2009 Intelligent Living Space Experts Meeting May 21, 2009 Taipai, Taiwan Ron Zimmer, President & CEO Continental Automated Buildings Association (CABA) CABA’s Connected Home Council Strategy

CABA Vision “The knowledge-based forum for industry leaders who advance the use of technology and integrated systems in the global home and building industry.”

CABA Board of Directors 1.Martin Cullum – Bell Canada - Chairman 2.Leo DelZotto – Tridel Corporation – Vice-Chair 3.Roy Kolasa – Honeywell International – Vice-Chair 4.Dr. Morad Atif – National Research Council/Institute for Research in Construction 5.Brian Burch – Hewlett-Packard Company 6.Jonathan Cluts – Microsoft Corporation 7.Lindsay Ellis – Alcatel-Lucent 8.Robert Frazier – IBM 9.Tony Wan – Cisco Systems, Inc. 10.Brad Haeberle – Siemens Building Technologies, Inc.

CABA Board of Directors 11.David Dollihite – Direct Energy LP 12.Dr. Jack Merrow, Leviton Manufacturing Co., Inc. 13.Dr. Satyen Mukherjee – Philips 14.Carol Priefert – Whirlpool Corporation 15.Tom Semler – Hydro One Networks Inc. 16.Gene Shedivy – Trane 17.Steve Teubner – BAE Systems 18.Andrew Wale – Vantage/Legard 19.Ron Zimmer – Continental Automated Buildings Association (CABA)

CABA Connected Home Council (CHC) OBJECTIVE -- The CHC works on residential and MDU (multiple dwelling unit) issues and opportunities that allow CABA to achieve its vision, mission and objectives. CHARTER -- The CHC will more specifically review opportunities, strategize, take action and monitor initiatives that relate to integrated systems and home automation in the residential and MDU sectors. COST – Nothing (except be a CABA member in good standing).

If I buy or rent it, I want to watch it anywhere Home Theater Content Aggregator Media Center Home Projection Gaming Portables Media Extenders Sling Box Mobile Car A/V Slide Courtesy of Entertainment Technology USC

9/21/20157 Remote Home TV USB Storage HSS VoIP Thin Set-top Touch Panels DMA IP Camera TV Connected TV Offsite Storage Uber Set-top Modem How do we connect all of this stuff?

CHC Endorses NextGen Home

The Connected Home Research Council provides opportunities for research project collaboration conceived and executed by Research Council members. The resulting research reports, white papers and executive summaries are made available to Research Council members.

Advisory Board Members (6): Affiliate Members (16): Connected Home Research Council (CH-RC) Members

1. Leading edge collaborative research. 2. Executive Summaries in CABA’s Research Library – FREE TO MEMBERS. 3. Complete research for sale in the CABA eStore. 4. Research shared with industry: - CABA magazine and publications - CABA web site: - CH-RC Digital Home Forumswww.caba.org and other events CABA’s CH-RC provides:

1. Home Networking Study 2. Digital Youth Study 3. Laundry Time 4. Digital Kitchen 5. Senior Living 6. Interactive Television & Advertising Study (IPTV) 7. Microbusiness & Small Business Managed 8. Services Needs Assessment Study 9. Going Green – Energy Efficiency 10. State of the Connected Home Market Study Past successful CH-RC projects:

Current CH-RC Projects 1.Connected Home User Interface 2.Video Convergence 3.It’s Just Magic! 4.“End to End” Digital Lifestyle 5.Connected Home Roadmap 6.Independent Living In An Aging Population

Connected home = “green” home? How can “connectedness” lower my energy consumption rather than increase it?

Executive Summary Methodology Background and Objectives CABA's Connected Home Alliance Research Council (CH-RC) commissioned Zanthus, a high-tech research firm, to conduct the new pulse of its State of the Connected Home Market study for –Overall goal: To update the Council’s understanding of the U.S. market and to establish a baseline understanding of the Canadian. –This research program is designed to investigate consumer attitudes and behaviors with regard to the connected home within three distinct functional areas, or ‘ecosystems’: entertainment, family and career. –Equal numbers of ‘primary’ (early adopter) and ‘mass market’ (later adopter) consumers were interviewed to allow comparisons between the groups. The final dataset was weighted to reflect the relative incidence of these groups. –Previous waves of the study were conducted in 2003 and Due to significant differences in goals and design from the 2003 study, comparisons in this report are only made with 2005 data.

Methodology Both the 2005 and 2008 studies involved conducting three (3) Web surveys among U.S. online households, one for each ecosystem (entertainment, family and career). In 2008, the survey was fielded in both the U.S. and Canada (in English only), and a subset of respondents from each ecosystem survey was invited to take an optional mini- survey. For both the 2005 and 2008 studies, sample size is approximately 600 for each ecosystem in the U.S. and 200 in Canada. In the 2005 study, approximately 600 complete surveys in each ecosystem were collected for the U.S. only. Executive Summary Methodology Continued

Executive Summary Home Network Description A home network allows computers and other electronic devices in the home to communicate with one another so they can share content and/or an Internet connection. The following are home networks: A connection between a router and one or more other devices such as computers, storage devices, webcams and/or game consoles, or A connection between two or more computers. The following are NOT home networks: A single computer hooked up to the Internet A connection between a single computer and a printer, even if the devices are in separate rooms, or A connection between a computer and portable devices like portable media players/iPods and digital cameras

Connected Home Market More Are Open to Connected Home Idea, Especially Computer Workers The number of U.S. online households that consider the connected home* idea ‘definitely appealing’ is essentially unchanged since 2005—about one-fourth. However, more are neutral about the idea now, and fewer consider it unappealing than three years ago. U.S. 23% Canada 14% Those most interested in the connected home idea: Lead adopters (primary market consumers). Those in multi-person households. African-Americans, Asians and Hispanics. U.S.: Western and southern states. Canada: British Columbia. [‘ Connected home’ is defined as a home where independent systems are linked and centrally controlled.] This shift is driven by a change among mass market (later adopter) consumers. In 2005, about one-third were negative about the connected home; now, only one-fourth are. Put another way: nearly three-fourths of mass market consumers are now open to the idea, compared to two-thirds in U.S. consumers are a bit more positive than their Canadian counterparts about the connected home.

29% of U.S. target worker households say the connected home concept is ‘very appealing,’ compared to 23% of all U.S. online households. U.S. target workers are now more interested in the connected home than they were in 2005, when 23% found it ‘very appealing.’ Among Canadians, 20% of target workers say the connected home is very appealing, compared to 14% of the population of online households in general. Target worker households—those with a family member who uses a computer for work at least 15% of the time—are more interested in the connected home concept than online households in general. Connected Home Market More Are Open to Connected Home Idea, Especially Computer Workers

Connected Home Market Consumer Segments Offer Insight on Promoting Connected Home Technology Households in the U.S. and Canada can be profitably divided into six distinct segments based on their interest in and engagement with connected home technology. The first two segments represent the ‘beachhead’ groups necessary to generate positive word-of-mouth. Once these segments are saturated, companies will find it easier to convert mass market consumers, who presently lack context for appreciating the connected home concept. Seeing lead consumers with meaningful solutions will prompt them to take a greater interest in the market and broaden adoption of key products. Active Connected Seekers are the most interested and engaged of all segments, and include significant number of minorities, especially Hispanics (8% in U.S., 4% in Canada). Aspiring Home Connectors have a high interest in the connected home, particularly family and career applications. However, they are less engaged with digital entertainment media than other segments (5% in U.S., 4% in Canada).

“Involved Followers” have only moderate interest in the connected home, but are active users of home technology and home networks. They are more interested in entertainment than family or career applications (24% in the U.S., 19% in Canada). “Satisficers” are engaged with technology, but don’t necessarily strive for more (19% in the U.S., 28% in Canada). “Trend Trailers” are less engaged and interested in connected home technology (27% in the U.S., 28% in Canada). “Entrenched Resistors” are the least interested in and engaged with technology (17% in both the U.S. and Canada). USA Consumer Household Segments Canada Involved Followers Active Connected Seekers Satisficers Trend Trailers Aspiring Home Connectors Entrenched Resistors Connected Home Market Consumer Segments Offer Insight on Promoting Connected Home Technology

Executive Summary Connected Home Concept Description The features of the connected home exist today; they are not dreams of tomorrow. This home is connected in the sense that normally independent systems are linked into one centrally controlled system, which is called a home network. For example, your PC, television, lighting and heating controls, and home security system can all be linked to a home network. You can control various parts of your home through your home PC or a variety of mobile devices, including your TV remote control. For example, you could turn up the heat using your TV remote control, see your phone’s caller ID on your TV screen, or turn on the lights inside your home from another location, via the Internet. When you’re away from home, you can control your home network using any device with Internet access, like a cell phone, or by going to a special, secure Web site. Right now, manufacturers and service providers are developing products and services for the connected home. In general, these are products and services designed to provide entertainment programming, automate common household tasks, and let people communicate with each other more easily. The connected home will be reliable, easy to control, and easy to upgrade. You will not have to re-wire or spend an extravagant amount of money to start setting up a connected home.

Connected Home Market Home Networks Mainstream; Interest Strongest in Linking Entertainment, Home Control Q8B, Q26, Q9A. Letters denote statistically significant differences among segments. Two or more computers Home Network* Broadband Internet Canada 2008 (C) Connected Home Foundational Technology Ownership U.S (B) n=649 n=620 n=628 n=1,834 n=1,824 n=1,768 U.S (A) n=1,761 n=1,849 n=1,829 All three connected home foundational technologies—multiple computers, home networks and broadband Internet—are mainstream and growing. About nine-tenths have broadband. More than one-half have two or more computers. About two-fifths have a home network.* Consumer interest in Wi-Fi drove increases in home networking among both primary and mass market consumers since Many who have (or aspire to have) home computer networks want to connect them with entertainment and/or home control systems. Nearly one-half of online households have a computer in a bedroom. Other popular locations are the den/office and living room.

Thank You! QUESTIONS ??