A Group of Insteon Customers Have Acquired the Company

A small-tech company closed down its servers without informing any of its users.

The Company Shut Down Overnight Without Any Warning

Insteon, a smart-lighting company, shut down unexpectedly in April without telling its customers, according to a Wired report two months ago. This means that the light switches, dimmer outlets, wall keypads, and smart home sensors of its users suddenly stopped connecting with Insteon servers overnight. Obviously, the abrupt change enraged Insteon users, who were unable to control their lights using the Insteon mobile app.

Wired mentioned that customers who attempted to restore their malfunctioning devices to factory settings discovered that they were no longer operational. Meanwhile, some of the company's smart switches are still functional as ordinary on/off light switches.

The Servers Suddenly Worked Without Any Warning

Insteon abruptly shut down its servers in April and then put them back on again without warning almost two months later.

In a separate The Verge report, citing Stacey on IoT, several Insteon users in the U.S. reported their hubs were back up and running on Wednesday.

But the big question is: who turned the company's servers switch back on?

Behold Insteon customers!

Insteon Users Has Acquired the Company

On June 9, the company's new CEO Ken Fairbanks said on a blog that passionate Insteon users stepped in and took over the company.

We are a small group of passionate Insteon users that have successfully acquired Insteon. Like many of you, our homes are powered by Insteon's amazing dual-mesh technology and highly configurable products.

Citing the blog, The Verge noted that it's unclear what "responsibly re-build the Insteon business," means, and whether a monthly charge will be required to keep the servers running.

Nonetheless, this is fantastic news for Insteon device owners. But Jennifer Pattison Tuohy of The Verge pointed out that "it's not a great sign for the smart home in general. No one who buys a smart light switch wants to worry about whether they'll have to buy the company one day just to keep the lights on."

Challenges of Small Tech Companies

Let us talk further on the fact that Insteon's services were shut down without warning to its users.

As per Wired, the inevitability of smart-home tech services going out of business is frustrating, especially for smaller businesses. One of the reasons is that they may find it difficult to sustain products that require years of service.

One of the minor IoT players was Insteon, which has roughly 1.3 million customers, according to Blake Kozak, principal smart-home analyst at technology consultancy Omdia.

However, while 1.3 million seems like a big number, this actually represents only a small portion of the overall smart-home industry.

But no matter the size or scope of the company, Boone Ashworth of Wired highlighted that the abrupt closure raises questions about what responsibility Insteon had to inform those who had invested in its product of the impending changes.

"Other brands have done a much better job of explaining to customers ahead of time to give them some sort of a bridge," Blake Kozak, principal smart-home analyst at the technology consultancy Omdia says. "It has happened before, but this was next level."