The Future of IoT Business Models with Sylwia Kechiche

1. DATE AUTHOR
The Future of IoT
Business Models
GSMA Intelligence Webinar
27/11/2018 Sylwia Kechiche
Principal Analyst, IoT
skechiche@gsma.com

2. Agenda
Introductory Remarks
Sylwia Kechiche, Principal Analyst, IoT
Synergies of Emerging Tech: Can Blockchain fit itself into the IoT business models?
Research available now exclusively for GSMA Intelligence paid subscribers.
Christina Patsioura, Senior Analyst, Emerging Technologies
Mobile operators to capture IoT platform revenues from a position of strength
To be published in January exclusively for GSMA Intelligence paid subscribers.
Yiru Zhong, Lead Analyst, IoT and Enterprise
Q&A
5 mins
15 mins
15 mins
15 mins

3. 25 billion connected things by 2025, connections within
enterprises drive the growth

4. Connectivity will be commoditised, value generation lies within
applications, platforms and services layer
• Applications, platforms and services
(which also includes cloud data analytics
and security) is the growth area of IoT.
This will grow 30x from 2010 to 2025,
reaching $750 billion or two thirds of all
IoT revenue.
• Professional services, encompassing
systems integration, consulting and
managed services, will continue to
play an important role in enabling IoT.
Its share will increase, fueled by the
continued digitization of industries.
and security) is the growth area of IoT.
• By contrast, connectivity will
commoditise and shrink to 5%, making it
Difficult for operators to compete on the
data pipe alone.

5. One of the biggest challenges in IoT is navigating a complex
and fragmented value chain

6. Thank You!
Sylwia Kechiche
Principal Analyst, IoT
skechiche@gsma.com
Discover our 2018 IoT Research:
‘IoT: the $1 trillion revenue
opportunity’ (July)
‘IoT: the next wave of connectivity and
services’ (April)
at gsmaintelligence.com
Exclusive to paid subscribers

7. DATE AUTHOR
Synergies of Emerging Tech:
Can Blockchain fit itself into
IoT business models?
GSMA Intelligence Webinar
27/11/2018 Christina Patsioura
Senior Analyst, Emerging Technologies
cpatsioura@gsma.com

8. Poll Question:
Do you believe Blockchain,
including enterprise applications,
is overhyped?
A. Yes
B. No
C. Unsure

9. DLTs are shared data structures that enable a trusted network
for transactions among enterprise partners
Blockchain is a distributed ledger technology (DLT)
1. Digitisation (or
tokenisation) of
assets
DL network
Fast, reliable transactions of
assets
Tangible
assets
Intangible
assets
Access rights
Usage
rights
Authorised
documents
IP rights (music,
patents)
ArtefactsReal-estate
assets
MachinesProducts
Node
#1 Node
#2
2. Transaction request : Node#1
asks the other Nodes for
permission to conduct a
transaction
3. Transaction approval: all nodes
have to approve the request for new
transaction and then the DL is
updated
Nodes can be:
devices, sensors, smart
products, enterprise systems,
data centres
Source: GSMA Intelligence
Node
#N
Benefits for enterprise applications
Time & cost savings
Increased security
Increased transparency
Increased trust
1
2
3
4

10. DLTs are a natural fit for IoT technical layers and verticals
• Multi-stakeholders applications easy to coordinate
• Fraud prevention and easy to solve disputes
• Faster new device and user registrations
• Faster microtransactions for device management
• No single point of failure in the devices network
• Support constant SW/FW updates
• Faster payments in payment-intensive apps
• Increased trust among devices manufacturers,
platform vendors, operators and end users
Benefits for IoT technology and verticals
Streamline IoT
technology
Enable Trusted IoT
Verticals

11. Smart mobility and supply chain applications as suitable
verticals to incorporate DLTs
*Assessment of suitability based on criteria met by smart vertical applications Source: GSMA Intelligence (non-exhaustive list)

12. Evidence of good synergy between IoT and Blockchain, but
mature IoT players need to actively explore applications now
1
2
3
4
Enterprise software and system integrators’ vendors are the early movers in the BaaS space
Important factors in speeding up rollouts:
· Understanding the technology · Proof points of DLT benefits · Standardisation · Collaboration
Despite significant scope for innovation, actual commercial deployments have been limited to date
IoT players in the area of supply chain and mobility, followed by smart healthcare and smart energy
companies are the first adopters

13. Operators use of DLTs for IoT: strengths to leverage and
strategies to follow
√ Operator
offers IoT
platform and
has IoT
business
√ Operator
deploying
digital identity
solution
• IoT platform offering in place
• Considerable number of IoT
connections
• Presence in a variety of fields
and expertise in specific verticals
• Digital identity service and
knowhow in place
• Knowledge of IoT business
Strengths to leverage
• Off the shelf: operator acquires and
adapts BaaS offerings and
integrates into their own offering
• Co-build: operator partners with
BaaS platform vendor and other
companies (e.g. OEM offering smart
products) and jointly build a
product
• In-house: operator develops their
own DLT technology organically
(offers this service to partners
through APIs)
1
2
3
Models for deployment DLTs in IoTAssets in place

14. Thank You!
Christina Patsioura
Senior Analyst, Emerging Technologies
cpatsioura@gsma.com
DOWNLOAD NOW:
Blockchain and distributed
ledger technologies:
what’s the value for IoT?
at gsmaintelligence.com
Exclusive to paid subscribers

15. DATE AUTHOR
Mobile operators to capture
IoT platforms from a
position of strength
GSMA Intelligence Webinar
27/11/2018 Yiru Zhong
Lead Analyst, IoT and Enterprise
yzhong@gsma.com

16. One of the biggest challenges in IoT is navigating a complex
and fragmented value chain

17. IoT platforms manage the connectivity of devices, monitor
devices in the field, and simplify application development
Application Enablement Platform
(AEP)
Device Management Platform
(DMP)
Connectivity Management Platform
(CMP)
1
2
3

18. Despite almost a decade of M&A activities, the IoT platform
market remains as fragmented as the IoT application universe
2008 – 2010:
The early M2M days
2011 – 2016:
The acquisition days
Beyond 2017:
Positioning for growth
PTC
Logos not exhaustive
PTC

19. Each platform layer must support at least these common
capabilities, alongside security features
Application Enablement Platform (AEP)
Application
development & tools
Application lifecycle
management
Integration with
third party
development tools
Device Management Platform (DMP)
Device provisioning
Device monitoring,
alerting and
management
Software & firmware
updates
Device lifecycle
management
Connectivity Management Platform (CMP)
SIM provision &
management
A single, self-service
portal
Usage control &
management
Network analytics

20. Poll Question:
What is your biggest barrier to differentiating your
platform capabilities from your competitors?
A. Being able to offer competitive pricing for a customer in
terms of a total cost of ownership measurement
B. Being able to demonstrate the time to market for a
customer from the start of the commercial discussion
C. Being able to monetise the ecosystem relationships for a
customer
D. None of the above

21. Platforms must be complemented with additional capabilities
and services to support enterprises’ IoT strategies
Application Enablement Platform
(AEP)
Device Management Platform
(DMP)
Connectivity Management Platform
(CMP)
1
2
3
Security
Applications
Data Analytics
Cloud

22. Thank You!
Yiru Zhong
Lead Analyst, IoT and Enterprise
yzhong@gsma.com
Available this January:
Deep Dive: IoT Platforms
at gsmaintelligence.com
Exclusive to paid subscribers

23. Q&A
Sylwia Kechiche, Principal Analyst, IoT
Christina Patsioura, Senior Analyst, Emerging Technologies
Yiru Zhong, Lead Analyst, IoT and Enterprise

24. Thank You!
Sylwia Kechiche
Introductory Remarks
skechiche@gsma.com
Christina Patsioura
Blockchain for IoT
cpatsioura@gsma.com
Yiru Zhong
IoT Platforms
yzhong@gsma.com
Twitter: @GSMAi
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GSMA Intelligence services:
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