How to Build Out a Tech Eco-System

IoT

Dan CreggCTO

Insteon

How to Build Out a Tech

Eco-System

• Our Eco-System

• The Tech

• Background (How we got here)

• Leasons learned

Dan CreggCTO

Insteon

How to Build Out a Tech

Eco-System

• Our Eco-System

• The Tech

• Background (How we got here)

• Leasons learned

Dan CreggCTO

Insteon

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Our Eco-System = The “IoT”

• Internet of Things

• Connected Home

• Home Automation

In general, giving people a way to feel

connected to their home

Letting their home become more of a

“significant other” who stays in contact and

understands them

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Our Eco-System = The “IoT”• As of January 2014: (Highlights of the Pew Internet Project’s research related to mobile technology)

– 90% of American adults have a cell phone

– 58% of American adults have a smartphone

– 32% of American adults own an e-reader

– 42% of American adults own a tablet computer

• 58% of people in the US own smartphones and over half of those users regularly engage with downloaded apps

(Highlights of the Pew Internet Project’s research related to mobile technology)

• The Connected Home Market is estimated to hit $10 billion dollars in 2014, and growing to $44 billion by 2017, according

to wireless industry group GSMA.

• There are over 97 million single-family homes in the US (2010 US census)

– It’s estimate that only 3% of those homes are equipped with connected home technology

• Increasing competition with less reliable technology

– Cable/Telco companies looking for a new revenue source with product offerings that leverage existing broadband installations

– Home security companies are trying to stem a declining customer footprint by offering new products to their monthly

subscribers

– Many new products are hitting the market, however due to volatility and reliability of these solutions they are short lived.

• Key challenges to consumer adoption include:

– Making the technology and devices seem easy to use

– Increasing consumer awareness of the connected home category

50 billion devices by 2020 Over 50 billion devices by 2020 Up to $6.2 trillion by 2025 $7.3 trillion by 2017

Lots of IoT opportunities

confidential

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How to Build Out a Tech

Eco-System

• Our Eco-System

• The Tech

• Background (How we got here)

• Leasons learned

Dan CreggCTO

Insteon

Confidential

Enabling the Internet of Everything

Smartlabs Inc. 16542 Millikan Avenue Irvine, CA 92606

Technology (future business)

• Wireless networking technology that “breaks-the-mold”

• Only RF + powerline network

• Simulcast and Statelink features solve huge problems

• Thousands of developer partners

Product (current business)

• 200+ products

• Dozens of apps

• 6 continents

• Cloud infrastructure & services

• Millions of devices installed

• Walmart, Best Buy, Home Depot + many more

Sister Division of Smarthome.com (past business)

• Online vendor with 10,000+ SKUs

• 1,000 Vendors, 100,000+ customer insights

What is Insteon?

confidential

INSTEON

INSTEON is a dual-mesh (RF and powerline) home

automation / IoT networking technology.

INSTEON is the1.world’s most reliable wireless IoT technology

2.world’s most scalable wireless IoT technology

3.world’s most affordable wireless IoT technology

4.world’s simplest wireless IoT technology

5.world’s best selling IoT technology at retail, with millions of

devices in use and thousands of points of sale

Confidential

What is INSTEON?

IoT (narrow band) Mesh Network Dual-Mesh (RF & Powerline)*

on the order of 100 times more reliable than single-mesh generates a much larger range (especially in structures with concrete

and/or metal)

Simulcasted signals* “infinitely” scalable least expensive due to extremely small silicon footprint

Statelink messaging* guaranteed forward & backward compatibility no “popcorn” event

Peer-to-peer* simple setup, no network management required no single point of failure

Unique addresses, error prevention & correction, etc.

* Unique to INSTEON

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Confidential

Unique Differentiators

Dual-mesh

RF plus powerline - greatest reach and reliability

Statelink

Guaranteed forward and backwards compatible

No languages to create or manage

Simulcast

No routing tables – simple and super lightweight silicon

demands

No limits to scalability – Others max out at 256 (commonly

sooner)

Cost

Lowest hardware demands - pricing advantage

Growth Prospects - Billions of potential nodes (hundreds possible per home + BAS)

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Confidential

Dual-mesh

RF

915 MHz ISM band US, FSK @ 4.5kbps

Un-crowded narrow band for low cost and higher signal

penetration than higher bands

Powerline

132k ‘C-Band’

BPSK - 2.8kbps

7 v p-p typical injection onto A/C line @ zero crossing -876us

Very high performance in low signal to noise conditions

Used together = world’s most reliable

*(mean activations between errors is 1 in 10,000 versus 1 in 100 for single-mesh: based on 99% signal reliability on uncorrelated networks)

100 x more reliable*And, the signal gets further

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Confidential

Simulcast

Every device simultaneously repeats messages

heard (a fixed number of times)

No limit to the number of devices repeating a message

Creates a “Choir”

No single point of failure (no healing required)

Very FAST

No routing

Very Scalable

No routing

Very Cheap

No routing = lightweight silicon requirements

W a n t t o G e t t h e M e s s a g e A c r o s s ?

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Confidential

Statelink

Never obsolete

Controllers use generic message to cause

responders to ‘restore’ state

Very fast scene response

Single generic message from a Controller can

cause virtually unlimited number (and types)

of responders to restore their memorized

states – all simultaneously

Simple memorize & restore methodology

During initial setup, each device stores it’s

current ‘state’

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Confidential

the best…

Range RF plus powerline = greatest range

Reliability Dual Mesh – 100 times fewer errors

Instant scenes

Scalability Simulcast – Only technology that covers a

whole home

Compatibility Statelink – Forward and backwards

compatibility

Over 200 products in the Insteon ecosystem

Product Offering Over 200 products

Retail Distribution 2,500+ retailer locations

Global Coverage

confidential

Technology

Advantages

How to Build Out a Tech

Eco-System

• Our Eco-System

• The Tech

• Background (How we got here)

• Leasons learned

Dan CreggCTO

Insteon

18

• 1992 – Company founded

• 1995 – Smarthome.com launched

• 1997 – Proprietary products launched

• 2000 – INSTEON R&D begins

• 2005 – First INSTEON products ship

• 2005 – 2010 Build out product line to over 100 products

• 2011 – Commercial automation products and mobile apps ship

• 2012 – World’s first networked light bulb

• 2012 – 75 new products hit the market, as well as International product families

• 2013 – Big Box Retailers Launched, Many New Software Enhancements

• 2014 – Microsoft Strategic relationship built/ Windows Applications 8.0/8.1

• 2015 – Expand partnerships and ties to other platforms: Apple, Nest, Logitech, Alljoyn, more today

INSTEON milestones

Insteon – we got your home covered

confidential

Thermostats Switches, Keypads & Outlets

Cloud Services Apps (iOS, Android, Windows) Hubs & Bridges Developer Kits Chips

Bulbs Plug-in Modules IP Cameras

Insteon – we got your home covered

confidential

Florescent Dimmer Inline Modules Micro-Inline Modules Din Rail Modules

Bulbs Plug-in Modules AV (Infrared & Serial)

Wireless Switch Mini Remotes Trim Plates Color-change Etching Services

Insteon – we got your home covered

confidential

First Alert Smoke Venstar Thermostats Broan / NuTone Fans

Meter Readers Somfy Window Coverings Garage Door Openers

Irrigation Control Hubs Big Ass Fans

Thousands of Hardware and Software Developers

Insteon apps - we got your device covered

confidential

Insteon dev. team + thousands of developer partners

28 apps 11 apps 4 apps 3 apps dozens dozens 1 app

Insteon – we got your country covered

Distributor

+ On-boarding Distributor

Dealer

Physical Compatibility

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confidentialconfidential

Insteon –retail distribution

confidential

Insteon – embedding within ecosystems

confidential

Apple / HomeKit:

• Keynote participant

• Website reference

• Launch partner

Google / Nest

• Soon to launch “Works with Nest.”

• Nest will announce at CES

Microsoft

• Retail stores & B2B sales

• Only public facing IoT partner

• Cortana launch partner

• Embedded with IoT strategy development

How to Build Out a Tech

Eco-System

• Our Eco-System

• The Tech

• Background (How we got here)

• Leasons learned

Dan CreggCTO

Insteon

- Build an understanding of your customers

- Live the life – “Do you use your own product /

service”?

- Sell them something, customers vote with their

wallets

- Listen to the feedback, track sales and returns

Insteon – Lessons

- Don’t be afraid to make changes, be nimble

- Iterate, sell some more, change and iterate

again

- Be fast, customers won’t wait around

Insteon – Lessons

- Use off-the-shelf, commoditized components and standards

were possible

- But don’t be afraid to recognize when a solution does not exist

- Innovate and invent were you need to

Insteon – Lessons

- Simple is hard

Insteon – Lessons

http://www.ebay.com/itm/ALBERT-EINSTEIN-SIMPLE-QUOTE-GLOSSY-POSTER-PICTURE-PHOTO-e-mc-german-physics-192-/261320113573

Range

Reliability

Scalability

Compatibility

200 Products – 3,000 Retail Outlets – 100 Countries

16542 Millikan Avenue Irvine, CA 92606 – www.insteon.com