The video surveillance industry currently uses analog CCTV cameras and interfaces as the basis of surveillance systems. The next generation of video surveillance systems, however, will replace these components with newer digital LAN cameras, complex image processing, and video-over-IP routing. The Internet protocol (IP)-based structure of the new surveillance systems allows for scalability, flexibility, and cyber security. Various encoding and decoding standards transport the video stream (MPEG4 CODEC is the standard used today). Besides the CODEC function, image pre- and postprocessing enhances the picture quality in real time with low latency. Programmable logic with embedded DSP blocks, memories, interfaces, and off-the-shelf IP solutions allows a designer to meet the new system requirements.