by Peter L. Mosca
Builders looking for ways to enhance their bottom lines in an increasingly competitive market, might consider what their Realtor counterparts decided long ago: ancillary services.
One such service that appears ripe for the taking is home networking. Consider the results of a new survey from The Broadband Services Forum (BSF), a global business and technology resource for the broadband industry: sixty percent of respondents said they preferred to receive their Internet access, telephone, and video services from the same provider, and, surprisingly, not necessarily at a discount. Nearly 43 percent said they want to have professionals install their services and would be willing to pay a monthly fee for installation and maintenance.
"The overriding theme to responses is that the digital home is a reality. People are making purchasing decisions accordingly and they are not only open to help, they expect it," according to Brett Azuma, president of Ovum-RHK, a global research firm who conducted the survey. "Even the early adopters, those of us who would consider ourselves 'geeks,' are recognizing that in order to make things run very simply for everyone in the household, the installation process needs to be easier. Consumers are looking for support from their service providers in setting up their home networks."
Coming on the heels of the BSF survey results is the announcement by the Wi-Fi Alliance that it has certified the first products implementing its new simplified method for configuring security-enabled networks in the digital home. The new optional certification, called Wi-Fi Protected Setup, is based on a specification developed by Wi-Fi Alliance member companies to provide an industry-standard approach to ease setup of Wi-Fi networks and encourage consumers to always enable security features.
"Wi-Fi has quickly become one of the most pervasive wireless technologies, but consumers have told us they want it to be easier to set up and protect," said Wi-Fi Alliance Managing Director Frank Hanzlik. "Wi-Fi Protected Setup reduces by half the number of user steps required to set up a network, enabling Wi-Fi to be more easily installed across a range of consumer devices."
"Having an industry-standard approach to simplified network setup will be a big help, as new users adopt Wi-Fi and more experienced users want to connect a wider array of devices," said Kurt Scherf, Vice President, Principal Analyst with Parks Associates. "We expect 90 percent of networked homes to include Wi-Fi by 2010, so it's critical that manufacturers make it as easy as possible to configure."
The connected consumer experience was one of many hot topics at the 2007 International CES, where 1.8 million net square feet of exhibit space, over 140,000 attendees from across the globe and 2,700 exhibitors converged on Las Vegas, making it the world's largest consumer technology tradeshow. Prominent home networking players like Dell, CBS, Cisco and Microsoft, to name a few, all showed off their wares. Microsoft Chairman Bill Gates, the opening-day keynoter, had more than 4,000 attendees spellbound as he shared how his company is delivering on the promise of the "Connected Experience." Gates was joined on stage by Ford Motor Company's Mark Fields, to introduce the Microsoft-Ford "Sync" partnership, which promises to take the connected experience to the car. Microsoft auto software will connect devices into the vehicle allowing consumers to sync calls and other content with their car audio system. The fully upgradeable technology will be available in a dozen Ford car models this year.
"As computers and digital media become more and more central to family life, we need better ways to organize, share and protect digital content and information at home," said Gates. "Windows Home Server makes it easy for families to save, protect and access digital memories and experiences so they can focus on using technology to organize their day-to-day lives, explore their interests and share their memories with the people they care about."
Later this year, HP plans to deliver the HP MediaSmart Server, powered by Windows Home Server software. HP and Microsoft will demonstrate their combined hardware and software innovation at CES this week. "HP is working to help people get the most out of their home networks," said Satjiv Chahil, senior vice president of marketing in the Personal Systems Group at HP. "HP and Microsoft have worked closely throughout the respective development cycles of the HP MediaSmart Server and Windows Home Server software to create a simple yet compelling product for the digital home unlike any other on the market today."
Meanwhile, at the same time as CES and on the opposite coast, another real-world example of the home networking explosion: the "Home to the Future Exhibit" sponsored by Time Warner Cable opened its doors. "The Home of the Future" exhibit, a four-story, interactive installation conceived and constructed by world-renowned designer Edwin Schlossberg of ESI Design, is expected to attract nearly one million New Yorkers and tourists.
"The groundbreaking Home to the Future design weaves technology into a cool physical experience that enables individuals to connect with Time Warner's digital products and services in a dynamic, theatrical environment," said Mr. Schlossberg, founder and principal designer of ESI Design, the firm responsible for conceiving and constructing the Time Warner offering. "Home to the Future is one of the many innovative ways that Time Warner Cable and Time Warner are better defining their brands to key audiences, connecting directly with customers and developing solutions that positively impact those customers' lives."
With mega corporations spending an exorbitant amount of time and money on products and services for the connected consumer, an opportunity may exist for savvy builders to add home networking as an ancillary service to help enhance their company bottom lines.
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