iot platform as a service
TRANSCRIPT
Powering the Industrial EnterpriseIntroducing the IoT Platform as a Service
By Jesus Rodriguez
About Me…
• Hackerpreneur• Founder KidoZen• Advisor to software companies (Microsoft, Oracle….)• Board member and investor• Speaker and author
o http://jrodthoughts.como http://weblogs.asp.net/gsusxo https://twitter.com/jrdothoughts
Agenda
• IoT Market Opportunity
• IoT Enterprise Challenges
• IoT Platform-as-a-Service
• IoT PaaS Benefits
IoT is destined to power the modern enterprise
Source: Disruptive Technologies, McKinsey Global Institute, May 2013
Connections Driven Growth
•Today: 9 billion Internet-connected devices
•Within next decade: 50 billion to 1 trillion connected devices
• IoT economic impact: $2.7 to $6.2 trillion annually by 2025
Connected Devices by Category
• “There will be 212 billion devices or things connected to networks by 2020.” – IDC
• “We expect the number of connected objects to reach 50 billion by 2020 (2.7% of things in the world).” – Cisco
3
IoT Market Opportunity: 20.6% CAGR
Industry Revenue Opportunity ($B)
Market Opportunity by Sector
Industry Revenue Opportunity ($M)
5 -Year IoT Revenue Opportunity
Market Opportunity by Sector
Source: IDC
Not only is the market growing, but the forecast of market size is growing
IoT Opportunity by Industry
IoT Contributions by Industry
Banking Healthcare Automotive Retail Transport E&U
Monetize
Cash replacement
solutions
Mobile Banking
Paid home care
family services
Pay-per-drive car
rental
Cash
replacement
Sensor enabled
Loyalty cards
Paid Alerts to
travellers
Congestion
charging
Pay-per-use
energy
Optimize
Optimized Cash
management
ER Bed Resource
Mgmt
Component
predictive
replacement
Fleet mgmt
Delivery and
stock
replenishment
optimization
Store layout
optimization
Smart Cities
Traffic mgmt
Airport
Management
Delay non-
essential supply
during peak loads
Extend
Banking the un-
banked
Biometrics
Smarter Subsidies
Life style
monitoring
In-car Movies,
Music, Games
Highly Automated
Driving
Smart Vending
Machines
Delivery Lockers
Mobility ServicesSmart home
services
Control
Remote ATM
Management
Dynamic
Authorization
Remote Hospital
environment
Mgmt
Remote
Drive-train
optimization
Store energy
mgmt
Store parking
mgmt
Dynamic price
labels
Crowd mgmt
Timetable mgmt
Asset mgmt
Remotely control
consumer
devices
7
4.5 Million Developers will Drive IoT Adoption
“Just like in mobile, the value will comefrom an army of IoT entrepreneursaddressing thousands of user needs.”― VisionMobile
IoT Business Value Identification
The market is developing in a recognizable pattern
• The Makers of Things are watching their things perform in the field under real customer use
o Objective: improve product quality and retain customer loyalty
• The Users of Things need to integrate newly available information to deliver business results
o Objective: reduce cost of operations and increase business growth
The business case for IoT technologies
• Makers and Users demand immediate operational improvement and follow-on effective use of refined data to increase profitability
• Bottom line for the IoT business case is “what gets measured gets managed”
Source: “IT Key Metrics Data 2014”, Gartner Consulting Group, 2014
IT Spending by Industry
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%
Software Publishing and Internet Services
Banking & Financial Services
Media & Entertainment
Education
Professional Services
Telecommunications
Cross Industry Average
Life Sciences, Pharma, Medical Products
Insurance
Utilities
Transportation
Industrial Electronic & Equipment
Consumer Products
Industrial Manufacturing
Retail/Wholesale
Food & Beverage Processing
Chemicals
Energy
Construction Materials and Resources
O=71% C=29%
IT spending as a percent of revenue:
Cross Industry IoT Opportunity Survey
of respondents cite data security concerns as the
number one barrier.
ActivelyPursuing
NotConsidering
Adoption Drivers and Barriers
61%of organizations are
actively pursuingIoT initiatives.
6.8%of the average IT budgets
is being allocated to IoT initiatives...
Top IoT Drivers
1. Lower Operational Costs2. Better customer service
and support3. Customer
acquisition/retention4. Business process
efficiency5. Product/service
improvement and innovation
Budgets
Source: Global Technology and Industry Research Organization, 2014
Information Security
34%
N=3568 (Weighted)
Considerations
Common goals of reducing costs couple with downstream use of data for business growth purposes
GBP Revenue is an example
Cross Industry Avg. IoT
GBP Rev 500,000,000
IT Budget % 3.2% 6.8%
IT Budget GBP 16,000,000
Capital Budget 4,640,000
Est. IoT Allocation 1,088,000
IoT Opportunity: RetailAdoption
60%of respondents are
actively pursuing IoT initiatives.
of respondents cite funding the initial investments at the scale
needed as the number one barrier.
10.5%of the average IT budgets is being
allocated to IoT initiatives...
ActivelyPursuing
NotConsidering
40%
Drivers and Barriers Budgets
Source: Global Technology and Industry Research Organization, 2014
Top IoT Drivers
1. Better customerservice and support
2. Lower operational costs3. Customer
acquisition and/orretention
4. Product and/or service improvement and innovation
5. Business process efficiency/operations optimization andcontrol
N=203 (Weighted)
Considerations
Thinning margins while competing with Internet competitors
Customer targeted marketing
Improve turnover
Rev Source: Wikipedia, 2014
Morrisons Retail
USD Rev 28,276,000,000 IoT Allocation
GBP Rev 18,127,743,600
IT Budget % 1.5% 10.5%
IT Budget GBP 271,916,154
Capital Budget 78,855,685
Est. IoT Allocation 28,551,196
IoT Opportunity: UtilitiesAdoption
71%of respondents are actively pursuing
IoT initiatives.
49%
of respondents cite developing a sustainable business model/
proving ROI as the numberone barrier.
12
6.6%of the average IT budgets is
being allocated to IoT initiatives...
ActivelyPursuing
NotConsidering
N=84 (Weighted)
Drivers and Barriers Budgets
Source: Global Technology and Industry Research Organization, 2014
Top IoT Drivers
1. Better customer service and support
2. Lower operational costs3. Business process
efficiency/operations optimization and control
4. Product and/or service improvement and innovation
5. InformationTechnology optimization and/or modernization
Considerations
Lower data acquisition costs
Automate contingent operations
Integration of consumer technologies
Rev Source: Wikipedia, 2014
National Grid Utilities
GBP Rev 14,147,153,700 IoT Allocation
IT Budget % 2.8% 6.6%
IT Budget 396,120,304
Capital Budget 114,874,888
Est. IoT Allocation 26,143,940
IoT Opportunity: InsuranceAdoption
of respondents cite developing a sustainable business model/
proving ROI as the numberone barrier.
13
63%of respondents are
actively pursuing IoT initiatives.
6.4%of the average IT budgets is
being allocated to IoT initiatives...
ActivelyPursuing
NotConsidering
Top IoT Drivers
1. Better customer service and support
2. Customer acquisition and/or retention
3. Lower operational costs4. Product and/or service
improvement and innovation
5. Competitive differentiation
29%
Drivers and Barriers Budgets
Source: Global Technology and Industry Research Organization, 2014
N=176 (Weighted)
Considerations
Significant budget invested to reduce risk through more accurate predictionsLinkage of premiums to claims payment (improve the loss ratio)
Rev Source: Wikipedia, 2014
Prudential Insurance/FS
GBP Rev 37,521,659,700 IoT allocation
IT Budget % 3.2% 6.4%
IT Budget 1,200,693,110
Capital Budget 348,201,002
Est IoT Allocation 76,844,359
IoT Opportunity: Oil and GasAdoption
of respondents cite data security concerns as the
number one barrier.
14
56%of respondents are actively pursuing
IoT initiatives.
7.4%of the average IT budgets is
being allocated to IoT initiatives...
ActivelyPursuing
NotConsidering
37%
Drivers and Barriers Budgets
Source: Global Technology and Industry Research Organization, 2014
Top IoT Drivers
1. Lower operational costs2. Better customer service and
support3. Business process
efficiency/operations optimization and control
4. Competitive differentiation
5. Information Technology optimization and/or modernization
N=121 (Weighted)
Considerations
Production, transportation and distribution is a sensor rich environment
Information Security
Rev Source: Wikipedia, 2014
BP Oil & Gas
GBP Rev 247,761,429,300
IT Budget % 1.1% 7.4%
IT Budget GBP 2,725,375,722
Capital Budget 790,358,959
Est. IoT Allocation 201,677,803
The Opportunity is Huge… but so are the Challenges
Enterprise IoT Challenges
Connectivity
Integration
Data Collection
Scalability
Real Time Analytics
Security
Event Simulation
Connectivity
• Interoperate with I0T protocols such as MQTT, XMPP etc.
•Bridge communications between I0T protocols and traditional line of business APIs
Data Collection
•Process and aggregate millions of events real time
•Execute static queries against dynamic data streams
Integration
• Integrate data produced by smart devices with backend systems
•Use line-of-business data in event stream queries
•Push data to smart devices based on conditions detected on line-of-business systems
Scalability
•Horizontally scalability models to support the processing of millions of events real time
•Elastic and on-demand scalability architecture to adapt to dynamic traffic conditions
Event Simulation
•Record traffic produced by smart devices in an IoT topology
•Replay recorded traffic to simulate and test specific conditions
Real-Time Analytics
•Process analytics based on real time traffic from smart devices
•Visualize traffic from specific devices as well as from different segments of an IoT topology
Security
•Manage and secure the devices of an industrial IoT topology
•Protect the data exchanged between smart devices and corporate systems
You Can Build Your Own Infrastructure
But It Will be Hard
It’s Not Just About APIs
• Complex event processing platforms
• Time series storage
• Data visualization platforms
• Security and data privacy platforms
There Must be a Better Way
The Solution
Introducing the IoT Platform-as-a-Service…
Simple Goals
• Powering industrial deployments of smart devices
• Event data collection
• Line of business integration
• Data security and privacy
• Real time analytics
A Conceptual Model
Protocol Broker Layer
CEP EngineRules
EngineStorage Engine
Real-Time Analytics
Management Operate
Simulation Engine
Security
Industry Solutions
Protocol Brokering
•Goal: Receive data from smart devices using standard IOT protocols
• Relevant Technologies: MQTT, CoAp, ETSI M2M….
•Benefit: Provide a uniform layer for devices to plug in to the platform
Event Processing
•Goal: Process queries against real time data streams
•Relevant Technologies: Complex event processing platforms
•Benefit: Model queries based on conditions against the data produced by IoT devices
Storage Engine
•Goal: Store the data produced by IoT devices and the CEP engine for future processing
•Relevant Technologies: Time series databases
•Benefit: Store time-stamped events produced by I0T devices
Simulation Engine
•Goal: Replay events already processed by the CEP engine
•Relevant Technologies: Complex event processing platforms
•Benefit: Recreate and test scenarios based on historical data processed by the platform
Rules Engine
•Goal: Model if-then conditions against the data processed by the platform
•Relevant Technologies: Dynamic languages: JavaScript, Ruby, Python….
•Benefit: Dynamically detect Boolean conditions about the data produced by IoT devices
Real-Time Analytics
•Goal: Model analytics and reports based on the data produced by IOT devices
•Relevant Technologies: Data visualization technologies: D3JS, Kibana, etc.
•Benefit: Obtain real time intelligence against the data processed by the IoT platform
Security
•Goal: Encrypt and sign data produced by IoT devices
•Relevant Technologies: Traditional data security libraries
•Benefit: Protect data exchanges between smart devices and corporate systems
Putting it all together…
Benefits of IoT PaaS
•Provides a common infrastructure to obtain value from industrial topologies
•Enable uniform communication, security, analytics and management layers for heterogeneous IoT topologies
•Provide simpler and more agile models for building industrial IOT solutions
Summary
• The IoT PaaS is a natural step in the evolution of the industrial enterprise
• The IoT PaaS will include the following building blocks: o Connectivity
o Integration
o Security
o Analytics
o Simulation
o Management
• The industry has produced all the technologies required to build IoT PaaS solutions
Thank You