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The Rising Adoption and Complexity of the IoT VisionDefining the Market Context for Profiling the Chief IoT Officer
Saverio Romeo
Principal Analyst – Beecham Research
IoT Convivio – September 19th 2016
Agenda
• The Status of the IoT Market
• Trends – Technology, Business, Policy
• Who is the Chief IoT Office?
The Three Waves of M2MAfter-Market Applications
Regulatory
Line Fit
• Medium/High Volume
• Embedded networking
• Low cost per unit
• Increasingly requires international coverage
• Fit with international MNOs and MVNOs
• Medium/High Volume during install
• Embedded networking
• Low cost per unit
• Favours tendering process
• Good fit for MNOs
• eCall a crossover (see note below)
• Low/Medium volume per application
• Add-on networking: retrofit
• Medium/High cost per unit
• Often requires high level of support
• Good fit for MVNOs/resellers Vending
Toll Collect
Meter Reading
eCall
OnStar/
Telematics
Handheld
Tracking
Pumps
Vineyard
Monitoring
Car Wash
Source: Beecham Research
Note: eCall in EU is now a unique crossover of Regulatory
with Line Fit characteristics
M2M Market Directions
The Ubiquity of M2M
Cellular M2M Market – Global View
• Cellular M2M connections reaching almost 1bn in 2020.• Monthly connectivity ARPU starts increasing.• Adoption of embedded SIMs can make adoption faster.
262 million Cellular M2M Connections in 2015
Source: Beecham Research, 2016
Source: Beecham Research, “Global IoT Connectivity Market”, Published 2016
Collaborating Multi-ConnectivityThe Rise of LPWAN
Source: Beecham Research, “LPWAN for IoT Applications – Market ReportAnd Forecasts”, Published 2015
1. Cellular 2G/3G/4G . . . 5G
2. WiFi
3. Bluetooth, ZigBee
4. Fixed Broadband
5. Wireless Broadband
6. Satellite
7. LPWA
8. . . . many others
Connections - 2020
Cellular – 65%
LPWA – 25%
Fixed – 9%
Satellite – 1%
Note: Beecham Research is working on the entire set of connectivity. Those shares will decrease with other connectivity.Source: Beecham Research Provisional
Defining the Low-Data IoT
Source: Beecham Research, “LPWAN for IoT Applications – Market ReportAnd Forecasts”, Published 2015
• Low power and low data rate applications and networks• Smart parking, smart farming, alarms• Reaching almost 350 million connections by 2020
NarrowBand IOT (NBIoT)
Low-Data Applications – An Unexplored Territory
Source: Beecham Research, “An Introduction to LPWA Public Service Category”, Published 2016
M2M Cellular Modules per Sector
Source: Beecham Research, “Cellular Modules & Wireless Terminals MarketReport and Forecasts”, Published 2015, Forthcoming 2016
• Key sectors are: transport (fleet management, connected vehicles), utility (smart metering and smart grid), and consumer electronics (connected devices)
IoTFuture
M2MFuture
Definitions
M2MNow
B2B2B:• Enterprise driven• IT integration• Some cross-sector
data combined• Data intelligence• Strategy
development• New business
models
B2B2C:• Enterprise driven (B2B)• May be Govt./City in second “B”• Consumer Lifestyle services
(B2C)• Combining cross-sector mass
data• Real time data stream analysis –
e.g. video• New business models• New market players
“DigitalThings”
“M2M”DATA
From Applications to Spaces
DATA DATA
IoT Applications
INTERACTION
UNDERSTANDING
CONTROL
INSIGHT
& more
Smart City as System of Smart Spaces
Smart HomeGreat Interest from MNOs
Smart Factory or Industrial Internet or Industry 4.0 or Factory of the Future
Source: Beecham Research
System of Smart Healthcare SpacesEfficient Care, Empower Patients, Achieving Savings
Smart Ambulances
Smart Buildings
Connected Citizens
Smart Hospitals
Smart Pharmacies
Smart Surgeries
Smart Homes
Smart Retail
Source: Beecham Research
Smart Farming
Precision farming Small-sized field farming
Precision livestock farming In-door farmingSource: Beecham Research
Wearable Devices as Interface between People and Smart Spaces
Agenda
• The Status of the IoT Market
• Trends – Technology, Business, Policy
• Who is the Chief IoT Officer?
Forms of Wireless Connectivity Becoming More Relevant Within Connectivity Mix
Source: Adopter Survey (IMC, May 2015), Adopter Survey (NDA, March 2016)
Do You See and Increasing Need for Intelligence at the Edge?Substantial Expectation of Need for Real Time Decision Making at the EDGE
Source: Survey (System Integrator, October 2014), Survey (IoT Platform Vendor, March 2016)
To what extent do you expect the level of network traffic to/from your connected devices and products to change during the next 5 years?
Big Increase in Traffic Between Devices and with the Centre
Source: Survey (System Integrator, October 2014), Survey (IoT Platform Vendor, March 2016)
The Importance of IoT Platforms• As solutions become
more complex and mission critical, platforms to support them also need to evolve.
• Need to extend managed environment to the edge.
• Becoming more challenging for enterprise users to ‘grow their own’. Expect more to want to outsource to ‘best-fit’ partner.
• Increasing importance of data management, API management and security.
Key Elements of IoT Platforms
• Data and connectivity management. Device discovery, authentication, management, and control;
• Context-awareness. Collecting, managing and using contextual information (event processing for example);
• Scalability. Being able to enlarge the deployment of devices, agnostically from the type of devices (importance of drivers and APIs);
• Data analytics and visualisation tools. Being able to analyse different data sources (big versus low data, real-time versus batches, high velocity of data production versus low velocity);
• Interoperability. Being flexible enough to engage with other software solutions and exogenous data sources (IT data for example);
• Security. Ensuring the security, the privacy and the integrity of the data gathered.
• Innovation enabler. Creating ecosystem of users and developers through application enablement suites.
Why Using M2M Solutions? Now and in 3 YearsExternal Push for IoT Strategies
Source: Adopter Survey (IMC, May 2015), Adopter Survey (NDA, March 2016)
How Important is the IoT Solution for Your Business?From Nice-to-have to Strategically Critical
Source: Adopter Survey (IMC, May 2015), Adopter Survey (NDA, March 2016)
Key Challenges for IoT Solution Deployment
• Ensuring end-to-end security is of the paramount importance for IoTadopters.
Source: Adopter Survey (IMC, May 2015), Adopter Survey (NDA, March 2016)
IoT Security
IoT Threat Map
IoT Solutions bring security complexity
Approaches to IoT Security• The raison d’etre of the IoT is in the ability to do analytics on big data and to
drive efficiencies and new system development by linking together complex systems which otherwise would not have been able to be connected.
• The challenge with big data is that we have to trust it. It has to have a level of integrity. We also need confidentiality so that only the correct people can see it. So to make big data and the IoT work we have to make trusted platforms work.
• How do we create a trusted platform? We have to develop concepts 1) around confidentiality so that we can protect our data in flight and at rest, 2) around integrity so that we can mathematically prove that the edge points feeding into the system are functioning correctly, and 3) we need to have availability so that even under and post attack the systems are functioning in a correct way. These three together create the secure capabilities that underpin our trusted platforms.
• What is the IoT community (in a Triple Helix sense) thinking of doing? SE and other non communication gateway routes of trust and securing the edge also through gateways.
• What should we avoid? The idea that one IoT security architecture fits all the IoT solution. Do not forget that IoT is context aware by nature.
The Importance of Data Management
Services
• Visualisation tools essential• Context-aware data analytics• Predictive techniques• Real-time data analytics• Skills
Searching for Sustainable Business
Models
• Currently, there are different business models such as: • A la carte’• Pricing Matrix• Pay Per Device• Pay Per Payload• Pay Per Traffic Exchanged• Commoditazion of certain services• SLA on security and data management services• Consultancy models• Combination of the above
Partnership as a Paradigm
Indirect Channels
System Integrator
Developer Community
Distributor
Device Vendor
MNO/Telcos
Solution Provider
• Solution providers and system integrators appear to be the most common go-to-market partnerships.
• Large developer community is highly desirable.
• The common approach is a mix of all of those – an ecosystem approach. Desirable, but difficult to manage.
IoT Policy Considerations
• Promoting the development and use of standards for the IoT(Interoperability)
• Encouraging private sector innovation• Encouraging partnerships (public, private and academic)• Transforming governments and public sector delivery• Evaluating spectrum allocation for IoT needs• Defining IoT security frameworks• Encouraging open data frameworks• Stimulating the deployment of IPv6• Promoting entrepreneurship in the IoT• Promoting skills to respond to the changes in the labour market• Evaluating ethical concerns raised by the IoT vision
Alliances & Consortia
Agenda
• The Status of the IoT Market
• Trends – Technology, Business, Policy
• Who is the Chief IoT Officer?
The Complex Role of the Chief IoT Officer (1)
Designing the Corporate IoT Strategy• Defining the objectives• Defining the methodology, initiatives and solutions (How do we implement that within our company?)• Defining a system of KPIs for measuring the results achieved• Selecting the team• Creating awareness of the IoT Strategy within the organisationsDesign IoT Solution•Experiences from active and completed projects, that have implemented basic IoT approaches and related concepts (project organisation)•Experiences transitioning and expanding software projects into interconnected and data driven products•Interaction and integration of different tools (presented in the context of their specific field of application and different scenarios)•Use cases, that could profit from integrating IoT conceptsSecurity•Potential weaknesses of IoT systems•Secure data transfer and storage•Secure project design and architectures•Data protection and privacy
Concepts and basics•Fundamentals of hardware, electronics and information technologies for software developers•Prototyping and modelling of IoT systems•Architecture of IoT projects•Testing complex IoT systems•User interfaces, UX•IoT and Big Data, including the handling and analysis of data streamsTechnologies•Protocols and communication standards•Microcontrollers•Sensors, actuators•Connectivity•IoT platforms in the cloud•Programming languages, frameworks and libraries•Blockchain•Energy Harvesting
The Complex Role of the Chief IoT Officer (2)
