Is 2014 the Year of The Internet of things?

Is 2014 the Year of The Internet of things?

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  IS 2014 THEYEAR OF THE INTERNET OF THINGS? Paul Bevan 12th March 2014
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  The Internet ofThings A Definition • The Internet of Things (IoT) is a scenario in which objects, animals or people are provided with unique identifiers and the ability to automatically transfer data over a network without requiring human-to- human or human-to-computer interaction • The Internet of Things is the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment
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  It started witha Coke (possibly) • Programmers at Carneige Mellon University in early 1980s hooked up the machine to a computer so they could tell if had stock and was working before walking downstairs to get a Coke!
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  Machine to Machine(M2M) Technology is not new • Has existed since the advent of computer networking • Tethered implementations • Large scale industrial process control, telemetry etc. • RFID presages wider use based on wireless technology • Supply chain use cases • US Dept of Defense • Pharmaceuticals chain of custody
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  The Growth ofthe internet, Cloud and wireless technologies is new • Wireless frees the intelligent devices • Moore’s law and the development of cloud technologies makes it cost effective to process and store the vast amount of data that is being captured • The internet provides a mechanism for monitoring and controlling devices on a global basis • IPv6 lifts the restriction on number of internet addressable devices • At the end of 2012 Cisco calculated that there were 8.7 billion devices connected to the internet
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  Some interesting (andwacky?) applications
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  The Potential toDisrupt Business Models • Just Imagine… • the embedded chip on your inkjet printer senses the ink is low • It alerts the 3D printer at the plant to make you a new cartridge • Which is picked up automatically by an Amazon drone and delivered to your house • Where the secure drop off unit acknowledges receipt • So that the virtual payment card in your e-wallet activates a message on your smartphone • For you to hit the one-click payment button and transfer funds to the inkjet cartridge manufacturer How many parts of that supply chain have, or could be disrupted?
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  Some challenges alongthe way • Battery power • Standards • Network protocols • Open APIs • Security and Privacy Concerns • “spam in the fridge”…” a fridge too far” • Business Models • Revenue • Infrastructure Costs • Support The dots need to be joined up
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  …but the implicationsand opportunities are significant • Big Data analysis • Growth of data storage • Wireless networking, bandwidth etc. • Application frameworks • Operational efficiencies • Know your (and everyone else’s) customer…intimately Let’s break out what’s happening in the area of Big Data
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  In 2014 thestrongest Big Data business will be in services and software rather than storage arrays Figure1- Source:Wikibon2013
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  31% compound annualgrowth rate over the five year period 2012-2017
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  Storage hasn’t joinedthe Big Data party yet • Storage systems decline 4.8% to $27.9 bn • Disk drives fall 0.3% to $45.1 bn • Flash drives grow by 7.4% to $5.6 bn • EMC leads the storage systems market • Western Digital and Seagate lead the disk drive market • SK Hynix, Micron and TI lead the NAND market The discrepancy in growth after 2008 demonstrates that many users don’t need system vendors to handle unstructured data challenges
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  Top 10 BigData Vendors 2012 Vendor BigDataRevenue ($millions) TotalRevenue ($millions) BDRevas%of TotalRev BigDataH/W % BigDataS/W % BigData Services% IBM $1,306 $103,930 1% 19% 31% 50% HP $664 $119,895 1% 34% 29% 38% Teradata $435 $2,665 16% 31% 28% 41% Dell $425 $59,878 1% 83% 0% 17% Oracle $415 $39,463 1% 25% 34% 41% SAP $368 $21,707 2% 0% 67% 33% EMC $336 $23,570 1% 24% 36% 39% CiscoSystems $214 $47,983 0% 58% 0% 42% PwC $199 $31,500 1% 0% 0% 100% Microsoft $196 $71,474 0% 0% 67% 33% Source: Wikibon 2013 IBM have a very strong market share and are well placed to take advantage of likely future trends
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  The key togrowth will be in identifying use cases and their benefits Source: IDC
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  There probably won'tbe a big breakout moment for the Internet of Things in 2014 • Don’t get carried away • We are will on the way to 50 billion devices on the internet by 2022 but many elements of IOT have not crossed the chasm yet • But do keep looking out for new innovative technologies and business opportunities • Build up truly collaborative relationships across the supply chain • In IOT partnering and collaboration will be the norm. • Understand and articulate the user case and business benefit • IBM have been very “Smart”. Will they be Smarter than everyone else…time will tell.
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  THANK YOU