Digital Tech Trends August 2016
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Contents
Formation Name Focus Area
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Data Platforms Deep-Learning and AI IT Architecture
28
Marketing & Customer Analytics Data Driven Marketing
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Product Design Chatbots / Intelligent Agents
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Enterprise Services Virtual Mobile Infrastrucutre
12
Nest Generation Networks Next Generation Hotspot Roaming (4G and Wi-Fi convergence), SDN, NFV, IoT
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Blockchain Decentralized Blockchain Technologies
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HR 2.0 Human Resources Innovation & People Analytics
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Information Technology IT Datacenter, Cloud, Infrastructure and Software Defined Storage
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Entertainment Technology Video Technologies and Services
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Mobile Services Mobile Services, the “4th Wave�
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Sustainable Food Systems Food as a Supply Chain
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Emerging Wireless APIs and Wireless Services, 5G
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High Performance Computing Satellites & Drones, Machine Learning / Deep Learning / Artificial Intelligence, and Network Centric Computing with AI on the Edge
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IoT LoRa and IoT Connectivity, Internet of Things
60
Machine Learning Machine Learning and Artificial Intelligence
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Smart Cities Smart Cities and Internet of Things
68
Connected Car Connected Car
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Digital Health
76
Big Data Data governance
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Data Platforms
Deep Learning & AI IT Architecture
“There are numerous other experiences on Facebook that could benefit from machine learning models, but until recently it’s been challenging for engineers without a strong machine learning background to take advantage of our ML infrastructure. In late 2014, we set out to redefine machine learning platforms at Facebook from the ground up, and to put state-of-the-art algorithms in AI and ML at the fingertips of every Facebook engineer.” - Hussein Mehanna, Director of Facebook’s Core Machine Learning Group
FBLearner flow: Facebook’s AI backbone
AI backbone tools like FBLearner Flow will be necessary to improve the productivity of data scientist; a tool that could efficiently share algorithms and optimize the usage of computation resources in a AI/ML infrastructure. IT has to move close to these models to provide effective platforms to optimize the usability of the AI/ ML in the business.
Machine learning driven programming: a new programming for a new world Google is a clear example of identifying better programmatic models to improve productivity around building Machine Learning and Deep Learning. The opportunity for IT to provide a better language to define AI/ML workflows in a SaaS fashion will improve and facilitate the adoption of algorithms to be a core component of new products or decisions.
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“More than 25 percent of the company are using FBLearner Flow, in scenarios that we haven’t really envisioned before to improve the performance of testing machine learning models,” - Hussein Mehanna, Director of Facebook’s Core Machine Learning Group
“If Google were created from scratch today, much of it would be learned, not coded. Around 10% of Google’s 25,000 developers are proficient in ML; it should be 100%” - Jeff Dean, Google Senior Fellow, Systems & Infrastructure Group
100
Early stage ML startups we have met in the last six months, 90+ percent of them are already planning to use ML to deliver a better experience for their customers
500,000
Number of workflow runs executed on a cluster containing thousands of machines at FBLearner flow
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Product Design
Chatbots / Intelligent Agents
“Our system works�
- Ilya Gelfenbeyn, CEO, api.ai on how the company’s natural language processing and artificial intelligence is different from the competition
Google unveils its smart speaker - Google Home At its annual I/O developer conference, Google unveiled a new hardware device and competitor to Amazon Echo, a portable speaker powered by voice assistance technology called Google Home.
Google plays catch up with Amazon’s takeoff hit the Amazon Echo - voice-based Smart Speaker and rumors of Apple’s competing product start. “Zero” or “invisible” UI has arrived and will change the way we interact with technology. From a brand perspective, these platforms become “bots of bots”. How will your brand stay relevant and avoid being disintermediated?
Apple finally opens Siri to third-party developers Apple announced an SDK that allows developers much greater access to Siri — and the improved assistant will power a stationary hub device like Amazon’s Echo.
Apple’s Siri has not aged well and the walled garden approached has left the door open for competition. The company has finally opened up the gates to developers, but the details are scant. How will Siri choose among different apps to deliver similar services?
“These little squares we are staring at will be the hieroglyphics of the future.” - Katie McMahon, VP & General Manager, SoundHound “We’re making some huge bets on AI”
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- Joe Zadeh, VP of Product, Airbnb
$80M
Slack fund to invest in software projects that complement its technology - primarily Slackbots
$100M Alexa Fund
Amazon’s venture capital funding to fuel voice technology innovation in the Amazon Alexa ecosystem
10,000
Number of Facebook chatbots available today
89%
Percentage of consumers who want to engage in conversation with virtual assistants to quickly find information instead of searching through Web pages or a mobile app
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Next Generation Networks
Next Generation Hotspot Roaming (4G and Wi-Fi convergence), SDN, NFV, IoT
“Service Providers around the world are increasingly utilizing Wi-Fi networks and services to deliver compelling new user experiences, generate additional revenue, ease congestion on cellular systems, and increase network coverage,� -Aicha Evans, General Manager, Intel Mobile Wireless Group
US cable Wi-Fi hotspots near 17M The cable industry’s future in mobility is still uncertain, but while the pundits predict potential outcomes, a new Heavy Reading report sizes up exactly where cable companies stand today with their own WiFi deployments. Although WiFi isn’t the same as mobility, it is the starting point for cable operators considering their next foray into mobile broadband. With a total of nearly 17 million hotspots deployed by the US cable industry, that starting point is pretty big today.
Are you (we) ready to change?
“Next Generation Hotspot deployments will use standards-based roaming and empower operators such as BT Openzone to offer the service in partnership with other service providers throughout the world. Mobile users, whether they are based in the UK, visiting on holiday or travelling on business expect to receive a seamless voice and data service. Next Generation Hotspots enable them to enjoy an uninterrupted and secure Wi-Fi service at BT’s premier hotspots through the contract they hold with their existing, home country provider.” - Chris Bruce, CEO, BT Openzon
AT&T and Verizon have been already talking about the “telco transformation”, recognizing the immediate need to adapt to a new way of building infrastructure and monetizing on customer services. Everyone recognizes that the internal (culture) change in the way telcos think and operate will be the most challenging, while trying to embrace the new paradigm that virtualization is bringing about and which could enable the transformation of a telco into a true digital operator.
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71%
Percentage of mobile communications that flows over Wi-Fi
75%
Percentage of its networks AT&T plans to have virtualized by 2020
17M
Approximate # of US cable Wi-Fi hotspots
“Wi-Fi roaming will transform how we travel� - Christian Michaud, Senior VP, Product & Business Strategy at Tata Orange Silicon Valley
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HR 2.0
Human Resources Innovation & People Analytics
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72%
Employees believe their employers are not telling them what data is being collected about them
Hi-Tech companies are committed to improve workforce diversity
Workforce diversity has been a hot topic among hi-tech companies. Companies like Salesforce.com, Facebook, etc… have openly acknowledged openly their problems related to underrepresented minority groups. Intel is one of the companies taking action to correct diversity issues. Aiming to increase minority population by at least 14%, Intel committed a $300 million fund for the next 3 years to attract more women & minorities and to make the industry more hospitable. Intel also assigned President Renee James, #21 on Fortune’s Most Powerful Women list, to run the diversity transformation.
People analytics is at its tipping point
Although big data revolution has started for some time, most businesses’ human capital operations still haven’t adopted data-driven decision making. However, things are changing and even some HR professionals are calling this year, 2016, the year of People Analytics. People Analytics has begun the “Tipping Point” of exponential growth. Many companies’ HR units reported that they received more budget for head count or more budget for people analytics. Venture capital firms also show appetite to fund new startups using data analysis to solve people operation problems.
“People should make people decision. Data should guide the decision, but not make decision for people” - Ian O’Keefe, People Analytics Leader, Google 18
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“When companies need to publish with own workforce diversity data.... they need to get comfortable with the uncomfortable data.” - Auguste Goldman, Chief People Officer, GoDaddy
2.5X
Number of times more effective for high performing companies to leverage workforce diversity than average performing companies
32%
Companies having some form of predictive model for people operation
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Entertainment Technology Video Technologies and Services
$50M
Amount Facebook paid to media companies and celebrities to produce live videos on its platform
$90 in 2016 $74 in 2010
US TV Average Revenue per User (ARPU)
Mom disguised as Chewbacca on Facebook Live eclipsed the record for Facebook Live video with 159M views
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Not so long ago, live video broadcast was the monopole of traditional TV because of its complexity and cost
“I think we saw last week that Facebook Live could become the most intelligent cable news network ever built.
The emergence of virtual MVSPs and YouTube or Facebook as alternative TV platforms for cord-cutters
- Jonathan Klein, former president of CNN, who now runs a digital media company called Tapp
2016 was marked by the launch of several live streaming video services from a mobile device, with Facebook Live and Twitter-Periscope already leading the market.
In Q1 2016, in addition to Sling TV by Dish Network as virtual MVSPs, Sony also launched a new breed of premium OTT TV services called PlayStation Vue with full cloud DVR capability. From $39.99 per month (contract free, 2016 pricing), broadband users can subscribe to 3 different tiers of cable TV channels directly from Sony. Subscribers can view content via the PlayStation consoles, Amazon Fire TV, Roku and other Android connected devices.
With more than 1.65 billion users, Facebook effectively has one and a half billion news bureaus to capture news, and they’re capable of doing things that a cable news network could only dream of doing.”
“The real problem with TV isn’t that people are paying too much for channels and programs they don’t want, but that the tech they use to watch TV isn’t good enough.” - Eddy Cue, Apple’s Top Media Exec
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Sustainable Food Systems Food as a Supply Chain
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“Overall it’s become a more attractive space for a lot of venture capital and private equity firms, because on one hand, the market need has never been clearer. The large ag firms are going through some big changes, whether it’s pesticides not working out so well, crop productivity going down, or soil quality issues rearing their head. And lots of folks think that the large companies don’t necessarily have all the answers, but that they need more fundamental breakthroughs to improve the global situation. Then on the other hand, with advances in machine learning, computer vision, big data, drones, genomics and all that’s going with the emerging bio-ag companies, it’s a perfect storm of increasing market need and great tech innovation.” - Andrew Chung, Khosla Ventures
A record $4.6B was invested in agtech in 2015 and the trend continues in 2016
“We expect the precision agriculture space to continue to grow quickly as data becomes cheaper to store and easier to move from platform to platform. We are just beginning to explore all the value we can create for farmers with these tools.” - Brett Begemann, President and COO, Monsanto
Reducing food waste becomes an investible area for tech
“There’s a huge global opportunity. When we took a look at the size of the market we saw that half of the farms in the U.S. could directly use this.” - Andy Wheeler, General Partner, Google Ventures on investing in AgTech with Farmer’s Business Network
AI backbone tools like FBLearner Flow will be necessary to improve the productivity of data scientists, which could efficiently share algorithms and optimize the usage of computation resources in a AI/ML focus infrastructure. IT has to move close to these models to provide effective platforms to optimize the usability of the AI/ML in the business.
In the US and Europe, nearly 40% of all of the food that is grown is wasted. In the US, that translates into around 63 million tons of food waste per year. $90.6 million was invested in waste tech startups in 2015. With increasing consumer awareness around reducing food waste, comes an increased focus on the technology that solves the problem.
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$6B
The amount of money invested in startup companies in the last two years in non-consumer food tech
30-40%
The amount of food grown that is wasted before ever being consumed
60%
Percentage of the cost that labor accounts for in many types of food crops
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Marketing & Customer Analytics Data Driven Marketing
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“As the lines of traditional CRM have blurred, and as we acknowledge that our customers want us to interact with them in a consistent way at all these touchpoints, who will lead that? Who will help an organization actually manage and deliver that kind of consistent experience? How does that brand experience all come together in a consistent way? Someone needs to lead that, and that someone is the marketer.� -Scott McCorkle, CEO, Salesforce Marketing Cloud
By investing into media and advertising tech platforms, US Telcos are taking concrete steps to compete with Google and Facebook for mobile media revenue Verizon bought AOL for $4.4 billion last year. Now it will add Yahoo’s consumer services -- search, news, finance, sports, video, email and the Tumblr social network -- to its portfolio. The telecommunications giant hopes the combination will create a stronger No. 3 challenger to Google and Facebook for digital advertising revenue.
Customer Journey Analytics: the GPS for understanding your customers
Marketing isn’t the only team that influences the customer journey. Sales, commerce, customer service and support all have a stake in the journey, too. Each of these teams has its own set of customer data and analytical tools, and they are siloed, unable to connect a customer from web to email to mobile app to call center to store. That makes it difficult to view what’s happening across channels.
“The acquisition of “The end goal is to build Yahoo will put Verizon a big media business for in a highly competitive premium e-sports content.” position as a top global - Mike Sepso, mobile media company Senior V.P., and help accelerate our Activision Blizzard & Corevenue stream in digital founder of MLG advertising,” - Lowell C. McAdam, Verizon’s Chairman & Chief Exec
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$1B
AT&T AdWorks annualized revenue
$83 billion
Lost sales each year due to bad customer experiences (IBM’s 2016 CMO study)
115 million
People world-wide who watched e-sports online or in person at least once a month in 2015 (source NewZoo BV)
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Enterprise Services
Virtual Mobile Infrastrucutre
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$1100 / Year The cost per employee to provide them with a mobile device and connectivity
Virtual Mobile Infrastructure can be an answer to mobile security concerns in regulated industries
The current mobile device management and mobile application management are only stop gap measures to proctect the data on the device. VMI approaches the problem at the root level by keeping the data in the cloud and streaming it when necessary by not leaving any residue on the user device. While the solution may not be suitable for in emerging markets where 3G is prevalent, it may soon be adopted by regulated industries in developed markets.
Enterprise Mobility growth may become stagnant
The EMM (Enterprise Mobility Management) offerings from organizations like MobileIron, Airwatch and others lack further innovation in terms of protecting mobile threats. There may soon be an increasing need fot new technologies not only to protect data on the device, but also to predict and protect from eminent threats outside the device. Enterprise may soon take a comprehensive approach to security to protect data at various touch points.
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“While we offer a strong range of mobile security solutions, such as MDM (mobile device management) and MAM (mobile application management) to our more than 1,600 enterprise customers, Virtual mobile infrastructure platform enables us to be more competitive in meeting demand for a different, more powerful approach than Samsung KNOX to protect mobile data and user privacy, especially in the financial and healthcare sectors.” - Bumsik Han, CEO, SK Infosec Orange Silicon Valley
“We see three significant factors converging to create a new category and the ‘perfect storm’ for virtual mobile platform:(1) the increase of mobile device use in government, (2) the growth in the number of attacks and exploits that target the mobile device and (3) the inability of traditional methods that look to control and secure the physical device.” - David Hood, CEO, Hypori
74%
Percentage of CIO’s that have experienced a data breach as a result of a mobile security issue (IDG Research)
$3B
Estimated enterprise mobile security market size by 2019
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Blockchain
Decentralized Blockchain Technologies
1,528,238,850 GH/s Peak cumulative Bitcoin Hashrate. Hashrate is a measure of mining power used to secure the network via Proof-of-Work
Ethereum has reached the second highest market capitalization following Bitcoin
The market cap of Ethereum sits at approximately $1B (Bitcoin has a market cap of $10B); on January 1st, Ethereum sat in fourth place with a market cap less than 1/10 its current size. Like Bitcoin, Ethereum is based on open source software that supports a public blockchain which may be accessed by anyone over the internet. Ethereum was designed as a platform to run distributed applications, as opposed to Bitcoin’s primary function as a an exchange of value. The past year has seen the emergence of an Ethereum community that includes competing startups founded by two former leaders of the Ethereum Foundation. The developer community is supported by forums, meetups and a growing list of tools. Due to an attack against smart contracts used to run The DAO (a decentralized autonomous organization), there has been a good deal of negative publicity recently. Due to a successful community response, the effect on the price of Ether has not been as drastic as some had predicted.
Bitcoin may usher in a new wave of decentralization
While the internet and the web can be considered inherently decentralized, the commercial internet has become increasingly centralized as consumers have concentrated their email, social networking, micro-blogging, photos and videos on large corporate servers. Enterprise applications are similarly designed servers running central databases. Spurred by the success of Bitcoin and other blockchains, there is now a growing movement to support decentralization; Ethereum was created as a platform for decentralized applications (Dapps). Other entrepreneurial decentralized technologies include IPFS (InterPlanetary File System), BlockchainDB, Interledger, as well as Blockstack and other “self-sovereign identity� projects. Conferences such as the recent ID2020 Summit held at the UN in New York and the more generally focused Decentralized Web Summit, held in San Francisco, have shone a spotlight on the nascent movement.
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“Ethereum Contracts will be candy for hackers. Code quality of dapps is currently low, sadly.” - Peter Vessenes, Former Chairman of the Bitcoin Foundation, tweeting one month prior to The DAO attack.
$1.1B
Market cap of the Ethereum cryptocurrency, up from $70M on January 1, 2016. It had reached a high of $1.6B just before the hack of The DAO. “The web is already decentralized. The problem is the dominance of one search engine, one big social network, one Twitter for microblogging. We don’t have a technology problem; we have a social problem.” - Tim Berners-Lee, creator of the World Wide, speaking at the Decentralized Web Summit in San Francisco.
$235M
Total amount of publicly disclosed Bitcoin & Blockchain VC investment during S1 2016. Orange Silicon Valley
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Information Technology
IT Datacenter, Cloud, Infrastructure and Software Defined Storage
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“OCP Telco Project is a strategic initiative to move the cloud closer to the network’s edge, where apps can be built to perform complex functions.” - Dr. Frank Fitzek, Chair of Communication Networks, Deutsche Telekom
9 years old
Age of the youngest Apple app developer at the Apple Worldwide Developers Conference
$5
Price of the Raspberry Pi Zero computer
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VMWare is the one who coined software defined data center and software defined storage
The SDDC architecture has made hyper scale growth possible for Internet giants like Google (GOOG), Facebook (FB), and Amazon (AMZN) who have 100% cloud-based businesses. These firms don’t use specialized storage platforms, but purchase hardware that meets their specific needs and then control it using software. HP’s (HPQ) ProLiant DL2000 Multi Node Server is one of the systems that meets the requirements of such cloudbased businesses.
Facebook’s huge plan to shake up dull world of telecoms
Facebook has teamed up with Nokia, Intel, and several telcos, proposing the Telco Infra Project, or TIP. The goal is to build open source hardware and software that will cover the three elements of a telecommunications network: The access, the backhaul and the core. This project is in addition to the Open Compute Project, focusing on datacenter technologies, that welcomed many telcos as new members early 2016, with the creation of the telco sub group within OCP.
“With that software defined everything, one person with a laptop can change how an industry works” - Solomon Hikes, CTO, Docker
In a very competitive market, Mesosphere open sources DC/OS, backed by Cisco, HPE and Microsoft
After being one of the first player in the datacenter orchestrator/manager market, Mesosphere has seen in 2015 Docker and Google’s Kubernetes getting all the traction. Despite a successful deployment at Verizon of DC/ OS and small pockets such at Disney, most users (e.g. Apple, Twitter, Uber) only use the free open core called Mesos. The company has been forced to open source to stay in touch with its potential customers and the larger ecosystem around Linux containers. With Microsoft being part of the $73.5M new round, open sourcing must have been high in the list of requirements. Something which would have still been weird to say not too long ago.
“Cities are becoming cloud services providers” - Peter Marx, CTO, City of Los Angeles
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Mobile Services
Mobile services, the “4th Wave�
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“Compared to Go90 and other app-based mobile video services, T-Mobile’s Binge On may have an edge because it harnesses the popularity of existing video services and does not require users to download a piece of software to begin viewing. Monetization of Binge On comes from subscriber growth, retention and customers buying up to plans with 3 GB+.” John Hodulik, Telecom and Cable Analyst, UBS
Carriers are capitalizing on the rising demand of mobile video
The NPD Group reported in March that 81% of all U.S. smartphone users stream video on their devices. Verizon’s Go90 mobile video service offers content from traditional TV networks, online multi-channel networks, and live events such as NFL games and concerts. Go90 is ad-supported for now and not expected to be profitable for at least the next two years. AT&T’s strategy is to bundle the sale of video services with its other services, e.g., providing special wireless plans for TV customers and vice versa. It further plans to launch a three-tiered cross-platform video offering under the DirecTV brand in Q4. T-Mobile’s Binge On offers subscribers zero-rated video streaming from more than 100 partners. Unliked Verizon’s Go90 and AT&T’s DirecTV, which aim at revenue generation, T-Mobile’s Binge On mainly aims at customer acquisition and retention.
Carriers dabble in zero-rating as the FCC continues to observe
It has been over two years since AT&T introduced its sponsored data program. The carrier further launched Data Perks last October, where subscribers earn extra data by completing offers. Verizon launched a new sponsored data service dubbed FreeBee Data in January. Content providers can sign up to provide some or all of their mobile content to consumers while sponsoring their data usage. T-Mobile’s Binge On video zero-rating was considered “highly innovative and highly competitive” by FCC chairman Tom Wheeler shortly after launch late last year. The “uncarrier” further tested the water in July by zero-rating the popular Pokemon Go app via the T-Mobile Tuesday loyalty program. For now, the FCC remains in a “discovery mode,” trying to understand the net neutrality issues on a case-by-case basis. According to Chairman Wheeler, “it is not a one-size-fits-all situation.”
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“We’re collecting information, as I’ve been telling you for months, we’re in ongoing discovery mode to try and have an understanding of just what is the spectrum that we’re dealing with here so that we can deal with these issues on a case by case basis.” - Tom Wheeler, FCC Chairman, On Zero-Rating
“Combining Verizon, AOL and Yahoo will create a new powerful competitive rival in mobile media, and an open, scaled alternative offering for advertisers and publishers.” - Tim Armstrong, CEO, AOL
765M+
$25B
Collective hours of Binge On-eligible video that T-Mobile customers streamed in July 2016 (up from 500M in June and 377M in May)
Expected mobile video advertising revenue in 2021 (advertising spending on mobile video will grow at a 28% CAGR in the next five years)
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Emerging Wireless
APIs and Wireless Services, 5G
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“In a serverless world you don’t have to think about containers any more, you just write your code. You glue the different pieces together that are all managed. They are managed for you,” - Dr Werner Vogels, CTO, Amazon
Health care services are U.S. regulators pave becoming important for way for speedy nextmobile users generation 5G networks Within the last few months, Samsung ’S Health’ has reached to 150 million users across 130 countries and is growing continuously. Samsung is going to offer remote medical care services through the partnership with global leading health service providers, and has also teamed up with companies to provide “telehealth” to users anytime, anywhere. Many other mobile device makers, technology companies and carriers have rolled out new products and services to meet the increasing demand for mobile monitoring solutions.They are also monitoring, collecting and analyzing the health data through mobile devices to improve patient care. We are continuously seeing new healthcare connected devices, mobile applications and other health services form mobile users.
The FCC voted unanimously to open up ~11 GHz of highfrequency spectrum to help carriers create 5G networks that would be faster than existing 4G ones, making the US the first country to make these high frequency bands accessible to 5G. Out of the total 11 GHz of spectrum, starting in bands as low as 28 GHz going up to bands at 71 GHz, 3.84 GHz is to be licensed and 7 GHz is to be unlicensed.
“2017 will be a development year for 5G. To get to a commercial launch and actually start to generate revenue -- I think that will come in very late ‘17 or ‘18,” - Fran Shammo, CFO, Verizon
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21 Million
Tizen based TVs sold worldwide
“VR & AR will go beyond games and there will be a need for a new language for VR and AR.� - John Riccitiello, CTO, Unity
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High Performance Computing
Satellites & Drones, Machine Learning / Deep Learning / Artificial Intelligence, and Network Centric Computing with AI on the Edge
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“While there are multiple companies and consortia with ambitions to connect the world with telecom, the key technologies underlying ViaSat-3 are in hand today, enabling us to move forward in building the first broadband platform to bring high-speed Internet connectivity, including video streaming, to all.� Mark Dankberg, Chairman and CEO, ViaSat
OneWeb plans to provide broadband access to the most isolated of rural communities OneWeb raised $500 million from Airbus, the Virgin Group, Qualcomm, Hughes Network Systems, Intelsat and cellular network operators Bharti Enterprises of India and Mexico’s Grupo Salinas. The company envisions a constellation of 720 satellites weighing 125kg each. The service is planned to be operational in 2019.
New IT security assumes that breaches will occur and need to detect inprogress attacks
New security solutions are perpetually analyzing the IT domain and employs multiple techniques to scan, analyse and determine in-progress security incidents. They emphasize endpoints as part of the source information for threat detection and coagulate multiple signals to pinpoint active threat to protected systems. Eventually they will replace existing security NGFW, IPS or sandboxing systems.
Google supercharged machine learning by open-sourcing Tensorflow with tailored TPU custom chip
In November 2015, Google open-sourced TensorFlow, the machine learning software built by the Google Brain team. TensorFlow represents computations as stateful dataflow graphs and is able to model computations on a wide variety of hardware, from consumer devices to large-scale heterogeneous, multiple GPU systems. On May 2016, Google also announced Tensor Processing Unit (TPU), a custom ASIC chip built specifically for machine learning — and tailored for TensorFlow. Google believes its superior AI (software and hardware) will be the key to its future.
“Machine Learning is affecting so many industries; AI is equally transformed to different industries, so standards could be established for AI.” - Andrew Ng, Chief Scientist at Baidu Research in Silicon Valley “In high performance computing, making the machine 2X faster means 2X productive!” - Andrew Ng, Chief Scientist at Baidu Research in Silicon Valley 54
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53.9%
CAGR to 2020 for SDN market comprising physical network infrastructure, virtualization/control software, SDN applications (including network and security services), and professional services (IDC)
$1.8B
Total venture capital investments in space companies in 2015, more than the previous 15 years combined
$109M
Deep learning software market in 2015, and to surpass 10 Billion by 2024
Copyright Š Deep Dream Generator 2016. All Rights Reserved. Orange Silicon Valley
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LoRa and IoT Connectivity, Internet of Things
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“Digital is going to be at the forefront of every industrial company going forward� - Bill Ruh, CEO, GE Digital
Computing for IoT has many parts
Computing for IoT includes (1) edge computing, locally on the device to quickly process data and identify which information to pass to the cloud, (2) cloud computing for efficiency, (3) machine learning to gain insights from large datasets, and (4) security to ensure data protection.
SIGFOX wxpanding internet of things network in 100 U.S. cities to meet strong market demand
In May of this year, Sigfox announced that it would be expanding coverage to 100 cities in 2016. They announced more than 7 million devices are powered by their IoT network. “The U.S. is a huge growth market for Internet of Things connectivity, especially in smart cities, utilities, shipping and agriculture sectors that require large-scale and costeffective communication,” said Allen Proithis, president of SIGFOX North America. “Our partnerships with these site owners enables SIGFOX to leverage existing sites to rapidly deploy our out-of-the-box connectivity solution in the U.S. market. SIGFOX’s low-cost Internet of Things connectivity complements cellular networks, and allows billions of additional devices to participate in the benefits of IoT.” “[Opportunity in IoT comes when we] replace an existing product with something 10x better or 10x cheaper” - Phil Boyer, Venture Associate, Crosslink Capital “IoT devices will become even greater targets of opportunity. They are attractive targets because they are always connected, pervasively installed in environments with people and valuable assets, and poorly managed. ” – Benjamin Jun, CEO, HFV Labs
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3M
Estimated sales to date for Amazon Echo, which is eclipsing Nest Learning Thermostat as the flagship example of an IoT device
50 to 200B
Connected devices by 2020. Cisco estimates the number of connected devices worldwide will rise from 15 billion today to 50 billion by 2020. Intel claims that figure will be over 200 billion
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Machine Learning Machine Learning & Artificial Intelligence
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“In the long run, I think we will evolve in computing from a mobile-first to an AIfirst world� - Sundar Pichai, CEO, Google
15% improvement
in power usage and $100+ M in savings in Google’s data centers’ power consumption by a DeepMind AI system. The system manages 120 variables, including fans, cooling systems and windows
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85%
Of customer interactions will be managed without a human by 2020
PageRank, Google’s flagship product, soon to be replaced
“Everything invented in the past 150 years will be reinvented using AI within the next 15 years.” - Randy Dean, Chief Business Officer, Sentient Technologies
IBM casting a wide net to feed Watson Health
“I think artificial intelligence is going to be transforming massive swaths of the area of work in the economy. Even affecting professional spheres. Ten to twenty years from now if you’re going to be an effective lawyer, doctor, or financial analyst, it will be in part your ability to use the technological implements, loosely going under the name of artificial intelligence.” - Reid Hoffman, Chairman & Co-founder, LinkedIn
Among the initiative’s goals are helping local communities tackle key challenge such as reducing traffic congestion, fighting crime, fostering economic growth, managing the effects of a changing climate, and improving the delivery of city services.
Having spent $4 billion in strategic acquisitions of Truven Health, Phytel, Merge Healthcare and Explorys, IBM now owns health records of more than 300 million individuals. In addition, Watson Health is forming a 16-member international collaborative of health systems, academic medical centers and imaging technology companies to speed development of products that diagnose patients accurately the first time.
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Smart Cities
Smart Cities & Internet of Things
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“Every community is different, with different needs and different approaches. But communities that are making the most progress on these issues have some things in common. They don’t look for a single silver bullet; instead they bring together local government and nonprofits and businesses and teachers and parents around a shared goal.� - President Obama, Smart Cities Initiative launch, Sept. 2015
The Obama Administration launched the Smart Cities Initiative
Pledging $160M to develop Smart Cities applications. Among the initiative’s goals are helping local communities tackle key challenge such as reducing traffic congestion, fighting crime, fostering economic growth, managing the effects of a changing climate, and improving the delivery of city services.
“The 19th century was a century of empires, the 20th century, a century of nation states. The 21st century will be a century of cities.” - Wellington Webb, Former Mayor of Denver and past President of the U.S. Conference of Mayors
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Democratic Presidential candidate Hillary Clinton releases major technology and innovation agenda
The comprehensive agenda includes plans to expand broadband access to all American homes by 2020, support net neutrality, forgive some student loans for entrepreneurs, invest in computer science education in schools and create a national commission on digital security. It garnered significant support in Silicon Valley.
“Smart cities are about people, and just building the technology won’t get you where you want to go.” - Paul Wilson, Managing Director of Smart City programme Bristol is Open
2X
The world population living in cities will double by 2050, according to the UN, adding 2.5 billion people to the world
94%
Of new jobs created in the US were in cities in 2015, according to the 2016 USCM Metro Economies report
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Connected Car Connected Car
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“I think walking in a collaborative fashion with people who have historically been viewed as intruders and potential enemies of our business, walking with them at their speed is the best possible solution for us in terms of determining what our future state will be...There are a lot of unresolved issues, the most important one is: What is the economic model that ultimately determines the sharing of the attributes of this new model? Who gets what out of all this? Now, I don’t have an answer. But if we don’t start exploring this, we’ll never know.” - Sergio Marchionne, CEO, FCA Group (Fiat-Chrysler)
Automakers bet on mobility services for future profitability and growth
Major car OEMs realize that even though car sales are still increasing, the rise of autonomous technology and the millennial generation is expected to bring the end of growth in car sales in developed markets. To plan for that day, which might be as close as this year, many of them announced investments in ridesharing and car sharing companies in order to profit on car usage instead of just car sales. GM invested $500M in Uber-competitor Lyft and founded Maven, a car sharing company. Ford founded Ford Smart Mobility, a new subsidiary that will develop mobility services using Ford vehicles. They also invested $180M in Pivotal Software who developed the Ford Pass app. Toyota invested $200M in Uber and announced the two companies will work together on autonomous technology. Volkswagen paid $300M for a controlling stake in Uber-rival Gett, which is present in 60 cities across US, UK, Israel and Russia. Daimler acquired taxihailing company Hailo and will merge it with myTaxi. BMW relaunched DriveNow, its car sharing program, and invested in Scoop, a carpooling app. “Ultimately you’ll be able to summon your car anywhere … your car can get to you. I think that within two years, you’ll be able to summon your car from across the country” - Elon Musk, CEO, Tesla Motors
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$9.2B
Total investments and acquisitions in 47 deals in connected car companies in July 15’- June 16’
1M
Number of Autopilot miles Tesla collects every 10 hours
Automakers and ridesharing companies participate in a “race for the autonomous car”
Major automakers have been working on driverless technology for several years. However, it is not until this year that the race to fully autonomous vehicles has been on. Tesla released v7.0 of its OS in 2015 which included Autopilot, automated features for driving on highways. Since then they’ve been collecting massive amounts of data to teach their future OS about real-world driving. In March 2016, GM invested $1B (in cash and options) in Cruise, a startup that developed autonomous technology. They also announced it will partner with Lyft on autonomous taxis within a year. Toyota allocated $1B for an autonomous research center in Silicon Valley. Uber announced partnerships with FCA, Toyota and CarnegieMellon researchers over autonomous technology. Google, who’s been working on its driverless car for several years, partnered with FCA to manufacture the Chrysler Pacifica SUV with autonomous technology. The German car OEMs are not behind at all in the race and have all made investments and research in this field. Lastly, Volvo, who some consider to be the leader among the traditional car OEMs, announced that it will not be releasing its autonomous technology until it is perfectly safe for every day use.
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Digital Health
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“Doctors have always looked for new ways to gain insight into the subtle biological patterns that could help earlier diagnosis or intervention in disease. Our hope is that technology could unlock a new class of continuous, medical-grade information that makes it easier to understand these patterns and manage serious health conditions.� - Andy Conrad, Head of Life Sciences, Google X
AI is being applied to unlock value of genomics data
IBM Watson and Pathway Genomics announced an early release of a personalized health app, called Pathway Genomics OME, combining Watson’s cognitive computing capabilities with precision medicine and genetics information to give users a more personal, in-depth look at their health. The alpha version focuses on a wellness-based diet, exercise and metabolism report compiled from a user’s genetic test, health habits, and wearable and health tracker information from the likes of Apple HealthKit. Eventually, the companies plan to allow users to opt-in to include additional information, such as electronic health records and insurance information.
“Our belief is that in order to improve [patient] outcomes, which is what we are trying to do, you need to focus on the patient experience, the consumer experience, the physician experience. And in order to do this you have to make these solutions seamless, part of one’s lifestyle.” - Dave Rhew, Chief Medical Officer and Head of Healthcare & Fitness, Samsung Electronics America
Digital biomarkers may replace some clinical data to better understand health and disease As global adoption of digital devices (smartphones, wearables, IoT devices, etc.) becomes more prolific, the medical industry is gaining access to new consumer-generated physiological and behavioral measures - a digital biomarker. This new type of information allows doctors and healthcare providers to collect medically meaningful data in a cost-effective way. As patients become more comfortable sharing their behavioral data, and the industry proves that they can secure this information, the opportunity to revolutionize patient care becomes enormous.
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$2B
Venture funding in Digital Health in the U.S. for the first half of 2016
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Big Data
Data Governance
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“What if the company isn’t the world? The next step is what occurs when data sharing between companies happens as a matter of course, and we are in the midst of a shift in how companies collaborate (and compete) by more effectively sharing data with each other to create business value.” – Sandy Steier & Dennis Gleeson, 1010data
Net neutrality will remain, as the US broadband industry lost its lawsuit attempting to overturn the FCC’s requirements
The court’s decision supported the FCC in its declaration of broadband as a utility, and signals a shift to a view of broadband as a service that should be equally accessible to all Americans, rather than a luxury that does not need close government supervision. Classifying broadband as a utility also opens an easier path for other limits on broadband providers such as the FCC-proposed privacy rules that would limit the ability of companies like Verizon and AT&T to collect and share data about broadband subscribers.
Americans are increasingly abandoning home wired internet
For many Americans, 4G LTE and other wireless technologies are turning into viable substitutes for home broadband. As many as 1 in 5 U.S. households are now mobile-only, compared with 1 in 10 in 2013. The change has also been consistent across different income groups, with even highincome households much more likely today to have only mobile internet access than they were two years ago.
“Successful companies... should create a culture that expects decisions to be informed by data and that treats data as a first-class citizen. And they should invest in the data ecosystem, including tools for sharing and accessing data, and for ensuring data quality.” – Yael Garten, Director of Data Science, LinkedIn
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10B
Number of mobile devices that will be in use by 2020
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Work days that would be needed to read all of the privacy policies you encounter in a year
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AUGUST 2016
@Orange_SV www.orangesv.com