1.
Martin Cullum – Bell Canada – Chairman
2.
Leo DelZotto – Tridel Corporation – Vice-Chair
3.
Roy Kolasa – Honeywell International – Vice-Chair
4. Robert Becker - Leviton Manufacturing Co., Inc.
5. Jonathan Cluts - Microsoft Corporation
6. Jeff Cove - Panasonic Corporation of North America
7. Jonathan Cowper - AT&T
8. Dennis (DJ) Crane - Invensys Controls
9. Carin Falconer - CompUSA, Inc.
10. Trevor Foster - Trammell Crow Company

11. Pete Griffin – RadioShack
12. Robert Huggard - Direct Energy
13. Richard LeBlanc - Siemens Building Technologies, Inc.
14. Steve Nguyen - Echelon Corporation
15. Carol Priefert, Whirlpool Corporation
16. Gene Shedivy – Trane
17. Andrew Stroede - Panduit Corp.
18. Wolfgang Wagener - Cisco Systems, Inc.
19. Ron Wilson - Vantage/Legrand
20. Ron Zimmer, Continental Automated Buildings Association (CABA)

• CABA’s Research Council
• IHA Originally founded as a non-profit in 2000
• Comprised of most influential companies in North America
• Recognized as the ‘go-to’ organization
• IHA was integrated into CABA on July 1, 2006
• The Continental Automated Buildings Association (CABA) was formed in 1988
• As a market accelerating research arm for CABA, through large-scale pilots and smaller, faster projects that address pressing needs, the IHA-RC provides a way for members across industries to work together to develop and test new, innovative home and commercial solutions under real-world conditions, executed by its members.
• The resulting quantitative or qualitative research reports, white papers and executive summaries are made available to Research Council members and at times, the industry at large to support internal business decisions and plans.

Full Advisory Board Members:
Affiliate Members:

Career
Help me with my career!
Entertainment
Entertain me!
Family
Help me take care of my family!
•
Productivity
• Work Skills
• Communications /
Scheduling
• Commuting
•
Audio
• Video
• Audio / Video
• Gaming
•
Health & Fitness
• Household Chores
• Home Systems
• Communications /
Scheduling

Laundry Time: Designed and built the Laundry Time system, which connects a washer and dryer to a home network and delivers messages about the status of the laundry and washer/dryer to home PCs, TVs, and cell phones. After quality and safety testing, the system was approved for installation, and the Internet Home Alliance commissioned
Zanthus to conduct a consumer trial of Laundry Time. Objectives of the Laundry Time inhome pilot study were to gauge consumer reaction to the Laundry Time messaging system and its functionality; obtain feedback on the interfaces (phone, PC, TV screen) and system usability aspects; and understand their impressions of the laundry messages that were delivered.
• Whirlpool, Hewlett Packard, Microsoft, Panasonic and Procter & Gamble
• Project Completed Fall/06.
Microbusiness & Small Business Managed Services Needs Assessment
Study: to gain intelligence that enables members to offer/utilize informed research on the total business communication solutions desired by SMBs (1-100 employees).
• AT&T, Cisco, Costco Wholesale, HP, SupportSoft and Level Platforms
• Final report delivered in early February/07

IPTV2 Interactive: to learn about potential business models for using advanced television programming; explore new advertising potential and interactive capabilities and new message delivery; and create adjunct experiences to live and recorded programming and interactive capabilities.
• AT&T, Cisco, Disney, Campbell Ewald, Digitas & Tandberg TV
• Conduct research late February/07
• Final report in late March/07
Senior Housing: to identify digital home solutions for the 50 + market to enhance their lives and encourage them to live more independently.
• Whirlpool, AT&T, Echelon, Microsoft, Masco, NAHB
• Conduct research late February/07
• Final report April/07

to educate the kitchen and bath industry on digital / entertainment consumer usage in the kitchen; and provide an updated view of electronics, appliances and entertainment in the kitchen as it relates to the home.

to investigate the most promising concepts that emerged from the first study, likely involving subsidized content delivered via cell phone and/or vehicle-based systems such as GPS.
• AT&T, GM/OnStar, Cisco, Disney
• Proposed launch in mid to late February/07
a collaborative effort between IHA-RC and Information Storage Industry Center
(ISIC) at the University of California, San Diego, seeks to generate findings on the state of the market for the three connected home ecosystems of interest
(family, career and entertainment); and to provide consumer insights designed to facilitate the generation of new product/service concepts. This program will provide a general understanding of each ecosystem, including emerging trends.

IPTV – Consumer Perspective
Digital TV Demand Study, Jan. 2006 : IPTV Overview

Goal for Consumers - IPTV
TV Channel Package Preferences
(Top-2-Box; Very Desirable)
Á la carte channel selection
53%
Flat rate channel selection
Base TV channel package, plus á la carte
Tiered channel selection
14%
48%
45%
0% 20% 40% 60% 80% 100%
• A la carte or flat rate channel selection is desired

Goal for Consumers
HD channels
Search program guide
Parental Controls
Video customization
Program guide thumbnails
Program advisor
Multiple Picture-in-
Picture
0%
48%
56%
Desirability of
Video-Related Functionality
(Top-2-Box; Very Desirable)
27%
21%
35%
30%
21%
20% 40% 60% 80% 100%

Profile of Likely Adopters - IPTV

Home Networking Study
This research was conducted during Spring 2006, in two phases:
Phase 1 –Channel Interviews
• Installers/integrators.
• Tech home builders.
• PC service providers.
• Other sellers of network systems, components and services.
Phase 2 –Consumer Focus Groups
• Decision-makers from multi-PC broadband households.
• DIY network owners.
• Advanced network owners.
• Integrator “intenders.”

Home Networking Study
Conclusions & Recommendations
Consumers don’t think of networks as “networks,” but rather, as devices that happen to link to the Internet or each other.
HDTV and digital audio are the most desired future applications. Interest in home energy management is growing.
Users want “experts” to help with decision-making and installation.
They also want (but rarely get) personalized help with learning how to use their systems once they are installed.
Customized, intuitive user interfaces help users get the most from their systems.
Consumers are willing to tolerate security risks and relatively slow wireless speeds for the convenience of access to the Internet and to digital entertainment.

Home Networking Study
Conclusions & Recommendations
 Educate consumers about home networking benefits while addressing concerns about price.
 Avoid term ‘network,’ focus on solutions instead.
 Offer service and support for installation and maintenance .
 Collaborate with customer, cable and Internet service providers to minimize installation issues.
 Offer solutions with intuitive, customizable user interfaces, and train customers in their use.
 Offer modularsystems that allow easy add-ons as interest and budget allow.

Digital Youth Study
Youth Influence on Technology Buys
Laptop computer
DVR Subscription
Broadband Internet
HDTV TV
Color laser printer
Desktop computer
External hard drive
Standard color inkjet printer
All-in-one inkjet printer
No influence (1) Some influence (2-5)
0% 20% 40% 60%
Great influence (6-7)
80% 100%
Child made purchase by themselves (8)
QK. How much of the decision to purchase these products was influenced by children aged 8-18 in the family? (Base=both survey respondents and non-respondents who own the item)

Broadband Internet
Frequency of Broadband Use by Family Members
30%
50% C
80% B
67%
18%
85% CD
16%
10%
8%
2%
Mother
(A)
9%
7% A
Father
(B)
Parents
33%
D E
31%
CE
19% D
Age 8-10
(C)
16% E
2%
Age 11-14
(D)
Children
11%
4%
Age 15-18
(E)
Most days
Several times per week
Once per week to once per month
Rarely/never
Q39. How often is the item used by these family members? Letters denote statistically significant differences among segments.

Youth Technology Interests
Recent Video Related Activities
Done in Past 12 Months
41%
Purchased a DVD
18%
On TV, watched a free Video on Demand program/movie
0%
From the Web, downloaded or streamed a free video
On TV, purchased a Video on Demand program/movie
(not free)
From the Web, purchased a video and downloaded it
15%
10%
10%
27%
35%
20%
30%
0% 20% 40%
64%
65%
58%
62%
60%
81%
80% 100%
Child did it
Parent did it for child
Has not done
Q45. In the past 12 months, has a child in the household aged 8-18 done any of these? (n=805)

Conclusions
Trends in Families with Kids
• Address Mom the decisionmaker for kid-specific items – iPod, cell phone
• PCs proliferating with eachperson PC ownership.
• Address Mom for standard technology equipment: desktops, printers, broadband
• Laptop ownership growing by household. They belong to parents though (Dad).
• Focus efforts towards Dad who chooses the latest technology items – laptop, Media Center PC,
External hard drive, DVR
• Plan for broadband and PC stations in bedrooms.

Conclusions
Trends in Families with Kids
• Plan for digital music downloading, watching video on the Web, downloading games.
• Continued high interest in console/handheld games
(especially boys).
• Cell phones everywhere, carried by youth 11-up – and maybe younger.

Microbusiness & Small Business Managed Services
Needs Assessment Study: Change Initiatives
Change Initiatives of Interest
Multiple Response
Desktops and laptops
Web hosting
WiFi netw orking
VoIP
Local phone service
Long distance phone service
Internet service
Computer netw orking/servers
Netw ork security
Mobile phone service
Printers
Accounting system
Copiers
Data backup
Mobile data (email, Web access, company netw ork access, etc.
CRM (Customer Relationship
Management) system
VPN
HR system
Other
Base
Total
13%
12%
12%
12%
10%
9%
9%
7%
44%
22%
17%
14%
14%
14%
6%
6%
4%
3%
2% n=123
Microbusiness
(1-10 Em p)
A
Sm all Business
(11-100 Em p.)
B
46%
31%
44%
20%
18%
3%
13%
10%
17%
17%
14%
14%
A
13%
15%
5%
5%
5%
3%
5%
10%
13%
12%
13%
13%
11%
11%
10%
6%
8% 6%
5%
5%
0%
0% n=39
6%
4%
4%
2% n=84
The product mentioned most often as part of a potential change initiative is the PC. This category is followed in popularity by Web hosting, WiFi networking, VoIP and local & long distance telephone service.
• Small businesses are more likely than their microbusiness counterparts to express an interest in a VoIP-related change initiative.
Q43. Regardless of current initiatives at your company, which of these is your company most interested in implementing, restructuring, or upgrading?
Letters denote statistically significant differences among segments

Change Initiatives
Preferred Approaches to
Change Initiatives
Desktops and Laptops
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Printers
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Copiers
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Com puter Netw orking/Servers
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
WiFi Netw orking
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Netw ork Security
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Total
Using Internal
Resources
Using External n=55
Resources
34%
30%
0%
30%
5%
33%
11%
18%
22%
16% n=11*
35%
41%
10%
15%
0%
55%
10%
15%
10%
10% n=10*
34%
5%
11%
45%
5%
44%
11%
0%
45%
0% n=16*
16%
41%
0%
43%
0%
23%
8%
23%
35%
11% n=21*
32%
42%
0%
18%
8%
40%
14%
20%
12%
14% n=13*
17%
46%
4%
25%
8%
25%
29%
8%
34%
4%
Preferred Approaches to
Change Initiatives (cont.)
Local Phone Service
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Long Distance Phone Service
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Mobile Phone Service
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
VOIP
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Mobile Data
Installation/ implementation
Daily management/ maintenance
Repairs
Upgrades
None
Internet Service
Installation/ implementation
Daily management/ maintenance
Upgrades
None
Total
Using Internal Using External
Resources Resources n=17*
21%
14%
14%
17%
33%
27%
14%
10%
24%
24% n=16*
21%
36%
7%
15%
21%
35%
29%
7%
15%
15% n=13*
24%
25%
0%
25%
25%
21%
17%
17%
37%
8% n=15*
35%
31%
14%
7%
14%
58%
28%
7%
7%
0% n=8*
23%
32%
0%
39%
7%
30%
7%
16%
32%
16% n=16*
26%
26%
23%
25%
45%
14%
34%
8%
Most potential change initiatives involve the installation or set-up of IT or telco products; generally, target companies are split on the merits of internal vs. external services.

Change Initiatives
The top-ranked vendors tend to be original equipment manufacturers (OEMs) or alternately, primary service providers (in the case of telco). Target companies mentioned Dell most often, followed by HP, Verizon, Best Buy/Geek Squad and Staples.
Top-Ranked Vendors
(Mulitple Response)
Dell
Hew lett-Packard
Verizon
Best Buy/Geek Squad
Staples
AT&T
Office Depot
Apple Store/Apple Computer
Bell South
Office Max
Gatew ay
Circuit City
Local Company
Microsoft
Cingular
Costco
Vonage
Cox Communications
IBM
CompUSA
SBC
Microcenter
Alltel
Other
Total
(n=561)
2%
2%
2%
2%
2%
1%
1%
1%
1%
1%
1%
1%
60%
5%
4%
3%
3%
2%
31%
12%
10%
8%
7%
5%
Microbusiness
(1-10 Em p)
(n=289)
A
25%
8%
Sm all Business
(11-100 Em p.)
(n=272)
B
33% A
13% A
10%
10%
10% B
4%
7%
6%
3%
6% B
2%
3%
1%
2%
2%
2%
1%
1%
1%
2%
1%
1%
1%
54%
10%
8%
6%
6%
1%
3%
2%
1%
1%
1%
1%
1%
1%
1%
1%
1%
62%
4%
3%
4%
2%
3%
Q46. When you think about these vendors, which ones provide the best service experience?
Letters denote statistically significant differences among segments

Conclusions & Recommendations
Target small businesses
—organizations with ten to 100 employees.
For a variety of reasons, small businesses represent a better target market than microbusinesses. Compared to microbusinesses, small businesses tend to have a larger geographic reach, higher revenues and are more likely to own the requisite IT or telco products. Perhaps most importantly, small businesses spend twice or three times as much as microbusinesses on products of interest and accordingly, are more likely to outsource maintenance and/or repair services.
Promote key managed services.
The five most popular managed services consist of Web hosting; email/messaging services; servers, routers and LAN installation and maintenance; data backup and other, related services; security services; and storage services. These services are typically beyond the ability of small businesses to manage given that many have few, if any, dedicated IT/telco support personnel.
Establish a local presence and/or partner with an OEM.
In the main, target customers prefer to work with local specialty service providers, or alternately, with manufacturer’s directly. Speculatively, these preferences are likely due, in part, to the fact managed services are a nascent market and target customers consider these two outsourcing alternatives the most reliable options. Small businesses are generally risk-averse. This orientation means they tend to gravitate to known quantities, especially in the case of emerging markets. Strong customer service, that is, prompt service combined with demonstrable technical expertise, is of paramount importance to small businesses.
Offer compelling annual contracts.
Small businesses have a distinct interest in annual contacts provided there are clear, substantial cost-savings compared to a pay-as-you-go arrangement.

State of the Connected Home
Entertainment: Media Interests at Home
Media Entertainment at Home
% Very Interested
(Total Online HHs n=618)
Internet access 67%
Movies 52%
TV programming
46%
Recorded Music
Personal photo
(view on computer or TV)
38%
35%
Home video/movies 33%
0% 20% 40% 60%
Q42; Letters denote statistically significant differences among markets.
80%
2006 Brings:
DVRs in 25% of homes
HDTV prices drop and sales are up
Nielsen: Anytime
Anywhere Media
Measurement
Google Buys
YouTube
Comcast to sell movie downloads to
PC/TV/Portable.
100%

State of the Connected Home
Entertainment: Media Interests “On The Go”
Recorded music
Internet access
Radio music programming
Media Entertainment On-the-Go
% Very Interested
(TOTAL Online HHs; n=618)
22%
19%
18%
Movies
TV programming
Audio books
16%
11%
10%
0% 20% 40% 60%
Q44; Letters denote statistically significant differences among markets.
80% 100%
2006 Brings:
Slingbox AV & Pro
Slingbox DS?
Audible.com
Music Phones
You-Name-It Phones
Video iPod
Zune

State of the Connected Home
Family: Interest in Home Automation
Home energy consumption
5%
Home Automation
% Very Interested
21%
42%
18%
Heat/ventilation/ air conditioning
3%
37%
15%
Outdoor Lighting 32%
3%
15%
Indoor Lighting
2%
32%
0% 20% 40% 60% 80%
Total Online HHs (n=612)
Primary Market Consumers (n=318)
Mass Market Consumers (n=294)
100%
QY41
2006 Brings:
Home energy prices jump
Rising concern about effect of energy consumption on environment
Advances in control technology
(centralized, Web, wireless, voice)

•American Digital Dream
•Asset Management
•Digital Entertainment Migration
•Digital Entertainment Needs
Assessment (home & in-vehicle)
•Digital Youth
•Energy Management
•Future of Collaborative Work
•Health & Fitness Needs Assessment
•Health and Wellness Portal
•Home Automation Hub
•Home Network in a Box
•Home Networking Barriers & Opps.
•Home Structured Wiring
•Internet-Enabled Education
•IPTV Phase I
•Laundry Time Needs Assessment
•Laundry Time Pilot
•Mealtime
•Mobile Worker Needs Assessment
•Mobile Worker
•Online Family Calendar
•OnStar at Home
•Personal Media Storage
•Safe, Secure and Comfortable
•Subsidized Media and Location
Based Advertising Phase I
•TV Advisor
•Video Experience POC

Y o u r r I I n f f o r r m a t t i i o n S o u r r c e f f o r r
H o m e & B u i i l l d i i n g A u t t o m a t t i i o n
1173 Cyrville Road, Suite 210
Ottawa, ON K1J 7S6
613.686.1814
888.798.CABA (2222) 613.744.7833