Is 2014 the Year of The Internet of things?


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How the Internet of Things began, the potential and the challenges along the way. Presentation from the Arrow ECS and IBM Partner Jam 2014.

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Is 2014 the Year of The Internet of things?

  1. 1. IS 2014 THE YEAR OF THE INTERNET OF THINGS? Paul Bevan 12th March 2014
  2. 2. The Internet of Things 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
  3. 3. It started with a 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!
  4. 4. 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
  5. 5. The Growth of the 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
  6. 6. Some interesting (and wacky?) applications
  7. 7. The Potential to Disrupt 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?
  8. 8. Some challenges along the 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
  9. 9. …but the implications and 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
  10. 10. In 2014 the strongest Big Data business will be in services and software rather than storage arrays Figure1- Source:Wikibon2013
  11. 11. 31% compound annual growth rate over the five year period 2012-2017
  12. 12. Storage hasn’t joined the 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 $5.6 bn • EMC leads the storage systems market • Western Digital and Seagate lead the disk drive market • SK Hynix, Micron and TI lead the NAND market The discrepancy in growth after 2008 demonstrates that many users don’t need system vendors to handle unstructured data challenges
  13. 13. Top 10 Big Data Vendors 2012 Vendor BigDataRevenue ($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
  14. 14. The key to growth will be in identifying use cases and their benefits Source: IDC
  15. 15. There probably won't be 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.
  16. 16. THANK YOU
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