beyond security. This document reviews the technological trends and advances impacting the video surveillance industry and discusses the way Milestone plans to leverage on them in order to offer our users the most advanced video management solution. Milestone & XProtect Milestone Systems is a true global industry leader in open platform IP video management software. Founded in Denmark in 1998, Milestone operates as a standalone company in the Canon Group. Over 150,000 customers installations around the world testify to our performance and reliability. With offices in 22 countries and presence in more than 150 countries, we make sure we are never too far for our customers to get the most out of their installations. Our VMS helps organizations manage risk, protect people and assets, optimize processes and reduce operational costs, while providing uncompromising quality, making our VMS the No. 1 video management system in the world for 10 consecutive years (IHS Global June 2018). It assures that nothing in your business goes unnoticed. The system allows you to record, playback, monitor and investigate video surveillance streams and metadata in the most convenient, professional and protected way while making use of the latest technological innovations available.

4 4 Whether your business requires only a few-camera installation in a single site or hundreds of cameras spread across the globe, XProtect is the right choice for you. Our solution is highly scalable and allows any user to grow the system together with the business easily and seamlessly just when you need it. Our multi-device architecture allows you to securely access your system no matter where you are using the managing computer, a remote computer or your mobile device on the go, making it the ideal solution for a small, medium or large business. Milestone has always been the open platform company and as such, our users also enjoy dozens of applications integrated into the system. These applications are developed by our dedicated technology partners, each a leading expert in his field. Applications such as video analytics, access control and facilities management are at your fingertips extending the usability of your system far beyond security. Figure 1: Milestone XProtect product category 2019 * XProtect Express and XProtect Professional are based on Milestone s older technology and are set to retire in June 2019.

5 5 Our goal is to be a part of every surveillance installation in the world. We plan to achieve this inspiring goal by embracing a global perspective focusing on creating a flexible platform and a strong community. Milestone s open Software Development Kit (SDK) with an accessible Application Programming Interface (API), makes it seamless for hundreds of technology partners to develop innovative solutions that integrate perfectly with XProtect. Our continuous work on the core VMS, together with our constantly growing network of technology partners, make sure we combine technology and innovation and securely deliver ongoing value to our users in one great video solution Priorities going forward In order to make sure we deliver that value to our users we set product development priorities and review them continuously. We use these priorities as the framework that drives our product development. XProtect development priorities are defined through extensive research and consultation with our users, partners, technological teams and advisory boards. Our business priorities for product development starting in 2019 are: 1) XProtect Video Processing Server (VPS) New search and investigation tool (including metadata) Advanced audio in Web & Mobile clients (including two-way and broadcast) Hybrid cloud solution User experience and easier installation Smart Maps in Mobile Client Recording Server communication encryption Improved Mobile Server security GDPR ready certification 2) Video technology platform Advanced streaming and bandwidth management Metadata indexing

6 6 Utilize edge-generated metadata Improved Recording Server start-up time 360 generic dewarping XProtect LPR third-party integration 3) Online services Extended Customer Dashboard monitoring capabilities New and competitive Care TM products 4) Devices & Appliances Driver Frameworks Deeper driver integration Future developments Processing power Fast-moving technologies have a major impact on almost any industry including security and the reach of video management systems. Rapid advances in capabilities offered by camera manufacturers, together with video installations growing in size, and users aggregating more connected devices per location, led to an increase in the number of devices that need to be supported per recording server. With the understanding that more processing power is an integral prerequisite in a modern VMS, we introduced hardware accelerated video decoding in the Recording Server and in the Smart Client in This new capability in our VMS allowed users to utilize additional GPUs for video processing, resulting in excess processing power.

7 7 Connected devices Recognizing that video processing can take place in different components in the system makes it possible to leverage on advanced analytics of metadata derived not only from video related devices that are growing in number, but also from non-video related IoT devices. In 2019 we plan to make it even easier and more cost efficient to use metadata and deploy video analytics applications. IoT has transformative effects on automation, offering new and better ways to increase people s efficiency and productivity while stimulating the development of new innovative services and functionalities in connected devices. Our new Driver Framework to be released this year will offer a secure and easy way for device vendors to develop their own drivers and increase reach and speed of development of device drivers without having to use the video optimized ONVIF standard. Metadata Early endeavors around AI and IoT are turning into maturing technologies and introducing new possibilities and use cases. In order to address these growing use cases, we are investing in our video technology platform to allow technology partners specializing in AI and machine learning enable our users in making better and faster decisions. We are also accelerating the development of our GPU decoding capabilities, where our technology partners in the video analytics space can draw upon an easily deployed new video processing service. We also plan to make investigations easier and make sure searches lead to findings by introducing a metadata indexing server that will make the metadata actionable and searchable.

8 8 Cloud solution Another key focus area for us in 2019 is continuing to work on our cloud service environment as a way to scale the video management platform across sites and systems. In order to create a pure cloud solution, in 2016 Arcules was spun out of Milestone as a standalone company. Arcules has its origin in Milestone, therefore we share the same DNA and even though we are completely different companies, our culture, values and roots are similar. For a pure cloud VMS Milestone Systems recommends Arcules to its customers. For those who are looking for a combination between a pure cloud VMS and XProtect Milestone Systems recommends Arcules while we work on a solution that provides the benefits of the two systems. As for XProtect, Milestone Systems has decided to re-think the VMS as we know it and over time introduce a new hybrid cloud solution that allows capabilities to be allocated on-premise and in the cloud. This means that we are looking into introducing capabilities such as video processing service and search capabilities that will allow users to work in a geographically dispersed system architecture. System health service that provides both real-time status information and performance reports for the end-user and the channel partner is only one service a hybrid cloud solution will provide. Other key services that we see as an integral part of the hybrid cloud solution include the possibility to use the cloud as a configuration repository that will serve as a backup for the system s configuration data, as well as act as a centralized way for managing multi-site installations. With such management services it will be possible to use configuration templates to prepare an installation prior to its physical deployment and to roll-out chain and branch deployments efficiently and with ease. Milestone s development in 2019 will bring great and innovative transformations to video management systems, and our close network of channel partners will play a central role in introducing these technological advances to the market while benefiting from a unique and attractive offering.

9 9 Our commitment Since the day Milestone was founded, our purpose has been to make the world see. Our systems are designed to support security professionals and officials in their mission to support people, organizations and communities basic right to live safely by improving efficiency and well-being in our society. We acknowledge that providing a safe and secure environment is a continuous process and that a successful video management system is a system that develops with time and is reactive to growing needs and improvements in technology. Milestone users not only get to take control over the security of their business, but also become a part of our dedicated worldwide community that leverages on the latest available technologies. Unlike any other VMS provider, we deliver product releases to our users three times a year. Each release includes new features designed to enhance your system s performance, and technological improvements that become available in time and keep your system up to date with the latest technology in security and video surveillance. Whether you are building your video system from the ground up or using existing hardware, we support your freedom to choose the servers, the storage solution and the cameras that fit your budget and needs, and therefore offer you the highest camera compatibility in the industry by supporting more than 7,500 camera models and devices. In addition, we make sure to update our supported device pack every two months making sure your support needs are met and that your system is cost-efficient and future proof. When it comes to security, ensuring the security and integrity of all Milestone installations is a top priority for us. We minimize users exposure to risk by deploying the strictest security modeling tools in order to make sure our software is secure by design, by default and by deployment. Our engineering teams work continuously to mitigate any potential security vulnerabilities and to provide our dedicated integrators around the world with the most

10 10 relevant tools and information so no matter where you are around the world, you get the most professional support and service round the clock. Our Care TM plan, our support teams and our vast network of channel partners will make sure your video system is optimized with our latest technology and that it meets the growing needs of your business anytime, anywhere. Milestone. We make the world see.

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