Like many new technology trends – such as Big Data or Cloud Computing – that have captured the imagination of consumers and business executives alike, the Internet of Things, or IoT, has become a bit like a “Rorschach Test.” People see what they want to see with the term is invoked. To be fair, IoT lends itself to this tendency, because the concept is so incredibly big, and its implications so deep. At its root IoT is about devices talking to each other without human intervention using the internet protocol. But this alone would cleanly fall into the category of machine-to-machine (M2M) communications. “When you look at what’s happening with IoT devices, explains Danny Lousberg, Director of Product Management for Qeo at Technicolor, “you will see a huge effort to create a vertical ecosystem in which a specific device is communicating with a specific back-end server that lives somewhere in the cloud to tackle a specific use case for the user. And that means these devices all are battling for a piece of mindshare and eyeballs.” “The Internet of Things is inherently different from M2M communication because M2M is really meant to solve large-scale problems for a big group of devices that are all trying to work together in a larger environment that is not necessarily controlled by the end user.” What makes IoT truly powerful is when M2M is linked to Mobility, Big Data, Cloud Computing and other critical elements in today’s modern technology infrastructure to empower and provide options to end-users. “From my perspectives, it will be virtually impossible to view these technological paradigms independent of each other and from IoT,” says Kurt Jonckheer, General Manager, Virdata, and VP, Strategic Projects, Technicolor. “The promise of IoT is that devices and appliances of all sorts will, without human interference, interact with each other to create a better experience for users by engaging in things like self-diagnosis, harnessing event-driven actions that enhance the human experience, or simply reduce costs in an intelligent and automated manner.” This combination of technologies is already generating billions of dollars in revenue. Trillions more will be triggered as businesses come to grips with the true potential of IoT.

1. technicolor
IoT’s Rapid
Evolution
Marks the
Next Stage in
the Innovation
Economy

2. THE FUTURE TRUST technicolor 2
IoT’s Rapid Evolution Marks the Next
Stage in the Innovation Economy
INTRODUCTION
Like many new technology trends – such as Big Data or Cloud
Computing – that have captured the imagination of consumers
and business executives alike, the Internet of Things, or IoT,
has become a bit like a “Rorschach Test.” People see what they
want to see with the term is invoked.
To be fair, IoT lends itself to this tendency, because the concept
is so incredibly big, and its implications so deep. At its root IoT
is about devices talking to each other without human intervention
using the internet protocol. But this alone would cleanly fall into
the category of machine-to-machine (M2M) communications.
“When you look at what’s happening with IoT devices, explains
Danny Lousberg, Director of Product Management for Qeo
at Technicolor, “you will see a huge effort to create a vertical
ecosystem in which a specific device is communicating with a
specific back-end server that lives somewhere in the cloud to
tackle a specific use case for the user. And that means these
devices all are battling for a piece of mindshare and eyeballs.”
“The Internet of Things is inherently different from M2M
communication because M2M is really meant to solve large-scale
problems for a big group of devices that are all trying to work
together in a larger environment that is not necessarily controlled
by the end user.”
What makes IoT truly powerful is when M2M is linked to Mobility,
Big Data, Cloud Computing and other critical elements in today’s
modern technology infrastructure to empower and provide
options to end-users.
“From my perspectives, it will be virtually impossible to view these
technological paradigms independent of each other and from IoT,”
says Kurt Jonckheer, General Manager, Virdata, and VP, Strategic
Projects, Technicolor.
“The promise of IoT is that devices and appliances of all sorts
will, without human interference, interact with each other to
create a better experience for users by engaging in things like
self-diagnosis, harnessing event-driven actions that enhance
the human experience, or simply reduce costs in an intelligent
and automated manner.”
This combination of technologies is already generating billions
of dollars in revenue. Trillions more will be triggered as
businesses come to grips with the true potential of IoT.
IoT MARKET PROJECTIONS
Indeed, the trillion dollar threshold may have already been
crossed, according to some analysts. Researchers at
MarketsandMarkets believe that the value of the IoT market was
worth $1.03 trillion in 2013; they expect demand to reach $1.4
trillion by 2020, as the market grows at an estimated CAGR of
4.08 percent from 2014 to 2020.
Meanwhile, a research study underwritten by Cisco attributes
profits generated by what they call the Internet of Everything

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(IoE) to be $613 billion globally for 2013. According to their
“IoE Value Index” study, corporations could nearly double those
profits through greater adoption of business practices, customer
approaches and technologies that leverage IoT. While IoT is
already driving private-sector corporate profits, it is estimated that
an additional $544 billion could be realized if companies adjust
their strategies to better leverage it.
Analysts at Gartner could not agree more.
“The enormous number of devices, coupled with the sheer
volume, velocity and structure of IoT data, creates challenges,
particularly in the areas of security, data, storage management,
servers and the data center network, as real-time business
processes are at stake,” says Joe Skorupa, vice president and
distinguished analyst at Gartner.
“Data center managers [for instance] will need to deploy more
forward-looking capacity management in these areas to be able
to proactively meet the business priorities associated with IoT.”
But there is a caveat associated with the complexity
IoT introduces.
“In this early and emergent phase of development, entrepreneurs
are experimenting across such a diverse range of sectors,
applications, business models and technologies in their efforts to
uncover value. This creates confusion and makes it difficult for
others to easily identify the potential in their own geographies,
industries and business sectors,” says Hung LeHong, vice
president and Gartner Fellow.
BIG DATA IN REAL TIME... AND HISTORICAL CONTEXT
Perhaps the simplest way to grasp the full implications of IoT,
is to understand the surging amount of data that will have to
be analyzed, while the time needed to understand and act on
the information decreases.
“It is all about big data and developing an integrated strategy for
understanding a combination of structured and non-structured
data in real time -- as well as undertaking analysis with historical
data stores,” explains Virdata/Technicolor’s Jonckheer.
“This puts us into an entirely new world in terms of both scale
and complexity. When scale and complexity collide with the need
for devices, appliances and other assets to interact naturally with
their environment, you change the nature of how analytics are
traditionally performed,” he says.
That is why Dirk Van den Poel, Professor, Department of
Marketing at Ghent University, believes that the ability to engage
in rapid and sophisticated analytics is the key to driving the
ultimate value of IoT for both consumers and businesses.
“It is the descriptive, predictive and prescriptive analytics that
will give true meaning to the Internet of Things. I think we’re just
scratching the surface of all of the new developments that might
become possible in the future. It’s the automatic gathering of data
and the ability to immediately put that data into context that will

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be the key to the whole story. And it is not just about stopping to
gather the data, of course; but also acting on it in immediately.
That is why I think IoT is much bigger than we actually realize at
the moment. It’s going to be pervasive. Every single sector of the
economy will be touched by this.”
THE DEMOCRATIZATION OF IoT
One of the most significant consequences from the rise of the
Internet – especially the pervasiveness of the World Wide Web –
stemmed from its ability to offer all kinds of users – including
large corporations and modest consumers – with access to
information and communication resources. For IoT to fulfill its
full potential, the same access will have to take place.
“While it is true that analytics in the context of distributed
architectures have been around for many years, access has
really been limited to only the largest of organizations,”
explains Jonckheer.
“In today’s cloud computing environment, these capabilities
become available to enterprises of every size – from startups
to the largest companies and institutions. This is rapidly
changing how most of us think about analytics. We will break
with the concept of doing exclusively “batch” analysis. More
and more of us will come to have much more dynamic
expectations from analytical initiatives; understanding how
people and “things” change in near real time while data is in
motion will become critical.”
“At Virdata, we have developed a way of working on stored data
while simultaneously working on data-in-motion. This requires an
architecture that is fundamentally different from what currently
exists in more traditional enterprise legacy systems. My team was
very lucky. When we started working on Virdata, we did not have
to deal with traditional legacy systems. We were not constrained
by the limitations that drove previous analytical designs.”
This, he explains allowed the Virdata team at Technicolor to
imagine new architectures that were based on harnessing the
attributes of distributed systems, parallel processing engines,
and in-memory processing capabilities. As the thinking has
matured, the team is starting to really gain momentum, borrowing
from the intellectual capital that has been leveraged to build
social networks and new concepts associated with remotely
monitoring assets.
Meanwhile, Technicolor’s Qeo team has been focused on
ensuring that end-users are both enhanced and empowered
to work with these technologies across a heterogeneous range
of products and services.
“The whole goal of designing Qeo was to make sure that you can
make those eye-catching applications and devices that people
really want to have in their homes,” says Lousberg. “But you have
to do it in a way that consumers are not forced to rely on a single
individual user interface for that experience.”
For instance, if consumers have a smart television that is
enmeshed in an IoT environment, would it not be easier to use

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smart phones to pick and choose video-on demand programming,
rather than a cumbersome remote control that is dedicated to
channel and program selection?
As the Internet of Things era continues to mature, interactions
among once disconnected devices will become more intuitive
to operate. It will also create touch points and transactions that
can be captured (most likely by cloud-based applications) and
analyzed to understand and respond to the needs and desires of
consumers.
This process of maturation, contends Jonckheer, creates a much
more flexible, nimble and efficient paradigm for processing,
analyzing and sharing the results of that analysis with all
appropriate end-points in a real-time – or near real-time –
environment. It lays the foundation for IoT to improve our lives
and our businesses by:
●● Protecting our health. When current and upcoming mobile
and wearable devices, sensors, and other embedded
electronic assets are integrated with cloud-based diagnostic
technologies, the analysis and results can be amazingly
accurate. And the information can be made available to
doctors and patients in real time.
●● Optimizing our entertainment experiences. IoT makes
it possible to build intuitive and automated systems for
suggesting the movies or music that we are likely to enjoy
most based on our mood or situation.
●● Saving money and resources. IoT can help manage
consumption of natural resources based on an intelligent
and automatic assessment what should be delivered on a
‘consume-as-you-go’ basis.
“IoT applications and services will therefore drive new business
models, new consumption patterns. It will stimulate innovation,
new economic growth. IoT and the cloud-based resources
that connect devices to powerful real-time analytical engines
are rapidly evolving to truly surround each of us to create an
immersive environment that will augment a rapidly growing array
of our experiences,” concludes Jonckheer.

6. ABOUT TECHNICOLOR
With more than 99 years of experience in entertainment innovation, Technicolor serves an international base of entertainment, software, and gaming customers. The company
is a leading provider of production, postproduction, and distribution services to content creators and distributors. Technicolor is one of the world’s largest film processors;
the largest independent manufacturer and distributor of
DVDs (including Blu-ray Disc); and a leading global supplier
of set-top boxes and gateways. The company also operates
an Intellectual Property and Licensing business unit.
For more information: www.technicolor.com
Contact Information
Published by the Thought Leadership Team
ritu.asthana@technicolor.com
© Copyright 2014 Technicolor. All rights reserved. All tradenames referenced are service marks, trademarks, or registered trademarks of their respective companies. Specifications subject
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