Setting a Context for Networked Appliances Sandy Teger

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About Us • Sandy – Early career in analog and digital programming – Product management for innovative telecomm products – Almost 20 years with AT&T, ending as strategy director for multimedia and video conferencing • Dave – Early career in computer programming, engineering, and systems architecture – Developed many systems for telephony measurement and control – Network architect and founder of Prodigy Services Company – Dir of R&D at Prodigy 1984 -1994 • Together as System Dynamics – Consulting in broadband to service and technology providers – Technology, marketing and business analysis and planning – Projects have included cable modem rollout, VOD, interactive TV, digital cable, HFC and IP telephony – Industry analysts - website, newsletter Copyright © 2001 -2002 Slide 2

Goals (from IWNA 4 Symposium Description) • Network many kinds of devices – “Appliances (lights, toasters, washers and refrigerators)” – Entertainment ((TVs, VCRs/PVRs, radios, cameras, stereos) – Computing/communications (printers, storage, faxes, telephones) • Control and exchange information between them • Enhance them through interactive synergy Copyright © 2001 -2002 Slide 3

Summary of Our Position • Broadband networked PCs are establishing a context for networked appliances • Networked appliances seem more likely to succeed as members of the evolving “broadband home” ecosystem than as members of competing ecosystems or as stand-alone systems – Based on open standards – Accommodates diversity • We suggest that designers of networked appliances – Assume the presence of a broadband link to the outside world (any type) – Assume the presence of one or more home networks (any type, wired or wireless) – Assume the presence of one or more UPn. P-capable “control points” -- built on PC core but might not appear to be “PCs” – Design “devices” around UPn. P and/or SCP Copyright © 2001 -2002 Slide 4

“Broadband Home” • Broadband access and in-home distribution network • Multiple devices connected to in-home network • Many kinds of media: data, voice, audio, video, control • High speed – Millions of bits per second – To the home, in the home and from the home • “Always on” connection – Continuous connection – From the home to the outside world – To the home from the outside - can “see” the home from the outside Copyright © 2001 -2002 Slide 5

The Promise of Broadband Digital radio and TV everywhere in the home Big jukeboxes of music, movies, TV and games Personal voice and video conferencing Share photos and videos with friends and family Work from home as easily as in the office Control VCRs, AC, lights from anywhere Untethered access Copyright © 2001 -2002 Slide 7

Networking Evolution • Started independently based on different endpoint requirements • Except for data communications, most protocols are proprietary • As endpoints become increasingly digital, easier to integrate – Internet radio – CDs and DVDs, cameras and camcorders – Telephones (IP telephony) – Television (IP TV) • Full convergence mostly outside US – Fast. Web in Milan (all-fiber, all-Ethernet, all-IP, all media) • Some home convergence visible (CES last week) – Replay. TV 4000 brings TV into PC world - show PC pictures to larger crowd – Escient “Fireball” connects audio and PC worlds – GE-SMART and Premise Systems building security around UPn. P – AV installers moving quickly to incorporate home networking – Microsoft “Freestyle” brings PC into TV world Copyright © 2001 -2002 Slide 11

Our Observations • Successful networked appliances will be those that leverage the evolving ecosystem of the broadband home • PCs and broadband provide a context for home networking – US PC penetration now >60%, multi-PC homes approaching 50% of PC homes – Multi-PC homes are prime market for broadband for home networking • Microsoft has staked out a position based on UPn. P and SCP • Many vendors now collaborating with Microsoft, while others stake out independent positions • PCs exert a strong gravitational pull on other devices: camcorders, digital cameras, PDAs now in their orbit • Probably won’t be one all-encompassing network, but several interconnected ones • PCs are logical control points for networked appliances • PC core functionality can be embedded in consumer devices Copyright © 2001 -2002 Slide 12

Addressing Needs • Many constituencies – End users – Broadband access providers – Service providers – Vendors: PC, CE, appliances, networking, . . . • Different groups have different needs – May be in conflict Copyright © 2001 -2002 Slide 13

What We Think Users Want • Be able to move from one context to another (e. g. , play audio and video stored on PC on loudspeakers and TVs throughout the house) • Interconnect variety of physical networks • Network access and control from outside the house • Cost that matches willingness to pay • Easy and intuitive user interface • Reliability matched to importance Copyright © 2001 -2002 Slide 14

Challenges for the Networked Appliances Community • Understanding the broader ecosystem that they are in and their role in that ecosystem • Developing solutions within the constraints of the evolving environment • Understanding whose needs they're trying to address and what those needs are • Understanding who pays and how much they're willing to pay for a solution Copyright © 2001 -2002 Slide 15

The “Broadband Home” Initiative • Formed to “speed the reality of the Broadband Home” – Rapid and competitive deployment of broadband to and within the home will enable the creation of new products, services, content and applications. – The "fat pipes”, home infrastructure, client devices and content must work together seamlessly to create compelling value for consumers. • Monthly newsletter: Report on the Broadband Home – Subscribers in more than 90 countries – Free to qualified subscribers • Web site: www. Broadband. Home. Central. com – Report subscriptions and back issues – Other resources and links • Conferences – Partnership with pulver. com – Five held, most recently early October 2001 – Community of more than 600 people, from 25 countries – Spanned all sectors of the industry ecosystem Copyright © 2001 -2002 Slide 16

For More Information: System Dynamics Inc. 18 Beaver Ridge Road, Morris Plains, NJ 07950 -1901 (973) 644 -4739 Fax (973) 538 -6003 dave @ bb-home. com sandy @ bb-home. com www. Broadband. Home. Central. com