Where did you come up with the $36 per year?
From the "pennies per month per user" at scale. This is based on the assumption of around 100 transactions per home per day. I can provide the detailed analysis of this if that is of interest.
If your goal is to create a business model that earns reoccurring fees then yes.. IMO the cloud is a good way to do that.
I understand the discussion to be around providing any home automation offering that is viable in the market place. The cloud offers an opportunity that should be explored, and not categorically ruled out on the basis that it has specific disadvantages. This has been my point all along.
Lighting will require electrical work which most people simply cant do on their own.
Nope, not in the example I gave, which included lighting appliance modules and motion detectors that are wall wart style. Other wall wart style device possibilities include temp sensors, flood sensors (wall wart plus dongle), CO sensors, etc.
Again, this comes back to the assumptions you are making about the applications being deployed. For some applications, this approach won't bode well. For others, it does. The point is not to rule out the approach because it doesn't work in all cases.
It is my opinion that the home depot lighting customer is the guy who is not going to pay a monthly fee.
That may be so, and this hard to argue without actual market data. It's worth noting that these customers are all paying monthly fees for phone, cable, Internet, etc. They are not opposed to paying monthly fees for home services. It may rest in how the solution in marketed.
Why are you SIGNIFICANTLY increasing the bar? Are you saying that a hardware manufacturer is smart enough to create an easy to use wizard for the masses to access but not smart enough to create a standalone wizard for a single user? Which is it?
No, that is not the point. I am NOT saying vendors can create a Web-based software interface that is usable, but not a PC based interface that is usable.
Rather, the point is around installation, setup, operation and troubleshooting. In many cases, it is far, far, far more feasible for an enterprise to install, setup, operate and troubleshoot a service in a dedicated, commercial grade environment (i.e in the cloud) than it is for a consumer to do so on their own PC.
I'll summarize the advantages I've argued for of a Web based controller as follows:
1. Lower cost of entry for consumer to get certain applications deployed in the home (i.e. one lighting appliance module plus $3/month service, compared to one lighting appliance module plus one home controller.)
2. Ability for provider to physically access controller infrastructure for all consumers at a single locations (rather than having to roll a truck.)
3. Increased performance of application functionality that relies heavily on other services and data out in the cloud.
4. Ability to deliver functionality based on aggregate customer info.
5. Ability to acquire recurring revenue customer relationship.
You might not agree with all of these assertions. (Some are more clear cut than others.) You only need to agree with one, however, in order to agree that is it a false claim that there are no advantages to a cloud based controller. This is really the point I've been trying to make.