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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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February 24, 2005

More On Always On (For Real)

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Posted by Dana Blankenhorn

Last month I wrote about Motorola and its ms1000, a box that delivers true Always On capabilities.

I've found a second Always On platform maker, a smaller one this time. It's called Secure Digital Applications, and their box is called EyStar.

The company has just announced the second version of this box, called SmartHome. The press release says this was developed by Innospective Sdn Bhd of Malaysia, a system integrator it describes as a newly-acquired subsidiary. (Very new -- the deal closed February 23.)

While SmartHome appears to be a general purpose gateway, the focus of Secured Digital is obviously security. The featured peripherals are cameras and biometric security devices. In these niches you need monitoring, fast response to alarms, and thus sales channels.

A PDF file describing the system shows it exhibiting most of the features of what I would call a residential Always On system. The central controller is seen controlling media, phones, water and heating systems.

But here is the problem.

The problem is bringing in customers, having a rational plan to get the first, say, 10,000 users, and then bringing in the millions more needed for a mass market operation.

What early adopters want are complete, defined solutions. That's why Secured Digital is emphasizing security applications. The trouble here is you need a channel to really deliver the value, and they don't have one.

My guess is this company is biting off more than it can reasonably chew. What's needed at this point is for someone at, say, Motorola to get a Clue and find companies like Secured Digital it can bring into its channel as OEMs or as solution-specific re-sellers.

At this stage of the market the temptation is going to be very strong to "lock-in" customers by doing something proprietary. That is, create a security box that only does that, or that doesn't follow industry standards in some important way.

Of course, if that happened, and someone was able to sell such boxes, it wouldn't be such a bad thing. At least it would prove there is demand for what Always On can do.

Right now, without proper marketing, without scaled support, and without industry leadership, the demand is unproven.

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