Tuesday, February 12, 2008

The Home Is Going Digital

High tech is moving into the living room—and the kitchen, bedroom, and garage, too


So many attempts to bring the worlds of PCs and consumer electronics together have failed that the word “convergence” prompts snickers from journalists. But the market is poised for explosive growth, according to a new market study published by Parks Associates and EHX Publishing. Oddly enough, it’s not the PC that’s driving this train, according to the authors of this study; it’s the rapid adoption of flat-panel displays. The study predicts the size of this market will grow to $17 billion within the next five years—and that number doesn’t take into account consumers who build their own networks. Computer manufacturers such as Sony and HP clearly want a piece of this pie, but they’re taking very different roads to get there.
Sony’s not using the C word, but Xavier Lauwaert comes close when he describes the market for the digital home. Sony retreated from the desktop PC market several years ago, but its VAIO brand remains strong in the notebook arena, and according to Lauwaert, the company sold a significant number of its CableCARD and Blu-ray-equipped VAIO XL3 media center PCs in 2007. HP is taking a different approach. We DEC line because the PC doesn’t have to be in the living room anymore.” HP now seems to be taking a three-pronged approach to the market, with its innovative TouchSmart PC, entertainment-oriented Pavilion HDX notebook, and headless MediaSmart Server running Microsoft’s Windows Home Server. But we see the digital home encompassing more than entertainment—and so does Logitech. The company followed up its 2004 acquisition of Intrigue Technologies (best known for its innovative Harmony remote controls) and 2006 buyout of Squeezeboxmaker Slim Devices by snapping up WiLife in November. WiLife designs and manufactures the LukWerks video-surveillance system, which operates on a powerline network and can stream video to remote clients via the Internet. New wireless technologies such as Z-Wave and ZigBee (IEEE 802.15.4) are enabling do-it-yourselfers to add extensive observation and command features to their homes and apartments, allowing them to monitor and control their lighting, appliances, temperature, and more. Motion and moisture sensors can even alert homeowners to break-ins and leaks via email or MMS. It’s an exciting time to be a geek.

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