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In video surveillance, the choice between encoding video at the edge and performing central transcoding has a direct impact on bandwidth use, storage needs, and system responsiveness. Edge encoding processes video directly at the camera or local device to reduce the data sent over the network. Central transcoding collects raw streams and processes them later at a central server, offering more flexibility but requiring higher network capacity. Deciding between the two is important because it determines how effectively a system can balance quality, cost, and scalability in real-world monitoring scenarios. Bandwidth and Latency Edge Encoding By compressing video on the device, edge encoding reduces bandwidth by 70% to 90%, using approximately 1 Mbps to 4 Mbps per 1080p stream compared to over 100 Mbps for raw footage. Latency remains below 200 ms since encoding occurs before transmission, making it suitable for remote sites with limited connectivity. Central Transcoding Raw video streams increase bandwidth needs by 5 to 10 times, requiring 10 Gbps or more for systems with 100 cameras. Latency ranges between 500 ms to 1000 ms due to transport delays and queueing, though buffering makes it effective for storage and non-real-time reviews. Resource Allocation Edge Encoding Uses hardware built into cameras, such as SoC encoders, with low power consumption of 5 Watts to 15 Watts per unit. Encoding typically uses under 50% of CPU/GPU capacity to allow local analytics such as facial recognition without depending on a central system. Central Transcoding Relies on high-performance servers, such as Xeon clusters with NVIDIA GPUs, often running at 80–100% utilization for more than 50 video streams. Power consumption ranges from 100 Watts to 500 Watts per rack, with 16 to 64 GB RAM needed to buffer multiple formats during peak usage. Scalability and Cost Edge Encoding Scales horizontally by adding more cameras, supporting over 1,000 devices in mesh networks with minimal infrastructure costs of $50–$200 per unit. It delivers long-term savings through reduced cabling and lower bandwidth charges, though firmware updates add maintenance requirements. Central Transcoding Scales vertically through cloud infrastructure like AWS EC2, capable of handling thousands of streams but requiring a higher initial investment, often exceeding $5,000. Large-scale deployments benefit from analytics efficiencies, reducing the per-stream cost by 30% while incurring data center expenses. Security and Reliability Edge Encoding Improves security by performing on-device encryption, such as AES-256, and allowing tamper detection. Reliability is enhanced by local failover options like SD card storage during outages, achieving around 99.5% uptime. Central Transcoding Provides centralized security features such as firewalls and SIEM integration, but introduces a single point of failure risk. With redundancy, uptime averages 99%. Central transcoding supports uniform watermarking and audit logs, useful for compliance in regulated industries like banking. Implementation Considerations Edge Encoding Supports integration through ONVIF and RTSP protocols for easy connection to NVRs. Using H.265 can save up to 40% bandwidth for battery-powered devices. Edge analytics can offload up to 30% of central processing, provided they are optimized for varying environmental conditions. Central Transcoding Uses tools such as FFmpeg or GStreamer to support multiple formats, for example, converting MJPEG to H.265. Load balancing ensures continuous operation, while hardware acceleration (such as Intel Quick Sync) improves performance when handling varying bitrates. Integration with video management systems enables event-triggered transcoding. Comparison Table