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Evan Liu - Innovation on 50B Connections - speech at CMDC 2010

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As a speech on CMDC (China Mobile Developer Conference) 2010, Evan talked about Ericsson's vision of 50B connections in 2020, what chances could be found on such a industrial trend, how to innovate ...

As a speech on CMDC (China Mobile Developer Conference) 2010, Evan talked about Ericsson's vision of 50B connections in 2020, what chances could be found on such a industrial trend, how to innovate for Mobile Internet developers, and how Ericsson Labs supports mobile developers.

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    Evan Liu - Innovation on 50B Connections - speech at CMDC 2010 Evan Liu - Innovation on 50B Connections - speech at CMDC 2010 Presentation Transcript

    • Innovation on 50B connections 500 亿连接上的创新 Evan (Qingyan) Liu 刘青焱 evan.l.liu@ericsson.com
    • Outline
      • Ericsson’s vision of 50B connections in 2020
      • Methodology of open and innovation
      • Ericsson Labs and Ericsson Application Award
    • Ericsson’s vision of 50B connections in 2020
    • Off the press Global Measured data Traffic Nearly Triples in 1 year
      • Global measured mobile data traffic stands at 225 000 TB/month
        • As off Q2 2010
      • Mobile Data grew 10 times faster than voice
        • Grew 171% from Q209 to Q210 versus 16% for voice
      • Regional Variation in line with forecast and network deployments
        • EMEA leading global traffic
        • Voice higher than data in APAC
      PRESS RELEASE Aug 12, 2010
    • Measured voice and data traffic – global Total * Measured Data Updated Aug 2010 Source: Ericsson Measurements in Global Networks (DVB-H, Mobile WiMax, M2M and WiFi traffic not included) This slide contains forward looking statements
      • Q209 to Q210 – Mobile Data Traffic nearly Triples
      • Mobile Data traffic grew 10 times faster than voice
    • Measured voice and data regional breakdown EMEA APAC Measured Data Updated Q2 2010 Source: Ericsson Measurements in Global Networks (DVB-H, Mobile WiMax, M2M and WiFi traffic not included)
      • EMEA dominates the global traffic with more Mobile BB
      • APAC Voice still dominates, but data catching up
    • Key Messages : 50B connections Opportunity 10X New telecom cycle “Connecting 50B devices by 2020” 1
    • inflection points 10X the Opportunity 1875 1900 1925 1950 1975 2000 2025 50 B 5.0 B ~0.5 B PLACES PEOPLE THINGS Inflection points Global Connectivity Personal Mobile Digital Society Sustainable World Source: Ericsson
    • New devices and new industries bring new business opportunities New telecom cycle: 10x devices, 10x industries Connected Devices Worldwide Traffic systems, Automotive Transport and logictics Utilities – smart grid Security – connected buildings Home appliances Medical automation, Remote healthcare ATM, Point of sale, Vending Critical infrastructures Monitoring and control 0 10b 20b 30b 40b 50b 2007 2010 2014 2020 Consumer Electronics Fixed phones / IP phones Mobile phones More devices per person Addressing Industries PCs M2M eBook readers, Music players, DVD players, Gaming devices, Cameras, Home appliances, In-vehicle entertainment etc. Source: Ericsson Note: Connected devices / connections (not including tags e.g. RFIDs, including 802.15.4) This slide contains forward looking statements
    • Connected devices Businesses Societies People Online homes Personal network Intelligent transport Smart utilities Industry & society
    • 50 billion Connected devices 2020 2020 Businesses Societies People Online homes Personal network Intelligent transport Smart utilities 3B middle class consumers x 10 connected devices 30B connected consumer devices >1 billion vehicles >100B embedded processors shipped (cumulative) >3 billion utility meters Industry & society
    • Key Messages : Ericsson’s actions Products & Solutions Ready NOW Ecosystem for 50B expansion Ericsson enables “operators” to handle M2M for health, auto, connected devices & utilities 2 Ericsson teaming with ecosystem in addition to the operators to realize the vision of 50B 3
    • Operators are active Source: Ericsson, 2010
    • Ericsson Enabling Operator M2M 5 Steps to 50B HANDSET & DEVICES GOVERNMENT UTILITIES OPERATORS TV & MEDIA   HEALTH TRANSPORT
      • Connected Devices
      • Cloud Services
      • Horizontalization
      • Operator Service Platform
      • Smart Pipe
      Operator driven focus area Ericsson Labs
    • Ericsson Enabling M2M 5 Steps to 50B with Ecosystem HANDSET & DEVICES GOVT UTILITIES OPERATORS TV & MEDIA   HEALTH TRANSPORT Smart Cities Security Safety Sustainability Chips Laptops MIDS Home Phones & OS Service Layer Smart Meters Smart Grids Sustainability Collaboration Wireless Car Systems Solutions Hosting
    • Key Messages Opportunity 10X Products & Solutions Ready NOW Ecosystem for 50B expansion New telecom cycle “Connecting 50B devices by 2020” 1 Ericsson enables operators to handle M2M for health, auto, connected devices & utilities 2 Ericsson teaming with ecosystem in addition to the operators to realize the vision of 50B 3
    • Open Questions: 1000X the traffic in 2020
      • Will that generate 1000 times the ARPU?
      • Will that allow 1000 times the power consumption?
      • Will we find 10X the number of sites, to place new Node-B’s?
      • What new service demand will there be
        • Quality of service?
        • Service enablers?
      • What does this imply to the backbone
        • Content delivery
        • Smart pipe etc
    • Methodology of open and innovation
    • Mobile Internet: the most evolved till today Telegraph Telephony Internet Fixed Mobile Electromagentic information bearer IoT
    • Business Model Evolution: from innovation 1.0 to 2.0 $ $ $ $ $ $ $ Product Product Product Product Telecom Internet/Media Mobile Internet/Cloud FREE/FREEMIUM consumer cost per bit ECOSYSTEM
    • Innovation 1.0 disruptive sustaining Innovation 1.0: a series of innovations with bigger and bigger scales. Blue triangle means in-house innovation. Gray triangle means future innovation. The triangle denotes the RPV (Resource, Process, Value) criteria from Clayton M. Christensen , Innovators’ Solution
    • Innovation 2.0 disruptive Innovation 2.0: a mass of innovations with “long tail” scales. Innovation platform (ecosystem) Yellow triangle means 3rd-party innovation.
    • From 1.0 to 2.0: Open the Platform open the platform For example. Facebook itself at first was a SNS website. At around 2008, it opened itself to become an open platform to involve many 3rd party developers to innovate based on its open platform.
    • Keyword of Innovation 2.0: Open Community Innovators The company Scalable Resource Scalable Innovation outsourcing crowdsourcing Methodology: Cloud Computing Methodology: Open Platform Competence: - Huge computing resource - Huge consumer base Competence: - Low-cost to fail - Freely evolved - Close to market enablers enablers in different verticals
    • Keyword of Innovation 2.0 : ecosystem In: Cash2User Out: User2Cash Cloud Ecosystem $ $ Platform (App Container) Community Innovators Apple store: near-free market with lots of consumers Apple store: pay per download Amazon affiliate program iPhone Mozilla Firefox Facebook Open Platform Amazon EC2 Google AppEngine ROI is KING! x-axis: business y-axis: technology in different verticals Ericsson Labs
    • Open Questions
      • Why App Store is strategically so important while it doesn’t generate much gross profit for Apple (only ~1%)?
      • What is the most important thing for your open strategy?
      • What kind of brand-new opportunities can we innovators found on 50B connections? Mobile Internet? M2M? etc?
    • An Innovation Mall http://labs.ericsson.com /cn 新浪微博 / 搜狐微博: @ericssonlabs Ericsson labs
    • Open innovation
      • Mobile Applications are today developed by anyone
      • Support developers creating new innovations
      • Feedback on new technology developed
      labs.ericsson.com /CN Target group
    • The Power of the Network
      • Knows
        • Who your users are
        • Where they are
        • Where they have been
        • Who they know
      • Can
        • Push content to your users anytime
        • Handle payment and money transfer
      • … and much more
    • Developer Dilemma Researcher iPhone Developer Hobby Developer Telecom Developer Student Android Developer Java Developer Web Developer Operator Operator Operator Operator
    • Ericsson Labs: an initiative for open innovation by Ericsson Research
      • Innovate. Simplify. Open. Converge.
      Enablers Internet Cloud Telecom Cloud Web app Client-side app ( Open API ) App-side simplicity (REST & SDK) Cloud-side complexity Researcher iPhone Developer Hobby Developer Telecom Developer Student Android Developer Java Developer Web Developer Ericsson Labs Operators Capability Providers
    • ericsson labs API’s SMS Send & Receive Communication Framework Communication Group Voice Mixer Mobile Push Web Location Web Maps Mobile Maps Mobile Location 3D Landscape Maps & positioning Streaming Media Media & graphics Converting Media Face Detector Text To SPeech labs.ericsson.com /CN Cluster Constructor Machine Learning Security Mobile Web Security Bootstrap Tag Tool NFC & Sensors Sensor Networking Application Platform Network probe User & network Information Mobile Identification Mobile Network look-up Web Connectivity Web Technologies EventSource Web background
    • Ericsson Application Awards 2011
      • Theme: ”Connected Things”
      • Official Launch @ Droidcon London 2010
      • More details ericssonapplicationawards.com
      Oct 2010 March 2011 Jun 2011 Prize Ceremony Submissions Launch Beta-test
    • ericsson application awards 2010
      • Registered developers : ~800
      • Registered Teams: 120 representing 28 countries
      • Applications: 43 (43 t eams submitted their apps)
      • 3 t eams from China reached the semi-finals. The teams w ere awarded with Sony Ericsson Xperia X10
      • The finalists w ere awarded at Nordic Mobile Developer Summit 2010
        • Interviews http:// www.youtube.com/watch?v =V9scEKvesZQ
      • Finalists represented Ireland, Italy and China(KTH)
    •