a pervasive computing platform for the homesexton/telematics/docs/hi.pdf · 2000-09-21 · forces...
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The Home Infostructure� A Pervasive Computing Platform for the Home
Ian O�SullivanStrategic Marketing
December 9, 1999
Copyright © 1999 Enikia Incorporated
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Presentation OverviewThe convergence of home networking, broadband Internet
access, and residential gateways.
� Market Environment and Industry Convergence
� The Consumer Technology Value Chain� The Home Infostructure
� Definition� Technology Components� Deployment Phases� Market Drivers� Network Evolution
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Pervasive ComputingPervasive ComputingPervasive ComputingPervasive Computing
� What is it?� Invisible computing where microchip intelligence is
embedded into everyday objects and devices
� Goal� Interconnect people through a globally integrated data
network� Extend the Internet �cloud� into hands of mainstream
consumers
� Long Term Vision� Consumers can access information, entertainment, and
communicate for anywhere at anytime
� . . . A billion people interacting with a million e-businesses with a trillion intelligent devices interconnected . . .�
(L.V.G)
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Forces of ConvergenceForces of ConvergenceForces of ConvergenceForces of Convergence
1) Deregulation of Global Infrastructures� Multiple industries including energy, telecom, cable & broadcast,
etc.� Competitive environment with new opportunities and threats
2) Embedded Computing & Information Appliances� Decreasing cost and increasing power of silicon intelligence
3) Analog-Digital Conversion� Content: Records/Tapes to CDs/MP3s/DVDs� Infrastructure: PSTN to IP- based networks
4) Adoption of Internet as Commercial Channel� Secure transaction processing, e-commerce, banking, virtual
retailing
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Value Chain For Consumer Technology
� Tier 1- Network InfrastructureDigital network serving as mass market information infrastructure or infostructure.
� Tier 2- Devices (information appliances)Electric devices with embedded intelligence and communications abilities become electro-domestic network devices (ENDs). Potentially includes all appliances, electronics, and computers.
� Tier 3- ContentDigital Media Commodities (DMCs) take the forms of Communications, Information,
and Entertainment Titles
� Tier 4- ServicesHuman interface activities including:
� Submarket brokering� Network access & control (remote access, automation, telemetry, etc.)� Network administration (Technical support, network maintinence, etc.)� Residential services (Home health care, security, energy management, etc.)� Customer relationship management (billing, branding, and education)
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Information Economy Derivative Markets Model (IEDMM)
Derivative Market Premise� The growth potential for the higher tier markets is based
development of underlying market tiers� The infrastructure market (Tier 1) must mature in order for the
device (Tier 2), content (Tier 3), and services (Tier 4) marketsto grow.
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The IEDMMDetailed Perspective
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The Home Infostructure The Home Infostructure The Home Infostructure The Home Infostructure Connecting residential consumers to the InternetConnecting residential consumers to the InternetConnecting residential consumers to the InternetConnecting residential consumers to the Internet
Role� Pervasive computing platform for the home� Economic conduit between Internet-based
vendors and residential consumers
Purpose� Provide interconnectivity for intelligent devices� Ubiquitous access to home network and the
Internet� Enables users to communicate and share data
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The Home Infostructure The Home Infostructure The Home Infostructure The Home Infostructure Technology Components
1) Broadband Local Loop2) Residential Gateways (RG)3) In-Home Networks (Information Appliance Network)
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Broadband Local LoopBroadband Local LoopBroadband Local LoopBroadband Local Loop(Home Internet Connectivity)(Home Internet Connectivity)(Home Internet Connectivity)(Home Internet Connectivity)
Functional Requirements�High-Speed (>1Mbps)�Persistent Connection �Bi-Directional Communications�Simultaneous Multi-User Support �Quality of Service (QoS) Scaling
Enabling Technologies�xDSL�Cable �Powerline (DPL)�Wireless�Satellite �FTTH
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Residential Gateway (LAN-WAN Interface)
Functional Requirements� Remote management access
platform� Sub-Network Bridging
(Interconnectivity and Intercompatibility)
� Distributed application platform� Firewall
Enabling Technologies� OSGi specification� Home Gate� Cisco reference designs� Jini/Java� Universal Plug-n-Play
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In-Home Network (Information Appliance Network)
Functional Requirements� Reliability: Tolerate environmental
fluctuation (noise interferace, multipath)
� Ubiquity: Prevalent network access points
� Cost: Affordable for mass market� Speed: Support distribution of media
rich content (>10Mbps)� Mobility: Support untethered devices � Quality of Service: Scalable QoS
levels for application requirements of individual devices
� Security: Authentication, encryption, etc.
� Remote Management:queries, configuration, upgrades
� Ease of Use: Like telephones and TVs
Enabling Technologies(without new wires)
� Phoneline (Backbone)� Powerline (Backbone &
Control)� Wireless (Mobility)
Enabling Technologies(New Wires)
� Cat5/10Base-T� IEEE 1394 Firewire� USB
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The Multi-Layer Home Network
� Backbone Networks� Mobility Networks� Control Networks� Wired Networks
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The Backbone Network(High Speed)
Technologies: Powerline and Phoneline (Home PNA)
Benefits:� Phoneline: Current products can interconnect PCs and
peripherals for shared Internet access.� Powerline: Offers ideal architecture for data network since
majority of devices must already connect to power source in order to operate.
Drawbacks:Does not solve mobility requirement. Too expensive for low-bandwidth (control and automation) solutions. � Phoneline: Since phone jacks do not offer sufficient network
access points to support pervasive computing within home it cannot serve as long term backbone solution. (ubiquity requirement)
� Powerline: Experimental technology currently in field trials
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Mobility Networks(Wireless & RF)
Technologies� Home RF� Bluetooth� IEEE 802.11 � Sharewave/ Proxim
Benefits: Provides �untethered� solution for devices that need simultaneous mobility and communications
Drawbacks: Limited bandwidth, unresolved security issues, network infringement issues, and comparatively high cost
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Control Networks(Low Speed Powerline)
Technologies� X10� CEBus� Lonworks
Benefits: Existing product solutions, established industry standards, low cost, simple implementation for control and automation.
Drawbacks: Cannot support real time, high bandwidth, or mobility requirements. Value proposition of stand-alone applications does not offer incentives for mainstream market to consume products.
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Wired Networks
Technologies� USB� Cat-5/10Base-T� IEEE 1394 �Firewire�
Benefits: Optimal communications environment: Robust, reliable, high speed, etc.
Drawbacks: Penetrating mass market requires �no new wires� technology. These solutions will primarily extend only to new homes with structured wiring and the technophile/hobbyist and professional home user market.
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Home NetHome NetHome NetHome Networking Deployment working Deployment working Deployment working Deployment Phases and Market DriversPhases and Market DriversPhases and Market DriversPhases and Market Drivers
�Technology is absorbed into any given community in stages according to the psychological and social profiles of various segments within that community.�
Geoffrey Moore
� Converging markets will mature in 4 phases� Phase 1: Interconnecting PCs� Phase 2: Broadband convergence (voice and data)� Phase 3: Service provider deployment� Phase 4: Information appliances
� Each phase addresses different needs of different segments at different points in time
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Technology Adoption Lifecycle
� Source: �Crossing the Chasm� by Geoffrey A. Moore, Harper Business 1991
�The model describes the market penetration of any new technology product in terms of a progression of the types of consumers it attracts throughout its useful life� *
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Market Adoption of TechnologiesMarket Adoption of TechnologiesMarket Adoption of TechnologiesMarket Adoption of TechnologiesPhase 1: Interconnecting PCsPhase 2: Broadband convergence (voice and data)Phase 3: Service provider deploymentPhase 4: Information appliances
� The adoption cycle for the different market phases will overlap in time.
� Each successive market phase will increase in market reach (size) and duration (time).
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Phase 1- Interconnecting PCsMarket Segment Analysis
Psychographic Profile� Upper socio-economic, educated, hobbyist, technically savvy� Subset of estimated 15-20 mil. Multi-PC-owning households
Killer Applications� Connecting PCs, peripheral sharing, Internet account sharing.
Spending Threshold � $50-$100 per node (analysis estimate $1.5B industry?)
Network Features� Market adoption somewhat congruent with broadband
deployment� Use of set-top box modems or basic router-type gateways� Home PNA-based (phoneline) technology for in-home
connectivity
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Phase 2- Broadband DeploymentMarket Segment Analysis
Killer Applications� 1st generation of converged voice and data� VoIP, web applications, multi-player gamingMarket Driver: Cost displacement� Average telecom spending: $60/month (local &long distance)� 18 million homes with multiple phone lines� 22 million ISP subscriptions ($20/month for 28.8/56Kbps)
Network Features� Devices: 1st gen. Info appliances like digital telephony devices
(VoIP phones) and PC substitutes like web TV, intelligent control consoles
� Home Network: 2nd gen. Home PNA and 1st gen. powerline and wireless
� Gateway: QoS for bi-directional isochronous data (voice traffic), basic firewall and network bridging capabilities.
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Crossing the ChasmThe Aggregate Market View
� A chasm will separate the aggregate market into two main groups.
� In crossing the chasm, the market drivers (source of incentives) will invert from consumer demand to vendor supply.
� Vast majority of market opportunity resides in the Late Adopter segment
� Marketing responses between these groups will differ significantly according to their psychographic profiles.
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Different Markets - Different StrategiesProduct positioning to cross the chasm*
Early Adopters� Innovators, visionaries, techies� Technology Focus
� (technical gadgets)� Consumer Driven (demand)
� consumer wants access to technology
� Value Proposition: More technology & better performance
Late Adopters� Mainstream consumers� Solution Focus
� (consumer commodities)� Vendor Driven (supply)
� vendors want access to consumer
� Value Proposition: Convenience, reliability, low cost
* Solution for crossing the chasm: Mass market deployment of an integrated Home Infostructure.
Market Segment Psychographic Profiles
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Phase 3- Service ProviderHome Infostructure Deployment
Definition� Integration of broadband, RG, and multi-layer home network
technology.� Deployed by service provider as an end-end platform for distributing
digital content to consumers.
Value Role� Economic conduit between residential consumer and Internet-based
vendors worldwide� The service providers that deploy Home Infostructure solutions will
have significant market leverage by effectively owning the access platform to each each household (as a center of economic consumption).
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Phase 3- Service ProviderThe Transition to a Digital Economy
Killer App Breakdown� Obsolescence of voice-data model� Pumping bits
(digital plumbing to/from home and throughout premises)� Bit Properties and Network Requirements
� Latency reqs: Voice (VoIP) bits vs. web page bits � Bandwidth reqs: DVD downloads vs. web pages download� Isochronicity reqs: MP3 download vs. Real Audio streaming
The New �Virtual� ProductsDigital media commodities (DMCs)� Communications� Information� Entertainment Titles
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Phase 3- Service ProviderService Value in the New Economy
Killer Services� Network Maintenance
� Remote management & technical support� Customer Relationship Management (CRM)
� Consolidated billing, branding, customer service interface� Residential Services (Bringing brick & mortar services to the home)
� Home Health Care, Energy Management, Banking & Investment, Telecommuting, On-line Shopping, Distance Learning, Home Security
Value Proposition of the New EconomyThe purpose of the technology infrastructure, the devices, and the content
is ultimately to achieve the following goals for the consumer:� Save time� Save money� Simplify life� Enhance leisure activities (like entertainment)
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Phase 4 - Information AppliancesMass market penetration of standards-based Home Infostructure solution
Purpose: Provide a unified platform that satisfies all of the mainstream consumer�s needs for communications, information, and entertainment.
Residential Gateway� Security and privacy firewall
� Supports secure E-commerce transactions, remote home control, and access from authorized service providers.
� QoS supporting a multitude of intelligent devices� Different OEMs will make devices that competing for bandwidth.
� Upgrade platform� Remote network configuration, device queries, service deployment, software
upgrades, etc. � Application Server
� Distributed computing platform for home� Multi-layer Network Bridging
� Protocol translation and physical interface for multiple in-home networks (backbone, control, mobility, entertainment, security, etc)
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Phase 4- Information AppliancesThe Home Network
� Standards-based powerline and wireless technology will supplant phoneline technology.
� Home network technology invisibly penetrates mass market through:1) Service providers that deploy Home Infostructures (embedded into RG)2) OEMs will ship network-enabled devices (embedded powerline and RF chips).
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Phase 4- Information AppliancesMovement towards non-PC-centric computing
Market Drivers� Deliver solutions to the 50% of US households without PCs� Just because consumer doesn�t have PC doesn't mean they don�t
spend money on products and services (phone calls, CDs, movies) that can be delivered digitally over the Home Infostructure platform.
Device Evolution� When Home Infostructure penetrates �critical mass� of mainstream
marketplace, OEMs will evolve devices to leverage new digital infrastructure.
� Embedded intelligence and networking technology will exist in all electro-domestic devices (appliances, electronics, and computers)
OEM Service and Content Bundles � Intelligent devices will be marketed with content subscriptions and
service agreements� Cross-channel marketing efforts between content/service providers and
device OEMs� Home news printer from USA Today/Hewlett-Packard� Appliances with energy management features from Maytag/PSE&G� E-mail web pad from AOL
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Distributed Computing Client-server architectures for the home
Definition:Broadband network enables multi-media content to be streamed from servers to thin clients (at both LAN and WAN levels). Concept Example: Enikia�s Powerline Distributed Music System
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IEDMM Composite Model
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Profit Incentive for Home Infostructure Deployment
Accounting Category Itemized Breakdown� Revenues
(Tier 3 + 4)� Net Present Value (NPV*) of:Digital Media Commodities(Communications, Information, & Entertainment Titles)
Services *(sub-market brokering, integrated solutions, CRM)
� <Fixed Costs>(Tier 1)
� Infrastructure Investment for:Hardware Costs
Implementation Costs(system installation and configuration)
� <Operating Expenses>(Tier 1)
� Net Present Value (NPV*) of:Technical Maintenance Costs
Administration Costs
Operating Overhead
� NET PROFIT � Aggregate Market Value (NPV)
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Enikia IncorporatedEnikia provides high-speed home networking technology enabling the transmission of communications, information, and entertainment content over the home's powerlines at speeds of 10Mbps and beyond. Enikia's technology uses the AC electrical wires within the home as the backbone for an Information Appliance Network (IANTM) that will allow next-generation appliances, computers, and consumer electronic devices to communicate with each other. Enikia's approach offers a robust solution that will put the power of the Internet and the vision of pervasive computing into the hands of the domestic consumer. Founded in 1997, EnikiaIncorporated is a privately held company headquartered in Piscataway, New Jersey. For more information on Enikia�s technology or to request white paper research visit www.enikia.com or contact the following Enikia representatives:
Enikia Incorporated200 Centennial AvenuePiscataway, NJ 08854Main (732) 980-1200Fax (732) 980-0700
Jeff GrayProduct Manager(732) [email protected]
Ian O�SullivanStrategic Marketing(732) [email protected]
All content is copyright © 1999 Enikia Incorporated