Kai Hackbarth, Evangelist & Co-Chair OSGi Residential Expert Group

How to turn your smart home developments into a profitable

and sustainable business

Kai HackbarthEvangelist & Co-Chair OSGi Residential Expert Group

Smart Home is now on Everybody's Agenda

• Smart'homes'are'also'becoming'mainstream,'because'of'the'growing'interest'in'IoT'

• Added'value'is'recognized'by'consumers'and'its'now'affordable'• Smart'Home'related'revenues'are'rising'according'to'Berg'Insight'

• 17.4'Mio.'installed'systems'by'2017'in'Europe'• 2.6'Billion'€'expected'revenue'for'Europe'in'2017''

• BITKOM'expects'1'million'smart'homes'in'Germany'unOl'2020

Corporates Are Investing Big

Every Week New Crowdfunded Projects

Many New VC Backed Startups

but most of it is…

Proprietary Technology• The'use'of'standards'is'mostly'limited'to'

protocols'(ZRWave,'ZigBee,'etc.)'• Expandability'is'restricted'to'one'vendor'• Limited'upgrade'capabiliOes'• No'tooling

• Telcos'and'cablecos'don’t'play'a'role'in'many'of'these'developments'

• No'interfaces'available'

Limited Functionality

• Mostly'for'a'single'purpose'or'with'a'very'limited'set'of'funcOonaliOes'

• Control'mostly'limited'to'Smartphone'or'Tablet'UI

Considerations Before You Get Started

• There'will'be'no'single'killer'applicaOon'• Sustainable'business'can'only'be'generated'with'a'developer'

ecosystem'• Apple'&'Google'have'proven'this'

• Since'there'is'a'jungle'of'standards'&'technologies'making'the'right'choices'is'crucial'• Follow'requirements'defined'in'HGI'Open'Plaaorm'2.0'• Take'advantage'of'the'OSGi'Device'AbstracOon'Layer'

• What'funcOonaliOes'should'be'in'cloud'and'/'or'in'the'home'gateway'• Smart'Home'is'just'the'beginning

Our Open Standards Approach' Besides'our'activities'in'the'OSGi'Alliance,'ProSyst'is'actively'''''

involved'in'other'open'standards'organizations'and'supports'even'additional'industry'standards'in'products:

HGI Open Platform 2.0• HGI'was'founded'by'major'broadband'service'providers'and'equipment'vendors'• HGI'Open'Plaaorm'2.0'defines'requirements'for'a'soeware'execuOon'

environment'for'home'gateways'• Generic'requirements'

• Reliability'and'Security'• Lifecycle'Management'• InstallaOon,'UninstallaOon,'Update,'Start,'Stop'• Remote'Management,…'

• OSGi'specific'requirements'• JRE'requirements'• which'OSGi'services'have'to'be'used'and'their'configuraOons

OSGi Device Abstraction Layer• API'applicable'for'all'relevant'device'protocols'

• General'device'data'model'• Device'OperaOons'

• Access'control'based'on'user'and'applicaOon'permissions'• FineRgrained'security'control'• Full'flexibility'of'OSGi'security'model'

• NoOficaOon'mechanism'is'for'• Device'state'monitoring'• Device'data'model'monitoring'• Device'operaOons'monitoring

DAL solves common developer problems

• Developers'don’t'have'to'deal'with'protocol'specific'behavior'• No'need'for'applicaOon'workarounds'• Avoiding''custom'device'abstracOon'• Avoiding'uncontrolled'dependencies

Reference Architecture of an Open Platform

Business Model EnablingService'Provider'

Carrier' defining'ISP' Business'Vendor' Models'Utility

OSGi'

Gateway

LAN,'WAN'/'VPN'or'Internet

'''''''ProSyst'OSGi'Middleware/Stack

EnOcean IP'Cams

Home'Device'Manager'(Devices,'Zones)

Home'Automation'

'Manager'(Scenes,'Rules,'Conditions)

APIs'(Java'&'JSONRRPC'/'local'and'remote)

Security

DLNA'/'UPnP

'''''ProSyst'

mPower'Remote'Manager

Connected'

Devices

Managed'

Devices

outgoing''''secure'connection

Local'Logic'&'(Web)'Apps

TR.069,'OMA.DM,'…

3rd'party'

App'Store3rd'party'

Web'Portal

Data'Collection'Admin'(Event'History)

Remote'Management SW+FW'Update

ZigBee ZHWave

DECT'ULE wMBus UPnP BT'LE

Potential Sources of Income

Customers:'• Base'System'• AddiOonal'equipment'• Apps'&'Services'

• Charging'once'per'download'''• Charging'a'monthly'fee''• Charging'per'usage'• CombinaOon'of'all'the'above'

Developers:'• SDK'• Developer'Programs''

• Entrance'Fee'• Yearly'Fees'

• CerOficaOon'• Revenue'share'for'Apps'

&'Services'

Open Source vs. Commercial Software

• Open'Source'SoluOon'don’t'require'a'license'fee'but'is'not'totally'free'of'costs'

• Missing'funcOonaliOes'need'to'be'implemented'• Usually'not'fully'opOmized'to'be'used'in'embedded'systems'• Liability,'other'potenOal'legal'issues'in'using'Open'Source'remain'• Maintenance'responsibility'• Limited'control'over'direcOon'of'development'• The'investment'may'in'the'be'higher'than'licensing'readyRtoRuse'

commercial'soeware

Proprietary Solutions are likely to end up here

Example QIVICON• QIVICON'is'a'B2B'product'offering'from'Deutsche'Telekom'• QIVICON'Partners'receive'

• QIVICON'Home'Gateway'• SDK'• Portal'incl.'Shop'• Backend'• OperaOon'&'Support'

• Partnership'is'growing'• EnBW,'eQR3,'Miele,'Samsung,'Belkin,'bitronhome,'digitalSTROM,'DRLink,'4Noks,'herweck,'PAX,'Tunstall,'

Vapenfall'

• Deutsche'Telekom'wants'to'offer'QIVICON'also'in'other'countries

QIVICON based products

Example digital life

• AT&T'Digital'Life℠''is'a'commercially'available''home'security'and'home'automation'service'offering'in'the'US'

• Smart'Security'Package'plus'optional'add'ons'Water'detection,''Door'package,'Energy'package,''and'Camera'Package'are'available'

• ProSyst'mBS'Smart'Home'is'used'in'the'home'gateway'device'

• More'information'at:https://myRdigitallife.att.com/learn/'

AT&T'Digital'Life℠

Smart Home DIY Retail Channel

•  A#solu(on#for#end#users#available#via#16,000#electronic#retail#stores:#a#solu(on#for#greater#convenience#and#security#as#well#as#efficient#energy#savings#at#home.#devolo#Home#Control#is#intui(vely#operated#and#can#be#retrofiDed#or#expanded#at#any#(me#in#exis(ng#households.#

•  Devolo#Home#Control#is#based#on#ProSyst#mBS#OSGi#technology#and#mPRM.#