By: Kunal Bhogal
In recent years, the realm of physical security has experienced a significant transformation, with cloud-based solutions becoming the prevailing trend. As organizations pursue systems that are more scalable, flexible, and secure, traditional on-premise security models are gradually being replaced by cloud-based infrastructures. This shift is primarily fuelled by the swift advancement of cloud technologies, the incorporation of artificial intelligence (AI), and an increased emphasis on cybersecurity.
Cloud (including Cloud computing, and Cloud storage) as we know it, isn’t a new concept in Physical security. It has been amongst us since the early 2000s, and have slowly yet steadily become mainstream over the years. Though largely adopted by companies and large organisations in the West (thanks to excellent broadband services and availability of widespread data centre infrastructure), today it finds companies all over the world as adopters in equal proportions.
In a recent survey, over 90% of the surveyed security leaders agree that the future lies in the advancement of cloud infrastructure, and purpose built applications will gain traction much faster; and the businesses that delay the adoption will only fall behind in an industry that is rapidly moving towards a centralised, AI driven world. In the same survey, less than 25% of organizations are looking to fully transition to the cloud, while the majority prefer either an on-premise setup or a hybrid approach, with over two-thirds of their assets installed on-premise.
This migration of physical security to the cloud can also be attributed to digital transformation across industries, vast improvement in compute and communication speeds, adoption of AI and related new-gen technologies, as well as situations like the COVID-19 pandemic – that clearly highlighted the need for managing people, processes, assets and infrastructure – remotely.
The global cloud market, with its steadfast growth of CAGR 18%, has given organisations a huge impetus to think towards adoption of Cloud for Physical Security.
Although the shift to cloud solutions is already in progress, many organizations remain equally hesitant to revise their security strategies and incorporate cloud technologies into their physical security operations. The primary concerns revolve around infrastructure challenges in certain areas, the potential risks of transferring sensitive data to the cloud, and the complexities of migration. This article aims to examine whether these apprehensions are justified or if companies are missing valuable opportunities by delaying large-scale migration to the cloud. We will discuss the challenges associated with transitioning to a cloud environment for physical security, highlight the benefits of cloud-based technologies, and outline how organizations can effectively leverage cloud migration for enhanced security.
Cloud-based physical security utilizes cloud servers to oversee access to facilities while safeguarding data associated with access control, video management, and alarm monitoring. This approach enables security teams to monitor their premises from any location with an internet connection.
Through this article, I intend to bring about a realistic canvas discussing opportunities and challenges of using Cloud for the physical security industry, and perhaps address some ground realities when adopting a cloud-focussed strategy.
Why should an organisation think about Cloud?
Like any critical application or function, Physical security often necessitates costly servers that entail significant upfront investments and ongoing management. These servers are responsible for processing video feeds from security cameras to identify noteworthy events in addition to alarms coming from hundreds and thousands of sensors, readers and electronic components. In contrast, a cloud-based model can efficiently handle substantial computational demands. Additionally, security companies provide regularly updated software, ensuring that users always have access to the latest version. Another reason to shift to cloud-based systems are features that allow organizations to swiftly adjust to evolving security needs and effectively manage their infrastructure.
Some common challenges in traditional / conventional systems could be: A camera could be broken after a security breach, thereby producing no video, or system failure due to compatibility issues arising because of outdated firmware. Many of these problems are addressed through a well purposed cloud strategy, and organizations are likely to favour hybrid cloud solutions, which combine various environments, such as on-premises systems with public or private cloud options. These hybrid models can deliver the advantages of both approaches.
Through the cloud platform, we can oversee and manage security equipment remotely, eliminating the need for on-site visits. This capability is particularly advantageous for businesses that operate across multiple regions or have distributed locations, as it helps reduce labor and time costs while enhancing overall work efficiency.
Going back to the data from the survey: Significantly, 70% of respondents anticipate raising their expenditures on physical security systems in 2025. This trend corresponds with the fact that 75% of security leaders intend to migrate to cloud solutions within the next year, and over 90% aim to finalize this transition within the following 18 months. This urgency underscores the critical need to modernize physical security infrastructures.
Cloud technology provides numerous advantages compared to on-premises systems, including flexibility, scalability, enhanced security, ease of maintenance, and future-proofing. However, not all cloud camera solutions are created equal. While some traditional systems may be retrofitted to accommodate cloud technology, fully integrated end-to-end systems—where the NVR, VMS, and camera functionalities are available out-of-the-box without the need for additional integration—lead to a more advanced, scalable, and adaptable security solution.
Adopting Cloud for Physical Security : Advantages at a Glance
Secure by Design: Cybersecurity and network security are significant concerns regarding IoT devices, including cameras. There are various security aspects to consider with camera systems, ranging from the privacy of the video content to reducing the risk of cyberattacks. Frequently, security camera systems remain vulnerable due to their complexities, which can hinder effective maintenance.
Scalability: Scalability is arguably the most significant benefit of cloud-based systems. Traditional security setups often necessitate costly hardware upgrades and physical installations when expanding a security network. In contrast, cloud systems enable organizations to easily scale their operations up or down, adapting to evolving security needs without the need to completely revamp existing infrastructure. This flexibility is especially crucial in industries with variable security demands, such as retail, healthcare, and large event venues.
Remote Management: One of the most compelling advantages of cloud-based security is centralized management. For large organizations or those with multiple locations, a unified platform enables security administrators to oversee all sites from a single dashboard. This feature is particularly beneficial for geographically dispersed businesses, such as retail chains, hospitals, or multinational corporations, where security threats can emerge at various locations simultaneously. Remote access is another significant benefit, allowing security teams to monitor and control their systems from anywhere in the world. Whether addressing a local threat or coordinating security across international sites, centralized management ensures that all data is accessible and actionable in real-time. Remote management is a crucial factor driving the transition to cloud-based security systems. In traditional on-premise setups, security personnel often need to be physically present to manage or troubleshoot systems, which can be time-consuming and inefficient—especially for organizations with extensive operations or limited resources. In contrast, cloud-based systems offer remote access capabilities that enable security teams to monitor feeds, manage devices, and receive alerts from any location with an internet connection. This functionality allows businesses to respond more quickly to security incidents, minimize downtime, and ensure continuous surveillance even during local technical issues. Additionally, remote management can reduce labor costs, as security personnel can oversee multiple sites simultaneously without the need for travel. This not only streamlines operations but also enhances the overall security posture by providing real-time visibility into potential threats. For instance, a company with multiple locations can implement a cloud-based solution that centralizes management, allowing security personnel to monitor all sites from a single platform. This approach simplifies operational complexity and facilitates timely responses to security threats across geographically dispersed locations.
Cost Effectiveness: Another significant advantage of cloud-based systems is their cost efficiency. On-premise systems often entail high upfront costs, requiring considerable investments in hardware, installation, and maintenance. In contrast, cloud-based solutions generally operate on a subscription model, enabling businesses to pay for the services they require on an ongoing basis without incurring large initial expenses. This subscription model also offers greater predictability in budgeting, allowing organizations to adjust their security investments based on current needs. This flexibility simplifies long-term cost management and helps avoid the financial burden associated with upgrading or replacing outdated systems. Furthermore, cloud-based systems facilitate the seamless integration of various security devices—such as cameras, alarms, and access control systems—into a single platform. This integration minimizes the need for multiple vendors and complex infrastructure, further streamlining management and reducing overall costs.
Strategic Importance of AI: Artificial intelligence is increasingly becoming an integral part of cloud-based security systems. AI-driven functionalities, including video analytics and predictive modelling, enable security teams to proactively identify potential threats. The incorporation of AI is regarded as vital for sustaining a strong and proactive security stance. Artificial Intelligence has emerged as a transformative force in cloud-based physical security, introducing a level of sophistication that surpasses traditional systems. The integration of AI enables security platforms to execute tasks such as automated alerts, predictive modelling, and video analytics, which enhance organizations’ ability to detect threats with increased speed and precision. Three-quarters of security leaders acknowledge the influence that AI-driven features can exert on a company’s strategy for physical security. As security systems advance, integrating AI analytics will be essential for delivering actionable insights and maintaining an edge over sophisticated threats.
Real-Time Detection: One of the most significant contributions of AI to cloud-based security systems is its ability to analyze vast amounts of data in real-time. For instance, AI-driven video analytics can automatically identify unusual behaviours or unauthorized access, providing security teams with immediate alerts and reducing response times. Key features such as facial recognition, object detection (including weapons or suspicious items), and behavior analysis (like loitering, running, or fighting) empower organizations to proactively address potential security incidents. AI-powered systems can simultaneously analyze footage from multiple cameras, tracking individuals of interest as they move across different areas within a facility. This capability significantly improves the management of large spaces, such as airports, campuses, or retail environments, where security threats can arise unexpectedly.
Data Encryption: In the current digital landscape, encrypting all data is essential to safeguard sensitive information from malicious actors. Organizations that fail to properly encrypt data are vulnerable to breaches, lawsuits, and substantial fines. A well-designed cloud solution encrypts data by default, relieving integrators and customers of this responsibility. Consequently, organizations become more cyber-secure, as they can reap the benefits of enhanced security without having to implement it themselves. On-premises solutions, however, face the risk of not being regularly updated due to software limitations and a lack of proper manpower, exposing organizations to potential security and data breaches.
Faster and Updated: Cloud-based solutions maintain a constant connection to the internet, allowing them to receive updates in real-time. This means that organizations automatically benefit from the latest software and hardware capabilities as soon as updates are released. Furthermore, the cloud mitigates on-premises server bottlenecks that can cause slow performance, inconsistent output, and delays in software updates. Most organizations lack dedicated cybersecurity personnel who specialize in addressing cybersecurity threats. Hiring IT resources can be costly, and existing IT staff may be preoccupied with other organizational risks, leaving physical security systems vulnerable. Cloud-based access control solutions enable organizations to reduce the time spent on managing associated cybersecurity risks. Well-designed cloud-based access control systems allow organizations to outsource the security of their systems to the technology provider. This not only frees up internal resources but also enhances cybersecurity best practices through the provider’s expertise, enabling teams to more effectively prevent cyber-physical attacks.
Increased Reliability: Storing data off-site may seem insecure to many, with concerns about potential data loss in the cloud due to hacking. However, the reliability and security of contemporary cloud resources significantly surpass those of traditional servers and infrastructure. Cloud providers prioritize data security, employing dedicated teams of experts to manage it and ensure regular updates for essential security patches. They implement a range of protective measures, from encrypting all data to providing employees with multi-factor authentication, to guarantee safety. Additionally, by working with various clients, cloud service providers can learn from their experiences. When vulnerabilities are identified, they adapt their security and operational models to enhance protection for all clients.
Smart Analytics and Automation Capabilities: Customers seek to gain valuable business insights for informed decision-making, which is why the demand for AI-based analytics is on the rise. Cloud computing empowers organizations to utilize real-time video analytics and leverage AI to manage large volumes of data online, extracting meaningful business intelligence. With cloud technology, employees can access their data and applications from anywhere in the world, utilizing communication and collaboration tools for seamless sharing and mobile computing. This capability is particularly crucial during times like the pandemic when many employees are working remotely. AI also plays a vital role in automating routine security tasks, allowing human resources to focus on more strategic initiatives. Automated alerts can notify security teams of potential risks, while predictive modelling analyses historical data to forecast future threats based on behavioural patterns or past incidents. For example, AI algorithms can scrutinize video feeds to identify unusual activities, such as someone tampering with a security camera or trying to access a restricted area. These systems can then trigger automatic alerts or responses, such as locking down a building or dispatching security personnel, before a threat escalates. Additionally, predictive analytics enables businesses to stay ahead of potential risks by identifying patterns that may signal security vulnerabilities. This proactive intelligence helps organizations adopt a more forward-thinking approach to security, preventing incidents before they happen.
Cloud Adoption Challenges
Shifting gears and taking an alternate view, while cloud-based physical security sounds great and a compelling investment, stake-holders might want to evaluate perhaps some of the same reasons in addition to others as to why we might not be fully ready to adopt a cloud-based system just yet. While the advantages of cloud-based security systems are evident, several challenges and barriers persist for organizations contemplating the transition. The most significant concern is cybersecurity. According to the same survey (as cited earlier), 34% of respondents identified cybersecurity issues as the primary obstacle to adopting cloud solutions. This apprehension is particularly pronounced among businesses that have traditionally relied on on-premise systems and are cautious about potential vulnerabilities associated with cloud storage. The following are some arguments that inhibit the growth of that adoption:
Not so easy Migration: Transitioning physical security to the cloud is a challenging endeavour, particularly for companies that have invested years in developing their security systems and infrastructure. This complex process requires time and incurs additional costs. Rushed migrations can heighten the risk of insecure data transfers and compliance issues. Nonetheless, companies are increasingly interested in adopting cloud solutions—whether private, public, or hybrid—to take advantage of the benefits offered by the cloud. With a surge in available tools designed to facilitate the move to the public cloud, organizations can expect a smoother transition and ongoing support for their operations.
Cybersecurity Concerns: The transition to cloud-based systems introduces a new array of cybersecurity challenges. Many organizations express concerns about the security of sensitive data stored off-site and the risks of breaches during data transmission. However, the report also highlights a shift in attitudes toward cloud security. Most respondents believe that cloud security has improved significantly over the past five years and will continue to progress, offering enhanced protection against emerging threats. To mitigate these concerns, cloud-based security providers are making substantial investments in encryption technologies, multi-factor authentication, and regular security updates to ensure data is safeguarded at every stage. This evolving cybersecurity landscape is helping to alleviate some of the apprehensions that have historically hindered cloud adoption. While cloud environments can be susceptible to cybersecurity issues, especially if an account is not properly configured, this should not deter stakeholders from moving sensitive information to public servers. No organization is immune to hacker attacks. However, when it comes to cloud architecture providers, cybersecurity is their top priority. Cloud services have dedicated teams working diligently to stay ahead of new threats. They keep up to date with the latest best security practices, install patches, and perform regular updates to prevent breaches. This makes clouds more secure and effective than most on-premise solutions. Nevertheless, users of cloud computing also have a responsibility to ensure they comply with the cloud provider’s security guidelines and properly secure their accounts.
Infrastructure Challenges: Traditionally, security solutions have been implemented on hardware located on-site, designed to be secure and protect sensitive information. However, these systems come with limited access to data and restricted capabilities. As a result, if companies wish to scale their operations, they must invest in new servers, computer hardware, software, network services, backup systems, and more. Maintaining this infrastructure presents another challenge, requiring ongoing technical support, regular updates for hardware and software, and performance optimization—all of which can lead to significant additional costs. For small businesses or those with limited budgets, these expenses can be prohibitive. Cloud computing alleviates budgetary pressures by removing the need to purchase and maintain hardware. It offers the convenience of scaling resources up or down as needed while reducing the time required for infrastructure maintenance. A cloud service provider handles technical support and ensures that technologies are updated and configured according to users’ actual needs.
Network Reliability and Uptime: Another common concern is network reliability. Since cloud-based systems rely on internet connectivity for real-time monitoring and management, any disruption can create potential security blind spots. In the widely referenced survey, 27% of respondents highlighted their worries about the reliability of their internet connections and the possible impact on their security infrastructure. However, many cloud providers are addressing this issue by implementing failover systems and backup protocols to ensure that security systems remain operational even during network outages. These solutions enhance reliability, allowing businesses to maintain security continuity despite connectivity challenges. Cloud computing necessitates a stable internet connection, so bandwidth issues can pose significant obstacles, particularly in remote areas with unreliable connections. Without consistent internet access, it’s difficult to depend on cloud technologies, especially for security solutions. On a positive note, internet connectivity is continually improving, and the rollout of 5G is expected to boost cloud adoption. With 5G, internet speeds will significantly increase while latency decreases, enabling cloud services to manage large volumes of data with ease.
How fast is the adoption happening?
Citing the survey reference, a good 86% of respondents who have not yet fully transitioned to the cloud plan to do so, with 90% of those using entirely on-premise setups and 85% with hybrid systems indicating their intention to migrate. This demonstrates a clear momentum toward cloud adoption. Notably, 70% of respondents anticipate increasing their spending on physical security systems in the 2026-27 timeframe. This aligns with the finding that 75% of security leaders plan to transition to the cloud within the next 12 months, and 96% aim to complete this transition within the following 18 months. This urgency highlights the critical need to modernize physical security infrastructures.
Importance of Centralisation
In total, 85% of security leaders consider it very or extremely important to integrate multiple physical security products—such as door access control, alarm systems, and video surveillance—into a single centralized system. This underscores the emphasis on system integration and management efficiency. Attitudes toward physical security systems differ significantly based on existing setups. However, organizations universally agree that cloud-managed systems are easier to maintain, can scale very rapidly, and manage across multiple locations. Despite concerns regarding cybersecurity, most believe that cloud systems are safer than ever and express confidence in ongoing improvements over the next five years. While cybersecurity is recognized as the primary barrier, respondents strongly agree that the cloud is more secure now than it was five years ago and will continue to enhance its security in the coming years, reflecting a general optimism about advancements in cloud technology security.
Key Takeaways
The swift transformation of the physical security industry towards cloud-based systems means that organizations delaying adoption will encounter increasing risks and rising costs. Cybersecurity threats are becoming more sophisticated, and traditional on-premise systems often lack the necessary flexibility and scalability for effective adaptation. Without the centralized management, automated updates, and predictive analytics offered by cloud solutions, organizations remain vulnerable to breaches, non-compliance, and the higher expenses associated with outdated technology.
Postponing this transition can lead to extended downtime, slower incident response times, and costly recovery efforts. Organizations that hesitate to adopt cloud security risk falling behind as competitors utilize advanced cloud features for a more proactive security stance. As a recent survey suggests, more than 85% of those not fully transitioned are considering cloud systems, highlighting the strategic direction of the industry. Moreover, nearly all respondents planning this transition aim to do so within the next 18 months.
Organizations that are slow to adapt may miss opportunities to enhance operational efficiency, streamline monitoring across multiple sites, and facilitate seamless collaboration. Security leaders must act promptly to leverage the significant advantages that cloud-based systems offer. The survey concludes that about 60% of the companies view this transition as a high priority, with most intending to fully transition within the next 18-24 months. It is generally regarded that the future of physical security lies in cloud solutions, underscoring the urgency for immediate action.
Key drivers of this transition include system scalability, improved integration, and efficient remote management, enabling organizations to meet evolving security needs while maintaining a comprehensive defense strategy. Budget forecasts indicate a strategic focus on investments in cybersecurity, cloud storage, and AI-driven automation. With most companies expecting to increase their physical security budgets in 2025, there is a growing consensus within the industry regarding the urgency of adopting modern security practices.
By shifting to cloud-managed systems, businesses can ensure seamless integration of physical security products, facilitating effective scalability and comprehensive protection. Ultimately, security leaders should view the transition to the cloud not merely as a technological upgrade but as a strategy for future-proofing their operations. With AI integration, advanced analytics, and predictive modelling, organizations can proactively identify and respond to emerging threats with agility and accuracy. Cloud-based systems provide centralized management that reduces manual tasks and optimizes security resources across geographically diverse areas. Immediate adoption is essential for ensuring resilience, maintaining compliance, and achieving a strategic advantage in the rapidly evolving security landscape.
The author, Kunal Bhogal, is the Business Head and Chief Design Officer – Design and Technology Services of IIRIS Consulting Pvt. Ltd., a renowned risk and security consultancy organisation
