Note: This post also appears on SIW's blog.

Last week I had the chance to chat with Paul Bodell, VP of sales and marketing, IQinvision, which makes high-definition network cameras. One of the key things Bodell mentioned was that a year and a half ago IQinvision was a niche company with a few targeted products, but its growth in the IP video market has “exploded.” With IQinvision’s sales growing 100% each of the last three years, he said those numbers are even higher than what they had originally projected for their investors.

Bodell pointed to what IQinvision likes to call “The Resolution Revolution” as to why IP video and digital megapixel cameras are impacting the market. Contrary to what some may say, the screen resolution on IP video is passing by analog video. Bodell added, “There’s no substitute for resolution and it’s resolution that [analog video dealers] can’t deliver today.”

One item of particular concern to security dealers is the fact that IQinvision does 85% of its camera business with “IT guys,” and only 15% with security dealers. When I asked Bodell about this discrepancy, he said that IQinvision is moving to close that gap and perhaps the ratio will be 70-30 next year. “We do have some fast-growing security integrators,” he explained, ”but by and large what we’re seeing right now is a lot of the companies we’re dealing with are hybrid (IT and security).” He also gave a sobering prediction, “By 2008 or 2009 there will be no differentiation between an IT and a security dealer. Security will be a subset of what the IT integration company does.”

So what’s your take? Will analog video hang on strong for another 5+ years? What about the idea of the security dealer becoming a subset of the IT integration company?