Internet Connected Devices: Evolving from the Internet of Things to the Internet of Everything. Bill Morelli Associate Director

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1 Internet Connected Devices: Evolving from the Internet of Things to the Internet of Everything Bill Morelli Associate Director SEMI Texas Fall Outlook October 30, 2013

2 IoT vs Connected Devices Internet of Things (IoT) The concept that the status & location data of objects can be used to automate systems, and provide real-time monitoring of people and things these dynamic interactions are intended to improve efficiency, productivity, and quality of life Internet Connected Device Any IP addressable device that can directly access or be accessed by other internet connected devices ranging from basic sensors and telemetry to powerful computing devices with a full OS and UI

3 IoT Technologies Wired WPAN WLAN WWAN Ethernet Coax Fiber Etc Bluetooth ANT ZigBee Etc x Cellular Satellite

4 IoT Market Segmentation Node Endpoint with limited intelligence, e.g RFID tag, sensor Infrastructure Devices which handle data, e.g. switches, routers Controller Intelligent device with UI, e.g. smartphone, tablet

5 IoT Applications Consumer Automotive Consumer Devices Telecommunications Industrial Home & Building Automation Medical Data Center & Cloud Commercial Transportation

6 Internet of Things Hierarchy Internet of Things Electronic Connected Unconnected IP Addressable Non-IP Addressable Internet Connected Closed Network All Objects Non- Electronic Tagged Untagged Internet of Everything Unconnected Objects Devices - Classic versions of a desk, chair, soda can, fire hydrant, animal collar, shipping pallet, buildings, etc. Unconnected Electronic Devices - Classic versions of a calculator, streetlight, vending machine, coffee maker, blood pressure monitor, etc. Connected Electronic Devices - Classic versions of a Bluetooth headset, printer, computer monitor, DVD player, licensed mobile radio unit, etc. IP-addressable Connected Devices: Tablet PC, smartphone, Infotainment head unit, smart meter, EV charging station, home health hub, etc.

7 Internet of Everything Evolution Internet of Everything (IoE): represents the open access to data from one or more monitoring and control systems by third-party applications to provide unique, additional value to stakeholders. Connect Devices Collect Data Access Data Complex Analytics Unique Value Connectivity Intelligence Sensors Storage Cloud Standards Open APIs SECURITY Big Data Realize the true potential of a connected society.

8 IoT Forecast, World, ,000 16,000 50,000 40,000 14,000 12,000 10,000 30,000 8,000 20,000 10,000 6,000 4,000 2, Automotive Communications, Fixed Communications, Mobile Computers Consumer Industrial Medical Military & Aerospace New Device Shipments

9 Market Drivers & Enablers Expanding Capacity - IPV6 Implementation - Network upgrades (LTE & fiber) - Efficient/improved Backhaul - Data Centers Ultra-Low Power Very low power processors which can be implemented in a wide range of industrial (and novel) applications will be increasingly important. Market Penetration As IP-addressable devices become more commonplace and IoT use cases better understood, the commercial benefits are expected to drive increased connectivity.

10 Market Challenges & Restraints Global Economy: Many IoT initiatives rely on significant infrastructure investments. The next 2-3 years are expected to see slow uptake as a result of tighter consumer budgets, a sluggish housing market, and lower overall Industrial CapEx. Business Models: A compelling business case with a solid ROI is required for equipment manufacturers, end-users, or service providers who are considering investment in the internet connected devices market. Security & Privacy: Potential benefits of IoT for consumers and businesses include more personalized goods and services however, to gain user acceptance this information sharing must balance personalization with privacy, and all must be highly secure

11 IoT Case Study Smart Port Logistics Hamburg s docks are limited to an area of 27.8 square miles, yet the number of containers that pass through each year is expected to triple from the current 9.1 million. "Smart Port Logistics", a 3 month joint pilot project by the Hamburg Port Authority, Deutsche Telekom and SAP was launched in This solution streamlines flows of goods and keeps up to 40,000 vehicles a day in check. Real-time information about freight orders and the traffic situation provided by an IT-assisted traffic management system. Optimized flow of goods minimizes traffic jams and waiting times for truck drivers. 11

12 Q & A 12

13 Thank you Bill Morelli Associate Director M2M & Internet of Things +1 (512)

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