Insteon’s troubles are a smart home tale as old as time

Image: Insteon

The graveyard of dead or dying smart home ecosystems that promised so much yet failed to deliver is getting crowded. According to unconfirmed reports, smart home company Insteon has stopped using its cloud services, and device maker iHome has stopped using its cloud services.

This is a good time to reflect on the state of the smart home. Is it over? Is this cloud carnage necessary to clear the way for a brave new world, one where the smart home is no longer a curiosity but something that actually matters?

The companies mentioned have in common a reliance on a proprietary cloud server to deliver at least part of the experience customers signed up for. Consumers were left in the lurch when the business model of the company changed and the cost of running that cloud was deemed unnecessary.

The Revolv smart home hub was bought by Google and shut down, as was the Connect hub, as well as Lowes and Best Buy. Many manufacturers overlook the fact that maintaining a cloud-based smart home service costs money for a long time.

In the last few weeks, the cloud carnage has begun again, even though most of those examples are ancient history. On April 2nd, device manufacturer iHome shut down its iHome app and iHome cloud service, announcing this quietly with only an in-app notification. The action ends support for several of its iHome branded smart plugs.

The smart plugs and smart monitor will work with the Apple Home app, but beyond that, they are essentially junk. Many are still being sold, but as they require the iHome app, which no longer exists, they simply won't work.

Users of Insteon, a smart home platform that relies on a proprietary communication protocol, started reporting last week that the hubs that control their smart light switches, outlets, sensors, thermostats, and other devices were offline. The company, which was one of the earliest smart home pioneers, has gone dark.

The Insteon support forum is disabled and its phone lines are switched off, but its system status is still cheerily announcing that all services are online. It is unacceptable that there has been no official word from the company and no warnings or updates for users. The cloud-based automations and schedules seem to be kaput as the physical devices remain operational.

Because Insteon was built as a locally controlled system, owners can switch their existing devices and hub to an open-sourced system, such as Home Assistant or Hubitat. They aren't completely out of luck, unlike non-Apple iHome users.

Image: iHome

The proprietary cloud is a weak link. Away-from- home control, over-the-air updates, and easier setup and programming are some of the benefits of a cloud- connected device. Its instability is a major downside, especially if you are taking a bet on a startup. The company that owns the server has no control over the end- user. Many people are wary of the smart home because of this. Why spend money on a paperweight that could be very expensive in the future? The Revolv hub cost $300. Many customers spent a lot of money on their systems.

The solution isn't to abandon the smart home. Most connected devices offer an upgrade over their non-smart counterpart. A smart door lock can tell you who unlocked your door and when, a sprinkler controller won't water your garden if it rains, and smart light bulbs can mimic the natural cycle of sunlight. These are just a few examples.

The solution is to make smart home devices the norm. They need a unified system to connect them, one that isn't dependent on the fortunes of individual companies.

Image: NXP

The promise of Matter comes here. The new smart home interoperability protocol should allow devices to work locally in your home without relying on a single cloud service.

The expectation is that they will work with or without a cloud service, communicate with devices from different manufacturers, and if you want the benefits of cloud control, work with whichever compatible platform you choose. You should be able to choose another way to control your devices if one service goes away.

In cases like this, where manufacturer support ends, it is expected that devices that support Matter will continue to work locally with others in the home and be discoverable and controllable from other smart home systems and apps.

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Matter’s plan to save the smart home

We don't know how Matter will work in practice because no one has used it yet. It will be too late to help iHome and Insteon customers when it arrives. The smart home is at a tipping point.

Which company will shut down its server? Despite the company's protestations that everything is fine, it's hard not to worry. Any small company that relies on a cloud server, doesn't charge a monthly subscription fee, and lacks deep pockets is potentially at risk.

The safest bet for building a smart home today is to stick with the bigger names with good track records and solid companies behind them. Wait for Matter under dumb light bulbs.