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Why your little building may not get smart soon

By | February 24, 2010, 3:00 PM PST

Over at Business Brains, Heather Clancy is touting the new Smarter Buildings initiative of IBM, and the competitive environment it is part of.

Big buildings have complex requirements, she writes. Big companies like IBM and Johnson Controls can build the complex solutions big buildings demand, adding functions like security to energy management through proprietary tools made by IBM’s Tivoli Systems unit.

But what about the mass market? What about your own house, and all the other little pink houses you and I live in?

I recently investigated this and found a brute force approach still works well. I replaced the windows in my 1921 Craftsman bungalow (above). I had insulation blown into the walls, and I used Icynene for the floors and a new addition. I also got a new, more efficient heater.

The house is now warmer than before, and I pay less for heat than I did. The Honeywell thermostats aren’t fancy, but they do let me program-in different temperatures for day and night, weekdays and weekends.

Full home automation, tieing-in the lights and the ceiling fans, security and water into a computer that’s always on, using sensors and software over WiFi, could save me more money.

But it will have to wait. I wrote about the promise of such systems years ago, but that’s a mass market, and mass markets take time to develop.

They may require open source. They will certainly require open standards. But when it comes to smarter homes we are not yet far enough along demand’s s-curve to justify the investment. How many homeowners today recognize the value of such solutions, how much would they pay, and how does that market opportunity compare with the costs of addressing it?

Much better to, as IBM is doing, concentrate on the big building opportunity. Smarter skyscrapers, server farms, warehouses and research facilities can save big bucks on each account, enough to justify the investment in development, installation and (most important) sales and marketing needed to address specific customer needs.

One day, maybe sooner than you think, that WiFi router on your desk will get its own PC, whose operating system can be tied to sensors in your lights, thermostat, walls, and grass to manage your costs when you’re home and even when you’re not.

But not today. There is too much easy money you can make with insulation, with better light bulbs, and with simple rain barrels first. Let the big customers define how the solution will work.

Then open source will drive the price down so it’s available to you.

Give it about five years.

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Dana Blankenhorn

About Dana Blankenhorn

Dana Blankenhorn was a contributing editor for SmartPlanet from 2009 to 2010.

Dana Blankenhorn

Dana Blankenhorn

Contributing Editor, Technology

Dana Blankenhorn has written for the Chicago Tribune, Advertising Age's "NetMarketing" supplement and founded the Interactive Age Daily for CMP Media. He holds degrees from Rice and Northwestern universities. He is based in Atlanta.

Follow him on Twitter.

Dana Blankenhorn

Dana Blankenhorn

Dana Blankenhorn has been a technology reporter since 1982, a business reporter since 1978, and a writer for as long as he can remember. His Schwab IRA has a few tech stocks in it, most notably some Intel and Applied Materials bought over 10 years ago. But the vast majority of his tiny fortune (emphasis on the word tiny) is invested in mutual funds. He presently writes for no one else but ZDNet, SmartPlanet and himself. But if you've got an opportunity let him know. If he takes the gig he"ll first add it to this disclosure page.

He writes for SmartPlanet and is not an employee of CBS.

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RE: Why your little building may not get smart soon
Actually, I think a better device to perform the task of minding your home's smart devices might be one of these in a couple of years:

http://tonido.com/

It draws so little power, and if you allow Google to be your friend, you might find that there are people who are experimenting with this device.
Posted by fatman65535
25th Feb 2010
+1 Vote
+ -
What we really need...
...is a low-voltage standard for home wiring that would utilize a
single high quality regulated power supply to power the dozens of 5 to
12 volt DC devices that have overtaken our 120VAC wall sockets with
their "wall warts". How many megawatts of power is turned into heat by
cheap transformers that aren't even powering anything 98% of the time?

States like California are having a cow over the power consumed by
flat-screen tvs, while ignoring the power wasted by your average wall-
wart, which outnumbers TVs by literally dozens-to-one.
Posted by JohnMcGrew@...
25th Feb 2010
+1 Vote
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RE: Why your little building may not get smart soon
Right now, a virus can only trash my hard disk.

If I install a digital system that wirelessly controls my heating systems, oven, etc., a virus can burn down my house.

Not only do I not want to do that: if you install one next door, I look at my options to sue for increasing the local fire risk.
Posted by tim.poston@...
26th Feb 2010
+1 Vote
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RE: Why your little building may not get smart soon
I think the low voltage standard is a great idea as we all know most appliances step the voltage down anyway. I am thinking that much could be learned and leveraged from the maturing marketplace in the SOA area. I am referring to the ESB appliance products. The average home will evolve overtime to be a more sustainable space. I invested in solar H2O panels over 20years ago and they are still working. The components used are primitive by today's standards, but they still work. The current wind, PV and solar H2O efforts are all implemented as custom one off implementations. If we can leverage the industrial giants to create appliances that the homeowner can 'snap' together like Lego blocks, then we will start to make a real difference. The homeowners cannot afford the implementation costs of the technology that is out there. We need consumer products you can 'buy at Home Depot'. Everyone will take the time to learn what they need to do to save a dollar on heating and cooling.
Posted by dharriso@...
26th Feb 2010
+1 Vote
+ -
Costs will remain high...
...until standardization of components and interfaces takes hold.
Competition will not become effective in making any of this affordable
until it becomes possible to mix-and-match components system-wide.

Can you imagine how expensive and unwieldy simple electrical appliances
would be today if each required a different voltage and power
connection other than the ubiquitous 120VAC outlet we all use?
Posted by JohnMcGrew@...
4th Mar 2010
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