I am concerned about data privacy, does my Network OWL have to be Internet connected/

Yes our OWL Intuition system requires an always on Internet connection to communicate with our servers for full functionality.

We have a detailed Privacy Policy (http://theowl.com/privacy.html) and Intuition Terms & Conditions (http://theowl.com/intuitionterms.html) our web site which should answer any further questions you have in this respect.