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Build vs. Buy: VMS, NVR, and Cloud Compared

Alec Hemenway 9 min readUpdated January 2026

The Three Architectures

Video security systems fall into three broad categories: on-premise NVRs (network video recorders), traditional VMS (video management software) platforms, and cloud-native systems. Each has distinct tradeoffs around cost, complexity, scalability, and capabilities.

FactorOn-Prem NVRTraditional VMSCloud-Native
Upfront costLow-MediumHighLow
Ongoing costLowMediumMedium
ScalabilityLimitedGoodExcellent
AI capabilitiesNone/BasicAdd-onBuilt-in
IT burdenHighHighLow
Remote accessLimitedVariesFull

When On-Prem NVR Makes Sense

Small deployments (under 32 cameras) with a dedicated IT person, minimal need for remote access, and no requirement for AI analytics. If your primary need is recording and playback, a quality NVR is simple and affordable.

When Traditional VMS Makes Sense

Large enterprise deployments with complex integration requirements (access control, intrusion detection, building management). Organizations with dedicated security operations centers and existing relationships with integrators.

When Cloud-Native Makes Sense

Multi-site organizations that need centralized management, real-time AI alerting, and minimal IT overhead. Particularly strong for K-12 districts, healthcare campuses, and distributed enterprises where remote access and proactive alerts matter most.

Key Takeaway

The real cost comparison should be over 3-5 years, including hardware refresh cycles, storage expansion, software licenses, and IT labor. Cloud systems often appear more expensive annually but cost less over the full lifecycle.

Want a cost comparison for your specific setup?

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