NEWS

CE, IT Professionals Partner for Installations

By Judy Grillo CE Pro Magazine – pages 168–172 of the November 2006 issue

Today's custom installations are fueled by clients' demands and trends in technology. One of the fastest growing trends is the adaptation of computer–related networking by the custom industry, meaning tomorrow's installations might include more media center PCs and IP–based systems. CE professionals and IT providers may not have traditionally been involved in the other's business, but now, full–service integrators are expected to set up networks, deal with security issues and communicate across CE and IT product categories. According to the CE Pro 2006 Readership Study, when asked to indicate which home networking and communications products/systems your company currently purchases or is likely to purchase in the next year, 76 percent said wireless networking; 75 percent said network hubs/routers; 59 percent, telephone systems; 53 percent, cable/DSL modems; 52 percent, computers and monitors; 49 percent, computer peripherals; and 48 percent, residential gateways. But while the market is hot and consumers are ready, it appears that the members of CE and IT channels are still trying to figure out how partnerships between them will work. Merging Specialties HCI Networking of Champaign, Ill., started wiring networks into custom homes about six years ago. Their offerings grew as builders requested a variety of services. "Our first instinct was to partner with folks who were already the experts in home automation and entertainment, but we got quite a bit of resistance from shops in the area," says David Kramer, HCI president. Kramer says HCI was happy to go in as the guys who brought the wiring and let partners go in who already had the knowledge and skills on the custom side. But the plan didn't work out that way, so HCI brought a custom installer in–house, talked to vendors and trained its own staff. "While the lines are blurring between what's IT and what's CE, you have to have expertise in both areas to survive," says Kramer. "But there are a lot of IT shops that don't want to heavily invest in CE and prefer to partner based on skill sets." Take Jude Daigle, whose Pennsylvania–based company, Computer Connections, moved into the residential space in 2003 with more than 25 years of IT experience in the business, education and government markets. The expansion grew from Intel pilot programs and requests from commercial customers for help setting up home offices, digital dens and entertainment centers. During this time, Daigle has built partnerships with contractors, builders and electricians who generate business for each other. "But our local CE integrator sees us only as competition, so we've aligned ourselves with someone outside of the area to enhance our offerings," says Daigle. He believes his custom PC brand, AVidius Media Systems, can co–exist alongside CE proprietary technology. "We're all trying to get to the same end, even if how you get there may be different." Technocom of Wilsonville, Ore., has implemented a different strategy. This past February, five Northwest technology companies branded as Technocom and became a single–source technology provider of communications solutions for both home and office. While the residential services division leads with solutions from AMX, Crestron and Lutron, president Kevin Doherty says that "we have to be adaptable to work with Windows–based companies." Doherty believes that the digital–home platform of the future will go to the IT side, but products just aren't ready yet. "If the customer wants Microsoft Media Center we can do it, but we're not leading with it," he says. In Sammamish, Wash., just a short drive from Microsoft headquarters, Steve Cappo of eHome Integration says he "just doesn't see a need for collaborating with other providers right now." He brings 20 years of experience in software development, networking and integration to the residential market, specializes in Microsoft Media Center Edition solutions and was one of the first Lifeware dealers. Cappo's customers are "technically–savvy individuals who do a lot from home," he says, and the sweetest spot in his offerings is managed services –– he functions as "digital concierge" for most of his clients. Explore and Unite There's a myriad of business and technological issues keeping CE pros and IT providers from fully engaging with each other, but manufacturers, distributors and industry associations are designing ways to link the two worlds. In 2005, NASBA –– the largest professional trade association for Channel Resellers in North America –– and the Consumer Electronics Association (CEA) partnered to develop and launch the NASBA Digital Home/Edge Program. "If you take a look at NASBA Digital Home members who come from both 'camps,' the truth is that these two seemingly disparate groups are in fact very much the same," says Bill Booth, VP Strategic Alliances, NASBA. "CE pros and IT providers are both technically savvy professionals who manage diversified product and service offerings, have similar business models and staffing needs, and require manufacturer support that goes beyond gross margins." NASBA is sponsoring the Electronic House Expo (EHX) Digital Convergence Pavilion this month with the goal of bringing vendors, custom installers, IT resellers, service providers and home integrators together in one place. Robert Danese, NASBA's executive director, thinks that all the industry players need to go beyond the confines of their comfort zone and engage with one another through this convergence phase. "As in any industry, it's great to know all that you possibly can," he says, "but no one knows it all, so surround yourself with the right people." Keep It Simple "There is an immense market for CE right now, and a demand for services that exceeds the availability of competent integration firms," says David Epstein, who founded Sound Solutions of Culver City, Calif., in 1977. He attributes what's happening in the custom market to a combination of consumer awareness and positive technology changes, but cautions peers "not to simply look at manufacturers' data and take the functionality for granted in terms of what they're offering." Epstein credits 30 years of success delivering systems integration in part to his company's ability to resist the sex appeal of the "new whiz–bang, full–feature, it'll–do–everything magical boxes." He thinks that what consumers really want is a service provider to deliver systems, functions and features that are easy to use and will be both stable and reliable for a very long time. Make it easy for the end customer. We can all come together on that.

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