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Home Networks in Australia in Need of a Geek Squad, Reports IDC

  • 23 May, 2005 14:20

<p>NORTH SYDNEY, May 23, 2005 – According to IDC's recent study: "Australia Home Networking Market Forecast and Analysis 2004-2009: Are Home Networks A Data Only Zone?", home networking functions are currently limited to basic, data transmission tasks such as sharing a broadband connection or peripherals among multiple PCs, and are only adopted by tech-savvy households. For home networking to enter mainstream, vendors in this space need to change consumers' mindset of this technology being data-centric and complex, by improving ease of use and taking home networking beyond data-centric applications and into media applications.</p>
<p>In this study IDC has found that it's very important that consumers find home networking solutions easy to install, operate and maintain in order for the technology to be widely accepted. Unfortunately, as of today, most home networking solutions are far from passing the "grandmother test". There will continue to be a need and thus an emergence within the Australia market of home systems integrators like the "Geek Squad" in the U.S or D-Link's Installation Services Packages to increase and smoothen home networking deployments.</p>
<p>IDC predicts that by 2009, one out of five households will have a home network.</p>
<p>"PC networks (i.e. data networks) will account for more than 70% of all home networks over the next five years. By 2009, 70.8% of households owning a PC will own at least two or more PCs while broadband will penetrate into 50.1% of all households. IDC expects the higher penetration of broadband and multiple PCs households will continue to drive PC networking functions, hence the number of installed PC networks will increase at a modest CAGR of 47.2%,"stated Sophie Lo, IDC Research Analyst for Consumer Digital Markets.</p>
<p>"Proliferation of digital media will create a need for consumers to consume their digital content on Consumer Electronic (CE) devices. In addition, CE manufacturers will continue to integrate home networking capabilities into CE devices. IDC expects multimedia and entertainment networks to experience CAGRs of 114.9% and 144.4% respectively, showing much stronger growth than PC networks, albeit from a much lower base," added Ms Sophie Lo.</p>
<p>A home network is defined as the configuration of two or more nodes enabling the mutual transfer and sharing of communications and data. There are three different types of home networks: PC networks (also known as data networks), multimedia networks and entertainment networks.</p>
<p>PC network is the networking of two or more PCs/ PDAs. A multimedia network has at least one PC and one consumer electronics (CE) device. It will include a PC that stores multimedia files, which are assessed over the network by networked CE devices, such as televisions or sound systems. Entertainment network does not include a PC. It requires two or more of the same devices to connect for communication without sharing communication with other devices in the home. For example, two set-top boxes from the same manufacturer and/or cable operator could stream video from one to the other.</p>
<p>For press enquiries please contact:
Sophie Lo
Research Analyst
Email: slo@idc.com
Phone: 61 2 9925 2206</p>

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