There is an interesting post on the use of video analytics with IP based cameras in this blog Physical Security Technology in the Bentley community.
What the author might not know is that we have integrated video cameras...and sensors and RFID into ProjectWise in a seemless fashion. here at Bentley in our research labs. Without changing the base architecture of these systems, we have created linked models that allow geospatial positioning of the nodes on a map of the TP1 building on our campus here in Exton.
One of the main points made in the posting is that video analytic capability built-in to the cameras at the edge of a network is cheaper and better than using a traditional DVR. He also mentions a classic study by Axis Cameras that shows that IP based cameras are better/cheaper than CCTV cameras.
No doubt that cameras that are IP based are better. In fact, there is a strong movement to making all systems in buildings and other infrastructure IP based. However, I'm not convinced that the intelligence for the cameras should always be at the edge and on the device itself. This reminds me of the debates in the early days of Wi-Fi access points. The same arguement was made that intelligence should be in the edge device. Symbol and later other vendors showed architectures that put the intelligence back in a central switch architecture.
I think the real answer is ..."it depends"