Um, Dave, this is what we've been pursuing since day 1.
It just won't work without routing all its commands through an Alibaba server.
There's absolutely nothing local about it. When my net goes out, so does the WM100. I can be on the same wifi and it doesn't work.
That server went down early last week. My X10 wifi went with if. Was connected to the same wifi and internet connection. Nothing worked due to a problem in California.
I'm not saying to ditch the cloud connection, just don't make it the primary means of communication.
For every command to the willie, a piece of data goes out and another comes in. Nothing happens behind the firewall(s).