Did you know?
There are many types of Video Compression formats. MPEG-4, MPEG-4 ASP, H264 and then there is software and hardware compression. Here's the point to consider... MPEG4 and H264 is the method under which the compressed images are manufactured. H264 compresses the image file size more than MPEG-4 thereby using larger amounts of the computers system resources but allowing for increased storage capacity on your HDD and easier file transmission over a WAN. MPEG-4 manufactures larger files but is easier on the computers system resources creating an environment where your equipment can last longer.
Now the terms software or hardware compression reference where the actual compression is taking place. The task can be completed either in the computers CPU (software) or on the actual capture card (hardware). When it happens on the CPU we task the computer heavliy, especially in the 16 channel, high frame-rate machines. When it happens on the capture card the computers CPU is not tasked and is available for other tasks such as serving remote viewers or dealing with analytic activities like Panorama View, Image Clarifier or Face Detection.
So it is possible to have a "Hardware MPEG-4 Compression" DVR or a "Software H264 Compression" DVR.