this week, under the screen. why a worldwide web is making us feel less at home. with reporter liz gaines of the block re/code and martin giles of "the economist" this week on "press: here." >> good morning, everyone. i'm scott mcgrew. recently during its worldwide developers conference, apple announced itas very interested in home automation and the internet of things. the idea that many, if not all of the various objects in your home can talk to each other. apple is not the only company sniffing around. google bought nest maker of

smart thermostats and smoke detectors. devices from dead bolts to toasters will form a housewide network which leaves us to the alexander hague question works will be in charge? it might well be shane dyer, ceo of arrayent networks, already signed on big brands like matel, whirlpool and lift master, maker of garage door openers, joined by martin giles of "the economist" and liz gaines of re/code. what is my garage opener going to tell my dishwasher? what will the two talk about? >> to start out with you're probably going to buy these one product at a time. of that whole idea that we're going to wake up on saturday morning with this home automation problem just doesn't happen. so i think this product plus app when these things start talking together it's going to be kind of accidental as we start buying one product after a time. as soon as you have four applications on your phone you're opening every time you have to leave the house or enter the house, you're going to want them to come back together and

have harmonization. already in my house if i were using products that you power, i could see if my refrigerator door was open on my smartphone. i could see my garage door opener was open on my smartphone. >> if you look at leading companies like whirlpool that makes 60 million appliances they have to figure out how to quickly get to these connected -- the smartphone connected consumers. this is the new screen for my life, my universal remote control. and so they need help kind of making that bridge to not only create a system, but then also plug that into these important ecosystems like apple and obviously announcements from guys like google in here. they have to have their platform to figure out how they can use their own apps and plug into big systems. >> there's only going to be one platform. i don't want 50 apps for 50 sort of things. i want central control as scott said. the alexander hague question, who is in control. why would it be arrayent's as

opposed to google or ap whole have a lot of sort of clout in the home. >> there's a need for switzerland, get my products, i'm not going to build a washington machine for apple and build another for google. i want to have all those things working together and figure out how i can make them play well in these various ecosystems. arrayent fills that function. we help these major brand companies make that bridge to these connected products. >> what's the examples that i've heard about monitoring your home, home security, something open or not, these kind of simple yes or no questions, i don't need an app, tell me if something is wrong. what's something much cooler that would get me excited about this? hearing about these over and over i haven't installed many of them. >> pretty soon you will look at various products and look broken if they don't have internet connectivity. if i'm away from my garage door and left it open all day it's not the best thing in the world if my neighbor has to call to tell me i left it open. simple use case, the ones that have a little emotional

resonance did i leave the stove on, those sort of things, is my front door unlocked, things like that, are really important and that's where people are going to start. it's kind of like if you go to the early days of networking when we were first putting networking in computers it was sort of the applications for like shared printing. and obviously networking became much more useful for other things other than that. >> have manufacturers gotten to the point in the hardware themselves that they're building something standard that you can count on, that you are then overlaying, you know, the software that makes all of this happen, but are you seeing the same devices in the dishwasher and in the garage door opener and in the smoke alarm, where you can kind of count on oh, that's the system they're using? >> no. absolutely not. >> should they be? >> the forces of divergence here are stronger the forces of convergence. the important part, this is what arrayent believes, you're going to basically put these things together up in the cloud so some will connect through blue tooth, some will connect through zigby, some through wi-fi. >> as a consumer --

>> you don't want to know anything about that, but up in the cloud, those agents up in the cloud that put these things together, will allow them to -- will allow them to talk to each other so that at the end consumer at the end of the day i can wake up and have these things work together. >> i love this idea of these agents up in the cloud. what i worry about is that what those agents up in the cloud might happen to be a nasty person, who says you can lock your door remotely but if i get in the app i can unlock it. if scott is out i can access the camera and spy on scott. this is a spooky development. how do we stop this becoming some point a new police state that the nsa and everybody else starts spying on us with. >> the biggest problem around security, a huge problem with the industry and the biggest problem we're putting these computers in all of these devices. so by like turning your fridge into a computer fridge you create all these security vulnerabilities, make it

unreliable. >> there is no question if it's disconnected to the internet of whether someone can tap into it. >> it's off. >> our belief here, you need to really simplify those devices themselves and put a lot of that heavy lifting up in the cloud to even have a chance of having enough simplicity in the devices to be able to secure them. >> we did see with nest, they had a problem with their smoke detector and they were able to fix it. what they did was turned the feature off. >> yeah. >> that's a fix. >> remotely. instead of having to recall every single unit. i thought that was a good preview of oops, we made a mistake, but we can fix it remotely. very impressive. >> you can fit that and say if nest can control it, if someone got into nest's system they control everybody's smoke alarms. >> what do you make of google buying nest. i don't mean the specific decision as much as what i was surprised by, it's not about the hardware. >> no. >> who cares about the thermostat. it's a snazzy thermostat. who cares. it's the idea, the back end

stuff. >> the data stream. >> bill gates, whosinge ing whog to be the bill gates of 17 computers in my house all not talking to each other. that's where you want to be. who cares about the hardware. >> absolutely. look at these big manufacturers or the retailers or service providers, all of them are trying to figure out how to get into that data stream. it's important for them not to be just an element in somebody else's ecosystem but actually have their own internet of things strategy and platform and we help them out with. >> is there a point in which there's going to be an internet of things provider that i am the customer of comcast for cable and sirius for xm and arrayent handles my house stuff? >> yeah. at the end of the day the consumer is king, right. you're going to figure out what entities you have the most trust with. it could in many cases this may be a brand you've trusted for a

long time, this may be somebody you have an affinity for around your smartphone and figure out, that's the entity i'm going to use to control these things but then i want all these things to work with that particular system. so i think it's going to be a balance and not go one size fits all for all consumers but we'll figure out where our points of aggregation makes sense for us. >> my last question to you, what distance in time are we talking about in which it would be very routine to say, hey, martin, i was driving past your house, you need close your garage door opener and i will assume he has the app. i realize that technology exists today, but those sorts of routine things where you would say, oh, hold on just a second, let me access my house. >> i mean just watching the excitement around the mass tipping over to i'm buying a product and now buy the one that comes with an app, we're seeing that just snowball right now with these pieces to go through with our customers and the leading products that are out there. so i think pretty quickly you're going to get to the point you

want to buy the one with an app and if it doesn't have an app it's going to look broken that's what's pushing these guys. >> we're with that at thermostats. the boys that run the air conditioning i can tell they've run the air conditioning but turn it up before dad gets home but now i would be able to tell on the smartphone. >> catching curfew on the garage door. that's a good one. >> oh. >> [ inaudible ]. >> that's a good one. shane dyer with arrayent, thank you for being with us this morning. >> thanks for having me. >> up next, who is hogging the wi-fi. public access internet points struggle data hungry apps. what tech can do about it when "press: here" continues.

welcome back to "press: here." one of the big questions in our always connected world is which bit of data gets to go first. on a macro level that issue is called net neutrality but those decisions have to be made on many levels constantly. in the case of public wi-fi providers are growing concerned over who should get access and how fast. case in point, should someone watching netflix be allowed to hog the wireless connection at the coffee shop. the engineers at extreme network have started to pay more attention allowing their devices to sniff out who's using what over their networks. chuck berger is the ceo of

extreme networks. when you talk about gaining visibility over the networks what does that mean? does that mean you're actually able to tell what it is i'm doing on my iphone at the library or train station? >> we have a new product that we just introduced called purview, as a result of that product we are now the official wi-fi analytics providers for the national football league. >> are you looking at what i'm doing on the iphone, chuck? congratulations on the nfl. are you looking at what i'm doing on the iphone? >> what is going across the network but not looking at any individual data. to be -- not to be too technical the packet header not what's in the packet to see what applications are being used and then help, in the case of the national football league -- >> netflix but not "orange is the new black". >> yes. >> we know it's net flicks or in the arena environment where 80,000 start to light up their wireless devices the most common use there is taking selfies and

sending it to your friends across facebook or -- >> you needed engineers for this? >> actually surprised me. i thought the biggest app would be the playing fantasy football and watching your other teams, which is the second biggest app. >> so i'm the new levi stadium and i've got extreme networks running in the background and i can look at all of this data. it allows me to shape the traffic, right? if i don't want people using -- i don't know why anybody would watch netflix at an nfl game, god help them, but i could trim that down, right and allow the expansion of postings of selfies? >> it allows you to do that. it allows you to look at your network and say for the next game i need to add access points. there's a particular section we didn't cover properly when we set up the network originally. ultimately it allows you to say what are people doing in these interim periods and how do we

get more of their attention while doing that. >> yeah. that's an interesting -- when i see a spike i bore my audience. >> and the nfl in particular is working on enhancing the fan experience because they want to get us out of our comfortable recling shares in front of our big hd tvs with surround sound and pause control and get us back into the stadium and so it's one of the significant part of that effort to enhance the fan experience and make sure when you are trying to do something on wi-fi, which happens more and more often, the patriots stadium for several years now and each year m the number of people starting to do something off a smart device has gone up dramatically. other environments like hospitals where you have a privacy concern, where doctors are increasingly walking around with pads or computers and they get to a question or problem and go to a source that isn't a trusted source necessarily, to

get an answer to that question, and not that we want to be spying on what the doctor is doing, but we want -- the -- >> the type of filter. >> want to make sure the doctors are using secure connections for hippa compliance and things like that. >> sure. if the -- is there sort of a crush in wi-fi sort of capacity right now? i mean people bringing you in because all of these apps are basically creating a massive demand for wi-fi and there's just not enough supply in many of these places? >> i have great example of that. i'm a trustee of presentation high school here in san jose. last year, our girls -- all girls school, our girls had great experience on the internet, our wi-fi infrastructure was more than adequate, never had anybody dropping a connection and for some reason this year, they all came back with multiple devices, downloading more and more video, downloading larger files to cut and paste into presentations

they were making. >> of course. >> and the network wept to its knees. >> you can't stop that from happening? >> can help. >> in the short term we can stop that happening but that's not the answer in that case. in that case we help them optimize the design of the network upgrade we took them through so they have access to all of those things that enrich their education experience. and then as they're doing it we can tell them, you know, all of a sudden biology teacher in room 201 has gotten the religion around using the internet for teaching and usage has gone up there. we better make sure we have enough bandwidth in that area. >> go ahead. >> as more and more of our devices -- we're paying for a data connection because they're mobile devices, how does that interact with what you're doing? i mean some of the cooler things i've do a smooth interaction where you have a phone call where you can take it on wi-fi and walk out and have that switch to being a network.

where is the vast majority of data on wi-fi or moving back and forth or what? >> the vast majority of what we do, particularly in the work environment, but also in -- we found in venues or places where a lot of people all of a sudden come together, happens on wi-fi because the phone system just can't pick that up and can't take that volume. and businesses want to offload that on to wi-fi because once they've left the infrastructure wi-fi is freeh. >> for me as a user, i don't care. i want my video not to stop. >> wi-fi gives you more bandwidth to do that so if you're near a wi-fi access point you're going to prefer wi-fi. >> chuck, you compete with cisco and it's kind of a wonder that anybody can compete with cisco. congratulations on that. cisco recently got very angry at the nsa over the possibility that the nsa is intercepting switches as they are exported out of the country before, you know -- they leave cisco, they

don't get to the customer and nsa intercepts them in the middle, does something, passes them on to the customer. have you seen any evidence that's happening with extreme network switches? >> we haven't. in fact, one of our -- >> are you insulted? >> well, at some level part of what will happen we're not as pervasive around the worl as they are. >> really? cis cisco's orders from brazil fell 27% last quarter. >> and business in china is down quite a bit as well. >> continue. >> in some of those markets, actually our strongest markets, we have a partnership we announce with lenknowvo who is moving in addition to the pc into the server market and using extreme network technology to connect the servers to each other and outside world. from our perspective with the lot of that concern for the a people in china.

similarly, in brazil, is one of our fastest growing regions. again, i don't think we're big enough to be on the radar of nsa and we haven't seen a lot of -- we've seen no feedback whatsoever of customers finding any tampered -- any extreme switches that have been tampered with. >> brazil is in the news lately because of the world cup. >> every day. >> turned out to be a gold mine for high tech. >> it is our fastest growing market by far. and we recently acquired a company called intersis which doubled ournt in brazil and it has been interesting to see how fast that business is growing. >> chuck berger is the ceo of extreme networks. we appreciate you being with us this morning. >> can the world be too small or earth too flat. trying to build a sense of place when "press: here" continues.

welcome back to "press: here." one of the max ims of the internet age has been place does not matter. face time and e-mail shrink the miles and twitter is as important to ta regard square as it is to market street in san francisco. at what cost. a book warns we must reclaim our citizenship. identity and civic life in modern america, a collection of essays say not only can we go home again we must. ted mcallister one of the editors on that book and professor of public policy at pepperdine university. one of the lines i liked in the book was, one can't be a citizen of a motel. i thought, expand on that. that's an interesting idea. for all we value it is important we have some place to call community. >> a place to invest in, a place you can actually help make, right. the same reason you can't be a

citizen of the world. the world is not something you can change or to collaborate with others to make something that's yours. in a motel, it's very temporary, transient, you are engaging with people not to make something together, not to have a common life, which is the core element to having a community or -- for a place to matter, you are, in fact, just there long enough to do what you do. you're very private. you're atomized. you're not engaging in anything that creates anything. creates some kind of -- doesn't turn people from strange nears neighbors. >> now let's hear what our dual citizen has to say. >> are you a citizen of the world? >> a citizen of the united states and united kingdom and very proud to be a squint of both. i have two issues with what you said. i don't see the internet as something -- sort of making everyone think that we're global citizens. we spend a lot of time on the internet in our homes, but, you

know, it can connect us with people around our localities, our communities. as well as people who are on the other side of the world. so i don't really see it as a problem and the second issue to me, why should we worry there's this atomization going on when, in fact, there's so many huge benefits that being able to connect ideas and inspiration from across the world brings to localities? you know, new ways of doing things i might see in beijing that could be done here in boston, what are those wonderful opportunities? what is the problem? >> first of all, not mutually, you can get both, can't you? why can't you understand that you can engage with people through internet communities, for instance, for purposes of common -- for a common interest. you can engage politically that way. you can -- in taiwan people are engaging through social media to regress their grievances. that's not the same thing as a

community. it's something that's valuable. i can stay connectioned with a great number of people this way, but that's not the same thing as a community. so the question is, what do we get from a strong connection to place. on the one hand, you can emphasize that mobility, which americans have been good at from the beginning, we've been moving west, mobility gives us freedom and flexibility, makes us creative, does all kinds of things that the other end of that spectrum take ace way. if you're stuck in a place for your entire life, you're stuck in -- you only have a physical place, but you belong in a social place, mobility helps you escape that, right. if you lost anything, or is there a way of putting the two together. americans have actually been place makers, they move and as soon as they find themselves in a place with strangers, i come from oklahoma city, literally one day it wasn't there, two days later they had volunteer

organization, they had a government, they started creating networks, to take care. strangers, people didn't know each other, connected in a place. they made place. >> so a little bit of a counter example. i spoke to someone this weekend that got back from new york, something called make space, take your stuff, put it in boxes and bring it back for you. i asked is this relevant for anyone who doesn't live in a studio in manhattan and their answer was there's a guy who is a citizen of the world, mostly traveling around europe, making a community where he finds community, but every so often he needs to come home to new york to go to a wedding. for that case he has a box labeled 007 and it's his james bond box that has his tuxedo and arrives in town and goes to his wedding. his stuff connects him to whatever place and people he wants to be with at that moment. >> okay. there's something valuable about that but also something limiting about that. if you're a citizen of the world

and come home to new york city to go to weddings, when are you engaging with people who aren't like you, who aren't in your immediate relationship? when are you working on the habits of self-government like deliberation or compromise? when is the time to do that if your life is devoted to -- your citizen to abstract. >> a minute left. go ahead. >> i see all of these movements now, sort of grassroots politics movement, only look at what the republican party, democrat party has been doing with grassroots movements in using internet tools. you're bringing community up from the bottom. that's a huge sort of place thing because these people are active around their communities. but you're motivating them with the web. seems to me to be a counter to your -- >> i don't think it's a counter at all. i think there is something very valuable about using technologies to mobilize people deeply frustrated about the world they live in. but that's not the same thing as -- it's a different thing

from people who live in a town or a city where they have their own schools, they have their own city government, their own institutions, churches where they buy locally because they want to invest in the people who live there, they get to know neighbors, that's a different kind of relationship entirely. >> and it's -- >> no. i've got to stop you there. yes. ted mcallister has sampled the book with will fred mcclay, why place matters. "press: here" will be back in just a minute.

that's our show for this week. my thanks to my guests. i'm scott mcgrew. thank you for making us part of your sunday morning.

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