What s the promise of the Internet of Things?
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1 What s the promise of the Internet of Things? Tim Ensor 6 October 2015
2 What is the Internet of Things? 6 October
3 What is the Internet of Things? >> I m fine >> Getting quite full now >> I need emptying please! >> Help!! 6 October
4 Over the last few year s the hype around the Internet of Things has been growing Ericsson, October
5 Expectation Over the last few year s the hype around the Internet of Things has been growing IoT Hype Cycle 5-10 years Innovation Trigger Peak of Inflated Expectations Trough of Disillusionment Slope of Enlightenment Plateau of Productivity Time Gartner, October
6 The IoT offers the ability to provide new customer services and experiences with a future market predicted to be worth $6-14Tn IoT Market Size Data Growth $ (by 2025) # devices (by 2020) ( ) $6.1T $7.1T $14.4T 26B 32B 50B Total Data 4.4ZB to 44ZB 10x IoT Data 0.1ZB to 4.4ZB >40x ZB = zettabyte = bytes = 1000 billion gigabytes 6 October
7 but there are those who raise concerns about its viability Is it private? Is it secure? How can I manage this complex eco system? Who owns the data? How do I deal with all this data? What is the business model for this? Where will the IoT end up, and how can we benefit from it? 6 October
8 The Internet, conceived of in 1980s, can give us some indicators of where IoT may be in ~20 years (or less) 1 Standardisation 2 Unbundling 3 Service Evolution Disconnected research networks Protocols start to standarize (NCP, X25 etc) 1983: ARPANET uses TCP/IP in US Emergence of ISPs Internet fully commercialised in US in 1995 ecommerce a significant focus Web 2.0 allows customisation Social networks and content sharing On-demand media streaming 6 October
9 Looking ahead, the future development of IoT may follow a similar path 1 Standardisation? 2 Unbundling? 3 Service Evolution? IoT Today Fragmented deployments Closed systems with concerns over data Single service offerings IoT Future Common protocol? Unbundled data exchange? IoT OTT? 6 October
10 1 Today we still see a large number of protocols being used for internet access even though the core transport protocols have standardised 6 October
11 1 similarly, we see a large number of protocols being used for IoT access, this is likely to remain the same Focus on the best approach for each use case; don t wait for standards 6 October
12 2 As with the move to Web 2.0, the ability to create new services based on a mash-up of other services needs access across multiple data sources [picture of permissions screen from iphone] 6 October
13 2 As with the move to Web 2.0, the ability to create new services based on a mash-up of other services needs access across multiple data sources 6 October
14 2 As with the move to Web 2.0, the ability to create new services based on a mash-up of other services needs access across multiple data sources 6 October
15 2 As with the emergence of ISPs, do we need an entity to mediate this data exchange? 6 October
16 2 As with the emergence of ISPs, do we need an entity to mediate this data exchange? 6 October
17 3 The development of OTT services have come to dominate the underlying assets that enable the Internet Monthly Global Internet Data (PB) 111, % 52,100 67,000 86,500 Online gaming File sharing 33,500 41,300 Web, , and data Internet video Source: Cisco VNI October
18 3 This is unlikely for IoT in the near future, but bundled OTT services are likely to offer additional revenue for IoT players >> Can I get some more washing powder? >> Mum s not turned the light on for a while >> I ll message John to let him know >> Looks like the boiler needs a service >> Do you want me to arrange that for you? 6 October
19 So, what might be the impact on business? Newspaper Ad Revenue (2013 USD) $80bn $65.8bn $60bn $40bn $20bn Print advertising $23.6bn $17.3bn $0bn Source: Newspaper Association of America, Carpe Diem Blog 6 October
20 So, what might be the impact on business? Newspaper Ad Revenue (2013 USD) $80bn $60bn $40bn $20bn Print advertising Print, digital and other $0bn Source: Newspaper Association of America, Carpe Diem Blog 6 October $23.6bn $17.3bn
21 In some sectors, things may be similarly dramatic for IoT 6 October
22 The key question to ask is what are my customers actually buying? 6 October
23 IoT is both an opportunity and threat for business now and will determine corporate outcomes over the next 5-10 years # Products Revenue Valuation Revenue Multiple 2 ~$0.3Bn $3.2Bn (Jan 2014) With IoT 10x 300 page catalogue $3.4Bn $3.3Bn (July 2015) Without IoT <1x 6 October
24 What can you do if you re a mature player new to IoT? 6 October
25 What can you do if you re a mature player new to IoT? 6 October
26 The Promise of Internet of Things is being realised now Based on the history of how the internet emerged, we can see that companies most likely to succeed in IoT will be those that: Don t wait for more standards to emerge in access technology, but pick the right technology for their usecase Think about emergent user services beyond what their own business might provide today Consider how to offer bundled services as well as positioning themselves to influence a future ecosystem using their infrastructure Achieving this needs a focus on both User Service and Technology Enablers 6 October
27 Questions >> Thank you. >> Any questions? Tim Ensor Head of Connected Devices 6 October
28 Cambridge UK 6 October 2015 Boston USA Singapore Cambridge Consultants is part of the Altran group, a global leader in Innovation. The contents of this presentation are commercially confidential and the proprietary information of Cambridge Consultants 2015 Cambridge Consultants Ltd. All rights reserved. Registered No England
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