Every gateway manufacturer has to think about a cloud server solution. Although it is not too difficult for IT professionals to set-up such a server either in the company’s server room or on a rented server, the total cost of this server installation is quite significant. With home automation and security applications in mind no customer will accept downtimes. Therefore server operation has to be 24 hours each 7 days a week, which leads to 4 shifts of operating personnel. Even in low-salary countries the annual cost for wages and server will easily reach USD 60,000. In Europe it’s rather USD 100,000 per year or more. This cost is only justified, if there are enough users to share the cost. 10,000 users would have to pay each at least USD 10 per year, which will be difficult to explain to customers today.

That means that server functions need to be outsourced to companies that serve more users and can come to better rates. A target is USD 1 per year.

It also makes clear, that the server operation should not stay in the responsibility of the hardware manufacturers. If a brand doesn’t want to depend on one hardware manufacturer only, each hardware manufacturer would offer his own solution. That means a higher risk of failure and also higher cost. Even if the hardware manufacturer doesn’t charge directly for the cost, they will either develop on his side and he has to charge higher prices for his products or they will run risks while operating their servers.