Jan 2, 2019, 12:26 AM ETFireside Chat, Interview, Conference Presentation

a16z Podcast | Gateway Gadgets to the Internet of Things

Driver of Innovation: The proliferation of cheap sensors, batteries, and processors (the "peace dividend" from cell phone wars) has enabled the integration of connectivity into diverse products, ranging from standard appliances to niche items like moisture-sensing dog bowls.
Quirky/Wink Participation: Quirky entered the connected home space 18–24 months ago, identifying that 24% of community-invented ideas involved built-in radios, leading to a partnership with GE to build products and a customer-friendly platform.
Entry Point Products: Data indicates that light bulbs and light switches serve as the primary gateway product for the connected home ecosystem.
Adoption Threshold: Consumers typically acquire connected devices one at a time (e.g., a single light bulb) but begin seeking interoperability and harmonious ecosystems once they accumulate approximately three products.
Platform Challenge: The current retail landscape suffers from fragmented control, with users forced to manage disparate apps for individual devices (garage, oven, etc.) rather than a unified interface.

Future of Automation: While "nerdy" users currently create manual "recipes" or "robots" (e.g., garage closure upon waking), the trajectory favors programmatically learned behaviors based on motion sensors and location data (e.g., lights turning on when a user enters a room).
Unintended Consequences: Automation faces friction regarding privacy and context, such as lights activating in rooms where occupants are sleeping or spouses checking each other's location via garage door sensors.
Resolution Strategy: The industry is moving toward a middle ground where solutions address specific pain points (like 70% of homes using garage entries) and provide temporary digital access for caregivers without requiring total behavioral overhaul.

Consumer Motivators: Adoption is driven by a combination of convenience (the "lazy factor" of not leaving the couch) and tangible energy savings.
Hardware Longevity: Smart LED bulbs have an average lifespan of 22.3 years, shifting consumer focus from replacement costs to aesthetic integration and energy management.
Regulatory Drivers: New California commercial laws mandate motion and light sensors in all newly built offices, forcing lights to dim or turn off when rooms are unused.
Cost Parity: Residential IoT products like Wink are proving capable of meeting commercial energy codes, offering a lower-cost alternative to enterprise systems like Crestron or Lutron.

Appliance Innovation: Fully autonomous appliances (e.g., laundry folding robots) remain distant; near-term breakthroughs focus on countertop solutions, specifically an infant formula machine that mixes powder with pasteurized water and dispenses at optimal temperature.
Key Investment Priority: Smart locks are identified as the most critical next step, moving from radio-equipped keys to "invisible" hardware (e.g., "Luxor Invisible") integrated directly into door frames.
Identity-Based Access: The vision involves phone-based access control using fingerprint scanners and cloud services to track comings and goings for nannies, cleaners, and service providers.
Commercial Translation: The technology is positioned to disrupt hospitality (hotels) and rental markets by enabling keyless check-in and direct room access, eliminating front desk queues.
Adoption Timeline: Widespread transformation requires time for physical infrastructure upgrades (e.g., changing doors in Marriott's 500,000 US hotel rooms) and general market absorption, rather than immediate technology deployment.