Big Advantages Of Small Adadvantage
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1 Machina Research Beynd early adptin - what is the rad ahead fr the Internet f Things? Jim Mrrish, Funder and Chief Research Officer March 2015
2 Abut Machina Research Machina Research is the wrld s leading prvider f market intelligence and strategic insight n the rapidly emerging Machine-t-Machine (M2M), Internet f Things and Big Data pprtunities. We prvide market intelligence and strategic insight t help ur clients maximise pprtunities frm these rapidly emerging markets. If yur cmpany is a mbile netwrk peratr, device vendr, infrastructure vendr, service prvider r ptential end user in the M2M, IT, r Big Data space, we can help. We wrk in tw ways: Our Advisry Service cnsists f a set f Research Streams cvering all aspects f M2M and IT. Subscriptins t these multiclient services cmprise Reprts, Research Ntes, Frecasts, Strategy Briefings and Analyst Enquiry. Our Custm Research and Cnsulting team is available t meet yur specific research requirements. This might include business case analysis, g-t-market strategies, sales supprt r marketing/white papers. The cmpany was funded in 2011 by Matt Hattn and Jim Mrrish, tw experienced industry analysts and the team has grwn substantially since then. Machina Research 2
3 Sme f ur clients Machina Research 3
4 A diverse set f mtivatins Regulatin Features Smart Meters ecall PS Vita Cnnected Car Big Belly Slar CLEAN SF Park Sealed Air Zipcar Efficiency gains New business mdels Machina Research 4
5 drives a need fr a granular analysis f M2M Machina Research
6 Ptential fr Internet f Things applicatin is almst withut bund Surces f Infrmatin = M2M applicatins M2M devices Crprate IT systems Published data feeds Crwdsurcing End users Scial Media Other IT applicatins Machina Research 6 FreeDigitalPhts.net: EA, renjith krishnan, Keattikrn, franky242
7 Key differences between M2M and IT The difference between M2M and IT Surce: Machina Research 2014 M2M IT Cnnected devices and assciated applicatins Fixed slutin parameters Rigid slutin architecture Speed designed in where necessary Applicatins in the cntext f verticals and niches Data is meaningful in cntext Cmplex applicatins and data analysis Hetergeneity and flexibility f slutin cmpnents Distributed and federated prcessing, strage and querying Speed needs t be supprted as and when requirements emerge Data disassciated frm any surce Semantic richness, shared cntext and ntlgies Structured data Semi-structured and unstructured data Predictable grwth (in cnnectins and data generated) Unpredictable grwth driven by netwrk effects Data wnership ften clear Data wnership ften very unclear Machina Research 7
8 Frm clsed and siled slutins t pen, agile and highly flexible architectures Traditinal IT M2M Operatinal Technlgy Internet f Things Well-defined purpse and architecture Extensibility required new end-tend prgramming capabilities Singular applicatin purpses with designed and defined data structures Data used fr histrical analysis descriptive analytics (reprting) Open architecture scalability, agility and flexibility, leveraging clud services Understanding IT: data is ultimately separated frm the architecture Multiple applicatin designs and services created frm shared data Analytics used fr descriptive, predictive and prescriptive purpses Machina Research 8
9 The IT pens new pprtunities fr cmpanies and changes business mdels Predictive maintenance Onging custmer relatins Business mdels Data sharing Cnnected devices prvide real-time perfrmance data enabling advanced predictive analytics Cnnected devices prvide manufacturers with nging relatins with end users thrugh their prducts Cnnected devices enable usage mnitring f machines and pay as yu use mdels Range f different cnnected devices will prvide a steady stream f data Reducing ptential dwntime and lst prductin Brand strengthening and lng tail sales Cmpetitive pricing mdels fr end custmers Opprtunity t design new prducts and services e.g. engine maintenance, manufacturing, etc. e.g. cnnected car, white gds, etc. e.g. car sharing schemes Zipcar, City Car Club, etc. e.g. smart cities Machina Research 9
10 The IT will require enterprises t adapt t a new business envirnment Enterprise IT Scalability Agility Flexibility Machines Applicatins Data Dynamic bjectives Changing requirements Develping pprtunities Open & Clsed Systems Partnerships and Cllabratins Business mdels Uncertainty Unpredictability Strategic rather than peratinal decisin Machina Research 10
11 Hw t define IT revenues? Applicatins related t an M2M device Applicatins using data exhaust frm an M2M device Applicatins develpment cnsistent with emerging IT standards Platfrms that supprt IT applicatins Prject wrk related t IT cncepts Machina Research 11
12 Many f these sectrs are already well established within the IT industry Selected IT market spend, USD Tn (nminal), Surce: Machina Research Selected IT Market Spend, USD Tn Cnsulting and prject wrk IT Services Enterprise Sftware Data Center Systems Machina Research 12
13 The ttal IT pprtunity will apprach USD4.5Tn by 2024 IT revenues (including M2M), USD Bn, 2014,2024 Surce: Machina Research 2015 IT (and M2M) revenues USD Tn Device Cnnectivity Platfrms and middleware Data mnetisatin and IT services Installatin M2M services Applicatins Systems integratin and strategy Clearly IT services represent a very substantial pprtunity Opprtunities fr new IT business prpsitins are incremental, n tp f these figures And that s the message: IT will be huge, and will disrupt almst all aspects f enterprise Be prepared! Machina Research 13
14 Enterprise drives the adptin f IT, but cnsumers will reap much f the benefit Greater efficiency means better gds and services at lwer prices And new prducts and services: Usage based (autmtive) insurance Smart metering supprting new energy tariffs and Virtual Pwer Plants Servitizatin And better use f existing resurces Natural resurces Infrastructure Skilled manpwer in fast develping markets Machina Research 14
15 Machina Research s Thught Leaders Gdfrey Chua Principal Analyst Fcus areas: Americas, carrier strategies, industrial, cnnected hme and wrkplace Emil Berthelsen Principal Analyst Fcus areas: Enterprise IT, big data, mbile enterprise applicatin platfrms, prcurement, SLAs, QS Jeremy Green Principal Analyst Fcus areas: Autmtive, M2M and IT technlgy ecsystem, key IT players Jim Mrrish Funder & Chief Research Officer Fcus areas: Enterprise IT, M2M applicatin sftware, M2M & IT platfrms Margaret Ranken Principal Analyst Fcus areas: cnnected hme, cnnected buildings, smart cities Emma Buckland Principal Analyst Fcus areas: M2M frecasts, cnsumer electrnics, cnnected living, regulatin Andy Castnguay Principal Analyst Fcus areas: Americas, M2M/IT devices & mdules, wearables, healthcare Alex Chau Research Directr, Head f Asia Fcus areas: smart cities, privacy and security, the Asia-Pacific regin Matt Hattn Funder & Chief Executive Officer Fcus areas: Operatr M2M and IT strategies, channels, M2M technlgies, regulatin Machina Research 15
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