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1 ISSN JOURNAL ISSUE 22 // JULY 2014» PAGE 4 Big Data security by Rohde & Schwarz» PAGE 16 Wearables Smart protocols for smart technology by Rutronik The role of Big Data & Data Security in M2M Interview with Michael Curry New security challenges emerge for Big Data in the Internet of Things usage-based insurance (ubi) Technology is reshaping vehicle insurance

2 Contents 04 Big Data Security Choosing the best encryption solution Interview with Michael Curry The role of Big Data & Data Security in M2M REGULARS Wearables Smart protocols for smart technology 03 Editorial by Joachim Dressler, Executive Board M2M Alliance e. V Big Data Security by Peter Rost (Rohde & Schwarz) The role of Big Data & Data Security in M2M Interview with Michael Curry (IBM Software Group) New security challenges emerge for Big Data in the Internet of Things by Emil Berthelsen (Machina Research) M2M and predictive analysis on the path to practical use by Martina Tomaschowski (Empolis) The slow track to ecall deployment by Angela Spielberg (7Layers AG) Technology is reshaping vehicle insurance by Cyril zeller (Telit Wireless Solutions) Events Strong growth opportunities with Industry 4.0 by Wolfgang Dorst (BITKOM) Wearables Smart protocols for smart technology by Lan Hong (Rutronik Elektronische Bauelemente GmbH) How to design a low-cost secure 2G / 3G / 4G router or gateway by Harald Naumann (Future Electronics) New Big Data methods for M2M communications Fraunhofer IAIS leads EU FERARI project by Dr. Michael Mock (Fraunhofer Institute) M2M satellite communication takes the edge out of risky mining operations by David J. Roscoe (SkyWave Mobile Communications) M2M Summit gets manufacturers and users talking by Ludger Voetz (Braun-PR) M2M Alliance Academic Event on 8 th July 2014 New members of the M2M Alliance e. V. 2 M2M Journal July 2014

3 Dear readers, I would like to extend a warm welcome to the latest edition of the M2M Journal. A lot of exciting content awaits and will be further explored. With Big Data and Security being the topics dominating the M2M and IoT world over the past weeks and months, the authors in this Journal will provide further valuable insight on this matter. M2M Journal Copyright M2M Alliance 2014 Further editorial submission of articles in the M2M Journal is wel comed. Please send a specimen copy to the editor or, if published online, send the url per to Despite thorough examination, the editorial staff and publishing company cannot be held liable for the accuracy of publications. Contributions with a by-line showing the name or initials of the author do not necessarily represent the opinions of the editorial staff. M2M and IoT as a nature of the business will connect increasingly more nodes that will provide data from endpoints. Data will be more granular, more frequent, and more accurate, with bigger data sets or even live data streams. All of this results in what is called Big Data. We will want to connect this with data received from other sources such as one s own Enterprise Resource Planning (ERP) or external information services. The goal is to enrich M2M applications to become more intelligent and deliver more value for individuals and businesses and to become the Internet of Things. The industry is growing, out of small individual solutions with easy-to-handle data streams, into a complex and connected world. For this reason, companies like IBM, HP and SAP have recently joined the M2M Alliance. Big Data needs to be protected. Although this is not a new subject, as security in the IT world has been eminent for many years, it is now becoming more prominent in the M2M and IoT space as well. Companies want to safeguard against interception of valuable application data and customers want to make sure their privacy is protected. Cyber attacks, such as hacking, should be readily prevented to avoid system failure. With the BSI (German Federal Office for Information Security) driving for data protection profiles and the NSA listening into data communication, it has become a pressing issue that requires attention. These challenges can be solved and are already addressed. Security concerns need to be considered by drafting M2M solutions, made possible by the fact that solutions are manageable and specialists are available on the market that can handle these issues. M2M and IoT are growing market opportunities, rapidly changing our business environment. If we play it right, we can change it for the better. The M2M Alliance has been very busy in the past weeks planning and arranging the biggest M2M event in Europe, the M2M Summit 2014, hosted again at the CCD Congress Center Düsseldorf in October. Meet us at this fantastic location, with an agenda filled with valuable speakers and top-notch topics finished with a stunning evening event at the Rheinterassen. Many participants from the 2014 Partner Country usa are expected to be there, as well as from Sweden and Canada. All is well on the way and we hope to see you all make your reservation today. Enjoy reading. Yours, Joachim Dressler Member of the executive board, M2M Alliance July 2014 M2M Journal 3

4 Article Big Data Security Machine-to-machine communication is driving a massive increase of data traffic across local and wide-area networks. These data need to be processed and analyzed in real time, to maintain infrastructure integrity, optimise system control setting and maximise business and user benefits. In addition to securing cyber physical systems themselves, the network linking them to Big Data capable data centres needs to be secured as well. C ompanies are able to transmit data at immensely high speeds thanks to fiber-optic connections. Reports in recent months have revealed: even those optical links can be tapped with modest efforts and low criminal energy. The question today is not whether or not data needs to be encrypted. Rather, it became clear that personal and business-critical data need not only be stored in encrypted form but also transmitted in such a way that any unauthorised use is prevented. Increasingly, corporations recognise that closed production environments or real-life M2M systems are becoming more vulnerable to cyber-attacks that try to leak valuable data, or even to sabotage parts of or the entire distributed system through data manipulation. usually, protecting inter-device communication and the link to the respective control and management systems through encryption does the job very well. Since data encryption often considerably delays the transmission of data through their inherent latency, innovative solutions are needed for real-time environments like M2M systems, that offer high security without compromising speed. Requirements vary widely, depending on the specific needs of the user. Data security has become an issue of utmost importance for organizations processing personal data and technological intellectual property. M2M communication adds real-time requirements to the Big Data challenge. This results in tremendous amounts of data to be transmitted and processed without perceivable latency. High speed data networks are therefore the imperative basis for this endeavour. Plus, Big Data implies an ever increasing need for huge, geo-redundant storage capacities. Nonetheless, data exchange between different systems must remain efficient while providing highly secure encryption. To achieve this, new approaches to encryption are required. CHOOSING THE BEST ENCRYPTION SOLuTION Companies and government authorities can currently choose between two approaches in order to protect their network: IPsec-based encryption on OSI layer 3 or Ethernet-based encryption on layer 2. Both alternatives are justified, so it makes sense to select the encryption layer according to the operational scenario. Companies holding classified information usually need to comply with stringent security requirements. This calls for efficient and full data protection during communications over a network. Layer 3 encryption is unable to provide this. All it can encrypt is the IP payload; the re-

5 maining information, e.g. the layer 2 protocols below layer 3 will remain untouched. This means that while the payload is fully protected, the header remains unencrypted. Information, such as who is communicating with whom, could be read out and used for attacks. The risk of such disclosure is especially strong in M2M systems, where location info combined with data manipulation potentially leaves total control to attackers. Another factor is the enormous overhead load added by IPsec-based encryption. The cryptographic overhead required for protecting the transmitted packets varies depending on the packet size, but consumes up to 60 percent of the available bandwidth. This means that more than half of the transmission bandwidth is not available for the payload. The result: Depending on the currently active applications, bandwidth losses are possible that cannot be calculated in advance. Another aspect to be considered is the extra time required for evaluating and processing the packet header in line with the IPsec protocol. This increases latency and limits performance compared with unencrypted transmission. In other words, encryption reduces efficiency for the company in terms of time and cost. The advantage: IPsec-based encryption works in all routed networks and is therefore a standardised solution. The alternative is Ethernet-based layer 2 encryption. Its main advantage over IPsecbased encryption is the bandwidth gain due to the minimised overhead load. There are encryption protocols also on layer 2, but these are limited to handling communica- tions between the encryptors on either side, and therefore consume up to 40 percent less bandwidth than layer 3 encryption protocols. This means a significantly smaller delay in the data flow, resulting in possible payload throughput rates of 10 Gbit/s to 40 Gbit/s as compared to those achievable with layer 3 solutions, which in practice are limited to 3 Gbit/s to 5 Gbit/s. And there is an additional benefit: Layer 2 encryption is not only faster and more efficient but, in addition to encrypting the payload, it also encrypts the IP addresses, making them unreadable for unauthorised parties. NEW HIGH-SPEED ENCRYPTORS A new solution developed by Rohde & Schwarz SIT has been designed for the encrypted, realtime exchange of enormous amounts of data. It is the world's first dedicated Ethernet encryptor featuring 40 Gbit/s data throughput. This solution is the first to optimise the performance-critical characteristics of bandwidth, latency, quality of service, port density and energy consumption in a single box of one height unit. The new encryptor class is ideal in particular for utilization in M2M infrastructure and telecom backbone networks and for use with highspeed WAN connections. It offers protection in public and private networks without compromising their efficiency. Encryptors of the R&S SITLine ETH device family make it easy to safeguard data communications: Security management and network management are separate from each other, allowing the seamless integration of the security solution into existing IT systems. There is no need to redesign the network infrastructure, which can be complicated and time-consuming. R&S SITLine ETH encryptors are ideal not only for point-to-point connections or star configurations. Their innovative group encryption feature can be used to efficiently safeguard transmissions in fully meshed switched networks. This allows companies to safely run storage systems at multiple, geographically distributed sites. In terms of security, it does not matter whether they use leased or proprietary lines for inter-site networking. The Rohde & Schwarz SIT network encryptors have been approved by the German Federal Office for Information Security (BSI) for handling data classified as RESTRICTED and NATO RESTRICTED. HIGH FLEXIBILITY AFFORDS TIME ADVANTAGE The R&S SITLine ETH40G is based on a modular platform architecture developed by Rohde & Schwarz SIT. Software defined encryption allows fast product updates. This makes it easy to integrate encryptors into existing networks, and combines the advantages of high-security customised solutions and less expensive standard solutions for securing network communications. Rohde & Schwarz SIT, a 100 % subsidiary of the family-run Rohde & Schwarz company group, develops and produces its products in Germany, ensuring long-term availability of products, service and support. Second, customers can rely on the high German data protection standards an important advantage, especially when using encryption equipment. Contact: Peter Rost Head of Product Management and Marketing at Rohde & Schwarz SIT July 2014 M2M Journal 5

6 Interview The role of Big Data & Data Security in M2M Interview with Michael Curry, Vice President WebSphere Foundation, IBM Software Group Today, only 1 % of physical systems are connected to the internet. M2M Journal: Gartner and other research firms have stated that much of the value from the Internet of Things will come from the data, making Big Data analysis a critical element to its success. Where do you see the biggest value for Big Data applied to M2M or IoT? Michael Curry: First of all, I agree wholeheartedly that much of the value will come from data. In fact, IBM CEO Ginni Rometty has been quoted as saying that data will be the natural resource of the 21 st century. Machine-to-Machine (M2M), or more broadly, the Internet of Things (IoT) offers so many new opportunities to capture data and to apply insights from that data directly to the point of impact. Today, many of the applications we see around M2M are focused on remotely detecting, diagnosing, and reacting to problems. Most solutions simply instrument equipment with some sensors and look for specific conditions. This gets more interesting when predictive analytics are applied, to predict parts failures prior to them happening in an effort to reduce downtime costs and service costs. In the future, we see that more statistical analytics, such as predictive and prescriptive algorithms, will be applied. Building on this thought, a significant opportunity Big Data poses in the M2M space is the ability to draw correlations and insight between M2M device data and other relevant enterprise or third party data available to an enterprise such as social, public, weather, competitive, customer, or transactional data. Doing so can enable higher value and higher impact solutions and services. It is this joining and correlation of M2M data with other large datasets that will allow for predictive and cognitive analytics, which holds significant opportunities for enterprises; far greater than the insights that can be obtained through analytics on M2M device data alone. 6 M2M Journal July 2014

7 Also the combination of physical and statistical models has the potential to provide a great deal of value. Today, only 1 % of physical systems are connected to the internet. These systems generate a vast amount of data that could be analyzed in order to optimise them. Take for example traffic lights. If traffic lights were today connected and controlled by intelligent predictive traffic management algorithms, we could be much better at traffic management, which would have huge financial implications. Further, consider the power of joining historical traffic light data with weather data to develop an algorithm that could predict changes in traffic patterns depending on the local weather forecasts. M2M Journal: Analysts have stated that by 2020, 40 % of data will be machine generated. How will we be able to analyze all of that data and what are the best suited technologies for this? Michael Curry: It is an interesting challenge, and historically the inability to deal with all that data has been one of the primary inhibitors to taking advantage of the M2M in the past. However, with the availability of nearly unlimited computing power in the Cloud, and with new technologies and techniques for analytics, this challenge is much more manageable today. The key is to focus on a few key steps to extract the most value out of the data. XX Search and identify all relevant sources to narrow down to the data that matters most XX Determine the right analytics engine for the job, and make sure the data is in the right place and form for those engines to leverage XX Refine the data and build trust around it. The ability to normalise data sets to establish trust is critical, since M2M data can often be incredibly messy. XX Integrate the data and discover new relationships around it. Accumulating context around device data can enhance understanding and improve trust. Techniques like data matching and advanced text processing can help here. XX Operationalise and act on the insights that come from analytics. This could be in the form of generating a new rule, business process, event, alert, or even a next best action or offer depending on the circumstance. Given the distributed nature of a lot of this data, and the fact that a great deal of processing power is needed, we believe that much of this data will be processed in cloud infrastructure. The cloud has the kind of resource elasticity and continuous availability that these data processing tasks require. In addition, the cloud offers the ability to more easily tap into a broader ecosystem of capabilities, such as specific analytic models and specific processing tools. This is one of the reasons that we announced IBM Internet of Things Cloud as a cloud-resident service. Within the cloud, time series data stores, such as those offered by IBM s Informix, can capture information streams in a way that allows it to be logically analyzed and visualised, and technologies like Hadoop can help process through the huge amounts of data. However, the bigger challenge is in trying to perform The goal is to make it as easy as possible to take advantage of the innovation,... analytics at scale against the data stream as it is coming in, to achieve near real-time reactivity. This requires a different kind of analytics engine that is capable of applying analytics to data in motion. The other aspect here is ensuring that the information is relevant to making decisions. A lot of the information that is generated will not be useful in analytic algorithms that have been deployed. In order to keep costs down, users will need to ensure they are filtering, sampling and aggregating data as soon as it is generated through streaming technologies such as Infosphere Streams. Since filtering, sampling and aggregation are likely to occur at the edge, closer to the devices (sometimes on the devices), technologies that allow the filtering, sampling and aggregation algorithms to be developed, tested, operationalised and deployed from central locations on the cloud; and then distributed to thousands of distributed edge gateways or devices, will be necessary. M2M Journal: All of this seems really complex, needing skills across embedded hardware, analytics, and the cloud. How can you expect the average organization to adopt the Internet of Things? Michael Curry: The trick will be to bring the capabilities to build, run, and manage M2M applications to the skill base that the average organization already has. If the average programmer can t design and build these systems end to end, or if the amount of programming required can t be reduced, then the massive growth that is projected will not be achieved. At IBM, we re addressing this by focusing on the cloud developer with our BlueMix platform. We ve created an environment where almost any programming skill can be used to easily assemble M2M applications that include analytics, mobile interactions, geospatial analysis, and a whole variety of capabilities. The goal is to make it as easy as possible to take advantage of the innovation, all on a scalable, secure foundation, so that developers can focus on what they want to create rather than setting up and managing infrastructure. We believe this allows the average organization and the average developer to begin extracting value from M2M right away. July 2014 M2M Journal 7

8 Interview M2M Journal: There is a lot of buzz in the industry about the economic impact of the Internet of Things. Where is this economic impact going to come from? Michael Curry: Well, some of it will come from the efficiencies and optimization I mentioned earlier. Businesses will be able to reduce waste, minimise downtime, and optimise physical systems in a way they have never been able to in the past. This will produce enormous financial benefit by itself. In addition, a big chunk of the opportunity will flow to the companies that make the new things that are connected everything from connected lightbulbs and fitness trackers, to on board diagnostics devices and the sensors and microprocessors that are embedded in all these devices. Many industries will be disrupted and others created in this new economy. However, even more exciting from my viewpoint are the new business models that will be enabled by M2M. Companies will be able to offer products as a service to their customers, automatically detecting and resolving problems, and replacing broken equipment without any intervention from the customer. Car companies will offer car rentals that don t require returns to a rental center. New companies will emerge that will focus on optimizing industries, bringing kits of sensors and analytics that can be retrofitted into existing infrastructure. Many industries will be disrupted and others created in this new economy. M2M Journal: Let us focus our discussion on security now. Isn t that a huge concern for M2M? Michael Curry: M2M greatly expands the scope of capabilities that must be secured. Organizations often have a hard enough time preventing attacks on traditional infrastructure. Add in potentially thousands of remote points of attack, many of which may not be feasible to physically protect, and now you have a much more complex security equation. A second serious challenge is privacy. Most consumers have no idea what information is collected and shared during normal online activities. Data privacy will become increasingly important as more devices in the physical world are connected, providing further data with real-life implications. We must address this challenge by enabling transparent mechanisms to allow users control over the data collected by the devices which they connect. This control should include where, with whom and under what circumstances that data is shared. M2M Journal: Is it possible to solve these challenges at all and how can they be solved? Michael Curry: Yes, it is possible to overcome these challenges, but it involves rethinking how security is implemented in M2M environments. First, we have to design M2M systems from end-to-end with security in mind. This means from device hardening and communication encryption all the way to data protection in the cloud and on end-user environments. Second we have to build systems assuming there will be security compromises and enable analytical capabilities that quickly detect the compromise and limit the potential damage. M2M Journal: How can we protect M2M from an end-to-end perspective and what do we need to protect? What are the weakest spots? Michael Curry: Today, no M2M security standard is being approached from this comprehensive end-to-end perspective. The M2M industry needs to define relevant security standards for the M2M ecosystem in order to move towards platforms that fulfill basic security requirements. Any such platform must include protection for privacy, data integrity and data availability. Taking an end-to-end view requires first ensuring physical device security. In most scenarios the connected devices can be the weakest link in the security chain. Even a simple sensor can turn into an attack point. Hackers can use these attack points to deduce private information (like listening in on a smart energy meter to deduce a home occupant is away), or even to infiltrate entire networks. By designing security into the devices from the start, users of the M2M systems can avoid costly and complex addition of security after the fact. Beyond securing the transmission of data, M2M technology needs to be sensitive to the fact that it is exposing data and control interfaces over a network. These interfaces need to be protected by bi-lateral authentication, and detailed authorization policies that constrain what can be done at each side of the connection. In addition, virus and attack signature recognition is required as is denial of service type attack defense. These defenses can be facilitated by monitoring for unusual network activity and providing adequate buffering and balancing between the network and back end systems. 8 M2M Journal July 2014

9 Energy & Utilities Examples Smart Energy M2M Journal: What is IBM doing to address these challenges? What do you think is required by the Ecosystem to address them? Michael Curry: M2M security is one of the areas that we are addressing. We have a comprehensive portfolio of IT security solutions and services today with more than 6,000 security experts and developers. Our solutions provide security for people, data, applications, endpoints and networks by leveraging intelligence and analytics to prevent, detect and respond to attacks. These capabilities, especially the use of powerful analytical engines, become more important in a world where proliferating M2M technologies rapidly increase the amount of security data that must be processed. Data security and privacy are also concerns for M2M environments. To address security risks, data should always be encrypted, preferably on the device prior to transport, and not decrypted until it reaches its destination. It is also a good idea to insert security policies that can inspect data to ensure that its structure and content is what should be expected. This discourages many potential threats, including injection and overflow attacks. To address data privacy risks, it is not sufficient to secure the data on the device or in transit. As more M2M data from sensitive usecases are stored, analyzed and shared across cloud environments, privacy in the entire ecosystem must be considered. Designers of these systems should establish privacy controls to govern M2M data and provide transparency about who is using it and how. Despite the best efforts of any security infrastructure, it is impossible to eliminate all possibilities for breaches. The key to successfully addressing a potential breach is quick identification through visibility and analytics in the environment. This requires the ability to understand device context, roles and activity patterns to recognise anomalous behavior indicative of a possible breach. Intelligent, real-time monitoring for these types of attacks is a critical security practice. Once a breach or attack is detected, rapid response is required. For M2M, we see it as critical to work together with relevant ecosystem like the early days of the Internet, companies may find that if they are slow to adopt, they will be disrupted. players. We are trying to establish standards and solutions to ensure M2M security and privacy from the device level through the ecosystem to end users. M2M Journal: Based on what we ve discussed, what do you see as the biggest inhibitor to Internet ot Things adoption? Michael Curry: The biggest inhibitors, as in all revolutions of this type, will be organizational inertia and resistance to change. There are a lot of reasons not to invest in M2M including the lack of standards, security concerns and the difficulty in retrofitting older infrastructure. But, like the early days of the Internet, companies may find that if they are slow to adopt, they will be disrupted. Contact: Michael Curry Vice President WebSphere Foundation IBM Software Group July 2014 M2M Journal 9

10 Article New security challenges emerge for Big Data in the Internet of Things Big Data is a critical part of the Internet of Things (IoT). The next few years will see a phenomenal growth in the devices, products, services, systems, people, processes, and industries connecting pervasively. They will generate, exchange and share data in the scale of billions and trillions of events and transactions per day, surpassing that which we have been able to imagine. However, Big Data is about more than just the volume of data: Machina Research defines it as the process through which heterogeneous data is collected, processed, stored and actuated in real-time for either of two purposes: I) to enhance and create intelligent information flows, or II) to perform a correlation analysis where seemingly tenuous relationships are identified for business benefits. 1 Big Data and the Internet of Things create a new paradigm in security challenges. With the growth in access points, the requirement for instantaneous data exchange across open and rapidly changing ecosystems and with new players exploring new opportunities, three immediate security challenges emerge: appropriate and timely security updates on devices, data encryption, and probably the most fundamental issue, an awareness and requirement to embed security when designing a solution. Encryption and security updates will need to address the challenges of scale and speed The scale and speed with which IoT applications and solutions are developed and implemented by existing and emerging players will put pressure on the security requirements, rules and technologies customary in IT and M2M designs. Markets will find an increasing challenge in ensuring that new service providers as well as more experienced players embed the scope of security requirements needed in the Internet of Things. This increased scope of requirements may be identified in two of the areas noted above: the appropriate and timely delivery of security updates on devices and the application of data encryption. Across an estate of billions of connected devices, managing the timely and appropriate delivery of security updates will require detailed management tools to ensure a comprehensive and updated library of security tools as well as a process through which devices can be remotely inspected to confirm that the security tools have been appropriately installed and equally important, remain fully updated and unedited. Data encryption remains a fundamental security element in the transfer of data either at the session level or transport layer, and potentially in storage. Building encryption algorithms and managing the keys are a costly value add element to solutions with lower margins, and will continue to be applied on a case-by-case basis. However, with every open data connection, opportunities for security threats to take effect exist. A new security option Encryption and embedded device security are two recognised security tools. One new and innovative security option may actually be found in the strengths of Big Data itself. This comprises transforming the analysis of data into an intelligence-driven security option. This new response does not offer a preventive security option (as would be activated mainly when systems have been breached, as in fraud detection) but includes data analytics as a means to detect anomalous behaviour that indicates real or potential malicious threats. Pervasiveness of devices and connections, and growth in applications and data transfers are some of the significant changes in the Internet of Things. With those changes come additional security challenges and threats. Product and service providers will need to apply traditional security approaches and look for new and innovative options in Big Data and the Internet of Things. Contact: Emil Berthelsen Principal Analyst Machina Research 1 Working definition of Big Data as presented by Machina Research. The aim is to move the discussion from looking at the parts of Big Data (scale, structure, etc.) and recognise that the significance of the data is derived from the analytics process which is core to Big Data. 10 M2M Journal July 2014

11 TO DELIVER ON THE PROMISE OF TOTAL M2M INTEGRATION SIMPLIFICATION Connecting assets to the Internet of Things, Your provider must bring you A portfolio of modules in all trending wireless technologies plus GNSS to address all your design requirements without compromises Compliance to Industry s most demanding quality standards to ensure your devices keep operating where others fail Services to provide, manage and protect your deployment s connectivity under mobile networks keeping you in control of costs and performance Industry s leading PaaS technologies to enable applications, connecting the data from your assets to any and all cloud services and enterprise systems they must integrate THE INTERNET OF THINGS AWAITS YOU. START CONNECTING YOUR DEVICES AND BRING YOUR IDEAS TO LIFE FASTER, WITH LESS COST AND RISK. CHOOSE TELIT. July 2014 M2M Journal 11

12 Article During CeBIT 2014, Empolis presented the topic of Smart Service by simulating an industrial facility in which LEGO robots loaded and transported goods. The facility s sensor technology collected up to one million data points per minute and transmitted them to a Big Data cloud. Based on the data collected, the system calculated prognoses for potential loss of production and also initiated maintenance procedures. This exhibit is now on permanent exhibition at the Empolis site in Bielefeld. Those visiting the exhibit can initiate interruptions and see first-hand how the system reacts. M2M and predictive analysis on the path to practical use Given the Internet s omnipresence and society s growing digitization and interconnectedness, the economy is on the brink of a real fourth industrial revolution (Industry 4.0). In the production industry, the real world is merging with its digital counterpart also known as the Internet of Things. Today, production equipment features sensors that constantly transmit signals and measured data regarding the equipment s status and performance, and even exchanges data with other equipment (M2M). The resulting quantities of data are huge and constitute a large proportion of what falls under the heading of Big Data. But how can these massive amounts of data be used efficiently to optimise production and service? Besides monitoring equipment functions, a sound analysis is required one that delivers real time status reports along with valid prognoses. Cutting-edge software solutions make this possible. Processing machine-generated data demands special processing steps parts of which differ greatly from analysis and processing of data from s, blogs, forums and the web. Complex event processing involves identifying events, collecting related data, unifying and evaluating the data by means of suitable pre-processing, and indexing it for later analysis. Based on this, it is then possible to automatically recognise connections and structures, facilitating direct analysis of the system s performance and an immediate response to the findings. With its Smart Service platform, Empolis has developed a solution that does precisely this. Smart Service utilises statistical processes and methods of artificial intelligence, as well as case-based reasoning (CBR), rules and decision trees to facilitate real time analysis of massive amounts of data, as well as all relevant documents created and utilised within the context of customer service. This makes it possible to filter relevant information and patterns, to forecast future events (predictive analysis), and to utilise knowledge from previous similar situations. Downtimes, disturbances and repairs are avoided, and reliable resource planning is made possible for maintenance staff and spare parts logistics. Smart Service becomes even more significant through the increasing importance of operator models. In models of this type, the manufacturer (e.g. of production equipment) simultaneously acts as the equipment operator; the initial investment is then compensated by payments received from customers generally as a share per produced unit. This model is currently particularly popular in the automotive industry, but also in other industries. It forces manufacturers to increase their investments in maintenance and service, to ensure the proper operation of their equipment, because as compared to before they carry the risk themselves if production stops. This is one of the reasons why manufacturers increasingly rely on Smart Service solutions beside the fact that the service industry benefits from a high profit margin. The right service information, in the right working context, at the right time, to the right service technician, on any device. Within the context of a very recent Empolis project, Smart Service was successfully implemented by an international supplier of industry robots. The solution uses various relevant sources of information such as a product configuration database, a product defect database, service information or replacement part information to analyze previous similar cases based on documented error codes or indications, which can then assist the technician in quickly and confidently diagnosing and fixing a current error. Contact: Martina Tomaschowski VP Marketing & Public Relations Empolis Information Management GmbH 12 M2M Journal July 2014

13 legislation Service Provider EU Member States EU Originator The slow track to ecall MSD Connected Vehicle deployment Data Action PSAP Public Safety Answering Point Already since 2002, the Eu has been working on a project to reduce road fatalities through the automated emergency ecall system. Initially foreseen as a voluntary approach, the Eu Parliament and Council agreed in spring 2014 that it should become mandatory for member states to have the necessary infrastructure in place at least 6 months before the type-approval requirements for in-vehicle ecall devices begin to apply, and at the latest by 1 st October Since the type approval requirements have not yet been finalised, this could mean that OEMs will have time till Spring 2018 to carry out ecall installations in vehicles. Considering that ecall is expected to save almost 2500 lives per year, such a delay seems tragic, but due to political frictions and technical difficulties, the initial time plan was obviously too ambitious. Having a definitive deadline now, which has been agreed by all Eu institutions, provides better planning security for all involved stakeholders. However, there are still some uncertainties: XX Neither the type approval requirements for in-vehicle devices, nor the deadline for their final roll-out, have yet been agreed upon. XX The timeline for implementation of the necessary infrastructure is not only a matter of the Public Service Answering Points (PSAPs), but also the mobile network infrastructure. The successful deployment of ecall requires Member States to put in place a framework for Public Safety Answering Points (PSAPs). To ensure that ecall messages connect with those emergency call centers optimised for ecall, network operators must be informed about routing information within a reasonable time period. XX ECall systems will be built on 3G. So far it is unclear what will happen once 3G networks discontinue. XX The regulations are expected to allow for standard in-vehicle devices to be enhanced with third- party added value services. This will potentially involve various stakeholders (e.g. public sector, insurances, service partners) who need to ensure interoperability, data security, accountability and quality of service for such options. Originally it was hoped that ecall could be a benchmark for the development of other smart services, such as traffic management or smart insurances, and that such standards could also be applied to areas such as mobile health, smart metering, smart home, smart city not just in Europe, but worldwide. Due to the current delay however, manufacturers are beginning to develop more and more proprietary car-communications solutions. Although regulatory requirements for such solutions are not in place yet, features such as reliable connectivity, data security, accountability and service quality need to be proven in order to satisfy demanding and security-conscious buyers. 7Layers, an international engineering services company, supports the development of qualification programs and tests for wireless connected devices as well as the relevant M2M and telematics applications. Car-connectivity service systems must transport the necessary information reliably and securely via mobile networks to thirdparty answering points, which then have to react as drivers expect. At the same time it must be provable as to which applications have been used, and by whom and to what extent, in order to service and invoice drivers correctly, explains Angela Spielberg, who leads a telematics project at 7Layers. To be future-assured, manufacturers should be setting up proprietary qualification programs now that can be extended seamlessly to cater for ecall requirements at a later stage. 7Layers Emergency Action Contact: Angela Spielberg Consultant 7Layers AG July 2014 M2M Journal 13

14 Technology is reshaping vehicle insurance Usage-based insurance (UBI) represents a major shift in the way car insurance risks are assessed. Until now, these risks were assessed based on static, statistical data like age, gender, car model and so on. The application of telematics technology makes it possible for insurers to make objective assessments of risk based on real-time, dynamic data like mileage, keeping to speed limits, engine RPM and fuel level, as well as driver behavior. Insurers benefit from the ability to detect and retain the majority of the lowestrisk drivers. In return, drivers can enjoy significant discounts on their premiums. When automotive SatNav systems exploded in popularity, UBI apps for smartphones began their rise. While smartphones have the requisite functionality, including sensors to detect acceleration, braking and cornering, they suffer from usability and reliability issues. As a result, insurers tend to prefer in-vehicle, on-board diagnostics (OBD) dongles over smartphone apps. Smartphone Issues For insurers, free UBI trials allow smartphone services to be employed as a teaser that: (a) introduces the concept; (b) allows drivers to see their driving behavior at the end of the trial; and (c) informs them about the potential reduction in their premium if they drive carefully. Nevertheless, they remain problematic. A smartphone may not always be on when the car is driven. Or, the app may not be compatible and certified for use with the phone s operating system or platform. In addition, in almost all international jurisdictions, courts could find insurers liable for negligence and damages when there is a better solution available particularly in the event of life-saving applications. Dedicated In-Vehicle Devices By contrast, in-vehicle OBD-II data loggers are unobtrusive, provide more accurate driving data, are inexpensive and easy to install. Used in tandem with a smartphone, a hybrid solution can combine the data quality of the installed device with customerfriendly features like on-screen displays. More importantly, UBI solutions based on OBD-II in-vehicle devices address the concerns of the insurance industry and regulators. For example: X Fairness: Regardless of vehicle type, demographics or socioeconomic status, all insured drivers are measured the same way. X Reliability: A dedicated hardware solution ensures that the connectivity between the vehicle and provider is controlled and timely. X Security: Dedicated hardware significantly reduces the potential for fraud. X Undistracted driving: Data loggers do not require user interaction. Storing and Analyzing the Data Of course, UBI can generate massive amounts of data. A single vehicle can generate nearly 200K data points in a year. Even with smart filtering of raw data and/or sorting it to reduce carrier costs, there s no doubt a lot of UBI Big Data will be generated in the coming years. As a result, the number of cloud-based solutions which enable visual analytics are on the rise. Applied to the insurance space, they can present driver data in a graphical interface. Conclusion Though smartphone popularity continues to rise, the use of UBI smartphone apps will remain problematic. The regulatory climate is unfavorable and the legal risks are significant. Dedicated solutions based on dedicated hardware provide an ideal alternative with robust results that address the requirements of both the industry and regulators. Contact: Cyril Zeller VP Global Telematics Segment at Telit Wireless Solutions 14 M2M Journal July 2014

15 Article Strong growth opportunities with Industry 4.0 Industry 4.0 is a real productivity driver. This is confirmed by a recent study by the Fraunhofer Institute for Industrial Engineering and Organisation (IAO), which was commissioned by BITKOM. We have examined six industries that were affected, both strongly and very early on, by the convergence of production and the Internet in the study: machinery and equipment, electrical equipment, the chemical industry, motor vehicles and motor vehicle parts, information and communication technology (ICT), as well as agriculture. An additional growth of 2.2 percent per year in the first three sectors is possible in each case. Mechanical engineering is both the user and the supplier of new technologies. The huge accumulation of operational, condition and environmental data can be used on order to produce more efficiently. In addition, products can be equipped with Industry 4.0 technologies to develop, for example, new service models. Gross value added by selected industries in Germany (billion EUR) The electrical equipment branch of industry mainly includes the manufacture of electrical and optical devices. Complex Industry 4.0 production processes can be monitored in near real-time. This creates greater transparency and reduces storage costs. In addition, it may be easier to set up and adjust globally distributed production processes according to the slogan of "plug and produce". Opportunities for the automotive industry fall slightly lower. Here, an additional potential of 1.5 percent per year is expected. The automotive industry is considered primarily as a user of Industry 4.0, particularly in the areas of production and logistics. However, new technologies can also be installed in vehicles. This increases traffic safety and facilitates the management of spare parts and maintenance. For the ICT sector, as a provider of Industry 4.0 technologies, a potential of 1.2 percent per year is envisaged. Opportunities arise mainly from new products and services for a simple, flexible, near real-time production planning and control. Additional growth opportunities in agriculture are also around 1.2 percent. There may be particular benefit from the networking of agricultural machinery with each other and the use of mobile devices. According to Professor Wilhelm Bauer of the Fraunhofer IAO, Industry 4.0 has what it takes to revolutionise industrial added value in the same way that the Internet has for knowledge work. However, so far one could only classify a small part of the expected potential. In Germany, much will depend on whether and how it will be possible to introduce new business models into traditional industries. In order to exploit the full potential of Industry 4.0, the ecosystem of man, technology and organization must be viewed holistically. Prerequisites for the successful use of Industry 4.0 are for industrial standards on the technology and application side as well as rules for fast and interface-free communication, data protection and data security. Contact: Wolfgang Dorst BITKOM, Head of Industry 4.0 July 2014 M2M Journal 15

16 Article Wearables Smart protocols for smart technology Wearable electronics not only have to be small, they must also be extremely energy efficient in order to guarantee a high degree of mobility. This also applies to the wireless components. W hether sports shoes which transmit running speed, calorie consumption and workout duration to the ipod or smart watches which not only show the time but also messages more than 90 % of wearable electronics use wireless technology to connect with smartphones, PCs and other devices. When choosing the wireless protocol, developers should pay attention to the range, speed and data transfer rate and, above all, to the power consumption during data transmission. BLuETOOTH LOW ENERGY (BLE) Such energy-efficient wireless operation is facilitated by Bluetooth Version 4.0. Due to a wider modulation, its low-energy mode guarantees a higher range than the conventional Bluetooth with significantly lower power consumption. Often, operation in whisper mode is sufficient for the applications. Thus, simple 3V button cells are sufficient for their power supply. The high-speed data transfer further reduces the energy consumption. If no transmissions are taking place, the chips enter rest or sleep mode, then waking at regular intervals for signal bursts. The BLE transceivers are available with very small dimensions, e.g. the multiprotocol SoC nrf51822 from Nordic in 3.5 x 3.8 mm packages. It is built around a 32-bit ARM Cortex M0 CPu with 256kB flash + 16kB RAM. Thanks to 31 integrated GPIOs, which are individually assigned to different pins, as well as PWM, ADC and other features, an additional microcontroller is superfluous. 16 M2M Journal July 2014 A single energy source is sufficient. The free Bluetooth 4.1 Low Energy protocol for operation in the role of peripheral communication, as is usual with wearables, is called the S110 at Nordic and can connect to multiple masters at the same time.

17 Article Besides the technical parameters, market acceptance plays a key role when choosing a wireless technology. Bluetooth is clearly ahead of the pack here: Mobile phones, smartphones and tablets have long been Bluetooth Smart Ready, i.e. they are equipped with a dual transceiver supporting both conventional Bluetooth and BLE. However, since February 2014, products fitted with Bluetooth must have their own Declaration of Compliance. This must be paid regardless of the actual qualification process (QDID). In order to make wearables as cost-effective as possible and to realise them without specific HF equipment and expertise, certified wireless modules with integrated protocols are already available at Rutronik. Bluetooth 4.0 dual mode modules with integrated expansion by ZigBee Pro or ZigBee IP and wi-fi as well as AccessPoint and WiFi-Direct are also available here. ANT and ANT+ An alternative to Bluetooth is offered by ANT and ANT+. As with BLE, the protocol operates in the licence-free 2.4 GHz frequency band and achieves an even lower energy level than BLE. At 1 MHz, the frequency channel is only half as wide as with BLE. Accordingly, the data modulation requires less energy. In addition, a frequency channel is divided into many communication channels partitioned by time, so that a total of up to 64,000 wireless subscribers can be integrated into one ANT network. As the sensors remain in sleep mode for the majority of the time, the overall power consumption is very low in principle. Applications with ANT wireless technology are frequently used in healthcare, telemedicine and in the sport and fitness sectors, this is what makes the protocol of interest for wearables. In contrast to Bluetooth, ANT is particularly characterised by its almost unlimited network options: ANT networks can adopt different topologies, such as peer-topeer networks or meshed networks. Dynastream has launched the N5 range of ANT modules. They are based on the Nordic nrf51422 and have very small dimensions. This chip is identical in design to the nrf51822 already mentioned, but in addition it can also use the ANT protocol. ANT licence fees have already been paid with the acquisition of the chip or module. The ANT infrastructure is progressing in the computer world at a similar level to BLE. The basic ANT protocol can be expanded by the standardised utilisation profile ANT+. This enables appropriately equipped wearables to network with other ANT+ devices in their vicinity and exchange sensor data with each other. ANT+ is already in use in a number of devices. The close connection with the smartphone manufacturers could lead to further distribution of the technology. Thus, ANT is a genuine alternative to Bluetooth technology, particularly for small and medium-sized providers. Using two protocols It is not necessary to decide between BLE and ANT: The nrf51422 or the corresponding N5 modules will operate with all of Nordic s stack variants. The S110 stack is for BLE peripheral operation, the S120 designates the BLE master function, the S130 permits all four BLE modes. S210 designates the pure ANT stack. In order to connect both technologies, only the S310 stack needs to be flashed in the transceiver. It includes both the ANT and BLE peripheral modes. In addition, the Gazell opensource protocol can be used. Near Field Communication NFC is not a competitor to Bluetooth or ANT due to the extremely short range of just a few centimetres and a very low data transmission rate. But it offers interesting options for wearable applications in relation to energy consumption. The active NFC chips do not just communicate with the passive NFC tags over a short distance, they also transmit energy. Some NFC tags can even use this energy to activate their microcontroller and execute a few smaller applications without requiring their own energy source. Its automated registration and coupling procedures do away with the need to enter a password, PIN code or manual network selection. Wearable applications are an ideal means of replacing keys, ID cards and tickets. To realise such smart applications, it is necessary that the data memory can be accessed both by NFC and the application controller. Which wireless technology developers finally choose depends on the individual purposes of the wearable applications. What range is required? What volume of data is normally transmitted? How much energy does this transmission consume? How secure must this data transfer be? And how much space is available? Rutronik with its extensive portfolio is able to offer valuable support here. Under RUTRONIK EMBEDDED, customers receive all the necessary components for the development of integrated computer systems like wearable electronics. These include wireless solutions, intelligent sensors, storage and displays, energy-storage solutions and special solutions for gesture recognition. Teams of specialists for each product area work closely together and help customers to implement all their wireless technology requirements cost-effectively and reliably. Contact: Lan Hong Product Sales Manager Wireless Rutronik Elektronische Bauelemente GmbH July 2014 M2M Journal 17

18 Greenwave How to design a low-cost secure 2G/3G/4G router or gateway Simple design of a M2M / IoT device based on a few components. A handful of components is sufficient for the easy design of M2M devices. Only four main building blocks will do the job of connecting a device wirelessly to the Internet: Cellular Module, embedded antenna, MPu and power supply. CELLuLAR / GNSS MODuLE The choice of the cellular module is the starting point. For our example we base the application on HL8548. The HL8548 is the 3G module of the HL series of Sierra Wireless. The HL7 will support the LTE standard and HL6 modules will provide GPRS/EDGE functionality. All modules cover the option of embedded GNSS (GPS/Glonass) and have the same small footprint of 22 mm x 23 mm and run from 2.8 Volts to 4.5 Volts. Based on the wide supply voltage range, mobile devices on battery will offer a longer standby time. Last but not least you can solder the modules on a PCB or use a snap-in connector. (green). By spending an antenna switch to a SMA connector an external cellular antenna could be supported as well. MPu For MPu a powerful ATMEL SAMA5D3 was selected. This MPu is based on ARM Cortex-A5 with FPu and up to 166MHz 32-bit DDR memory interface delivering up to 1328MB/s of bandwidth. It comes with a free Linux distribution with Qt SDK, a free Android port as well as other popular GuIs. POWER SuPPLY For the supply voltage the MIC28304 was chosen. It operates over an input supply range of 4.5V to 70V and is able to reach up to 3A. Based on its high voltage range, the regulator will be able to support the onboard voltage of 48 Volt in hybrid vehicles as well. If the GNSS input of the cellular module will be used, then the result will be a tracking device on Linux or Android. The schematic diagram of the MPu shows several proposals for common interfaces like RS-485, CAN and Ethernet. Such interfaces are helpful to connect ticket machines, vending machines or any machine of choice. The diagram mentions wireless interfaces like Wi-Fi or ISM radio (e.g. zigbee, 6LoWPAN, Wireless Hart). If you are interested in a customised selection of parts for a specific application then just drop an to the author and ask for a proposal. Contact: Harald Naumann Author, Blogger, FAE for Wireless applications at Future Electronics Blog: EMBEDDED CELLuLAR ANTENNA The next selection has to be made for an embedded cellular antenna. In this case we propose a ceramic antenna, which supports all major GSM, HSPA, LTE and Wi-Fi bands. It shows an antenna efficiency of 60 to 75% at the cellular bands. With its small size of 34 x 8.5 x 3.2 mm 3 it fits easily in standard enclosures. The blue line in the graph shows the performance of the antenna on a PCB of 50 mm x 120 mm and with a length of 100 mm (red) and 80 mm ATMEL Sierra Wireless 18 M2M Journal July 2014

19 Article New Big Data methods for M2M communications Fraunhofer IAIS leads EU FERARI project The technologies of the future will rely on the autonomous interaction between machine and machine (M2M). However, in the control of such systems, industry is facing major challenges. In the EU project, Flexible Event Processing for Big Data Architectures FERARI, a team from the Fraunhofer IAIS is working with partners from industry and academia on open source solutions to the massive streams of distributed systems with new Big Data Processing to analyse processing in real-time and efficiently. The development of Big Data technologies has so far primarily been aimed at data which was not directly linked to temporal sequences. Many technologies are at their limits when it comes to analysing large amounts of volatile data, as is the case in distributed systems. In order to analyse system-wide, fundamentally new structural designs are required. In the FERARI project, six partners from industry and academia are to develop, under the leadership of the Fraunhofer Institute for Intelligent Analysis and Information Systems (IAIS), an open source package that will meet the demands of such applications. In the development of our systems, we make sure that they can also be used by users with little prior knowledge, explains Dr Michael Mock, project leader at Fraunhofer IAIS. Because they are an open source development, they are all freely available and customizable. We want to promote the proliferation of Big Data technologies in the economy. In order for the software packages to be able to solve complex analytical tasks in real time, Complex Event Processing methods and sophisticated machine learning algorithms are a necessary and integral part of their architecture. In order to realise real-time analysis of such massive data streams, we also have the machine level that is the level of data processing sensors on the machine taken as a central part of the system architecture, says Mock. The sensors independently decide when and what data they provide to the central system. Thus, they reduce their contribution to the overall data stream on the essentials. The solutions will be tested and evaluated in real-world Big Data applications in the telecommunications industry and in cloud systems. Apart from the Fraunhofer IAIS, the Israel Institute of Technology (TECHNICON), the Technical university of Crete, Croatian Telecom, the Croatian company Poslovna Inteligencija and IBM Israel are participating in the project. FERARI is part of the Eu s Seventh Research Framework Programme. The projects duration is 36 months. Contact: PD Dr. Michael Mock Fraunhofer Institute for Intelligent Analysis and Information Systems IAIS Further information can be found at the Project web site March 2014 M2M Journal 19

20 News M2M satellite communication takes the edge out of risky mining operations The mining industry relies heavily on satellite broadband communications for all of its daily operating processes. However, here are three ways that satellite M2M is used in day-to-day operations around the world to reduce operating costs and increase the safety of mining companies. At the request of their mining customers, Bintech Systems Australia, a manufacturer of fuel level sensors, and Skymira, a USbased developer of M2M solutions, developed an automated fuel level monitoring solution. Since the lack of cellular communication in the areas around the fuel tanks is a major issue, Bintech opted to provide tank-level monitoring that relied on M2M satellite communication. With Bintech s tank monitoring solution, operation managers now receive an or text message notification for events such as when the fuel in a tank has crossed the low level threshold. Alarms are also triggered during tank filling if there is a danger of the ullage being exceeded. The system even provides an early warning of potential leaks if unaccountable reductions in contents are recorded. Not only has the risk of personal injury been eliminated, there is increased efficiency and the reduction in inaccurate readings and miscalculations has led to a better fuel management process. Diesel tanks in remote mining site equipped with satellite-based fuel level monitoring solution. Tank monitoring Eliminating the dangers of low fuel levels Fuel is a vital energy resource for the mining industry. In Western Australia, the iron ore industry alone consumes in excess of 3 million litres of diesel every day to run transport vehicles and heavy machinery. At many operating sites, it is the responsibility of an inventory manager to manually check the quantity of fuel in tanks and to schedule delivery with local providers. However, as mining sites have streamlined operations, manual tank level monitoring sometimes becomes sporadic, leading to dangerously low fuel levels on site. Environmental monitoring Reducing the perils of disruptive weather Severe weather conditions can significantly impact daily mining operations. Many companies have installed weather stations that collect data in order to allow them to proactively manage pending risks. Mining companies are often met with communications challenges where cellular communications are unreliable or the costs of data retrieval using satellite broadband services are too high. These conditions lead to intermittent or inadequate weather data collection which can impact operations if upcoming weather is disruptive to operations. Satellite-based monitoring solution allows consistent visibility of how much fuel is in field tanks regardless of location and cell coverage. 20 M2M Journal July 2014

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