IBM Internet of Things Point of View and Strategy.



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IBM Internet of Things Point of View and Strategy. Jim Caldwell Director, IBM Internet of Things, Continuous Engineering Solutions Development

Abstract: The Internet of Things is predicted to have an economic impact of more than $11 Trillion per year by 2025. It has become a focus of discussion by technologists, the business press and the general public. Clearly something is happening but what? And what should businesses and institutions do about it? This presentation will survey the topic from IBM's perspective. We will discuss what the Internet of Things is. We will also discuss IBM's point of view and strategy, some examples of offerings and client engagements. Finally, we will conclude with some key questions and research challenges. 2

Introduction: John Cohn IBM Fellow 3

Putting it all together IoT from Chip to Cloud to App The IBM IoT ecosystem helps companies build and deploy IoT end to end Connectivity & Security technology Connectivity & Security technology Connectivity, Security and edge analytics Relationships & reach SoftLayer Cloud platform Bluemix innovation platform IoT services IBM IoT Industry solutions IBM GBS services Industry sales & distribution expertise IBM Silicon IoT Devices Gateways Networks Cloud Solution & Applications Oil & Gas Energy & Utilities Smarter Cities Connected Vehicle Life Science & Healthcare Consumer Electronics Transport & Rail Industrial Manufacturing Your silicon, embedded OSes & Recipes Your IoT devices & recipes for connecting them Your gateway and recipes for connecting them Your network Additional value add cloud services Customer solutions built on IBM IoT technology Partners End-end IoT solution 4

Agenda IBM Cloud and Cognitive Watson IoT Platform 5

TIME RECORDERS, MEAT SLICERS AND TABULATORS 6

AND CARD PUNCHES 7

AND TYPEWRITERS 8

AND BIG COMPUTERS 9

AND LITTLE COMPUTERS 10

AND NOW We are emerging as a Cognitive Solutions and Cloud Platform company Ginni Rometty Chairman, President and Chief Executive Officer http://w3-workplace.ibm.com/news/w3news/top_stories/2016/01/chq-dear-ibmer-19january2016.html 11

CLOUD

The Bluemix Platform Global // Hybrid // Open Core Pla)orm Global // Hybrid // Open App Centric Compute PaaS // Container // VM s API s IBM // 3 rd Party // Yours Data Driven App s Watson // IoT // Big Data Build modern apps that thrive on data Optimize and transform existing apps Easily & Securely leverage your existing API s & Data Foster a culture of continuous innovation & delivery Powered by Open IaaS // PaaS // SaaS Built for enterprise Development // IntegraIon // DevOps

Built on the Highest Performing Cloud Infrastructure Spanning across the globe A different kind of data center Every location designed, built, and operated to the same standardized, pod based spec 24/7 on-site security and rigorous controls Public, private, and management networks all separate More than 2,000Gbps between data centers and network points of presence (PoPs) Unmetered inbound public bandwidth and fully unmetered bandwidth between data centers Entirely automated SoftLayer API controls everything Bare metal and virtualized servers in the same platform Carrier grade private network with over 2,000 Gbps of connectivity Over 29 global locations with geographic disperse network PoPs

Broad range of IBM & 3rd Party Services Commerce Healthcare Analytics Watson Security 15

Digital Intelligence meets Digital Business: Welcome to the Cognitive Era. A new era in technology, a new era in business.

Where code goes, where data flows, cognition will follow. 17

We can now confer on every digitized object, product, process and service a kind of thinking ability. How, and why now? Data is transforming industries and professions. The world is being reinvented in code. Computing is entering a new Cognitive Era. 18

HOW, AND WHY NOW? Data is transforming industries and professions. 19

CONSIDER: Data flows from every device, replacing guessing and approximations with precise information. Yet 80% of this data is unstructured; therefore, invisible to computers and of limited use to business. By 2020, of new information will be created every minute for every human being on the planet. HEALTHCARE DATA GOVERNMENT & EDUCATION DATA 99% 88% 94% 84% growth by 2017 unstructured growth by 2017 unstructured Healthcare data comes from sources such as: Patient Sensors UTILITIES DATA Electronic Medical Records Test Results Government & education data comes from sources such as: Vehicle Fleet Sensors MEDIA DATA Traffic Sensors Student Evaluations 93% 84% 97% 82% 1.7 MB growth by 2017 unstructured growth by 2017 unstructured Utilties data comes from sources such as: Utility Sensors Employee Sensors Location Data Media data comes from sources such as: Video and Film Images Audio 20

HOW, AND WHY NOW? The world is being reinvented in code. 21

CONSIDER: The world is being rewritten in software code, and cloud is the platform on which the new digital builders from developers to business professionals are reimagining everything from banking to retail to healthcare. Smart TVs represented 27% of all TV sales in 2012; by 2018, they will represent 82%. Smart LED lighting will grow from 6M units in 2015 to 570M units in 2020, used for safety communication, health, pollution and personalized services. By 2017, there will be 1B connected things in smart homes, including appliances, smoke detectors and cameras. 100,000,000 lines of code in a new car 5,000,000 lines of code in smart appliances 1,200,000 lines of code in a smartphone 80,000 lines of code in a pacemaker Code Tools Analytics Data APIs 50% of B2B collaboration will take place through web APIs next year. Sensors for industrial asset monitoring and management will grow from just over 15M units in 2014 to over 40M units in 2018 By 2020, there will be 925M smart meters installed worldwide, more than double the 400M in 2014. Smart traffic sensors and other devices installed in smart cities will grow from 237M units in 2015 to 371M in 2017. Revenues for smart grid sensors will grow ten-fold from 2014 to 2021. 22

HOW, AND WHY NOW? Computing is entering a new cognitive era. 23

CONSIDER: Cognitive systems can understand the world through sensing and interaction, reason using hypotheses and arguments and learn from experts and through data. Watson is the most advanced such system. Today, businesses in 36 countries across. 17 industries are applying cognitive technologies. There are 350+ Watson ecosystem partner companies, with 100 of those have taken their product to market. 78% of business and IT executives believe that successful business will manage employees alongside intelligent machines. On average there are 1.3B Watson API calls a month and growing. Among C-Suite executives familiar with cognitive computing: 96% 84% 94% 89% in insurance intend to invest in cognitive capabilities. in healthcare believe it will play a disruptive role in the industry, and 60% believe they lack the skilled professionals and technical experience to achieve it. in retail intend to invest in cognitive capabilities. in telecommunications believe it will have a critical impact on the future of their business. 24

Tennessee Highway Patrol The Challenge The Data The Insight Drunkenness and seatbelt compliance are two of the primary drivers of serious road accidents and fatalities. Without resources for more troopers, the Tennessee Highway Patrol (THP) in the United States had to direct resources creatively and effectively. With IBM, THP created a predictive model that correlates historic traffic incident data (location, time, weather, proximity to events, etc.) with realtime unstructured event and weather data. The analytics system divides the state into six-bysix mile squares and predicts which will become hotspots for drunk driving and seat belt violations, in four hour windows. The Action Why does it matter? IBM Content Police officers, consulting their cognitive dashboards, are assigned to one of these hotspots per this predictive intelligence. THP has been able to reduce serious injuries and fatalities caused by drunk driving, by more than 6%, to the second lowest level since 1963. Key factors in driving this improvement are a 46% increase in seat-belt citations and a 34% increase in DUI arrests. Being able to more accurately intervene based on predictive analytics and address the root cause of road accidents has driven the reduction in serious injuries and fatalities. In doing so, the police chief believes that police officers have become proactive, rather than reactive, in reducing serious incidents. IBM Cognos Business Intelligence and IBM SPSS Modeler 25

Baylor College of Medicine The Challenge P53 is an important protein related to many cancers. But there are thousands of papers that researchers must read to fully understand the topic. On average, a scientist might read between one and five research papers on a good day, according to Dr. Olivier Lichtarge, the principal investigator and professor of molecular and human genetics, biochemistry and molecular biology at Baylor College of Medicine. To put this in perspective with p53, there are over 70,000 papers published on this protein. Even if I m reading five papers a day, it could take me nearly 38 years to completely understand all of the research already available today on this protein. The Action In a matter of weeks, biologists and data scientists using the Baylor Knowledge Integration Toolkit (KnIT), based on Watson technology, accurately identified proteins that modify p53, an important protein related to many cancers, which can eventually lead to better efficacy of drugs and other treatments. The Data In a feat that would have taken researchers years to accomplish without Watson's cognitive capabilities, Watson analyzed 70,000 scientific articles on p53 to predict proteins that turn on or off p53's activity. Why does it matter? This automated analysis led the Baylor cancer researchers to identify seven potential proteins to target for new research. These results are notable, considering that over the last 30 years, scientists averaged one similar target protein discovery per year. The Insight In a retrospective, peer reviewed study released by Baylor College of Medicine and IBM, scientists demonstrated a possible new path for generating scientific questions that may be helpful in the long term development of new, effective treatments for disease. IBM Content Watson Discovery Advisor 26

INTERNET OF THINGS

IoT is driving Digital Disruption of the Physical World Accelerating advances in technology Advanced analytics Cloud computing Pervasive connectivity Product Lifecycle Management Embedded sensors Are transforming every part of business Improving operations and lowering costs Creating new products and business models Driving engagement and customer experience

IoT value is realized in four foundational areas Industry TransformaIon IoT ApplicaIons Pla)orms Devices & Networks Evolving new business models Optimizing operations and enhancing performance Building and managing IoT solutions Connecting what matters Representative Products IoT for Automotive, IoT for Electronics, IoT for Insurance Asset Management, Facilities Management, Predictive maintenance IoT Foundation (IBM IoT platform) Continuous Engineering IBM Ecosystem partners 29

Outcomes from IoT industry transformations Innova&ve services for car sharing Accelerated &me to market of mobile app releases with expedited release management Improved service reach and availability through pla)orm as a service Reliable opera&on of service due to the robustness and power of IBM enterprise-class sorware Improving customer engagement Re-inven&ng business models with data Improved visibility with real-ime data gathered across different sources Be>er quality of their vehicles by uilizing predicive maintenance New partnership created based on data from connected cars Driving new business models 30

Outcomes from IoT engineering and programming platform solutions Turning engineering insight into outcomes Increase visibility into product-development processes, to effecively track and monitor producion for product s lifecycle Enhance scalability to simplify integraion of future data sources and other applicaions Enhanced racer and viewer experience Improves decision-making and safety during the race by providing criical data to drivers Enhances experience of fans watching races with real-ime 3D data visualizaion Reduced impacted analysis Imes from weeks to days 40% Faster ApplicaIon development process 31

What is an IoT Platform? Devices Platform Applications Watson IoT Platform 01 0110 0010 001001 Sensors & Networks Other Data Sources Repeatable & Optimized Operations Weather Map

The IBM Watson IoT Platform Offerings Everything you need to transform with IoT IBM Watson IoT Cloud - Connect Connect and manage devices, networks, and gateways Watson IoT Platform Anomaly Detection Blockchain Firmware Updates IBM Watson IoT Cloud - Information Management Integrating information, structured and unstructured, from devices, people, and the world around us IBM Watson IoT Cloud - Analytics Gaining insights from information using Realtime, Predictive and Cognitive analytics IBM Watson IoT Cloud - Risk Management Ensuring you leverage the right information from the right sources, and ensuring the right software runs where you need it 33

IBM Watson IoT Cloud - Connect Connect what matters. The Hub for IoT Data Connecting and managing your IoT devices, Gateways and Networks from a broad and growing ecosystem Open standards based communications (MQTT, HTTPS) Secure communication and management Globally scalable, starting with a single device Any Device, Anywhere! Watson IoT Platform

IBM Watson IoT Cloud - Information Management Combine contextual data, such weather, with analytics and internet of things to deliver better outcomes Watson IoT Platform Weather assets Incorporate weather data into your IoT applications Combine weather data in your data set to gain more insight Insights for Weather API now available on Bluemix Weather Data!

IBM Watson IoT Cloud - Analytics Add cognitive capabilities to IoT data to produce new insights and intelligence: cognitive IoT Watson IoT Platform Cognitive capabilities in IoT apps Natural Language Processing Machine Learning Text Analytics Video/Image/Audio Analytics

IBM Watson IoT Cloud - Risk Management Address privacy and manage risk through security and Blockchain capabilities Watson IoT Platform Leading Security Capabilities Providing the ability to enforce the appropriate level of security and privacy to your IoT solution from the device through the network to the cloud and beyond Anomaly Detection Blockchain Firmware Updates End to end core security features System wide confidence via Security Analytics and Device Management Support for secure decentralized systems with Blockchain

Putting it all together IoT from Chip to Cloud to App The IBM IoT ecosystem helps companies build and deploy IoT end to end Connectivity & Security technology Connectivity & Security technology Connectivity, Security and edge analytics Relationships & reach SoftLayer Cloud platform Bluemix innovation platform IoT services IBM IoT Industry solutions IBM GBS services Industry sales & distribution expertise IBM Silicon IoT Devices Gateways Networks Cloud Solution & Applications Oil & Gas Energy & Utilities Smarter Cities Connected Vehicle Life Science & Healthcare Consumer Electronics Transport & Rail Industrial Manufacturing Your silicon, embedded OSes & Recipes Your IoT devices & recipes for connecting them Your gateway and recipes for connecting them Your network Additional value add cloud services Customer solutions built on IBM IoT technology Partners End-end IoT solution 38

Client Stories Innovative solutions of IBM Watson IoT clients 39

Nairobi s Living Roads project illustrates how one IoT app, on one device, can change business models and public services IBM Research Africa created cognitive transportation data hub that uses smartphone sensor data to monitor road infrastructure and traffic conditions and provide fleet analytics. VIDEO

The Chamberlain Group Inc. developed a mobile IOT app that provides competitively differentiated capabilities and user interface One million users can now access platform without drop off in service 10X performance improvement Speeds deployment and development of new features with total platform control Opens new business opportunities for additional connected products

Connected appliances provide new link from customers to warrantee services, product design and automated retail replenishment 70% decrease expected in customer service call Time improving service levels and customer sat. 50% reduction projected in service and parts provision costs Reduces IT costs with cloud-based hosting and solution as a service delivery

WHAT NEXT

Ecosystem & partnership strategy extend the IBM IoT platform Derive IoT value on the Cloud through strong industry partnerships and open ecosystem Connecting Devices to the IBM IoT platform: Examples: Wide variety of supported devices ü ü ü ü Self Service Open ecosystem Simple tutorials Connect in moments

@ibmblu emix @robinso nsj

Hard Problems Volume, Volume, Volume Computation at the edge. How can we distribute some of the analysis to the edge. Testing of large scale IoT systems ( large scale simulation, abstractions) This stuff moves. Connected/disconnected modes Security - in all levels- device, network, application Devices are just as susceptible to attack as computers, tablets, and mobile devices New Privacy Landscape Monetization of IoT data? Role for Blockchain?

BACKUP

Watson on Bluemix Watson is creating a new partnership between people and computers that enhances, scales and accelerates human expertise Reason Listening Speech Learning IBM Watson services available on Bluemix are the building blocks for developers to create the next generation of cognitive applications to transform the way businesses engage with their customers, discover, innovate and make decisions 48 2014 International Business Machines Corporation Vision build with Watson