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IBM Sales & Distribution           Global Electronics Industry
White Paper




The IBM vision of a smarter home
enabled by cloud technology
2   The IBM vision of a smarter home enabled by cloud technology




    Goodbye “smart.” hello “smarter.”                                     Many consumers are already using cloud computing and
    A “smarter home” is on the horizon. The increasing number of          may not realize it. Anyone who has a Web-based e-mail
    Web-enabled home appliances and devices, coupled with the             account from Google or Yahoo!—or who has ever used
    widespread availability of broadband communications, are              YouTube, Facebook or Twitter—has already interacted
    finally enabling new “intelligent” products and services that         with data stored in the cloud. With cloud computing,
    reach far beyond traditional markets.                                 consumers do not need to have knowledge of, expertise in,
                                                                          or control over the technology infrastructure in the cloud
    Today’s Internet of people is evolving into an “Internet of           that supports their consumer electronics.
    things,” as soon there will be more than one trillion connected
    devices. By 2013, 1.2 billion connected consumer electronics          A common services delivery platform based on industry
    devices are expected in the more than 800 million homes with          standards supports cooperative interconnection and cre-
    broadband connections.                                                ation of new services. Implementation inside the cloud
                                                                          delivers quick development of services at lower cost, with
    Compared with previous attempts to enable the “smart home,”           shorter time to market, facilitating rapid experimentation
    where the intelligence was based on centralized control               and improvement. The emergence of cloud computing,
    through a home server or gateway, the intelligence and with it        Web services and service-oriented architecture (SOA),
    the complexity in the new smarter home is moved out from the          together with new standards, is the key that will open up
    home onto the network, or more precisely the Internet cloud.          the field for the new smarter home services.


    This new paradigm exposes opportunities for innovative ser-           Digital convergence is enabling the
    vices which build on the computational power and scalability of       smarter home.
    the cloud, along with the collective consumer knowledge. Data         The digital revolution has dramatically increased the
    which is aggregated then stored within the cloud can provide          function and reduced the cost of consumer devices. This
    dramatic new insights about consumer needs and behavior.              has led to an explosion of new smart devices in the home,
    Ultimately, this paradigm facilitates a host of possibilities, from   from digital TVs and game systems to environmental
    radically improving the performance of current devices and            controls, smart appliances, and safety and monitoring
    services, to delivering benefits which have not yet even been         devices, along with lifestyle, wellness and medical devices.
    considered. The current smarter home services areas showing
    early adoption are:                                                   The impending almost-universal broadband connectivity
                                                                          for homes represents another major driver for the smarter
      • Entertainment and convenience                                     home. While the physical networks may differ, from DSL
      • Energy management                                                 and cable modems to fiber-to-the-home and 3G/4G wire-
      • Safety and security                                               less networks, the common use of the Internet Protocol
      • Health and wellness                                               creates universal connectivity. The typical flat rate fee
                                                                          structure for broadband connectivity reduces the mar-
                                                                          ginal network cost of additional services to effectively
                                                                          zero. Compared to earlier times, when any device had to
                                                                          connect to a network service using a chargeable phone
                                                                          call, this is a dramatic cost reduction.
3   The IBM vision of a smarter home enabled by cloud technology




Open source platforms (and open business models such as            The smarter home is instrumented,
application stores) are unleashing the creativity of an increas-   interconnected and intelligent.
ingly large number of application writers, as witnessed by the     What makes a home smarter, rather than just smart? IBM® has
more than 100,000 applications that are available for the          defined three characteristics that distinguish this new genera-
Apple iPhone within a year of system launch.                       tion of household devices.

As the Internet is evolving, consumers of various ages and back-   • Instrumented is the ability to sense and monitor changing
grounds are becoming more receptive to connected products            conditions. Instrumented devices provide increasingly
and experiences. At the same time, consumers are demanding           detailed information and control about their own
more quality and intuitive interfaces with these experiences,        functioning and also provide information about the
offering service providers an opportunity to differentiate with      environment in which they operate. For instance, a clothes
new services and ease of use.                                        washer can report information about the state of its
                                                                     components to support preventive maintenance for avoiding
Providers are jumping into this market, looking to increase          unforeseen outages. At the same time, it can sense its wash
their revenue through new services and to lower their costs.         load to optimize its operation; it can send usage information
Cable and telecommunications companies are looking to pro-           to the manufacturer for data driven product innovation and
vide entertainment services. Consumer electronics                    it can be switched on by external signals when the energy
manufacturers are looking to connect their devices directly to       cost is lowest.
the Internet for new content. Power companies are introducing      • Interconnected is the ability to communicate and interact,
“smart meters” to reduce their cost and consumers’ energy use.       with people, systems and other objects. Interconnected
An entirely new class of connected devices has emerged in the        devices make possible remote access to information about
area of wellness and convenience, attempting to improve              a device and control of the device. This enables services
people’s lifestyles.                                                 throughout the Internet, removing complexity from the
                                                                     home and lowering costs for the service providers. At the
In the global economy, intense competitive pressure is driving       same time, it supports the aggregation of information and
more efficient markets. To stay ahead, businesses must build         control of devices throughout the network. This means that
new models to be the first to create and seize unrealized oppor-     consumers can get a consistent view of their devices, both
tunities for developing innovative products that enable              from home and from mobile devices. For service providers,
differentiating services. Breakthrough technologies such as          it provides an aggregate view of customer characteristics
cloud computing and Web 2.0 are empowering businesses,               according to criteria such as geographic location,
driving the convergence of business and IT. Through this             consumption patterns, or types of service.
process, the distances and costs between companies and their       • Intelligent is the ability to make decisions based on data,
customers are becoming significantly reduced.                        leading to better outcomes. Intelligent devices support
                                                                     the optimization of their use, both for the individual
                                                                     consumer and for the service provider. For instance, a
                                                                     utility can send signals to consumers’ homes to manage
                                                                     discretionary energy use in order to reduce peak loads. By
                                                                     coordinating this process throughout an entire service area,
                                                                     the utility can optimize the peak reduction, while saving the
                                                                     consumers money on their bill.
4   The IBM vision of a smarter home enabled by cloud technology




Figure 1 illustrates how the home can be connected to a cloud.          The adoption of smarter home devices requires that they also
Instrumented devices in the home are connected to the cloud,            be intuitive. Consumers will adopt new services only if they are
enabling data to be aggregated and new intelligence to be created.      easy to use and fit smoothly into their lifestyles. The learning
                                                                        curve for new services must be low to non existent, and the ben-
                                                                        efits of the services must be immediately apparent. Experience
                                                                        with services on the Web has shown that even minor changes in
                                                                        usability can have tremendous impact on consumer acceptance.

                                                                        Many current devices and appliances are well positioned to
                                                                        become smarter devices. Many appliances now enjoy an inter-
                                                                        nal CPU, sensors and instrumentation, and I/O ports. Yet the
                                                                        majority of these are accessed by technicians only during man-
                                                                        ufacturing or emergency repair field service. Adding the
                                                                        capabilities for a more permanent connection to the Internet is
                                                                        relatively easy and low in cost.
Figure 1: Cloud computing provides an intelligent platform connecting
interoperating services with a common view of services in a home and    Smarter home capabilities
in the aggregate.                                                       The emerging capabilities of the smarter home enable services
                                                                        throughout many consumer industries, making consumers’
                                                                        lives easier, healthier, more fun and more productive. The four
                                                                        service areas already demonstrating early adoption are:

                                                                        • Entertainment and convenience: The richness of the Internet
                                                                          is now available through the TV, which fundamentally
                                                                          shifts the definition of ‘content.’ Now consumer
                                                                          electronics companies can create open platforms for new
                                                                          lines of flat panel televisions that feature a portal which
                                                                          personalizes entertainment content from numerous
                                                                          broadcasters and movie studios. Over time, such devices
                                                                          might be subsidized by better targeted advertising, with
                                                                          a potential to share profits with other TV manufacturers
                                                                          with similar capabilities. This can lead to a win–win–win
                                                                          situation: reducing the number of commercials viewers
                                                                          have to watch, enabling broadcasters and advertisers to
                                                                          deliver more personalized entertainment options through
                                                                          targeted advertisements and giving TV manufacturers an
                                                                          opportunity to differentiate their products.
5   The IBM vision of a smarter home enabled by cloud technology




• Energy management: Future demands on the electrical              Figure 2 provides some examples of how common household
  grid will encourage minute by minute home appliance              devices can become smarter.
  management to prioritize energy services while delivering
  automatic savings to owners. Automatically synchronizing
  lighting, home appliances, climate control sensors and other      Household device     How smarter?
  home electronics minimizes energy use based on changing
                                                                    Refrigerator         Adjusts cooling temperature based on volume of
  exterior conditions and usage patterns in the home. Smarter                            items it contains; cooperates with washer and
  homes enhance consumers’ access to information, which                                  dryer and with HVAC cycles.
  enables better decision making, while raising overall             Thermostat /         Changes target temperature based on current and
  societal benefit.                                                 HVAC                 coming weather conditions, sensors watching
                                                                                         household activity; takes into account cost of
• Safety and security: Many insurers now offer discounts
                                                                                         power and load conditions as communicated by
  for existing centralized alarm services using sensors and                              utility.
  cameras. The ability to deploy home sensors that can              Television           Recommends television shows based on past
  instantly notify the homeowner, selected neighbors, or the                             selections of each viewer, advertisements reach
  police and fire departments can enhance home security and                              more intended audiences; uses Web browser
                                                                                         and dynamic interface to other connected
  provide peace of mind. These services can also empower                                 devices like thermostat or environmental
  family members to remotely check on the safety of children                             controls for lighting and distributed audio.
  and the well-being of elders.                                     Washer and dryer     Determines water temperature and wash/rinse/
• Health and wellness: A medical device maker designed                                   dry time needed based on load volume, dirt level
  embedded software that helps healthcare providers                                      and time-of-day energy rates; cooperates with
                                                                                         other power demanding devices.
  continuously monitor patients with implanted or other
                                                                    Pool equipment       Determines contamination levels and automati-
  at-home medical devices without having hospitalization
                                                                                         cally dispenses correct amount of chemicals;
  or office visits. Smarter home scales and sensors monitor                              adapts operation of circulation pump and chlorine
  fitness, well-being and consistent activities. These home                              feed to time of day and weather conditions.
  health electronic devices can collect evaluative information
  about current health condition for disease prevention and        Figure 2: Examples of smarter household devices
  overall wellness. Such devices may even be reimbursed in
  part or in full by insurance companies, government,
  or employers.
6   The IBM vision of a smarter home enabled by cloud technology




Smarter home services in the network cloud                         Figure 3 shows some of the average yearly costs of everyday
Over the years, there have been attempts to create a smart         appliances, but certainly not all. Typically air conditioning,
home by bringing servers or data appliances into the home that     heating and hot water heaters use even more energy than pool
consolidate the home information and control. However, the         pumps and refrigerators, so it’s obvious that making these
need to manage, even if done remotely, very complex IT             devices smart has benefits. Having better information about
devices in the home has prevented this approach from being         where energy is being used can help consumers save money and
widely adopted.                                                    energy, all while reducing their carbon footprint. This is an
                                                                   affordable way to increase consumer comfort without increased
A more effective approach is to connect the devices throughout     complexity for the consumer.
the Internet to services in the network cloud, which enables
centralized services. Many of the devices in the home today can
already connect individually to services in the Internet, even
though each may use different application protocols and APIs.
Putting the intelligence into services in the network cloud
reduces the complexity of managing software in the home
devices and simplifies the interoperability of devices. This is
accomplished by bridging the services throughout the network
through Web services interfaces, translating the different
device protocols to a common platform, then connecting the
devices through the network cloud. This is a far less expensive
and more flexible way to aggregate services and compose new
services from existing devices than past attempts. It also
removes a major barrier to adoption, which has been the signif-
icant complexity in the home as a result of all the connected
                                                                   US DOE 2009
devices. Now the consumer moves from being the IT manager
of their home to a consumer of services through their              Figure 3 – Cost per year of average household electrical appliances
connected devices.
                                                                   ”Smarter” everything causes shifts in the
A local services “clone” or services cache in the home can safe-   value chain.
guard the availability of the services against network problems    Digital convergence—that is, the transformation of content
and guarantee continuous high quality, all with simple control     into digital content—and the near universal availability of IP
by the consumer.                                                   connectivity have changed the consumer electronics landscape
                                                                   forever.
With new cloud services, new possibilities exist for an appli-
ance as simple as a pool pump or refrigerator when it has the      Earlier, products were isolated, and there was little contact with
ability to sense and respond to changing conditions, to com-       consumers after the sale. Entertainment content was broadcast,
municate with other systems and to inform decision-making.         without direct connection between the content provider and
                                                                   the consumer. The ability to associate services with a device was
                                                                   very limited.
7   The IBM vision of a smarter home enabled by cloud technology




Now, devices are network connected, creating the possibility         Economic drivers for “smarter” devices
of one-on-one relationships between the consumers, service           and services
providers and device manufacturers. This new capability of           Insurers can lower the risk and offer lower, more competitive
one-on-one, two-way interactions combined with the vast              premiums to their customers. Broadcasters and other content
expansion of device functions is leading to an explosion of ser-     owners can expand their offerings by making back catalog (so-
vices and devices. Using independent appliance monitors and          called “long-tail”) content available. They can further increase
control equipment enables the integration of more traditional        their revenue through improved business intelligence and tar-
appliances that don’t have the “smarts” built in.                    geted advertising. Hospitals and private practitioners can
                                                                     extend health care services to patients’ homes, lowering the
A particularly important development is the transition of            health care cost and freeing up facilities. Energy utilities can
devices from single function platforms, such as music players or     help their consumers manage their energy use, lowering overall
mobile phones, to application platforms which enable a vast          consumption and peak loads with the potential to not have to
array of new services.                                               construct new power plants or import electricity.

As a consequence of this development, the growth of the service      For device manufacturers, the incremental cost to connect
portion of the value chain is far outpacing the growth of the        devices that already have substantial intelligence in them is eas-
device sector. At the same time, traditional consumer electronic     ily offset by a number of benefits. Fewer truck rolls to
devices such as televisions are under intense manufacturing          consumers’ homes reduce the repair and warranty costs and
costs and retail margin pressure.                                    increase the consumer satisfaction for both the manufacturer
                                                                     and the retailer. The potential for product registration
Forming an open ecosystem that supports applications and ser-        increases exponentially. Consumers are willing to pay a little
vices from a wide variety of providers opens up the possibility of   extra for the assurance that their appliance will not fail at a time
a broad range of business models with varying degrees of con-        when it is most inconvenient. Other benefits such as access to
trol of the ecosystem.                                               more information, advice and the ability to control devices
                                                                     remotely are additional incentives.
These approaches to benefiting from the expansion of services
value require a services business model, which is typically unfa-    Economic indicators from throughout the target markets show
miliar to electronics manufacturers—and consequently, they           that the opportunities for smarter home devices and services
are shy to adopt. These manufacturers have the option to add         will experience explosive growth in the coming years. Forrester
features to their products that make them friendly for services      Research reports that a third of the U.S. households surveyed
providers, such as software and content security for licensed        are interested in being able to remotely monitor conditions in
content, secure device authentication, support for an applica-       the home, and forecasts that U.S. home broadband will grow to
tion platform, and differentiators such as additional storage or     75% penetration by 2012.
advanced user interaction devices (e.g., remote controls). These
features can be monetized by larger sales due to the increased
attractiveness of the devices and the associated services, or
through licensing of features to content service providers.
8   The IBM vision of a smarter home enabled by cloud technology




Meanwhile, Parks Associates have estimated that by 2012:             Using Webcams and remotely controlled locks for the front
                                                                     door and the garage door, it is possible to always ensure the
• Entertainment: 450 million worldwide connected                     security of a home. The Shaspa smart building automation plug
  entertainment devices in the living room                           makes possible the network integration of devices that were not
• Energy management: 45 million U.S. households with smart           originally designed for remote monitoring and operation.
  meters that measure household energy usage and send this
  information back to the energy grid
• Health and wellness: Nearly $2.5 billion of revenue in the U.S.
  for health and fitness monitoring devices and services
                                                                     “Envisioneering surveyed consumers
                                                                     throughout America’s largest coastal cities,
Polycom is looking to create a high-definition media confer-         where 78% now enjoy WiFi broadband at
encing system for consumers, with high quality audio and video
                                                                     home. Most consumers enjoy six or more
from every room of the house. Connecting media devices
through the Internet, this creates an innovative communica-          networked consumer electronics products
tion experience from a simple phone call to a shared media           (primarily PCs, video and handheld games,
presence in the living room. Managing this innovative service        cell phones, media players, Webcams and
in the cloud assures a high-quality experience for consumers
with minimum complexity.
                                                                     Internet phones) and a growing assortment
                                                                     of fitness, wellness and remote healthcare
General Electric and Whirlpool have both publicly announced          monitoring devices.”
that soon their products will be built to connect to the intelli-    – Richard Doherty, Research Director, The Envisioneering Group
gent grid. Emerson Technology’s smart thermostats will enable
consumers to have more control over their home energy usage
than ever before. Residents will be able to control the air condi-
tioning/heat intensity and temperature of their home remotely,
through computers and mobile phones, resulting in significant
savings on heating and cooling bills.

Vignet is providing mobile and fixed broadband infrastructure
for healthcare and life sciences. Their “person-centered”
Connected Health Services platform lets users capture,
aggregate, analyze and share data with their mobile devices
and PCs. The Vignet platform enables connecting of devices
throughout the entire healthcare continuum and provides cloud
based solutions for wellness, fitness, nutrition, chronic disease
management, home care, body-area networks, remote patient
monitoring and independent living. Vignet, like IBM, is part
of the Continua Health Alliance, whose goal it is to enable end-
to-end interoperability for connected heath solutions. By
providing a framework of standards-based interfaces, Continua
is spurring innovation while removing barriers to global imple-
mentation and adoption.
9   The IBM vision of a smarter home enabled by cloud technology




The smarter home is enabled in the cloud.                             The benefits of a cloud-enabled smarter home are many and
Cloud computing technology creates an ideal environment for           distinct for each participant, including:
an intelligent, highly efficient and highly flexible utility
approach to services in the network. At the hardware infra-           • Consumer benefits: Consumers will find these new devices
structure level, it enables the flexible, dynamic and low-touch         and services far easier to use, as the complexity and
provisioning of resources to applications. The creation of vir-         management has been moved into the cloud; no additional
tual service images supports the easy life cycle management and         IT device is needed in the home with the attendant
deployment of services. Finally, standardized Web services              management headaches. The open nature of the ecosystem
interfaces to the services enable the dynamic composition of            increases the choice—and reach—of devices, services and
individual services into flexible solutions in a plug-and-play          service providers. Connecting disparate devices in the
mode.                                                                   network is simply a matter of software adapters at the service
                                                                        provider site. This interconnection and interoperation can
The cloud for managing the consumer services can extend                 give home owners a common view and provide mobile access
directly into the home. A services “clone” can directly interact        to monitor their devices. The robustness and extensibility
with services in the network, in effect becoming part of the            of networked services, along with the ability to link both
cloud. This clone can function as a limited local replica of some       existing and newly optimized devices, provide reliable
services, delivering control even in the case of a network failure.     performance and superior consumer customization whose
It can also ease the connection of home devices to the network          value will increase through services innovation.
by translating protocols and acting as traffic concentrator. The      • Consumer electronics manufacturer benefits: The development
ability to adapt any type of network and application protocols          of industry standards for services and the ability by service
increases the choice of devices and services for consumers.             providers to create innovative service models increases the
                                                                        market size for devices while reducing the business risk for
Cloud technology, whether in the form of “software as a                 device manufacturers. Previous “walled gardens” yield to
service”(SaaS) or “infrastructure as a service” (IaaS), improves        an open ecosystem. This reduces the risk of being locked
service management by speeding up the time to market and                out from markets through exclusive contracts by some
lowering the management cost for service management,                    device manufacturers. The cloud is the platform. The
resource management and life cycle management. It reduces               manufacturing company can concentrate on the function
the resources cost by enabling more efficient allocation of frac-       and the service and can be confident that its devices can
tional hardware resources to virtual service images.                    “talk” to the cloud over any infrastructure.

                                                                         Implementing the bulk of the intelligence in software
The open platform environment permits devices to be con-
                                                                         over the network minimizes the technical limitations
nected, enabling interoperation and remote access of services.
                                                                         placed on devices during design and manufacture. Open
This will create an ecosystem based on industry standards,
                                                                         standards and the ability to take advantage of existing
driven by industry leaders. Using service-oriented architec-
                                                                         service components in the network reduce the development
tures , services with different protocols and data types can be
                                                                         cost and the time to market. Monitoring devices remotely
easily connected. The application services can also take advan-
                                                                         to detect impending failures, and to understand usage
tage of common infrastructure services, such as customer
                                                                         patterns, reduces warranty cost and increases business
relationship management (CRM) or billing.
                                                                         intelligence for data driven product innovation.
10   The IBM vision of a smarter home enabled by cloud technology




• Service provider benefits: Many of the benefits for device        The SDP provides an SOA-based framework to link modular
  manufacturers also apply to service providers, such               component services, including third-party services, to manage
  as a shorter time to market and the open ecosystem.               the different types of service exposure and to use common back
  The shared, low-cost infrastructure of a cloud solution           end components such as business support systems (BSS) and
  reduces the capital expenditures for bringing a solution          operational support systems (OSS). In addition, the SDP pro-
  to market. A common view by the service provider of               vides service life cycle management from the creation of new
  the devices yields a vast amount of data for new business         services, to bringing them online in a controlled way for
  intelligence. In addition to lower CRM cost, these insights       selected customer sets, to actual operation, bundling with other
  can yield substantial improvements in services, or create         services and finally termination of services to make way for
  the opportunity for entirely new services. With a cloud           alternatives. The IBM SDP has been deployed successfully in
  solution, a service provider can focus on its particular value    many telecommunications environments.
  add and obtain additional business and operational support
  services from utilities in the network.                           Important benefits of the SDP are:

The Service Delivery Platform Makes it                              • Managing the complexity of service deployments means
Possible.                                                             that third party service providers can focus on their specific
A service delivery platform (SDP) enables the integration and         value add, without having to acquire the skill or expend the
management of large and complex sets of services (see Figure 4).      capital to build a full function service infrastructure.
The SDP concept has been developed in the telecommunica-            • Using services oriented architecture and Web 2.0
tions system environment to manage the integration of the             technologies, the SDP enables collaboration for a more agile
many different types of telecommunications services, from             service creation.
standard wired phones to analog and digital mobile services to      • Common storefront technology enables service providers
Internet services and IPTV.                                           to integrate their business processes and store fronts for
                                                                      monetizing their services more efficiently.

                                                                    As the next step of the evolution of the SDP, it is being
                                                                    ported into the cloud. At the same time, the benefits of the
                                                                    proven concepts of service managements are extended beyond
                                                                    the telecommunications environment to any type of complex
                                                                    services involving large numbers of components and
                                                                    market players.

                                                                    Implementing the SDP concept in the cloud can revolutionize
                                                                    the ecosystem for the smarter home. The SDP is a platform to
                                                                    easily integrate component services, whether they are imple-
                                                                    mented with cloud technology or as conventional Web services.
                                                                    It makes possible the balancing of centralized and decentralized
                                                                    services and the use of existing back-end systems for functions
                                                                    such as customer relations management or billing.
Figure 4: IBM Service Delivery Platform (SDP): An SOA-based
framework
11   The IBM vision of a smarter home enabled by cloud technology




An SDP in the cloud supports the expansion of the services          Case example: Philips Net TV
scope by enabling new services in existing markets and by           Philips Net TV is a leading example of this development (see
expanding existing services into new markets with minimum           Figure 5). When a consumer brings the TV home, the TV con-
risk. By exposing standard service interfaces in the network, it    nects itself to the WiFi network. Upon pressing the Net TV
enables third parties to integrate their services quickly, or to    button, the user is connected to the services portal which pres-
build new services based on the service components provided in      ents a localized start screen in the user’s own language. The
the SDP. This creates the opportunity for new business models,      services range from simple information services like weather
for instance, for media distribution and advertising throughout     and news, to games, commerce, social networks, personal
multiple delivery scenarios.                                        media and user generated videos.


Smarter TV: A key example of a smarter                              In the near future, premium services such as movies and “catch-
home service                                                        up TV” will be added as well. Selecting from this wide array of
Smarter TVs are leading the way for broadly accepted smarter        Net TV services, the user can customize his start-up screen to
home devices, promising a complete entertainment revolution.        put his favorites at his fingertips. A second button on the remote
Through their broadband connections, they provide consum-           control brings the user to a program guide screen that provides
ers with on-demand access to an unlimited array of                  detailed information about the broadcast programs available to
entertainment options throughout the Internet. In addition to       the user and lets him tune directly to a program.
standard, linear TV, they provide two-way interaction, person-
alized content, games and a wide range of personal and social
communications, from instant messaging to social network
applications. Televisions are about to become the next open
application platform, similar to the application platforms on
mobile devices.

Smarter TV creates an ongoing connection for device manu-
facturers and content owners with their consumers, where up to
now mainly discrete sales opportunities existed. This creates
the opportunity for new business models through services. The
intelligence of the new infrastructure, both at the device and in
the network, enables consumers to achieve the personalization
needed to navigate the large amounts of content now available.
It provides the device manufacturers with the opportunity for
user-driven product innovation. It also creates the opportunity
for entirely new types of content for programmers, distributors
and content owners.
                                                                    Figure 5: Philips Net TV for popular online services on your TV
12   The IBM vision of a smarter home enabled by cloud technology




The Net TV services portal brings together local and interna-       A look into the future: Intuitive virtual 3D
tional content and services and lets consumers navigate and         user interface
select with the click of one button on the remote control on        Intuitive user interfaces are a key acceptance factor for smarter
Philips’ simple user interface. Net TV’s personalization fea-       homes. Many devices that exist on the market today are over-
tures enable consumers to select their favorites and their          loaded with features and difficult to configure. Offloading the
preferred language and country. The individual connection           configuration to a cloud and designing devices for ease of use
between the consumers and the Net TV Portal creates an              like the Philips Net TV or the Apple iPhone can stimulate the
improved ability to use interactive advertising.                    demand for home automation. Existing non-IP based systems
                                                                    can be connected to a cloud with products such as the Shaspa
The Net TV services portal manages the television’s access to       Bridge.
content, and Net TV content partners can easily add to their
diverse Internet service offerings. By controlling the services     Due to their increased function and impact on consumers’ lives,
portal, Philips can assure the quality of the content and the       smart systems require more sophisticated human environment
branding of the service, while leaving each content provider        interfaces. A blend of technologies from wireless sensors, mobile
freedom to pursue his own business model, be it advertising         access and virtual worlds, to social networking technology forms
supported, transaction based or subscription based. The opera-      an innovative service framework that puts the control of their
tion of the services portal is supported by advertising and         homes at consumers’ fingertips, wherever they are.
click-through fees, to assure a continuous revenue base without
having to place a surcharge on the TV devices. IBM collabo-
                                                                    Figure 6 shows a cloud-based IBM prototype of how a simple
rated with Philips to design and develop the new services portal
                                                                    interface (here the Shaspa interface) may look to control the
and is operating the portal on behalf of Philips.
                                                                    various aspects of a smarter home. Also important is a simple
                                                                    means of displaying energy consumption. Tests with volunteers
Standard Web technology addresses the challenge of making a         show a potential of reducing peak energy consumption by up to
large array of content quickly and easily available. A browser in   30% through identifying and replacing inefficient devices and
the TV displays the content and supports the user interactions.     user behavior. Figure 7 shows how energy consumption data
Using widely accepted Web standards such as HTML,                   can be displayed so the user can quickly see patterns and adjust
JavaScript and Ajax for the content format makes it easy for con-   usage if needed.
tent service providers to prepare broad entertainment content
suitable for the TV, all while leveraging the content base they
created for the Web. A special HTML extension, the CE
HTML standard, supports the navigation of the TV Web pages
with a standard remote control without the need of a mouse and
a keyboard. Within the HTML framework, the TV can pres-
ent standards-based media types such as h.264 video, AAC
audio and JPEG images.
13   The IBM vision of a smarter home enabled by cloud technology




Figure 6: The smarter home, instrumented with sensors and actuators
to control and optimize usage, can be controlled with a simple interface.
                                                                            Figure 8: A virtual 3D representation forms an easy-to-use, intuitive
                                                                            interface of the smarter home.


                                                                            Taking advantage of Web standards and ubiquitous technology,
                                                                            it becomes possible to access information from the smarter
                                                                            home anywhere, even with smart mobile devices. Figure 9
                                                                            shows an example of a readout from a health monitoring device
                                                                            on an Android-based device.




Figure 7: Simple overview of energy consumption enables usage
adjustment for optimization

The adoptions of open standards for the involved systems can
simplify the planning, installation, usage and maintenance
of the systems. For example, the CAD drawings that an
architect creates can be converted to a virtual representation
of the building that makes possible remote control of the
lights, heating and window shutters. The white goods
that are installed later can be added to the virtual world
representation and also monitored and controlled from within
a virtual world (here Second Life). The benefit of virtual
worlds is that a person that does not know the building very
well gets a very realistic impression of it and can, for example,           Figure 9: Mobile access to health data using an Android platform
monitor the house when you are on vacation (see Figure 8).
14   The IBM vision of a smarter home enabled by cloud technology




The emerging technology standards
One challenge to the realization of the cloud-based smarter
home vision is the need to integrate a large number of device
interfaces, networking protocols and technologies and a variety
of applications and services already deployed in the home today.
The IBM vision of a smarter home requires bi-directional
communication between home devices (appliances and automa-
tion systems) and the cloud, a communication that can use any
hardware and networking technology. Today, there is a confus-
ing set of choices and a complex hierarchy of standards from
low-level specification of data formats to system level applica-
tion interoperability standards. Figure 10 shows some of the
more important access technologies and standards, including:
                                                                                                             Courtesy of Tim D. Schoeschle
• Systems at the level of application interoperability: OSGi,
  TAHI, TEAHA                                                       Figure 10: Home gateway standards: Connecting the smart home to
• High level protocols: UPnP, IGRS                                  the smart grid.
• Low level protocols: DLNA, Zigbee, HomePlug, Wifi
• Specifications: HGI, ITU-T SG15, ITU-T IPTV-GSI                   Implementing the smarter home in the cloud, however, helps
• More specifications: IEC TC100 gateway                            to overcome the interoperability obstacles presented by this
                                                                    diversity of standards in home devices by adopting a common
This pattern of multi-technology adoption is not likely to          interoperability framework for home devices and Web-based
change any time soon. Depending on the specific service             services. Now, devices communicate with the services in the
requirements for controlling and interfacing to various             cloud using Web-based standards, regardless of the access
types of devices (e.g., entertainment, information, medical,        networking technology or other standards used, and different
remotely managed appliances, safety and security), cost and         services can interoperate in the cloud using Web services
convenience will dictate what wired or wireless interface           standards.
technologies will be most appropriate. In the home today,
most devices and applications from different manufacturers          Services interfaces
do not share a common technology base and their                     The services interfaces for devices are not standardized in today’s
applications generally do not interoperate.                         practice, but are generally device-specific. For example, mobile
                                                                    phone and intelligent home appliances have their own unique
                                                                    interfaces. The direction for standardization in this space is to
                                                                    encourage the creation of device-specific interfaces and gradu-
                                                                    ally identify cross-device interfaces to support the convergence
                                                                    of home appliances, mobile devices and net appliances.
15   The IBM vision of a smarter home enabled by cloud technology




There is a growing need to get different kinds of devices to        The future is in the cloud.
communicate with services. Especially, key functions in             There is more to the smarter home than installation of smarter
devices need to be exposed as services so other services can        devices. Device manufacturers and service providers must focus
access and make the most of those exposed functions. Open           on creating instrumented, interconnected and intelligent
Service Gateway Initiative technology (OSGi) provides a ser-        devices that users find intuitive to use.
vice-oriented platform for developers to design and implement
embedded systems. It also offers standardized ways to manage        In this vision of the smarter home, one that is enabled by cloud
the component-based environment in software life cycle. This        technology, partnerships among ecosystem players will be vital
specification enables all OSGi compatible computing devices         as new business models emerge around service offerings.
such as computers, home devices and mobile phones to com-           Consumer electronics companies turn to IBM to help extract
municate with each other.                                           significantly more value from a world in which the number of
                                                                    IP-enabled devices is exploding. When these devices are con-
Communication protocols                                             nected in the cloud, they get the integration and affordability
There are two types of communication protocols. The first one       they need to drive maximum success.
is “LAN”-like protocols to enable devices to communicate
with each other. For example, Bluetooth and WiFi are wireless       A service delivery platform in the cloud lets them move forward
protocols devices the home can use to exchange data. The sec-       quickly and with confidence and lets their organization take
ond type of communication protocol is a “WAN”-like standard         immediate action in a cost-effective manner. Therefore, it is
such as Internet protocol. In this case, each home device can       important to seek out a partner with proven capabilities, rich
take advantage of the home router to connect directly to ser-       industry knowledge and creative expertise. The right solution
vice in the network.                                                provider can help them focus their energies, make the right
                                                                    choices and turn economic drivers into economic opportunities.
Once more and more devices use Web services to define their
interfaces, SOAP (Simple Object Access Protocol) can be used to     IBM is that partner with proven capabilities and experience
enable message exchanges over various communication channels        building service delivery platforms and delivering services from
such as HTTP and MQ. The message formats can make the               the cloud.
most of XML to enable devices to carry information for
exchange. A standards group in ISO/IEC 18012-1 offers a guide-      For more information, please visit
line for product interoperability for home electronic systems.      ibm.com/electronics, or contact:

                                                                    Bruce Anderson, General Manager, IBM Global Electronics
                                                                    Industry, baanders@us.ibm.com

                                                                    Scott Burnett, Director, IBM Digital Convergence Group,
                                                                    IBM Research, burnetts@us.ibm.com

                                                                    Martin Kienzle, Chief Architect, IBM Digital Convergence
                                                                    Group, IBM Research, kienzle@us.ibm.com

                                                                    Cesar Gonzales, IBM Fellow, Electronics Industry Research
                                                                    Executive, IBM Research, butron@us.ibm.com
© Copyright IBM Corporation 2010
  Route 100
  Somers, NY 10589
  U.S.A.
  Produced in the United States of America
  January 2010
  All Rights Reserved
  IBM, the IBM logo, and ibm.com are trademarks or registered trademarks
  of International Business Machines Corporation in the United States,
  other countries, or both.
  Java and all Java-based trademarks and logos are trademarks of Sun
  Microsystems, Inc. in the United States, other countries, or both. Other
  product, company or service names may be trademarks or service marks
  of others.
  References in this publication to IBM products or services do not imply
  that IBM intends to make them available in all countries in which IBM
  operates.

         Please Recycle




  LBW03001-USEN-00

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IBM Smart Home Vision Using Cloud Technology

  • 1. IBM Sales & Distribution Global Electronics Industry White Paper The IBM vision of a smarter home enabled by cloud technology
  • 2. 2 The IBM vision of a smarter home enabled by cloud technology Goodbye “smart.” hello “smarter.” Many consumers are already using cloud computing and A “smarter home” is on the horizon. The increasing number of may not realize it. Anyone who has a Web-based e-mail Web-enabled home appliances and devices, coupled with the account from Google or Yahoo!—or who has ever used widespread availability of broadband communications, are YouTube, Facebook or Twitter—has already interacted finally enabling new “intelligent” products and services that with data stored in the cloud. With cloud computing, reach far beyond traditional markets. consumers do not need to have knowledge of, expertise in, or control over the technology infrastructure in the cloud Today’s Internet of people is evolving into an “Internet of that supports their consumer electronics. things,” as soon there will be more than one trillion connected devices. By 2013, 1.2 billion connected consumer electronics A common services delivery platform based on industry devices are expected in the more than 800 million homes with standards supports cooperative interconnection and cre- broadband connections. ation of new services. Implementation inside the cloud delivers quick development of services at lower cost, with Compared with previous attempts to enable the “smart home,” shorter time to market, facilitating rapid experimentation where the intelligence was based on centralized control and improvement. The emergence of cloud computing, through a home server or gateway, the intelligence and with it Web services and service-oriented architecture (SOA), the complexity in the new smarter home is moved out from the together with new standards, is the key that will open up home onto the network, or more precisely the Internet cloud. the field for the new smarter home services. This new paradigm exposes opportunities for innovative ser- Digital convergence is enabling the vices which build on the computational power and scalability of smarter home. the cloud, along with the collective consumer knowledge. Data The digital revolution has dramatically increased the which is aggregated then stored within the cloud can provide function and reduced the cost of consumer devices. This dramatic new insights about consumer needs and behavior. has led to an explosion of new smart devices in the home, Ultimately, this paradigm facilitates a host of possibilities, from from digital TVs and game systems to environmental radically improving the performance of current devices and controls, smart appliances, and safety and monitoring services, to delivering benefits which have not yet even been devices, along with lifestyle, wellness and medical devices. considered. The current smarter home services areas showing early adoption are: The impending almost-universal broadband connectivity for homes represents another major driver for the smarter • Entertainment and convenience home. While the physical networks may differ, from DSL • Energy management and cable modems to fiber-to-the-home and 3G/4G wire- • Safety and security less networks, the common use of the Internet Protocol • Health and wellness creates universal connectivity. The typical flat rate fee structure for broadband connectivity reduces the mar- ginal network cost of additional services to effectively zero. Compared to earlier times, when any device had to connect to a network service using a chargeable phone call, this is a dramatic cost reduction.
  • 3. 3 The IBM vision of a smarter home enabled by cloud technology Open source platforms (and open business models such as The smarter home is instrumented, application stores) are unleashing the creativity of an increas- interconnected and intelligent. ingly large number of application writers, as witnessed by the What makes a home smarter, rather than just smart? IBM® has more than 100,000 applications that are available for the defined three characteristics that distinguish this new genera- Apple iPhone within a year of system launch. tion of household devices. As the Internet is evolving, consumers of various ages and back- • Instrumented is the ability to sense and monitor changing grounds are becoming more receptive to connected products conditions. Instrumented devices provide increasingly and experiences. At the same time, consumers are demanding detailed information and control about their own more quality and intuitive interfaces with these experiences, functioning and also provide information about the offering service providers an opportunity to differentiate with environment in which they operate. For instance, a clothes new services and ease of use. washer can report information about the state of its components to support preventive maintenance for avoiding Providers are jumping into this market, looking to increase unforeseen outages. At the same time, it can sense its wash their revenue through new services and to lower their costs. load to optimize its operation; it can send usage information Cable and telecommunications companies are looking to pro- to the manufacturer for data driven product innovation and vide entertainment services. Consumer electronics it can be switched on by external signals when the energy manufacturers are looking to connect their devices directly to cost is lowest. the Internet for new content. Power companies are introducing • Interconnected is the ability to communicate and interact, “smart meters” to reduce their cost and consumers’ energy use. with people, systems and other objects. Interconnected An entirely new class of connected devices has emerged in the devices make possible remote access to information about area of wellness and convenience, attempting to improve a device and control of the device. This enables services people’s lifestyles. throughout the Internet, removing complexity from the home and lowering costs for the service providers. At the In the global economy, intense competitive pressure is driving same time, it supports the aggregation of information and more efficient markets. To stay ahead, businesses must build control of devices throughout the network. This means that new models to be the first to create and seize unrealized oppor- consumers can get a consistent view of their devices, both tunities for developing innovative products that enable from home and from mobile devices. For service providers, differentiating services. Breakthrough technologies such as it provides an aggregate view of customer characteristics cloud computing and Web 2.0 are empowering businesses, according to criteria such as geographic location, driving the convergence of business and IT. Through this consumption patterns, or types of service. process, the distances and costs between companies and their • Intelligent is the ability to make decisions based on data, customers are becoming significantly reduced. leading to better outcomes. Intelligent devices support the optimization of their use, both for the individual consumer and for the service provider. For instance, a utility can send signals to consumers’ homes to manage discretionary energy use in order to reduce peak loads. By coordinating this process throughout an entire service area, the utility can optimize the peak reduction, while saving the consumers money on their bill.
  • 4. 4 The IBM vision of a smarter home enabled by cloud technology Figure 1 illustrates how the home can be connected to a cloud. The adoption of smarter home devices requires that they also Instrumented devices in the home are connected to the cloud, be intuitive. Consumers will adopt new services only if they are enabling data to be aggregated and new intelligence to be created. easy to use and fit smoothly into their lifestyles. The learning curve for new services must be low to non existent, and the ben- efits of the services must be immediately apparent. Experience with services on the Web has shown that even minor changes in usability can have tremendous impact on consumer acceptance. Many current devices and appliances are well positioned to become smarter devices. Many appliances now enjoy an inter- nal CPU, sensors and instrumentation, and I/O ports. Yet the majority of these are accessed by technicians only during man- ufacturing or emergency repair field service. Adding the capabilities for a more permanent connection to the Internet is relatively easy and low in cost. Figure 1: Cloud computing provides an intelligent platform connecting interoperating services with a common view of services in a home and Smarter home capabilities in the aggregate. The emerging capabilities of the smarter home enable services throughout many consumer industries, making consumers’ lives easier, healthier, more fun and more productive. The four service areas already demonstrating early adoption are: • Entertainment and convenience: The richness of the Internet is now available through the TV, which fundamentally shifts the definition of ‘content.’ Now consumer electronics companies can create open platforms for new lines of flat panel televisions that feature a portal which personalizes entertainment content from numerous broadcasters and movie studios. Over time, such devices might be subsidized by better targeted advertising, with a potential to share profits with other TV manufacturers with similar capabilities. This can lead to a win–win–win situation: reducing the number of commercials viewers have to watch, enabling broadcasters and advertisers to deliver more personalized entertainment options through targeted advertisements and giving TV manufacturers an opportunity to differentiate their products.
  • 5. 5 The IBM vision of a smarter home enabled by cloud technology • Energy management: Future demands on the electrical Figure 2 provides some examples of how common household grid will encourage minute by minute home appliance devices can become smarter. management to prioritize energy services while delivering automatic savings to owners. Automatically synchronizing lighting, home appliances, climate control sensors and other Household device How smarter? home electronics minimizes energy use based on changing Refrigerator Adjusts cooling temperature based on volume of exterior conditions and usage patterns in the home. Smarter items it contains; cooperates with washer and homes enhance consumers’ access to information, which dryer and with HVAC cycles. enables better decision making, while raising overall Thermostat / Changes target temperature based on current and societal benefit. HVAC coming weather conditions, sensors watching household activity; takes into account cost of • Safety and security: Many insurers now offer discounts power and load conditions as communicated by for existing centralized alarm services using sensors and utility. cameras. The ability to deploy home sensors that can Television Recommends television shows based on past instantly notify the homeowner, selected neighbors, or the selections of each viewer, advertisements reach police and fire departments can enhance home security and more intended audiences; uses Web browser and dynamic interface to other connected provide peace of mind. These services can also empower devices like thermostat or environmental family members to remotely check on the safety of children controls for lighting and distributed audio. and the well-being of elders. Washer and dryer Determines water temperature and wash/rinse/ • Health and wellness: A medical device maker designed dry time needed based on load volume, dirt level embedded software that helps healthcare providers and time-of-day energy rates; cooperates with other power demanding devices. continuously monitor patients with implanted or other Pool equipment Determines contamination levels and automati- at-home medical devices without having hospitalization cally dispenses correct amount of chemicals; or office visits. Smarter home scales and sensors monitor adapts operation of circulation pump and chlorine fitness, well-being and consistent activities. These home feed to time of day and weather conditions. health electronic devices can collect evaluative information about current health condition for disease prevention and Figure 2: Examples of smarter household devices overall wellness. Such devices may even be reimbursed in part or in full by insurance companies, government, or employers.
  • 6. 6 The IBM vision of a smarter home enabled by cloud technology Smarter home services in the network cloud Figure 3 shows some of the average yearly costs of everyday Over the years, there have been attempts to create a smart appliances, but certainly not all. Typically air conditioning, home by bringing servers or data appliances into the home that heating and hot water heaters use even more energy than pool consolidate the home information and control. However, the pumps and refrigerators, so it’s obvious that making these need to manage, even if done remotely, very complex IT devices smart has benefits. Having better information about devices in the home has prevented this approach from being where energy is being used can help consumers save money and widely adopted. energy, all while reducing their carbon footprint. This is an affordable way to increase consumer comfort without increased A more effective approach is to connect the devices throughout complexity for the consumer. the Internet to services in the network cloud, which enables centralized services. Many of the devices in the home today can already connect individually to services in the Internet, even though each may use different application protocols and APIs. Putting the intelligence into services in the network cloud reduces the complexity of managing software in the home devices and simplifies the interoperability of devices. This is accomplished by bridging the services throughout the network through Web services interfaces, translating the different device protocols to a common platform, then connecting the devices through the network cloud. This is a far less expensive and more flexible way to aggregate services and compose new services from existing devices than past attempts. It also removes a major barrier to adoption, which has been the signif- icant complexity in the home as a result of all the connected US DOE 2009 devices. Now the consumer moves from being the IT manager of their home to a consumer of services through their Figure 3 – Cost per year of average household electrical appliances connected devices. ”Smarter” everything causes shifts in the A local services “clone” or services cache in the home can safe- value chain. guard the availability of the services against network problems Digital convergence—that is, the transformation of content and guarantee continuous high quality, all with simple control into digital content—and the near universal availability of IP by the consumer. connectivity have changed the consumer electronics landscape forever. With new cloud services, new possibilities exist for an appli- ance as simple as a pool pump or refrigerator when it has the Earlier, products were isolated, and there was little contact with ability to sense and respond to changing conditions, to com- consumers after the sale. Entertainment content was broadcast, municate with other systems and to inform decision-making. without direct connection between the content provider and the consumer. The ability to associate services with a device was very limited.
  • 7. 7 The IBM vision of a smarter home enabled by cloud technology Now, devices are network connected, creating the possibility Economic drivers for “smarter” devices of one-on-one relationships between the consumers, service and services providers and device manufacturers. This new capability of Insurers can lower the risk and offer lower, more competitive one-on-one, two-way interactions combined with the vast premiums to their customers. Broadcasters and other content expansion of device functions is leading to an explosion of ser- owners can expand their offerings by making back catalog (so- vices and devices. Using independent appliance monitors and called “long-tail”) content available. They can further increase control equipment enables the integration of more traditional their revenue through improved business intelligence and tar- appliances that don’t have the “smarts” built in. geted advertising. Hospitals and private practitioners can extend health care services to patients’ homes, lowering the A particularly important development is the transition of health care cost and freeing up facilities. Energy utilities can devices from single function platforms, such as music players or help their consumers manage their energy use, lowering overall mobile phones, to application platforms which enable a vast consumption and peak loads with the potential to not have to array of new services. construct new power plants or import electricity. As a consequence of this development, the growth of the service For device manufacturers, the incremental cost to connect portion of the value chain is far outpacing the growth of the devices that already have substantial intelligence in them is eas- device sector. At the same time, traditional consumer electronic ily offset by a number of benefits. Fewer truck rolls to devices such as televisions are under intense manufacturing consumers’ homes reduce the repair and warranty costs and costs and retail margin pressure. increase the consumer satisfaction for both the manufacturer and the retailer. The potential for product registration Forming an open ecosystem that supports applications and ser- increases exponentially. Consumers are willing to pay a little vices from a wide variety of providers opens up the possibility of extra for the assurance that their appliance will not fail at a time a broad range of business models with varying degrees of con- when it is most inconvenient. Other benefits such as access to trol of the ecosystem. more information, advice and the ability to control devices remotely are additional incentives. These approaches to benefiting from the expansion of services value require a services business model, which is typically unfa- Economic indicators from throughout the target markets show miliar to electronics manufacturers—and consequently, they that the opportunities for smarter home devices and services are shy to adopt. These manufacturers have the option to add will experience explosive growth in the coming years. Forrester features to their products that make them friendly for services Research reports that a third of the U.S. households surveyed providers, such as software and content security for licensed are interested in being able to remotely monitor conditions in content, secure device authentication, support for an applica- the home, and forecasts that U.S. home broadband will grow to tion platform, and differentiators such as additional storage or 75% penetration by 2012. advanced user interaction devices (e.g., remote controls). These features can be monetized by larger sales due to the increased attractiveness of the devices and the associated services, or through licensing of features to content service providers.
  • 8. 8 The IBM vision of a smarter home enabled by cloud technology Meanwhile, Parks Associates have estimated that by 2012: Using Webcams and remotely controlled locks for the front door and the garage door, it is possible to always ensure the • Entertainment: 450 million worldwide connected security of a home. The Shaspa smart building automation plug entertainment devices in the living room makes possible the network integration of devices that were not • Energy management: 45 million U.S. households with smart originally designed for remote monitoring and operation. meters that measure household energy usage and send this information back to the energy grid • Health and wellness: Nearly $2.5 billion of revenue in the U.S. for health and fitness monitoring devices and services “Envisioneering surveyed consumers throughout America’s largest coastal cities, Polycom is looking to create a high-definition media confer- where 78% now enjoy WiFi broadband at encing system for consumers, with high quality audio and video home. Most consumers enjoy six or more from every room of the house. Connecting media devices through the Internet, this creates an innovative communica- networked consumer electronics products tion experience from a simple phone call to a shared media (primarily PCs, video and handheld games, presence in the living room. Managing this innovative service cell phones, media players, Webcams and in the cloud assures a high-quality experience for consumers with minimum complexity. Internet phones) and a growing assortment of fitness, wellness and remote healthcare General Electric and Whirlpool have both publicly announced monitoring devices.” that soon their products will be built to connect to the intelli- – Richard Doherty, Research Director, The Envisioneering Group gent grid. Emerson Technology’s smart thermostats will enable consumers to have more control over their home energy usage than ever before. Residents will be able to control the air condi- tioning/heat intensity and temperature of their home remotely, through computers and mobile phones, resulting in significant savings on heating and cooling bills. Vignet is providing mobile and fixed broadband infrastructure for healthcare and life sciences. Their “person-centered” Connected Health Services platform lets users capture, aggregate, analyze and share data with their mobile devices and PCs. The Vignet platform enables connecting of devices throughout the entire healthcare continuum and provides cloud based solutions for wellness, fitness, nutrition, chronic disease management, home care, body-area networks, remote patient monitoring and independent living. Vignet, like IBM, is part of the Continua Health Alliance, whose goal it is to enable end- to-end interoperability for connected heath solutions. By providing a framework of standards-based interfaces, Continua is spurring innovation while removing barriers to global imple- mentation and adoption.
  • 9. 9 The IBM vision of a smarter home enabled by cloud technology The smarter home is enabled in the cloud. The benefits of a cloud-enabled smarter home are many and Cloud computing technology creates an ideal environment for distinct for each participant, including: an intelligent, highly efficient and highly flexible utility approach to services in the network. At the hardware infra- • Consumer benefits: Consumers will find these new devices structure level, it enables the flexible, dynamic and low-touch and services far easier to use, as the complexity and provisioning of resources to applications. The creation of vir- management has been moved into the cloud; no additional tual service images supports the easy life cycle management and IT device is needed in the home with the attendant deployment of services. Finally, standardized Web services management headaches. The open nature of the ecosystem interfaces to the services enable the dynamic composition of increases the choice—and reach—of devices, services and individual services into flexible solutions in a plug-and-play service providers. Connecting disparate devices in the mode. network is simply a matter of software adapters at the service provider site. This interconnection and interoperation can The cloud for managing the consumer services can extend give home owners a common view and provide mobile access directly into the home. A services “clone” can directly interact to monitor their devices. The robustness and extensibility with services in the network, in effect becoming part of the of networked services, along with the ability to link both cloud. This clone can function as a limited local replica of some existing and newly optimized devices, provide reliable services, delivering control even in the case of a network failure. performance and superior consumer customization whose It can also ease the connection of home devices to the network value will increase through services innovation. by translating protocols and acting as traffic concentrator. The • Consumer electronics manufacturer benefits: The development ability to adapt any type of network and application protocols of industry standards for services and the ability by service increases the choice of devices and services for consumers. providers to create innovative service models increases the market size for devices while reducing the business risk for Cloud technology, whether in the form of “software as a device manufacturers. Previous “walled gardens” yield to service”(SaaS) or “infrastructure as a service” (IaaS), improves an open ecosystem. This reduces the risk of being locked service management by speeding up the time to market and out from markets through exclusive contracts by some lowering the management cost for service management, device manufacturers. The cloud is the platform. The resource management and life cycle management. It reduces manufacturing company can concentrate on the function the resources cost by enabling more efficient allocation of frac- and the service and can be confident that its devices can tional hardware resources to virtual service images. “talk” to the cloud over any infrastructure. Implementing the bulk of the intelligence in software The open platform environment permits devices to be con- over the network minimizes the technical limitations nected, enabling interoperation and remote access of services. placed on devices during design and manufacture. Open This will create an ecosystem based on industry standards, standards and the ability to take advantage of existing driven by industry leaders. Using service-oriented architec- service components in the network reduce the development tures , services with different protocols and data types can be cost and the time to market. Monitoring devices remotely easily connected. The application services can also take advan- to detect impending failures, and to understand usage tage of common infrastructure services, such as customer patterns, reduces warranty cost and increases business relationship management (CRM) or billing. intelligence for data driven product innovation.
  • 10. 10 The IBM vision of a smarter home enabled by cloud technology • Service provider benefits: Many of the benefits for device The SDP provides an SOA-based framework to link modular manufacturers also apply to service providers, such component services, including third-party services, to manage as a shorter time to market and the open ecosystem. the different types of service exposure and to use common back The shared, low-cost infrastructure of a cloud solution end components such as business support systems (BSS) and reduces the capital expenditures for bringing a solution operational support systems (OSS). In addition, the SDP pro- to market. A common view by the service provider of vides service life cycle management from the creation of new the devices yields a vast amount of data for new business services, to bringing them online in a controlled way for intelligence. In addition to lower CRM cost, these insights selected customer sets, to actual operation, bundling with other can yield substantial improvements in services, or create services and finally termination of services to make way for the opportunity for entirely new services. With a cloud alternatives. The IBM SDP has been deployed successfully in solution, a service provider can focus on its particular value many telecommunications environments. add and obtain additional business and operational support services from utilities in the network. Important benefits of the SDP are: The Service Delivery Platform Makes it • Managing the complexity of service deployments means Possible. that third party service providers can focus on their specific A service delivery platform (SDP) enables the integration and value add, without having to acquire the skill or expend the management of large and complex sets of services (see Figure 4). capital to build a full function service infrastructure. The SDP concept has been developed in the telecommunica- • Using services oriented architecture and Web 2.0 tions system environment to manage the integration of the technologies, the SDP enables collaboration for a more agile many different types of telecommunications services, from service creation. standard wired phones to analog and digital mobile services to • Common storefront technology enables service providers Internet services and IPTV. to integrate their business processes and store fronts for monetizing their services more efficiently. As the next step of the evolution of the SDP, it is being ported into the cloud. At the same time, the benefits of the proven concepts of service managements are extended beyond the telecommunications environment to any type of complex services involving large numbers of components and market players. Implementing the SDP concept in the cloud can revolutionize the ecosystem for the smarter home. The SDP is a platform to easily integrate component services, whether they are imple- mented with cloud technology or as conventional Web services. It makes possible the balancing of centralized and decentralized services and the use of existing back-end systems for functions such as customer relations management or billing. Figure 4: IBM Service Delivery Platform (SDP): An SOA-based framework
  • 11. 11 The IBM vision of a smarter home enabled by cloud technology An SDP in the cloud supports the expansion of the services Case example: Philips Net TV scope by enabling new services in existing markets and by Philips Net TV is a leading example of this development (see expanding existing services into new markets with minimum Figure 5). When a consumer brings the TV home, the TV con- risk. By exposing standard service interfaces in the network, it nects itself to the WiFi network. Upon pressing the Net TV enables third parties to integrate their services quickly, or to button, the user is connected to the services portal which pres- build new services based on the service components provided in ents a localized start screen in the user’s own language. The the SDP. This creates the opportunity for new business models, services range from simple information services like weather for instance, for media distribution and advertising throughout and news, to games, commerce, social networks, personal multiple delivery scenarios. media and user generated videos. Smarter TV: A key example of a smarter In the near future, premium services such as movies and “catch- home service up TV” will be added as well. Selecting from this wide array of Smarter TVs are leading the way for broadly accepted smarter Net TV services, the user can customize his start-up screen to home devices, promising a complete entertainment revolution. put his favorites at his fingertips. A second button on the remote Through their broadband connections, they provide consum- control brings the user to a program guide screen that provides ers with on-demand access to an unlimited array of detailed information about the broadcast programs available to entertainment options throughout the Internet. In addition to the user and lets him tune directly to a program. standard, linear TV, they provide two-way interaction, person- alized content, games and a wide range of personal and social communications, from instant messaging to social network applications. Televisions are about to become the next open application platform, similar to the application platforms on mobile devices. Smarter TV creates an ongoing connection for device manu- facturers and content owners with their consumers, where up to now mainly discrete sales opportunities existed. This creates the opportunity for new business models through services. The intelligence of the new infrastructure, both at the device and in the network, enables consumers to achieve the personalization needed to navigate the large amounts of content now available. It provides the device manufacturers with the opportunity for user-driven product innovation. It also creates the opportunity for entirely new types of content for programmers, distributors and content owners. Figure 5: Philips Net TV for popular online services on your TV
  • 12. 12 The IBM vision of a smarter home enabled by cloud technology The Net TV services portal brings together local and interna- A look into the future: Intuitive virtual 3D tional content and services and lets consumers navigate and user interface select with the click of one button on the remote control on Intuitive user interfaces are a key acceptance factor for smarter Philips’ simple user interface. Net TV’s personalization fea- homes. Many devices that exist on the market today are over- tures enable consumers to select their favorites and their loaded with features and difficult to configure. Offloading the preferred language and country. The individual connection configuration to a cloud and designing devices for ease of use between the consumers and the Net TV Portal creates an like the Philips Net TV or the Apple iPhone can stimulate the improved ability to use interactive advertising. demand for home automation. Existing non-IP based systems can be connected to a cloud with products such as the Shaspa The Net TV services portal manages the television’s access to Bridge. content, and Net TV content partners can easily add to their diverse Internet service offerings. By controlling the services Due to their increased function and impact on consumers’ lives, portal, Philips can assure the quality of the content and the smart systems require more sophisticated human environment branding of the service, while leaving each content provider interfaces. A blend of technologies from wireless sensors, mobile freedom to pursue his own business model, be it advertising access and virtual worlds, to social networking technology forms supported, transaction based or subscription based. The opera- an innovative service framework that puts the control of their tion of the services portal is supported by advertising and homes at consumers’ fingertips, wherever they are. click-through fees, to assure a continuous revenue base without having to place a surcharge on the TV devices. IBM collabo- Figure 6 shows a cloud-based IBM prototype of how a simple rated with Philips to design and develop the new services portal interface (here the Shaspa interface) may look to control the and is operating the portal on behalf of Philips. various aspects of a smarter home. Also important is a simple means of displaying energy consumption. Tests with volunteers Standard Web technology addresses the challenge of making a show a potential of reducing peak energy consumption by up to large array of content quickly and easily available. A browser in 30% through identifying and replacing inefficient devices and the TV displays the content and supports the user interactions. user behavior. Figure 7 shows how energy consumption data Using widely accepted Web standards such as HTML, can be displayed so the user can quickly see patterns and adjust JavaScript and Ajax for the content format makes it easy for con- usage if needed. tent service providers to prepare broad entertainment content suitable for the TV, all while leveraging the content base they created for the Web. A special HTML extension, the CE HTML standard, supports the navigation of the TV Web pages with a standard remote control without the need of a mouse and a keyboard. Within the HTML framework, the TV can pres- ent standards-based media types such as h.264 video, AAC audio and JPEG images.
  • 13. 13 The IBM vision of a smarter home enabled by cloud technology Figure 6: The smarter home, instrumented with sensors and actuators to control and optimize usage, can be controlled with a simple interface. Figure 8: A virtual 3D representation forms an easy-to-use, intuitive interface of the smarter home. Taking advantage of Web standards and ubiquitous technology, it becomes possible to access information from the smarter home anywhere, even with smart mobile devices. Figure 9 shows an example of a readout from a health monitoring device on an Android-based device. Figure 7: Simple overview of energy consumption enables usage adjustment for optimization The adoptions of open standards for the involved systems can simplify the planning, installation, usage and maintenance of the systems. For example, the CAD drawings that an architect creates can be converted to a virtual representation of the building that makes possible remote control of the lights, heating and window shutters. The white goods that are installed later can be added to the virtual world representation and also monitored and controlled from within a virtual world (here Second Life). The benefit of virtual worlds is that a person that does not know the building very well gets a very realistic impression of it and can, for example, Figure 9: Mobile access to health data using an Android platform monitor the house when you are on vacation (see Figure 8).
  • 14. 14 The IBM vision of a smarter home enabled by cloud technology The emerging technology standards One challenge to the realization of the cloud-based smarter home vision is the need to integrate a large number of device interfaces, networking protocols and technologies and a variety of applications and services already deployed in the home today. The IBM vision of a smarter home requires bi-directional communication between home devices (appliances and automa- tion systems) and the cloud, a communication that can use any hardware and networking technology. Today, there is a confus- ing set of choices and a complex hierarchy of standards from low-level specification of data formats to system level applica- tion interoperability standards. Figure 10 shows some of the more important access technologies and standards, including: Courtesy of Tim D. Schoeschle • Systems at the level of application interoperability: OSGi, TAHI, TEAHA Figure 10: Home gateway standards: Connecting the smart home to • High level protocols: UPnP, IGRS the smart grid. • Low level protocols: DLNA, Zigbee, HomePlug, Wifi • Specifications: HGI, ITU-T SG15, ITU-T IPTV-GSI Implementing the smarter home in the cloud, however, helps • More specifications: IEC TC100 gateway to overcome the interoperability obstacles presented by this diversity of standards in home devices by adopting a common This pattern of multi-technology adoption is not likely to interoperability framework for home devices and Web-based change any time soon. Depending on the specific service services. Now, devices communicate with the services in the requirements for controlling and interfacing to various cloud using Web-based standards, regardless of the access types of devices (e.g., entertainment, information, medical, networking technology or other standards used, and different remotely managed appliances, safety and security), cost and services can interoperate in the cloud using Web services convenience will dictate what wired or wireless interface standards. technologies will be most appropriate. In the home today, most devices and applications from different manufacturers Services interfaces do not share a common technology base and their The services interfaces for devices are not standardized in today’s applications generally do not interoperate. practice, but are generally device-specific. For example, mobile phone and intelligent home appliances have their own unique interfaces. The direction for standardization in this space is to encourage the creation of device-specific interfaces and gradu- ally identify cross-device interfaces to support the convergence of home appliances, mobile devices and net appliances.
  • 15. 15 The IBM vision of a smarter home enabled by cloud technology There is a growing need to get different kinds of devices to The future is in the cloud. communicate with services. Especially, key functions in There is more to the smarter home than installation of smarter devices need to be exposed as services so other services can devices. Device manufacturers and service providers must focus access and make the most of those exposed functions. Open on creating instrumented, interconnected and intelligent Service Gateway Initiative technology (OSGi) provides a ser- devices that users find intuitive to use. vice-oriented platform for developers to design and implement embedded systems. It also offers standardized ways to manage In this vision of the smarter home, one that is enabled by cloud the component-based environment in software life cycle. This technology, partnerships among ecosystem players will be vital specification enables all OSGi compatible computing devices as new business models emerge around service offerings. such as computers, home devices and mobile phones to com- Consumer electronics companies turn to IBM to help extract municate with each other. significantly more value from a world in which the number of IP-enabled devices is exploding. When these devices are con- Communication protocols nected in the cloud, they get the integration and affordability There are two types of communication protocols. The first one they need to drive maximum success. is “LAN”-like protocols to enable devices to communicate with each other. For example, Bluetooth and WiFi are wireless A service delivery platform in the cloud lets them move forward protocols devices the home can use to exchange data. The sec- quickly and with confidence and lets their organization take ond type of communication protocol is a “WAN”-like standard immediate action in a cost-effective manner. Therefore, it is such as Internet protocol. In this case, each home device can important to seek out a partner with proven capabilities, rich take advantage of the home router to connect directly to ser- industry knowledge and creative expertise. The right solution vice in the network. provider can help them focus their energies, make the right choices and turn economic drivers into economic opportunities. Once more and more devices use Web services to define their interfaces, SOAP (Simple Object Access Protocol) can be used to IBM is that partner with proven capabilities and experience enable message exchanges over various communication channels building service delivery platforms and delivering services from such as HTTP and MQ. The message formats can make the the cloud. most of XML to enable devices to carry information for exchange. A standards group in ISO/IEC 18012-1 offers a guide- For more information, please visit line for product interoperability for home electronic systems. ibm.com/electronics, or contact: Bruce Anderson, General Manager, IBM Global Electronics Industry, baanders@us.ibm.com Scott Burnett, Director, IBM Digital Convergence Group, IBM Research, burnetts@us.ibm.com Martin Kienzle, Chief Architect, IBM Digital Convergence Group, IBM Research, kienzle@us.ibm.com Cesar Gonzales, IBM Fellow, Electronics Industry Research Executive, IBM Research, butron@us.ibm.com
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