IoT According to Goldman Sacs

•  The  Internet  of  Things  (IoT)  is  emerging  as  the  third  wave  in  the  development  of  the  Internet.  

•  The  1990s’  fixed  Internet  wave  connected  1  billion  users,  while  the  2000s’  mobile  wave  connected  another  2  billion.    

•  The  IoT  has  the  potenCal  to  connect  10X  as  many  (28  billion)  “things”  to  the  Internet  by  2020,  ranging  from  bracelets  to  cars.  

Source:  Goldman  Sacs  IoT  Primer  –  Sept.  2014  

Enabling  Tech  •  Cheap  sensors    

•  Cheap  bandwidth    •  Cheap  processing    

•  Smartphones    •  Ubiquitous  wireless    

•  Big  data    •  IPv6  

We  expect  home  automaCon  to  be  at  the  vanguard  of  IoT  adopCon…While  the  concept  of  “smart  homes”  has  existed  since  the  1960s,  the  house  remains  one  of  the  few  elements  in  our  lives  sCll  governed  by  physical/analog  soluCons.  To  this  end,  CEA  esCmates  only  10%  of  new  homes  in  the  United  States  have  home  automaCon  currently.  However,  as  the  base  of  smartphone  users  grows  significantly,  coupled  with  increasing  digiCzaCon  within  the  home,  we  see  home  energy  efficiency,  home  comfort,  and  security  as  key  areas  of  focus  for  industrials  

Source:  Goldman  Sacs  IoT  Primer  –  Sept.  2014  

IoT & Home Automation according to Goldman

IoT  means  More  smart  home  systems  and  products  connected  to  each  other  and  the  wide  

area  network  

A  need/opportunity  for  professional  remote  

monitoring,  analysis  and  management  

An  opportunity  for  builders  to  share  in  post  occupancy  

revenue  and  business  intelligence  streams  

IoT  enables  

Session Panelists & Plan •  Ma_hew  Pine,  VP  MarkeCng,  Carrier  Corp.—The  HVAC/IAQ  

SoluCons  Stack  •  Bob  Dahlberg,  VP  Biz  Dev,  Arrayent—IoT  Pladorms    •  Shailesh  Topiwala,  Corporate  Biz  Dev  Exec.,  Bosch—Drill  

down  on  appliances  and  security  systems  •  Patrick  Egan,  CEO,  Security  Partners  –    Monitoring  &  

Managed  Services  Providers  Role  •  Your  quesCons  

55-­‐  to  64-­‐year-­‐old  consumers  watch  

television  while  surfing  the  Web  and  texCng  with  

friends.  

65%  Americans  spend  more  Cme  on  devices  than  watching  

television  Smart  phone  adopCon  conCnues  

61%  Tablets  outsold  PCs  for  

first  Cme  in  Q4  

190  Million  

SOURCES: researchismypassion.blogspot.com and pewresearch.org

Trends Enabling Intelligent Homes

Trends Enabling Intelligent Homes

SOURCE: Parks Associates

Hot spots

Wifi 4G coverage

‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16

Residential Broadband Connections

Broadband households (In Millions)

Broadband Penetration (Percent of all households)

Sources:  April  2014,  DuraTrend  2013  Parks  and  Associates    

 

1.1 1.5 1.8 2.2 2.7 3.2

5.2 5.2

5.4 5.5

5.4 5.3

2012 2013 2014 2015 2016 2017

6.3  6.7  

7.2  7.7  

8.1  8.5  

(Units,  millions)  

24V  Non-­‐CommunicaCng  

CommunicaCng  

Trends Driving Remote Access Thermostat Growth

Personal   Connected  Cars  

Connected  Homes  

Connected  CiBes  

Industrial  Internet  

Wearables  

Manufacturing  

TransportaCon  

Oil  &  Mining  

Parking  Meters  

Security  

Electric  

Traffic  Signals  

Security   HVAC   Entertainment  

Doors   Locks   Appliances  

Lights   Water   Internet  

Entertainment  

GPS  

Collision  Avoidance  

Energy  Management  

DiagnosCcs  

Security  

Key IoT Verticals

Monitor  

.  .  .  Of  Smart,  Connected  Products  

Control  

OpCmize  

Autonomy  

Self-­‐Running  

•  Self-­‐CoordinaCon  

•  Self  Diagnosis  &  Service  

More  Efficient  OperaBon  

•  Enhanced  OperaCon  

•  PredicCve  Service  

SoLware  Enabled  

•  Feature  Control  

•  PersonalizaCon  

Real-­‐Bme  Status  

•  Product  CondiCon  

•  Product  Environment  

•  Usage  

Source:  Harvard  Business  Review,  Nov  2014  

Capabilities

T-Stat

Furnace

Air Purification

Weather Data

System

HVAC Equipment

System

Security System

Power System

HVAC Equipment

System

Weather Norms Weather Forecasts

Wind / Humidity Temperature Weather Data

Application

TOU pricing

Demand

Response

Security Settings

Sensors

CO/Smoke

KW usage

1.  Product  

2.  Smart  Product  

3.  Smart  

Connected    Product  

4.  Product    System  

5.  System  of    Systems  

HVAC Management

System

+  +  

+   +  

+  

The NEW HVAC System

Millennials Amplify Trends

64%  Millennials  

believe  updated  technology  is  required  

56%  ranked  home  

technology  over  curb  appeal  

Sources:  Be_er  Homes  and  Gardens®  Real  Estate  2013;    

More  concerned  with  environmental  

impact  

Efficiency  top  connected  home  benefit  

Sources:  Builder  Online  –  The  Demand  InsCtute  2015;  Parks  and  Associates  2013  

Part  with  q2  

to  gain  be_er  energy  efficiency  

Sources:  Builder  Online  –  The  Demand  InsCtute  2015  

SoluBon  Sourcing  

Internal  Resources  

Consumer  SaBsfacBon  

Develop  a  strategy  to  insource  or  outsource  to  

reliable,  long-­‐term  partners  

Build  internal  competency  and  capability  in  the  Connected  Home  

Don’t  just  deliver  a  smart  home,  deliver  a  smart  soluCon.  

Home  Builder’s  Role  in  the  Connected  Home  

RelaBonships  

Capitalize  on  the  opportunity  to  have  

a  lifeCme  relaConship  with  the  consumer.  

Key Takeaways

Arrayent Introduction •  The  IoT  PlaSorm  Chosen  by  Trusted  Brands  

Enterprise  APIs  Home  

Arrayent = Your Cloud Your Customers, Your Partners

•  API  for  Business  Systems  integraBon  

Your Brand

Products

Utility Security

Automation Entertainment

Chamberlain  MyQ  

Status,  alerts,  controls  

Sell  Maintenance  

Data  analyCcs  

InteracCons  with  3rd-­‐party  devices  and  services  

Expand  to  new  sales  channels  

Whirlpool  Smart  

Status,  alerts,  controls  

Sell  more  consumables  

Data  analyCcs  

InteracCons  with  3rd-­‐party  devices  and  services  

Smart  grid-­‐enhanced    energy  management  

Maytag  Connect  360  

Status,  alerts,  controls  

Smart      Service  

Data  analyCcs  

Enable  Dynamic  Pricing  

Enable  Electronic  Payment  

Smart Home Drivers  Entertainment  

Family  Peace              of  Mind    

Save  $  /  LEED  

Home  Peace              of  Mind    

IoT Adoption Entertainment  

Fitness  

Home  

Home      10K   100K    1M   10M  

Point  SoluBons  

System  SoluBons  

Internet–The  Driver  of  Change  

Connected  Business  Models  

Internet of Things & Services Connecting the physical world

with the virtual world

Web  3.0  

Conn

ecBv

ity  

Connected  People  

Connected  Documents  

Connected  Business  

Web-­‐Services  

Java,  XML        

     Browser,  Webserver  

     Business-­‐Services  

2005  2000  1995   2020  

Web  0   Web  1.0   Web  2.0  

A  Connected  World  

Focus  on  User  Xperience  The  Enterprise  is  de-­‐perimeterized.  User  IdenBty  is  the  new  perimeter.  

Home  Connect  –  from  Bosch  

Brand  X  

3 G  

…  to  your  appliances  

…  within  the  house  

…  as  well  as  from  outside  

Home Connect makes your house smart, and connects you …

Home  Connect  is  Open  

MulCple  appliances  

MulCple  brands   MulCple  services  

MulCple  features  

   

Different  product  categories,  brands,  features  and  services…  

User-­‐Oriented  Features  Remote Monitoring & Control

•  All  programs  &  appliance  setngs  •  In-­‐house  &  Out-­‐of-­‐house  •  With  Eco-­‐Prognosis  •  Push  NoCficaCons  

Customer Service •  Self-­‐Diagnosis  •  MulCmedia  Cps  &  tricks  •  Bosch/  Siemens  Contacts  •  Link  to  the  Bosch/Siemens  Online  Shop  •  Digital  instrucCon  manual  

Recipes •  General  and  Bosch/  Siemens  Recipes  •  Herbs  &  Spices  dicConary  •  Cooking  advices  •  Favorites    

Usable  Security  

as  simple  as  a  key   but less complex than millions of keys

Bosch  ResidenBal  Security  User  -­‐Focused  Home  AutomaBon  Macros  a)  Upon  arming  the  system  

•  Turn  down  the  heat  •  Turn  off  the  lights  •  Lock  the  doors    

b)  Upon  unlocking  the  door  •  Disarms  the  system  •  Turn  on  the  lights  •  Turn  up  the  heat  •  Take  a  picture  or  ini9ate  a  30s  recording  

c)  Miscellaneous  •  Lock  the  door,  arm  perimeter  •  Turn  on  siren  and  lights  on  alarm  •  Disarm  with  a  RADION  keyfob,  unlock  the  door  •  Unlock  remotely  with  app  

LighBng  

Door  Locks   IP  Camera  

Thermostat  

Security  Panel  

G100  Z-­‐Wave  Gateway  

IP  Interface  

   Eventually,    everything  connects  —  people,  ideas,  objects.  The  quality  of  the  

 connecCons  is  the  key  to  quality  per  se”    Charles  Eames,  Designer,  USA  (1907-­‐1978)  

An inside look at Central Stations 24/7  connecCon  between  systems  and  911  

SophisCcated  IT  Systems  

MulCple  CommunicaCon  

Lines  

MulCple  Infrastructure  

Backups  

AT&T   Verizon  

Natural  Gas   Diesel  

What do people want in a connected home?

Security  65%  

Temp  Control  57%  

Safety  48%  LighCng  

46%  

Entertainment  

42%  

Appliances  

23%  

2/3  rds  of  all  smart  homes  use  a  central  controller  

The Evolution of the Connected Home

©Parks Associates

Phase  III  

Phase  II  

Phase  I  

Connected  Devices  collect  and  report  informaCon  Example:  • Thermostats  communicate  with  smartphone  app  

Systems  analyze  informaCon  to  predict  trends  Example:  • System  tracks  when  people  are  in  the  home  and  provides  suggested  energy  efficient  schedule.  

Adapt  &  Learn  Example:  • System  uses  geotracking  informaCon  from  smartphone  to  automaCcally  warm  or  cool  home,  adapts  other  schedules  to  create  comfort  and  efficiencies.    

Real estate agents say homebuyers are shopping smart

33%  Agree  

59%  Agree  

64%  Agree  

Buyers  today  are  more  interested  in  smart  home  features  than  before.  

Agents  are  seeing  more  smart  home  features  in  listed  properCes.  

Homes  with  smart  home  technology  sell  faster  than  those  without.  

2015  survey  of  500  Coldwell  Banker  sales  associates  

You  can  do  it  alone,  installing  the  individual  components  and  not  have  them  integrated.  Or,  partner  with  an  

installer  that  uses  a  centralized  controller  and  monitoring  center  and  benefit  from  

years  of  recurring  revenue.  

QuesCons?