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Internet of Things - October 2013 - Chandna

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Internet of Things - October 2013 - Chandna

  1. 1. Asheem Chandna SANS – Internet of Things October 2013
  2. 2. Agenda • Greylock • Hype vs. reality • Challenges and opportunities • Venture investment • Summary Page 2
  3. 3. Greylock Partners • Founded in 1965 • Menlo Park (primary) and Cambridge • Currently investing out of Greylock 14 ($1B fund) • Two primary areas of investment focus • Consumer Internet • Enterprise IT • Invest across stages, with strong focus on early-stage • Investors with industry operating backgrounds Page 3
  4. 4. Asheem Chandna • 15+ years product management, marketing, business development • • • BSEE, MS Computer Engineering – Case Western Reserve University AT&T Bell Labs, SynOptics / Bay Networks, CoroNet / Compuware Check Point Software ($10M -> $550M+) • 10+ years venture capital (investing and company building) • • CipherTrust (INTC), PortAuthority (WBSN), Securent (CSCO), Aruba (ARUN), Sourcefire (CSCO), Zenprise (CTXS), Imperva (IMPV), Xsigo (ORCL) Palo Alto Networks (PANW), Sumo Logic, AppDynamics, Delphix, Aquantia, SkyHigh, Avi Networks, Instart Logic, Tech Process Page 4
  5. 5. Greylock enterprise companies Cloud Infrastructure Cloud Services Applications Data and Analytics * Management Security Storage Networking *
  6. 6. Greylock consumer companies Commerce Media Ads Social Mobile
  7. 7. Internet of Things – a definition “Imagine if all the objects in the world had all the information that they needed to function optimally.” – The Economist, 2010 • Sea change in # of sensors + actuators that can communicate • Massive new data sources • Increasing automation (M2M) Page 7
  8. 8. Reality vs. hype: 50 billion connected objects? Page 8
  9. 9. $1 Trillion in new revenue? Biggest categories: Security, Education, Industrial Automation? Page 9
  10. 10. Another view on future revenue? Connection Revenues from Application Connected Car Clinical Remote Monitoring Assisted Living Home and Building Security Pay-As-You-Drive Car Insurance New Business Models for Car Usage Smart Meters Traffic Management Electric Vehicle Charging Building Automation 2020 ($ billions) 600 350 270 250 245 225 105 100 75 40 (GSM Association of Mobile Operators) Biggest categories: Cars, Healthcare, Security? Page 10
  11. 11. 6 devices per human? Page 11
  12. 12. Not a new idea… “When wireless is perfectly applied the whole earth will be converted into a huge brain...and the instruments through which we shall be able to do this will be amazingly simple compared with our present telephone. A man will be able to carry one in his vest pocket.” - Nikola Tesla, 1926 Page 12
  13. 13. But increasing recent interest 2005 2013 Page 13
  14. 14. Especially in Asia… Page 14
  15. 15. And increasing public awareness Page 15
  16. 16. Big companies focusing too… Page 16
  17. 17. Big companies focusing too… Page 17
  18. 18. Hype may be ahead of reality, but future growth could surprise on upside…. IoT? Page 18
  19. 19. New challenges Connectivity Footprint Security Scale Battery Life Page 19
  20. 20. Scale Increasing devices (sensors) data from each sensor big data problem Simple example: If every car in the US records location data every 30s while driven… 16 trillion data points / year Google Self-Driving Car… 750 MB / sec sensor ingest Page 20
  21. 21. Security • Exponential expansion in attack surfaces • Changing threat landscape • Privacy concerns • Hardware refresh cycle • Increased stakes • • Critical infrastructure Kinetic cyber attacks (e.g. Stuxnet) Page 21
  22. 22. Shodan Search engine for servers, routers, load balancers, computers… Search by location, hostname, OS, IP range, port, etc. Page 22
  23. 23. Vehicle control Page 23
  24. 24. Scada control Dan Tentler find Page 24
  25. 25. 10K+ geolocatable scada systems Eireann Leverett Page 25
  26. 26. Traffic control Page 26
  27. 27. Cams and controls in your home Page 27
  28. 28. Cheney’s heart device… Page 28
  29. 29. Transitions create opportunities Page 29
  30. 30. Transforming industries • Transportation • • • Self-driving cars reduce accident rates Free up productive time Increase fuel economy, reduce congestion, increase infrastructure load, optimize routes • Healthcare • • • • Wearables encourage weight loss Ingestable sensors Internal monitors feed data to doctors to reduce hospital visits, algorithms to look for anomalies / increase preventive care Mass tracking benchmarks effectiveness of treatments • Many others… Page 30
  31. 31. Opportunities and business models • Software platforms • End-to-end • • • • • Home automation Wearables Healthcare Industrial Transportation • Data and analytics Page 32
  32. 32. Some examples – platform Page 33
  33. 33. Some examples – end-to-end Page 34
  34. 34. Some examples – end-to-end Page 35
  35. 35. Smart marketing but… Page 36
  36. 36. Some examples – data & analytics Page 37
  37. 37. Growing VC investment in IoT $752M across 100+ deals in last year (Q2 2012 – Q1 2013) Page 38
  38. 38. Significant businesses starting to be built… $370M (market cap) $800M (last venture valuation) $1.5B (last venture valuation) $2B (acquisition by Blackstone) Page 39
  39. 39. Opportunity areas • Software platforms • End-to-end • Home automation, wearables, healthcare, industrial, transportation • Data and analytics • Transportation (self-driving, optimization) • Healthcare (monitoring, tele-health) • Utilities (climate controls, smart grid) Page 40
  40. 40. Summary • Billions of devices are expected to come online rapidly, many without adequate security • Hype ahead of reality, but industry transforming changes are ahead • Platform transitions will create opportunities for many new large companies to be built Page 41

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