2014/02/13 SmartThings Makes the Dumb Home Much Smarter
By Greg Potter
The home automation market has seemingly been on the verge of mass consumer adoption for a little while now, but has yet to take off in any considerable way. There have been many big names bringing their own DIY home automation platforms to the market, including Lowe’s, Staples, and Samsung. One company that has been continuously mentioned with these big names is SmartThings. SmartThings started out as a Kickstarter project in late 2012 and is already one of the big names in the DIY home automation market. Not only do they differentiate themselves from their competition with their software platform, but they also are doing some interesting things with the hardware they sell as well.
Figure 1. SmartThings Hub and Devices
Source: Physical Graph Corporation
There are two SmartThings kits available, starting at $199, with each including a hub/gateway device, no monthly fees, and a slew of home automation hardware with which to get started. Of particular interest with the hardware is the SmartSense Multi Sensor, which includes a contact sensor, an accelerometer, and a temperature sensor within the same housing. Besides the obvious use of the device as a door or window contact sensor, it enables a whole host of interesting new applications for home automation. By putting the device on a garage door, for instance, it can detect whether the garage door is open or closed.
The SmartThings platform itself is pretty slick for such a new product. After connecting the hub to the local network via Ethernet, adding devices to the network is very easy; the process is actually more painless than expected. The software right now consists of an Android and iPhone app. While the app makes provisioning devices very easy, setting up the actions, “apps”, and modes is a bit more confusing. From within the app there is often overlap between the dashboard, actions, “apps”, and modes. This means there is often more than one way to accomplish the same thing from within the app. A lamp attached to a connected outlet switch, for example, can be set to turn on at sunset either through the dashboard, setting up an action, or by using an “app”. It would be nice if this could all be consolidated within the app somehow to avoid confusion.
Once everything is set up to the user’s liking though, the system becomes very hands off. Attaching the SmartSense Multi Sensor to the door for instance allows notices to be sent when someone is knocking or the door opens while no one is home. It’s definitely nice to have a light come on automatically when a user arrives home at night or to get a notice when a leak occurs under the sink. The only time a user would need to do anything with the system configuration is to add new devices or integrate new web services as they are added.
Another interesting aspect of the software is its integration with the IFTTT web service. This allows the system to integrate with web services like Google Docs as well as with devices the main system does not yet support, such as the Withings connected scale and some Belkin WeMo devices. Looking forward, integration with web services will be an important part of many DIY home automation systems. Doing this gives the option for consumers to, for example, store video from a security cam in their DropBox account instead of paying an extra fee for storage from the platform provider. It also allows for integration with weather services to do things like checking to make sure the windows are closed during thunderstorms or particularly strong winds.
Overall the SmartThings platform does a fine job making device provisioning and programming a simple affair for most people. The app needs some fine-tuning, but overall is very easy to use, even if it is confusing at times. It would be nice to have a web interface in order to better visualize the entire system to avoid conflicts when programming device actions. But other than those minor quibbles the entire system performs quite well. With SmartThings beginning to add support for other popular devices like Sonos speakers, Nest smoke detectors, and more, the platform is not staying still, but continually evolving. It will be interesting to see where it goes from here.
MRG Analysis
It is important to note that the DIY home automation market is still in its infancy in terms of software platform development. Higher end systems, like those from Crestron, Control4, and others require custom programming of complicated software in order to get the tight integration between disparate devices seen in those systems. Translating that to a cloud-base system programmed from a tiny smartphone screen is no easy task.
DIY systems occupy an interesting space in the home automation market. They compete directly with systems from service providers like ADT, AT&T, Comcast, and others with large installer networks which charge monthly fees starting at about $10/month. Most DIY systems like Mi Casa Verde, Revolv, and SmartThings are not currently seeking any recurring revenue from value added services like security video storage or SMS/MMS support, so they currently are making their money by selling hardware. This may be problematic in the long term, as the hardware is susceptible to ever shrinking margins as more companies enter the market. SNL Kagan MRG expects most DIY systems to soon include value-added services as a component of their systems.
Another problem is the looming potential of a business model from service providers that subsidizes the hardware expense for consumers into the monthly fee, similar to how people currently “rent” their set-top boxes from their cable or satellite company. Some service providers are currently examining this model, and some may be in the early stages of planning for trials.
The service providers who are also pay-TV providers have a significant advantage because of their control of the set-top box. Integration with A/V systems is a particular pain point for these DIY systems in comparison with the pay-TV provider offerings. It may be prudent for DIY manufacturers to address this via an integrated IR blaster or other means.
One advantage that the DIY systems should maintain over the service providers for some time is the ability to address the apartment and rental markets in a more realistic manner. People who live in these types of dwellings have landlords and owners who do not usually permit major rewiring or cosmetic changes to the buildings. Approximately 35% of all American households are currently renters. Having the ability to at least provide a minimal level of automation for these types of residences could prove to be an advantage for the DIY market.
Source: MRG Analysis
