IP cameras or network cameras are analogue or digital video cameras, plus an embedded video server having an IP address, capable of streaming the video (and sometimes, even audio).
Due to the fact that network cameras are embedded devices, and do not need to output an analogue signal, resolutions higher than CCTV analogue cameras are possible. A typical analogue CCTV camera has a PAL (768x576 pixels) or NTSC (720x480 pixels), whereas network cameras may have VGA (640x480 pixels), SVGA (800x600 pixels) or quad-VGA (1280x960 pixels, also referred to as 'megapixel') resolutions.
An analogue or digital camera connected to a video server acts as a network camera, but the image size is restricted to that of the video standard of the camera. However, optics (lenses and image sensors), not video resolution, are the components that determine the image quality.
Network cameras can be used for very cheap surveillance solutions (requiring one network camera, some Ethernet cabling, and one PC), or to replace entire CCTV installations (cameras become network cameras, tape recorders become DVRs, and CCTV monitors become computers with TFT screens and specialised software. Digital video manufacturers claim that turning CCTV installations into digital video installations is inherently better).
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