What sort of Hardware Startup are You?

Everybody seems to agree that it’s never been easier to start a hardware company than it is today.  After years of being eclipsed by software and services, hardware is sexy again.  However, that doesn’t mean it’s any easier to be successful.  Over the past few years I’ve mentored a number of startups and realised that their expectations often don’t match the reality of what they are.  That doesn’t mean they can’t succeed, but it does mean that they’re probably wasting effort trying to be the wrong sort of company.  There are lots of different models which can be successful, but a company is most likely to work if it knows where it is going and what it wants to be.

Hence this article.  If you’re contemplating a hardware startup, or have already taken the first steps, you need to think seriously about what you want to be doing in five or ten years’ time and how you’re going to get there.  It’s every bit as important as getting your product out.  Recognising that gives you the best chance of achieving your goal and minimises the risk to your investors and employees – considerations which should be at the top of your priority list.  It still won’t be easy, but if you can reduce some unnecessary pain by getting the right model, it will certainly be a lot less stressful.

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Use More Energy. Towards a UK Energy Policy

Three years ago, in a utility conference in Atlanta, I sat through a keynote by Tom Fanning, President and CEO of Southern Company – one of the largest US utilities.  In a typically Texan barn-storming style he argued that “to improve human existence let’s use more energy where we should”, going on to promote the message that every Texan in every trailer park was equally deserving of air conditioning and a 60″ TV.  It wasn’t what the audience expected, many of whom had come with concerns about smart meters, energy efficiency and outages.

Earlier this week I sat through the IET’s annual Mountbatten lecture, given by Dieter Helm, Professor of Energy Policy at the University of Oxford.  The subject was The New Energy Landscape – low fossil fuel prices, decarbonisation and new technologies, based on his updated book – “The Carbon Crunch: How we’re getting climate change wrong – and how to fix it”.  Much to the surprise of the audience, this time mainly engineers involved with the energy industry, he gave much the same message – that’s it’s time to stop worrying about the cost of energy or energy efficiency.  Instead we should be planning a future where we can use as much as we want.

I urge you to watch his lecture, which is available on the IET website.  At the risk of oversimplification here’s my very abbreviated take on it, as well as some of the potential problems in changing Government policy. 

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M2M’s impending Hole in the Air

All of a sudden, there’s a lot of activity in the Long Range wireless network community.  In France, Orange has just announced that they’re going to follow in Bouygues’ footsteps in deploying a LoRa network for M2M which will cover the whole of metropolitan France.  That in turn follows on from a similar announcement from KPN that they are planning to do the same thing in Holland, while Proximus are going to cover Belgium and Luxembourg.  It’s a bit like a rerun of the SigFox PR offensive, after they managed to sign up operators in France, Holland, Portugal, Belgium, Luxembourg, Denmark, Spain, the U.K. and San Francisco.  Nor is it just a European phenomenon.  In the U.S., Ingenu, the company which was formerly known as On Ramp, has raised $100 million to roll out its own similar, proprietary network. It seems that there’s a new announcement almost every day.  So it’s interesting to look at why mobile operators are desperately announcing new network technologies to support M2M and IoT applications, when just a few months ago they gave the impression that they would rule the IoT with their 4G networks.

When you stop and look behind all of this activity, you see something that should be worrying the M2M and IoT industry (which is not the same as the cellular industry).  For the last fifteen years they’ve not had to worry much about how they make their data connections – they just embedded a GPRS module and bought a data contract.  But look forward a few years and there’s a worrying hole in the air as networks start to switch off their GPRS networks.  That’s just beginning to dawn on network operators, who see an unexpectedly unpleasant vision of the future, in which their anticipated IoT revenues could disappear into thin air.

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The Snakes and Ladders of Smart Home

What has the hacking of Ashley Madison got in common with smart homes?  The answer is that both are likely to increase the number of divorces.  If that seems a strange statement, talk to the wife or partner of anyone who’s got a smart home system (it’s generally the husband who buys and installs them).  Most feel that it’s not improved their quality of life; it’s just added another level of frustration, because now they have a home which can go wrong.

Of course, that’s not the message the industry wants to get out. If you believe the analysts and the smart home manufacturers, your home is about to evolve from the thick bricks on the block to the Nobel Prize winning genius of housing.  Technology is finally about to transform the place you live in into a high IQ domicile that reacts to your mood and presence, keeps you safe and saves you energy.

It’s a great story that plays to some excellent futuristic videos, from global technology giants like AT&T, through boutique technology leaders like Nest to the successful crowdfunded visions of Oomi, Nuimi, and Blaze Automation.  In their vision, it’s slick, it’s sexy and it’s almost here.

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Here today. Hearing aids tomorrow?

It’s been a good month for hearables, at least if you look at the $17 million that Doppler Labs has just raised.  But it asks the question of where hearables are going, as well as what consumers think they’re getting?

Doppler Labs started off life a few years ago with DUBS – a high tech earplug aimed predominantly at concert fans to help protect their hearing.  Unlike conventional foam earplugs, the DUBS are designed to attenuate fairly evenly across the audible spectrum, so they reduce the volume without distorting the music.  They appear to have gone down well, with the Coachella Valley music festival buying 135,000 pairs to hand out to attendees.

However, what has got everyone talking is Doppler’s recent Kickstarter campaign for their Here active listening earbuds.  2,855 backers pledged $635k to help bring them to life (and presumably to help close the external funding).  The questions are what those backers think they’ve bought and why?

I ask that because the Here is an interesting device.  If you’ve not seen it, click Here.  It’s not a music player.  If you’re wearing it you can’t stream music via Bluetooth or a conventional wire.  What it does, some may say all it does, is act as a volume control to attenuate or manage what you hear.  It’s almost like a reverse hearing aid, which helps you hear less rather than hear more.  Much of the internal technology is very like that a hearing aid, but its application and customer base are very different.  That makes it a very interesting product in the hearables spectrum.  I suspect it may have an important impact on the hearing aid industry, but not in the way many might imagine.

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Why is DECC more secretive than the MoD?

Energy policy is one of the most important things for any country to get right. If energy supplies fail, the impact on the population and economy is immediate and potentially disastrous.  So you’d think that debate about it would be fairly open, not least because an open debate helps make a fairly arcane subject a little more accessible.  But as readers of this blog will know, the UK’s Department for Energy and Climate Change (DECC) has something of a reputation for secrecy, doing their best to block any Freedom of information requests and refusing to admit any problems with their expensive projects.

In 2011, the previous UK Government set up a Major Project Authority group to try and provide more insight into the portfolio of large, transformative projects.  It’s an excellent initiative, which has just produced its third annual report.  As well as showing progress, or lack of it, you get a good idea of which departments are least open.  Of all the Government departments, you would probably have expected the Ministry of Defence to be the most secretive about its projects.  It’s not.  DECC stands out as the one which is still withholding most information on its projects.  Which makes you wonder why the Department for Keeping the Lights On is so desperate to keep everyone in the dark?  Under the MPA’s pressure, they are releasing more information, but recent events suggest their heart’s still not into open disclosure.

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