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March 1, 2004

Red Herring

Bionic Dust

The company lands a $7 million first round to scatter its tiny sensors far and wide.

By Andrea Orr

If a tiny Berkeley, California networking company has its way, its products will be as ubiquitous as its name suggests.

Dust Inc. made the transition from speculative university research group to promising commercial business earlier this month, when it won venture funding from a group of firms, including the Central Intelligence Agency's In-Q-Tel venture arm.

It is not the biggest deal of the month, or even the week - Dust secured a relatively modest $7 million in its first round - but it's enough to win national media attention and capture the imagination of people who still prefer to associate technology with a brave new future.

Dust makes small sensors designed to work together through "mesh" networking technology to monitor everything from human movements and systems malfunctions within a large office space or department store, to enemy troop movements in Iraq. One military application, in particular, has been in the spotlight: the idea is to scatter whole handfuls of these sensors around a military base to detect movements in the area. Each sensor, equipped with its own computer chip, power supply, and wireless communications devices, would be able to record data on everything from light to temperature to vibrations, forming an effective and relatively low-cost barrier against enemy troupes in the area.

Sensing technology is not really new. Today, information-gathering sensors are found in a host of consumer products from refrigerators to cars. A Canadian winery has already used wireless sensors to track small temperature fluctuations to determine the best time to harvest its grapes. But Dust hopes it can make these sensors much more ubiquitous. Building on more than 10 years of university research, the company has reduced the size, the energy demands, and the cost of sensors to make them practical in a wide range of applications. Each new generation of the product takes it a step closer to becoming as small and commonplace as the company name.

"The sensors themselves usually cost between $1 and $2," says Kris Pister, Dust's chief technology officer. "But it can cost $600 to install one. It's ridiculous."

Mr. Pister, who spent much of his career working on this technology while teaching at the University of California at Berkeley, projects that within a year or two, installation costs for Dust sensors will be closer to ten dollars. One big difference will be the size of these sensors. Currently about as big as a pager, newer versions will be smaller than a bottle cap, Mr. Pister says.

"We've got an enthusiastic response and have customers lined up," says Mr. Pister, noting that potential customers include U.S. government agencies and large private-sector manufacturing companies that make test and measurement equipment, and are interested in incorporating remote sensing technology into their products.

"I've been at this for years, but from a business perspective it came out of nowhere," Mr. Pister says. "People in academic circles have known about this for a long time, but suddenly, people started to say, 'you've got to get this into our hands.'"

"It's an intriguing market," notes Paul Koontz, general partner of Foundation Capital in Menlo Park, California., which led the latest round of funding. He said that while there are several competitors seeking to break into this rapidly expanding market, Dust has "a combination of a brilliant technology and a prototype demonstrating that much of the technological risk had been worked through."

Mr. Koontz says he was especially impressed by the way Dust's remote sensors, also known as motes, can communicate with each other, essentially building a network that automatically detects a weak link. "If some are shut down, the mesh network will heal itself, and figure out how to rout the data around the lost nodes."


As promising as the technology sounds, other companies have stumbled trying to generate a broad market for these remote sensors. One such company, Graviton, also won funding from the CIA's In-Q-Tel and showcased promising ways to use wireless sensors to remotely monitor security checkpoints and baggage-checking machines at airports. But the technology never got off the ground, and Graviton's assets were later acquired.

Dust's Mr. Pister, however, maintains that the main hurdle to broad commercialization of these products is driving down costs. That is something his company is rapidly achieving.

Another challenge is getting Dust sensors integrated into real-world products. "There are some pretty far-out sounding applications, that are really not that far away," he said.

Homeland Security is one such application. In theory, at least, it should be possible to insert one of the company's wireless sensors in every cargo container so that authorities could know before it arrives on U.S. soil whether it has been opened or in any way tampered with while it was en route.

He stresses though, that all the talk of national security uses of his product should not diminish the more mundane, yet lucrative applications closer to home.

One of the businesses Mr. Pister is most excited about is using Dust sensors to track power consumption in big office buildings, grocery stores or department stores, so that businesses can better identify waste and system malfunctions, an often overlooked problem, that can cost companies millions of dollars.

"Huge inefficiencies are created by empty offices that are heated, and a lot can be done to better monitor this kind of thing," says Foundation Capital's Mr. Koontz. "By installing sensors in every room, there is an opportunity for savings of millions of dollars per year."

Small sensors that talk with each other across a vast area is no longer pie in the sky technology. According to Mr. Koontz, the technology itself is not complicated: "The basic notion of running on a low power network is actually very simple," he says. What's more, "there are prospects for a very large market."

With the technology no longer the stuff of the future and its potential to boost efficiency and reduce costs in offices and elsewhere, don't count on Dust being swept under the rug any time soon.

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