February 13, 2006

IT Home Integrators Provide The Best Way To The Home Market

13 February, 2006
By Robert Danese, Executive Director NASBA

Digital Home Integrators who have evolved from the IT channel recognize tremendous consumer market potential and anticipate record sales this year.

Is this sheer optimism? Not at all. For most, it's the result of one to two years of dedicated planning, product evaluations, resource investments, and staff training. While the "convergence" of Consumer Electronics and Information Technology may be the buzz for 2006, there are hundreds of Digital Home Integrators today who are already up-to-speed on segments or the complete spectrum of home solutions.

"Home Integrators from the IT world have a number of advantages that they bring to the digital home market that others can't," said Roland Graham, President, AVDMedia. "Last year, I spoke with more than 100 committed IT professionals at Intel® ViiV" road shows who are far more qualified to do this work than many others entering or in the market today. They're established in 10-to-20 year old service-related businesses; they're used to partnering with other professionals to deliver the best solution; and they know technology and how it interfaces to create the experience the customer is looking for."

Graham co-founded AVDMedia, a specialized architectronic design firm, and has over 15 years experience in the home integration market. During this time, he's worked with a multitude of clients including high-end custom home projects, high-profile resorts, developers and multi-dwelling units.

Gaining an Edge
In mid-2005, NASBA - the Association of Channel Resellers, partnered with the Consumer Electronics Association (CEA®) to launch the Digital Home/Edge program that helps broaden skill levels and increase sales opportunities for IT channel resellers in this particular niche.

Within months, the program has more than 350 members who are invested in this space, and we expect to see more than 2,000 members designing, recommending, building, installing, and integrating digital home solutions for customers by year-end.

Most members, like Ace Digital Home", a subsidiary of Ace Computers®, rely on the Intel ViiV platform to do so. The Ace LHD Limited Edition Media Server features Intel ViiV technology and Microsoft® Windows® XP Media Center to integrate the functionality of individual A/V components into a single unit, complete with a common user interface and remote control.

"We've been looking at the home market for a while," said John Samborski, Vice President, "but with a big push from vendors like Intel, storage getting cheaper, and the availability of rich content via broadband for consumers, the time is now."

Ace Digital Home plans to remain a systems manufacturer and work closely with a national dealer network of CEDIA® certified installers to bring the solution in. "The luxury home market is key right now, and this is where there will be sustained market growth," said Samborski. "We already have orders from Utah, Louisiana, Florida, Arizona, and Nevada, among others, and our CEDIA partners are knowledgeable and enthusiastic about working together."

Mirus Innovations, the retail and digital home division of one of America's largest manufacturers of build-to-order desktops, notebooks, servers and workstations, is taking a different approach through non-traditional channels. While they too are rallying around the Intel ViiV and Microsoft Windows XP Media Center technology for their digital home solutions, Mirus launched with a national, direct consumer approach to the home market via TV shopping channels.

"The first challenge in selling a digital media center is acquainting consumers with the many ways that it can be used by literally supplying digital home scenarios, and the second is ensuring that the systems and peripherals are professionally integrated into a home network," said Richard Shyu, Vice President, Retail Sales, Mirus.

Mirus addresses the first challenge through lengthy demo-intensive TV infomercials. The second challenge is met through their national VAR dealer network to manage in-home installation, service and support.

"We've been selling Microsoft Media Center-based PCs for almost 2 years now, and we know that home A and home B will be very different scenarios," added Shyu. "We customize to order and we have local professionals who have the ability to handle the technical questions that come their way."

For Mirus, the digital home market is a work in progress, including their sales strategy, which Shyu stated will expand to catalog, retail and e-commerce channels "when the customer is ready".

Areas of expertise and market approaches vary widely among Digital Home Integrators, and the majority will continue to run their traditional IT businesses simultaneously. Many are specializing in two or three categories of products, and by partnering with firms who offer different competencies; they're transforming market momentum into profitable sales.

So, while industry pundits continue to call for "consumer solution providers", I say look no further than the Digital Home Integrators that are ready to deliver the experience now, and are feeling right at home.

Robert Danese, NASBA's Executive Director, is NASBA's public voice within the technology community. NASBA - the Association of Channel Resellers - serves as the channel advocate for the single largest IT sales channel in North America with over 14,000 member companies and more than 45 industry partners. Reach Robert at 949-729-2259 x225 or email robert@nasba.com.