> Why does this need to connect to your servers? Because that's where the signal gets processed. We store all signal data ever captured and do all the math on an analyze server. The benefit of this is that as our hardware can be cheap enough to replace or give away and when our algorithm improves so too does all historical data.
> What happens if you become insolvent? Not sure yet. What happens if any of your providers become insolvent?
> Why can't I just buy the damn thing then use it? Because there's no margin or recurring value in the damn thing. And selling hardware is a bad idea right now.
> Why do I have to pay for a subscription to a service which is effectively a simple proxy between the device and my infrastructure? Because we're not selling the device. We're selling the analyzed data. Also, I should probably say, you're not our target customer. We're after companies that control / manage large networks of locations not individual developers.
To be honest, we'd love to give this to any developer who wants it and just see what they build. Hopefully, we'll be able to do that someday and support that community properly. Until then, this is the best way for us to be a sustainable business and not rely on the crazy thin and ever-decreasing margins of hardware sales.
Hope that addresses some of your questions.
Andrew
http://fortune.com/2015/05/22/meet-density-a-startup-that-le...
The cynic in me sees this as as a requirement to justify their (current or future) venture funding. So that they can justify a high valuation in their eventual acquisition and shutdown in the next 12-36 months.
It's not enough to 'just' build a good product and sell it to customers anymore.
Yeah, isn't it terrible that there are companies trying to get money out of customers... :P
My comment is tongue-in-cheek but the macro point here is why should a company that invents something or provide a value need to do so in a way that minimizes their profit margin?