Jan 2, 2019 · 18m · a16z
a16z Podcast | The Technology is Ready, So Where is the Internet of Things?
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of the a16z podcast, host Zal Bilimoria alongside co-hosts Benedict Evans and Preeti Kasireddy analyze the state of the Internet of Things post-CES. They discuss why cheap smartphone components have solved hardware readiness while market positioning, ecosystem integration, and enterprise ROI dictate adoption.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. How this is scored →
The host as informed peer 5.3 Guest teaching 4.7 Guest disagreement 2.3 The host pushing back 3.2
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 8:44 Inversion of Technology Trajectory
Benedict Evans explicitly rejects the premise that IoT hardware is immature, explaining that smartphone supply chains mean high-quality components already exist in search of a narrative.
Hardest push from the host ▶ 5:02 HomeKit as an Industry Head FakeZal Bilimoria refuses to accept Apple HomeKit as an active market leader, calling out its empty developer page and pointing out how it artificially froze industry progress.
Biggest teaching moment ▶ 1:49 Electric Motor Paradigm ShiftBenedict Evans re-educates the panel on technology adoption by contrasting the search for a killer IoT app with the historical ubiquity of unmarketed electric motors in household appliances.
The host holds their own ▶ 14:03 Retail Last-Mile AdvantageZal Bilimoria demonstrates host expertise by analyzing Home Depot's revenue metrics and detailing how big-box retail staff provide a crucial educational channel against e-commerce giants.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| Searching for Killer Use Cases and the Electric Motor Analogy | 4 | 5 | 2 | 2 | Host Zal Bilimoria demonstrates familiarity with connectivity protocols like Bluetooth LE, Z-Wave, and Zigbee. Guest Benedict Evans reframes the search for a singular killer app by drawing a historical parallel to electric motors, noting that consumers buy specific solutions like blenders rather than the underlying component. | |
| Ecosystem Integration, Nest, HomeKit, and the Smartphone Hub | 6 | 4 | 3 | 5 | Zal challenges market optimism around Apple's HomeKit, characterizing it as a head fake consisting merely of a developer landing page that froze industry momentum. Benedict offers a broader reframe comparing overly integrated smart home visions to dated 1960s World's Fair concepts. | |
| Hype Cycle, Supply Chain Acceleration, and Consumer Adoption | 6 | 6 | 4 | 3 | Zal invokes the Gartner hype cycle and details portfolio investments like Quirky at Home Depot. Benedict directly challenges the standard tech adoption paradigm, arguing that because smartphone supply chains pre-built the sensors, IoT has mature hardware searching for use cases rather than underbaked hardware slowly catching up to a vision. | |
| Industrial and Enterprise Applications of IoT | 5 | 4 | 1 | 2 | Zal categorizes IoT value pillars and references Blackberry's enterprise platform launch before raising Google Glass form-factor questions. Preethi Kasireddy presents concrete enterprise use cases in healthcare and GE smart jet engines. | |
| Startup Interoperability Strategies and the Role of Retailers | 7 | 4 | 1 | 4 | Zal displays strong business expertise by citing Home Depot's 30% revenue increase on a $100B base and outlining how physical store clerks offer a last-mile educational advantage over Amazon. Benedict complements this by comparing retail shelf space to the app store of the physical world. | |
| Connected Cars and Auto Manufacturer Differentiation | 4 | 5 | 3 | 3 | Zal tracks auto platform entries across Apple, Google, and Blackberry while pressing whether connected features drive actual auto purchases. Benedict tempers excitement over software disintermediation in autos and dismisses superficial CES gadget trends. |
Statements from this episode (11)
Kasireddy: Smart light switches are not a transformational IoT use case
“Other than locks and potentially ovens I don't see turning on a light being that transformational.”
Evans: Consumers buy solutions, not underlying component technologies like electric motors
“Our grandparents could have told you how many electric motors they owned. You know, there was one in the car, and one in the refrigerator, and one in the vacuum cleaner. And now there's probably a dozen in your wing mirror, and you've got dozens of different e…”
Bilimoria: Apple HomeKit is currently a complete head fake
“Apple's HomeKit, and that almost seems like a complete head fake. I mean, if you actually go to their website, it's actually just a developer landing page with a couple of coming soon notifications”
Bilimoria: IoT market remains stuck in the trough of disillusionment
“If you think about the Gartner hype cycle, I think we're probably still in the trough of disillusionment. We're still crossing the chasm, so to speak, in terms of getting into the early majority of actually where are we going to get The real kind of, ah, major…”
Kasireddy: GE's smart jet engines reduce aviation costs via automated maintenance
“GE with their aviation, they have the smart jet engines, which the mechanics don't need, don't even need to check the plane once it lands and that they just know if it needs maintenance or not. That saves a ton of time and ton of fuel and ton of just money for…”
Benedict Evans: Google Glass is too limited and intrusive for consumer adoption
“I mean, in the short-term, it feels like Google Glass is probably too limited in its capability, and it's probably too intrusive in the form factor for anything other than an enterprise application, and I've seen a lot of really cool Google Glass enterprise ap…”
Benedict Evans: Smartwatches offer a better ambient screen form factor than smartglasses
“I think there's a kind of a longer-term story here around watches, which seemed like a better way of having that ambient screen, maybe, than something that's kind of clamped onto your face.”
Kasireddy: IoT startups should build open tech immediately, not wait for tech giants
“I don't think they should wait. I think they should build their technology to be open scalable, and I think Samsung already has an open platform, so There's no reason to wait, because consumers know it's out there, they're ready for it, and I think it's their,…”
Evans: Home Depot retail shelves are the app store for IoT
“What are you going to put on the shelf in Home Depot that will sell itself as you walk past it from five feet away? Which is, that's kind of the challenge here, because that's the app store for the Internet of Things. It's certainly the app store for Connected…”
Evans: Automakers will not be disintermediated by software providers
“Car is still basically kind of about driving, at least until we've got self-driving cars, and even then, you know, it's all basically about how you put the bits of metal together. So I don't think I think they're going to be squeezed out in quite the same way,…”
Evans: Smartphone components solved IoT hardware before clear consumer use cases
“Generally the way it works is you have this shining vision of the wonderful thing, and the technology doesn't quite live up to it for years and years and years, whereas because all the stuff got made for smartphones first, all the components got made for smart…”