SecureNet pioneer home automation with Vodafone M2M SecureNet Technologies is a Ready Business Vodafone Power to you SecureNet Technologies case study Capturing a leadership position in the home automation market The home automation market is expected to grow by 25% each year for the next four years. A smart solution from SecureNet Technologies, backed by Vodafone connectivity, is well placed to capitalise. Such forecasts are attracting a host of entrants, all looking for a slice of this emerging market, all looking to establish some credibility. At the top end are energy and utility companies wanting to take central control of everything. The most likely to succeed are the ones with a history of monitoring homes. They will have proven technology, trusted by homeowners. The best placed are security firms. The challenge A connection that cannot fail SecureNet Technologies is a U.S.-based software company, launched originally in the Australian security market in 2003 by two brothers. It is now a global operation, sold as a white label, with customers in Europe, Asia and North America. In that time it has evolved from pure security to encompass home automation. “ Vodafone allows our customers to safeguard homes and businesses much quicker, more reliably and at a much lower cost. Ben English, Chief Marketing Officer, SecureNet Technologies “ The US home automation market was worth $3.6 billion in 2012. In 2019 it is estimated to be worth $16.4bn, an annual growth of more than 25%. “Essentially, our product is a rules-based notification system,” says Pat Carmody, National Sales Manager, SecureNet Technologies Australia. “Our heritage is in the security sector, and we understand the challenges of the security sector very well, but we are software developers. All we’ve done is add different solutions as part of a growing platform. Just as we would send an alert if a light came on, we can now send a signal to lock a door or turn on the heating.” The company has always maintained a position as a product innovator. It was among the first to offer a web-based management system for security devices and a Dropcam-like video service in the cloud; today it provides a virtual private network to outstrip the connectivity of traditional dial-up systems. “The VPN from the customer’s location to our service platform acts the same way as a secure, two-way tunnel,” says Chief Marketing Officer Ben English. “It’s always connected and constantly ready to pass an alert or a command back and forth. Traditional systems rely on an old technology where the home dials in every 3-4 minutes to check if a change has taken place. Our communication is instant. Whether you are across the street or across the world, if you press a button on your smartphone application to switch a light on at home, the light comes on immediately. There is no lag.” To win, SecureNet needed a connectivity partner capable of delivering this always-on access. It wanted a solution that could plug-and-play anywhere in the world, and a brand partner with the credibility to help convince new customers in new markets. The solution Global coverage provides total confidence “Vodafone was the only one able to give us a true global SIM,” says Carmody. “Redundancy is hugely important in this market – the device can’t fail to connect, and the Vodafone SIM automatically connects to another network should it be needed. It gave us a compelling advantage in the market.” 3 Pat Carmody, National Sales Manager, SecureNet Technologies Australia “ “ Vodafone was the only one able to give us a true global SIM. Redundancy is hugely important in this market – the device can’t fail to connect, and the Vodafone SIM automatically connects to another network should it be needed. It gave us a compelling advantage in the market. The bottom line Carmody says it was always the intention to expand beyond Australia, and using a local supplier would just not have worked. The Vodafone solution means SecureNet is ready to move on any market opportunity, quickly and consistently. For the home automation market, the US market is the most advanced and the largest opportunity. “Home automation is a good sell for security firms and bundling home automation with home security really resonates with customers,” says English. “Home security tends to be sold on fear – the threat of something happening to your home. Home automation allows us to have a more positive conversation: how can we help better manage your home. Security solutions typically see less than 18% market penetration; we expect home automation to be far higher.” SecureNet is adding up to 1,000 new connections each month, as the ‘ingredient brand’ behind its customers’ home automation solution. It is used by two of the biggest security providers in the US, with security bundled with home automation for one price. Carmody expects a total of 50,000 by the end of 2015: “No one else has the roaming SIM. It means we can ship and install the same device to Nebraska or Wagga Wagga, all off the same platform. This makes things easier for us to manage and faster for us to get to market.” “We’re at an inflexion point,” says Ben English. “Home automation is moving from the early adopter to the mainstream. We’re seeing more home automation devices in home improvement stores, builders are building homes with home control as standard, and utility companies are pushing energy management. As with solar power, I’d expect to see more government incentives for home owners to adopt home automation. Energy use is a major concern globally. • Delivers a future-proof solution capable of absorbing multiple streams of data while maintaining robust connectivity “We have a lot of customers in the construction sector and they love Vodafone. It’s simple hardware with no complicated wiring, they can just plug it into the home and it’s on. There is a decline in fixed-line technology; the real growth is with wireless.” About the customer Working with Vodafone brings SecureNet closer to the broader world of smart cities, with more opportunity to mix with Vodafone customers in retail, local government and utilities. “We look forward to building synergies within the Vodafone M2M community,” says English. The future, he says, is greater integration with every smart device in the home: “Our skill is in developing the software. We’ll be able to communicate with more smart devices, analyse the data and make automatic adjustments based on consumer behaviour. We can predict with a degree of reliability what the customer is going to need. “Vodafone allows us to deliver our solution much quicker, more reliably and at a much lower cost.” • Ensures global connectivity redundancy from one SIM, managed off one platform, simplifying go-to-market • Provides the scale to add 1,000 new connections each week, with a target of 50,000 connections worldwide by the end of 2015 • U.S.-based software company with a security background, founded in Australia in 2003 • SecureNet makes homes and businesses safer, more convenient, and enjoyable. It provides interactive home security, video monitoring, environment control, energy management, and alarm monitoring • securenettech.com m2m.vodafone.com Vodafone Group 2014. This document is issued by Vodafone in confidence and is not to be reproduced in whole or in part without the prior written permission of Vodafone. Vodafone and the Vodafone logos are trademarks of the Vodafone Group. 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