Global B2B VSaaS Market Outlook for Telecom Operators and ISPs

How Telecom Operators and ISPs Can Move from Bandwidth Providers to AI-Driven Managed Service Leaders

Executive Summary of B2B Cloud Video Surveillance Market Overview

By 2026, B2B Cloud Video Surveillance (VSaaS) has emerged as one of the most scalable and defensible managed services for telecom and ISPs worldwide. Connectivity margins continue to compress. So operators are shifting from selling bandwidth to delivering recurring, high-value managed services built on cloud, AI, and platforms.

The VSaaS market now requires more than basic video storage capabilities. The competitive advantage today depends on businesses that use artificial intelligence for business intelligence and maintain compliant cloud systems and offer complete service packages which unite network access with security measures and data analysis capabilities.

This article investigates VSaaS market patterns throughout North America, Europe and Latin America. It shows telecoms the real use cases of how they can use Aipix VSaaS platforms for sustained business expansion.

Why VSaaS Is a Strategic Growth Engine for Telcos and ISPs

The main factor which leads organizations to choose VSaaS solutions exists throughout all geographic areas because of its permanent nature.

VSaaS allows telecom operators and ISPs to advance their business model by transitioning from basic connectivity services, which generate minimal profit. It enables permanent managed service partnerships that establish their presence in customers’ regular business activities.

Traditional connectivity services have become standard products and lost their value as unique offerings. The cost of bandwidth access keeps getting lower. Moreover customers keep leaving their providers with high churn rates. Speed, price alone no longer work as competitive advantages. The operator–customer relationship undergoes a fundamental transformation through VSaaS. Now it brings service ownership, operational responsibility and business relevance to the partnership.

With VSaaS, the telecom operator becomes:

• The system owner, not just the transport layer
• The trusted custodian of sensitive data, including video, metadata, and AI insights
• An operational partner, responsible for uptime, security, compliance, and outcomes

This shift delivers several strategic advantages:

1. Recurring, High-Margin Revenue Models

VSaaS operates as a subscription-based service. It generates steady monthly payments from each camera installation instead of offering single-time connectivity sales. The combination of AI analytics with extended retention and compliance features establishes natural sales opportunities. All they drive higher ARPU while maintaining operational expenses at a stable level.

2. Deep Customer Lock-In

Video surveillance is mission-critical. Once deployed, customers are highly reluctant to switch providers due to:

• Hardware dependencies
• Stored video and audit requirements
• Staff training and operational workflows

This dramatically reduces churn compared to standalone internet services.

3. Expansion into Adjacent Managed Services

VSaaS acts as a gateway service into a broader managed ecosystem:

• Secure connectivity (fiber, SD-WAN, 5G)
• Cloud storage and edge computing
• Cybersecurity and access control
• IoT and smart building services

Telecoms that control the VSaaS platform control the customer’s security stack.

4. Strategic Relevance to Business Outcomes

Modern VSaaS platforms are no longer just about “real-time watching video.” So customers ask for more and are ready to pay for add-ons. In Aipix built AI-driven insights enable customers to:

• Reduce theft and losses
• Improve operational efficiency
• Optimize store layouts and staffing
• Meet regulatory and insurance requirements

This positions the telecom not as a cost center, but as a business enabler.

5. Long-Term Contract Stability

The sales model for B2B Cloud Video Surveillance (VSaaS) operates differently from consumer connectivity. VSaaS forces customers to purchase 3–5 year service agreements which include hardware and network access. The recurring model produces stable revenue projections which lead to higher customer value (LTV)  throughout their entire relationship.

Regional Market Analysis

1. North America (USA & Canada): AI-First, Hybrid Cloud Leadership

Market Maturity: Very High

The VSaaS market in North America stands as the most developed market. Now it faces strong market competition from various vendors who serve demanding enterprise customers.

Key Characteristics

• Strong shift toward Hybrid Cloud architectures
  • Video stored locally (edge/NVR)
  • Encrypted cloud backup and AI processing
• Heavy adoption of advanced AI analytics, including:
  • Facial recognition
  • License plate recognition (LPR)
  • Object detection and behavioral analytics

VSaaS Pricing & Commercial Models

• Per-camera, per-month subscriptions dominate
• Typical benchmarks:
  • Entry-level (7-day retention): $5–$15 / camera / month
  • Enterprise (30–90 days + AI): $20–$45 / camera / month
• Hardware:
  • Often sold separately or bundled into 3–5 year contracts
  • Typical camera cost: $150–$400

Strategic Implications for ISPs

North American ISPs succeed by positioning B2B Cloud Video Surveillance as part of a managed IT ecosystem, integrating:

• Secure networking
• Cloud storage
• AI analytics
• Compliance-ready operations

White-label platforms such as Aipix demonstrate how ISPs leverage flexible VSaaS backends. An approach mirrored by modular platforms like Aipix enables rapid service deployment without vendor lock-in.

2. Europe: Compliance-Driven “Security-as-a-Service”

Market Maturity: High
The European VSaaS market operates under three main regulatory factors which include GDPR, data sovereignty requirements and cybersecurity standards.

Key Characteristics

• Strong emphasis on local data residency
• Video surveillance bundled with:
  • Access control
  • Alarm monitoring
  • Identity and compliance management
• Buyers value trust, certification, and regulatory alignment as much as features

VSaaS Pricing & Commercial Models

• Subscription-based pricing, frequently bundled with dedicated fiber or MPLS
• Typical benchmarks:
  • Standard B2B (30-day storage): €10–€25 / camera / month
  • AI/analytics add-ons: €5–€12 per feature
• Services positioned as Security-as-a-Service, not standalone video

Telecom Leadership Examples

Operators like Telefónica Tech and Deutsche Telekom have successfully packaged VSaaS into managed cloud security suites for B2B.

Strategic Implications for ISPs

Success in Europe requires:

• GDPR-by-design architecture
• Clear data localization controls
• Cybersecure cloud and edge deployments

Platforms like Aipix VSaaS, with flexible cloud placement and policy-driven data management, are particularly well suited to European regulatory realities.

3. Latin America (LATAM): High-Growth, SMB-Focused VSaaS

Market Maturity: Emerging but Fast-Growing
The VSaaS market at LATAM shows the highest growth rate because small and medium businesses need security solutions and actual security threats exist in the market.

Key Characteristics

• Security is a top business priority due to theft and safety risks
• Focus on:
  • Remote monitoring
  • Theft prevention
  • Simple mobile access
• High sensitivity to price, but strong demand for bundled solutions

VSaaS Pricing & Commercial Models

• Simplified All-in-One bundles dominate
  • Internet + cameras + cloud + app
• Typical benchmarks:
  • Budget cloud: $3–$8 / camera / month
  • Full SMB bundles: $30–$50/month including hardware

Telecom Leadership Examples

Operators such as Claro and Telefónica (Movistar) lead with “Smart Security” packages for small retailers and offices.

Strategic Implications for ISPs

In LATAM, scale and simplicity win:

• Fast provisioning
• Minimal on-site complexity
• Pre-packaged hardware + VSaaS

Aipix-style platforms enable rapid deployment, centralized management, and mass-market economics essential for LATAM growth.

Comparative VSaaS Market Summary: Price, Conditions, Add-ons

What This Means for Aipix VSaaS Partners

Telecom operators and ISPs must treat VSaaS as their fundamental business foundation as it will determine their ability to stay competitive and expand their operations in the next decades.

The market has reached a point where network connectivity is widely available. Most global businesses now focus on obtaining services of security protection, intelligence capabilities and specific business performance results. 

The Aipix VSaaS solution allows operators to advance their offerings in B2B Cloud Video Surveillance through strategic value chain development. 

• Launching fully white-label video surveillance services
• Monetizing AI analytics as high-margin, recurring add-ons
• Adapting easily to regional compliance and data residency requirements
• Integrating seamlessly with connectivity, cloud, and telecom billing systems

The winners in 2026 and beyond will not be those selling megabits, but those delivering AI-powered security and intelligence as a managed service.

Aipix VSaaS provides the platform to lead that transformation! Want to get the details? Leave a request via form to get free consultation!