We model the performance of the resources in a smart or intelligent building, such as a library or future museum, which relies on advanced localization, complex sensing and actuating, and possibly higher level cognitive modeling or artificial intelligence. Our focus is on establishing a quantitative link between the localization accuracy and the customer quality of service from their interaction with such an intelligent space. We describe a quantitative service model for the intelligent interaction between users and smart IT resources, which is directly affected by the localization accuracy. We provide stochastic simulation results which quantify this interplay between localization resolution and overall smart system performance (or user “quality of experience”).