iot outlook: market trends, opportunities, and wind river

IoT Outlook: Market Trends, Opportunities, and Wind River Michael Krutz, Senior Vice President and Chief Product Officer

2 © 2016 Wind River. All Rights Reserved.

A Look Back

2011: IoT added to Gartner Hype Cycle

A Look Back


1832: Electromagnetic telegraph is created

1844: Samuel Morse sends the first Morse Code public telegraph

1966: Karl Steinbuch predicts connected industrial products

1969: Arpanet Deployed

1974: Beginnings of TCP/IP

1984: Domain Name System is introduced

1990: John Romkey creates the first Internet-connected toaster

1993: Quentin Stafford-Fraser and Paul Jardetzky create the connected coffee pot

1999: Internet of Things term is coined by Kevin Ashton

2000: LG announces the connected refrigerator

2010: Connected devices reach 12.5 billion


What is the Internet of Things?

3

• It is a new way of grouping or looking at a combination of marketsand technologies

• It is an architectural construct to allow multiple industries to look at their evolution in a consistent manner

• It is a way to accelerate significant business transformation in a connected world

• It is NOT a new market, it has been called other things in the past (i.e. M2M)


Favorable Conditions: Why Now?

COST OF

PROCESSING 60XPAST 10 YEARS

COST OF

SENSORS 2XPAST 10 YEARS

COST OF

BANDWIDTH 40XPAST 10 YEARS



What Companies Are Doing with IoT Today

IoT Connections by Sector, 2015Source: Machina Research 2016

Business (29%)

Car (3%)

Cities (3%)

Consumer Electronics (21%)

Energy (10%)

Health (2%)

Home (26%)

Industry (6%)

In 2015 IoT Was Dominated by the Connected Business Category

Do not currently use digital technologies tomonitor products and customers, but plan

to do so by 2020

Through digital devices (for example,digital bracelets) that customers can wear,

which allow the company to trackcustomer usage of products and services

Through digital sensors and other devicesin locations where business is conducted(for example, stores, branches, offices)

Through digital sensors in products thatsend data to the company on how those

products are performing

In production and distribution operations totrack product flow to customers

Through mobile apps that customers useon smartphones, tablet computers, or

other digital devices

Ways in Which Companies Use IoT Technologies

Source: Tata Consultancy Services, 2015

0 10% 20% 30% 40% 50%

Mobile Apps

Supply Chain Monitoring

Product Monitoring

Premises Monitoring

Customer Monitoring

Not Used


A Deeper LookWhat Companies in APAC Are Doing with IoT Today

Source: Tata Consultancy Services, 2015

Asia-Pacific

8.2%

23.0%

34.4%

24.6%

41.8%

39.3%

Do not currently use digital technologies to monitor our products and customers, but plan to do so by 2020

Through digital sensors and other devices in locations where business is conducted (for example, stores, branches, offices)

In production and distribution operations, to track product flow to customers

Through digital devices (e.g. digital bracelets that customers wear, which allow your company to track customer usage of products and services

Through digital sensors in products that send data to the company on how those products are performing

Through mobile apps that customers use on smartphones, tablet computers or other digital devices

Ways in Which Companies Use IoT Technologies

0 100 200 300 400

India

Brazil

Japan

USA

China

Machine LanguageDevice-to-device connections, mSource: GSMA and Economist.com

2014 2020 Forecast


IoT in Action

Premises Monitoring

Tracking customers’ experience at a firm’s place of business (for example, stores, branches, hotels)

Supply Chain Monitoring

Tracking a firm’s production and distribution operations

Customer Monitoring

Tracking how customers are using and what they’re saying about a firm’s products and services

Product Monitoring

Tracking products and/or services after customers purchase them


Premises MonitoringSmart Building



Product MonitoringSmart Healthcare



Supply Chain MonitoringSmart Logistics



Customer MonitoringSmart Factory/Smart Worker


13 © 2016 Wind River. All Rights Reserved.13

Unbound Growth



Immediate Industry Needs

Manage the device lifecycle

Reduce operational expenses from deployed assets

Extract more value from existing infrastructure

Protect against increased security threats

Keep up in an increasingly competitive landscape

Reduce truck rolls

Speed deployments


Business

Optimization

Business

Transformation

ValueCapture Shift



Business Interests Driving IoT Demand

Optimization

• Maximizing value of existing assets

and investments

• Introduction of new efficiencies

• Positive shifts in OpEx and CapEx

Transformation

• Access to new revenue streams

• Transitioning Business Models

• Positive shifts in value creation and

value capture

© 2015 Wind River. All Rights Reserved.16

What is the WIND RIVER strategy?


Make the reality of a software-defined world

safe, secure, and reliable.

Transform our customer’s business to deliver

the promise of a software-defined world.

WE ASPIRE TO . . .

OUR FOCUS IS TO . . .



The Future is Software-Defined: Three Horizons

Value

Time

Connect the

Unconnected

Intelligent

Interconnected Things

Software-Defined

Autonomous World

Basic connectivity, security, and

device management for devices so

you can extract basic telemetry data

Increase intelligence at the edge

and intelligence where and when

you need it

OT distributed compute transitions to

virtualization lowering TCO, enabling

faster adoption of innovation, and

increased scalability


Wind River Helix Portfolio

Devices Gateways

Sensors

Customer

PremisesOn-Premises

Cloud

Connected

Devices

Networks Clouds

Business

Intelligence

Addressing the system-level challenges and opportunities of IoT with ease, simplicity, and speed.

CRM

ERP

Marketing

Cloud

Service

Cloud

Enable the Edge



Devices Gateways

Sensors

Customer

PremisesOn-Premises

Cloud

Connected

Devices

Networks Clouds

Business

Intelligence


CRM

ERP

Marketing

Cloud

Service

Cloud

Streamline the OT Lifecycle



Devices Gateways

Sensors

Customer

PremisesOn-Premises

Cloud

Connected

Devices

Networks Clouds

Business

Intelligence


CRM

ERP

Marketing

Cloud

Service

Cloud

Provide the Critical

Infrastructure



Devices Gateways

Sensors

Customer

PremisesOn-Premises

Cloud

Connected

Devices

Networks Clouds

Business

Intelligence


CRM

ERP

Marketing

Cloud

Service

Cloud


For over 30 years, Wind River has

partnered with our customers to lock down

their machine data. Now we will help you

unlock that machine data to safely and

securely capitalize on the IoT opportunity.


IoT will disrupt the supply chain and traditional business

models. Wind River and our partners are dedicated to

helping you capture the immense value of IoT.

iot outlook: market trends, opportunities, and wind river

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