I’d like to shine a different view into this conversation as I don’t think that it has been truly explored by anyone.
If you look at Samsung’s business problem from a different side, there is another very specific reason they purchased SmartThings and are now pushing Tizen.
And that is that they want a pervasive home automation ecosystem. Samsung has made a deliberate effort to shift all their consumer electronics to a single OS. Looking at it from a pure business perspective, that is to get synergies and save costs. Having one development team responsible for building out the entire eco-system, and having a KNOWN, DEFINED and CONTROLLED endpoint device subset gives them incredible power to fully integrate.
Look at the control interface mess we have now.
- TV/DVD/BlueRay… IR wireless, WiFi (upnp, tcp, udp…1000’s others), proprietary os’s, limited communications, communicate only when on… not a great interface to run the system from.
- Appliances (Fridge, dishwashers, stoves, microwaves, laundry),… android (maybe), maybe a screen, probably not (LG uses sound to communicate!), no interface to report with, no central control capability
- Phone (Android), great wireless, great interface, portable… not always home, not pervasive, no IR… blah blah blah…
Now you buy something like SmartThings. They are hot, the have a very young, but strong team, a VERY customizable interface and the device sits… centrally in the home. It brings EVERYTHING else together.
Samsung could have tried to go with a home router (DLink style), but the average consumer doesn’t replace those, (heck they don’t even buy them with most carriers) and don’t care about any form of integration except IP. Worst, everyone complains if it can’t run DD-WRT or something else that is open on them.
But the HA crowd, we know after 30 years of trying that OPEN PROTOCOLS and INTEGRATION are key. So leverage the open standards (z-wave, zigbee, IP) where you can. Choose a “standard” protocol for ALL your NEW devices (z-wave… please say z-wave!).
For most of us, nothing will change except we will invest in another controller (2.0 or another brand). For the average individual however, having a 2.0 controller tossed in for free when you buy 5 new Samsung appliances… well that’s a deal. Having that same controller report a water leak (fridge, dishwasher, laundry), tell me when my freezer or fridge is out of the defined temperature zones, integrate into or replace my $30-80/month alarm system monitoring, automatically report what’s wrong when it breaks. Now a I have very STRONG reason to buy that 5-10 new appliances as a unit. I also see VALUE in that premium SMS, “I’ve fallen but can’t get up” alert button for my parents etc.
And look at it this way. A call center for alarm monitoring… is the same call center for helpdesk… is the same call center for plumber referrals… That is how you make money on these things. People will pay for that alarm call center, but what they are really paying for is the other call center people.
Analytics, big data, dashboards… all nice but we are at least 10 years from the average consumer having any reason to care. Hell, just because I can track my temperature variations, power consumption etc… hasn’t given me a single reason to change what I do… so where’s the value?
With this announcement, and what has been confirmed in Hub 2.0, Samsung now can take all their other portfolio of hardware and have a pervasive IoT eco-system, without the need to worry about IP hacks or any of the other issues associated with IP natively in all their devices, or even having to be tied to an android eco-system that is being pushed to upgrade faster and faster by Google.
At a foundational business level… it makes sense, and that is why it is being done.
Truly folks, this is not about SmartThings as a company, or a product. But how Samsung can leverage SmartThing’s technical architecture (cloud, hardware and product integration expertise) to sell more what they actually make money on… consumer electronics.