Verkada report finds cloud security users adopt AI at 2.6 times the on-premise rate

Verkada's 2026 State of Cloud Physical Security report, covered by SDM Magazine on August 13, 2026, found a gap in AI adoption between organizations running cloud-based physical security and those running on-premise systems. Organizations with cloud-based systems use AI at 2.6 times the rate of those with on-premise systems. The report comes from a vendor that sells cloud-managed cameras and access control, so its findings should be read with that in mind.

The underlying point is still useful for buyers. Many of the newer video features, such as AI search across footage, behavior detection and automated alerts, are being delivered first or only on cloud-managed platforms. Businesses with older on-premise recorders may find that adding these features means replacing or supplementing hardware. On the other side, cloud systems usually carry ongoing per-device subscription costs and depend on internet bandwidth for remote viewing and uploads.

Before choosing a direction, inventory what you have: camera count and age, recorder or VMS platform, and whether your cameras are on approved vendor lists your industry or customers require. Then ask any vendor what AI features actually run on the camera, on a local appliance, or in the cloud, how much upstream bandwidth your sites will need, and what the subscription costs are over five years. Hybrid options, which keep video local while adding cloud management, may fit sites with limited bandwidth.

For organizations that serve government customers, note that Verkada received FedRAMP Moderate authorization in May 2026. Ask any cloud video vendor which compliance authorizations it holds.