Smart Home Survival: Insteon's Comeback & Industry Insights
The smart home landscape, for all its convenience, often presents a precarious reality for consumers: the frequent demise of companies, leaving users to grapple with defunct systems. This instability raises critical questions about the sustainability of smart home manufacturers and what strategies might ensure their longevity, allowing enthusiasts to continue enjoying the benefits of home automation.
A recent discussion on The Vergecast delved into this very issue, featuring Jennifer Pattison Tuohy, The Verge’s smart home reviewer, and Ken Fairbanks, a long-time customer of Insteon who ultimately purchased the smart lighting company after its bankruptcy. Their conversation traced the fascinating trajectory of Insteon, an early smart lighting protocol that emerged in the post-X10 era—a period when home automation transitioned from wired to predominantly wireless solutions. Fairbanks recounted how he, alongside a dedicated group of former employees who were also ardent users, successfully resurrected the brand.
Fairbanks shared invaluable insights gleaned from this extraordinary turnaround, offering a blueprint for resilience in a challenging market. Key among his lessons was the profound importance of fostering customer loyalty, recognizing that a devoted user base can be a company’s most vital asset. He also addressed the complex realities of managing subscription services, a common revenue model in the smart home sector, and the unforeseen challenges posed by new tariffs impacting hardware production. Fairbanks even mused on how closely the business models of some Internet of Things (IoT) hardware companies can, at times, resemble pyramid schemes, highlighting the need for transparent and sustainable growth strategies.
Following this deep dive into Insteon’s revival, the podcast expanded into a comprehensive Q&A session on smart lighting. Tuohy was joined by Richard Gunther, cohost of The Smart Home Show podcast, to address a multitude of listener queries. They offered practical advice ranging from the logistics of relocating an existing smart home lighting setup to the considerations involved in choosing between smart switches and smart bulbs. The discussion also covered more technical aspects, such as selecting the appropriate Thread border router for a Matter-compatible system. Both experts also shared personal insights into how they integrate smart lighting effectively within their own residences, providing real-world examples for listeners.
The story of Insteon, and the broader discussion around smart lighting, underscores the persistent challenges facing the smart home industry. It highlights the critical need for companies to not only innovate technologically but also to cultivate robust business models, prioritize customer relationships, and navigate complex economic landscapes to ensure their long-term viability and the continued evolution of home automation.