Industrial Internet of Things Bears Fruit with Connected Services for Plant Assets and Fleet Migration

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1 Industrial Internet of Things Bears Fruit with Connected Services for Plant Assets and Fleet Migration Peter Reynolds Director of Consulting ARC Advisory Group

2 Session Abstract The Industrial Internet of Things (IoT) has become a strategic enabler for enterprises. While plant floor and business systems are continuing to meld, the opportunity to transform manufacturing operations by changing the deployment of technology is apparent. This new wave of Industrial IoT technology fueled by cloud services is allowing manufacturing and process plants to better manage plant assets, improve safety, maintain costs, and improve operational uptime. IoT enables the creation of new business and asset service models and liberates the information that has traditionally not been available to experts outside the walls of the plant or factory. Operations and maintenance especially will benefit from a larger support network of staff, experts, and OEMs. First mover organizations benefiting from IoT have realized that traditional plant architectures do not easily scale to support the flow of information across company boundaries and even international borders, and common internet and wireless technologies can provide the security and reliability for their business. These services are easily expandable across multiple plants and facilities. 2

3 Internet Of Things 3

4 Internet The Internet is a global system of interconnected computer networks that use the standard Internet Protocol Suite (TCP/IP) Source: WIKIPEDIA 4

5 Things 1. an object that one need not, cannot, or does not wish to give a specific name to. 2. an inanimate material object as distinct from a living sentient being. Source: Google 5

6 What is The Internet for Industry? Wired Networks you own and build Ethernet Industrial Buses (Profibus, Fieldbus, Hart,) Network Switches Wireless Radio - Proprietary Wireless HART / ISA 100 Automation systems LAN / WAN managed by others. Internet Service Providers like AT&T, Sprint. Tata, Cogent Cloud Data Centers Cloud Services 6

7 What are the Things for Industry Non Human stuff Field Sensors Final Control Elements Rotating Equipment Production Lines Big Metal Assets Vehicles Buildings Infrastructure 7

8 ARC s New Industrial IoT Model Applications Applications Tools to solve specific business problems in your industry IoT Criteria: Network Connectivity Platform Analytics Platform Devices Devices Security Analytics Simple for People to Use Adaptable to your industry at a price point that you can afford. 8

9 Main Components of Industrial IoT Intelligent Assets, Devices, Products or Machines Technology-enhanced with sensors, processors, memory, communications Software-defined behavior Reactive, predictive, and social Potentially self-aware and autonomous Data Communications & Infrastructure Cloud-based Big Data storage Complex Value Chain Analytics and Software Asset Optimization and System Optimization Descriptive, Predictive, and Prescriptive Analytics Intelligent Information when and where people need it People, Processes, and Systems Social, connected, better decisions, etc. 9

10 The IIoT Deployment Will Likely be in The Cloud? network management tools software hardware facilities security support backups IT labor power/cooling maintenance disaster recovery Acquisition cost is 10% of IT Spend Operating cost is 90% of IT Spend 10 10

11 How Secure is a Public Cloud for IIoT? ISO27001 HIPAA BAA SSAE 16 FISMA US FED Ramp 11

12 Posturing For A more Secure Internet Identity Management. Cloud Security Standards Entertainment Industry Drove Broadband Internet Investment Financial Industry Drives Investment in a More Secure Internet BitCoin. 12

13 Cloud Traffic Forecast 2018 Global Data Center Traffic Global data center IP traffic will triple. Overall, data center IP traffic will grow at CAGR of 23 % Data Center Virtualization and Cloud Computing Growth 80% of workloads will be processed by cloud data centers; 22 percent will be processed by traditional data centers. Source: Cisco Global Cloud Index Forecast and Methodology,

14 Cloud Service Delivery Forecast percent of the total cloud workloads will be Software-as-a-Service (SaaS) workloads. 28 percent of the total cloud workloads will be Infrastructure-as-a-Service (IaaS) workloads, down from 44 percent in percent of the total cloud workloads will be Platform-as-a-Service (PaaS) workloads, down from 15 percent in Customers Will Expect More SaaS Source: Cisco Global Cloud Index Forecast and Methodology,

15 Public vs. Private vs. Traditional 15

16 The Foundation for Things 16

17 The Connected Oilfield Use Case #1 Avoid expensive unplanned downtime Service Staff Analytics Predict Seal Failure on Water Injection Pump Workflow Cloud Ship Seal to Rig Technician Data from Equipment (including pressure) Change Seal During Next Maintenance Cycle; Save $7.5M Oil Platform 17

18 Planning for IIoT Must be Strategic Typical Industry Practice Cost and Effort Culture Too Much Time Spent on Tech Higher Risk Strategy & Principles Standards Policy Process People Technology Normal Planning Process 18

19 The IIoT Connected Facility OSIsoft Example PI Cloud Connect OK, I ll publish the bearing temp of P-004, but only for you PI Connect PI Cloud Connect (SaaS) I would like to monitor the bearing temperature of pump P-004 OK, I will subscribe to the P-004 bearing temp data stream PI Connect PI Cloud Connect Cloud (Windows Azure) used for secure communication; requires PI at each site 19

20 Thank You. For more information, contact the author at or visit our web pages at Peter Reynolds Director of Consulting ARC Advisory Group 20

21 Backup Slides 21

22 Would You like Your Solution in the Cloud or On Premise? Smart Grid Solutions 22

23 Deployment Options and Changing what your Technical Organizations do (Slide courtesy of Microsoft) Higher Cost Lower Agility Private ) Applications Data Lower Cost & Higher Agility Softwar e (as a Applications Service) Data You manage Runtime Middleware O/S Virtualization Servers Runtime Middleware O/S Virtualization Servers Managed by vendor Storage Storage Networking Networking 23

24 Cloud Computing Characteristics Cloud Computing is about Increasing the Clock Speed for Automation and IT and delivering more solutions, faster 24