By enabling integrations with devices such as the Amazon Echo, ADT reduces its own role in its customers’ lives. We noted in our original ADT Black Book (January 2018) that for its initial Alexa integration, ADT required users to say “Ask ADT” when interacting with Alexa. For the new Alexa Guard integration, Alexa can send alerts and sound clips directly to users, potentially bypassing all user interaction with ADT.
The ADT announcement:
“When a customer enables Alexa Guard on their Amazon Echo device and says "Alexa, I'm leaving," Alexa will notify the customer if she detects the sound of smoke alarms, carbon monoxide alarms or breaking glass while the customer is away. These notifications, called Smart Alerts, are delivered to a customer's smartphone to let them know which sound was detected, and provide an audio clip of that event. Customers with an ADT Pulse system using Alexa Guard can choose to forward Smart Alerts to ADT monitoring professionals to help determine if additional action should be taken, including dispatching first responders if needed.”
Oh, you mean exactly what ADT Pulse is already supposed to do on its own? From the ADT Pulse Product site: “If any of your smoke, carbon monoxide, door/window or motion sensors are triggered, you can set up Pulse to send you an immediate alert on your mobile devices.”
Let’s think about the implications of this announcement for ADT customers: currently I pay ADT ~$700 per year for my ADT Pulse system. I already have an Amazon Echo device in my home. Now, with Alexa Guard, the Echo will effectively take over some of the typical jobs of ADT Pulse (for no additional cost). Alexa will notify the owner (in the same way that ADT Pulse notifies the owner) and the owner will have a choice whether to call emergency services or decline the alarm. A year later, you sit there asking yourself why you are still paying $700/year for something you already get for free.
But Ami, won’t ADT continue to dominate the monitoring side of the business? Try again. Maybe this flew under the radar, but Ring (acquired by Amazon in April) launched $10/month professional monitoring as of July 4th of this year! And earlier this year, Amazon launched a slough of security home services directly marketing to customers the benefit of “never having to sign a security contract again." Still think Amazon doesn’t want this side of the business?
There is a reason why ADT mentions Amazon 8 times in yesterday’s press release, while Amazon drops ADT's name once (after its own plug for Ring). Since the IPO, ADT management has been telling investors that DIY and Professional Monitoring are two completely unrelated markets. We disagree. But regardless of who is right, Amazon is going after both, and if ADT thinks they are part of Amazon’s final plan, they are in for a surprise.
Please call or e-mail with any questions.
Ami Joseph
Managing Director
