Presented by
Success Factors in the Connected Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Audio Recording Information
Select Microsoft Office Live Meeting Replay to view the webcast in its entirety
Audio Part 1 ndash Success Factors in the Connected Home Webcast Slides 1 - 7
Click here to View Recording
Recording URL httpswwwlivemeetingcomccparksassociatesview
Recording ID P4WK9Q Attendee Key 8`4zW2
Audio Part 2 ndash Success Factors in the Connected Home Webcast Slides 8 - 42
Click here to View Recording
Recording URL httpswwwlivemeetingcomccparksassociatesview
Recording ID 9B7RDB Attendee Key 8`4zW2
2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Success Factors in the Connected Home
3
Agenda
bull Connected home infrastructure
bull Big data and analytics
bull Consumer interest
bull Early adopter experience
bull Market opportunity
bull What Sigma has learned
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
4
0
10
20
30
40
50
60
70
80
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
US Broadband Penetration of ALL HH
copy 2013 Parks Associates
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
5
0
10
20
30
40
50
60
70
80
90
2009 2010 2011 2012 2013 2014 2015 2016
US Smart Phone Penetration
copy 2013 Parks Associates
of ALL HH
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
6
Source Parks Associates
$001
$010
$100
$1000
$10000
$100000
$1000000
$10000000
$100000000
1980 1985 1990 1995 2000 2005 2010 2015
Price of Storage ($GB)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home - OEM
Virtual Device
Connected Device
Gateway
Device Monitoring and
Control
Device Analytics Modeling and Control Data Services
7
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Audio Recording Information
Select Microsoft Office Live Meeting Replay to view the webcast in its entirety
Audio Part 1 ndash Success Factors in the Connected Home Webcast Slides 1 - 7
Click here to View Recording
Recording URL httpswwwlivemeetingcomccparksassociatesview
Recording ID P4WK9Q Attendee Key 8`4zW2
Audio Part 2 ndash Success Factors in the Connected Home Webcast Slides 8 - 42
Click here to View Recording
Recording URL httpswwwlivemeetingcomccparksassociatesview
Recording ID 9B7RDB Attendee Key 8`4zW2
2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Success Factors in the Connected Home
3
Agenda
bull Connected home infrastructure
bull Big data and analytics
bull Consumer interest
bull Early adopter experience
bull Market opportunity
bull What Sigma has learned
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
4
0
10
20
30
40
50
60
70
80
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
US Broadband Penetration of ALL HH
copy 2013 Parks Associates
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
5
0
10
20
30
40
50
60
70
80
90
2009 2010 2011 2012 2013 2014 2015 2016
US Smart Phone Penetration
copy 2013 Parks Associates
of ALL HH
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
6
Source Parks Associates
$001
$010
$100
$1000
$10000
$100000
$1000000
$10000000
$100000000
1980 1985 1990 1995 2000 2005 2010 2015
Price of Storage ($GB)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home - OEM
Virtual Device
Connected Device
Gateway
Device Monitoring and
Control
Device Analytics Modeling and Control Data Services
7
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Success Factors in the Connected Home
3
Agenda
bull Connected home infrastructure
bull Big data and analytics
bull Consumer interest
bull Early adopter experience
bull Market opportunity
bull What Sigma has learned
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
4
0
10
20
30
40
50
60
70
80
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
US Broadband Penetration of ALL HH
copy 2013 Parks Associates
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
5
0
10
20
30
40
50
60
70
80
90
2009 2010 2011 2012 2013 2014 2015 2016
US Smart Phone Penetration
copy 2013 Parks Associates
of ALL HH
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
6
Source Parks Associates
$001
$010
$100
$1000
$10000
$100000
$1000000
$10000000
$100000000
1980 1985 1990 1995 2000 2005 2010 2015
Price of Storage ($GB)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home - OEM
Virtual Device
Connected Device
Gateway
Device Monitoring and
Control
Device Analytics Modeling and Control Data Services
7
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
4
0
10
20
30
40
50
60
70
80
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
US Broadband Penetration of ALL HH
copy 2013 Parks Associates
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
5
0
10
20
30
40
50
60
70
80
90
2009 2010 2011 2012 2013 2014 2015 2016
US Smart Phone Penetration
copy 2013 Parks Associates
of ALL HH
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
6
Source Parks Associates
$001
$010
$100
$1000
$10000
$100000
$1000000
$10000000
$100000000
1980 1985 1990 1995 2000 2005 2010 2015
Price of Storage ($GB)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home - OEM
Virtual Device
Connected Device
Gateway
Device Monitoring and
Control
Device Analytics Modeling and Control Data Services
7
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Infrastructure in Place
5
0
10
20
30
40
50
60
70
80
90
2009 2010 2011 2012 2013 2014 2015 2016
US Smart Phone Penetration
copy 2013 Parks Associates
of ALL HH
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
6
Source Parks Associates
$001
$010
$100
$1000
$10000
$100000
$1000000
$10000000
$100000000
1980 1985 1990 1995 2000 2005 2010 2015
Price of Storage ($GB)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home - OEM
Virtual Device
Connected Device
Gateway
Device Monitoring and
Control
Device Analytics Modeling and Control Data Services
7
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
6
Source Parks Associates
$001
$010
$100
$1000
$10000
$100000
$1000000
$10000000
$100000000
1980 1985 1990 1995 2000 2005 2010 2015
Price of Storage ($GB)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home - OEM
Virtual Device
Connected Device
Gateway
Device Monitoring and
Control
Device Analytics Modeling and Control Data Services
7
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home - OEM
Virtual Device
Connected Device
Gateway
Device Monitoring and
Control
Device Analytics Modeling and Control Data Services
7
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Growing Functionality
8
Evolution of Capabilities
bull Data Collection
bull Display
bull Reporting
bull Modeling
bull Notifications
bull Prediction
bull Intelligent Control
Connected Home
Smart Home
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Cost Curves Moving in the Right Direction
9
Source EPRI
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
2011 2012 2013 2014 2015 2016
Cost Per Appliance
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Adding Connectivity to Everyday Products
10
Cascading Connectivity into Products
bull Premium Tier (10 of unit volume)
bull Mid Tier (20 of unit volume)
bull Value Tier (70 of unit volume)
2013 2014 2015 2016 2017 2018
Premium 1 2 8 22 50 80
Mid 1 2 8 22
Value 1 2
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
11
Indoor Web (IP) Camera $ 9999
Outdoor Web (IP) Camera $ 14999
Pantilt IP Camera $ 15999
Electronic Door lock $ 15999
Lighting Control Module $ 3999
DoorWindow Sensor $ 3999
Appliance Switch $ 3999
Smart Thermostat $ 12999
Garage Door Control Module $ 8999
Motion Sensor $ 2999
Smoke amp Fire Detector $ 2999
Carbon Monoxide amp Gas Leak Detector $ 2999
Flood amp Water Leak Detector $ 3999
Emergency Call-button $ 1999
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Consumer Demand for Home Systems
12
16
17
19
20
21
25
26
26
27
28
28
33
38
42
0 10 20 30 40 50
Garage Door Control Module
Pantilt IP Camera
Indoor Web (IP) Camera
Outdoor Web (IP) Camera
Door lock
Lighting Control Module
Switch that monitors and turns onoff appliances
Thermostat
Flood amp Water Leak Detector
DoorWindow Sensor
Motion Sensor
Emergency Call-button
Carbon Monoxide amp Gas Leak Detector
Smoke amp Fire Detector
Specifying Likely (ie Rating 5-7)
Intention to Purchase Home Monitoring Products (Q412) Q7435 How likely are you to purchase the following if the product can be monitored and managed from inside your home or while
you were away from home using a computer mobile phone or tablet (Among BB HHs n=2500 plusmn196)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Telecom and Cable Operators Entering the Market
Strategy Basic package targets households
without monitored security
raquo Home Monitoring Kit indoor camera lighting
module Add-ons for energy door locks
appliances thermostats etc
raquo TV is the primary interface
raquo Self-installation
13
Strategy Tiered packages and broadband-bundled
pricing
raquo Basic tier ndash Professional monitoring
touchscreen control and security sensors
raquo Mid tier ndash camera and additional security HW
raquo Top tier ndash automation energy and lighting
raquo Professional installation
Strategy Ease of use and simplicity
raquo Professionally monitored security is the core
service
raquo Add-ons for automation and energy
raquo Sold through 2000+ retail outlets
raquo Professional installation
Strategy Full featured offering
raquo Includes touchscreen UI professional
monitoring keychain remote sensors Opt
thermostats smoke detectors and lighting
raquo News entertainment and info content is
available on the keypad
raquo Professional installation
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
65
64
56
53
52
Lights
Thermostat
Security cameras
Garage door
Door locks
00 10 20 30 40 50 60 70
Home Control System (Q112) Q7005 Which of the following can you control or monitor through the Internet
using the home control system for your home (Among All BB HHs n=10000 +-098)
14
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Connected Home ndash Product Ownership
15
How likely are you to recommend your home control system to your friends or family
Promoters 9-10 - Detractors
0-6 = Net Promoter Score
NPS = 16
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
16
-7
10
17
24
44
60
-20
-10
0
10
20
30
40
50
60
70
1 feature (n=354 plusmn521)
2 features (n=182 plusmn726)
3 features (n=184 plusmn722)
4 features (n=176 plusmn739)
5 features (n=103 plusmn966)
6 features (n=103 plusmn966)
Net
Pro
mo
ter
Sco
re
NPS for Primary Home Control System by of Features Adopted (Q112) Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Current State of Home Systems
17
61 61 59 58 64
77
-41 -39 -38 -47
-32
-11
-60
-40
-20
0
20
40
60
80
100
Door locks Garage door Lights Thermostat Security cameras Flood detector
NP
S Sc
ore
Very satisfied with the installation process (Rating 67 on a 7-pt scale)
Not very satisfied with the installation process (Rating 1-5 on a 7-pt scale)
NPS Score for Primary Home Control System by Satisfaction with Installation Process (Q112)
Q7008 How satisfied were you with the installation process for thehellip Q7020 How likely are you to recommend your home control system to your friends colleagues or family
(Among BB HHs Having Specified Features)
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
18 confidential | Sigma Designs Inc 18 confidential | Sigma Designs Inc
Success Factors in the Connected Home Bill Scheffler Director of Sales North America
May 30 2013
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
19 confidential | Sigma Designs Inc
Key Success Factors
Timing
Selecting the right technology
Working with the right go-to-market
partner
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
20 confidential | Sigma Designs Inc
The Disrupter
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
21 confidential | Sigma Designs Inc
Drivers in the Home Control Market
0
2
4
6
8
10
12
14
2004 2006 2008 2010 2012 2014
Global Home Control Market
Bill
ions U
SD
Berg Insights Sigma Designs
Telco and Security companies
begin to enter the market
Smart phones
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
22 confidential | Sigma Designs Inc
Entering Uncharted Territory
Paradigm shift
Competitive landscape
First mover advantage
Open to all size companies
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
23 confidential | Sigma Designs Inc
Revenue Opportunities
Customersrsquo expectations
are rising
Analysts expect major
growth Smart home system shipments
expected to increase by more than
600 over next 5 years This
equates to more than 38 million
households world wide by 2015(ON
World )
Service providers and
device manufactures
benefit
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
24 confidential | Sigma Designs Inc
Market is Heating Up
Consumers are ready and
willing to spend
Smart phones and tablets
are everywhere
Largest industry players
are entering
Home control solutions are
becoming mainstream and
accessible
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
25 confidential | Sigma Designs Inc
ADT movie clip
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
26 confidential | Sigma Designs Inc
ldquoADT chose Z-Wave as a technology for ADT Pulsereg Interactive
Solutions connected devices due to the interoperability of the
devices across the Z-Wave platformrdquo - Steve Shapiro Vice-
President Product Solutions ADT
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
27 confidential | Sigma Designs Inc
Z-Wave is the Leader in Home Control
RF solution in a single chip
Wireless mesh network
Extremely simple set-up
Ultra low power
Interoperable
Backwards compatible
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
28 confidential | Sigma Designs Inc
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
800 Smart Phone
Momentum
Z-Wave Interoperable Product Progress
Num
be
r o
f C
ert
ifie
d In
tero
pe
rable
P
rod
ucts
Service
Provider Entry
200
1000
700
500
400
300
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
29 confidential | Sigma Designs Inc
More than 200 Z-Wave Alliance Partners
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
30 confidential | Sigma Designs Inc
Why Z-Wave Next Gen
Internet of Things
Z-Wave Next Gen
Enabling End-To-End solutions
Energy
Management
Home
Security
Home
Health
Vivint ADT Verizon
Telefonica ATampT
Alarmcom
bull 800+ Devices
bull 55+ Countries
bull 10 Years Maturity
bull Product Interoperability
bull Available In All
Channels
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
31 confidential | Sigma Designs Inc 31 confidential | Sigma Designs Inc
Ben Garcia Field Applications Engineer
Sigma Designs
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
32 confidential | Sigma Designs Inc
What Sigma has learned
Speed to Market
Increased profitability
Better consumer experience
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
33 confidential | Sigma Designs Inc
Z-Wave Next Gen
Chips
Modules
Reference designs
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
34 confidential | Sigma Designs Inc
Z-Wave Next Gen Fast Time to Market
Pin to pin compatible solutions for existing partners
-Modular solutions for new entrants
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
35 confidential | Sigma Designs Inc
Z-Wave Next Gen for Flexibility amp Time to Market
USB form factor to go into
any USB device
Time to market
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
36 confidential | Sigma Designs Inc
Z-Wave Next Gen Consumer Experience
Increased range to make coverage even more robust
Almost 70 lower power consumption in stand-by mode
Simpler installation ndash Z-Wave easier to deploy with network wide
inclusion
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
37 confidential | Sigma Designs Inc
Z-Wave Next Gen Increased Profitability
4x larger memory foot print so one chip can do all the work saving
the cost of 2 chip solutions and allowing bandwidth for more
features and product differentiation
Simpler installation ndash making install time for professionals even
faster and customer- self installs save on expenses
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
38 confidential | Sigma Designs Inc
Home Control and Internet of Things
Tapping into the market
New connected devices
Devices become remotely upgraded
Z-Wave
Internet of
Things
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
39 confidential | Sigma Designs Inc
And we do all this while remaining backwards compatible
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
40 confidential | Sigma Designs Inc
Key success factors
Timing -
Technology -
Partner -
Now is the time
Z-Wave
Sigma Designs
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
41 confidential | Sigma Designs Inc 41 confidential | Sigma Designs Inc
Thank you bill_schefflersigmadesignscom
ben_garciasigmadesignscom
wwwsigmadesignscomzwavenextgen
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
Thank You
Tom Kerber Director of Research
Parks Associates
15950 N Dallas Parkway Suite 575
Dallas Texas 75248
Office 9724901113
Fax 9724901133
tomkerberparksassociatescom
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32
wwwparksassociatescom | copy Parks Associates | infoparksassociatescom | 9724901113 | ParksAssociates
Expanding the Home Security Value Proposition
43
NEITHERS
41
HOME SAFE-GUARDERS
27
LIFE MAXIMIZERS
32