Top 10 Predictions by SMAES

Top 10 Predic-ons for the Internet of Things

Speaker: Carrie MacGillivray

Program Vice President Mobile Services Internet of Things (IoT)

Source: Calibri 8 pt.

Top 10 Predictions for the Internet of Things Carrie MacGillivray Vice President, Mobile Services & IoT

Impressions of IoT “…households connecting to the internet…”

“…digital information…”

“…a large collection bulk of info…” “…security…”

“…RFID…”

“…everything to do with the internet…”

“…collections of things…”

“…all communications”

“PROBLEMS”

“…connect to the cloud…”

N=401 Source: IDC’s Internet of Things Survey, January 2014 5

Impressions of IoT “…households connecting to the internet…”

“…RFID…”

“…digital information…”

“…a large collection bulk “…the of info…”

first thing “…collections of things…” that comes to “…security…” mind is that all objects/ things will be connected at “…everything “…all to do with the point to the some communications” internet…” Internet…” “PROBLEMS”

“…connect to the cloud…”

N=401 Source: IDC’s Internet of Things Survey, January 2014 6

Characterizing the Internet of Things   It’s a vastly expanded set of “things” connected to the existing Internet   It is not one business model but, in fact, is millions of models   It extends the machine-tomachine work to embrace a human world   Internet of Things will create disruption

IDC defines the Internet of Things as… “…A network of networks of uniquely identifiable end points (or things) that communicate without human interaction using IP connectivity - be it “locally” or globally…”

The IoT brings meaning to the concept of ubiquitous connectivity for businesses, governments, and consumers with its innate management, monitoring, and analytics. © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Defining the Internet of Things: Common segmentation •  Human IoT

•  Industrial IoT

•  Public Sector

•  Private Sector

A market in transformation"

In 2020" 30 Billion! Connected Things!

10" Billion" Units (+)"

1 Million! Units (+)!

Mainframes!

100+ Million"

Billion"

Units (+)"

Windowsâ&#x20AC;¨ PC Clients!

Mobile!

Cloud!

Internet of Things!

IoT transformation: Monetization of data…AND services Past

Today

Fragmented markets Function over data Isolated No security/ optional Security Services not included

Future Data drives function

Function and data

Interoperable

Connected

Scalable

Limited security

Security is fundamental to solution

Services as an add-on

Services integrated

IoT ecosystem open for all vendors

Security

Analytics/Social Business Platforms Device, Network & Application Enablement

Connectivity

Professional Services

Applications

Intelligent Systems

Prediction #1: IoT Partnerships Will Emerge Among Disparate Vendor Ecosystems   Partnering across IT vendors, service providers and semiconductor vendors – along with the continuing flood of “over the top” innovators/newcomers in the consumer world

Customer Systems Integration

Supplier Systems

HW Integration

Prediction #2: Leaps of Faith in 2014 Will Create End-to-End IoT Solutions   Connected devices platforms essential to differentiation and adoption of holistic solutions   Embedded systems players play lead role in 2014 driving partnerships, and time is of the essence   Startup and established platforms are targets for M&A or strategic partnerships

Prediction #3: Open Source-minded China Will Be a Key Player in the IoT

  China expects 100ZB of home sensor data by 2030 •  40-50 appliance/device sensors per home •  200TB of sensor data per home x 500 million homes in China = 100ZB

  The Chinese Academy of Sciences NICT Project •  NICT = New-generation ICT •  10-year collaboration (2012-2021) to prepare for country’s needs in 2020-2050. •  Developing an HPC-driven infrastructure to process ZB of data •  Developing a powerful single home sensor in place of 40-50 sensors •  Sample application: identify the top 100 green households in Beijing •  Will rely on open-source software such as DataMPI for sorting and page ranking

Prediction #4: “Plumbing” of the IoT Will Attract Significant Activity in 2014   IP-enabled sensors and IoT Hubs with specialized IoT processors at the network edge   Wide range of connectivity technologies •  6LowPAN, Bluetooth, Zigbee for sensors •  Wi-Fi , Cellular, Bluetooth combo chips for hubs •  Potential beneficiaries: Qualcomm, Intel, Broadcom, Marvell, Freescale, Microchip among others

  Network infrastructure upgrades •  •

Switches, routers, variety of IoT gateways, firewalls, intrusion detection and prevention appliances Potential beneficiaries: Cisco, Intel, AMD, Freescale, LSI/Avago, Broadcom, Cavium, Marvell among others

Prediction #5: IoT Will Come to Healthcare in 2014   Combining mobile, social and remote monitoring capabilities there will be a proliferation of consumer data across diverse data sources

IoT

Big M2M Dat Analytics a

  IoT data flows will result in a data explosion and increase demands on back-end systems   Heterogeneous data will require data and information governance, consistent consumer identification information, health information exchange, master data management, and data quality tools   Over the next 5–10 years, many of the impediments to a broader use of connected health technology will be addressed © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Prediction #6: Mobility Software Vendors Will Continue to Show a Lack of Interest in IoT •  Leading software mobility vendors in device, app, security and content management show limited interest in IoT   Mobile app development platform vendors, with some exception, are still focused on typical B2C/B2B enterprise apps   They don’t see a clear market opportunity yet? Do they get better profits targeting IT consumerization in enterprises?   Some vendors highlight lack of standardization in IoT as major obstacle 

Will this change when vendors shift towards cloud platforms, open standards and 3rd party app development tools?

Applications Business Analytics Vertical Application Development Application Management Platform

Horizontal Application Development Device Management Platform

Connectivity

Intelligent Systems

Prediction #7: WW “Smart City” Spending on the IoT Will Be $265B in 2014   Government is one of the leading industries in IoT growth rates; CAGR of 10.6% from 2013 to 2017 and representing 16% of the total market   City spending will be 29% of this spending in 2014 and growing at an 11% CAGR through 2017   Value derived in areas like defense and public safety, environmental and disaster monitoring/ detection, energy efficiency and transportation © IDC Visit us at IDC.com and follow us on Twitter: @IDC

Prediction #8: IoT Security Is a Hot Topic, But There Will Be No Heat Until There Is a Fire   Little movement on standards, security controls, or regulations   Many industries, but little coordination amongst silos.   Even where need is most acute (e.g., Industrial Control Systems), public utilities will wait for safety-endangering events   IDC estimates market at $150M-$200M, but growth affected by:   Embedded vs. discrete protection   Varying vertical requirements (utilities, petro/chem, healthcare, transportation),   Customers organizational issues (IT vs. Industrial Operations)   Lack of consumer privacy concerns (wearable tech, automotive, healthcare)

Prediction #9: Professional Services Will Open Up the IoT Competitive Landscape   Connectivity and devices vendors will continue to dominate the competitive landscape in 2014, but focus on business transformation will attract new players.   Growing market maturity, vendor push and buyers’ growing interest will combine to open up the competitive landscape beyond the “usual suspects”   Connectivity–centric companies will find it tougher in 2014 as new vendors announce their IoT-related offerings

Prediction #10: Big Data Will Drive Value Creation from IoT   Service providers will embrace massive data sets generated by the IoT in 2014 by trialing big data analytics engines

  IoT with analytics results in virtuous circle of data generation and value creation   New services offers to B2B and B2B2C evolve toward Big Data analytics as a service   Value increases further with people-driven context (information, insights) within the broader Internet

Closing thoughts   To date, IoT has been supply driven, but enterprise awareness and willingness to invest is becoming reality   IoT will drive partnerships between industrial IT and traditional IT suppliers •  Opportunity to create a new set of IT leaders, through open standards

  IoT is disruptive innovation not sustaining innovation 23

Contact Me @

Carrie MacGillivray IDC Vice President Mobile Services & IoT cmacgillivray@idc.com @CMacIDC