These notes were a first pass at sketching this business. A more recent, much more expansive business plan is here.

The following are a set of notes that start to define a business plan for the market for networking and automation in private housing.

Products / Services

There exists a substantial opportunity for installing and servicing networking and automation systems (hardware, software, services) in single-family homes. This opportunity is especially advantageous for new house construction, so the initial target market will be builders of new houses.

This is based on several observations:

• More and more houses will have need for multiple computers, scattered throughout the house. The main impediment to this is lack of systems administration skills.
• More and more homes will have high speed, 24-hour Internet connections (DSL, cable modem). This poses the need both for shared access and effective firewalling.
• Many new homes already have built-in low voltage wiring for telephones and cable. The trend is towards "structured wiring," which also supports audio and data.
• There are a large number of home automation gadgets available, which can be more effectively deployed and managed through central computer control and structured wiring. (The "home automation" industry is projected to grow at 30%/year at least through 2005.)
• The effective use of client-server technology in the home is new and largely unexplored terrain.

I see the product as:

• An equipment rack with firewall computer and UPS, typically installed in an equipment closet in the basement. This is flexible and expandable, allows easy service.
• Structured wiring from equipment closet to all rooms in house.
• Fixtures in rooms for connecting user-provided equipment, such as computers, audio/visual systems, telephones, fax, printers, surveillance equipment, sensors, etc.
• Powerline wiring controls (light switches, dimmers, etc.).
• Miscellaneous gadgets.
• Software to control all of above.

There will also be services associated with this product. Services to end users may include: maintenance, remote monitoring and troubleshooting, help desk, training.

New housing is particularly interesting, because:

• It allows us to install wiring and systems before the walls are finished, which makes the task simpler, less expensive, and offers more opportunities for more extensive integration.
• Sales would be made to (and through) builders, a relatively easy market to target. (Albeit one which tends to be local, so we need a business model that makes it possible to deliver services independently and locally.)
• Houses are financed over long terms, at favorable interest rates, and consequently tend to have greater price flexibility than selling discrete systems. (E.g., you can bury a $10K computer/automation system in a $400K house, where it becomes a significant selling feature for a small increment in cost.)

Business Model

• There would be a central umbrella organization, which would:
  • Hold brand names and certification credentials.
  • Sell franchises.
  • Sell training and services to/through franchises.
  • Coordinate and in many cases do research and development, including testing of components and systems, and open source software development.
  • Publish specifications and reviews of suitable components for installation. This may include joint purchasing services (possibly including component kits), although it is expected that franchises will not be required to buy through the umbrella organization.
  • Provide second-tier support services and handle escalations.
  • Generate publicity and customer-oriented marketing materials.
• There would be local, independently owned franchise companies, which contract with the umbrella organization for use of brand names, services, and marketing materials.
• There would be local, independent "affiliates", who have limited rights to use brand names, services, and marketing materials for specific tasks, such as installing wiring and/or setting up networking. These may include existing companies, such as security systems and high end audio/video consultants.

The franchises are permitted to engage in other business, and maintain their own identity. Franchises may to some extent specialize (e.g., construction phase and post-sales service may be done by different franchises), so long as there is adequate local coverage.

I expect that most franchises will be formed as partnerships between a local Linux consultant and someone already engaged in local construction trade. Financing for franchises may be available, but I'd prefer to see a record of previous business success.

Miscellaneous

Schedule

Software Development

Software development should be broken down into reasonable modular components, and organized as public open source software projects; e.g., under sourceforge.net. (The umbrella organization is not a software company; its function is to evaluate, integrate, and market. In doing so it will stimulate and contribute to software development, but will not attempt to own or monopolize that software.)

More Information

I've collected some links.

From local discussions, a list from Mark Jacobs.