IoT Week 2015 Lisbon June, 16 th - 18 th 2015
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1 IoT Week 2015 Lisbon June, 16 th - 18 th 2015 Challenges and opportunities for European IoT SMEs in the advent of Large Scale Deployment Era! Jim Morrish, Founder & Chief Research Officer 1
2 About us From M2M to IoT ImplicaIons of the IoT for enterprise OpportuniIes and challenges 2
3 About is the world s leading provider of market intelligence and strategic insight on the rapidly emerging Machine- to- Machine (M2M), Internet of Things and Big Data opportuniies. We provide market intelligence and strategic insight to help our clients maximise opportuniies from these rapidly emerging markets. If your company is a mobile network operator, device vendor, infrastructure vendor, service provider or potenial end user in the M2M, IoT, or Big Data space, we can help. We work in two ways: o o Our Advisory Service consists of a set of Research Streams covering all aspects of M2M and IoT. Subscrip@ons to these mul@- client services comprise Reports, Research Notes, Forecasts, Strategy Briefings and Analyst Enquiry. Our Custom Research and ConsulIng team is available to meet your specific research requirements. This might include business case analysis, go- to- market strategies, sales support or marke@ng/white papers. The company was founded in 2011 by MaW HaWon and Jim Morrish, two experienced industry analysts and the team has grown substanially since then. 3
4 Some of our clients 4
5 About us From M2M to IoT ImplicaIons of the IoT for enterprise OpportuniIes and challenges 5
6 A diverse set of moivaions drive M2M RegulaIon Features Smart Meters ecall PS Vita Connected Car Big Belly Solar CLEAN SF Park Sealed Air Zipcar Efficiency gains New business models 6
7 M2M is hugely diverse and requires a granular forecast methodology
8 PotenIal for Internet of Things applicaions is almost without bound Sources of InformaIon = M2M applicaions M2M devices Corporate IT systems Published data feeds Crowdsourcing End users Social Media Other IoT applicaions FreeDigitalPhotos.net: EA, renjith krishnan, Kea8korn, franky242 8
9 TradiIonal M2M markets are changing to support an emerging IoT world TradiIonal M2M markets SoluIons were designed to monitor hundreds and thousands of remote assets Emerging IoT world SoluIons will be required to monitor, manage and actuate millions of remote assets and devices SoluIons were structured as verical stovepipes : typically standalone developments SoluIons will be designed with shared funcionaliies in mind to enable muliple uses ApplicaIon development required developers to consider the enire funcionality stack Developers will focus on applicaions, requiring access to more off the shelf enabling funcionality 9
10 Key differences between M2M and IoT The difference between M2M and IoT Source: 2014 M2M IoT Connected devices and associated Fixed parameters Rigid architecture Speed designed in where necessary in the context of and niches Data is meaningful in context Structured data Predictable growth (in and data generated) Data ownership oxen clear Complex and data analysis Heterogeneity and flexibility of components Distributed and federated processing, storage and querying Speed needs to be supported as and when requirements emerge Data disassociated from any source richness, shared context and ontologies Semi- structured and unstructured data Unpredictable growth driven by network effects Data ownership oxen very unclear 10
11 There are several stepping stones between today and the IoT Evolu5on to the Internet of Things Source: 2013 Internet of Things Intranets of Things M2M as standalone devices and/or M2M as devices and/or within a func@onal solu@on Subnets of Things M2M Solu@ons as devices and/or proposi@ons deployed within a specific industry, enterprise or other data community Applica@ons and solu@ons that can seamlessly share data 11
12 Puhng SoTs in a coninuum SoTs in a coninuum Source: 2014 Open Everything can connect to everything IoT Cross enterprise Cross manufacturer Within enterprise Mul@ple devices from a common manufacturer Scope Subnets of Things Point solu@ons Standalone connected devices M2M Fixed parameters Agility Context and ontologies Diversity of assets Seman@c richness 12
13 More of a network of Subnets of Things than an Internet of Things? Texture of the Internet of Things Source: 2014 Enterprise SoT Smart CiIes SoT Health SoT ConstrucIon industry SoT OEM (Consumer) SoT Power management SoT OEM (Enterprise) SoT Intelligent buildings SoT 13
14 About us From M2M to IoT ImplicaIons of the IoT for enterprise OpportuniIes and challenges 14
15 The IoT will require enterprises to adapt to a new business environment Scalability Machines Applica@ons Data Enterprise IoT Agility Flexibility Dynamic objec@ves Changing requirements Developing opportuni@es Open & Closed Systems Partnerships and Collabora@ons Business models Uncertainty Unpredictability Strategic rather than opera@onal decision 15
16 The IoT opens new opportuniies for companies and changes business models PredicIve maintenance Ongoing customer relaions Business models Data sharing Connected devices provide performance data enabling advanced Connected devices provide manufacturers with ongoing with end users through their products Connected devices enable usage monitoring of machines and pay as you use models Range of different connected devices will provide a steady stream of data Reducing poten@al down@me and lost produc@on Brand strengthening and long tail sales Compe@@ve pricing models for end customers Opportunity to design new products and services e.g. engine maintenance, manufacturing, etc. e.g. connected car, white goods, etc. e.g. car sharing schemes Zipcar, City Car Club, etc. e.g. smart cifes 16
17 About us From M2M to IoT ImplicaIons of the IoT for enterprise OpportuniIes and challenges 17
18 Clearly there are significant opportuniies associated with the IoT for SMEs Greater efficiency means bewer goods and services at lower prices And new products and services: o Usage based (automo@ve) insurance o Smart metering suppor@ng new energy tariffs o and Virtual Power Plants o Servi@za@on The concept of Subnets of Things allows for the idenificaion of right sized markets Business to business opportuniies with incumbency 18
19 OpportuniIes and challenges with large scale deployments Why would large scale deployments bring value o Real devices, real data o Deals with one aspect of uncertainty (at least) o Field tes@ng - improve products and learn lessons o Community effects Challenge to overcome is engaging with the behemoth o Specific services on top of large scale deployments o Sandbox environment for experimenta@on o Engaging with other SMEs o Subnets of Things 19
20 s Thought Leaders Godfrey Chua Principal Analyst Focus areas: Americas, carrier strategies, industrial, connected home and workplace Jeremy Green Principal Analyst Focus areas: M2M and IoT technology ecosystem, key IoT players Jim Morrish Founder & Chief Research Officer Focus areas: Enterprise IoT, M2M soxware, M2M & IoT pladorms Emma Buckland Principal Analyst Focus areas: M2M forecasts, consumer electronics, connected living, Andy Castonguay Principal Analyst Focus areas: Americas, M2M/IoT devices & modules, wearables, healthcare MaW HaWon Founder & Chief ExecuIve Officer Focus areas: Operator M2M and IoT strategies, channels, M2M technologies, Emil Berthelsen Principal Analyst Focus areas: Enterprise IoT, big data, mobile enterprise pladorms, procurement, SLAs, QoS Alex Chau Research Director, Head of Asia Focus areas: smart privacy and security, the Asia- Pacific region 20
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