Marketing Counsel IoT Discussion

FIRST ALERT

What is IoT?
Definition: the Internet of things
(IoT) describes the phenomenon of
everyday devices connecting to the
Internet.
Devices are enabled to sense and
transmit information online, offering
consumers greater information and
influence over their environment.
Previously unconnected objects can
now be accessed digitally and
controlled from anywhere on a
variety of devices, including mobile,
tablets and smart watches.

IoT by the Numbers:

IoE- Internet of Everything

The Internet of Everything
comprises all connected
devices

IoT
Connected cars
Wearables
Smart TVs
Tablets
Smartphones
Computers

Consumers & Smart Home

Benefits of Smart Home:
Key purchase drivers are:

Saving time & money:

Price (affordability, price of installation, save money)

Convenience & Ease of Use

Peace of Mind
Personal and family
Security is a key
driver in smart home
adoption.

Sources: Harris Poll, June 2015, 4043

adults, Experian IOT report 2014, CEB
Consumer Trends 2015, CNET Smart
Home Survey 2015

The Connected Home

Consumers are ready for smart home
technology, with guidance from a
trusted source.

Source: iModerate Research 2014

Proprietary and

Smart Device Users

The smart device user has higher education, higher household income
and children.

The Gateway to the Smart Home

Consumers believe the Smart Home is inevitable. Home-energy equipment and safety and security systems,
including devices like connected thermostats and smoke detectors, will become popular first, leading the way to
broader consumer adoption.

Source: BI Intelligence estimates, 2015; Marketplace Insights (I moderate, Oct 2014 300 interviews)

The Gateway to the Smart Home

The thermostat is the gateway into the
smart home.

Most have heard of

smart home products,
even if they havent
purchased yet.

52% of people 25-34

would pay to make their
home smart*

Source: iModerate Research 2014

*Source: GfK Tech 2015

IoT Market Trends

Overall Growth
By 2020, the number of Internet
connected objects will grow to
26B+
Growing interest in 3
categories: Smart Home,
Fitness trackers/smart watch,
Smart TV

IoT Market Trends

Smartphone Users

U.S.
77% of US mobile phone owners
a smartphone
43.4% of all smartphones in use
are from Apple

Source: Nielsen 2015

Globally

Globally, there are more

Android users.
The most popular Android
phone is a Samsung

Requirements for IoT products

Service
Desk

Web
Service

Alerting
Service

Device
Connectivity
Service

Third
Party
Cloud
Cloud Integration
Service

Access Control Layer

Data Validation Layer
Data Model Layer

Basic Reporting
Service

Essential Cloud Requirements

What is HomeKit

Benefits of HomeKit

1. Security
HomeKit technology provides advanced security with end-to-end encryption
and authentication between a HomeKit-enabled accessory and your iPhone,
iPad, or iPod touch.
HomeKit security communications are encrypted between a HomeKit-enabled
accessory and your iPhone, iPad, or iPod touch.
2. Siri voice control
Control your HomeKit-enabled accessories with your voice using Siri directly
from your iPhone, iPad, or iPod touch.
Onelink devices respond to Siri
Use Siri on your iPhone, iPad, or iPod touch to control your Onelink device
with just your voice.
3. Ease of use
You can set up Onelink device directly from your iPhone, iPad, or iPod touch
in a few easy steps.
After installing your Onelink device, configure it with just a few simple steps
using your iPhone, iPad, or iPod touch.
3. Apple TV
A Licensed Product customer who owns an Apple TV (3rd generation or later)
with Apple TV software 7.0 or later can control HomeKit-enabled accessories
away from home using an iPhone, iPad, or iPod touch with iOS 8.1 or later.

About Googles Platform

Brillo is an operating system that users will interact with to control their devices, as well
as a communication layer called Weave. The announcement was made May 28, 2015 at
the I/O Google Developers Conference. Still many uncertainties with the system.
Brillo will work with Wifi, Bluetooth and Nest Labs products. Developer preview Q3 2015,
Weave Q4.

What is Weave?

Weave is a cross platform common language that will let Brillo devices,
phones, and internet all talk to one another. Android devices will auto
detect Brillo and Weave Devices.

Technology Overview - Bluetooth and

Wifi
Bluetooth is wireless connectivity
uses close proximity.
Bluetooth Low Energy (BLE) is a
lower power version of Bluetooth
wireless technology. Great for
devices needing to run off a
battery for long periods.
Major
Differences

Wifi is wireless networking

technology that uses radio waves
to provide wireless high speed
internet and network connections.
Bluetoo
th

Wifi

Cost

Low

High

Bandwidth

Low

High

Security

Less
secure

More secure
(password)

Range

5-30M

Up to 95M

Power
consumption

Low

High

Example of Wifi and BLE in one

product
First Alerts Combo alarm
uses both BLE and Wifi.
The alarm is battery
powered and uses BLE for
everyday IoT connection.
BLE is optimal to ensure
battery life.
The Wifi is activated only
when the alarm is alerting
the consumer of a smoke
or CO event. When there
is no event, the Wifi is
inactivate and doesnt
consume any battery
power.

For everyday use,

the battery
powered alarm
uses BLE.

Smoke
detected, wifi
activated to
alert
consumer.

Smoke
detecte
d in
bedroo
m.

Technology Overview - Cloud

The Cloud is storage and remote
access over the internet. When
something is on the cloud, it
means it is stored on servers on
the internet instead of on your
computer or phone. You can
access anywhere from any
computer that has internet.
The cloud allows for easy sharing
of files and accessibility.
Many apps currently run in the
cloud including Netflix,
Instagram, Groupon and Yelp.

Technology Overview - App

An app refers to software used on a

smartphone or mobile device that
allows you to perform specific tasks.
Most apps store large amounts of data
on the cloud.
A web app is stored on a remote
server and delivered over the internet
through browser interface.
A mobile app is specifically for use on
a small wireless device such as a
smartphone or tablet.

Requirements for IoT products

Service
Desk

Web
Service

Alerting
Service

Device
Connectivity
Service

Third
Party
Cloud
Cloud Integration
Service

Access Control Layer

Data Validation Layer
Data Model Layer

Basic Reporting
Service

What is ITTT?

Individual devices that

have connectivity are
within Internet of
Things.
Connecting IoT
devices and having
them work together in
different situations is a
foundation called If
This Then That (ITTT).

How it works:
ITTT is made up of an IF
Recipe-trigger, and a DO
Recipe- action
Recipes are connections between
the products and apps.
Connected products apps can be
made to work with other
connected products in the
different created scenes the user
wants produce. This can be done
through Homekit (iOS) and
Google Weave (Android).

What is ITTT?

I get home from work. I go into

each individual app on my phone
to control each device. Unlock
door, then turn on the lights,
then change the temperature.

Siri, Im homethe door unlocks, the

lights go on and the temperature is set.
These devices were programmed with
different scenes to work together in the
Homekit environment. (Android users would

What ITTT means for future IoT products

Dont think of your potential IoT products as a single device to an app. Think of your IoT product as
part of a connected homewhere the devices communicate together using the Homekit platform.

Siri,
Im
awake

Coffeemaker turns on, lights turn on, Crock Pot sets to low, iron heats up and
thermostat sets temperature

Cost elements
Product development costs can vary. According to Comentum, the average project cost can
range from $15,000 to $500,000.
Apps built by agencies cost anywhere between $150K-$450K
Apps built in house cost an average of $270K per app and take 7 months to 1+ year to
create*
Cloud costs are varied based on storage and service needs. The costs can range from less
than $0.10/month to run all the way to $1843/month. **
*Formotus
**Cloudpro.co.uk