The security market is awash in stories about how big companies sought to step in and transform the market, from GE to Cisco to several cable or telecom companies. There is generally a lot of hand-wringing over “what it means” when you hear about a big company entering the market. So far the impact of bigger players on our status quo as a fragmented market has been minimal, but it still causes waves when a big company sets its sights on security. Such is the case with Apple, the latest big consumer company setting its sights on our market.
Apple recently announced that its new iOS 8 software development kit (SDK) includes HomeKit, a standardised network protocol to communicate with and control connected devices in a user’s home. The idea is that you can tell Siri you’re going to bed and she will automatically close the garage door, dim the lights, set the thermostat (and presumably arm the security system).
Home automation has recently been a growing subset of the home security market, with security companies adding new home automation capabilities to their core systems based on the premise that a security system is the logical point of convergence for automation in the home. Could Siri disrupt the entire home automation market or threaten the security industry’s stake in it? Or will Apple’s software merely provide new opportunities for product enhancements? Only time will tell. (Some security professionals prone to panic might find solace in Apple’s unsuccessful attempt to redefine the home television market – ever heard of Apple TV?)
NEST programmable thermostats |
But Apple isn’t the only big consumer brand nibbling around the edges of home automation. When Google bought NEST for $3.2 billion earlier this week, many people in the security market took note. NEST programmable thermostats and smoke detectors are installed in 1.1 million households, which potentially provide Google its own gateway into the home automation business.
Conventional wisdom says that a rising tide lifts all boats. Might the endorsement of players like Apple and Google lift the fortunes of everyone in the security arena by expanding the market and raising awareness of the growing home automation sector? You could certainly argue the reverse: I have heard the failure of near field communication (NFC) to gain traction attributed to Apple not embracing the capability on its devices.
With new big players in town, how will the role of home security companies change? Could Google or Apple or another huge player take over the market? These aren’t just interesting topics for cocktail hour; they could impact our future as an industry. It will be interesting to watch.
UPDATE: More shock waves impacting the home automation market now with the acquisition of Web-enabled home video camera manufacturer Dropcam by Nest Labs, which is owned by Google. Here's a comment from Matt Rogers' blog (he is Nest's founder and head of engineering):
"Eventually, the plan is for us to work together to reinvent products that will help shape the future of the conscious home and bring our shared vision to more and more people around the world. For now though, not much will change. Dropcam products will still be sold online and in stores. And Dropcam customers will still continue to use their Dropcam accounts."
More fuel for the fiery transformation of the home automation sector. Is the security market ready for “the conscious home?”
