Amazon prepares to launch Android app store

Amazon is expected to launch a mobile app store soon, in an attempt to compete, head-on, with Google's Android Marketplace. A number of Amazon's developers have already submitted some apps to its Appstore Development Portal.

Amazon has also created a Developer Blog and a Twitter account, to promote this launch. Amazon has even have made video postings on YouTube, explaining how to submit apps to its online store.

Rumors indicate that consumers will be able to buy Android apps, from Amazon, on computers, as well as, smart phones and tablets, running Google's Android OS. For Amazon account holders, app purchases will be made using the same account they currently use to make online purchases. To read the full article, please click here.

Google creates website templates for Google TV

The Google TV team published a couple of new design templates, as well as a still-in-beta Web UI library that Web designers can use to optimize their sites for Google TV.

Blockage of such "less-than-ideal" sites could actually have been what caused Google TV to have such a disappointing launch in the first place.

Within the first month of the service's availability on the Logitech Revue set top box, ABC, NBC, CBS, Fox, and Viacom all made their websites unavailable to Google TV. The idea was that this would limit users' access to only the sites that the content providers designed specifically for Google TV.

If you're a Web designer, you now have some easy tools to rebuild your video site with a pre-made "10-foot UI" for Google TV. All of the templates are open sourced under the Apache 2 license, and they support sites that utilize HTML5, JavaScript, CSS and Flash.

For the complete article, please click here.

Google's ahead in the cloud

There is perhaps no company more entrenched in the cloud than Google.

To prove that point, the search giant has created the first computer operating system that's entirely online, so your computer won't even work without a Web connection.

The operating system -- named Chrome after the company's popular Web browser -- replaces traditional standalone computer applications. Google is hoping to rival the hold of Microsoft's Windows and Apple's Mac more traditional operating systems.

It won't be made public until this summer, but Google has launched a pilot program, putting free netbooks -- an unbranded bare-bones laptop called the Cr-48 -- running the OS into the hands of a few thousand early testers.

For the complete article, please click here.

Entrants Flood Race to Rival iPad .

A race to respond to Apple Inc.'s hit iPad gadget enters a new phase next week, as a host of companies use a Las Vegas trade show to talk up a broad array of tablet-style devices.

Companies expected to introduce touchscreen tablets at the Consumer Electronics Show include big names such as Motorola Inc., Dell Inc. and Acer Inc., as well as smaller manufacturers. Trying to stand apart, the devices will offer displays of various sizes and different operating systems. Some will have two built-in cameras; others none.

The stakes are high for many players—particularly Microsoft Corp. and Intel Corp., kingpins of PC technology that have so far struggled to match the momentum in tablets of Google Inc.'s Android software and chip designs from ARM Holdings PLC.

A number of firms, including ViewSonic, Dell, Acer and Asustek Computer Inc., are hedging bets on Android with additional Windows-based models. Still others plan to emulate Apple by using their own software.

For example, BlackBerry maker Research In Motion Ltd. has said it will use the QNX operating system for its seven-inch PlayBook, which the company unveiled in October and plans to sell for less than $500. RIM, which bought QNX Software Systems in April, plans to show off the PlayBook again at CES.

For the complete article, please click here.

What's In Store for Technology in 2011

It has been a big year in personal technology, from the debut and early success of Apple's iPad, to the rise and continuous improvement of Google's Android smart phone platform, to the continued surge in social services led by Facebook and Twitter.

Apple: Coming off a highly successful 2010, in which it introduced a new category of portable computer—the multitouch tablet—and sold millions of the product, Apple will have to withstand an onslaught of competitors by wowing consumers again with the second version of the iPad. At the same time, it will have to make a widely expected transition for the iPhone from a single carrier in the U.S., AT&T, to a second, likely Verizon

Google: The search giant, also riding high, is now in so many product areas it competes with nearly everyone. In its core search business, it must focus on fending off a surprisingly strong challenge from Microsoft's Bing by giving consumers more attractive, actionable results.

Microsoft: The software giant still generates strong consumer loyalty with its older products, like Windows and Office and Xbox, all of which have had updates in the past year or two. But it faces big challenges in two hot areas: smart phones and tablets. Its new Windows Phone 7 platform has some nice design features, but also some missing capabilities that need to be addressed.

RIM: The BlackBerry maker had a good 2010 in some ways, though sales were propped up by two-for-one giveaways, and consumer surveys show enthusiasm fading for the iconic smart phone. The company has an answer: a new software platform called QNX, but is vague on when that will show up on the BlackBerry. For 2011, RIM's big move will be a new QNX-based tablet, the PlayBook, which looks speedy and highly attractive in the limited demos RIM has provided.

HP: The technology behemoth's laptops and printers have proved popular with consumers. But it hasn't had any real presence in smart-phones, tablets or consumer cloud services. To solve the problems, in 2010 HP bought innovative but struggling Palm, whose smart-phone operating system, webOS, and phones, the Pre and Pixi, got good reviews but sold poorly and didn't attract many third-party apps.

Facebook and Twitter: The twin leaders in social networking were red-hot in 2010, attracting vast numbers of users. They have huge opportunities for further success, but face challenges. Smaller services, like social-coupon company Groupon, continue to emerge with new social and community ideas consumers like.

For the complete article, please click here.

Sales of Internet-connectable TV devices soaring to 350 million by 2015

Consumer desire for on-demand and online video content will motivate sales of Internet-connectable TV devices to nearly 350 million units worldwide by 2015, setting the stage for intense competition in app development.

Parks Associates' Connected Living Room: Web-enabled TVs and Blu-ray Players forecasts worldwide sales of Internet-connectable HDTVs, Blu-ray players, game consoles, and digital video players such as Roku and Apple TV will grow approximately fourfold from 2010.

The market has reached the fourth generation of connected TVs, and all major manufacturers are debuting new models at CES with innovations in content aggregation, apps development, and user interfaces. Content options are finally catching up to the hardware innovations, and growing libraries of on-demand movies and TV available are starting to unlock the potential of connected TV devices as multifunction online entertainment and communications platforms.

The expanded presence of these devices will increase opportunities for apps developers – including third-party developers and giants such as Google, Samsung, and Yahoo! Consumers will also be key in deciding whether a controlled apps environment or the open-browser approach advocated by Google will be the dominant model for the connected TV market in the next five years.

Companies across the value chain – including content aggregation, broadcast television, delivery and management, CE, pay-TV providers, and retail – have significant opportunities to deliver content to a large number of new devices.

Access to premium and user-generated video is a main driver for adoption and use of Internet-connectable devices. Access to streaming music, online photos, social network updates, personalized news and information, and simple games are also popular features for current users and likely buyers.

The market for Internet-connectable device sales over the next five years has a strong international focus. With pay-TV penetration lower in certain European and Asia-Pacific markets and with the broadcast television community showing strong interest in supporting technologies for interactive television, connected TV devices will become de facto set-top boxes in many of these countries. At the same time, today’s pay-TV providers will embrace the delivery of managed video services to connected TV devices to differentiate, increase customer satisfaction, lower capital expenditures by deploying fewer set-top boxes, and reach new bases of customers.

Microsoft eyes leap back into TV: sources

Microsoft Corp is about to jump back into the TV game. Only this time, it may aim at cable, satellite and phone companies.The software powerhouse has held talks with TV networks to create a new subscription-based TV service on its Xbox gaming console that would rival efforts by Google Inc, Apple Inc and Netflix Inc, sources told Reuters.

Microsoft's latest explorations after investments in MSNBC and WebTV come as efforts to redefine living room entertainment have accelerated in the past year, with technology companies seeking to offer lower cost alternatives to pricey pay-TV subscriptions.

One scenario under consideration by Microsoft is to create a new TV service on its Xbox gaming console that would establish a "virtual cable operator." The service would charge a monthly fee for access through the Xbox to networks such as ABC, NBC, Fox, CBS, ESPN or CNN, according to two sources familiar with the plans.

Other options include allowing cable subscribers to use the Xbox to watch shows with more interactive functions. Viewers could, for instance, message with friends over the console while viewing their favorite shows.

News of Microsoft's plans come as the pay-television industry are moving to allay investor concerns that consumers are fleeing expensive subscription packages for cheaper online services operated by companies such as Netflix Inc and Hulu, which both charge $7.99 per month for streamed shows and movies. The phenomenon is called "cord-cutting."

For the complete article, please click here.

Smartphone replacing Remote Controls?

The standard TV remote control, lost so many times beneath sofa cushions, may soon be lost to history. Many people are now switching to their smart phones as substitutes to their remote controls.

TV viewing habits are changing as more Internet and on-demand content — YouTube videos, streaming movies, shopping sites, Facebook photos — flows directly onto big screens. Navigating all of that demands more action from the viewer, including a fair amount of typing, which current remotes cannot handle.

There have already been successful attempts to use smartphones as remotes. Sonos, which makes Internet-connected stereos, offers a free iPhone application that replicates every feature of its own $349 touch-screen remote control. Over half of Sonos customers now use the app, which links to the stereo over a Wi-Fi network.

Several television manufacturers, like Mitsubishi and Samsung, are following suit with smartphone remotes, and phone apps are part of both Apple and Google’s TV offerings.

Technology giants like Apple and Google, along with a wave of Silicon Valley start-ups, have a vision for the future that would make channel-surfing seem quaint. Soon, they believe, viewers will choose from vast pools of video without distinguishing between TV broadcasts and content streamed over the Internet.

For the complete article, please click here.

Apple ipad- Fastest Adopted Consumer Electronic Device

The Apple iPad is proving to be one of the most successful consumer electronic devices of all time. Despite much derision at its time of launch, the iPad is now selling faster than the iPhone and leading the way in the worldwide tablet revolution.

At this rate, the Apple iPad is not only flying of the shelves faster than the iPhone, but is also far ahead of entire categories of tech products like the 350,000 DVD players that sold in the first year. The iPad will reach sales of $9 billion in 2011, making it the fourth largest category of electronics and putting it ahead of cellular phones and game consoles.

The rest of the market is obviously affected by the huge success of the iPad, which is the reason why so many manufacturers are starting to produce similar tablets of their own. However, only time will tell if the Microsoft and Google Android tablets starting to hit the shelves have what it takes to acheive the same kind of consumer excitement as the iPad.

For the full article, please click here.

New White Paper, Google TV - Searching for Success

Google is entering the market for smart TV at a time where there is much indecision about the ideal technology solution. The market is searching for a solution that will benefit the TV manufacturer, content owners, and advertisers.

This new white paper from Parks Associates looks at Google's strategy and the current market conditions for connected CE.

Click here to download.

TiVo: It's a UI, not an OS

Some clarification on the blog post yesterday. TiVo is supplying Best Buy (Insignia brand products) with its UI that will provide access to online content services such as Amazon Video On Demand. I would say that this then puts the TiVo offering more on par with DivX TV. The choices for heavy lifting for connected TVs (at least for embedded solutions) is more IBM, Google, and Yahoo!

Google TV - Searching for Success

For at least a year or so, I've been doing my best to categorize all of the different solutions that are specially designed to bring Web content and applications to a "connected TV." I'm putting the term in quotes because there will be different ways to experience connectivity between the Internet and the display other than an embedded solution. For example:

• Connected game consoles: In the U.S., penetration of Internet-connected game consoles jumped 38% between 2008 and 2009, and are now at about 30 million households. We know that the console is being heavily implemented as a set-top box, as more than one-third of Microsoft Xbox 360 users are watching video on at least a monthly basis. We believe that online video revenues at the game console alone brought Microsoft and Sony north of $500 million in 2009.
• Connected TVs: Penetration is quite limited to date, but we expect that unit sales worldwide will exceed 130 million by 2014. In short, Web connectivity will soon become a built-in ubiquity in most televisions.
• Connected Blu-ray Players: Just bought a flat-panel TV and don't feel like replacing it for a Web-connected set? For a smaller investment, many Blu-ray Disc players come equipped with many of the same content services as what you'll find on the high-definition displays.
• Networked Digital Media Players: These are the devices such as Apple TV, the Roku player, and others that provide a relatively lower-cost option to connect a TV to online video services. Although we're projecting a pretty quick peak of sales in the U.S. followed by a decline as online video access becomes embedded into consumer electronics products, alternative set-top box platforms may have more significance in international markets, where they may actually be branded by broadband and pay-TV operators.

The market potential for Web-connected consumer electronics is significant, with annual worldwide shipments nearing 300 million units by 2014.

In light of this opportunity, 30+ technology companies are all aimed at bringing Web services to consumer electronics. Among them are companies in the "Connected Television OS" area that are working to build in applications and Web services directly into the TV itself. Among them are:

• Accenture;
• DivX;
• Google;
• IBM; and
• Yahoo!

Of course, while there are companies advocating an embedded solution, companies such as ActiveVideo Networks and Clearleap argue that Web services and interactivity can be delivered with transcoding done in the headend. Further, companies like Vuze indicate that the PC in the home is capable of transcoding and serving as an intermediary between the home computer and the television. So, there's plenty of room for debate.

Google is entering the market at a time where there is much indecision about what will be the ideal technology solution that will benefit the TV manufacturer, content owners, and advertisers. Certainly, Google's presence in Web advertising, including delivery and analytics, provide it with a huge potential for scale. One problem that has been troubling to the television manufacturers is how big their share of any potential revenue for online content might be. To date, the business models between television manufacturers and content providers or aggregators have been revenue sharing based on online video orders. So, the TV manufacturer may get a few pennies per VoD order. In a time when online video revenues on connected CE devices other than the game console are forecast to be around $180 million in 2010 and growing to perhaps $800 million by 2014, it won't be a a huge revenue stream. So, a deal with Google that can add advertising revenue to transactional monies would be a gain for the manufacturers.

Is Search Really a Problem?

So, while Google comes armed with the business model, I do wonder if Google has developed a solution for a problem that I'm not convinced is as dire as they indicate. After all, they lead their explanation video about Google TV discussing why it's difficult for consumers to find the content that they want on TV. Really? We might quibble about the benefits or detriments of the various electronic program guides that are in use today, but I think that the EPG is doing an increasingly effective job of allowing for search and discovery. And, if the Google TV use model means I literally have a Logitech keyboard positioned on my knees to manually type in search entries, I'm not convinced that this use case is going to attract many folks. Granted, the keyboard in the living room is going to be unecessary for most folks, as smartphones, tablet computers, and other interfaces allow for more text entry, but I'm just not sold on search (as Google presents it) as the killer app here. The television service providers are innovating every day with their own program guides, search, discovery, and recommendations. I don't think anyone will be lacking with decent search options for their TV.

Where are the Content Partners?

Another issue with Google is how much high quality content they'll bring to the table. Google's main content partner today is Sony. They will need to bring a number of major content players into the fold to have a successful solution. I'm sure that Best Buy will probably offer up Roxio CinemaNow content, but they'll have to expand beyond that. What's driving the demand for connected TVs is premium content, as the results from our recently completed Digital Media Evolution II study indicates.

I think that providing premium video-on-demand content is going to continue to be an area where the pay-TV providers excel. A couple of weeks ago, I had some time to try to catch up on video-on-demand. With credits available on my VUDU account, I tried that platform first. What I quickly found is that my Verizon FiOS service had the same movies, and the high-definition versions were available a whole lot quicker than the download for VUDU's HDX format. Now, The Wall Street Journal is reporting that the studios and the operators are in discussions to signficantly reduce the window between the theater and pay-TV availability. This makes sense. Interactive digital TV services are already in more than 40% of U.S. households. By 2014, it'll be more than 60%. That's a huge scale that the pay-TV operators have as an advantage. So, what are the online services going to offer that's any better?

Is the Walled Garden Really the Evil Empire?

Related to this point, Google's foray into a very open Internet approach is being much ballyhooed as a way of throwing off the shackles of the walled gardens provided by TV service providers and today's connected CE offerings. I'd argue that this latest round of consumer research would indicate that demand for open Internet access isn't what's driving consumers to a connected TV. They want good content, and they want it easy to find. Take a second look at the chart. I'm just not convinced that consumers want an open Internet experience for calendaring, music, photos, and commerce. I'm much more convinced that tailored applications - including tru2way, EBIF, LUA-based interactive features (available today from more and more pay-TV operators) are going to bring the Interactivity of the Web without the "Wild West" component of many fits and starts with searching, text entry, the back button, etc. If the walled garden approaches can deliver this in a controlled environment that doesn't overwhelm the average user and helps a provider deliver the highest-quality content available, then I don't see why everyone would necessarily want a browser-based approach in their connected TV.

Will Service Providers Care?

DISH Network is a partner here, but will Google find additional service providers to join? One question is what's in it for the providers? For DISH, a current lack of good interactive applications would be a reason for joining the fold. But, will you see the cable industry or AT&T or Verizon knocking on Google's door anytime soon? I doubt it. These companies are already developing their own interactive applications and services. In fact, if you compare the revenue potential between the online and pay-TV worlds, it's clear operators will still control the lion's share of revenues for services such as premium VoD and for interactive advertising. The revenues in the online world are certainly nothing to sneeze at, but the operators don't have to cede control to Google in order to pocket some serious revenues in the next few years.

Multi-platform Measurement

I do think that Google's entrance will now start to help refine how providers of online assets will work with consumer electronics companies to implement more multi-platform content and multi-screen audience measurement. The measurement and reporting is a particular area where some work is needed. The more that content providers, online companies, and CE manufacturers can work together to build consistent reporting and feedback mechanisms into their products, the more effective they will be in monetizing their Web services and attract more premium partners.

See You in a Few Weeks

This announcement certainly comes at an intriguing time, and we've got all kinds of speakers and sessions at the CONNECTIONS™ 2010 event that will speak directly to the rise of connected consumer electronics, digital content, and evolving business cases. We have keynotes, presentations, and discussions with many of today's leading vendors of connected TV and digital media solutions - among them 2Wire, Actiontec, ActiveVideo Networks, Alcatel-Lucent, Allegro Software, Alticast, Arxan Technologies, AT&T, BigBand Networks, BridgeCo, Cisco Systems, Comcast Interactive Media, Comcast Spotlight, comScore Inc., DivX Networks, Epix, ExtendMedia, Gigle Networks, IBM, Intel, Intertrust (representing Marlin), Latens, MEC (WPP’s Group M), MOD Systems, Motorola, Navic at Microsoft, NDS, Nielsen Online, Opera, Orange/France Telecom, PacketVideo, RedMere, Rovi, Roxio CinemaNow, Samsung, Sony, Technicolor, thePlatform, Verimatrix, Verizon, Vuze, XSpanD, Yahoo!, and Zenverge Check out our lineup, and we hope that you can make it to Santa Clara in a few weeks!

Parks Associates cited in Financial Times

Google and Intel are expected to announce a significant breakthrough into consumer electronics and the broadcast industry this week with the launch of a “Smart TV” platform reported a recent Financial Times' article.

With TVs, Blu-ray players and set-top boxes rapidly adding wired or wireless internet connectivity to their features, a host of companies are tailoring and integrating web-based content for living room entertainment.

“If you had asked me a year ago, I would have said no way Intel and Google could make an impression,” said Kurt Scherf, principal analyst at Parks Associates. “But Intel looks to have gained some traction and the operating system space is so wide open that it’s a case of why not Google at this point.”

Google is expected to call on its Android developer community this week to create applications for TVs and its software could prove popular if it also promises advertising revenues for TV manufacturers.

“Consumer electronics manufacturers want a piece of this [advertising] pie and Google is the player in this very crowded space that can immediately offer them revenue share,” said Mr Scherf.

To view the full Financial Times article, click here.

Accenture joins the list of connected TV technology vendors

At the NAB show this week, Accenture announced its Over-the-Top TV solution. Key features of the Accenture solution include:

• Broadcast TV with Video on Demand and interactive application, which enables viewers to see any movie or TV series episode they may have missed. The interactive application enables operators to gather real-time audience data.
• Personal TV experience, which enables individual household viewers to create a personal profile, customize TV needs, create categories, and share contents with friends, schedule programming, and purchase and record content, over their PC or mobile phone.
• Targeted personalized advertising, which enables providers to tailor advertising to each user, according to favorite content, most-viewed content, and community profile. Users can also choose to receive the advertising that meets their interests, which can help reduce “channel surfing.”
• Interactive advertising which enables viewers to express their interest in a product shown on a TV commercial, via a “wish list” application that the user can access later through a web portal.

Accenture is joining a growing list of companies that are working to supply TV manufacturers with solutions to bring Web content to high-definition displays. The Accenture effort looks like it would compare with efforts from the likes of DivX, Google, IBM, and Yahoo!

55% of TVs to Be Internet-Connected by 2013

In a recent study, the internet surpassed TV as the “most essential” medium.

By 2013, 55% of all TV models shipped by manufacturers will have a built-in web connection, says Steve Koenig, director of the Consumer Electronics Association.

The internet-connected TVs will not require separate boxes, software or setup. Only 18% of TVs shipped from manufacturers have built-in web connections today.

Partnerships have been developed...Google is in a partnership with Sony and Intel to make televisions act more like PCs, allowing users to access any site they want. In addition, Intel is working with some of the big names in the industry to get its processors into internet-connected TVs. Samsung is working on its own applications platform. Yahoo has built a user interface for internet TV that displays widgets for weather, news, shopping and social networking which run across the bottom of the screen.

Read the full article here.

Google Said to Work on TV With Intel, Sony, Logitech

Google is working to bring Web software to televisions through a partnership with Intel, Sony, and Logitech , according to a recent BusinessWeek article.

Moving beyond the Internet search engine business, Google is now challenging companies like Yahoo, TiVo, Rovi, and Microsoft in delivering the Internet to TVs.

Parks Associates VP of Research, Kurt Scherf is quoted in the article, “it’s a sign of the legitimacy of Internet connectivity moving well beyond the PC and mobile spaces, which Google has tackled already. It completes the third leg of the stool.”

More than one-quarter of TVs purchased by U.S. consumers in January already are capable of linking to the Web through a Wi- Fi or Ethernet connection, according to another research company.

Web-enabled TVs currently on the market allow users to watch YouTube videos, view online photo albums, play games and stream movies from Netflix Inc.

To read the full article, click here.

Google TV

The New York Times is reporting that Google, Intel, and Sony are at work together on a Web television for both set-top boxes and connected TVs. Whether it's true or not, the three companies would appear to be good partners:

• Google has an interest in extending its search and advertising placement expertise to the TV screen, as evidenced by its tests with DISH Network;
• Intel faces challenges in convincing consumer electronics companies to use their Atom processors instead of existing suppliers; and
• Sony is trying to revive its brand.

What is very interesting about Google's play here is what impact this might bring to television and online video advertising. To date, we haven't seen much success with online video advertising, and the model for consumer electronics companies in delivering Web-connected products is to work with content agregators (Netflix, Amazon, CinemaNow) and get a small share of the revenue generated from transactional-based VoD orders. So far, the advertising slice of the pie has been so small that it really isn't even a discussion point for revenue sharing. With Google involved, I wonder if they're going to sweeten the pot for CE manufacturers to entice them to leave Yahoo!, DivX, Rovi, IBM, or any of the other Web-on-TV solutions providers.

Who's going to control search and discovery on the connected TV?

With The Wall Street Journal today reporting a Google test of a service to allow consumers to search for both broadcast and broadband content, and TiVo's announcement from last week regarding TiVo® Premiere and TiVo® Premiere XL box experiences, I do think that the battle for TV-based search, discovery, and recommendations is on in full-force. From Rovi, to DivX, and others, this is going to be a really hot space to watch.

Google's Stimulus Plan

Google’s announcement today that it will build an “experimental” fiber network to offer super fast broadband Internet access of 1 gigabit per second to between 50,000 to 500,000 U.S. households is the stimulus model for economic recovery. Google is investing its own cash surpluses, rather than deficit government funds, to create an information superhighway which will put the U.S. back on pace with Japan, France and other nations that already enjoy much faster Internet access for less cost per megabit. This investment will create jobs, upgrade our broadband infrastructure and push Internet access toward the inevitable market based pricing model, whereby those who greatly value really fast data speeds will pay a premium within a tiered price structure. Of course telcos and cablecos will vie for their share of the premium customers that Google’s experiment will identify. Will they build their own super highways or might they find themselves leasing capacity from Google?

The Google fiber network sidesteps the net neutrality debate, as theirs will be a private, opt-in network independent of the public Internet. If you drove to work this morning on one of the nation’s many toll roads or dropped off a child at a private school, you have confirmed the effectiveness of market based pricing. Today American Airlines announced that all but its frequent fliers will now be assessed a $50 fee for same day flight changes (formerly known as stand-by). As airlines have effectively used tiered pricing to survive and occasionally earn a profit, so will Internet providers who wish to offer a first class option.

Hey Goldman Sachs, what infrastructure investments will you be announcing this quarter?

4 Steps to Residential Energy Management

From most news sources this week we hear progress, or lack thereof, of our government’s work on a comprehensive health plan. The most credible voices of opposition hammer on the notion that loss of choice and control will reduce the ability for consumers to reduce the costs of their care. Apply that same thinking to energy consumption. Today I have the choice, on a balmy Texas-in-July afternoon, to reduce my energy consumption by changing the thermostat. But aside from choosing to be uncomfortable, do I know how to improve my energy efficiency? As green technology proponents frequently remind us, if we don’t know what our home systems cost to run, we certainly are not equipped to fine tune them to more efficiently fit our lifestyles.

The four elements required to put the consumer in charge of his or her energy costs are:
1. Sufficient motivation for the consumer to make changes in current consumption behavior (this is implied).
2. An understanding of the energy used by each home system, measured in kilowatt hours and dollars.
3. The ability to program and control at least the major home systems, using common and easy to understand intelligent user interfaces.
4. A feedback loop which confirms which systems are responding to which programs and to what extent they are impacting consumption of kilowatts and dollars.

It is interesting to watch the development of these four elements. Parks Associates will, in the next thirty days, complete a survey of consumers which will quantify how strongly consumers desire the ability to impact their energy costs. Are they willing to purchase devices and technologies that will enable elements of control and monitoring? Are they (we) willing to replace costly home systems with ones that can be controlled and programmed? Are we willing to pay service companies, perhaps including our electric utility, our broadband and phone providers, or local tradesmen to install devices with a potential payback of a year or more? These answers are critical to the growth potential of a number of emerging industries.

The market is awash with the promise of new devices from companies as diverse as Black & Decker, Google, GE and Control4 – all with the technology to monitor or control some number of home systems. Network infrastructures inside the home are rapidly maturing. Unlikely partners ZigBee and HomePlug have joined forces to develop the Smart Energy market requirements – a roadmap of sorts to suggest how wireless and wired technologies may be used to develop an in-home control network. The table is being set and the silverware polished for arrival of the Big Guests – that is, energy utilities with their Advanced Metering Infrastructure (AMI) or Smart Grids. Analysts Bill Ablondi and Farhan Abid report that nearly 9 million AMI meters are currently installed on U.S. homes, and that Obama’s Stimulus Bill fuels the rapid deployment of Smart Grids with $11 billion in federal funding.

The Big Guests are coming to the table and will be showcasing solutions, as currently in Colorado Springs and Austin, Texas, which provide consumers with frequent feedback on energy consumption. Here is how the party will unfold; as the Smart Grid is in place, we will see first a growing number of technologies that provide in home monitoring of our home’s usage. This will be followed by introduction of smart appliances – refrigerators and water heaters which, like existing programmable thermostats for HVAC systems, can be programmed. This development will create demand for simple unified interfaces – applications that bring the control of several appliances together under an orchestrated master plan. Finally, we will see our Internet, mobile phone and even TV service providers cautiously join the party – seeking to provide control applications as extensions of the mobile phone service, or as a widget on TV, with the assumption that simpler controls will garner a few extra dollars on the monthly bill.

Unlike the current health care policy quagmire, our stimulus dollars at work combined with private enterprise will empower consumers with a growing variety of technologies to tailor energy costs to meet particular lifestyle needs.