Wireless Grids Wants to Hook You Up

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Precursors and Rivals

Wireless Grids is by no means the first company to attempt to provide the tech glue necessary to connect entertainment and communication devices. In 1990, an Apple spin-off called General Magic tried to bring together computer, communications, and consumer electronics companies around a new kind of handheld device that would share information and computing resources on a network, using an operating system called Magic Cap. Sony (SNE), Motorola (MOT), Philips, and AT&T (T) were among the partners and investors in the company, which went public in February, 1995, and ceased operations in 2002. Other early attempts resembled General Magic in that they were overpriced and locked users into hardware solutions, says Knight.

More recently, companies such as Sling Media and Orb Networks have enabled users to access their media on different devices, while Pure Networks makes it easier to connect all kinds of gizmos in the home. Consumer network storage companies like Western Digital (WDC) and Linksys, a division of Cisco, allow remote access to home content by consumers and the people they designate. So it's a good time for Wireless Grids to make its move.

ABI Research predicts 206 million households around the globe will have home networks by 2010, generating $11.5 billion in revenue. But setting up a home network can be hard for those who lack tech expertise. The task only gets harder with more sophisticated gear. "Wireless Grids can be the next huge market opportunity, not only for this company but for a wide variety of industry players from semiconductor and device manufacturers to network, software, and content providers," says Berge Ayvazian, chief research officer at Boston tech consultancy Yankee Group.

Top Talent Signs On

The company has had no difficulty attracting smart people. One recent recruit was Norman Lewis, former head of research on the convergence of Internet and wireless technologies at the French phone company Orange. After reviewing the technology, Lewis quit his job and signed on as Wireless Grid's chief strategy officer. Another convert is Jim Anderson, a co-founder of About.com, a Web site that provides consumer information and advice. Anderson is serving as an adviser to Wireless Grids and plans to provide specially designed information security technology from a company he now owns, to make sure unwanted intruders can't hack privately run grids.

In the three years since its launch, Wireless Grids has raised more than $800,000 in funding from business angels and $400,000 from companies doing research. It's now trying to raise venture capital. The company plans to make money by embedding its technology into the next generation of wireless devices, selling it as an add-on service to existing home-network offerings from telcos or cable operators, and charging a range of royalty fees.

The company will eventually release its technology to open-source software developers. But first it plans to let it loose on college campuses and see what uses the students come up with. As Lewis says, "it is often the unintended outcomes that are most illuminating."

Jennifer L. Schenker is a correspondent in BusinessWeek's Paris bureau