CABA Vision

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

CABA Board of Directors

1.1. Martin Cullum – Bell Canada – ChairmanMartin Cullum – Bell Canada – Chairman

2.2. Leo DelZotto – Tridel Corporation – Vice-ChairLeo DelZotto – Tridel Corporation – Vice-Chair

3.3. Roy Kolasa – Honeywell International – Vice-ChairRoy Kolasa – Honeywell International – Vice-Chair

4.4. Robert Becker - Leviton Manufacturing Co., Inc.Robert Becker - Leviton Manufacturing Co., Inc.

5.5. Jonathan Cluts - Microsoft CorporationJonathan Cluts - Microsoft Corporation

6.6. Jeff Cove - Panasonic Corporation of North AmericaJeff Cove - Panasonic Corporation of North America

7.7. Jonathan Cowper - AT&TJonathan Cowper - AT&T

8.8. Dennis (DJ) Crane - Invensys ControlsDennis (DJ) Crane - Invensys Controls

9.9. Carin Falconer - CompUSA, Inc.Carin Falconer - CompUSA, Inc.

10.10. Trevor Foster - Trammell Crow CompanyTrevor Foster - Trammell Crow Company

11.11. Pete Griffin – RadioShackPete Griffin – RadioShack

12. Robert Huggard - Direct Energy12. Robert Huggard - Direct Energy

13. Richard LeBlanc - Siemens Building Technologies, Inc.13. Richard LeBlanc - Siemens Building Technologies, Inc.

14. Steve Nguyen - Echelon Corporation14. Steve Nguyen - Echelon Corporation

15. Carol Priefert, Whirlpool Corporation15. Carol Priefert, Whirlpool Corporation

16. Gene Shedivy – Trane16. Gene Shedivy – Trane

17. Andrew Stroede - Panduit Corp.17. Andrew Stroede - Panduit Corp.

18. Wolfgang Wagener - Cisco Systems, Inc.18. Wolfgang Wagener - Cisco Systems, Inc.

19. Ron Wilson - Vantage/Legrand19. Ron Wilson - Vantage/Legrand

20. Ron Zimmer, Continental Automated Buildings Association (CABA)20. Ron Zimmer, Continental Automated Buildings Association (CABA)

CABA Board of Directors

• CABA’s Research Council• IHA Originally founded as a non-profit in 2000• Comprised of most influential companies in North America• Recognized as the ‘go-to’ organization• IHA was integrated into CABA on July 1, 2006• The Continental Automated Buildings Association (CABA) was

formed in 1988

• As a market accelerating research arm for CABA, through large-scale pilots and smaller, faster projects that address pressing needs, the IHA-RC provides a way for members across industries to work together to develop and test new, innovative home and commercial solutions under real-world conditions, executed by its members.

• The resulting quantitative or qualitative research reports, white papers and executive summaries are made available to Research Council members and at times, the industry at large to support internal business decisions and plans.

CABA Focus

Membership

Full Advisory Board Members:

Affiliate Members:

How We Organize

Ecosystems Approach

• Productivity

• Work Skills

• Communications / Scheduling

• Commuting

• Audio

• Video

• Audio / Video

• Gaming

Career Help me with my career!

EntertainmentEntertain me!

• Health & Fitness

• Household Chores

• Home Systems

• Communications / Scheduling

FamilyHelp me take care of my

family!

Laundry Time: Designed and built the Laundry Time system, which connects a washer and dryer to a home network and delivers messages about the status of the laundry and washer/dryer to home PCs, TVs, and cell phones. After quality and safety testing, the system was approved for installation, and the Internet Home Alliance commissioned Zanthus to conduct a consumer trial of Laundry Time. Objectives of the Laundry Time in-home pilot study were to gauge consumer reaction to the Laundry Time messaging system and its functionality; obtain feedback on the interfaces (phone, PC, TV screen) and system usability aspects; and understand their impressions of the laundry messages that were delivered.

• Whirlpool, Hewlett Packard, Microsoft, Panasonic and Procter & Gamble • Project Completed Fall/06.

Microbusiness & Small Business Managed Services Needs Assessment Study: to gain intelligence that enables members to offer/utilize informed research on the total business communication solutions desired by SMBs (1-100 employees).

• AT&T, Cisco, Costco Wholesale, HP, SupportSoft and Level Platforms• Final report delivered in early February/07

Recently Completed Projects

IPTV2 Interactive: to learn about potential business models for using advanced television programming; explore new advertising potential and interactive capabilities and new message delivery; and create adjunct experiences to live and recorded programming and interactive capabilities.

• AT&T, Cisco, Disney, Campbell Ewald, Digitas & Tandberg TV

• Conduct research late February/07• Final report in late March/07

Senior Housing: to identify digital home solutions for the 50 + market to enhance their lives and encourage them to live more independently.

• Whirlpool, AT&T, Echelon, Microsoft, Masco, NAHB• Conduct research late February/07• Final report April/07

Current Projects in Process

Digital Family/Entertainment Kitchen: to educate the kitchen and bath industry on digital / entertainment consumer usage in the kitchen; and provide an updated view of electronics, appliances and entertainment in the kitchen as it relates to the home.

•Whirlpool, Cisco, Microsoft , Direct Energy, Intel, Bell Canada, HP, NAHB, NKBA, HomeCrest

•Research Completed March/07•Build interactive display for NKBA show, May/07

Current Projects in Process

Subsidized Media / Location Based Advertising Phase 2: to investigate the most promising concepts that emerged from the first study, likely involving subsidized content delivered via cell phone and/or vehicle-based systems such as GPS.

• AT&T, GM/OnStar, Cisco, Disney• Proposed launch in mid to late February/07

State of the Connected Home Market 2007: a collaborative effort between IHA-RC and Information Storage Industry Center (ISIC) at the University of California, San Diego, seeks to generate findings on the state of the market for the three connected home ecosystems of interest (family, career and entertainment); and to provide consumer insights designed to facilitate the generation of new product/service concepts. This program will provide a general understanding of each ecosystem, including emerging trends.

Current Projects in Development

IPTV – Consumer PerspectiveDigital TV Demand Study, Jan. 2006 : IPTV Overview

• Worldwide Subscribers• 2006: 8.0 million• 2010: 50.7 million• (Multimedia Research Group)

• Biggest deployment: Europe• Next biggest: Asia• Trailing: U.S. 2006: 350,000

subscribers (Infonetics Research)

Goal for Consumers - IPTV

Better TV programming choices for less money•A la carte or flat

rate channel selection is desired

53%

48%

45%

14%

0% 20% 40% 60% 80% 100%

Á la carte channel selection

TV Channel Package Preferences(Top-2-Box; Very Desirable)

Tiered channel selection

Flat rate channel selection

Base TV channel package, plus á

la carte

Goal for Consumers

The most desired aspect of IPTV is HD channels, followed by search-engine-like program guide.

56%

48%

35%

30%

27%

21%

21%

0% 20% 40% 60% 80% 100%

Desirability of Video-Related Functionality(Top-2-Box; Very Desirable)

HD channels

Video customization

Search program guide

Parental Controls

Program guide thumbnails

Multiple Picture-in-Picture

Program advisor

Profile of Likely Adopters - IPTV

•College-educated men age 35 and older•Dual-income households with annual

incomes of $75K or more

•More likely than non-adopters to... •Use an Internet-based phone service •Subscribe to a premium satellite TV

service•Have access to PPV programming•Own an HDTV •Own a standalone DVR

Home Networking Study

This research was conducted during Spring 2006, in two

phases:

Phase 2 –Consumer Focus Groups • Decision-makers from multi-

PC broadband households. • DIY network owners.• Advanced network owners.• Integrator “intenders.”

Phase 1 –Channel Interviews • Installers/integrators.• Tech home builders.• PC service providers.• Other sellers of network systems,

components and services.

Home Networking StudyConclusions & Recommendations

Consumers don’t think of networks as “networks,” but rather, as devices that happen to link to the Internet or each other.

HDTV and digital audio are the most desired future applications. Interest in home energy management is growing.

Users want “experts” to help with decision-making and installation.

They also want (but rarely get) personalized help with learning how to use their systems once they are installed.

Customized, intuitive user interfaces help users get the most from their systems.

Consumers are willing to tolerate security risks and relatively slow wireless speeds for the convenience of access to the Internet and to digital entertainment.

Home Networking StudyConclusions & Recommendations

Educate consumers about home networking benefits while addressing concerns about price. Avoid term ‘network,’ focus on solutions instead.

Offer service and support for installation and maintenance. Collaborate with customer, cable and Internet service

providers to minimize installation issues.

Offer solutions with intuitive, customizable user interfaces, and train customers in their use.

Offer modular systems that allow easy add-ons as interest and budget allow.

0% 20% 40% 60% 80% 100%

Digital Youth StudyYouth Influence on Technology Buys

No influence (1) Some influence (2-5)Great influence (6-7)Child made purchase by themselves (8)

QK. How much of the decision to purchase these products was influenced by children aged 8-18 in the family? (Base=both survey respondents and non-respondents who own the item)

Desktop computer

Laptop computer

Color laser printer

All-in-one inkjet printer

Broadband Internet

HDTV TV

DVR Subscription

External hard drive

Standard color inkjet printer

Broadband Internet

Q39. How often is the item used by these family members? Letters denote statistically significant differences among segments.

Most daysSeveral times per week

Rarely/never

67%

30%

10%

16%

18%

11%8%9%

4%2% 2%

85% CD

50% C

80% B

31% CE

16% E

33% DE

19% D

7% A

Frequency of Broadband Use by Family Members

Mother(A)

Parents Children

Father(B)

Age 8-10(C)

Age 11-14(D)

Age 15-18(E)

Once per week to once per month

Youth Technology Interests

35%

30%

15%

10%

64%

0%

20%

27%

10%

41%

18%

65%

58%

62%

81%

0% 20% 40% 60% 80% 100%

Purchased a DVD

On TV, purchased a Video on Demand

program/movie (not free)

Recent Video Related ActivitiesDone in Past 12 Months

On TV, watched a free Video

on Demand program/movie

From the Web, purchased a video and downloaded it

From the Web, downloaded or

streamed a free video

Q45. In the past 12 months, has a child in the household aged 8-18 done any of these? (n=805)

Child did it

Parent did it for childHas not done

Conclusions

• Address Mom the decision-maker for kid-specific items – iPod, cell phone

• Address Mom for standard technology equipment: desktops, printers, broadband

• Focus efforts towards Dad who chooses the latest technology items – laptop, Media Center PC, External hard drive, DVR

Trends in Families with Kids

• PCs proliferating with each-person PC ownership.

• Laptop ownership growing by household. They belong to parents though (Dad).

• Plan for broadband and PC stations in bedrooms.

Conclusions

• Plan for digital music downloading, watching video on the Web, downloading games.

• Continued high interest in console/handheld games (especially boys).

• Cell phones everywhere, carried by youth 11-up – and maybe younger.

Trends in Families with Kids

Change Initiatives of InterestMultiple Response Total

Microbusiness (1-10 Emp)

Small Business(11-100 Emp.)

A B

Desktops and laptops 44% 46% 44%

Web hosting 22% 31% 20%

WiFi netw orking 17% 18% 17%

VoIP 14% 3% 17% A

Local phone service 14% 13% 14%

Long distance phone service 14% 10% 14%

Internet service 13% 13% 13%

Computer netw orking/servers 12% 15% 12%

Netw ork security 12% 5% 13%

Mobile phone service 12% 5% 13%

Printers 10% 5% 11%

Accounting system 9% 3% 11%

Copiers 9% 5% 10%

Data backup 7% 10% 6%

Mobile data (email, Web access, company netw ork access, etc.

6% 8% 6%

CRM (Customer Relationship Management) system

6% 5% 6%

VPN 4% 5% 4%HR system 3% 0% 4%Other 2% 0% 2%Base n=123 n=39 n=84

Microbusiness & Small Business Managed ServicesNeeds Assessment Study: Change Initiatives

Q43. Regardless of current initiatives at your company, which of these is your company most interested in implementing, restructuring, or upgrading? Letters denote statistically significant differences among segments

The product mentioned most often as part of a potential change initiative is the PC. This category is followed in popularity by Web hosting, WiFi networking, VoIP and local & long distance telephone service.

• Small businesses are more likely than their microbusiness counterparts to express an interest in a VoIP-related change initiative.

Change Initiatives

Preferred Approaches to Change Initiatives

Using Internal Resources

Using External Resources

Desktops and LaptopsInstallation/ implementation 34% 33%Daily management/ maintenance 30% 11%Repairs 0% 18%Upgrades 30% 22%None 5% 16%PrintersInstallation/ implementation 35% 55%Daily management/ maintenance 41% 10%Repairs 10% 15%Upgrades 15% 10%None 0% 10%CopiersInstallation/ implementation 34% 44%Daily management/ maintenance 5% 11%Repairs 11% 0%Upgrades 45% 45%None 5% 0%Computer Networking/ServersInstallation/ implementation 16% 23%Daily management/ maintenance 41% 8%Repairs 0% 23%Upgrades 43% 35%None 0% 11%WiFi NetworkingInstallation/ implementation 32% 40%Daily management/ maintenance 42% 14%Repairs 0% 20%Upgrades 18% 12%None 8% 14%Network SecurityInstallation/ implementation 17% 25%Daily management/ maintenance 46% 29%Repairs 4% 8%Upgrades 25% 34%None 8% 4%

Total

n=13*

n=21*

n=55

n=11*

n=10*

n=16*

Preferred Approaches to Change Initiatives (cont.)

Using Internal Resources

Using External Resources

Local Phone ServiceInstallation/ implementation 21% 27%Daily management/ maintenance 14% 14%Repairs 14% 10%Upgrades 17% 24%None 33% 24%Long Distance Phone ServiceInstallation/ implementation 21% 35%Daily management/ maintenance 36% 29%Repairs 7% 7%Upgrades 15% 15%None 21% 15%Mobile Phone ServiceInstallation/ implementation 24% 21%Daily management/ maintenance 25% 17%Repairs 0% 17%Upgrades 25% 37%None 25% 8%VOIPInstallation/ implementation 35% 58%Daily management/ maintenance 31% 28%Repairs 14% 7%Upgrades 7% 7%None 14% 0%Mobile DataInstallation/ implementation 23% 30%Daily management/ maintenance 32% 7%Repairs 0% 16%Upgrades 39% 32%None 7% 16%Internet ServiceInstallation/ implementation 26% 45%Daily management/ maintenance 26% 14%Upgrades 23% 34%None 25% 8%

n=17*

n=16*

n=8*

n=16*

n=15*

Total

n=13*

Most potential change initiatives involve the installation or set-up of IT or telco products; generally, target companies are split on the merits of internal vs. external services.

Change Initiatives

Q46. When you think about these vendors, which ones provide the best service experience? Letters denote statistically significant differences among segments

The top-ranked vendors tend to be original equipment manufacturers (OEMs) or alternately, primary service providers (in the case of telco). Target companies mentioned Dell most often, followed by HP, Verizon, Best Buy/Geek Squad and Staples.

Top-Ranked Vendors(Mulitple Response)

Total(n=561)

Microbusiness (1-10 Emp)

(n=289)

Small Business(11-100 Emp.)

(n=272)

A B

Dell 31% 25% 33% A

Hew lett-Packard 12% 8% 13% A

Verizon 10% 10% 10%

Best Buy/Geek Squad 8% 10% 8%

Staples 7% 10% B 6%

AT&T 5% 4% 6%

Office Depot 5% 7% 4%

Apple Store/Apple Computer 4% 6% 3%

Bell South 3% 3% 4%

Office Max 3% 6% B 2%

Gatew ay 2% 2% 3%

Circuit City 2% 3% 1%

Local Company 2% 1% 3%

Microsoft 2% 2% 2%

Cingular 2% 2% 1%Costco 2% 2% 1%Vonage 1% 1% 1%Cox Communications 1% 1% 1%IBM 1% 1% 1%CompUSA 1% 2% 1%SBC 1% 1% 1%Microcenter 1% 1% 1%Alltel 1% 1% 1%Other 60% 54% 62%

Conclusions & Recommendations

Target small businesses—organizations with ten to 100 employees. For a variety of reasons, small businesses represent a better target market than microbusinesses. Compared to microbusinesses, small businesses tend to have a larger geographic reach, higher revenues and are more likely to own the requisite IT or telco products. Perhaps most importantly, small businesses spend twice or three times as much as microbusinesses on products of interest and accordingly, are more likely to outsource maintenance and/or repair services.

Promote key managed services. The five most popular managed services consist of Web hosting; email/messaging services; servers, routers and LAN installation and maintenance; data backup and other, related services; security services; and storage services. These services are typically beyond the ability of small businesses to manage given that many have few, if any, dedicated IT/telco support personnel.

Establish a local presence and/or partner with an OEM. In the main, target customers prefer to work with local specialty service providers, or alternately, with manufacturer’s directly. Speculatively, these preferences are likely due, in part, to the fact managed services are a nascent market and target customers consider these two outsourcing alternatives the most reliable options. Small businesses are generally risk-averse. This orientation means they tend to gravitate to known quantities, especially in the case of emerging markets. Strong customer service, that is, prompt service combined with demonstrable technical expertise, is of paramount importance to small businesses.

Offer compelling annual contracts. Small businesses have a distinct interest in annual contacts provided there are clear, substantial cost-savings compared to a pay-as-you-go arrangement.

State of the Connected HomeEntertainment: Media Interests at Home

Q42; Letters denote statistically significant differences among markets.

Personal photo (view on

computer or TV)

Movies

Recorded Music

Internet access

Media Entertainment at Home% Very Interested

(Total Online HHs n=618)

TV programming

Home video/movies

2006 Brings:

DVRs in 25% of homes

HDTV prices drop and sales are upNielsen: Anytime Anywhere Media Measurement Google Buys YouTube

Comcast to sell movie downloads to PC/TV/Portable.

State of the Connected HomeEntertainment: Media Interests “On The Go”

Q44; Letters denote statistically significant differences among markets.

Movies

Radio music programmin

g

TV programmi

ng

Recorded music

Audio books

Internet access

Media Entertainment On-the-Go% Very Interested(TOTAL Online HHs; n=618)

2006 Brings:

Slingbox AV & Pro

Slingbox DS?Audible.com

Music Phones

You-Name-It PhonesVideo iPod

Zune

State of the Connected HomeFamily: Interest in Home Automation

QY41

Indoor Lighting

Outdoor Lighting

Heat/ventilation/

air conditioning

Home energy consumption

Home Automation% Very Interested21%

18%

15%

15%

42%

37%

32%

32%

5%

3%

3%

2%

0% 20% 40% 60% 80% 100%

Total Online HHs (n=612)

Primary Market Consumers (n=318)

Mass Market Consumers (n=294)

2006 Brings:

Home energy prices jump

Rising concern about effect of energy consumption on environment

Advances in control technology (centralized, Web, wireless, voice)

Sampling of Past Projects & Pilots•American Digital Dream•Asset Management •Digital Entertainment Migration •Digital Entertainment Needs Assessment (home & in-vehicle)•Digital Youth•Energy Management•Future of Collaborative Work •Health & Fitness Needs Assessment•Health and Wellness Portal•Home Automation Hub•Home Network in a Box •Home Networking Barriers & Opps.•Home Structured Wiring •Internet-Enabled Education

•IPTV Phase I •Laundry Time Needs Assessment•Laundry Time Pilot•Mealtime •Mobile Worker Needs Assessment•Mobile Worker •Online Family Calendar•OnStar at Home•Personal Media Storage•Safe, Secure and Comfortable •Subsidized Media and Location Based Advertising Phase I•TV Advisor •Video Experience POC  

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1173 Cyrville Road, Suite 210 Ottawa, ON K1J 7S6

613.686.1814 888.798.CABA (2222) 613.744.7833

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