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All other marks contained herein are the property of their respective owners. Information contained herein is not an offer, commitment, representation or warranty by AT&T and is subject to change.

Mention of a specific company or entity is not an endorsement by AT&T.

Growing Apps for the Smart Home

Stephen VincentExecutive Director, Strategy & Product Development, Digital Life

Daniel SimmonsAssociate Director, Connected Home, IHS

Services for

the Connected

Family

The views expressed in this presentation do not necessarily reflect the views of AT&T.


1. Smart Home Background


North America is the Major Market for Smart Home

• Security Providers dominate

• Telcos increasing presence

• Utility companies to account for 30% by 2018

• MSOs slower to market

• MSOs offering basic services

• Volumes remain low

71%

12%

17%

AmericasAsia PacificEMEA

Smart Home Services - 2014 Subscriber Share by Region

Source: IHS © 2014 IHS


0% 5% 10% 15% 20% 25% 30% 35% 40%

Intruder Notification

Hazard Detector Monitor

Climate Control

Windows/Door Lock

Lighting Control

View Energy Consumption

View Camera Feeds

Remote Front Door Lock

Home Appliance Control

Home Entertainment Monitor

Relative Notification

Window Dressing Control

Personal Health Monitor

Elderly Releative Monitor

Pool Pump Monitor

% of Total Respondents

Source: IHS © 2014 IHS

1 Security and Safety

2 Energy Management

3 Lighting Equipment

4 Health Monitoring

5 Appliance Control

56% of North American Consumers Indicate a Desire to Incorporate Some Element of Smart Home

Rank

Interest in subscribing to Smart Home services – North America


Importance to consumers

Willingness to pay monthly fee

Home Security Is the Primary Feature…

…Energy, Lighting and Healthcare Are Secondary Features

Control Appliances

• Home Appliances• Entertainment Monitors• Window Dressings

Security and Safety

• Security Cameras• Locks and Sensors• Motion Sensors• Smoke/CO/Fire Detectors

Health and Life

• Elderly monitoring• Medical Devices• Telehealth• Health gaming

Lighting Equipment

• Lighting Controls• Lighting switches• Lamps• Luminaires

Energy Monitoring

• Thermostats• In-home displays• Smart Plugs• Energy Management

Security and Safety

• Security Cameras• Locks and Sensors• Motion Sensors• Smoke/CO/Fire Detectors

Health and Life

• Elderly monitoring• Medical Devices• Telehealth• Health gaming

Lighting Equipment

• Lighting Controls• Lighting switches• Lamps• Luminaires

Energy Monitoring

• Thermostats• In-home displays• Smart Plugs• Energy Management


Point Security

•Each device has its own internal intelligence and applications

Connected Security

•Traditional burglar alarm systems

•Each device is connected to a central panel with limited automation

Smart Security

•Devices are linked through one central point

•One application can manage all devices

0

0.5

1

1.5

2

2.5

3

3.5

2013 2018

Other Smart Home

Source: IHS

Home Security Deployment Types

Educating end-users remains the key for adoption and expansion

The Security Industry Has Adapted to Meet This Demand in-home

Home Security Revenue ($bn)


2. Market Landscape


• Early Smart Home subscriber uptake has been pushed by high-end specialists such as Lutron, AMX converting subscribers to cloud-based systems

• Other device based-specialists such as Nest, Revolv also grown specialist installed base, but emerged as acquisition targets

• Security and MSOs have shown biggest growth since 2012

0

0.5

1

1.5

2

2.5

3

3.5

Others DeviceMakers

Specialists MSO Security

2012 2013 2014

Source: IHS

US Service-based Uptake Currently Pushed by Security and Specialist Companies

Smart Home Subscribers (m) – by provider type


MSOs Security Providers

Device Manufacturers Software Platforms

Smart Home

But Large Companies Are Entering the Market from Multiple Industries


• Launched HomeKitApple

• Partnerships with LG, Insteon

Microsoft

• Acquired SmartThings• Developing Tizen OS

Samsung

• Acquired Nest Labs• Acquired DropCam• Acquired Revolv

Google

Each of the Big 4 Has Made Strategic Smart Home Moves in 2014


HARDWARE

SERVICES

SOFTWARE

And All Industry Players Are Now Focusing on Software


Two Configurations for Smart Home Are Emerging

• Communication directly to hub for remote-use

• Hub can contain different networking technologies

• Devices controlled through common protocols

• Retail devices used via applications

Hub Solution In-home Device Ecosystem

Central Smart Home Hub


3. Smart Home Use-Casesand Monetization


0.0% 20.0% 40.0% 60.0%

Smartphone

Tablet

Television

Web Portal

Control Panel

In-car

Met

ho

d o

f C

on

tro

l

Consumer preference for Smart Home control

Source: IHS ©2014IHS

Response Share

I would only choose a system

controlled by a single app37%

I would prefer a system controlled

by a single app34%

I’m happy with either 26%

I prefer having separate apps 3%

71% of users would prefer to use a single application for control

65% of Consumers Want to Control the Smart Home Through Portable Devices


This Is Moving the Market from Households Towards Remote Solutions

• Alarm updates sent via text• Remotely lock doors/windows• Remotely view network

camera feed

Security• Behaviour based alerts for

elderly care• Monitoring longer-care

health data

Health

• Remotely monitoring energy at an appliance level

• Remote residential load control

Energy Monitoring

• Remote scheduling of content• Enabling/Activating devices

prior to entering home

Appliances


• There is currently

– A software-based move for Smart Home suppliers

– Consumer demand for mobile device control

– More devices and remote use-cases for Smart Home

• The next key step is applications that allow control of multiple devices simultaneously, and that synchronize those devices 0

2

4

6

8

10

12

14

16

18

2008 2009 2010 2011 2012 2013 2014

USA W. Europe

Mobile application spend per device ($)

Source: IHS

Sp

en

d (

$)

Application Development Is Needed for Next Generation Implementations


• Over 60% of respondents were willing to share their data with 3rd parties based on some form of financial incentive (such as cheaper app)

Big Data and Analytics

• 50% of respondents found the opportunity for automatic ordering of ancillary products as valuable.

E-commerce and UI Advertising

• 80% of consumers surveyed found remote diagnostic solutions to be valuable

Remote Diagnostics

And Consumers Have Demonstrated Interest in Services or Applications Relating to Monetization


The US is 71% of the Smart Home subcriber market

Security is the key use case for Smart Home, then Energy and Lighting

MSOs and Security providers dominate Smart Home; large CE and software companies are now entering market

Software is the new battleground, as service and device vendors require interoperability

Consumers want to use smartphones and tablets for control for all devices

Remote Diagnostics, Big Data and advertising are all monetisation opportunities

Summary


© 2014 IHS. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be

permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of authorship. The information

contained herein is from sources considered reliable but its accuracy and completeness are not warranted, nor are the opinions and analyses which are based upon it, and to the extent permitted

by law, IHS shall not be liable for any errors or omissions or any loss, damage or expense incurred by reliance on information or any statement contained herein. For more information, please

contact IHS at [email protected], +1 800 IHS CARE (from North American locations), or +44 (0) 1344 328 300 (from outside North America). All products, company names or other marks

appearing in this publication are the trademarks and property of IHS or their respective owners. V2.0-29.04.14

Americas: +1.800.IHS.CARE (+1.800.447.273); [email protected]

Europe, Middle East, and Africa: +44.(0).1344.328.300; [email protected]

Asia and the Pacific Rim: +604.291.3600; [email protected]

Contact Us




Digital Life Solution




Digital Life Commercial




Transform the cost of connecting the customer to smart things & places

Break from boundaries with a new set of wireless centric services

Create synergy with AT&T core strengths and adjacencies

Enter the market with an all IP solution that enables us to:

Digital Life Market Entry Strategy




Digital Life Market Entry OfferingsSmart Security with optional add-on’s

SmartSecurity

EnergyPackage

CameraPackage

WaterPackage

DoorPackage

Advanced professionally monitored home security

Live video from inside and outside your home

Lock and unlock deadbolts or check garage door and close it remotely if open

Help detect water leaks before damage occurs

Control small appliances, lighting and HVAC for

convenience




Digital Life’s Market Entry Offerings



SmartSecurity

EnergyPackage

CameraPackage

WaterPackage

DoorPackage




• End to End IP solution, cloud based platform

• Take advantage of AT&T touch points to Customers

• Wirelessly connected and broadband agnostic

• From many to one Interface

• Helps promotes upselling.

Digital Life

72*

i

Transforming the Cost of Connecting in




Extend with Wireless Centric Services

• Remotely manage from virtually anywhere

• Uniform Interface Experience

• Personalized & Custom layouts

• Remote Status & Controls

• Video and Images




Beyond the Home to People & Places with Personal Services– Personal Emergency

– Health and Wellness

– Places: Office, School, etc.

– Automation on the move

Combining data services, context, and end user defined rules

Cloud & 3rd Party Device Interface

Mobile Device Integration & Cloud

Rules

Home Security Services

Video, Voice, and Activity Analytics

(consistent with Privacy Policy)

Digital Life

Au

tom

atio

nSe

curi

ty

Home Anywhere

Synergistic with AT&T Core Strengths




Extend Offerings to People and Their Places

Personal Services Anywhere

• Integrated with Security, Health and Data Partners

Examples of Customer benefits

• Single application for security at home or away

• Allows customer to help family members in an emergency

• Define exactly what you want to happen in an emergency

• Show what’s happening through phone camera




Digital Life’s Personal Services

Personal Security

• Family Connection

• Emergency

• Engage Monitoring

Health and Wellness

• Wellness

• Movement

• Daily Routine

Personal Assistant

• Geo-Fence

• Nofitications

• Controls




Digital Life’s Market Entry Offerings



SmartSecurity

EnergyPackage

CameraPackage

WaterPackage

DoorPackage

Health &Wellness

PersonalSecurity

PersonalAssistant




Personal Security AnywhereSmartphone user experience – send emergency alert




Health and LifeFor Example Digital Life CareHelps caregivers assist their elderly relative to remain in home safely and independently




Your locationHome

Personal Assistant for the Mobile LifeRules that simplify

Comfort profile activated by crossing geo-fence




How to Workwith Us




• Enabling integration with 3rd Party Cloud Services with Service Gateway

• Supporting Applications and Device onboarding with Developer Program

• Potential for e-commerce, UI ads and other monetized applications

Cloud Services LayerCloud Services Layer

Cloud Services Layer

AT&T Developer Program

Harnessing the Creativity of Developers

3rd partyDevices & Services




Next Steps and Conclusion




Potentially new Revenues & Opportunities Combining Customer bases

Uniform User Interface

Ease of Use improves Interactions

Digital Life

i72*

Monetizing with AT&T




Q&A




Thank You

growing apps for the smart home - at&t developer apps for the smart home ... digital life daniel...

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