IoT Now Magazine - Dec 2016 / Jan 2017 by Prestige Media

IoT Now: ISSN 2397-2793

in r u fo yo a e lon se ce ar B

DECEMBER 2016/JANUARY 2017 • VOLUME 6 • ISSUE 5

TALKING HEADS Be secure from the edge to the core for the lifetime of an IoT project, says Gemalto

SECURE IoT Are the key elements in place to address IoT vulnerabilities?

TRANSPORT

INDUSTRIAL IoT

SMART ENERGY

SECURE IoT

IoT GLOBAL NETWORK

Connections for a moving industry. See our Analyst Report at www.iot-now.com

The new interconnected manufacturing environment. See our Analyst Report at www.iot-now.com

New efficiency for living, working and playing. See our Analyst Report at www.iot-now.com

How to address the growing threat. Read our exclusive Analyst Report inside this issue

Log on at www.iotglobalnetwork.com to discover our new portal for products, services and insight

PLUS: 8-PAGE SECURE IoT INSIGHT REPORT: What is IoT's augmented reality? • Why retroﬁtting provides an opportunity to compete with OEMs • Inside enterprises' IoT ownership battles • What's the business value of cloudbased hyperconnectivity? • Why secure IoT must address both devices and the back end • News at www.iot-now.com

Yo ou w wouldn’t buy a car one partt at a time, wo ould you?

S why buy your IoT solution piece So e by piece?

Secu ure, global platform m that’s carrier and d technology-agno ostic •

Ve ertical Applications

•

Billing & Rating Plan Manage ement

•

IoT T Analytics

•

Access Network

•

Ap pplication Enablement

•

IoT Marrketplace

•

Co onnectivity Management

On ne IoT Platform. Endless Possibilities. Contact uss at Info@aeris.net ZZZ DHULV FRP _ 1RUWK $PHULFD _ (XURSH _ $VLD 3DFL¿F

CONTENTS

TALKING HEADS

IoT Now Analyst Report

AUGMENTED REALITY

IN THIS ISSUE 4

EDITOR’S COMMENT Chip advances are speeding us to the age acceleration, writes George Malim

SMART CITIES 24

RETROFITTING George Malim assesses the prospects for companies that retrofit IoT technology to equipment

IoT NOW INSIGHT REPORT – SECURE IoT In the latest of an ongoing series of speciallycommissioned, independent, analyst-written Insight Reports, Saverio Romeo and Dr Therese Cory of Beecham Reseach explore the need for common guidelines and context-awareness in IoT security.

COMPANY NEWS Qualcomm prepares for US$47bn NXP purchase; Silicon Labs acquires Micrium

MARKET NEWS Sequans and Gemalto partner for Cat M1 technology; Reliance and Jasper launch IoT services in India

INTERVIEW Nokia’s Jason Collins tells Michele Mackenzie about the company’s approach to IoT

PRODUCT NEWS Sierra Wireless releases FX30 programmable gateway; Huawei and Janz CE test NB-IoT electricity meter

SMART CITIES Alison Vincent explains how IoT is creating cities that are truly smart

THE CONTRACT HOT LIST A round-up of the latest Internet of Things contracts, plus Opinion: Stay on top and learn new IoT technologies

SECURITY Dr Mihai Voicu says security must be achieved at devices and the back end

WHAT’S HOT ONLINE What are people reading on www.iot-now.com? And on p11 see what’s popular on www.iotglobalnetwork.com

IoT CHALLENGES Jeremy Cowan reports from M2M Summit 2016

PEOPLE NEWS New CEO appointed for Ericsson, Hunter joins Walkbase, Secucloud hires new COO, Jeff Liebl to become IoT group president at Anaren

INTERVIEW Bob Emmerson talks to Eurotech’s Roberto Siagri about enabling more effective operational technology

TALKING HEADS Analysys Mason’s Michele MacKenzie talks to Gemalto’s Andreas Haegele about the IoT security challenge

HYPERCONNECTIVITY Stephen Chadwick examines the business value of hyperconnectivity

AUGMENTED REALITY Peter Dykes finds things are not what they seem with artificially generated realities

INTERVIEW Analysys Mason gets down to detail with SAP’s IoT strategy

EVENT PREVIEW The key features of Mobile World Congress 2017

FRAUD Carlos Marques advocates a unified approach to fraud management

EVENTS Never miss another important IoT event

INTERVIEW Beecham Research’s Saverio Romeo interviews PTC’s Rob Black to learn how to secure the IoT through bestpractice based design INTERVIEW Christopher Taylor explores LTE chipsets with Eran Eshed

Cover Sponsor: Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security, with 2015 annual revenues of €3.1 billion and customers in over 180 countries. We bring trust to an increasingly connected world. Our technologies and services enable businesses and governments to authenticate identities and protect data so they stay safe and enable services in personal devices, connected objects, the cloud and in between. Gemalto’s solutions are at the heart of modern life, from payment to enterprise security and the internet of things. We authenticate people, transactions and objects, encrypt data and create value for software – enabling our clients to deliver secure digital services for billions of individuals and things. Our 14,000+ employees operate out of 118 offices, 45 personalisation and data centres, and 27 research and software development centres located in 49 countries. For more information visit www.Gemalto.com IoT Now - December 2016 / January 2017

COMMENT

Chip innovation speeds us to the steampunk age We’re now firmly in an age of acceleration in which trade, manufacture, development and domestic life are all conducted with greater efficiency – and at a faster pace. IoT is increasingly, along with artificial intelligence, big data and augmented reality, becoming a mainstream subject as a constituent part of this acceleration This has been borne out in the latest book – Thank You For Being Late, An Optimist’s Guide to Thriving in the Age of Accelerations – by US Journalist Thomas Friedman in which he expands on the theme of technologies and globalisation coming together to radically accelerate the pace of modern living. Friedman is right to highlight the current thirst for speed but he also contrasts the accelerated development of microchips, which are the enabler of accelerative technologies, with the slower pace of development in other sectors.

environmental impact, knows how to park itself, how to book itself in for maintenance and how to protect its occupants from injury. However, all that micro chip technology is still wrapped around a power unit that a Victorian engineer would recognise. This development gap will only widen as our world of solutions continues to integrate advanced electronics with archaic mechanical devices. The huge advances achieved by the acceleration Friedman describes are ushering in a world that will increasingly be populated by machines that resemble steampunk-style fantasies of a post apocalyptic future. Ships that would be recognisable to ancient Egyptians will roam the oceans uncrewed, taking cargo from port A to port B without human interaction, enabled by advances in microchip technology.

A great example he provides is that if cars had developed as fast and as far as microchips over the last 50 years, the VW Beetle would by now be able to travel at 300,000mph, have fuel economy of two million miles per gallon and would cost about 3 cents to buy. This presents a problem, not just for the automotive industry but for many other sectors. If processing power continues to accelerate in line with Moore’s Law, the technologies it enables will somehow have to be integrated with technologies originated in far slower-moving industries.

Perhaps we should slow down for a minute and consider how we can accelerate development of other technologies to let them catch up with microchip development, rather than using microchip capabilities to mask their obsolescence.

Inconsistencies we now see as normal will continue to become more pronounced. For instance, today a two ton lump of metal that burns fossil fuels that have been laboriously extracted from the ground at great cost and

EDITORIAL ADVISORS

Olivier Beaujard, vice-president Market Development, Sierra Wireless

Erik Brenneis, Vodafone

Robin DukeWoolley, CEO, Beecham Research

Andrew Parker, project marketing director, Connected Living, GSMA

Enjoy the magazine! Gert Pauwels, M2M marketing director, Orange Business

George Malim

Contributors in this issue of IoT Now We are always proud to bring you the best writers and commentators in M2M and IoT. In this issue they include: Dr. Therese Cory senior analyst at Beecham Research

MANAGING EDITOR George Malim Tel: +44 (0) 1225 319566 g.malim@wkm-global.com EDITORIAL DIRECTOR & PUBLISHER Jeremy Cowan Tel: +44 (0) 1420 588638 j.cowan@wkm-global.com DIGITAL SERVICES DIRECTOR Nathalie Millar Tel: +44 (0) 1732 808690 n.millarr@wkm-global.com

Saverio Romeo principal analyst at Beecham Research

BUSINESS DEVELOPMENT DIRECTOR Cherisse Jameson Tel: +44 (0) 1732 807410 c.jameson@wkm-global.com

PUBLISHED BY WeKnow Media Ltd. Suite 138, 70 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU, UK Tel: +44 (0) 1732 807411

DIRECTOR OF STRATEGIC PLANNING Charlie Bisnar Tel: +44 (0) 1732 807411 c.bisnar@wkm-global.com

DISTRIBUTION UK Postings Ltd Tel: +44 (0) 8456 444137

Aileen Smith, head of Ecosystem Development, Huawei Technologies

David Taylor, managing director, M2M, Telefónica UK

DESIGN Jason Appleby Ark Design Consultancy Ltd Tel: +44 (0) 1787 881623

IoT Now is distributed free to selected named individuals worldwide who meet the Publisher's terms of Circulation Control. If you would like to apply for a regular free copy supplied at the Publisher's discretion visit www.iot-now.com If you do not qualify for a free subscription, paid subscriptions can be obtained. Subscriptions for 5 issues per year cost £125.00 worldwide (or US$210 / €160) including post and packing.

Robert Brunbäck, CMO, Telenor Connexion

Bob Emmerson Telecoms and IT writer

Bill Zujewski, SVP, IoT Marketing & Strategy, PTC

IoT Now - December 2016 / January 2017

COMPANY NEWS

Qualcomm focuses on IoT as it agrees to buy chipset maker NXP Semiconductors for US$47bn

Steve Mollenkopf, Qualcomm

Qualcomm and NXP Semiconductors have announced a definitive agreement, unanimously approved by the boards of directors of both companies, under which Qualcomm will acquire NXP for a share price valuing NXP at US$47 billion.

Under the agreement, writes Jeremy Cowan, a subsidiary of Qualcomm will start a tender offer to acquire all of the issued and outstanding common shares of NXP for $110.00 per share in cash, representing a total enterprise value of approximately $47 billion. NXP is an established manufacturer of high-performance, mixed-signal semiconductor electronics, in automotive, broad-based microcontrollers, secure identification, network processing and RF power. NXP also claims leading positions in automotive infotainment, networking and safety systems, with solutions designed into 14 of the top 15 infotainment customers in 2016. NXP has a broad customer base, serving more than 25,000 customers through its direct sales channel and NXP has a

broad customer base, serving more than 25,000 customers through its direct sales channel and global network of distribution channel partners. “With innovation and invention at our core, Qualcomm has played a critical role in driving the evolution of the mobile industry. The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale,” said Steve Mollenkopf, the chief executive of Qualcomm. “By joining Qualcomm’s leading SoC (System on Chip) capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT, we will be even better positioned to empower customers and consumers to realise all the benefits of the intelligently connected world.” The combined company is expected to have annual revenues of more than $30 billion, serviceable addressable markets of $138 billion in 2020 and leadership positions across mobile, automotive, IoT, security, RF and networking.

Silicon Labs acquires Micrium to gain complete embedded solution for the IoT Silicon Labs has acquired Micrium, a supplier of real-time operating system (RTOS) software for the Internet of Things (IoT). Financial terms have not yet been disclosed. This strategic acquisition helps simplify IoT design for all developers by combining a leading, commercialgrade embedded RTOS with Silicon Labs’ IoT expertise and solutions. Micrium’s RTOS and software tools will continue to be available to all silicon partners worldwide, giving customers a wide range of options, even when using non-Silicon Labs hardware. Micrium will continue to fully support existing as well as new customers. Founded in 1999, Micrium has consistently held a leadership position in embedded software components. The company’s flagship µC/OS RTOS family is recognised for reliability, performance, dependability, impeccable source code and

IoT Now - December 2016 / January 2017

extensive documentation. Micrium’s widely deployed RTOS software has been ported to more than 50 microcontroller architectures and has a global footprint with more than 250,000 downloads across all embedded vertical markets, with solutions certified to meet safetycritical standards for medical electronics, avionics, communications, consumer electronics and industrial control. “By combining forces with Silicon Labs, the Micrium team will drive advances in embedded connectivity for the IoT while giving customers a flexible choice of hardware platforms, wireless stacks and development tools based on the industry’s foremost embedded RTOS,” said Jean Labrosse, the founder, chief executive and president of Micrium. “We will continue to provide our customers with an exceptional level of support, which is a Micrium hallmark.”

NEWS IN BRIEF PTC and Hewlett Packard Enterprise to collaborate on industrial IoT solutions PTC and Hewlett Packard Enterprise (HPE) have announced a collaboration to facilitate the availability of converged IoT solutions, based on PTC ThingWorx software and HPE Edgeline Systems. The planned collaboration will focus on industrial use cases, incorporating PTC’s ThingWorx IoT platform technologies and HPE’s hardware and data services. It is expected to result in the availability of a pre-tested best-in-class hardware and software combination that will enable customers to solve IoT data management problems and make decisions from sensor data more effectively. PTC and HPE plan to demonstrate complete hardware and software technologies specifically designed for IoT edge computing and smart, connected solutions. This includes sensors, edge compute, real-time edge analytics, machine learning, and augmented reality. “Companies working together to solve industry challenges is the fastest way to accelerate IoT innovation and bring about meaningful business value,” said Andrew Timm, the chief technology officer at PTC. “Our work to date with HPE demonstrates what is possible when two leading IoT companies come together with a mutual goal of addressing some of the IoT’s foremost challenges and creating new IoT solutions.”

Schréder signs smart city partnership with Panasonic Schréder a global provider of LED lighting solutions, has announced a partnership with Panasonic to co-develop solutions that will accelerate the transformation into smart cities. The two companies will share their expertise and knowledge to develop digital solutions and transform existing lighting infrastructure into an integrated smart city platform. Schréder’s LED technology and control systems are designed to help towns and cities manage lighting networks in a more efficient and effective way. In 2015 Schréder launched the Shuffle by Schréder, an interactive lighting column combining state-of-the-art LED technology with multiple connected services including cameras, speakers, internet connectivity and a range of charging applications. The new partnership agreement will see Schréder integrating sensors, cameras, and software applications from Panasonic into its luminaires.

MARKET NEWS

NEWS IN BRIEF Reliance and Cisco Jasper launch IoT services throughout India Reliance Group has formed a strategic partnership with Cisco Jasper for the launch of a new venture, UNLIMIT. This is solely dedicated to providing Internet of Things (IoT) services to enterprise customers throughout India. UNLIMIT is equipped with the diverse resources of the Reliance Group, the nimbleness of a start-up, high-profile partnerships, and an international management team, and will tap into the growing potential of the IoT market in the country. Customers will be able to take advantage of the Unlimit Control Center, which is based on the IoT connectivity management platform of Cisco Jasper, and includes Reliance’s powerful mobile network. With Unlimit, Reliance becomes the first telecommunications services provider in the country to set up a dedicated IoT business unit committed to helping its Corporate customers achieve their goals.

ESMIG, GSMA and SIMalliance want embedded SIM spec adopted by utilities The GSMA, with partners SIMalliance and ESMIG, have published a new report written by analyst house Beecham Research highlighting the importance of the GSMA Embedded SIM Specification and eUICC to the future of the utilities sector. More than 20 global mobile operators worldwide have already launched commercial solutions using the specification including the automotive sector. The in-depth report aims to encourage utility companies to explore how the GSMA Embedded SIM Specification and eUICC can deliver numerous benefits to different industry use cases such as smart metering, demand response, energy data management and distributed energy resource management. The GSMA’s Embedded SIM Specification is said to provide a single, de facto standard mechanism for the remote provisioning and management of machine-to-machine (M2M) connections, allowing “over the air” provisioning of an initial operator subscription, and the subsequent change of subscription from one operator to another. The eUICC refers to a new type of SIM card that has a significantly smaller form factor than a standard removable SIM and can be built into a device at the point of manufacture, and which can then be remotely provisioned with connectivity over the air after installation.

Sequans and Gemalto to revolutionise IoT connectivity with LTE Cat M1 technology Digital security provider, Gemalto is partnering with LTE chipmaker Sequans Communications with the aim of revolutionising Internet of Things (IoT) Georges Karam, connectivity with LTESequans M technology, Communications according to the partners. The companies demonstrated what they claim to be the first Cat M1 IoT solution based on Sequans’ Cat M1 chip at GSMA Mobility Live! in Atlanta, USA in November. The system significantly improves power saving capabilities to extend the lifespan of IoT devices while boosting performance in indoor environments. It is said to be ideal for low bandwidth IoT use cases including alarm systems, asset trackers, smart meters, smart city controllers, wearables and industrial sensors. New

low-power, wide-area (LPWA) network technologies like LTE-M will give network operators the opportunity to generate significant revenues from the billions of connected things. The LTE-M demonstration usges a Gemalto wireless module that uses dedicated Cat M1 technology based on Sequans’ Monarch chip to enable a new level of low power, low bandwidth IoT connectivity. The module connects to Ericsson’s RBS6000 Multi-Standard base station updated with Cat M1 software. “Gemalto is the ideal partner to deliver evolving IoT-optimised LTE solutions enhanced by digital security expertise,” said Georges Karam, Sequans’ CEO. “Our successful Gemalto-Sequans partnership has led to major first to market LTE innovations that combine our respective key capabilities and offer customers distinct competitive advantages not available elsewhere.”

Vodafone and PTC announce development of new Vodafone Internet of Things application PTC and Vodafone Group has announced that PTC’s ThingWorx application enablement platform has been chosen by the operator to help in the development of new Vodafone Internet of Things (IoT) applications. PTC’s platform includes rapid application enablement functionality, device management, machine learning capabilities, and augmented reality.

complete platform that companies like Vodafone require to develop new and innovative applications or offerings that will support and strengthen their businesses,” said John Stuart, divisional vice president, global IoT sales and partners, PTC. “This collaboration further validates PTC’s approach to the IoT space, and we look forward to working with Vodafone to create new IoT services.”

Vodafone provides managed IoT connectivity services and offers endto-end capabilities for a variety of sectors including automotive, insurance and manufacturing. PTC is a globally recognised leader in IoT application enablement and software management. The ThingWorx platform will allow Vodafone to rapidly develop new IoT applications and services.

Ivo Rook, the IoT director at Vodafone, added: “Vodafone has a rich portfolio of IoT services and we share APIs with our customers and their development teams for cocreation. We believe that by combining these services with ThingWorx and our wider partner ecosystem we can rapidly develop new Vodafone IoT capabilities to maintain our leadership position and make it easier for our customers to benefit from the wider opportunities of IoT.”

“PTC’s IoT strategy is predicated on providing the most efficient and

IoT Now - December 2016 / January 2017

PRODUCT NEWS Sierra Wireless launches FX30 programmable and rugged IoT gateway Sierra Wireless has announced the availability of the FX30, which it claims is the industry’s smallest, most flexible and rugged programmable cellular gateway. The gateway provides a pre-certified, integrated embedded platform to connect any machine to any IoT application or cloud, enabling fast, scalable and global deployment of IoT solutions, the company says. The Internet of Things is transforming organisations across all industries worldwide, enabling enhanced productivity and customer service. However, connecting many “things” can be complex, expensive and time consuming. The FX30 has been designed to address the complexity, expense and time demands of connecting the many things of IoT. The gateway supports Legato open source Linux-based programmability and 2G, 3G and LTE connectivity to manage any type of machine, including industrial equipment, infrastructure, building automation systems, laboratory and medical equipment, automation systems, construction equipment, commercial appliances, and portable and renewable energy systems.

Entire fleets of FX30s can be monitored, managed and controlled remotely through Sierra Wireless’ AirVantage Cloud Services. “The FX30 provides a flexible, secure platform to connect machines to the Internet of Things, enabling companies to offer new, value-added services for their customers,” said Jason Krause, senior vice president and general manager, Enterprise Solutions for Sierra Wireless. “For example, equipment manufacturers can quickly add IoT connectivity to any solution and deploy custom applications to monitor machine performance at the edge, sending data and alerts to any remote service application.”

The Sierra Wireless FX30 IoT gateway

Huawei and Janz CE test smart NB-IoT electricity meter The first electrical energy smart meter, using 4.5G NB-IoT communication technology, has been successfully tested, say Huawei and Janz CE. The project will be demonstrated by the end of 2016 at the Parque das Nações in Lisbon, Portugal as part of the Horizon 2020 UPGRID project. Huawei and Janz CE have designed and manufactured the new meter, using modules from u-blox, and EDP Distribuição and NOS. NOS deployed the entire 4.5G NB-loT network based on

Huawei infrastructure that supports the project, making it the first operator in Portugal and one of the first in the world to use the standardised version of this technology. This deployment aims to implement new market focused Smart Grid services using the latest generation (4.5G) communications networks, answering Horizon 2020 programme challenges set by the European Union through the UPGRID project.

NXP introduces modular IoT gateway solution for LNNs NXP Semiconductors has unveiled its Modular IoT Gateway for large node networks (LNNs) with pre-integrated, tested and RF certified support for a wide array of wireless communications protocols including Thread, ZigBee and Wi-Fi. This range of capability allows developers to easily build out gateways based on this solution, using their choice of wireless protocols for end-to-end wireless communications in LNN configurations with supporting cloud options such as Amazon Web Services (AWS).

thousands of end nodes. Built on a fullysupported, open source Linux platform running on the latest i.MX processors, the robust Modular IoT Gateway addresses this demand by connecting Thread and ZigBeebased end node devices securely with the cloud through Wi-Fi or Ethernet. In addition, local intelligence enables time critical responses and operation even when cloud connectivity is not available.

Operators of smart commercial buildings and smart industrial environments deploying massive mesh networks need to be able to commission, control and monitor

The NXP Modular IoT Gateway for LNNs

IoT Now - December 2016 / January 2017

NEWS IN BRIEF Advantech launches new Intel chip embedded platforms for IoT Advantech has unveiled its new comprehensive range of embedded computing platforms with the latest Intel Atom Processor E3900 series, Intel Celeron Processor N3350 and Intel Pentium Processor N4200 – formerly Apollo Lake. These platforms are comprised of Computer On Modules SOM-3569, SOM-6869, and SOM-7569, Embedded Single Board Computers MIO-2360, MIO-5350, PCM-9366, and PCM-9563, and an Industrial Motherboard AIMB-217; as well as Intelligent Systems UTX3117, ARK-1124 and ARK-2231R. With the latest Intel Atom/Celeron /Pentium processors and Advantech’s exclusive WISE-PaaS integrated IoT platform software services, these Advantech Embedded products are claimed to bring efficiency, security and connectivity to embedded computing with essential features that balance cost, performance and power; making them ideal for IoT, retail, industrial automation, digital surveillance, medical and more.

Alpiq deploys IoT platform by DigitalRoute Alpiq, a Swiss electricity and energy services provider with a European footprint has selected DigitalRoute’s IoT Platform. Digital Route, the provider of data management solutions globally, will help Alpiq to drive the digitisation of its business. A central aspect of Alpiq’s digital strategy is to develop, promote and market business models that require automated and highly developed smart technologies. Doing this requires taking control of asset data from across all the company’s portfolios and consolidating it into one enterprise wide IoT platform, on top of which smart applications based on artificial intelligence for smart grid management, trading and demand side management can be utilised. DigitalRoute was chosen by Alpiq because of its software and its expertise in data management, proven and industrialised to support mission critical services in multiple verticals over 16 years.

THE CONTRACT HOT LIST IoT Now November/December 2016 It's free to be included in The Contract Hot List, which shows the companies announcing recent contract wins, acquisitions or deployments. Email your contract details to us now, marked "Hot List" at <j.cowan@wkm-global.com> Vendor/Partners

Client, Country

Product / Service (Duration & Value)

Awarded

AT&T

Farmer’s Fridge, USA

Deployment of AT&T IoT connectivity to power smart fridges at healthy food take-away chain

10.16

Blackberry

Ford, global

Deal agreed for expanded use of Blackberry’s QNX and security software

11.16

DigitalRoute

Alpiq, Europe

DigitalRoute IoT Platform chosen by Swiss electricity and energy services provider to drive digitisation of its business

11.16

Gemalto

PSA Group, global

Gemalto selected to equip PSA vehicles at the factory with LinqUs On-Demand Connectivity system

10.16

Gemalto

Alibaba Group, China

Collaboration with Alibaba Group to provide security for its YunOS operating system

10.16

Homeserve

Aviva, UK

UK home assistance provider strengthens partnership with insurer Aviva which is offering LeakBot connected leak monitor to customers

10.16

Ingenu and Vula Telematix

Drakenstein Municipality, South Africa

Companies partner to roll-out network to support energy services in Paarl, Cape Town region delivered by Drakenstein Municipality

09.16

Iridium

Komatsu, global

Long-term deal agreed for plant maker to utilise Iridium network for global telematics services

10.16

MDS

eir Business, Ireland

Irish telecoms operator eir Business launches IoT Connect offering using MDS customer management platform

11.16

Microsoft

RAC, UK

Microsoft selected to deliver next generation of telematics-based systems for UK motoring organisation

11.16

Nokia

Sonera, Finland

Trial of NB-IoT technology on Sonera’s commercial 4G network

11.16

Orange Business Services

Tractive, Austria

Deal to provide IoT connectivity for Tractive’s pet wearables and tracking devices

10.16

PodsystemM2M

Trileuco, global

Inclusion of PodsystemM2M connectivity in Trileuco’s Tracktherace extreme adventure platform

11.16

PTC

Vodafone Group, global

PTC Thingworx Application Enablement Platform (AEP) chosen to help drive development of new Vodafone IoT apps

11.16

PTC

Etisalat Digital, UAE

Partnership agreed with Etisalat Digital to bring PTC Thingworx IoT platform to the Middle East region

Semtech

Pervasive Nation, Ireland

Semtech LoRa technology chosen to enable Ireland’s nationwide IoT network

Tele2

Northstar, global

Tele2 Product Cloud offering used to enable Northstar to sell new Advanced Connected Energy (ACE) battery proposition to customers, enabling power back-up and secure remote services

11.16

Telefónica

Wind Hellas, Greece

Greek mobile operator selects Telefónica to provide IoT solutions

10.16

Telefónica Business Solutions

Nestlé, global

Telefónica chosen to be the worldwide IoT connectivity provider for Nestlé Professional Coffee Solutions

11.16

u-blox

Nikken Lease, global

Positioning and cellular technologies from u-blox to be deployed in new Nikken Lease trackable pallets, called Transeeker

10.16

u-blox

Baoruh Electric, Taiwan

u-blox modules selected to deliver accurate positioning across Wi-Fi, Bluetooth and 4G with 3G fallback connections for smart bus system

11.16

Vodafone

Inmarsat, global

Vodafone enters roaming agreement with satellite provider with aim to enable international cellular and satellite roaming connectivity for IoT

10.16

Vodafone

Yamaha, Europe

Vodafone to provide embedded telematics system for new Yamaha TMAX SX scooters, the company’s first connected scooters

11.16

SPONSORED COLUMN

Staying on top of and learning new IoT technologies is critical to stay competitive Whether you are creating a prototype or have an IoT application in production, gaining insights, expertise and resources are key to successful IoT deployments, writes Jack Indekeu For many companies, IoT is a cornerstone of their business strategies and requires that they learn and master new technologies at a rapid ongoing pace. Telit’s IoT Innovation event is a great opportunity to discover new technologies that support IoT solution development and learn from real IoT business use cases and best practices. Jack Indekeu, is the chief marketing officer of Telit

The event is designed to help anyone looking to capitalise on IoT opportunities and is a full day, multi-track conference that provides insight into accelerating time to market and igniting business transformation centred on IoT solutions. It attracts business leaders, executives, engineers and developers that are decision makers from across the IoT ecosystem. It is a great opportunity to network with others and gain meaningful insights. Telit IoT Innovation includes insightful keynotes and several breakout sessions organised

under two tracks: Smart Solutions and Tools, Technologies and Resources. The Smart Solutions track will allow attendees to learn from others who have utilised Telit’s IoT ecosystem to create value for their organisation and their customers, while the Tools, Technologies and Resources track will provide the necessary tools and resources to help shorten development cycles and launch new applications. Telit IoT Innovation returns to the Greater Ft. Lauderdale/Broward County Convention Center in Fort Lauderdale on 7 February , 2017. This is the fifth annual Telit conference collocated with IoT Evolution Expo which runs from 7-10 February, 2017. To view the Telit IoT Innovation agenda and learn more about the event, visit http://www.iotevolutionexpo.com/east/telitiot-inovation.aspx. IoT Now - December 2016 / January 2017

WHAT’S HOT ONLINE

www.iot-now.com Why is Samsung buying auto components supplier Harman? There are no Greeks hiding in the wooden horse of Harman writes Dr Richard Windsor, founder of Radio Free Mobile. Samsung’s acquisition of Harman is about increasing its penetration of the automobile rather than offering a sneaky challenge to the car industry. Samsung has announced that it will acquire 100% of Harman International Industries for KRW9.3 billion (US$8.02 billion) in cash with the deal expected to close in Q3 2017. Harman is a well-known Tier 1 automotive components supplier with 65% of its $7 billion in revenues coming from the automotive industry. Its particular area of strength is in audio, electronics and infotainment systems which are already present in 30 million vehicles worldwide. I see this deal benefiting Samsung in two ways.

First – Verticalisation. Samsung will have more internal demand for its components as well as a large, new in-house customer for its foundry, Samsung LSI. Furthermore, there will be an opportunity for improved integration between hardware and software which should improve the performance of Harman’s products. Second – Customer access. Harman has strong relationships with almost every car maker which will give Samsung an avenue through which to sell its other products such as semiconductors and displays to the automotive industry. To read all of Richard’s blog, visit: www.iot-now.com and search for: Windsor

Driverless lorries on our motorways? That sounds a bit DAF They call it platooning, but I can think of another word for lorries that act like trains, says Nick Booth.

Nick Booth

Driverless lorries: now there’s an idea to strike fear into everyone, whether you’re on four wheels, two wheels or two feet on the footpath. It seems that now lorries can be driverless, they can gang up on us too.

What fresh horrors could these Teamsters inflict on society now they’re powered by the IoT? Chip maker NXP and its

truck making partner DAF invited us to Munich to see these lorries in action. Thanks to the invention of Clara Otero, NXP’s director of systems innovaton, intelligent lorries can daisy chain themselves into a ‘train’ of up to seven huge articulated vehicles. If that wasn’t bad enough, they are capable of such tight co-ordination that they can travel practically bumper to bumper at up to 60 mph (96 km/h). To read the rest of Nick’s blog, visit www.iot-now.com and search: Nick Booth

Life Lessons: Dr Peter Harrop Our series of executive interviews – Life Lessons – continues with a quickfire Q&A with Dr Peter Harrop, the chairman of IDTechEx, which provides independent market research, business intelligence and advice on emerging technologies.

To read Peter’s Life Lessons in full, visit: www.iot-now.com and search for: Harrop

Companies must counter DDoS attacks via webcams and routers with a strategic approach After the biggest DDoS attack of all time was reported in late September, cyber-criminals wasted no time in mounting their next operation. Less than a month later, a further broad-based attack crashed major online services including Twitter, Spotify, Netflix and PayPal. Dennis Monner

As before, a large number of smart devices connected via the Internet of Things (IoT) were hijacked to mount the attack. They included everything from video recorders to home-based routers and manipulated webcams. These crimes are becoming more and more frequent, demonstrating that cyber-criminals have

IoT Now - December 2016 / January 2017

understood that the huge number of smart devices has the potential to cause major damage. After all, most connected devices are almost (or even completely) unprotected. This is why companies and individuals need to rethink the way they protect their devices. They need a strategic approach that starts from the internet itself – not the device, says Dennis Monner, the CEO of Germany-based security specialist Secucloud. To learn more about strategies to counter DDoS attacks, read Dennis’s article by visiting www.iot-now.com and searching: Monner

PEOPLE NEWS

Finland’s Walkbase taps mobile proximity executive Kevin Hunter to lead US expansion Walkbase, a venue IoT analytics and marketing platform company, has announced its expansion into the US market, appointing Kevin Hunter as its president of the Americas. Prior to joining Walkbase, Hunter served as president of inMarket Media where he was responsible for the corporate growth strategy into new verticals. Before that, he co-founded and was COO of Gimbal, guiding the company from its incubation within Qualcomm Labs through to its spin-off as a private entity from Qualcomm Retail Solutions. In addition, he is co-inventor of 23 US patents in mobile, location and proximity technologies. “Walkbase is leading the way with their innovative and highly differentiated venue IoT analytics platform that is unlike any other currently available in the marketplace, and I am excited to join the team and deliver a solution to the industry’s demand for greater digital-style insights in their physical locations,” said Hunter.

Aspect Software appoints senior director to drive growth of digital identity division Aspect Software, a provider of integrated consumer engagement, workforce optimisation and self-service solutions, has appointed Maxine Allard to the role of senior Maxine Allard director, Digital Identity, Europe and Africa. As part of an expansion of the company’s digital identity division, Allard’s appointment comes ahead of an aggressive strategy to drive sales of Aspect Verify, focusing initially on the UK and Africa.

Bringing 20 years of relevant industry experience to her new role, Allard, who originally joined Aspect in 2015, will work alongside Keiron Dalton, senior director of Customer Strategy and Innovation, leading a team that includes a newly-extended development lab based in Europe. As well as leading sales and building technology partnerships, Allard will work with mobile network operators and appropriate professional organisations in the pursuit of new opportunities.

Anaren appoints Jeff Liebl as IoT group president Anaren has announced that it has named Jeff Liebl as president of the company’s Internet of Things (IoT) Group, effective November 1, 2016. The position is new within Anaren’s organisational structure to leverage the rapidly increasing growth in the IoT sector. Larry Sala, Anaren President and CEO stated, “Jeff’s extensive experience in the IoT market makes him an ideal candidate for this new role. The Internet of Things is rapidly expanding and Jeff’s background will serve him well in leading the acceleration of Anaren’s IoT business, including strategy, product and business development, as well as marketing and sales channel management.” Liebl has over 15 years of experience in the wireless and IoT-related markets, including both hardware, software and data analytics. He most recently served as chief marketing officer at Digi International. Prior to Digi, Jeff held key positions at eBureau, Ubiquity Software, Jetstream Communications, and 3Com Corporation. “With Jeff’s experience and leadership and the upcoming rollout of Anaren’s latest IoT products that include new WiFi modules, development kits, and the next generation of our Atmosphere cloud software platform, the group is well positioned to capitalise on the rapidly expanding IoT market opportunity,” added Sala.

Ekholm named Ericsson’s new president and CEO Ericsson‘s Board of Directors has appointed Börje Ekholm Börje Ekholm as the company’s new president and CEO, with effect from 16 January, 2017. Ekholm will also remain a member of the Board of Directors of Ericsson. Börje Ekholm joins Ericsson from his current position as CEO of Patricia Industries, a division of Investor AB. Prior to assuming this position in 2015, Ekholm held the position as president and CEO of Investor AB between 2005 and 2015. Previous positions also include president of Investor Growth Capital, as well as positions with Novare Kapital and McKinsey & Co. Jan Frykhammar will remain interim CEO until January 16, 2017.

Secucloud appoints former EPOST managing director Mark Rees as its new COO Secucloud has appointed the seasoned industry expert Mark Rees, a former managing director of E-POST as chief operations officer (COO). During the course of his career, Rees has been managing director of E-POST Development in Berlin, a subsidiary of Deutsche Post. In that position, he led a team of more than 200 staff in agile DevOps teams and had supervisory duties as well as complete budget responsibility for the IT security, DevOps, quality assurance, operations and user experience areas. In his new role as COO, Rees brings to Secucloud his expertise in agile leadership, as well as his experience managing crossfunctional IT organisations in the media and IT security industries.

IoT Now - December 2016 / January 2017

WHAT’S HOT ONLINE

www.iotglobalnetwork.com The importance of partnerships for the smart home market – the example of Drop and Bosch The recent Beecham Research study, Smart Home Report 2016: Current Status, Consumption Trends and Future Directions, has explored current business models being adopted in the smart home market. That analysis highlighted the importance of partnerships in the definition of potentially successful business models. There have been several partnerships in the smart home market, writes Olena Kaplan, a senior analyst at Beecham Research. In this blog, Kaplan highlights an interesting partnership that brings together an innovative start-up in Drop, an Irish smart kitchen scale company, and German industrial internet player, Bosch.

There are two key lessons to take away from the collaboration between Drop and Bosch. The first one regards the essential role of partnerships. The Drop and Bosch story is a good example on how smart home product providers of a different size can mutually benefit from partnerships as well provide additional incentive for consumers for smart home adoption.

Olena Kaplan is a principal analyst at Beecham Research

To read Olena’s blog in full visit www.iotglobalnetwork.com and search Articles with Keyword: Kaplan

Life on the open road – connecting the car to the home

Andrew Lee is head of marketing intelligence at Octo Telematics

The Internet of Things is increasingly meaning that, far from simply being for checking emails or browsing Amazon, the internet is becoming a part of our everyday lives, even for those that are offline. Far more everyday objects are now connected to the internet – many of these being home appliances.

One example is the smart fridge, which is equipped with cameras to monitor your food supply. When low on milk, the fridge sends an alert to your smartphone with the option to reorder the item. Another is wireless speakers, which can be controlled through an app to play music throughout the home. Smart sensors play a big role – installed in a discrete

location, they monitor household comings and goings. The problem is that all these devices work in silos, and consumers end up using endless amounts of apps to control them all. What’s missing is a central hub that controls and monitors all systems in real-time. This is where the connected car comes in. In the future, the car will connect with home apps so that it will feel like you are never actually leaving home, says Andrew Lee, the head of Market Intelligence and Analysis for Octo Telematics. Read the rest of Andrew’s article at www.iotglobalnetwork.com and search Articles with Keyword: Octo

How enterprises are cashing in on the IoT growth opportunity When Verizon’s annual “State of the Market: Internet of Things 2016” report was released earlier this year, we were not surprised to learn that enterprises view the Internet of Things (IoT) as a new revenue stream, says Tony Judd, the managing director for the UK and Ireland and Nordics at Verizon. Revenue growth is by far the biggest factor driving IoT adoption in the enterprise and going forward IoT deployments are seen as a mainstream path to generating

higher revenues for enterprises. This evolution within the enterprise – from seeing IoT as an innovative “nice to have”, to a “must have” cash generator – is the result of key advancements made in the past year. Access more findings from the report by reading Tony’s article in full at www.iotglobalnetwork.com and search Articles with Keyword: Judd

Forget the Internet of Things for a minute, what about the Security of Things?

Monica Brink is director for EMEA marketing at iland

The Internet of Things (IoT) is well and truly upon us – and will clearly be even more prevalent in the future. Today, says Monica Brink of iland, IoT is already branching out into commercial networks as well as enterprise applications.

Smart devices are becoming more commonplace in our households with everyday appliances now able to communicate with the internet to help our lives to run more smoothly and

IoT Now - December 2016 / January 2017

interconnected devices are now essential tools in our working lives as well. This is all fantastic news…right? While it’s easy to get excited about all the new gadgets that the era of the IoT has delivered, it is important to take a step back from all the excitement and talk about security. To read the rest of Monica’s blog visit www.iotglobalnetwork.com and search Articles with Keyword: Brink

TALKING HEADS

As the focus turns to securing the Internet of Things (IoT), Michele Mackenzie, an analyst for Analysys Masonâ&#x20AC;&#x2122;s IoT and M2M Solutions research programme, interviewed Andreas Haegele, the senior vice president of IoT at Gemalto, to explore the issues organisations face and how Gemalto is addressing the IoT security challenge

IoT Now - December 2016 / January 2017

â&#x2013;ź

Be secure from the edge to the core for the lifetime of an IoT project

Andreas Haegele: Traditional cybersecurity has been implemented for multiple decades and makes use of processes in controlled environments. When you look at IoT applications, mainly industrial ones, you find devices out in the field, located in unprotected environments for years. They are potentially susceptible to attackers. In addition, devices today comprise of a variety of individual components, operating systems and applications, resulting in highly fragmented attack zones, all prone to vulnerabilities. On the back-end side, the data typically travels through a complex combination of servers and networks which all represent new points of vulnerabilities, if not well protected. MM: How do Gemalto’s technologies address each component of the IoT value chain? AH: Gemalto proposes a three-step approach to ensure an IoT infrastructure is protected from the edge to the core for the lifetime of the IoT project. As a first step, we always recommend conducting an end-to-end risk assessment of your IoT infrastructure, whether it is already in place or about to be deployed. As there is no one-fits-all recipe for security we address our customers’ specific requirements. Our goal is to ensure the right level of security for an IoT infrastructure, depending on the anticipated threats. We run penetration testing to assess effectiveness of the right security scope, mechanisms and processes. Secondly, we recommend security and privacy by design. This is the golden approach for our customers when it comes to enabling trust between actors in IoT ecosystems. You need to mitigate risks at every level of the IoT value chain by building a foundation of trust – protecting what matters, where it matters and when it matters most. We help our customers to integrate security solutions at the project development level, to ensure the data is secured both at rest and in motion, in devices and in the cloud. To support strong access control and encryption layers, our portfolio enables different levels of security, ranging from highly secure tamper-resistant hardware to state of the art software-based security solutions embedded in devices. Finally, we facilitate long-term lifecycle management. Many IoT devices are in the field for years, so it’s necessary to ensure that the security protection can evolve at the same pace as new

IoT Now - December 2016 / January 2017

threats. Our solutions and platforms ensure that security can be remotely managed and updated over time, eliminating potential new threats as they arise. A single intrusion point during the lifecycle of an application might allow the threat to penetrate the entire ecosystem; hence IoT security infrastructure must evolve over the lifetime of the application. MM: What are the key challenges in providing IoT security in terms of sector specific security requests?

If we look at the energy market, we see numerous use cases that are exposed to cybersecurity challenges causing risks to our infrastructures

AH: Security is a universal need in the IoT and there are plenty of similarities in security requirements, when it comes to device integrity, privacy protection, in the device, in transit or in the cloud. Nevertheless, each vertical has its own specific needs, regulatory requirements and security approaches. If we look at the energy market, we see numerous use cases that are exposed to cybersecurity challenges causing risks to our infrastructures. Not only utilities but also government bodies are analysing the security implications of planned IoT deployments such as smart metering roll-outs. Key players in the sector are very aware of malicious motivations that put the energy system at risk. In addition to the ubiquitous cyber security risks, the nature of somehow imposed consumer data retention, specifically in smart metering, requires clear and compliant rules to maintain citizens’ rights to privacy. We are supporting the harmonisation of both privacy and security requirements to provide standardised and scalable solutions because we expect IoT to become the key driver of the energy transition. Gemalto is also involved in regulatory developments at the European level, and in the smart grid implementation in Germany, under the strong influence of the Federal Office for Information Security (BSI). With increasing penetration of connected vehicles, the automotive industry is facing a huge challenge in terms of security and safety. The car has become a central point of interest to hackers so original equipment manufacturers (OEMs) urgently need to protect their brands. Therefore, we are actively working with OEMs to strengthen the security design of their vehicles. This includes helping them to secure in-car and back-end architectures, identifying the most critical threat points and protecting their users as well as their own data and software. Our solutions combine strong authentication of the various electronic devices inside a vehicle, identification of the users, secure storage in the car and in the cloud as well as encryption mechanisms for the data transiting

▼

Michele Mackenzie: What are the main challenges for IoT security and how does it or should it differ from more traditional cybersecurity?

TALKING HEADS

within the car and from or to the back-end. Ultimately, the goal for the automotive OEMs is to build a trusted ecosystem they can utilise to enrich their service offers or to monetise as new mobility service providers. Connected healthcare, on the other hand, is centred on the human being and thus comes with specific advanced security needs to make sure that citizen data privacy is protected, while making data accessible to the parties who should have access such as doctors, nurses or hospitals. MM: What in your view is the best practice model for the provisioning of security services for the IoT? AH: As-as-service business models are a very strong trend in IoT, where we see a conversion from a classic one-time sale to setting up recurring revenue streams with a higher degree of customer intimacy. This however comes with a new kind of responsibility to companies offering as-a-service, mainly the responsibility for the health of the device or application over the entire lifecycle. Health in this context can refer to different aspects. There is the brand reputation in the case of the automotive industry, there is the need for the utilities to remain in control of and manage demand and supply in smart energy or to enable secure multi-tenant architectures for new emerging ecosystems like smart agriculture or healthcare. While the applications usually are very much verticalised, they do have horizontal requirements in common for an initial provisioning of the relevant security credential – no matter what the connectivity is – and then a lifecycle management for the time the solutions stay in the field. LoRa is a very good example for such a scenario, where it is used to complement traditional, mostly cellular, connectivity. Only an established robust security solution like Gemalto’s trusted key management system will allow a variety of stakeholders to collaborate and trust they only have access to the data they need. MM: IoT solutions often consist of more than one networking technology. Do you focus mainly on securing cellular technologies? AH: It is true that Gemalto has strong expertise in cellular security – as well as in government, banking and enterprise security where solutions are often based on other technologies. This expertise is now being applied to new domains such as LPWAN security. As an active member of the LoRa

alliance, for instance, we develop new solutions adapted to new market constraints including cost and technological capabilities. They include trusted key management services and solutions adapted to individual market requirements. MM: What is the cost of deploying an IoT security solution? AH: Security is only costly if the need is underestimated or even completely overlooked at the time of application design. The golden rule is really security by design, that means conducting a security analysis and risk assessment to put the appropriate security solution in place when the application is created. Unfortunately, security is too often overlooked in the initial project scope or return on investment evaluation. However, it is becoming a crucial differentiation point among players and regulatory requirements, like data privacy rules, also make it now impossible to ignore. At first glance it might seem to comprise a significant cost but device manufacturers should consider the deployment of a robust, upgradeable IoT security framework as an insurance for the future of their solutions. The result of a cyber-attack on a weak security infrastructure can have harmful consequences, including brand reputation damage, device recalls or costs incurred by system downtime. Let’s not forget the recent examples in the automotive industry which caused car recalls and costs that exceeded one billion dollars. On the other hand, security should also be seen as a business enabler. With a solid security framework in place, businesses can take advantage of new revenue opportunities through software monetisation models. MM: Can any security company claim to offer end-to-end security? Is that a realistic objective? AH: End-to-end security can only be guaranteed when considering the essential first step of scoping and evaluating the end-toend threats. By completing this exercise, one can achieve a uniform level of end-to-end security with necessary countermeasures deployed on the devices, the gateway, the back-end and monitoring systems. We have plenty of experts with rich experience in penetration testing that can support such analysis and recommend the right medication. MM: Who should be responsible for end-toend IoT security? AH: It can only be the one offering the service,

▼

As-as-service business models are a very strong trend in IoT, where we see a conversion from a classic one-time sale to setting up recurring revenue streams with a higher degree of customer intimacy

IN ASSOCIATION WITH GEMALTO 14

IoT Now - December 2016 / January 2017

meaning our customers. We are more than happy to support them on this difficult journey, but it is their responsibility to make sure that all the partners inter-working in their ecosystem were perfectly screened and part of an initial risk assessment.

AH: Definitely. Regulation is already in motion for some sectors and more governments are looking for wider IoT regulation, such as in Germany. Regulators play a key role in ensuring that regulations are effectively put in place and infringements are addressed accordingly.

A single security loophole can open the door to a complete ecosystem so our customers need to consider the weakest link in their security chain.

However – referring to the previous point – the certification of an end-to-end solution will always require a macroscopic evaluation and deep end-to-end expertise.

Besides the deployed technology, the way people use it is also crucial. If operators don’t follow practical guidelines such as changing passwords or two-factor authentication the risk landscape changes. Anyone who is part of the value chain needs to be trained to use the technology appropriately and shares the responsibility for end-to-end IoT security.

We believe that the more industries work together in jointly developing security best practices the better we will be in approaching a secure Internet of Things. Therefore, industries will need to set up institutions together with public bodies that manage the labelling or certification frameworks. Gemalto supports, amongst others, the EU initiative of establishing a cyber-security public private partnership (cPPP), aiming for a coherent approach to security in IoT. Our ultimate target is to build trust in an increasingly connected world.

MM: Considering the recent distributed denial of service (DDoS) attacks, do you believe that regulation has a role to play in securing the IoT?

A single security loophole can open the door to a complete ecosystem so our customers need to consider the weakest link in their security chain

Key rules to ensure a secure IoT infrastructure: • Focus on security by design by incorporating security needs from the beginning • Assign unique device identity in factory or via over-the-air (OTA) provisioning. Avoid default access keys or passwords that remain unchanged in the field • Provide the ability to manage device software and credentials over entire lifecycle. This should include secure boot, software updates and signature verification • Encrypt data at rest and data in motion, and secure the cloud • Enforce strong authentication of people and systems accessing the data www.gemalto.com/iot

IoT Now - December 2016 / January 2017

AUGMENTED REALITY

Alternative realities: Could IoT breathe new life into AR? Virtual reality (VR) hit the headlines in a big way recently with commercial launches of VR headsets into the consumer gaming markets and there has been much publicity in the B2B media about possible applications for the technology. By comparison, augmented reality (AR) seems like a poor relative; however, as is to be expected with artificially-generated realities, things are not what they seem, writes Peter Dykes

So far as AR’s relationship to VR is concerned, they are at best distantly-related cousins. VR is a completely synthetic environment and the user can see nothing of the real world, a characteristic which tends to define and in some ways limit the use cases for it. Only a small number of those use cases involve things that people do on a day-to-day basis, because most routine activities require us to see the real world all of the time. AR is all about seeing the world in the usual way, but with the addition of relevant, contextual information. It’s important to be clear about this difference between the technologies because it not only dictates use cases, but technological development and market growth. AR has been around for a few years now in one form or another, but it is far from a mature technology in terms of transparent usability. To begin with, a state of the art ARenabled smartphone is something that still comes between the user and the real world. It’s not adding anything to the user’s field of view, indeed, the user is looking through the phone’s camera and they are not hands-free. To achieve true AR, there must be a highspecification display technology which incorporates high outside world transparency and a wide field of view. In addition, it must be voluntarily wearable rather than something which has to be worn, and the technology has to be inherently scalable. Basically, it should be something that the user would want to

wear, which delivers an immersive experience and is scalable. While VR has major use cases in areas such as entertainment, medical procedures and therapies, AR applications are arguably more extensive in that they can create massive efficiencies and cost savings by providing an adjunct to more mundane activities such as logistics, warehousing, retail and aspects of the automotive industry. However, because AR as an enabling technology depends largely on the availability of real-time aggregated data, its success and future growth in the enterprise sector is tied very closely to the widespread adoption of IoT networks. As more enterprises adopt IoT, so the market for AR will grow. Greg Taylor, the general manager at digital products company Tigerspike says, “We know AR and VR are big business, but Tigerspike believes that 2017 will be the year that sees AR becoming more prevalent in industrial usage and skilled trades. Providing wearable AR solutions in fields such as construction directly to engineers or on-site staff will significantly reduce human error, safeguard on-the-ground workers and accelerate the learning curve for training employees whilst reducing costs and timelines.” Taylor adds that employing IoT, data, and analytics through agile and connected ▼

AR has been around for a few years now in one form or another, but it is far from a mature technology in terms of transparent usability

IoT Now - December 2016 / January 2017

technologies is going to be critical to the success of AR. This is a view that is echoed by other interested parties outside the immediate sphere of IoT. Indeed, without those agile and connected technologies such as AR, IoT’s growth could to some extent be stunted, so it is therefore worth taking the temperature of the VR market by looking at the progress of companies focused on enabling AR. One such is Oxford, UK-based display technology specialist WaveOptics, which started commercial operations in 2014, and which plays in both the enterprise and consumer AR markets. While the company doesn’t market a branded product, it develops and sells what it refers to as an essential ingredient technology which enables data to be displayed on a wearable AR device. It works with large enterprises, solutions providers and systems integrators, who then feed its products into verticals such as front and back-end retail, field services, logistics, heavy industry and the medical sector. WaveOptics CEO and co-founder Sumanta Talukdar says, “Because of such applications, the development of IoT is playing directly into our hands. One of the things about IoT is that it is great at being able to generate all that data, but if you cannot distil it into something that is contextual, then you haven’t really unlocked the full potential of the technology.” The one area where IoT and AR are far less

IoT Now - December 2016 / January 2017

dependent on each other for market traction is the consumer sector. While companies such as WaveOptics are seeing significant demand in the consumer market, IoT rollout is having little effect because the technology drivers are very different. In the consumer AR market, the imperative is to move the application from the smartphone to something more wearable. Talukdar points out that most people are already walking around with a supercomputer in their back pockets, so the first step is to produce a companion device which represents a low entry barrier for AR. Then, as end users realise the benefits of AR-enabled data, there will be migration from the smartphone to a wearable optical device as power efficiency and bandwidth are increased and data aggregation latency is improved. These developments are happening and for AR vendors, the consumer market is rapidly catching up with that of the enterprise sector. This makes for an interesting comparison between the markets for IoT and AR. Both are benefiting from increasing demand in the consumer sector, although both are dependent on developments in radio technologies in one form or another. In the enterprise/industrial sector however, AR is very much dependent on the successful adoption of IoT if it is to offer savings in cost and efficiency. To put it bluntly, if the data isn’t available, enterprises will have little use for AR.

INTERVIEW

Secure the IoT through best practice-based design The Internet of Things (IoT) vision can become reality, enabling the large spectrum of opportunities the industry is imagining, only if it is designed with a security-centric framework. Security is the indispensable prerequisite for the development of the IoT. This sentiment is shared by the entire IoT community, from the IoT solution and technology providers to the adopters, from the research community to governments and regulators. However, that consensus often is not reflected in the status of IoT security development. In order to understand more about the current status and the issues behind that, Saverio Romeo, the principal analyst at Beecham Research, spoke to Rob Black, the senior director of product management at ThingWorx-PTC. Black has spent more than ten years in security, at Axeda and now PTC, focusing specifically on IoT security. Holding a Certified Information Systems Security Professional (CISSP) certification, he has experience and knowledge on the evolution of IoT security and on its future developments

Rob Black: There are different levels of awareness and adoption of IoT security solutions. If we want to analyse those levels in an easy way, we could identify two main groups: consumer IoT security and enterprise IoT security. I would say that the understanding of security in consumer IoT products and solutions is immature. Attacks on various consumer connected devices show the vast spectrum of vulnerabilities and the inability of protecting against them so far. In contrast, the enterprise IoT security group shows more consciousness of the problem and, consequently, pays much more attention to introducing the right security approach in products and solutions. However, within this

group, we can find different levels of adoption of IoT security. We have on one extreme organisations with very sophisticated approaches but on the other extreme, organisations with very similar attitudes to the consumer IoT security group. SR: In the consumer IoT device space, where do you see the major problems and how should they be addressed? RB: There is an important starting point for device makers which is that your device is not a stand-alone device, but interconnected with many other connected devices. Therefore, if not secured, it could represent the weak point that allows compromise of an entire network of devices. But, it could be affected by attacks on other devices with which it shares the same network. Therefore, the design of the device in all its components â&#x20AC;&#x201C; panels, wiring, printed circuit

â&#x2013;ź

Saverio Romeo: Considering your long experience in the security market and, specifically, IoT security, can you give us an overview on the state of development of IoT security?

IN ASSOCIATION WITH PTC 18

IoT Now - December 2016 / January 2017

The sophistication of an IoT approach starts from being really mindful of the device or the solution

Figure 1. IoT security challenges and the PTC approach

• Complexity: New layers of device and user interactions need to be secured • Risk Mitigation: Concerns over cyber-attacks finding devices on the Internet • Patches: Inability to easily provide security updates to devices

boards (PCBs) and embedded electronics – should be taken into serious consideration from the ground-up design of the device, based on IoT security best practices and guidelines. On the other hand, it is also important to define easy-touse security configuration in order to be able to create trustful and confident relationships between the device and the consumer. SR: Consumer IoT devices are managed through a mobile application which can be a weak entry point. What do you suggest for improving mobile application security? RB: Weak security approaches at the mobile application level are unfortunately very common. The solution is not always easy, but it is available in the form of guidelines. The OWASP Top 10 Project is an excellent source to be used by mobile application developers. R: You have divided the enterprise side into two groups depending on their sophistication in regard to security, what is your definition of security sophistication? RB: The sophistication of an IoT approach starts from being really mindful of the device or the solution. Being aware that security is not an addon, but a key part of the design from the inception of the idea is a key part of becoming sophisticated. The concept of security-by-design summarises that attitude. It then moves on to having an IoT security approach based on guidelines and best practices. We mentioned the OWASP Top 10 Project in the case of mobile applications but there are also others that are

IoT Now - December 2016 / January 2017

What you need • Extremely flexible permissions & visibility capability • Device-initiated communication provides single method of IoT system connection • Infrastructure to distribute security patches on an as-needed basis

equally important. For example, it is important to have a secure software development lifecycle. We do not need to reinvent the wheel here, there are guidelines available for this. It is also important to test the solution and the product and also in this case, guidelines can help us. Finally, a lot of this is about hard work, attention and dedication. SR: Which sectors show more sophisticated approaches? RB: Sectors that have been historically highly regulated are showing more maturity than others moving along the lines discussed in the previous questions. Even within a sector there are differing levels of maturity. Some companies are compelled to focus on security while others see it as an opportunity to differentiate themselves. Therefore there are different security approaches taken by these various organisations. SR: Do you think the lack of skills in IoT security is also a barrier? RB: Having security experts in the organisation is important. However, not all the organisations have those professionals. Small and mediumsized enterprises are those that suffer the most from the lack of security skills internally. SR: In such scenarios, what does PTC offer? RB: PTC has a comprehensive security offer. Examples of security features are: authentication and authorisation, matrix multi-tenancy, security logging sub-system, encrypted data storage, supported application back-up strategy, ▼

IoT Security Challenges

INTERVIEW

protection of common vulnerabilities, backdoor protection, and support for transport layer security. However, there are three elements that make PTC more competitive in the market place: the Visibility and Permission Capability, the Device Initiated Communication Capability, and the Software Content Management Capability [see Figure 1]. SR: Can you tell us a bit more about the Visibility and Permission Capability? RB: Non-administrative users and users groups have not had access to the platform until that has been granted by the administrator. The administrator can then design its own authentication and access models. Access control can be granted at a very granular level. For example, access can be granted only for a simple read and write operation on a thing property. There are also separate permission settings for design-time and for run-time. Both design-time and run-time permissions can be set for any entity in the system. This very fine and granular capability gives a lot of flexibility to the enterprise. The framework behind that refined approach can be also applied to allow granular access and permission policies in multi-entity organisations such as a healthcare organisation composed of different hospitals. The approach called Matrix Multi-Tenancy enables assignment of a specific permission, called Visibility, to a specific entity. Therefore, the members of that entity are the only ones with the access granted. It is also possible to create a rule that enables access to specific things or a specific entity.

SR: Can you describe the Device Initiated Communication Capability? RB: Each device has a pre-set parent server to communicate with. This means that the single method of IoT connection is the server and not the edge device. Therefore, instead of worrying about several entry points, the security concern should be ensured at server level. SR: What about the Software Content Management Capability? RB: Organisations cannot afford product recalls for security updates and reconfigurations. Security patches have to be distributed over the air. The Software Content Management Capability provides an infrastructure to distribute security patches whenever it is necessary. SR: What is PTCâ&#x20AC;&#x2122;s business model? RB: Our approach to market is primarily based on collaboration with channel partners. Certainly, we go direct to organisations, but, partnerships are increasingly important. Collaboration with solution providers is particularly important. The Internet of Things is impacting all sectors. Consequently, we increasingly operate in a variety of sectors and applications. The contribution of sector and solution specialists then becomes crucial to enable us to understand the context of the operations and the security approach to adopt. SR: Are those partnerships involving forms of post-sales support? RB: Certainly, yes, if it is necessary. We rely on the

IoT Now - December 2016 / January 2017

â&#x2013;ź

Organisations cannot afford product recalls for security updates and reconfigurations. Security patches have to be distributed over the air

Saverio Romeo: Is principal analyst at Beecham Research

fact that our partners are specialists in the fields and therefore, the success rate is high. However, the collaboration can involve post-sale support. It is also important to remember that PTC offers customer support, cloud services and global post-service support. SR: Robotics and artificial intelligence (AI) are becoming relevant topics in several IoT contexts. How do you see those in your daily experience and how will they affect IoT security? RB: Today, most customers are not deploying AI solutions. They are more interested in advanced analytics such as predictive analytics. For those, the business value is more evident. We provide analytics capabilities. We enable integration with third party analytics packages. It is all part of our platform, therefore, thought-through from a security perspective as well. Regarding robotics, we see an increasing use of robots, particularly in industrial settings. Our integration capabilities are very extensive. Therefore, our software is integrated in a diverse range of devices including robots. Regarding the impact of AI and robots on the evolution of IoT security, probably, it is too early to say, but they are topics that needed to be observed and studied in order to identify a successful security approach. SR: What are the future directions of IoT security in PTCâ&#x20AC;&#x2122;s opinion? RB: The company has a strong commitment to continue the development of cutting-edge security technology in order to be able to face

IoT Now - December 2016 / January 2017

Rob Black: Senior director of product management at PTC

new threats to data, intellectual property and operations. We have a robust internal testing capability. Periodically, we test the platform at the network level and at the application level. We have internal and external security audits. We have a strong and skillful in-house team. We continue collaborating with solution providers and we learn from those collaborations but, probably, most importantly, our development process is based on secure software development best practices. That includes: risk assessment development in different iterations in order to have a clear view of the situation all through the operations; security requirement definition at the inception of the project and during the project; formal design reviews at the end of the design phase to ensure that security requirements have been satisfied; and security code reviews run during the development in order to verify that the code has been produced based on guidelines and best practices. Strictly following this approach will enable us to be always at the cutting-edge of the platform security offerings in the market place. SR: What is your conclusive suggestion for IoT adopters in terms of how they should face security issues? RB: As I said previously, security is also a lot of hard work, but there is a lot of help and knowledge out there. That is in the form of best practices and guidelines. It is also important to have the right partner that meets the security requirements and is able to respond to security challenges. PTC offers a very comprehensive security solution tackling key issues, such as complexity, risk mitigation and software patches, among others, in a strong way.

www.ptc.com

INTERVIEW

Specific apps need LTE chipsets optimised for IoT Eran Eshed is the vice president of worldwide marketing and sales at Altair Semiconductor. Here, he tells Christopher Taylor, the director of analyst firm Strategy Analytics’ RF and Wireless Components advisory service, how the company is progressing following its acquisition by Sony earlier in the year and how he views the prospects for single-mode LTE Christopher Taylor: How is Altair progressing under Sony, and in single-mode LTE as a whole?

sockets on our chipsets’ merits and we cannot take the business for granted.

Eran Eshed: For Altair, it has been about eight months since the acquisition concluded and we are past the integration challenges. We keep investing in our target products and markets as before, and in some cases have even stepped up the investment which I believe provides our customers with a level of confidence that we are financially solid and strategically focused. One of the major advantages of becoming part of a larger company is the ability to bundle products and offer a platform-level solution rather than a discrete modem.

CT: Given the industry’s progress with Cat-M, where does this leave Cat-1 and Cat-0?

This followed a somewhat lengthy process of interoperability testing and functional testing, and we now have our chipsets up and running over the air with a live connection, while some of our competitors have announced similar achievements after us. We wouldn’t consider the technology mature yet and nationwide coverage will take some time, but I think this is an important milestone for the 3GPP and cellular industry in the light of all the LPWA wars – the proprietary camp versus the LTE Cat-M camp and the LTE NB1 camp. LTE Cat-M is real and no longer just the subject of 3GPP meetings and white papers.

We’ve been progressing very nicely. We have increased our focus on the new R13 technologies – Cat-M1 and Cat-NB1 – and have accelerated our development

CT: Will we see Altair LTE chips in a Sony smartwatch, for example? EE: Conceivably we could see this sort of development, and although some customers have raised some concerns that Altair would become a captive, internal supplier to Sony, this is not the case, we are operating as a catalogue chipset provider to whoever is willing to buy our chipsets. The flipside is that there is no guarantee that we will get business with Sony; we have to win those

LTE Cat-1 is still gaining momentum. Fast progression between standards probably has hurt Cat-1, but if you want to deploy IoT within the next 12 months using LTE and not 2G or a proprietary technology such as LPWA, Cat-1 is the best and only real option today. Nobody will be able to deploy LTE Cat-M in a commercial service in the next six to nine months because of coverage and other issues. It’s important to consider that the design cycles are very long in the IoT market, sometimes the time taken from starting design to market introduction can easily be two years, so deployments that we will see next quarter will be design-ins that we had more than a year ago in many cases. Altair has quite a few LTE Cat-1 customers in the pipeline, some of them Tier 1 module and device makers, so we think that 2017 will be a good year for Cat-1. The market probably will still not reach tens of millions of units in 2017, but based on customer design-in activity, we expect to see real deployments happening. On top of that, Cat-1 offers more bandwidth than Cat-M, so it may not be the best option for smart city sensors or wearable devices, but for applications that require more bandwidth but don’t need 100 Mbps or 150 Mbps, then Cat-1 is very suitable and mature and offers VoLTE capability. LTE Cat-M will eventually offer VoLTE too, but this will take time so there is a market window for LTE Cat-1. I think that, even beyond this window, Cat-1 will continue to have a role in supporting applications that need bandwidth that’s a bit higher. CT: Which markets or applications are leading the way for single mode LTE? EE: First of all, wireless broadband, such as fixed wireless applications, CPE/LTE routers, gateways, Mi-Fi devices, USB dongles and others represent a

IN ASSOCIATION WITH ALTAIR 22

IoT Now - December 2016 / January 2017

▼

We’ve been progressing very nicely. We have increased our focus on the new R13 technologies – Cat-M1 and Cat-NB1 – and have accelerated our development. A highlight of this is that we demonstrated the first live connection on an LTE Cat-M1 network. We did this with AT&T and Ericsson infrastructure equipment using our ALT1210 chipset in the IoT devices.

EE: LTE Cat-0 has been dead for a while. There was little motivation to deploy it from the outset and now it is even less appealing.

solid market, but not one that is growing at a tremendous rate. You will find these applications and devices mostly in emerging LTE countries, but also in the US, Japan and other developed countries for fixed line replacement for voice and broadband access. IoT is obviously a very diverse market, and has tens of different vertical markets and applications. The ones that we see driving volumes today are: 1. Smart metering for electricity, gas, and water. 2. Telematics, mostly in tracking and UBI (Usage Based Insurance). Telematics includes stolen vehicle recovery, ‘Buy Here, Pay Here’ offerings and leased vehicle management. For example, car dealers install millions of trackers every year in the US alone for managing buyers with suboptimal credit history so that the cars can be turned off and recovered if the buyer defaults. 3. Security alarm panels, which until recently used GSM or CDMA connections, and now need to have these older technologies replaced. These are all established markets with established business cases, what we call M2M today, and are migrating to new technology. These three are in my view the most significant in terms of volume and adoption of LTE, but there are several other areas such as various sensors, propane gas level measurement, bridge oscillation monitoring, garbage collection … it’s endless, and these will grow significantly. CT: Beyond M2M, will single mode LTE handsets be viable as a replacement for today’s ultra lowcost 2G and 3G handsets?

Qualcomm became so dominant in phones because that market is so consolidated in terms of its’ requirements. Regardless of whether a phone is a featurephone or smartphone, the volume driver is essentially one application and Qualcomm did a great job of having a strong grip over intellectual property rights and scaling to huge volumes. This has worked well for them, but the cellular world is changing. It is no longer just about phones, but it is about 100 different end markets with different needs. Of course the wireless modem is a common requirement, but the diversity of requirements is unlike anyone has known before, which creates opportunities for smaller players. As long as we differentiate ourselves, for example with extremely low power consumption, then, while some designers of devices with mains power such as electric meters won’t care, in perhaps ten other spaces people will care a lot about this capability. If we focus on some of these areas, it gives us the opportunity to dominate each of them and the volumes – even in IoT terms – will be huge. You can extend this to other areas if you understand the use case of the application such as the tracking device, the health device or the wearable device. If you build a solution optimised for that, then there’s an opportunity to differentiate. This differs from before, where someone had all the variants, sizes, functions and integration options covered. In addition, integration is not necessarily an advantage here; the applications processors Qualcomm and others offer are not an advantage for IoT, and neither are the peripheral functions such as Bluetooth and Wi-Fi in most cases.

CT: Qualcomm recently announced partnerships and design wins for itss MDM9206 and MDM9207 LTE chipsets for LTE Cat-M and NB1. What does Qualcomm’s entry into the market mean for LTE chip specialists such as Altair and its competitors?

Qualcomm has a broad portfolio, great technology and it is a fierce competitor. However, we have built a sustainable business in its shadow. In contrast to larger players, Altair can take advantage of its flexibility and speed of execution to give smaller – relative to the handset market – customers intimate relationships with more accommodation and attention. Customers know that loss of a one million unit order is not even a rounding error for Qualcomm, but for us it is a big, big deal, and we are extremely excited to win this kind of business.

EE: One perspective is that Qualcomm’s entry means that this is now a significant market, not that we needed this indication, but it means that the market is real and maturing. Altair, Sequans and even Marvell cannot invent new markets; if companies like Qualcomm, MediaTek, Hisilicon, Intel and others are not in a space, then it probably means the space is not real, so this is a good sign.

Overall, the entry of more suppliers into the LTE IoT chip market is a positive, and forces us to be more competitive and aggressive, and to continue to design better products. We will continue to focus on what we do well and keep increasing our business, in the process showing that experience in IoT and customer engagements count. There is definitely room for the LTE IoT chip specialist.

EE: Altair offers single-mode LTE Cat-4, Cat-6 and Cat-10 chipsets today, but we’re not focused on handsets.

IoT Now - December 2016 / January 2017

Eran Eshed: If you build a solution optimised for a speciﬁc use case, there’s an opportunity to differentiate

www.altair-semi.com

RETROFITTING

Retrofitting opens up opportunities for others beyond OEMs to control IoT services Retrofitting IoT technology is particularly relevant for services that involve expensive things that have long lifecycles including plant, cars, trucks and industrial machines. These things will be in operation long into future technological generations but the economic rationale for replacing them with IoT-enabled hardware isn’t there. Upgrading them with IoT-related technologies opens these things to the benefits of IoT and, crucially, also opens up the market for organisations outside the original equipment manufacturers (OEMs), writes George Malim

“Deploying IoT can be an expensive proposition for organisations that have invested considerable capital expenditure in equipment that is expected to last for another seven to ten years or longer,” acknowledges Darren Miller, the vice president of engineering at Lantronix. “When faced with the choice between ditching a five- or six-figure investment in existing unconnected equipment or achieving greater return on investment with a new IoT-enabled solution, it’s no surprise that not everyone is on board yet and many choose not to invest anew. Retrofitting provides a solution, especially as many devices and equipment already have ethernet ports, meaning they can be connected with a simple modification. IoT device gateways with built-in IoT apps enable manufacturers and systems integrators to connect virtually any existing machine and device securely, wirelessly and cost-effectively to the enterprise IoT.” Magnus Melander, a director at Springworks, which has recently announced a deal with Swedish mobile operator Telia and its automotive service provider partners in Sweden to roll-out its Spark connected car platform to enable new services, agrees. The deal will see Springworks’ platform retrofitted to cars and enables a mobile

operator, in this case Telia, to insert itself into the connected cars value chain without relinquishing control to a car maker or its partners having to wait until future generations of cars hit the market. “We can’t wait ten or 15 years to have IoT capabilities in vehicles,” says Melander. “In Sweden there are 200,000-300,000 cars on the road that are connected [out of a national fleet of almost 4.7 million vehicles] so growing the market is the number one reason people look to retrofitting.” The same is true in enterprise markets in which long-life equipment will need to have technology retrofitted in order to enable new business models. “New and disruptive market entrants and business models are shifting towards x-as-aservice propositions such as usage-based-pricing and outcome-based-pricing,” says Wael Elrifai, the director of enterprise solutions at Pentaho. “This is driving a need to get more productivity, efficiency and uptime out of existing heavy assets such as mining equipment, trains or power plants and this can be achieved through predictive maintenance, total asset optimisation, and schedule optimisation techniques, among others.” However, it isn’t necessarily a simple case of plugging IoT devices into existing equipment. Hardware is often reliant on proprietary technologies or simply doesn’t have nowstandard interfaces incorporated into an old design. “It depends on what you’re trying to do but all industries have their own interfaces and standards and within those there are proprietary aspects,” acknowledges Melander. Olivier Beaujard, the vice president of market development at Sierra Wireless, sees less of a

▼

The need to retrofit IoT technology to deployed things has come about because IoT deployments have generated operational efficiencies and cost savings that operators of older equipment want to access. A simple example is in the consumer automotive market where insurers want to make usage-based insurance (UBIs) available to drivers of older vehicles. In fact, many brand new vehicles today don’t offer IoT functionality so there’s plenty of scope for retrofitting.

IoT Now - December 2016 / January 2017

Magnus Melander: A growing market is the number one reason people look to retrofitting

Wael Elrifai: Retrofitting is mostly confined to adding sensors-in-a-box

hardware issue. “I don’t think that globally there’s a challenge on the hardware,” he says. “Products can be compatible for 2G and 3G modules and there are standard connectors such as serial ports or USB in a lot of hardware. A bigger issue is the quality of the power supply and the radio sensitivity – where you put the antenna is very important.” Others have concerns that retrofitting can only offer limited additional capability, largely confined to sensor data applications. “Setting aside the possibility of actually altering existing integrated circuits, we are essentially left with adding sensors-in-a-box,” says Elrifai. “These could measure temperature, pressure, vibration or even take video across a wide electromagnetic spectrum to infer all of those data points, among others.” Nevertheless there’s significant value to be extracted from sensor data in many markets. “There are lots of opportunities,” confirms Miller. “In industrial IoT, existing machinery and factory equipment is ripe for retrofitting and healthcare is another sector with great possibilities.” Beaujard sees opportunities in the automotive sector where failure to offer IoT functionality could damage the car maker’s brand if a rival offers a new service or application. He also sees retrofitting continuing to have importance in the energy market. “Today, energy companies are retrofitting meters when they visit locations,” he says. “They’re taking the opportunity to retrofit but by doing so, the meter should last ten or 15 years.” Melander similarly sees a wide range of retrofitting opportunities that will enable

IoT Now - December 2016 / January 2017

Olivier Beaujard: A lot of hardware has standard connectors

companies to transform their business models by combining established technologies and systems with IoT. “You could see Rolls-Royce charge for aero engines by hours in flight or an engineering company charge a municipality for running its bus system on a basis of people per kilometer,” he says. “I think that’s fantastic and enables companies to use the connections and create new services.” Of course, retrofitting also creates an opportunity for non-OEMs to participate where manufacturers may have hoped to control the market themselves and we may yet see some protectionist moves in this respect. This type of retrofitting could result in an increased lifespan for retrofitting which by its nature could become obsolete as new hardware is deployed over the next decade or so.

Beaujard sees opportunities in the automotive sector where failure to offer IoT functionality could damage the car maker’s brand if a rival offers a new service or application

Beaujard is unconvinced. “More and more now, everybody is doing over the air patches, upgrades will no longer be a big deal,” he says. Melander thinks the retrofitting debate will subside as the concept of IoT simply becomes the new internet. “The internet started with connectivity and then operational values of quicker and cheaper before addressing strategy and rethinking industries,” he says. “In IoT, we’ve already left the connectivity part behind and are now in the middle of the operational era. Retrofitting is just a temporary, short-term solution to bring the services to life and then new things will come.” However, that temporary period will last more than a decade and will see older equipment enabled with IoT technology and, critically, pose a significant threat to the dominance of OEMs as the market develops.

The IoT Enablem ment Company As global leader in connnecting distributed devices, Eurotechh works with world-class ecosystem par p tners to deliver best in class buiilding blocks that make up the Internett of Things.

ANALYST REPORT

SECURE IoT How common guidelines will address the vulnerabilities

www.beechamresearch.com

CONTENTS

THE BEECHAM RESEARCH THREAT MAP

LEVELS OF HIERARCHY IN AN IOT SOLUTION

ANALYST REPORT 30 IoT security â&#x20AC;&#x201C; concept and challenges

34 Smart city security

35 Vulnerabilities in the smart city environment

Security for the smart home

32 Technology, policy and support services

35 Identifying points of attack

33 Security in the industrial IoT

36 Providing security through common frameworks and guidelines

33 Vulnerabilities in the industrial IoT environment 37 Conclusion 34 How to introduce security in the industrial IoT

IoT Now - December 2016 / January 2017

ANALYST REPORT

The authors are Saverio Romeo, principal analyst and Dr. Therese Cory, senior analyst, at Beecham Research

Secure IoT through common guidelines and context-awareness Security is critical to the success or failure of the Internet of Things (IoT) vision. Critical flaws at the heart of the internet, such as the Heartbleed bug, have highlighted engineering fallibility. The successful attacks in industrial applications, such as Stuxnet, have highlighted hidden aspects of cyber warfare. In addition, attacks on consumer IoT devices such as smart home devices – connected lighting and connected baby monitors, for example – have emphasised the broad capability of attacks and their immediate impact on consumers’ fear.

Figure 1. Essential pillars in security

As the Internet of Things vision becomes the driving paradigm for changes in society and in economic activities, increasingly, the vulnerability present in that change requires attention. Facing that vulnerability through a strategic and multidisciplinary approach for IoT security is not an easy task for the community of cybersecurity experts, IoT experts and policy makers and ethicists. Cybersecurity is an engineering and scientific area of great complexity, but, with an extraordinary impact on governments, consumers and businesses. Therefore, building a bridge between cybersecurity experts and organisations and individuals vulnerable to attacks is necessary. This Insight Report discusses IoT security in the smart home as a consumer IoT context, in the industrial internet as an intensive enterprise IoT context; and in the smart city as a government-led context. The Insight is structured in five sections. The first section will introduce the main concepts and challenges in providing security for the IoT. The next four sections will discuss approaches to security in smart homes, industrial internet and smart cities. The last section will provide some concluding remarks.

IoT security- concepts and key challenges Defining security is an ambitious task. The concept of security encompasses nine key elements as shown in Figure 1.

IoT Now - December 2016 / January 2017

Figure 3. The Beecham Research Threat Map

In the evolving IoT market, security does not just refer to security of information, it expands into the entire complexity of the IoT vision. Before discussing in more detail the challenges in the IoT security, it is also important to highlight that security issues in the IoT strongly relate to privacy and trust issues. Having said that, it is important to stress that installing security capabilities does not necessarily imply the right to privacy and trusted relationships. Privacy and trust go beyond the technological domain into ethics and legislation. Therefore, an IoT security strategy should take into consideration multidisciplinary aspects to be effective. Although this paper concentrates on the technological aspects of security in the IoT, it is important to deconstruct an IoT solution in its components to see the need for security. Figure 2 shows the hierarchical level of an IoT solution.

More complexity is introduced when we see the Internet of Things vision as the enabler of interconnected smart contexts or spaces. The solution does not engage with the business problem on its own, using one type of device, one type of connectivity, one protocol and one set of data. There are several different devices, using different protocols, different types of connectivity and using different sources of data. The points of attack are therefore multiplied as shown in the Beecham Research Threat Map in Figure 3. The enormous challenge for the IoT strategy and solution designer is using the Threat Map to identify the right approach to protect the smart context in which they operate. The next sections will explore how this happens in three spaces: the home, industrial plant, and the city.

Security for the smart home Vulnerabilities in the smart home environment

All the levels of an IoT solution need to be suitably secured but it is also important to assess the value of the different layers to ensure that costs and benefits are well understood.

IoT Now - December 2016 / January 2017

There is therefore a very real concern about security, and

â&#x2013;ź

Figure 2. Levels of hierarchy in an IoT solution

The internet now pervades nearly every aspect of our lives. The many benefits IoT promises to bring include better, faster automation, greater insight and improved user interaction with products. The place most people will feel this impact will be at home, where connected appliances, televisions, lighting and heating systems are already finding space in everyday households. Virtually any consumer electronic device can be made smart by being fitted with a powerful embedded computer designed to be always on and networked via the internet. This brings many advantages, but it does increase the potential attack surface.

ANALYST REPORT

A true web of things introduces connections between multiple systems at multiple touch points. Whilst the benefit of the additional connections is adding value, this complicates the security landscape. In addition, the connections between the systems are not always secure. The smart home is the intersection point of many systems including vehicles, energy grids, media streaming and physical security. An exploitable vulnerability within the home could lead to more serious breaches in any of the systems it touches. Because smart homes are a key point of interaction between people and technology, securing this environment requires social, political and economic input perspectives. There are two broad types of smart home infrastructure. The first scenario stems from the earlier days of building automation which depicts an environment where there is a single system, sometimes integrated into the building at the time of construction. This is then fed and managed by a single supplier. However, with the rise of intelligent smart home hubs, another model has emerged where the control hub coordinates all of the devices. This aims to add value through the synergistic properties of bringing the separate services together under one roof. It also addresses the majority of usersâ&#x20AC;&#x2122; dislike of multiple proprietary applications for their numerous products. What is expected to become more prevalent is the emergence of an environment that lies somewhere between these two scenarios, with the added complexity of devices communicating with one another within the home, without the internet but instead via new connectivity protocols such as Bluetooth, 6LowPAN, ZigBee and Z-wave.

How to introduce security in the smart home The smart home environment exposes three main vulnerability areas: end user expertise, business models and pervasive and persistent insecurity. What can be done therefore, to create a secure smart home? Beecham

Research believes three types of guidelines should be followed in order to address security shortfalls: technology, policy and support services.

Technology The first step is to ensure that all data must be encrypted, rendering it unreadable to intruders. Dynamic encryption keys should be used wherever possible, alternatively static keys must be well protected. This becomes a challenge particularly within mobile applications used to control the connected products. Data encryption should be the responsibility of all those members of the solutions chain that handle the data, from the OEM collecting the data, the service provider transporting the data and the cloud provider hosting the data. Crucially also, the connections between these parties must be secure, as outlined in the threat map. Smart home systems therefore must be secure by design. This must extend across products and services, as well as through the entire supply chain. Ensuring a secure design across the entire smart home ecosystem will emphasise the fact that responsibility for security does not lie solely with the home owner.

Policy Equally important are the processes by which security features are specified, designed, implemented and operated. The best IoT practices rely on security policies to be properly implemented across hardware and software, protecting data at rest and in transit, and therefore must be applied across the entire IoT service â&#x20AC;&#x201C; user applications, data centre servers, network gateways and the devices themselves.

Support services The speed of technological innovation has led to shortened lifecycles of many electrical goods, predominantly because processing power increases have meant that old hardware cannot support newer software. As a result, software support is being abandoned much sooner than previously anticipated. Vendor support for software and operating systems are vitally important, especially for security, where many updates include vulnerability patches.

Future business models The evolution of the smart home has advanced significantly over the past three years, causing increased attention from different parties, ranging from traditional IT vendors (Microsoft, Cisco), start-ups (Notion, Ecovent) and mobile network operators (AT&T, Verizon Wireless) to home appliance manufacturers (Bosch, Siemens) and even

â&#x2013;ź

again there are few places that raise greater security concerns than within our homes. But what are the implications for consumers if any of the devices used in the home is hacked? Many home networks are different to enterprise infrastructure and traditional information that security solutions were developed for. This makes securing the smart home a different kind of challenge, one with its own unique vulnerabilities and threats, many of which are still unknown.

IoT Now - December 2016 / January 2017

governments. The market is still in its relative infancy in spite of being under development for many years, and therefore the predominant current business model focuses on shipping physical units. Much of the opportunity for security revenue lies with OEMs at different levels – from chipset vendors, to vendors’ in-house development teams. However, with the emergence of service offerings, there are greater opportunities, and even obligations, for service and cloud providers, mobile network operators and other third parties.

automating manual work processes. The industry now is characterised by the need for almost-zero error tolerances and ever more rapidly moving research and development cycles. The IIoT takes this further, utilising advances in software and data analytics to allow companies to make faster smarter decisions that optimise processes, and pass on these benefits to customers. This vision, known as the intelligent or smart factory, envisages a new way of organising manufacturing processes in which different parts – from suppliers to logistics to the entire lifecycle of the product or material – become closely and intelligently connected with the corporate boundaries.

IoT security must be implemented with a layered approach, and this starts with the physical device. The vast majority of this security will be embedded, offering a similar hardware sales revenue model for security companies and chipset vendors.

Industrial automation is also tied into next generation manufacturing processes with the involvement of the internet. The term Industry 4.0 was first coined by a group of advisors to the German government on how to develop its technology strategy.

In summary, it is worth noting that the smart home security market is slightly behind the curve compared with the smart home products and services market. Most security options are focused on the embedded security options, and are not yet addressing security services. This is in part due to the complexity of creating such a system, also it’s in part due to the level of risk that a managed security service provider would be taking on, especially in the smart home vertical.

A typical factory may operate various production lines that involve a number of critical processes. By bringing intelligence to sensors either locally or through cloud computing, devices can be made to slow down or shut down processes to prevent major accidents.

Security in the industrial IoT What is the industrial IoT? The Industrial IoT (IIoT) covers a long list of industries, ranging from manufacturing, mining, agriculture, chemical plant, petrochemicals, power grids, food and beverage production and allied services. Manufacturing controls require the continuous measurement of a wide range of variables from a wide range of sources, making this ideal for wireless sensor technology, particularly for devices located in hard to reach places. Devices that form part of Industrial IoT networks are huge in number and growing all the time. Furthermore, reports of data loss and corruption, access intrusion and distributed (DDoS) denials of service have been growing at an alarming rate. The IIoT has its origins in traditional industrial automation. In the past the focus in manufacturing has been on

IoT Now - December 2016 / January 2017

The timely transfer of, and taking correct actions based on, the information in a production line system depends on sufficient security protection. This is important in industrial IoT since most operations depend on the transmission and receipt of real-time data. Trustworthiness of data is key in industrial IoT; without sufficient security, there can be no trust. Every element in the supply chain is at risk; in all cases, security must be designed in from the outset, not as a bolt-on afterthought. IIoT solutions are increasingly incorporating elements of security at different points, such as in the links between secured communication subsystems to ensure coverage of all parts of the supply chain. These may involve hardware, operating systems, embedded security and the application layer and other parts, and are being independently developed by several different supply chain players for a variety of needs. The IoT is increasingly powering critical devices in industrial systems such as production lines and power grids, not to mention medical devices such as insulin pumps. The damage from failing to protect such systems will rise exponentially. Some of the highest risks from hacking of IIoT systems come from connected devices in widespread use, from computers, smartphones and various other smart devices. ▼

Hence the sector needs to do more to get ahead of the curve and be more proactive, compared with the reactive status it currently holds, waiting to see where the next major threat will be.

Vulnerabilities in the industrial IoT environment

ANALYST REPORT

• There will be new protocols in addition to those utilised today, some more secure than others. Implementers will have to select the best-suited protocols for products and IoT enabled services. That said, no one device is 100% secure today • The ever increasing number of networked devices some of which are remote or inaccessible increases their vulnerability to breaches • Secure over the air firmware updates to IIoT devices are necessary but risky as they introduce points of vulnerability. In September 2016, the Industrial Internet Consortium published a report detailing a security framework for the IIoT. The report states that five IIoT characteristics – safety, reliability, resilience, security and privacy will act as the pillars of trustworthiness in IIoT systems. It also defines risk assessments, threats, metrics and performance indicators to help business managers protect their organisations. To ensure end-to-end security, industrial users must assess the level of trustworthiness of the complete system, however achieving this in an industrial setting means dealing with many levels and dimensions of complexity.

How to introduce security in the Industrial IoT There is no single approach to the implementation of security in all M2M solutions. Hence there are different security approaches being taken by different market sectors to address different threats, trust requirements, vertical markets, communications methods and more in the appropriate ways. There are also different levels of security that need to be implemented, depending on the severity of the security breach, with mission critical systems requiring the highest level of security. Some of the main factors defining security include: • Confidentiality – Ensure that data and activity is protected against unauthorised access • Authentication – Confirm data arriving or leaving is genuine and identify the source and recipient. At the receiving end, permission must be granted to decrypt and utilise the data. Authentication ensures that only the permitted party is authorised to do so

• Authorisation – Ensure that any request is one that should be allowed – this depends on the ability of devices and services to come to reasonable decisions about the authenticity of the people and machines using them • A root of trust – A set of unconditionally trusted functions, typically linked to a computing engine, because it must perform actions. M2M and IoTconnected devices are coming to depend on chips to establish their system's root of trust. Without a trustable base of hardware like a chip to build upon, seemingly perfect protections like secure boot can be compromised Hence the imperative is to protect data – both at rest and in transit – by making sure that data sent across the cloud is always encrypted, all the way to the end application. Significant effort is therefore required in the identification, authentication and authorisation of all the above components as well as their users. With the advent and spread of the eSIM, there are many existing SIM based use cases that are going to become more widely used for manufacturing IIoT security. Moreover, more use cases will be enabled by new roots of trust.

Smart city What is a smart city? The term smart cities refers to the broad concept of using technology to gather and analyse city data in order to increase efficiencies in city operations and improve quality of life for citizens. Broadly speaking, it brings together city activities ranging from networks of local businesses, local government to education, healthcare, transportation and utilities. Each activity produces different sources of data that can be integrated, enabling a systemic view of the city. By collecting and cross-analysing large amounts of data from diverse sources, cities aim to understand the linkages between these different activities, and how integrating these systems may be exploited so that the city may understand how it works as a whole. All cities are unique with their own priorities and preferences – so there is no single blueprint for architecting a smart city solution. How cities work is also changing. In the 21st century, their workings will be based on their digital infrastructure and the data generated from this. The big data that is captured and analysed from the broad range of connected objects will inform how this data is analysed, managed and used for decision making, so as to provide best value for the cities and their citizens.

▼

Recent risks have been identified as a consequence of internet technology becoming more complex and sophisticated, for example: • The transition from IPv4 to IPv6 – the future IPv6 will reportedly support trillions upon trillions of devices, so assuring security will be a proportionately larger challenge

IoT Now - December 2016 / January 2017

Vulnerabilities in the smart city environment Security is defined as preventing illegal access to information with the ability to corrupt data, putting into doubt the integrity of the data itself and compromising its authenticity. It also protects against attacks that cause physical disruptions in the availability of city services. As digital citizens are more and more instrumented, with data available about their location and activities, privacy is eroded. Hence the legal concepts of a citizen’s right to privacy are intertwined with the challenge of cyber security of the smart city. Wireless sensors now control a growing portion of the city infrastructure from traffic lights to water management systems, and smart city applications are becoming everlarger targets for cyber terrorists. To date, the kinds of devices typically deployed to run critical national infrastructures have relied heavily on the isolation of their networks, to avoid being breached. In parallel, whilst spending on smart city technologies and sensor networks has escalated, in many cases insecure legacy systems are involved, and connectivity to the internet opens the door to hacking. Moreover the more sophisticated the device, the higher the probability that it has vulnerabilities and/or configuration flaws, and smart city component devices will likely be targeted by cybercriminals. In parallel, back office city infrastructures and functions are also changing with new interconnected systems for monitoring, control and automation. Security in the networked city is significantly more complex than in existing M2M applications or traditional enterprise networks. The involvement of the cloud and the internet adds an additional dimension of risk compared with traditional embedded networked systems. As embedded devices become increasingly networked, extra measures must be taken to ensure overall security.

they receive, leaving them open. If the sensors in the devices are breached and hackers input fake data, this could potentially lead to widespread traffic jams or crashes. City networks may also be vulnerable to threats from internal sources, such as infected devices city employees may bring to work. All-in-all, the current attack surface for cities is huge and wide open.

Identifying points of attack In 2015, the National Institute for Standards and Technology (NIST) in conjunction with the Cyber Security Research Alliance (CSRA) hosted a workshop entitled ‘Designed-in Cybersecurity for Smart Cities: A Discussion of Unifying Architectures, Standards, Lessons Learned and R&D Strategies’. The workshop identified the following risks: • The web of interconnected sensors and devices that define a smart city provide countless points of entry for an attacker seeking to compromise systems • Cyberattacks may have physical consequences if smart cities rely on collected data to make automatic adjustments to real-world conditions. For instance, interfering with the traffic data relied on by traffic lights could lead to car accidents • Smart city operations will involve the collection and storage of large amounts of data from many disparate sources, necessitating the use of cloud services. Smart city architects will need to ensure that data in transit as well as data in storage will be secure • Smart city architectures will be composed of devices and sensors from different vendors, not to mention the hardware and software. Systems engineers will need to continually update the security settings for a diverse range of devices in order to ensure that a security flaw in one component does not compromise other parts of the system. How to introduce security into the smart city In May 2015, a group of security specialists, including experts from Kaspersky Lab and IOActive Labs launched a not-for-profit initiative entitled Securing Smart Cities. They claim that no comprehensive system as yet exists for vetting security and responding to cyberattacks at city level, and aim to remedy this by addressing existing and future cybersecurity problems of smart cities through collaboration between companies, governments, media outlets and other not-for-profit initiatives and individuals across the world.

According to IOActive for example, some 200,000 traffic sensors in cities around the world are vulnerable to a hack; these devices may communicate traffic information wirelessly through texts that fail to authenticate the data

The group plans to set up basic cybersecurity checklists for smart cities, including properly installed encryption, passwords and systems that can be easily patched for security holes. It also seeks to set up better security

IoT Now - December 2016 / January 2017

▼

What is more, smart city infrastructures develop faster than security tools do. The scenarios of such attacks come from the characteristics of such devices: for one, many such devices are in public places, therefore accessible, and with an internet connection. They may process personal data including financial data. Examples include touch screen payment kiosks, cycle rental kiosks and government office terminals. However as research from the Securing Smart Cities Initiative shows, many such terminals do not have the reliable protection that prevents the user from exiting the kiosk mode and gaining access to the operating system functions.

ANALYST REPORT

The organisation offers a smart city technology adoption guide that lays out guidelines for adopting smart city technology. As new points of connection are introduced, the city should have processes to methodically evaluate the security risks and appropriate mitigations for each connected system inside each organisation. The Smart Cities Council has also published its Smart Cities Readiness Guide. This contains 27 foundational principles. Of those, 17 are universal principles that apply to every department. One of the most important is to have a citywide cybersecurity policy in place.

security measures all the way to the vast and diverse number of edge devices that will be deployed over the next 10-15 years. To achieve that robustness, the industry should move along common frameworks and guidelines. The insight has shown how the segments analysed are exploring those. There is also an increasing attention on guidelines at national and super-national levels through initiatives such as the IoT Security Foundation in the UK and the Cybersecurity Strategy for the European Union. Among all those, the 20 Critical Security Controls â&#x20AC;&#x201C; shown in Figure 5 â&#x20AC;&#x201C; defined by the Council of Cybersecurity, a non-profit organisation of cybersecurity experts with global scope, have become almost the de-facto set of guidelines for security in the IoT. â&#x2013;ź

requirements and approval procedures for the vendors of these critical systems. In addition, it wants to run regular tests to look for loopholes, and set up emergency response teams that can compile reports of vulnerabilities, coordinate patches and share that information with other cities.

Figure 5. 20 critical security controls by the Council of Cybersecurity

Security and privacy is defined as an enabler which cuts across all the city responsibilities. For example, where energy intersects instrumentation, there are devices such as smart meters. Where it intersects data management, there are meter data management systems (MDMS). With this type of structure, it is possible to understand why it is helpful to share infrastructure, share policies, share costs and share data between departments. A city becomes truly smart when it takes a holistic, integrated view, when it shares infrastructure rather than duplicating functionality in each department and creates citywide policies: hence the importance of having a citywide cybersecurity policy across all functions.

Providing security through common frameworks and guidelines This market insight has introduced the main concepts of IoT security and explored how security is approached in three contexts of great relevance for the market place. Even though the approaches are different because of the context in which they are applied, they provide the IoT community with a common message. To enable a safe, secure and robust Internet of Things it is critical that security can be achieved from end-to-end, from the servers and cloud services that are subject to tradition IT

IoT Now - December 2016 / January 2017

ANALYST REPORT

The 20 critical security controls become particularly relevant in relation to the continuous emergence of edge devices, which are, currently, the component of the IoT vision perceived to be more vulnerable. The challenge is to provide devices with robust architecture, but still easy to use for end users. Therefore, the 20 controls can be the guidelines to evolve existing IoT device architectures â&#x20AC;&#x201C; secure element, secure microcontroller, secure microprocessor â&#x20AC;&#x201C; and make them safer. This Insight will not explore the matter further, but highlights the importance of achieving robust security at the edge device level because these are the entry points of IoT systems in an ubiquitously connected world. Finally, it is also important to highlight that thinking about security at application level is also critical, considering that applications are the interface between connected objects and users.

Conclusion IoT security is not an easy topic to grasp, but it is one of vital importance for the safety of the environments the Internet of Things is shaping and transforming. Achieving that requires common and synergistic efforts of all the stakeholders involved. Thatâ&#x20AC;&#x2122;s a long list comprising governments, standard and certification bodies, owners and users, system integrators, telecoms operators, OEMs, silicon vendors and IP vendors. Those efforts will translate into shared frameworks guiding the development of the necessary security tools for all the components of an IoT solution in a specific context.

Beecham Research is a leading market research, analysis and consulting firm, specialising in the worldwide M2M/ Internet of Things market. We are internationally recognised as thought leaders in this area, where we have deep knowledge of the market dynamics at every level in the value chain. We are experts in M2M/IoT services and platforms, and also in IoT solution security, where we have extensive technical knowledge. We explore the impact of the Internet of Things in various sectors and are also the leading analysts in satellite M2M. Our range of clients includes component and hardware vendors, major network/connectivity suppliers (cellular, fixed, satellite, short/long range), system integrators, application developers, distributors and enterprise adopters in both B2B and B2C markets. www.beechamresearch.com

IoT Now - December 2016 / January 2017

INTERVIEW

Nokia makes impact in IoT with new platform offering Michele Mackenzie, principal analyst at Analysys Mason, talks to Jason Collins, the vice president of Internet of Things marketing at Nokia, to discuss the company’s approach to IoT from technology to ecosystem and business models

Jason Collins: The big news for Nokia last year was the purchase of Alcatel-Lucent. This opened the opportunity for Nokia to have a broad strategy around IoT. We have products and solutions at all layers of the IoT stack, but it’s not just about the technology. There is also growing recognition in the industry of the role of business models and ecosystems. The IoT is about the business models that are facilitated by this new technology. We can have strong products but we need to pay attention to all the other products that are in the market place and integrate those with ours to create new value for the customers. That’s where our ecosystem – the IoT Community, comes into play. MM: Nokia has a long heritage in connectivity. What are your key focus areas now and how are you approaching optimised networks for the IoT? JC: Customers are considering many different networks as they move towards an IoT optimised architecture. That demand means we support a wide breadth of technologies but we will always take a standards-based approach. We view LoRa as a standard because the LoRa Alliance is an open, non-profit organisation defining LPWAN protocols around IoT. Standards to us are open definitions of how products can interoperate,

encouraging competition and allowing the market to decide which products win and why. I view LoRa and the 3GPP LPWA standards in the same way that I saw Wi-Fi and LTE six or seven years ago. Today nobody is questioning whether I need Wi-Fi or LTE – I need both. Likewise, LoRa and 3GPP standards will co-exist and serve different use cases. NB-IoT will be used where a reliable connection for mission critical applications is required, for example. LoRa will serve other use cases. We are trialling LoRa currently to support an environmental solution and our Impact platform is used to manage the devices in the trial. We will also support LTE-M and it will be relatively straightforward for operators to add LTE-M services as our network architecture and radios can be upgraded via simple software updates. MM: What platforms and technologies does Nokia offer to support operators in the IoT? For example, application development, security and connectivity management? JC: Nokia provides a broad portfolio of technologies across the stack. In addition to supplying the devices and sensors and the connectivity solutions, our IoT platform, Impact, provides the building blocks to manage the device to the connectivity all the way through to building and managing the application. ▼

Michele Mackenzie: Can you summarise Nokia’s approach to IoT?

IoT Now - December 2016 / January 2017

Security is a huge discussion. There is a dawning realisation that the IoT requires an end-to-end security proposition

Nokia has a strong heritage in device management with over a billion devices connected to its solution. In IoT there are potentially thousands of devices connected to a given solution. If there is a security breach for example, you don’t want to shut down the whole network which would incur huge costs. You need to be able to isolate infected devices. Device management will be one of the critical lynchpins of the IoT. We also provide data mediation and security solutions. MM: IoT security has suffered some setbacks recently with several high-profile distributed denial of service (DDoS) attacks dominating headlines. How is Nokia addressing this issue? JC: Security is a huge discussion. There is a dawning realisation that the IoT requires an end-to-end security proposition. There has been some work in the industry around how to secure the devices but we believe that only securing the device is a losing proposition. There will always be devices that can’t be secured because they don’t have sufficient computing power or memory. Nokia’s approach has been to focus on the network to ensure that those devices cannot affect the whole solution. The recent security attacks were caused by devices installed in homes with default passwords left unchanged. That’s challenging to fix but, with the right security analytics tools in place, a network could recognise the device’s security software, manage it effectively and detect anomalies in that device’s traffic profile. Then the device management platform or network management tools can fix the problem. Our solution creates a key differentiator for our network service provider customers.

▼

MM: There is a lot of focus on data mediation and analytics but this is still a relatively new area. Do you agree?

IoT Now - December 2016 / January 2017

INTERVIEW

JC: This piece of the IoT solution is often under-promoted. To put this into context market statistics around IoT are overhyped. What is the size of the IoT relative to something which we can understand – the internet? If you look at the internet of 2013 compared to 2020, it will be seven times the value of 2013. Then look at value of IoT based on the number of devices that are projected in 2020 and it could be potentially 36 times the value of the internet today. It’s huge but, when you consider that the IoT today is still much smaller than the internet, there is an enormous gap between the projections and the reality. What drove the internet forward was the killer app – search – which allowed data interoperability but that is missing in the IoT today. Jason Collins: Impact provides the building blocks to manage the device to the connectivity all the way through to building and managing the application

Regulation may help to some extent but the reality is that the cat is out of the bag. It will be too difficult to regulate all devices in the IoT

MM: So, what is the killer app for the IoT? JC: In contrast, the IoT is not yet the Internet of Things but more a set of M2M use cases and there is a focus on use cases because we are looking for the killer app, the equivalent of search for the internet. Which is why our horizontal platform, ADEP (Application Device Enablement Platform), is important. The industry will focus on use cases to generate near-term value but it’s also an opportunity for companies to think about how they interconnect people with the value of the things. ADEP is a core component of Impact. It is standards-based and facilitates interoperability of data. It provides an opportunity to create the IoT rather than M2M use cases. That’s not to discount the need for use cases. People need to understand what the good use cases are but if you want to become the next Google you need the platform and you need to interconnect data. A lot of the money in IoT will be made from the analytics. MM: Do you think that regulation has a role to play in securing IoT devices? JC: Regulation may help to some extent but the reality is that the cat is out of the bag. It will be too difficult to regulate all devices in the IoT. Even if a government does impose regulation on devices it will only be national, not global. The approach to IoT security should be multi-pronged. There should be some regulation but also best practice. For example, device manufacturers may certify their devices. And it will be critical to have standards-based platforms for interconnectivity so that there is a standard way to access the IoT device. But the most interesting approach to watch in the next two to three years is the role of the network in providing security for the IoT.

JC: Last year at Mobile World Congress we announced our IoT

IN ASSOCIATION WITH NOKIA 40

IoT Now - December 2016 / January 2017

▼

MM: In which areas are you most active in working with partners and building the ecosystem for IoT?

There are lots of great ecosystems out there but most of them are point-to-point partnerships and focus on how partners can use each other’s products

Community which is an open ecosystem to explore new business models for the IoT. When you consider the business models for IoT it is rare that only one company is involved. Multiple companies contribute to a single project. We have built an open ecosystem to collaborate on understanding the value chain and business models for the IoT. The IoT Community’s focus is to take off the shelf products and integrate them with other companies’ solutions. There are currently 350 companies in our ecosystem with 60 companies working specifically on IoT business models. MM: So how does the IoT Community work? JC: We pick a vertical or set of verticals and we conduct an ideation session with partners involved in that vertical. Each company has a different role in the value chain and we analyse the opportunities and challenges, the social and industrial trends. We consider what sort of value chains can be created to meet the requirements and then we prototype the solution, test the business models with a key customer and then trial them in the market. We publish the results. Experience has taught me that technology is rarely the main challenge. It’s the business conditions that surround the technology that create obstacles. We assess how we can address those challenges and build the market. MM: How is this different to the many other alliances that are forming around the IoT?

stakeholder may be interested in it as a site to place small cells, others will see it as advertising space and the transport company will seek to prove its service key performance indicators (KPIs). This is now being deployed by an integrator partner. The ecosystem is open. Anybody who contributes can launch products based on what we have learned. MM: What does Nokia mainly gain from the ecosystem initiative? JC: Some of this is market development to create demand and demonstrate to our customers how they can create business value with the IoT. It also helps us understand the broader market and become faster at execution. Of course, we do this to generate new business but sometimes we don’t work on the projects that arise from our Community. It’s not always our product or solution that is accelerated by the process. MM: Nokia has traditionally targeted its solutions at network operators. How are you targeting enterprise customers with your IoT offering? JC: Following the acquisition of Alcatel-Lucent, we have good relationships with communications service providers (CSPs) beyond mobile network operators. One way we sell to the enterprise is through the CSPs. They are important channels for our products.

MM: Can you provide an example of one of your IoT Community projects?

But we also have a direct sales model to enterprise. We have a set of targeted verticals including: government (smart cities), transportation, healthcare and public safety. We picked a set of enterprise verticals that match our product set and a lot of that is IoT and mission critical networks. We are developing good relationships with the automotive industry in device management. An over-the-air (OTA) firmware update in automotive is a promising place for Nokia because we are very good at device management.

JC: Yes, we conducted a trial of a project in New Zealand with several partners. The focus of the trial was on infrastructure that cities own. If those are transformed into smart connected infrastructure they can provide an interesting real estate proposition. For example, a bus shelter with a high bandwidth connection. One

In IoT Nokia is enhancing its perspective towards our customers. Instead of just selling boxes into the engineering department Nokia is understanding customers’ business and delivering products to improve their business process. The IoT makes us more collaborative and helps our customers’ business succeed.

JC: There are lots of great ecosystems out there but most of them are point-to-point partnerships and focus on how partners can use each other’s products. These are good but our approach is multi-lateral. We don’t involve one company; we involve five companies with different roles in the value chain.

IoT Now - December 2016 / January 2017

www.nokia.com

SMART CITIES

Creating cities of the future â&#x20AC;&#x201C; the proliferation of smart Across the globe, todayâ&#x20AC;&#x2122;s cities are facing dramatic social, economic and environmental transformation. The number of urban residents continues to grow by nearly 60 million every year, putting increasing strain on already heavily pressurised resources and infrastructure. We are turning, writes Alison Vincent, to technology to help solve some of these issues and help us run more efficient cities that use fewer resources and ultimately provide residents with a better quality of life overcome challenges specific to that city environment, from transport congestion to access to public services. Different cities across the world are at different stages in adopting smart technologies, some running projects in localised districts to tackle a specific issue, such as air quality, while others are experimenting with city-wide connected platforms that aim to connect the whole city, over time, to what will essentially become its own dedicated operating system. â&#x2013;ź

The fact is, even without a conscious effort by governments or local city officials; cities are getting smarter all around us. Every connected thermostat, Wi-Fi enabled security system or connected car is making its mark, connecting to a city network and helping citizens to better manage their lives. Yet the concept of a smart city goes so much further than that. The latest innovative technologies are helping us to make our cities smarter by collecting and analysing information about the urban landscape around us, improving how it works and helping us to

The author is Alison Vincent, the chief technology officer for Cisco, UK and Ireland.

IoT Now - December 2016 / January 2017

CityVerve is the UK’s demonstrator for Internet of Things (IoT) and smart cities

All about the people Yet it’s not about technology for the sake of it. Cities are all about the people and it’s essential to bring the two together in a harmonious way. Technology has to enhance people’s lives and connecting a city and making it smart has to start with the needs of the citizens it already serves. It requires an in-depth understanding of the challenges faced by its unique inhabitants, which will vary broadly from one place to another. Therefore, partnerships between public, private sector organisations and companies with extensive expertise in the field, are the key to establishing a well- balanced smart city that provides benefits to all.

Creating cities of the future In order to enable the implementation of such innovative technologies and assist in accommodating the growing needs of modern communities, cities must have the right technology infrastructure in place. To say it in other words – cities must roll out the right network that can facilitate intelligent data collection and serve as the platform, or the backbone, for the smart city ecosystem.

Take the UK’s Manchester’s CityVerve project, for example, which is being delivered by a consortium of 21 organisations – including Cisco, Manchester City Council, Manchester Science Partnerships, the University of Manchester, BT and many others. It aims to bring together the brightest minds and pioneering use of Internet of Things technologies to redefine smart in the context of a living, working city and create a blueprint for smart cities worldwide. It is being designed to create endless possibilities for new businesses, improvements to transport, education and healthcare services. The project actively engages with citizens and has plans to empower them, though technology, to be more involved in the city. Cisco is also enabling cities from all around the world to turn their community data into action through its Cisco Smart+Connected Digital Platform, a cloud service that helps cities benefit from the Internet of Things. It allows data to be securely collected from 3rd party sensors, street cameras, devices, and other connected systems and objects in real-time. This helps city departments and agencies to make decisions to improve operational efficiencies, increase revenue, and reduce costs in areas such as street lighting, parking, traffic flow, environmental sensing, waste management, safety and security, and other city services. One of the challenges currently facing smart city deployments is the sharing of data, be that as a result of government siloes, caution over data security or regulatory concerns. Cisco’s Smart+Connected Digital Platform helps city departments and agencies to benefit from the securely shared data, helping city leaders to make fully informed decisions. Regardless of the project, city or country involved, the benefits of realising a fully-functioning smart city are markedly similar; to realise new revenues, save costs, improve efficiencies and improve the quality of life for the citizens who live there. Technology is set to connect governments, organisations, communities and individuals and empower citizens in ways we thought were the stuff of fiction just a decade ago.

IoT Now - December 2016 / January 2017

CREATE THE FUTURE

Over 900 companies have already joined. Has yours? Showcase your company, products and services for free on the newest platform dedicated to the IoT. Register today to connect, network and interact with your future customers from around the world.

iotglobalnetwork.com

SECURITY

Organisations look to back end and device security to survive, thrive and achieve compliance in IoT As IoT deployments accelerate, an area of growing concern is security. The likelihood of billions of additional connections and the proliferation of endpoint devices in the form of IoT modules, sensors and other equipment is radically increasing the threat surface that organisations need to defend, writes Dr Mihai Voicu The security news is continually glum as incidences of cybercrime proliferate and criminals utilise new technologies to spread their malicious acts across the connected landscape. The issue is well-known and organisations are investing heavily in technologies to combat the threats and enable them to cope better when the almost inevitable attack happens. IoT, with its enormous footprint, is under particular threat and all stakeholders are paying attention to how to secure this huge market place. Gartner expects worldwide spending on IoT security to reach $348 million in 2016, a 23.7% increase from 2015 but it believes IoT security market spending will increase at a faster rate after 2020 as improved skills, organisational change and more scalable service options improve execution.

â&#x2013;ź

By that point, the analyst firm predicts that more than 25% of identified attacks in enterprises will involve IoT. It warns that IoT will continue to account for less than 10% of IT security budgets in spite of this. Organisations that deploy IoT solutions therefore will have to be clever with their security investment and, for that reason in part, Gartner predicts that more than half of all IoT

IoT Now - December 2016 / January 2017

SECURITY

The author, Dr Mihai Voicu, is chief security officer at Telit

It’s clear the stakes are becoming ever greater. We’re now in a world in which a tyre pressure sensor on a vehicle can be hacked, enabling cyber criminals to gain control of other vehicle systems with malicious intent. However, it’s important not get swept away by a wave of paranoia even while recognising threats are real and therefore they need to be prevented and controlled. We’re at a stage now where organisations are acknowledging that security attacks are a fact of life and breach occurrences are a case of when not if. As a consequence of this, knowing how to handle an attack is growing in importance over learning how to prevent attacks themselves. The cure, alarmingly, is becoming more significant than the prevention. Concern about the security of early IoT deployments has emerged as the leading impediment to new IoT projects, with 46.2% of 533 respondents to a 451 Research survey expressing concern.

What is different about IoT security? IoT security is little more than an extension of traditional internet security. The fundamentals are that endpoint devices exist which need to be secure, the network itself needs to be secure and the servers and IT architecture at the other end must also be secure. That’s easily said and, regrettably, sometimes easy for criminals to hack. There are two core aspects to security in IoT: securing the endpoint devices and securing the control plane of IoT solutions. A key aspect of the

security focus is on how to secure the data from sensors and the collection of information that is relevant to a particular customer. At the same time, equal or greater focus is devoted to the security of the control plane of IoT solutions. The majority of insights into IoT vulnerabilities today that are publicly available are related to how the criminals got to the data. The issues do not concern how they actually gained control of the data because just getting to the data today means that you have the ability to utilise it. It’s therefore important that IoT security addresses how to prevent criminals getting to the data as a priority. If they can’t get to it, they can’t steal it. Prevention may be better than the cure after all.

Secure the endpoint devices One of the most relevant aspects of IoT security is the multiplicity of endpoint devices and the strength of their security. The majority of security penetrations are coming from vulnerabilities that result in compromised devices. This is partly because of the price point of endpoint devices is becoming that of a novelty item and therefore the pricing does not support inclusion of security. However, it’s important to consider that hacking an endpoint doesn’t offer much value to a criminal. When you look at an endpoint device, it may be easy to get into but what can you do once you have access to it? The device therefore may be just an entry point and organisations may feel they can maintain security utilising secure technologies in the operations and control plane of the IoT platform, but they should be aware that these too can be compromised at the device level. Such back end security technologies are robust but, if the correct policies and processes

▼

implementations will use some form of cloudbased security service by 2020.

IN ASSOCIATION WITH TELIT 46

IoT Now - December 2016 / January 2017

The majority of insights into IoT vulnerabilities today that are publicly available are related to how the criminals got to the data

Secure boot Endpoint devices present a huge attack surface for cybercriminals to exploit but in themselves are not valuable for a criminal to hack. Nevertheless, Telit has been working with the GSMA to create security guidelines for endpoint devices. Efforts have focused first on what is put on the endpoint device, which is the interface with the cloud or network. A secure boot capability, which ensures that when an endpoint device’s communications module is booted a trusted, secure environment is created, has been developed by Telit to ensure a secure anchor into an endpoint device exists. This secure anchor means that as soon as the chip fires up and the firmware initiates, every single line of code is assured to be from a trusted source. Firmware has many different inputs including those from cellular operators, from chip developers and from module providers. Telit’s secure boot capability ensures that these, plus the customer firmware, are trusted. This comes together to assemble a series of firmware that users know is trusted and has no possibility of allowing or enabling any malicious code to be injected. Secure boot capability helps strengthen the endpoint device and is available today. Once this trusted firmware environment exists it becomes less important whether an endpoint device is a high- or low-end product. High-end endpoint devices have a lot of maturity when it comes to security and a lot of security can therefore be applied to them. However, the

IoT Now - December 2016 / January 2017

majority of endpoint devices in deployment are low-end devices without operating systems that might include a microcontroller. It’s not uncommon to see a module that has the capability to support a microcontroller and that opens up security threats.

Secure the aggregation points Beyond the module and the network, the next points of security weakness are the aggregation points at which data from modules are brought into the systems of an enterprise. First comes the gateway but the major aggregation point is the IoT platform which makes the connection into the enterprise. This point of aggregation is where all the gateways connect and, from there, multiple ways of getting data out exist. The data itself is coming in from a multitude of inputs, including: An asset gateway which provides access from a hardware perspective into the cloud. At the same time, Telit offers an agent in specific gateways that creates a secure bridge into IoT cloud so the enterprise can receive information in a secure way. An enterprise gateway has a similar agent that securely connects into the cloud so, once the data is aggregated in the cloud, an enterprise will want to extract it and deploy it into enterprise systems such as ERP. The gateway can enable a secure bridge from the cloud into the interfaces of each enterprise systems. In essence, data can be encrypted by agents in an asset gateway and decrypted by agents in an enterprise gateway ensuring data is secure in the cloud. ▼

are not put in place by the enterprise, criminals can get round them by hacking devices and fooling the back end into believing that they have not been taken over and remain legitimate.

SECURITY

Endpoint devices present a huge attack surface for cybercriminals to exploit but in themselves are not valuable for a criminal to hack

Security enabled by connectivity management Another aspect is connectivity management. Customers need to have secure connectivity but this is a complex situation. If, for example, a Telit platform resides in an Amazon Web Services environment in which it can operate securely, the asset gateways that are deployed on an oil pipeline or in fleet vehicles also have to be considered carefully. The challenge is how to bridge the two situations one of which is a secure environment and one of which is composed of the multiple remote endpoints which need to be specifically secured. This can sometimes be easily addressed with on device security but it is often unclear who is responsible for securing the assets. Cellular modules used by customers, for example, often need a data subscription and a SIM card and that subscription needs to be managed effectively so the connectivity is attached to the proper carrier and the proper module to ensure security is maintained.

For example, if you take a fleet management system, the majority of customers own a fleet of trucks but sets of those trucks are operated by different companies. Users want the ability to segregate those trucks based on which company is operating them so there is a different level of security. This is why Telit offers so many layers of segregation so an operator can see their trucks but a rival can’t, but the owner of the truck can still see all its trucks. Access to data in this scenario is required for devices and humans but it is only provided according to their roles and privileges.

The notion of end-to-end security is an attractive concept in IoT but so far it remains just a concept, with pockets of security interlinking to create a semblance of end-to-end security. The idea of platform security is central to this. On platforms such as Telit’s, there is intrinsically a list of security features available but, in some cases they are also dependent on the policies of organisations operating the platform.

In Telit’s platform approach it is emphasising the importance of being able to secure the control plane. For Telit, it’s critical how access to the underlying capabilities, rather than the platform itself, is given and managed. Totally different levels of segregation for user access are enabled as well as a very strict approach to what needs to be added with change management control in place. The same person does not perform requests, approvals and execution and it’s vital to ensure that the impact of infrastructure on operations from a security point of view is minimal.

Humans typically have access to the platform but devices have different ways of being identified and authorised to connect. Each user and device has unique features when it comes to accessing

To learn more about the security challenges facing IoT, download the Telit whitepaper: ‘How to Create, Deploy & Operate Secure IoT Applications’ at info.Telit.com/iot-security.

Secure the platform

www.telit.com

the data itself. A device will basically publish information and the only way this can be done is through the use of APIs (application programming interfaces). This is because security is placed on top of APIs to enable devices and users to have access based on their roles. APl roles and security controls are encapsulated into an abstract concept called organisation.

IoT Now - December 2016 / January 2017

IoT CHALLENGES

Goodness suggested that a focus on business transformation is pulling in one direction and technology implementation in the opposite direction

Eric Goodness: Battle for IoT ownership rages

There’s a battle in the enterprise for ownership of chaotic IoT, says Gartner At the recent M2M Summit 2016 in Dusseldorf, Germany, Gartner’s Research vice president, Eric Goodness was blunt about the challenges facing the Internet of Things (IoT). These, he said, included a battle for IoT ownership, a bottleneck of problems facing anyone trying to prove the value of their IoT initiative, and a market characterised by chaos — at least until 2020. Jeremy Cowan reports

Clearly, the interest in this area is growing fast, as is a thirst for knowledge. He gave the example of a large real estate developer that builds manufacturing sites worldwide. They want to be able to provide their clients with IoT-as-a-Service (IaaS) so that none of their sites will now be built without IoT enablement. Goodness described seven market trends. The key trends (and his examples) are: • Technology vendors will broaden their portfolios (Cisco has acquired Lancope, Jasper, and ParStream) • New vendors will move into IoT (Autodesk acquired SeeControl) • Companies will establish new vertical business

IoT Now - December 2016 / January 2017

•

capabilities using IoT (British Gas acquired AlertMe, Vodafone bought Cobra Group, and Under Armour acquired Endomondo and MyFitnessPal) Companies will re-target existing technologies to exploit IoT opportunities (IBM will target Watson on IoT, Kony will develop IoT apps) Vendors will acquire adjacent capability to enable new business (IBM acquired Weather Company, Sierra Wireless bought MobiquiThings, Accel and Maingate) Ecosystems and standards battles will rage (these will include Google, Apple, Industrial Internet Consortium, OpenFog, Open Interconnect Consortium, Wireless IoT Forum, and Thread Group), and All of this will slow market growth in some areas (for example in security, and IoT platforms).

“There is a battle for IoT ownership,” said Goodness. He suggested that a focus on business transformation is pulling in one direction and technology implementation in the opposite direction. The owners of the IoT initiative in an organisation back the business transformation; these may include the chief executive, chief operating officer, and chief marketing officer, plus business unit leaders, backed by the chief ▼

Goodness had a stark warning to present to attendees: “We believe that, in the short term, the M2M sector (machine-to-machine communications) will underperform in bringing services to market,” he said. He also made a call for value-added services to accelerate Internet of Things (IoT) adoption. In the last year, he said Gartner has received 576 questions in regard to M2M*, compared to 110 in the previous two years. However, the firm has received 11,100 questions on IoT**, compared to just 626 in the previous two years.

IoT CHALLENGES Eric Goodness: Companies trialling IoT affected by paralysis of analysis

One of the Strategic Planning Assumptions (SPAs) that can be made about IoT is that, by 2018, 20% of the top global enterprises will implement mobile virtual network operator (MVNO) capabilities of some scale in support of their solutions

information services officer. Meanwhile, those with a focus on technology implementation may include the chief information officer, perhaps supported by the chief technology officer and the enterprise architecture (EA) team.

Internal IoT initiatives For now, he sees IoT being championed by business units (BUs) in large enterprises. “Through 2018, return on investment (RoI) will drive the Internet of Things, dominated by simple use cases,” according to Goodness. He quoted a Gartner survey in Q3, 2016 of 529 organisations in the US planning or using internal IoT. Over three-quarters (78%) said they were aiming to optimise operations such as workflow management and supply. More than half (57%) stated that their focus was to improve asset management, for example by predictive maintenance of equipment. While 46% were focused on better buildings or facilities management through smart lighting, energy management, and access control.

External IoT services When asked what external IoT initiatives they were planning or implementing by Year End 2018, out of 441 US organisations 66% were working on smart, connected products that allow customer data to be received by the enterprise. New, nonrevenue-generating customer services, such as enhanced product features, were the drivers for 62% of IoT projects. Almost half (48%) were working on customer

orders from smart devices such as automatic replenishment, while 43% aimed to deliver new, revenue-generating services for customers. Finally, 8% spoke of work on connected homes.

IoT bottleneck Goodness believed there is a “paralysis of analysis” afflicting companies trialing IoT services. The factors blocking progress are a lack of (or lack of agreement on) device management, edge analytics, IoT protocols, financial investment, DevOps, APIs (application programming interfaces), and AEPs (application enablement platforms). These are fighting their way through processes of due diligence and proofs of concept, on their way to extended trials, risk mitigation and delivering business outcomes. One of the Strategic Planning Assumptions (SPAs) that can be made about IoT is that, by 2018, 20% of the top global enterprises will implement mobile virtual network operator (MVNO) capabilities of some scale in support of their solutions. Among the arguments supporting this assumption are that becoming an eMVNO (enterprise MVNO) allows global multinational corporations (MNCs) to scale IoT solutions across all their business units and product sets. There could also be huge capex and opex reductions. Set against that, said Goodness, most MNCs aren’t aware of the possibilities that becoming an eMVNO can offer. Many MNCs will be reluctant to invest in additional operations and management. More controversially, he suggested that communication service providers will remain a “reluctant provider” of IoT services for as long as possible.

*Gartner Glossary: Definition of M2M: Machine-to-machine (M2M) communications is used for automated data transmission and measurement between mechanical or electronic devices. The key components of an M2M system are: Field-deployed wireless devices with embedded sensors or RFID-Wireless communication networks with complementary wireline access includes, but is not limited to cellular communication, WiFi, ZigBee, WiMAX, wireless LAN (WLAN), generic DSL (xDSL) and fibre to the x (FTTx). **Gartner Glossary: Definition of IoT: The Internet of Things (IoT) is the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment.

IoT Now - December 2016 / January 2017

Berrg Insight wiill have six an nalysts prese ent at

Moblie Wo World Congre C ess BA RCEL ONA 27 FE EB - 2 MAR / 2017

Rickard Andersson

Johan Fagerberg

onas Wennerrmark Jo

Senior M2M/IoT Analyst

IoT/M2M Analyst

F lyst

Contact us for more informatiion about our M2M research series or to arrange a meeting. info@berginsight.com | Phone +46 31 711 30 91 Berg Insight - 13 years of leading M2M/IoT market research %DVHG LQ 6ZHGHQ ZH KDYH EHHQ VSHFLDOLVLQJ LQ DOO PDMRU 0 0 ,R7 YHUWLFDOV VXFK DV Ă HHW management, car telematics, smart metering, smart homes, mHealth and industrial M2M since 2004. Our vision is to be the most valuable source of intelligence for our customers. Berg Insight can offer numerous market reports, detailed market forecast databases and advisory services. We provide custom research tailored to your requirements including focused research papers, business case analysis, go-to-market strategies and bespoke market forecasting. 2XU FOLHQWV LQFOXGH PDQ\ RI WKH ZRUOGÂˇV ODUJHVW PRELOH RSHUD DWRUVV YHKLFOH 2(0V Ă HHW management solution providers, wireless device vendors, content providers, investment Ă&#x20AC;UPV DQG YHQWXUH FDSLWDOLVWV ,7 FRPSDQLHV WHFKQRORJ\ VWDUW XSV DQG VSHFLDOLVW FRQVXOWDQWV To date we have provided analytical services to 850 clients in 70 countries on six continents.

Berg Insight, Viktoriagatan 3, 411 25 Gothenburg, Sweden | www.berginsight.com

INTERVIEW

IT/OT integration brings significant challenges along with limitless opportunities IT infrastructure challenges are changing as a result of the rapid growth of the IoT. Various developments are enabling more effective operational technology (OT) integration as well as easier development, deployment and usage of innovative solutions deployed in the field. Roberto Siagri, the chief executive of Eurotech, talks to Bob Emmerson about the company’s plans in this expanded market IoT Now: What additional benefits will seamless integration with enterprise computing bring to the market?

IoT Now: What needs to happen in order to enable that transition? RS: Lots of things are needed and they are happening. Enterprise computing operates in an efficient, powerful, IT-centric environment. In order to enable seamless integration we need to re-architect the underlying OT infrastructure. That entails using computational power at the edge in scenarios where it makes sense. Chipsets pack a lot of processing power and they are also getting smaller and cheaper, which means that it’s cost effective to embed multi-core chips sets in intelligent gateways where they handle complex tasks like real-time analytics at the local level. This capability is provided by third party software embedded in our gateways and it’s enabled and managed through our IoT middleware and our IoT integration platform. This approach means that there is no lock-in to a particular data analytics vendor.

We need new ways to be taken in order to make IoT a core component of digital transformation, which is reshaping virtually every aspect of business and our experience as customers. Enabling IoT by integrating the world of OT and the world of IT in seamless and non-intrusive ways is a key requirement.

It’s hard to overstate the importance of open source and industry standards. Also the fact that this is an ecosystem play: there is no one size fits all; no company has all the requisite knowhow and experience. Re-architecting the infrastructure should enable fast delivery of data from the field and it should be flexible, businesses need to be ▼

Roberto Siagri: That question goes to the heart of the matter. It will deliver two significant benefits. One is by facilitating digital transformation, which is set to impact on almost all aspects of our society. The other is that it will be disruptive. This is a benefit because it will lead to the development of brand new business models, models that open up new ways of thinking and of doing things. Right now we’re seeing too much old stuff being dressed up in new colours and being hyped to the hilt. However, the integration process itself should not be disruptive. Enterprises have made significant investments in IT systems and technologies, therefore adding IoT capabilities has to be done efficiently and in a way that maximises those investments.

IoT Now - December 2016 / January 2017

Roberto Siagri: Eurotech has been enabling endto-end solutions that integrate with enterprise back-office systems for more than two decades

prepared for changes that simply canâ&#x20AC;&#x2122;t be anticipated. The architecture should enable access to data from devices across applications, build relationships between data sources and take action in one area based on data from another and last, but by no means least, the architecture should be agile and enable the creation of customised, changing and evolving solutions. IoT Now: How has your background enabled Eurotech to become such a successful player in IoT? RS: Eurotech has been enabling end-to-end solutions that integrate with enterprise backoffice systems for more than two decades, starting with ultra-robust solutions developed for the oil and gas industry as well as transportation. The company has therefore accumulated a vast amount of knowledge and experience. From the very early days the company has been fully committed to open source. For example, Eurotech co-authored with IBM the MQTT protocol and offered it as open source code through the Eclipse Foundation. MQTT is used in a wide variety of OT applications. Hospitals employ this robust IoT protocol to communicate with medical devices; it is used in smart buildings, Industry 4.0 solutions, smart energy solutions and is widely employed in rail transportation. We also have a solid understanding of integration challenges and solutions. Everyware Cloud, our M2M/IoT integration platform, unites the OT domain and the IT domain. It acts like an operating system for the IoT infrastructure. On the enterprise side itâ&#x20AC;&#x2122;s an application enablement platform while, on the operational side, it provides all the data, device and embedded application management required to effectively deploy and maintain distributed intelligent systems in the field.

â&#x2013;ź

IoT Now: What role does Red Hat play in your ecosystem?

IoT Now - December 2016 / January 2017

INTERVIEW

Both Eurotech and Red Hat contribute to and also make extensive use of open source technologies like Eclipse Kura, the popular open source Java/OSGi middleware and Kapua, the open source IoT integration platform

The companies’ competencies and products complement each other, with Eurotech being strong on the OT side and Red Hat on the IT side. The respective technologies allow the creation of an end-to-end, open source, enterprise ready IoT stack. I’d like to underline the importance of this unique combination. It enables the seamless integration of IoT devices in the field with the majority of enterprise IT infrastructures of different vendors, regardless whether deployed in a public cloud, private cloud or on-premise solution. Both Eurotech and Red Hat contribute to and also make extensive use of open source technologies like Eclipse Kura, the popular open source Java/OSGi middleware and Kapua, the open source IoT integration platform. Open source and Java are important pillars in both companies’ strategies. Moreover Red Hat has impeccable IT credentials: their products and services are secure, open, and trusted by more than 90% of the Fortune Global 500.

IoT Now: Where in the IoT stack are you deploying open source or Red Hat technologies? RS: The company’s infrastructure employs two pivotal components: intelligent multi-service gateways and the Everyware Cloud. In order to simplify edge device development, deployment and management, Everyware Software Framework (ESF) is embedded in the gateway. ESF is a commercial, enterprise-ready edition of Eclipse Kura, the popular open-source Open Services Gateway Initiative middleware for IoT multi-service gateways and smart devices. ESF simplifies application development for the smart edge devices. Everyware Cloud (EC) simplifies remote management of intelligent connected devices. In this case, the respective open source Eclipse project is Kapua. Once devices are deployed, ESF connects to EC to let users remotely connect, configure, and manage devices throughout their lifecycles, from deployment to maintenance to retirement. We’re also using Red Hat JBoss Fuse and Red Hat JBoss A-MQ technologies together with the Everyware Cloud IoT Integration Platform. JBoss Middleware provides cloud-native services, from developer tools to data management in order to develop applications faster, smarter, and more flexibly. JBoss A-MQ is a flexible, highperformance messaging platform that delivers information reliably, enabling real-time integration and robust connectivity. IoT Now: How are you addressing security concerns? ▼

RS: Red Hat has become a very important partner. The relationship that started when Eurotech became a Red Hat independent software vendor (ISV) Advanced Partner and soon led to the decision to team up to deliver joint solutions and architecture blueprints to customers across multiple industries. Both companies recognised the need to push intelligence to the edge of the network and to deliver solutions that provide complex, real-time event processing, business rules, data transformation and interoperability.

IN ASSOCIATION WITH EUROTECH 54

IoT Now - December 2016 / January 2017

This Big Picture schematic below reflects Eurotech’s experience and expertise in both the OT and IT domains. The OT experience goes back to the early days of M2M. IT expertise is reflected in the 100% use of open systems and standards. The company’s comprehensive end-to-end offer goes from smart connected devices in the field through to business applications running in enterprise environments.

RS: First of all, security in IoT projects is more than the combination of some perimeter defence security solutions like white and black listing, firewalls and encrypted communication channels. While these elements are important, we believe that strong security is needed not only for IoT platforms but also in devices in the field, which all need validated identities. Security in OT environments is significantly improved by incorporating proper authentication methods, the use/storage/management of certificates and especially an overall architecture and design that prevent many potential attack scenarios.

have implemented numerous distributed device solutions, the majority have been created and implemented together with partners that know the specific customer requirements and their operating environment. This is why our offer is largely based on a modular building block architecture. System integrators and ISVs can select the building blocks they need to ensure the best value to the customer. And since we are committed to open systems and industry standards, we enable an ecosystem of strong partners that can build on Eurotech’s solutions easily and cost effectively. IoT Now: How do you view the future?

The company’s IoT building blocks are designed in a way that offers the best-in-class authentication, based on X.509 certificates, plus secure communication and powerful software validation mechanisms. This all ties into other important aspects of secure IoT systems, including state-ofthe art network and system security, role based access control and secure management access. Furthermore, our IoT stacks/solutions are validated end-to-end and audited on an ongoing basis by external security specialists. Eurotech’s solutions enable a seamless flow of data: they are end-to-end solutions. However, a single solution cannot enable end-to-end security: there is no silver bullet; it is essential to look at the entire system holistically and address security at each potential point of failure. In turn, this indicates that security must be a fundamental part of the overall architecture of an IoT system – it must be designed in, not added afterwards. IoT Now: What does Eurotech’s approach to IoT mean for ISVs, system integrators or customers having comparable capabilities? How do those organisations use Eurotech’s IoT technology and solutions? RS: Although we have significant skills and experience and

RS: We’re very optimistic but we’re also realistic. IoT has been overhyped and while it’s a convenient term, it can also confuse the market and a confused market doesn’t buy, it waits. Therefore as an industry we should talk more about smart connected products and forget things as well as the internet. We’re migrating into a new era of networked computing that can include hundreds of thousands or even millions of intelligent end points. The ability to intelligently monitor and control those end points is revolutionising enterprise computing. But we are only at the beginning of a revolution. Chip technology continues to progress exponentially rather than in the gradual or linear way that we understand. By 2025, if the IoT delivers on its promise, we could realize savings of 30–50% on global logistics and shipping costs; 30–70% of the costs of personal mobility and transportation; 40–50% of energy, heating, and air-conditioning expenses. (Source: “Technology vs Humanity” by Gerd Leonhard). With so much on offer, when we have technology that can do pretty much anything, when thousands of corporate strategies are riding in IoT’s slipstream, we need to reflect what we really want and need. www.eurotech.com

IoT Now - December 2016 / January 2017

HYPERCONNECTIVITY

Cloud-based hyperconnectivity advances business Stephen Chadwick looks at the business value of hyperconnectivity and offers some guidance on its deployment to achieve sustainable enterprise wide innovation

Companies must be willing to replace current systems and processes in order to use data in better ways

Moving to cloud Hyperconnectivity offers companies competitive advantage by linking all parts of the value chain. The result is a world in which physical assets have become unnecessary for some of the most successful hyperconnected businesses. For example, Uber owns no cars but is the world’s largest ride-for-hire company while Airbnb has become the world’s largest accommodation provider – without owning any rooms. Companies today are faced with the challenge of a complex and ultracompetitive global market. Strong competition from emerging economies coupled with increasing costs of innovation make product and brand differentiation a challenge. For these companies to thrive globally they need to speed up internal decision making throughout their value chains because it allows them to better respond to market demands with more innovative products. At Dassault Systèmes we see that one of the compelling benefits of the cloud is that it serves as an integration backbone for enterprise collaboration allowing data to be exchanged at any time and from anywhere using any smart device. This enables more confident decisionmaking based on accurate and current data which in turn efficiently drives innovation within a networked and connected enterprise.

To accelerate the move to sustainable innovation and more efficient business practices companies need to think strategically, not project by project. This is because everybody within and beyond the enterprise needs to be included through data access rather than creating islands and silos of data that are not or cannot be universally shared. Companies must be willing to replace current systems and processes in order to use data in better ways. And companies that do use big data have been found to generate higher revenues than those that do not, often through developing entirely new revenue streams based on the data that they hold.

Markets disruptors Further business value can be derived from cloud based connectivity because it facilitates information availability on any device. This means it can be easily shared among team members, partners, suppliers and customers. Organisations can become more agile because new team members have instant access to the platform with no requirement for IT skills. Many of the companies that Dassault Systèmes works with capitalise on digital data to become market disruptors. This is achieved by rethinking the business model around data rather than current procedures. By developing a portfolio of options that look long term at the commercial landscape, companies can build networks of partners and customers that interact to create mutual value. This involves aligning the value chain towards common goals so that new opportunities to address and enhance market demands and experiences can develop. Successful hyperconnectivity depends on technology, people, process and companies that promote speed, risk taking and experimentation based on all the company’s knowledge, and that

▼

An abundance of mobile devices, sensors and the Internet of Things (IoT) has enabled businesses to transform themselves and their customer’s experiences on the cloud. Companies, organisations and communities can now collaborate, innovate and develop new relationships that deal with challenges and develop new business and social models. Understanding hyperconnectivity is the first precept to taking the right actions to capitalise on the business benefits that it offers.

IoT Now - December 2016 / January 2017

The author, Stephen Chadwick, is managing director EuroNorth at Dassault SystĂ¨mes

of its ecosystem, rather than a subset that does not reveal the complete picture.

Is it safe? For many companies, security concerns are a significant barrier to hyperconnectivity through the cloud. They believe that on-premise data is more secure than hosting in the cloud. However, evidence shows that the opposite is true and that professionally managed cloud data is safer because according to industry followers around 43% of security breaches come from within organisations. The technology deployed by cloud hosting companies that governs data access is as robust as any achievable on-premise. This means that hackers on the outside will face state of the art security, and those on the inside are likely to be discovered immediately. While security is a constant threat to all enterprises, version control and change management are crucial for product designers and manufacturers. Expensive errors and wasted effort occur when people are working on wrong or non-current data sets. When the constraints of using numerous

IoT Now - December 2016 / January 2017

data sources are removed and all data is integrated, current, and its usage tracked, there is only one version of the truth and it becomes impossible to access or use the wrong data.

Customer engagement Because companies that partner with us deploy hyperconnectivity on the cloud are able to engage directly with their customers via social networks, business models are changing fast. To accommodate this move, old systems are being replaced with a unified platform on which to operate any business paradigm. Because no-one can accurately predict the future or know what businesses will look like in years to come the platform must be future proofed. In the case of Dassault SystĂ¨mes customers this is achieved by deploying the 3DExperience Platform that, rather than restricting data access, allows it to become a usable, useful and profitable business asset irrespective of how it is accessed. The only route to this level of business innovation is to adopt unified cloud hosting to reveal and release the sustainable business benefits of hyperconnectivity.

INTERVIEW

How SAP helps telcos deliver value in connected cars, smart cities and healthcare Stephan Gatien, the general manager for the Telecommunications Business at SAP, talked to Tom Rebbeck, the research director at Analysys Mason, about SAP’s approach to IoT and how it is trying to help telecoms operators grow their IoT business

Stephan Gatien: For SAP and many other vendors, IoT is one of the biggest proposition areas and one of the best opportunities right now. There are many dimensions to it and this presents both a huge opportunity and a huge challenge.

We are exploring how SAP can help telcos deliver meaningful solutions beyond pure connectivity to customers

The first dimension to our strategy is data and insight. Clearly the IoT world brings an explosion of data and this represents a huge opportunity for all participants. As one of the leaders in the analytics space, we have a number of assets to offer, including SAP Business Objects, Predictive Analytics and Data Management, with a focus on delivering business benefit from data and analytics, a focus on going from sensor-based noise to meaningful insight. We also have a comprehensive strategy around the management of very large volumes of data in either SAP HANA or HANA cloud platform with interoperability with Hadoop and Spark. This allows us to form a proposition that lets our customers manage and optimise the analysis of all this IoT data. We are also looking at how to make the most of this data in various ways and how to optimise processes on the fly. To help us do so we recently acquired Plat.One. One of the attractions for SAP is that the company provides us with a cloudready, Hadoop-friendly environment that can help us achieve success both in delivering enterprise-grade performances for IoT and in

delivering superior insight from the huge traffic of data. TR: The first dimension to your IoT strategy is your focus on driving insight from IoT data. What is the second? SG: The second dimension is turning this insight into meaningful business outcomes. The arrival of sensor-enabled processes will enable new opportunities to automate and optimise processes in manufacturing industries – such as Industry 4.0 – and a number of other domains. As the provider of business process centric solutions in 25 industries, SAP wants to ensure that the evolution towards sensor-based processes is used to optimise operations and to make a business impact. Having the capacity to measure anything on the edge is meaningless if the information cannot be utilised and turned into both action and outcomes. Our ambition is to use the capacity of the sensors to enhance and make any business process more meaningful in each industry or sub-industry. In that domain, we also expect the acquisition of Plat.One to help us deliver a more enterprisegrade performance for many IoT-centric scenarios and use cases. TR: And what’s the third dimension? SG: The third dimension is our proposition to telcos and that is where my team and I directly play. ▼

Tom Rebbeck: Can you give an overview of SAP’s broader strategy for Internet of Things (IoT) and where you see the opportunity for SAP?

IoT Now - December 2016 / January 2017

Stephan Gatien: IoT presents both a huge opportunity and a huge challenge

We are exploring how SAP can help telcos deliver meaningful solutions beyond pure connectivity to customers, that will help them be differentiated in solutions across multiple industries, such as energy, healthcare, smart metering or others.

this with Deutsche Telekomâ&#x20AC;&#x2122;s IoT proposition, we developed a system to optimise traffic, based on sensor information from trucks and ships approaching the port. TR: How did you get involved in this project?

TR: Can you give an example of a project you are involved in? SG: One interesting example is the work we have done with Deutsche Telekom and the Hamburg Port Authority in Germany. I would characterise this as co-innovation or joint innovation where the customer brings a specific business problem and we work together on delivering a solution. In this case the problem was how to manage container throughput efficiently. Making use of our knowhow in asset management and moving assets, and combining

IoT Now - December 2016 / January 2017

SG: In the Hamburg case there was a business problem that both Deutsche Telekom and SAP were aware of and, because of our historical relationship, we agreed to join forces. TR: How do you manage that model given that you are selling directly to enterprises as well as working with telcos? How do you avoid conflicts? SG: It is a great question and I would be lying if I said that we have sorted everything out. I believe that as more and more of these cases surface, we will have to learn how to best manage our traditional go-to-market strategy, and how to minimise potential friction between channels. At this point we have not reached that stage but I do believe that the question is valid that there is a risk here and we should address it. â&#x2013;ź

We can do that because we are already present in all of those markets and we understand each industry. We are currently trying to make sure that this knowhow becomes as IoT-centric or IoTfriendly as possible. We are working to become a provider of channel solutions for telcos.

INTERVIEW

There are still a lot of question marks on how to grow and deliver profitable results with IoT. Some more established telcos have already expressed their interest in creating a vendor-friendly channel framework that could allow them to assemble the portfolio of solutions targeting specific industries

SG: Depending on the level of maturity and the level of ambition of the telco we will probably see different strategies. I think we can assume that very well-funded, large tier one players will take a certain approach, particularly in terms of ownership of the final product. We could though envision tier two and tier three players being more in need of turnkey solutions and being much more open to agreements with players like SAP. TR: Has that emerged yet with the conversation with the telcos or is it too early? SG: There are still a lot of question marks on how to grow and deliver profitable results with IoT. Some more established telcos have already expressed their interest in creating a vendor-friendly channel framework that could allow them to assemble the portfolio of solutions targeting specific industries. These conversations have not translated into commercial agreements yet but this is just a matter of time. TR: Are there any particular areas you are developing products in? SG: One of our big focus areas right now is to create a meaningful and impactful set of applications for smart cities. It is an attractive area as it touches on the multi-industry angle that we believe is one of our strengths. Smart cities touch on utilities, flood response,

transportation, healthcare and other sectors. That is going to cut across industries that we are strong in. The challenge for us is to assemble it all in a meaningful fashion. Smart cities are also interesting as, in some parts of the world, telcos are seen as the preferred mechanism to deliver not only connectivity but the full solutions. We believe that there is a path for us to work with telcos. TR: In which parts of the world do you think telcos are seen as the preferred mechanism? SG: Right now we see a huge amount of activity in this space in the Middle East and North Africa (MENA) region. We are seeing it translate into a lot of activity from the telcos themselves. We have seen telcos like Zain making direct investment in smart city joint ventures. TR: Smart cities are an interesting area with lots of different use cases. Earlier you also mentioned oil and gas. Are there vertical markets that you are involved in or you think you will be attractive for SAP? SG: I think energy and natural resources, utilities and mining would clearly be spaces that all get our focus. Consumer industries is another space, retail, for example, could involve things like store replenishment or learning from consumer behaviour in stores. TR: And connected cars? For telcos, connected cars is the big opportunity. Is it

â&#x2013;ź

TR: How do you see the approaches of the telcos differing?

IN ASSOCIATION WITH SAP 60

IoT Now - December 2016 / January 2017

something that you are working on? SG: Connected cars are an area where telcos clearly have traction. There are a lot of direct activities between telcos and car manufacturers. The challenge for us, as we engage with telcos, is to understand how we can enhance the agreement that a telco has with a car manufacturer. We believe that there may be an opportunity to provide a layer that would enable the telco to add value to the car manufacturers. We have a solution called Vehicle Insights which makes the most of telematics information coming from a vehicle. Enabling telcos to offer this in their portfolios is one direction we are considering. TR: Do other industries lend themselves to working with the telcos? SG: Another one is healthcare. Both in Europe and North America we have seen some telcos starting new divisions, like Telus in Canada which is betting big on healthcare, or Swisscom, which is relatively active in that sector. They are looking for partners to co-innovate around some new solutions, like how to store patient records. That is clearly also an active area. TR: Telus is an interesting example - it has bought something like fifteen different companies, mostly around electronic patient records. SG: They clearly identified early on the opportunity to build the stack and insert themselves as the key stakeholder in the

IoT Now - December 2016 / January 2017

digitalisation of the health business in Canada, which I think was a smart strategy. I think that connected car, smart cities and healthcare are the domains that are compelling and are front and centre in our conversations with telcos. More telcos are also getting more requests to go beyond connectivity. We are talking to a tier one telco that was approached by one of their business customers in the oil and gas industry who would like to engage in a different way. This customer wants to support more of its core business with sensors in its rigs and on its trucks. That opens up a bunch of opportunities for SAP, particularly because this customer was a wall-towall SAP customer. Going back to my earlier point, we have a very solid customer base across 25 industries, we might be able to help telcos as they try to serve their customers better and also look for new revenue streams beyond connectivity.

I think that connected car, smart cities and healthcare are the domains that are compelling and are front and centre in our conversations with telcos

TR: Finally, given the time of the year, what are your expectations for 2017? Any predictions? SG: My hope is that in 2017 we get to a point where IoT becomes more tangible and more operational. In terms of the relationship between SAP and the telcos, I believe that up to now, we have seen good examples of what is possible, but it is relatively modest and on the edge of what can be achieved. My hope is that, in 2017, we will engage the next gear in terms of executing more meaningful and ambitious projects involving SAP and telcos.

www.sap.com

EVENT PREVIEW

Under the theme Mobile: The Next Element, Mobile World Congress will be held 27 February â&#x20AC;&#x201C; 2 March 2017 at Fira Gran Via in Barcelona, Spain,with events also taking place at Fira MontjuĂŻc. The GSMA expects that more than 101,000 professionals from across the mobile industry and adjacent industry sectors will attend Mobile World Congress 2017. As always, the exhibition at Mobile World Congress brings together the leading players from across the mobile ecosystem, as well as adjacent industry sectors such as automotive and consumer electronics, putting the spotlight on the innovative products, services and technologies that are shaping the mobile landscape. More than 2,200 companies will exhibit at Mobile World Congress 2017. The GSMA Innovation City will again be a highlight of the Mobile World Congress exhibition. In a unique space spanning nearly 2,000 square metres, attendees will immerse themselves in technology-led experiences that illustrate how mobile-connected products and services are improving the daily lives of citizens and businesses. From healthcare to agriculture, home to office, and connected cars to global

transport logistics, the Innovation City provides key insights on the future of mobility. For more information on Mobile World Congress 2017, including how to attend, exhibit or sponsor, visit www.mobileworldcongress.com. The Mobile World Congress is the cornerstone of the Mobile World Capital, which will be hosted in Barcelona through to 2023. The Mobile World Capital encompasses programmes and activities that span the entire year and will benefit not only the citizens of Barcelona, Catalonia and Spain, but also the worldwide mobile industry. For more information on the Mobile World Capital, visit www.mobileworldcapital.com.

IoT Now - December 2016 / January 2017

FEATURE

In the IoT age a unified approach to fraud management and security matters more than ever In today’s increasingly connected society, it is easier than ever before for fraudsters to wreak havoc. According to Juniper Research, by 2020 there will be close to 40 billion connected devices on the planet, and with this increasing number of connected devices we are also seeing a rise in fraud risks, such as through IoT botnets, writes Carlos Marques IoT botnets are typically comprised of a large group of computers, routers or servers, and the computing power of these devices is typically jointed together without the owners’ knowledge, with the device being remotely controlled by a single botmaster. The botmaster is often part of a criminal organisation that uses the botnets for various types of fraud, including denial of service attacks, which can cripple financial institutions or e-commerce sites, costing businesses millions in losses. These bots are also able to divert traffic to fake webpages and advertising sites, defrauding consumers by stealing their financial and personal information. As we’ve seen earlier this week, such attacks can inflict huge damage on a business; on Sunday, Tesco Bank had been subjected to a “systematic sophisticated attack,” resulting in cash being taken from 20,000 accounts. While Tesco is still racing to determine exactly what happened, the breach, one of the most significant cyber-thefts ever to hit a UK bank, highlights the ever- growing risk that businesses face from hackers and fraudsters. Following the attack, questions have been raised about how such a failure could take place, with the National Crime Agency, as well as others, examining what has occurred. As part of this process, the security measures Tesco has in place are liable to face severe scrutiny. However, while finding ways to improve security to prevent these attacks is important, it will never be enough. Creating tighter security is just the first layer of protection and it is vital that businesses are prepared for what happens when security is breached. Ultimately, the end game for hackers and fraudsters doesn’t just stop once they gain entry – as we’ve seen with Tesco Bank, the damage is done once access is gained. This is why the second layer of protection, fraud management, is even more important. For mobile operators, who are expected to face global losses of $294 billion because of fraud and uncollected revenue in 2016 alone, the importance of Fraud Management cannot be overlooked. To successfully mitigate risk, fraud management systems should work seamlessly with security protection to constantly monitor information across an organisation, watch for unusual trends and identify frauds before they happen. That way, when security is breached, the fraud management systems will follow its path and identify patterns that reveal hidden relationships and suspicious movements that might be revealed as threats and minimise any potential damage. Taking a unified approach to fraud, compliance and security provides the extra layer of protection, enabling companies to protect their customers, their business and their reputation.

IoT Now - December 2016 / January 2017

The author, Carlos Marques, is head of product marketing and alliances at WeDo Technologies

EVENTS

Smart Cities Summit Boston, USA 6-7 December 2016 https://tmt.knect365.com/smart-cities/

Smart Cities International Symposium & Exhibition Chicago, USA 24-25 January 2017 http://www.smartcitiessymposium.com

Internet of Manufacturing Chicago, USA 7-8 March 2017 http://www.internetofbusiness.net/man ufacturingchicago/

Smart Cities 2017 London, UK 1-2 February 2017 http://www.smartcityuk.com

The 2nd Annual IoT & Big Data for Utilities Conference Silicon Valley, USA 6-7 December 2016 https://energyconferencenetwork.com/ iot-utilities-2016/

IoT-Congress CESIS 2016 Berlin, Germany 13-14 December 2016 www.iot-cesis.com

8th Smart Energy Europe and the Future Utility Summit London, UK 2-3 February 2017 http://www.smuksummit.com

Internet of Energy Cologne, Germany 7-8 March 2017 http://www.internetofbusiness.net /energy/

IoT Evolution Expo Fort Lauderdale, USA 7-10 February 2017 http://www.iotevolutionexpo.com /east/

3rd Wearable Expo Tokyo, Japan Embedded World 2017 Nuremburg, Germany

18-20 January 2017 www.wearable-expo.jp/en

14-16 March 2017 https://www.embedded-world.de/en

Digital Transformation Forum 2017 London, UK 20-22 February 2017 https://digitaltransformation.iqpc.co.uk

IoT Tech Expo Europe London 23-24 January 2017 http://www.iottechexpo.com/europe/

Mobile World Congress Barcelona, Spain 27 February - 2 March 2017 https://www.mobileworld congress.com

Retail:CODE 2017 London, UK 16-17 March 2017 http://retail-code.com/en/

Fintech:CODE 2017 London, UK 16-17 March 2017 http://fintech-code.com/en/

IoT Now - December 2016 / January 2017

IoT Strateegies D g - Market Data & Analysis. Business C Consulting. Cusstom Research. Customer InsightsÇ¤

Strategy Analytics workks in partnership with h clients to buiild bu dd distinctive st ct e st strateg ategggies es to win in co complex p ex tec technology o ogy maarkets, on a regional and a global scale. Ourr IOT strategies research coverage focuses on keyy business issu ues in vertical markets, lo ooking at quantification of marketing straategies for IOT opportunities and value-chain anaalysis. Straategy Analytics provides a deep deep-dive dive perspective e on the IOT Buyyer Journey using Enterprise Ethnography: x

We study the enterprise buyer journey of co ompanies and organizations as the ey move forward through h the adoption and implementation n process for IOT system ms.

Using a combination of supply-side research h and Enterprise Ethnography, we look to provide answers to o key issues on the Buyer Adoption n Journey to IOT Systemss

We e help vendors and servicce providers to better position and market their IOT solution in n this exciting and challen nging market.

Forr more information visit: www.strategyan nalytics.com

IoT Now: ISSN 2397-2793

DECEMBER 2016/JANUARY 2017 • VOLUME 6 • ISSUE 5

IoT EVOLUTION EXPO SUPPLEMENT

NUMEREX INTERVIEW Sri Ramachandran, CTO, says volume, diversity, use cases and security are the new challenges facing IoT

INSIDE: Four-Page IoT Evolution Expo event preview including exhibition floorplan • Aeris explains why IoT apps need network optimisation to bring down costs and enable flexible scalability • News from around the IoT industry • Latest news online at www.iot-now.com

www.beechamresearch.com

CONTENTS

IoT Evolution Expo

S10

NEWS

EVENT PREVIEW

S15

INTERVIEW

IN THIS ISSUE S4

NEWS Blackberry in deal with Ford for security software; Libelium IoT platform powers smart cities

NEWS HomeServe partners with Aviva for LeakBot; Eurotech announces new development kit for IoT apps

INTERVIEW: IoTâ&#x20AC;&#x2122;s new challenges Sri Ramachandran, the CTO of Numerex explains how he sees the IoT market developing and how a comprehensive IoT platform remains a powerful differentiator

S10 EVENT PREVIEW Four pages detailing the key participants and sessions at the forthcoming IoT Evolution Expo and Conference to be held on 7-10 February, 2010 in Fort Lauderdale, Florida, USA S15

INTERVIEW Syed Hosain, the CTO of Aeris, explains why IoT apps need network optimisation to bring down connectivity costs and enable flexible scalability

Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The company's solutions produce new revenue streams or create operating efficiencies for its customers. Numerex provides its technology and services through its integrated platforms, which are generally sold on a subscription basis. The company offers a portfolio of managed end-to-end IoT solutions including smart devices, network connectivity and service applications capable of addressing the needs of a wide spectrum of vertical markets and industrial customers. The company's mission is to empower enterprise operations with world-class, managed IoT solutions that are simple, innovative, scalable, and secure. Numerex is ISO 27001 information security-certified, highlighting the company's focus on data security, service reliability and around-the-clock support of its customers. For additional information, please visit www.numerex.com.

PUBLISHED BY:

WeKnow Media Ltd. Suite 138, 70 Churchill Square, Kings Hill, West Malling, Kent ME19 4YU, UK Tel: +44 (0) 1732 807411

Supplement IoT Now - December 2016 / January 2017

ÂŠ WeKnow Media Ltd 2016

NEWS BlackBerry in deal with Ford for expanded use of QNX and security software NEWS IN BRIEF Orange supports IoT in Brazil with Portoseguro Conecta Orange and Porto Seguro Conecta are collaborating to support IoT (Internet of Things) projects in Brazil to meet the demand from multinational corporations. The agreement between the two companies enables Orange to provide its global customers with IoT coverage in Brazil through the Porto Seguro Conecta connectivity and mobility platform. Porto Seguro Conecta’s extensive experience in IoT connections in Brazil, used for tracking car and residential alarms and IoT applications, is instrumental for local support, and complements the Orange global footprint. “Brazil is a strong market for IoT solutions in various sectors, such as utility, consumer appliance and electronic, automotive, medical and financial services. With an eye on this demand, Orange can offer its customers, via Porto Seguro Conecta, a dedicated connectivity service. We are prepared to implement new applications and broadband requirements that are essential to IoT communications,” said James Galli, head of Porto Seguro Conecta.

eir Business launches IoT Connect using MDS’ customer management platform eir Business has deployed MDS’ Customer Management Platform (CMP) to allow small, medium and large enterprises to connect their Internet of Things (IoT) assets in the field. IoT Connect is a machine-to-machine communications (M2M) selfmanagement portal that provides private network solutions and enables real-time, comprehensive data control. eir Business is reportedly the only operator in Ireland offering the IoT market such a scalable solution. CMP, MDS’ flagship billing and customer management solution, provides customer management, product configuration, order management, service charging, and convergent rating and billing, on a single unified database. With the ability to manage small to medium-sized enterprise (SME) to corporate customers with complex hierarchies, it enables eir Business’ healthcare, manufacturing, transport, security and retail customers to rapidly and securely prototype, build and deploy competitive new commercial services using IoT Connect.

BlackBerry has signed an agreement with Ford Motor Company for expanded use of BlackBerry’s QNX and security software. The deal is described as signifying an acceleration John Chen, in BlackBerry’s pivot from Blackberry hardware to software in support of the automaker’s goal of providing connected vehicles and mobility to its customers. “The future of the automobile is all about embedded intelligence. I believe our expertise in secure embedded software makes us the preferred technology provider to put the smart in the car,” said John Chen, executive chairman and chief executive officer at BlackBerry. “Ford is an industry leader and the opportunity to contribute our world-class technology to their products is a privilege. Ford’s expanded application of our software and services illustrates the diverse and broad value we can bring to market.” As part of the agreement, BlackBerry

will dedicate a team to work with Ford on expanding the use of BlackBerry’s QNX Neutrino Operating System, Certicom security technology, QNX hypervisor and QNX audio processing software. The terms of the deal are confidential. “With the success of our SYNC 3 system globally, which is based on the BlackBerry QNX operating system, we understand the importance of the connected car experience to our customers,” said Raj Nair, executive vice president Product Development and chief technical officer at Ford Motor Company. “Growing our expertise, experience and use of the BlackBerry QNX embedded software platforms will help ensure we deliver the high-quality, highly secure experience that our customers expect.” The combination of BlackBerry’s expertise in security and QNX’s mission-critical operating systems and software for automotive applications, allows the company to offer the most secure, trusted and reliable platform that can power every aspect of the connected car.

Libelium IoT Platform powers smart cities in US adding LoRaWAN and Sigfox Libelium continues powering the Internet of Things (IoT) development adding LoRaWAN and Sigfox wireless connectivity for North America to Waspmote OEM and Waspmote Plug and Sense! sensor devices. San Francisco is one of the first cities to deploy this technology, where Libelium is already developing a Smart Water project with Sigfox and San Francisco County. In Colorado, Libelium technology is also enhancing new projects to monitor weather and environment conditions with LoRaWAN connectivity. Libelium keeps offering the widest interoperability in the great array of connectivity choices for the IoT. The company is joining forces with LoRaWAN and Sigfox global network in response to strong demand for low-energy, longrange and cost efficient IoT connectivity in North America. In terms of network coverage, Semtech is partnering with Comcast to deploy LoRaWAN networks in 30 cities while Sigfox is expanding its network to 100 US cities. “We are successfully offering these protocols in their European version since 2015 and checking its viability for environment, pollution, water quality and smart parking applications. We

strongly believe that making them available in their American version will speed up market adoption in the 900 MHz markets” stated Alicia Asín, Libelium’s CEO. Customers can make their choice of LPWAN preferred protocol for Waspmote Plug & Sense! in 900MHz or 868MHz bands – depending on geographic destination – when ordering except for the Smart Parking model, where both radios (LoRaWAN / Sigfox) are always included. “We have managed to offer a dual radio in our Smart Parking node at a very competitive price, which increases our customers’ options, one of our design principles. They can compare the performance of both technologies in one installation, work in hybrid networks or change from one to another easily from the Cloud. We consider this kind of features crucial to keep a healthy and competitive IoT landscape” explained Asín.

Waspmote Plug & Sense! Smart Environment features Sigfox and LoRaWan connectivity

Supplement IoT Now - December 2016 / January 2017

NEWS HomeServe partners with Aviva to offer customers LeakBot smart water leak detector HomeServe, a home assistance provider in the UK, is strengthening its partnership with general insurer, Aviva, with the announcement that Aviva is the first insurer to offer LeakBot to its customers. LeakBot is a smart connected water leak detector, developed by HomeServe Labs. LeakBot aims to offer a solution to this issue, through its ability to detect leaks anywhere on the mains water supply in a home, spotting them before they have the chance to become big problems. The device uses Thermi-Q technology and is said to be installed easily by clipping the LeakBot to a pipe near the stopcock. It monitors the mains water supply 24/7 to detect and alert Customers via their smartphones to issues such as dripping taps, hidden leaks on pipes and taps being left running. Customers can then choose to access on-demand repair assistance from HomeServe. Aviva has already tested a small number of devices, and the success of that initial trial has led the insurer to offer LeakBot to selected Aviva Customers. Martin Bennett, the chief executive of HomeServe Membership, said, “HomeServe and Aviva are organisations who are both focused on making things easier for Customers. From the beginning of our partnership, we have been excited about what we will offer Customers in terms of market leading

connected home innovation, and LeakBot, is a significant step forward on that journey.” Stephen Pond, managing director, Prevention and Services for Aviva, added: “Many people will have encountered a leak in their homes at some point, so it’s no surprise that repairing damage caused by leaks accounts for more than one in five of Aviva’s home insurance claims. Unfortunately, many leaks happen behind the scenes, which mean they can sometimes go undetected for weeks, months or even years, meaning water damage can be extremely extensive, destructive and disruptive to put right. So, catching leaks early and fixing them before much damage is done is definitely the way to go.”

The ECDK 4001 Development Kit provides an ideal, all-inclusive environment to software developers and operational engineers, where they can model their use cases starting from a realistic template that integrates all the key elements typical of an industrial IoT chain (Gateway, PLC, field devices, field protocols, cloud services). The EDCK 4001 Development Kit includes a ReliaGATE 10-11, Eurotech’s IoT Gateway for industrial applications based on the CortexA8 processor family, and a PLC connected to a demo board fitted with digital and analog controls. The ReliaGATE 10-11 provides an Oracle Java SE Embedded 8 Virtual Machine, and Everyware Software Framework (ESF), Eurotech’s IoT device middleware, which builds on Eclipse Kura, the open source

Supplement IoT Now - December 2016 / January 2017

Vodafone signs roaming agreement with Inmarsat for IoT communications Vodafone announced it has entered into a roaming agreement with Inmarsat, with the ambition to enable international satellite and cellular roaming connectivity for the Internet of Things (IoT). Thanks to its ubiquitous coverage and high network availability, even in extreme environmental conditions, satellite-powered IoT allows organisations to extend their services beyond terrestrial networks, where they have remote connectivity requirements, for example in the agri-tech, utilities, oil and gas and transportation sectors.

The LeakBot app on a smartphone

Eurotech announces new development kit to create IoT applications from field-to-cloud in minutes Eurotech, a provider of embedded systems, Machine-to-Machine (M2M) platforms and Internet of Things (IoT) solutions, announced the EDCK 4001, a new Everyware Device Cloud Development Kit that bundles all the hardware and software needed to prototype, develop, test and integrate a complete IoT solution that bridges the gap between sensors, devices and the cloud.

NEWS IN BRIEF

Java/OSGi application framework for IoT gateways. Distributed and supported by Eurotech, ESF adds advanced security, diagnostics, provisioning, remote access and full integration with Everyware Cloud (EC), Eurotech’s IoT Integration Platform. The EDCK 4001 Development Kit includes a trial license of EC, which provides cloudbased access, visualisation and management of the device, and additional services like data storage, analytics and remote software deployment and update.

The EDCK 4001 IoT Development Kit

Inmarsat’s Broadband Global Access Network (BGAN) complements Vodafone’s current connectivity portfolio with lower bandwidth, lighter weight, more portable satellite terminals and satellite communications resilience in harsh weather.

Huawei and UC Berkeley create US$1m partnership for AI research The Noah’s Ark Laboratory of Huawei and the University of California, Berkeley, have formed a strategic partnership in basic research into artificial intelligence (AI). Huawei will provide a US$1 million fund to UC Berkeley for research into subjects of interest in AI, including deep learning, reinforcement learning, machine learning, natural language processing and computer vision. The Research and Development (R&D) teams of Huawei and the Berkeley Artificial Intelligence Research (BAIR) Lab will collaborate to achieve breakthroughs in AI theories and key technologies. The two parties believe that this strategic partnership will fuel the advancement of AI technology and create new experiences for users.

INTERVIEW

IoT’s new challenges are the volume involved, the diversity of use cases and security Sri Ramachandran is chief technology officer of Numerex. He joined the company at the start of 2016 and is responsible for driving the company's technology strategy with a focus on product development and engineering execution. He most recently served as CTO of Utilidata, an IoT and data analytics company driving energy efficiency in the electric power grid. Prior to that, he was CTO of Telcordia/Ericsson Interconnection Solutions, where he launched and established a new mobile messaging business. Here he tells IoT Now how he sees the IoT market developing and how, while everyone seems to have an IoT platform offering, a comprehensive IoT platform remains a valuable differentiator

IoT Now: Given the recent DDoS (Distributed Denial of Service) attacks from internet-connected devices, what is your take on securing IoT devices? What are the other security implications, for example, malicious data manipulation? Sri Ramachandran: The recent DDoS attack on 21 October 2016 that crippled critical internet sites such as Netflix, Paypal and Twitter, especially in the eastern half of the US, was found to have been launched by millions of internet connected devices. More specifically, a malware called the Mirai botnet was deployed to infect vulnerable internet connected cameras and digital video recorders that then coordinated this attack against the DNS infrastructure of one specific DNS provider, Dyn. The devices were considered open because the default administrator credentials were not changed after deployment. This clearly exposed the vulnerabilities of IoT devices, the failures in deployment best practices, and how their scale of deployments, and their always on nature can be exploited to make malicious attacks on broad internet infrastructure as well as targeted sites. This is a wakeup call to device manufacturers – as well as enterprises – that special measures must be taken to ensure IoT devices cannot be exploited. At Numerex, security of devices starts with design and system architecture. Our philosophy is that security must be dealt with not only in technology, but also in process. Technology-wise, each device has its own internal firewall to prevent malicious inputs. We also ensure that all configuration and software updates delivered to devices go through a strict validation

process that ensures confidentiality and integrity. Our delivery and deployment processes are tightly coordinated with the customer and their internal IT controls. Ultimately, IoT devices are only as good as the data they send out. If the data is manipulated either through deliberate erroneous inputs to the IoT device sensors, or while the data is in transit, it can lead to bad results. Imagine a bedside monitor of a critical patient’s vitals sending information to the doctor’s office. The consequences may be dire if the data is manipulated. Another example is tracking emergency supplies during a natural disaster recovery situation – having the right data at the right time is imperative to dealing with the circumstances. There are many other examples in industrial applications and large-scale systems such as the electric power grid, where the integrity of the data is critical. The consequences of bad data can range from minor inefficiencies to the enterprise to the worst case of catastrophic outcomes. IoT Now: Besides connected car and connected home, what are the other areas in which IoT is making big inroads? SR: Today, when one mentions IoT, the most common applications that come to mind are related to connected home and connected car. Both areas are seeing a lot of activity and the innovation seems boundless. The connected home started from three different sub segments that have now merged. The first one is home monitoring – essentially checking on pets, children and others who are entering or leaving the home. There are many solutions that comprise this segment, ▼

Ultimately, IoT devices are only as good as the data they send out. If the data is manipulated either through deliberate erroneous inputs to the IoT device sensors, or while the data is in transit, it can lead to bad results

IN ASSOCIATION WITH NUMEREX S6

Supplement IoT Now - December 2016 / January 2017

including video monitors, motion detectors and sound monitors. The second is climate control and energy use monitoring. Controlling energy usage of a home contributes directly to the family’s monthly savings, making this an important area that has seen a lot of innovation. Companies such as Nest and a few major security companies have made great strides in this area. Control aspects have moved on from just climate control to include water heaters, lighting, water pumps, and sprinklers. The third is home security. With improvements in technology, the once stand-alone industry of home security has now been inducted into the connected home space. Now homeowners have cloud-based apps that are accessible on a smartphone for home monitoring and control. Alarm panels can operate on a wireless network, notifying a dedicated call centre in the case of intrusion events. The home security market is very strong, and is incorporating the home monitoring segment into it, allowing service providers to deliver robust products offerings. Numerex has a strong brand and solution offering in this part of the connected home market.

The author, Sri Ramachandran, is chief technology officer of Numerex

Industrial IoT (IIoT) is not talked about much, but it is a larger market and has a diverse set of applications that rely on a range of devices and capabilities. Asset tracking in the supply chain using our iManage solution, and bulk liquids tank monitoring under our iTank managed service are two very robust areas where Numerex offers complete solutions. Tanks storing bulk liquids, such as petroleum products, chemicals, gases and even water are in general in need of remote, electronic monitoring. The business processes around measuring, draining, replenishing and distribution of liquids in these tanks have been built around highly manual and inefficient practices. Automating the business processes clearly brings a significant uplift in efficiency and return on investment in IoT. IoT Now: What have been Numerex's major product and technology accomplishments recently? SR: Numerex has made major strides in its product and technology roadmap in 2016. We have launched several connected home ▼

The connected car sector is, again, a very large market. The automobile, for an individual or family, is their second most expensive asset after a home, and hence has a lot of economic value ascribed to it. The ecosystem of service providers that play a part in the lifecycle of an automobile is also extensive – insurance providers, service centres, infotainment providers and others. By connecting a car, it allows the entire ecosystem of service providers to play a role and enhance the experience for the car owner.

As a result, we have seen many sub-segments emerge in the connected car space – usagebased insurance (UBI), fleet tracking, maintenance tracking, car digital video recorders and other entertainment systems, with each segment growing very rapidly. With devices that can connect aftermarket cars, the market is no longer dependent on newer models only which have the OEM-enabled connectedness. Driver behaviour, energy usage and other pertinent data can also be gleaned from the connected car. Numerex has been present in the fleet tracking space for many years and has plans to continue upgrading and improving that offering into 2017.

Supplement IoT Now - December 2016 / January 2017

INTERVIEW

At the same time, we launched a Lone Worker Safety (mPERS) product that is gaining traction. In the industrial IoT applications, such as asset tracking and tank monitoring, we have launched several new devices, one of which is certified to be Intrinsically Safe and hence can be used with flammable liquids. Among the new devices are those capable of using both cellular and satellite networks, which makes them applicable in versatile environments. We are also launching devices with rechargeable batteries – with these we can extend the life of the device to more than seven years. These devices can be charged by a small solar panel, making them attractive for deployment in remote environments. We have also been advancing the software platform capabilities to improve scale and support migration of our customers from 2G networks to 3G and beyond. IoT Now: Many IoT companies, including Numerex, provide an IoT platform. What are the key differentiators of your IoT platform? How do you see it enabling a growing IoT market? SR: The term IoT Platform is very common today. Most companies claim they have one, and there is no standard definition of what the platform is. The way Numerex defines a platform is that it: • Is a cloud-based software system using network-as-aservice to connect any number of IoT devices over different transport networks – such as cellular, satellite, LPWA and WiFi. • Employs rich device and connection management capabilities via gateway services to allow customers to change configurations of their devices, update and upgrade the firmware. It also has very sophisticated high throughput message translation capabilities so that many different device types can be easily connected to the platform. • Has adaptive security, so it can provide security at message, transport, device levels as well as enable different trust models between applications and the devices. • Uses very advanced application enablement through application programme interfaces (APIs) that our customers and partners use for rapid integration. • Is capable of very sophisticated billing, operations and management capabilities. The platform can support billing across any network type and any mode, such as flat rate, usage, tiered and others. • Is supported 24x7 by our network operations centre (NOC) and technical professionals. One of the many differentiators of our nxFAST platform is that it has operational maturity – we have more than two million IoT device connections live on the platform, supporting in excess of 1,000 different use cases. The platform supports many device types and many network types and a sophisticated rules engine so that we can enable what is called intelligence at the edge for IoT networks. These are significant differentiators that we don’t see deployed in the industry, but that our customers can take advantage of.

Supporting numerous device and network types is essential to the growing IoT market. Numerex’s platform provides just that. Based on the diversity of use cases we already support, there are going to be many more as business processes increasingly get automated. IoT Now: The IoT market is growing very rapidly. What are your key initiatives to keep ahead of the market? Sri Ramachandran: The challenge of IoT is the volume and diversity of use cases. Since IoT in the enterprise is primarily used to drive business process automation, we see that the number of use cases are very plentiful. Even in just one market, bulk fluid tank monitoring, we see many diverse use cases. The solutions that are deployed are different for tanks that move which require GPS based trackers, tanks that are stationary, tanks that are indoors and external tanks. The form of the solution that is deployed in each of those cases is very different and requires different devices, different data reporting characteristics, different applications, and different ways to control and manage them. We want to make it very easy for our customers to do business with us. To this end, our business model is to provide a complete solution that our customers can deploy as a fully managed service from Numerex. This makes the rapid deployment and turn up of service paramount. Our modular device capabilities and the world-class software platform enable customers to quickly tackle their business problems. We have several initiatives going on to enable our customers to streamline their businesses. They want to integrate all the data generated from their deployment into their enterprise resource planning (ERP) or other business workflow solution. While batch processing is common, we are working on a rich API framework that will make this integration more streamlined and seamless. The second technology initiative is around data mining and analytics. As our customers scale their deployments of our solution, they are generating significant amounts of device, process and business data. While the data is used to optimise day-to-day business operations, the data has not been used to address enterprise wide business decisions, especially in combination with other data. For example, in our tank monitoring scenario, the data from the tank monitors are used to make day-day tank fill route optimisations – such as how much fluid to carry, how much fluid to order, the most optimal route to take and others. However, when combined with bulk pricing data, weather/climate data, demographic and other macro information, our data analytics software can offer insights for the business as to optimise purchasing, inventory and route distribution decisions. A third technology initiative is to refresh all our products to support LTE and its IoT variants. This enables us to easily track carriers’ LTE deployment roadmaps – for Cat1, CatM1, and CatM2. We have taken a platform approach to our software and hardware. The software platform deployed in the Numerex cloud provides the key capabilities to enable support for diverse use cases – such as a sophisticated rules engine, high

▼

products under the Uplink brand, and one product focused exclusively on the fire and security market. In the offender monitoring segment, we released a major upgrade of our application, that customers are eagerly migrating to.

IN ASSOCIATION WITH NUMEREX S8

Supplement IoT Now - December 2016 / January 2017

Sri Ramachandran: Data analysis technologies will gain even further prominence as more devices come online

throughput message translation and transaction processing, advanced application enablement and a rich data model for supporting different device types. The hardware platform takes a modular approach to key IoT capabilities – such as network type, sensor inputs, power input and battery. These make it the most flexible technology approach to deal with the growing IoT market. What is the future for IoT? How do you see it evolving? Are there other new markets that IoT will spawn? SR: IoT is going to become a broad term that is going to signify many things. Today the focus is on things – gadgets and devices that we use to monitor and control. Most common applications of IoT today use the paradigm of monitor and control – this can be in connected lighting, industrial settings and many, many more. Gradually, we will see that the monitoring and the control will evolve independently. Monitoring is essentially time series data

Supplement IoT Now - December 2016 / January 2017

being generated by these myriad devices – and the focus will move up from the device itself to the data that it is generating and all the models that can be applied to data. Data, especially time-series data, can be massaged, manipulated, aggregated and analysed to generate meaningful results – such as pattern recognition, trend generation and predictive projections. Data analysis technologies will gain even further prominence as more devices come online.

IoT is going to become a broad term that is going to signify many things

Similarly, when we look at control, we see steady evolution towards hierarchical and multi-tiered control. Industrial automation already has seen these advances in process control. Using IoT, we can extend these concepts to industrial business process automation. In that sense, IoT is similar to the PC revolution. As the costs of computing, network and storage continue to go down, the focus shifts up to data analysis and what can be done with the data and how it helps run the business. Just as PCs are tools to run the business, so will IoT.

www.numerex.com

EVENT PREVIEW

www. iotevolutionexpo.com

Five conference tracks bring together speakers and exhibitors from across the IoT market IoT Evolution Expo and Conference returns to Fort Lauderdale, Florida, USA on 7-10 February, 2017, for its 17th event. Here, IoT Now previews what’s in store for attendees

Enterprise IoT operations Connected building and cities IoT enabled transportation solutions IoT developers Business intelligence/machine learning The conference tracks all highlight the robust nature of IoT by focusing on sets of solutions and technologies that address the vast array of business challenges that every company faces.

Conference highlights IoT Evolution returns to Fort Lauderdale, Florida with a strengthened focus on the enterprise and how IoT solutions will impact how companies operate and drive revenue.

There are several new additions to the programme, most notably the all-new Industrial IoT Conference, Machine Learning Certification, Telit IoT Innovation and the Best Practices Showcase. • All-new Industrial IoT Conference A partnership with the Industrial Internet Consortium, this new collocated conference will highlight how the convergence of machine and smart data is transforming manufacturing and supply chain functions. Here attendees will learn about industrial IoT solutions that will dramatically improve performance, lower operating costs and increase reliability. • Telit IoT Innovation Telit IoT Innovation connects more than 400 business leaders, executives, engineers and developers who want to utilise the expertise of the Telit IoT ecosystem to get to market faster, save money and improve compliance. Listeners will hear from industry leaders who will share valuable insights to help translate ideas into measurable business outcomes.

▼

With five tracks of content, IoT Evolution covers all functional areas of the enterprise and highlights the IoT solutions and strategies that will drive success. The conference tracks include:

IN ASSOCIATION WITH IOT EVOLUTION EXPO S10

Supplement IoT Now - December 2016 / January 2017

Keynote speakers:

Other speakers include: Don Barnetson, CTO, Lunera Lighting

Lisa Peterson, vice president of Marketing and Connected Aircraft, Gogo Business Aviation

James Brehm, James Brehm & Associates

Dr. Richard Soley, chairman, Object Management Group & Industrial Internet Consortium

Chris Chang, CEO, Alien Technology

Fred Yentz, CEO, IoT Platforms, Telit

Carl Ford, CEO, Crossfire Media

John Horn, CEO, Ingenu

Andy Germano, vice president, Bec Technologies

Alex Brisbourne, CEO, Kore

Lee Gruenfeld, vice president of Strategic Initiative, Support.com

Richard Brennan, CTO, Telxxis Ven Dixit, Nimbelink Ron Felice, automotive engineer, IBM

Dr. Brandon Hart, technical business development, Nimbelink Mark Heckler, principal technologist/developer advocate, Pivotal.io Kaynam Hedayat, vice president of product marketing and marketing, Digital Lumens

IoT Evolution Expo has a strengthened focus on the enterprise and how IoT solutions will impact how companies operate and drive revenue

Ken Hosac, vice president business development, Cradlepoint Marc Josephson, CEO, Corisecs John Keever, CTO, Telit Dave Kjendal, CTO, Senet Kevin Kostiner, senior vice president and general manager for IoE Connectivity, BeamSmart Maciej Kranz, vice president, Corporate Strategic Innovation Group, Cisco Matt Lear, director, Product Management - IOT iConnectiv Robert Lutz, director, Product Management and Business Development, Systech Mary Maguire, Harman Giuseppe Mascarella, adjunct professor, Florida Atlantic University

• Best Practices Showcase The Best Practices Showcase will highlight and define the various stages of IoT development and the best practices required in order to deliver a successful IoT solution that offers value, operational efficiencies and profitability. • Machine Learning Certification Combined with the general IoT Certification taking place in the morning, these afternoon sessions will focus on what machine learning is, how it will impact IoT implementations and identify the ecosystem to support it. • Security Summit: Security in the IoT: Incompetence, Malice and Solutions Hear about the most critical issues related to the privacy and security of the IoT industry's interconnected devices. Identify typical IoT security flaws and understand what measures you need to take to overcome them. Get educated on a wide variety of security solutions, new device encryption methods, ways to protect your enterprise and more. • CEO Innovation Summit The IoT Evolution CEO Innovation Summit is for the corporate leaders who drive innovation and look to foster it within the organisation. This summit looks at how to take the functional aspects of IoT and integrate them throughout the organisation to transform the business into a fourth industrial revolution powerhouse.

Supplement IoT Now - December 2016 / January 2017

Alex Mateo, industry manager for Smart Cities, Libelium Marcus McCarthy, general manager, Trimble Rod McLane, Ayla Netowrks Angel Mercedes, manager, Services Sales NA, AirVantage IoT Platform, Sierra Wireless Steven Nguyen, senior director of marketing, BuildingIQ Mike Palermo, senior Alexa evangelist, Amazon Marc Petock, vice president of marketing, LynxSpring Vince Ricco, business development manager, Technology Partners Axis Dr. Richard Scott, principal, Scott Associates Vatsal Shah, CEO and founder, Litmus Automation Uzair Siddiqui, senior product and marketing manager for IoT Connected Solutions, Verizon Ian Skerrett, vice president of marketing, Eclipse Ravi Srivatsav, chief business developer, NTT Wayne Stargardt, Numerex Jessica Sweeney, senior director of Market and Product Strategy, Lilee Systems Keith Tamboer, James Brehm & Associates Andrew Till, vice president, Technology, Partnerships and New Solutions, Harman Dima Tokar, analyst, Mach Nation James Turino, partner, Redwood Capital Group Karl Weaver, OEM business development director, Oasis Smart SIM Doug Wilson, channel manager - IoT, Verizon Will Yapp, vice president of business development, Senet Marc Zionts, CEO, Numerex

S11

EVENT PREVIEW

What makes IoT Evolution unique? IoT Evolution provides an unbiased and inclusive view of the IoT ecosystem. The direction of the event’s programme is not tied to any particular standard, association or user group. The exhibition includes companies that are competing for your business and are ready to show you how to integrate IoT into your business and corporate structure. The IoT Evolution conference programme provides an understanding of how IoT will be incorporated into business and operational plans now and well into the future. By highlighting the robust nature of IoT, conference sessions focus on a myriad of technologies, giving attendees an unbiased view of the full spectrum of solutions for their unique business needs.

Exhibitor List: Aeris Aizoon Altaworx Anritsu Arrow Electronics Aware360 Axis Communications

IoT Evolution offers a level playing field for visitors to evaluate all possible IoT solutions for their specific business requirements.

Azul Systems

Visit the event to become the change agent in your company and bring back ideas that show how IoT solutions can permeate nearly every business function in your company.

Berkeley Varitronics Systems

Bayshore Networks Connected Development Cradlepoint Delta Dense Networks Dunn Solutions Group Encore Networks Eurotech Gatetel IoT Solutions GeoTab Get Wireless Giga-TMS Harman Ingenu Intertek Ispirata Janus Remote Communications Kore Link Labs Litmus Automation Nimbelink Numerex Octo RealityAl Rev.io Script.io Senet Sprint Symmetry Electronics Systech Systena America Tactical Network Solutions US Cellular Verizon

The 2017 Exhibitor plan – where’s your next meeting?

S12

Supplement IoT Now - December 2016 / January 2017

IoT Evolution in numbers • • • • •

4,000 750+ 100+ 60+ 90+

expected attendees companies participating speakers exhibitors companies represented

Who should attend IoT Evolution Conference & Expo • • • • • •

M2M Platform Companies Device Manufacturers Sensors and Embedded Systems Companies Systems Integrator Service Providers – Fixed, Wireless and Satellite Enterprise Executives - Fleet - Supply Chain and Logistics - Manufacturing - IT • Developers • Retail Executives • Healthcare Management Executives

Conference sessions attract a crowd

Supplement IoT Now - December 2016 / January 2017

This year’s event is expected to attract 4,000 attendees

A lively showﬂoor at previous events

S13

INTERVIEW

IoT apps need network optimisation to bring down connectivity costs and enable flexible scalability Syed Hosain is the chief technical officer of Aeris where he is responsible for the architecture and future direction of Aeris’ networks, development programmes and technology strategy. He joined Aeris in 1996 as a member of the founding executive team of Aeris. Here, he tells George Malim that the sheer volume of IoT devices coupled with their excessive control plane message traffic is creating inefficiencies that will become substantial issues for IoT providers as deployments grow. Organisations should address IoT optimisation now before the connectivity issues impact on the ability of IoT solutions to scale up IoT Now: Does network optimisation matter given the typically low throughput requirements of IoT communications?

tremendous scale to contend with. Even small throughput at this scale means the impact will be enormous.

Syed Hosain: The reasons for optimising networks are not just technical, there are business reasons for network optimisation too. If you look at cellular IoT apps you might have low throughput and data volume from the app itself but the presence of a device could generate more control plane messaging than you might like to support.

IoT Now: Why should IoT network optimisation be looked at differently from telephony/internet network optimisation?

Another key point regarding why network optimisation matters is the sheer volume of endpoint devices involved in IoT. Assuming you believe the predictions that there will be tens of billions of devices there is going to be

IoT devices behave very differently to smartphone or telephony usage. Most people will be connected via their smartphones for relatively long periods with hard to predict bursts for activities such as downloads. IoT devices, in contrast, tend to communicate with much greater regularity. In addition, they’ve often been designed for extended battery life so they power up to transmit and then power down, which means there are important data management issues to deal with.

Syed Hosain: There is going to be tremendous scale to contend with

▼

An app, for example, might only need to send a few megabytes of data per device per month but the control plane messaging could have a dramatically higher volume. This is an important factor to take into account and one of the reasons that we don’t buy equipment from the traditional network equipment players. We build our own systems because we can rapidly ensure that their control plane messaging requirements are much lower as the network standards are evolved.

SH: The demands of IoT apps are quite different to the traditional smartphone environment which is why we need systems that are capable of handling a huge volume of relatively small data communications. Efforts such as NB-IoT and others are seeking to address part of this challenge but we should not be casual about the fundamental differences between IoT traffic and smartphone traffic.

IN ASSOCIATION WITH AERIS Supplement IoT Now - December 2016 / January 2017

S15 15

INTERVIEW

We see, generally, a lot of regularity in transmission which you don’t see with humans on their smartphones. This means we can monitor patterns and establish if a device isn’t working or something is happening that hasn’t happened before. This is essential for IoT because unlike the customer to service provider relationship with smartphones, we are managing hundreds of thousands of devices for a given application and enterprise customer. Therefore, if you can find the problem in an automated way and, ideally, predict it before it happens, you are providing a truly valuable service. IoT Now: How challenging is it to achieve network optimisation given the large volumes of IoT endpoint devices involved once deployments mature? SH: We’ve completed simulations to determine how many cellular devices you need to attach to our network before systems start to fall down and have found with our LTE networks, which rely entirely on cloud infrastructure, we can scale up easily. We can spin up how we support the network in a variety of ways and this is not tough in a cloud based solution. The fact we can distribute the data across multiple server locations very quickly is quite different from a traditional cellphone network provider which is very localised. Having said that, we are going to see a large number of devices and there will be customer challenges there. IoT Now: Is the need to flexibly scale a barrier to achieving network optimisation? SH: We certainly believe flexibility is an issue. We are approaching ten million devices in our network and we have simulated at 100 million

devices to ensure we can support 10x growth. You have to be able to handle not only the average load but also the peaks. For example, many IoT devices are set to communicate precisely on the hour and that creates a spike in traffic. In a smartphone environment, the more random nature of individual usage smoothes out the peaks and troughs but IoT traffic is less spread out so you have to ensure you have the flexibility to accommodate the peaks. The variance from peak to trough can be 10x but this is on a very regular lifecycle so there is greater predictability. IoT Now: What are the challenges of achieving network optimisation when different network technologies are used in different geographies and situations? How can you optimise when you have different flavours of cellular, narrowband, Bluetooth and Wi-Fi networks active? SH: This is definitely an issue that’s going to crop up for a lot of people. IP technologies can be treated similarly and we like to normalise between network technologies. With Wi-Fi, cellular or NB-IoT you’re going to get IP data but on Sigfox or other low power bearers they will need to be treated differently. We can deliver those as IP encapsulated messages. Having your own hardware in the network gives you appropriate solutions which, as everyone heads towards IP or methods that enable you to convert to IP, mean you’re ready and can also rapidly adapt to new standards and technologies. This global diversity is an opportunity to move to cloud-based systems and have a

▼

We certainly believe flexibility is an issue. We are approaching ten million devices in our network and we have simulated at 100 million devices to ensure we can support 10x growth

IN ASSOCIATION WITH AERIS S16

Supplement IoT Now - December 2016 / January 2017

IoT Now: How can optimisation be achieved when multiple connectivity providers are involved? SH: We encounter this more than you’d expect. We can provide services using 500 different operators which creates some challenges in device normalisation. For smartphones that’s not an issue because the manufacturer will address localisation issues but for IoT devices the challenge is greater. We frequently have customer deployments in multiple countries where we have to normalise the behaviour of the device. We’ve identified 20 global zones in which we treat several countries as one. For instance, we have zones such as Europe and South America so when a device is shipped to one zone it has a good understanding of what the billing will be and performance requirements. It’s very important that a device in London will operate in the same way as a device in Madrid. There will, of course, be some differences in the radio frequencies used but the back-end piece is essentially the same. IoT Now: How does Aeris help enable network optimisation? SH: We achieve this not only through utilising our own equipment for our deployments. We had a situation several years ago with an automotive industry customer. The problem was that a vehicle would send a crash notification SMS and the service would be followed up with a call from the driver in the car. The data centre people would correlate the information from the SMS with the

Supplement IoT Now - December 2016 / January 2017

incoming call but about 25-30% of the time the caller ID wouldn’t show up because the location could require utilisation of a small local carrier and public switched telephony networks. The data centre operators then had to use DTMF tone sequence analysis to identify who the call was from. The automotive company wanted us to find out who calls were from and recognised that we could extract a notification of a call delivery attempt so out systems would see a call being attempted. We could automatically engage an app to put the call on momentary hold and query it. Knowing the text had just been received from a specific location meant we could then route the call to an operator that has the SMS on screen. This process went from taking 60 to 90 seconds on those difficult calls to less than 15 seconds.

In the past we were purely a connectivity service provider competing with mobile operators but also in partnership with them for connectivity provision

This functionality drove the car manufacturer to select us and we went from identifying the problem to having a commercially deployed solution in eight weeks. IoT Now: Please can you give us some more detail on the Aeris Aercloud? SH: In the past we were purely a connectivity service provider competing with mobile operators but also in partnership with them for connectivity provision. The data would flow through our systems and we would deliver it to data centres to handle it. We decided to create systems that would look at the content in the data instead of just delivering it. Aercloud was created so we could store data and look at the content so the organisation could decide what to do. Aercloud stores, manages and enables us to

▼

completely software defined network. We’re going back to upgrade our 3G network to be cloud based for this reason.

S17

INTERVIEW

From a financial perspective, when you have an overage scenario, such as if a device goes haywire and starts to transmit continuously, you want to shut it off immediately

look at the data in a streaming fashion so we can provide appropriate alerts to the customer. Aercloud is added to our Aervoyance offering which provides analysis that looks not only at the streaming data but also enables you to look at the historical past to determine long term patterns and analyse issues. For example, we’ve deployed Aervoyance for a plane manufacturer and while partial insights can be gathered from communications when the plane is in the air, the bulk of the data is transmitted when the plane arrives at its destination gate. Aervoyance is able to look at the data and perform predictive analytics. We’re not able to provide automated choices or decision points to the customer yet but we’ll soon start using Aervoyance to look for patterns that humans can’t recognise using specific algorithms we’ve developed. We hope customers will be surprised at what we can uncover. IoT Now: What are the benefits of network optimisation? Does it really deliver on saving money, accelerating time to deployment, improving operating efficiency? SH: Yes to all of the above. It saves money by optimising throughput. Network optimisation improves efficiency because you manage the transport of data from the low throughput devices and IoT devices tend to be application-specific so we have customers that like to be notified and start running analysis as soon as the data arrives. There are also things you can do to save further money. From a financial perspective, when you have an overage scenario, such as if

www.aeris.com

S18

a device goes haywire and starts to transmit continuously, you want to shut it off immediately. We can set thresholds and limits and look out for situations that are abnormal. IoT Now: How can network optimisation enable better capacity planning? SH: It certainly helps capacity planning. IoT apps tend to be very uniform and send similar amounts of data each time they communicate so you can manage them effectively. That predictability means we can make upgrades in a timely way so the service doesn’t get caught out by an increase in devices and usage. The equation is simple, multiple by the average traffic by the number of devices deployed for the app and you get the likely network requirement. IoT Now: Should network optimisation be part of an IoT service provider's skillset or should this be managed by a specialist? SH: The answer is probably both. If you look at the monthly revenue from smartphones and compare that to IoT devices, there’s a tremendous difference. In the US, for example, there are a large number of IoT cellular devices yet the total connectivity revenue being generated by the carrier from them is less than 1% of their total revenue. However, all of those devices could have a significant impact because of all their control plane messaging. The industry needs to start looking at this in a very critical way and it will probably be addressed better by specialists because carriers focus on smartphone requirements so you won’t see changes being made to better optimise IoT devices as these are costly changes. Specialists like us will put the effort in where a carrier won’t to optmise the network and eliminate unnecessary control plane traffic from IoT devices.

To learn more about network optimisation for IoT, visit www.aeris.com/contact-us/ to read the Aeris whitepaper ‘How to achieve network optimisation for IoT’

Supplement IoT Now - December 2016 / January 2017

AN N EVENT NT OF O

Mob M obile le e ha as beccome om me fu m ffund fundamen amental to our o every ryda d y liv l es. s It has as in ine extricab icab ab b changed bly ha ged dh how we communica o m nic te, in nter e acct, t w work o and or and d pla p y ass ind individua dividu vi lsss. Itt iss ls. trrans an nsform ns rm miing ming g en ntir t e indus indus in u tries, tries tr es bringin es, ring ng gin gi g ing gn ne ew levels of p of producctivit vity and de efficienc fficiency to enterprises. ffi err pr s Over O e thr tth ee ee deccades, ca ade a es, mobile obile ile ha has as evolv o ved from ma an eme emer erging ng g ccomm o munica munic tions tio io on technolog ons echn ec hnolog gy to a gy p phenome ome en enon no th hat is n now a att the the found nd d tion da o off everythin ng we do d . How can we descriibe the h role of mobile e in todayâ&#x20AC;&#x2122; y s world?

Elemental.

WWW.MOBILEWORLDCONGRE ESS.COM

M obile bil iiss revolut l t ionary i , d ynamic, i ever adapting. d ti Itâ&#x20AC;&#x2122;s the for o ce behind every emer em ging innovation, every forward-t d thinking hi ki enterprise i . Join oin i us in Barcelona l for Mobile World Congress 2017, where the world comes together to showcase, celebrate and adv dvance mobile.

A Com mp plete IoT Platform-a Platform-a as as-a s-a a-S Serrvice e Ga atew way y Billin ng g Network Netw ettworrk k Con nne nne ecttions ns s

So S olut olu uttions ti

In on ne e, easy-to-use IoT ma manag nag ge e ntt p eme ement po ortal.

nx FA FAST

Powering g the IoT IoT, Empow wering Yo Your Business.

Yo ou don’t h have to be an Io oT expert! Let Numerex get you ur solutions to market quickly, remove e the risk, and deliver th he power of the e Io oT to help build your business. ;V ÄUK V\[ TVYL JHSS VY ]PZP[ U\TLYL_ JVT WSH[MVYT © 2016 Numerex Corp.. All rights reserved. Numerex is a registered mark of Numerex Corp.