IP is an abbreviation for Internet Protocol, the most common protocol for communication over computer networks and the internet. An IP Camera is a camera that creates digitized video streams and transfers them via a wired or wireless IP network thus enabling monitoring and video recording as far as the network reaches. In other words, using an IP camera can save a lot of money on installation since most facilities are already wired with LAN cables. Wiring coaxial cables and power cables is the major expense when implementing analog cameras. It also allows users to have a camera at one location while viewing live video at another location over the network / internet.

It has it's own "mac" and static IP address, so it is just like a computer on your network. A video server can deliver live video automatically or on request to a web browser and be viewed and recorded to a computers hard drive. Video servers digitize analog video sources and distribute digital video over an IP network turning analog cameras into IP cameras. A video server can also be connected via a modem for access over a phone  or ISDN line.

Etrovision will provide SDK (Software Developer Kit) along with a simple AP for reference.

A web camera is connected to a PC, normally through USB, and uses the PC to make video available to other viewers. It will not work without a PC locally connected to the camera. An IP camera is usually standalone, combining the functionality of a high-end web camera with the PC and network interface working together.

Yes. You can record the video at remote or local sites by using the software provided by the IP camera manufacturer. The ability to record the video at remote site(s) is a major advantage of IP cameras over traditional analog cameras.

No. The camera works in local networks without a internet connection. If remote users are in the same local network group it's not necessary to connect the IP cameras to the internet.

MPEG-4 provides DVD quality video, but uses lower bit rate so that it's feasible to transmit digitized video streams in LAN, and also in WAN where bandwidth is more critical, and harder to guarantee. M-JPEG's bandwidth requirement is a little bit more than MPEG-4, while its resolution and frame rate are much worse. MPEG-2 can provide DVD-like video, just like MPEG-4, however as MPEG-2's bandwidth requirement is too high it is not recommended for video use in a LAN or WAN environment.