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May 29, 2019 by Pam Ferguson

Leading Analyst Report Urges Service Providers to Reconsider Their Role in the Smart Home

Some service providers have lost their appetite for developing smart home services for their subscribers, mainly because previous attempts have failed to gain market traction.

This is one of the findings presented in a new white paper from Parks Associates* stressing that smart home use cases (and their value propositions) are still evolving, despite the expectation that sales of connected consumer devices will exceed 520 million units by 2022.

The report encourages service providers to take another look at the wide variety of use cases for smart home services that leverage their existing assets, noting that the smart home is a long-term investment. In fact, the report predicts that innovative service providers that successfully identify new services will:

  • develop new revenue streams
  • differentiate themselves from competitors
  • avoid commoditization
  • fortify the value of their brand

At the same time, the report acknowledges services providers’ concerns about investing in proprietary technology platforms that might become obsolete, or that suffer from rigid inflexibility, noting that “Some service providers have picked a partner for a specific use case and then had to completely retool to take their business in another direction.”

An open, cloud-based platform drives better smart home strategies

The report highlights the importance of being able to pivot quickly towards new opportunities. For example, a service provider might want to launch a network security solution, with the ability to offer a completely different solution (such as parental controls) a few weeks later.

The good news is that cloud-based platforms and hardware-agnostic technologies are now available, providing service providers with the freedom to let strategy drive their business.

According to the report, it is critical that a future-flexible platform does 5 key things:

  1. Provide software abstraction - an abstracted layer of software and service applications that can run on a wide variety of popular hardware brands.
  2. Improve time to market - with ready-built application integration tools using a containerized architecture.
  3. Centralized management – of all applications simultaneously, even when applications are installed independently.
  4. Support analytics at scale - Leverage a microservices data aggregation platform that scales for millions of devices and captures activities across the customer base in order to apply artificial intelligence for advanced marketing segmentation, maintenance, and predictive modeling.
  5. Integrate and orchestrate third-party devices - and services through standardized application programming interfaces (APIs).

The report also underlines the importance of having access to a value chain of partners that can be integrated into an orchestrated ecosystem that delivers a unified user experience.

Turn smart home complexity into revenue

The Calix Smart Home and Business solution enables service providers to unlock the full potential of the smart home. Based upon the Calix Experience Operating System (EXOS), service providers can quickly generate new revenue, deploying new services that leverage a range of pre-integrated smart home solutions and thousands of smart devices. EXOS is the world’s only hardware-independent, modular, standards-based, always-on smart home operating system, allowing service providers to change and adapt their services quickly, embracing new technologies and meeting the evolving needs of their subscribers.

Are you ready to re-invent ‘smart home’ for your subscribers?

Read the full report by downloading your free copy of “Open for Business: Future Flexibility for Smart Home Services” today. And stay tuned for other posts in this series.

*Report commissioned by Calix