An IP camera is a digital security camera that converts what it sees into compressed video and sends it over a computer network, typically wired Ethernet and sometimes Wi-Fi, using the Internet Protocol (IP). The video goes to a network video recorder (NVR), video management software on a server, or a cloud platform, and can be viewed from a browser or app. Most new business camera systems are built on IP cameras.
At a glance
- IP cameras send digital video over a data network rather than an analog signal over coax.
- Most wired models are powered by Power over Ethernet (PoE), so one cable carries power and data.
- Video is recorded on an NVR, video management software, the camera’s own storage or a cloud service, depending on the design.
- Many cameras run built-in analytics such as person and vehicle detection; capabilities vary by model.
- As networked devices, they need patching, strong passwords and network segmentation like other connected equipment.
What problem it solves
Older analog CCTV cameras send a video signal over coaxial cable to a digital video recorder (DVR). That works, but resolution has historically been limited, each camera needs its own cable run back to the recorder, and adding features means replacing hardware. Footage that is too blurry to identify a face or a plate is a common complaint.
IP cameras move video onto the same kind of network the rest of the business uses. Higher resolutions are common, cameras can be added wherever a network port and PoE switch can reach, and video can be sent to on-site or cloud recording. Many cameras process video themselves, which allows features such as person or vehicle detection and smarter search through video analytics.
How it works
Capture and encoding. The camera’s image sensor captures video, and an onboard processor compresses it, commonly with H.264 or H.265, so it can travel over the network without using excessive bandwidth or storage.
Power and cabling. Wired cameras usually connect with Category cabling to a PoE switch, which supplies power and network in one run. Ethernet runs have distance limits, so camera locations, closet locations and structured cabling design go together. Outdoor and pan-tilt-zoom cameras may need more power than basic models.
Recording and management. The camera streams to an NVR, video management software (VMS) on a server, or a cloud platform such as video surveillance as a service (VSaaS). Many cameras also have a memory card slot for local recording or as a buffer during network outages. ONVIF, an industry interoperability standard, helps cameras and recorders from different makers work together, though support varies by profile and feature.
Security. Cameras are network devices with their own operating system and web interface. Best practice is to change default credentials, update firmware, disable unused services and place cameras on a separate VLAN or network segment to limit what a compromised camera can reach, a core part of IoT security.
When it matters for buyers
- When opening a new office. Planning camera locations alongside cabling, PoE switch capacity and closet space avoids costly retrofits.
- When replacing an analog system. You will usually need new cameras, a new recorder or cloud platform, and possibly new cabling.
- When sizing the network. Camera count, resolution, frame rate and retention drive switch, storage and, for cloud recording, upload bandwidth needs.
- When choosing vendors. Some cameras work broadly with third-party software; others are tied to one vendor’s recorder or cloud. That choice affects future flexibility.
- When privacy rules apply. Camera placement, audio recording, notice to employees and visitors, and retention are regulated differently by jurisdiction; check with counsel.
Questions to ask vendors
- Which recorders, video management software or cloud platforms support this camera, and which features work with each?
- What PoE class does each camera need, and does our switch have enough power budget?
- How are firmware updates delivered, and how long will this model receive security updates?
- Does the camera support local recording if the network or cloud connection is lost?
- Which analytics run on the camera, and are any licensed separately?
- Where is the camera manufactured, and are there procurement restrictions that apply to us?
- What happens to the cameras if we change recording platforms later?
How it differs from analog and HD-over-coax cameras
Analog cameras send an uncompressed video signal over coaxial cable to a DVR. HD-over-coax formats, such as HD-TVI, HD-CVI and AHD, push higher resolution over the same coax and are a common way to upgrade picture quality while keeping existing cabling, but each format needs a compatible DVR. IP cameras instead send digital video over a data network, usually powered by PoE, and record to an NVR, software or cloud. Analog and HD-over-coax systems can be simpler and cheaper to keep where coax already runs; IP systems generally offer more resolution options, built-in analytics and flexibility in where video is recorded. For help comparing options, see our video surveillance overview.