Essential Install June 2017 | Page 21

Essential Install | Smart Thinking The End Of The World Is Nigh, Or Is It? Bruno Napoli of IoT remote monitoring platform manufacturer Kirka recently wrote an article arguing that a large part of the installation market is going to switch for good from installers to Google, Amazon, Facebook and Apple (GAFA). Daniel J Sait takes a view. Big companies have changed the market, but will they replace it? Bruno’s article when fi rst published on Ce Pro US and again on Ce Pro Europe caused quite a stir with installers complaining he was talking the industry down. Bruno did raise some interesting points however, so we thought it would be a good idea to take a look. First up, Bruno argued that GAFA is about to take over a large part of the market with its new affordable smart solutions. Now whilst it is undeniable that these companies have entered the market and will change it, does this mean less work for pro installers? We would argue it could lead to more. GAFA will always be operating at the lower end of the market, a place where DIYers will operate and often where margins are so low that pro installers would not want to go there anyway; so is GAFA really taking work from installers? Or just creating a new category that some larger install companies might be able to operate in delivering large numbers of installations? Or one that whilst not presenting an actually opportunity to many, may create awareness for the concept? I would argue that this presents an opportunity. Look at the functionality that GAFA can provide on their own, it’s basic and not that reliable. Take Amazon Alexa for example, on its own, how useful is it really? It’s only good when paired with a proper home automation platform. Google and Amazon won’t have it all their own way; more sophisticated systems like Josh.ai are challenging them and the larger home automation platforms will develop their own version – it’s already happening. We also have to ask ourselves, what type of industry do we want to be? We need decent margin by proving a service that people can’t get elsewhere. GAFA will never get anywhere near offering what a pro installer can. Much of this is just evidence of a more mature market; did quality car manufacturers stop production when the Mini came out? Of course not. One of the other points Bruno made was that the install industry cannot compete with GAFA marketing budgets. Well he is right there, we can’t, but why would we want to? You could argue that large corporations are doing us a favour spending billions promoting concepts that we know how to do better. So what if lots of people rush out and buy an Amazon Echo? They will realise it can’t actually do very much on its own and even if they add lots of IP addressable products at the around the same price point; the functionality is still going to be well south of what can be achieved. The other factor here is what I call the ‘bother’ factor. Yes, a consumer could buy lots of kit themselves and install it, the argument goes it’s so easy now with everything being self-discoverable via IP. Really? How many times in your life have you purchased something or embarked on a project thinking it was going to be easy, only to realise actually it’s not and you just don’t have the knowledge or the time to get it right? In theory everyone can do their own gardening, so why then are garden and landscaping services such a huge market? Companies providing these services don’t sit about worrying AVATR RACK www.avatrav.com AVATR inCloset Rack The AVATR inCloset Rack is the perfect solution for storing and accessing AV or networking equipment, when installing in the home or office. The inCloset Rack’s slide & rotate function provides quick and easy access to the rear of installed equipment. AVATR inCloset Rack Features Distributed by June 2017 | 19