Earlier quoted context omitted.
It would be fun stuff to build, but I feel like you'd struggle to make money. Google and Amazon can afford to give away the hardware, and they can smuggle their ecosystem into your house as a thermostat or a smart speaker or a phone app, or whatever. Like, how do you persuade the audience of enthusiasts (think: Unifi buyers) to pay for a subscription to managed software they run on their own computers, raspis, whatev…
there are actually tons of companies in this space already making money (e.g., wyze), but it’s highly fragmented and none have a unified vision or product strategy yet. so yes, they’re vulnerable to the behemoths right now, but those dynamics aren’t locked in yet. it’s mostly tough because of the high upfront capital costs (manufacturing, r&d, and marketing). people still talk fondly about discontinued apple routers…
This seems a lot easier to me than on-prem cloud services, either in BYOH form ("but it's just software") or as a packaged appliance ("another hub to install, really?").
I would say that the closest thing to this right now for paid is coming from the storage side— NAS providers like Synology using hardware sales to support a limited ecosystem of "one click" deployable apps. And for free, it's ecosystems like HomeAssistant, which a lot of people just deploy as a fire-and-forget RPi image, but as expected with a free ecosystem, as soon as you get off the ultra-common use cases, you're reading source code to figure out how it works, and wading through a tangle of unmaintained "community" plugins that only do half of what you want.