How Personal Cloud Networks Enable
New Business Models
2013-07-02
Gary Rowe, CEO
Drummond Reed, CTO
Dan Blum, Principal Co...
Introducing: Gary Rowe, CEO
2
• 35 Year technology executive with Data
General, Honeywell, NCR, AT&T
• 1998-2009: Presiden...
Today’s Presentation Will Cover
3
1.Gary
• The problem: lack of personal control on the Internet
• The solution: personal ...
4
The Problem: Managing Personal
Data, Communications, and Commerce Online
5
For many
people, managing
personal data and
communications is…
Too much work Too unsafe
Too distractingToo many owners
O...
6
Personal
computers, smartphones, and social
networks were supposed to make all
this much easier for us…
7
…instead they have just given us
more data, relationships, and
communications to manage—
and less control
• Without data ownership there can be no expectation of privacy
• Aggressive data aggregation & behavioral tracking is cau...
Businesses are also Between a Rock and a Hard Place
– Want user data at scale, but its
hard to quantify ROI
– Unsustainabl...
10
• A cloud-based platform the individual owns and controls
– A repository for my data, applications and preferences
– A pla...
12
Personal clouds are #3 on
Gartner’s list of Top 10 Strategic
Technologies of 2013
Many vendors already offer proprietary personal cloud
storage solutions for this purpose
13
But cloud
storage is just
the tip of the
iceberg
The real
potential of
personal
clouds is
much larger
14
Why? Because a personal cloud
is more than just a way to share
data between all of your devices… Personal Cloud
15
…it is a way to share data across a new kind of network
16
This is a dramatically
different model than today’s
social networks, whose value
lies in aggregating and
centralizing vast...
A peer-to-peer trusted communications network
18
A network that can also safely connect people to businesses
Business Cloud
19
A personal cloud network
Business Cloud
20
So a personal cloud network brings Privacy by Design
to personal data sharing on a global scale
Business Cloud
21
✔
✔ ✔
✔
✔
22
Personal Cloud Network Benefits
Each link on the network is a secure communications
connection called a personal channel
23
Personal channel
A personal channel is an opt-in permissioned relationship
for exchanging both secure messages and secure data
24
Secure me...
So the first major benefit is providing a P2P channel for
communication and semantic data exchange
Business Cloud
25
✔
✔ ✔...
26
This leads directly to the second major benefit: a
personal cloud network can offer network-wide
safe single sign-on
For example, Respect Connect will offer an alternative to
Facebook Connect through your personal cloud
27
Personal cloud
l...
28
The third major benefit is that, just like a social network
or a smartphone, a personal cloud network is a
platform for...
However these apps can offer new trusted data sharing
services not available from social/mobile apps today
29
Secure messa...
30
The fourth benefit is that a personal cloud network is the
next major step in digital relationship management
This is the vision of Vendor Relationship Management
led by Doc Searls at the Harvard Berkman Center
For a marketer, a personal channel is a new tool for building
lifetime relationships and high-loyalty customers
32
Ongoing...
33
How it Works: The 3 Layers of a
Personal Cloud Network
Introducing: Drummond Reed, CTO
34
• 1995-2007: Co-Founder & CTO, Cordance
• 2004 – Co-Chair, OASIS XDI Technical Committe...
35
Building a successful
personal cloud network
requires all three layers of
the ―BLT sandwich‖—
business, legal, and
tech...
The technical layer: the personal cloud ―stack‖
Members People &
Businesses
Mobile Apps
Whisper
JSON &
XDI
Endpoints
Apps
...
• A personal cloud is modeled as a
semantic data graph
• The graph maps your
identities, data, and relationships
across mu...
The technical layer: XDI semantic data interchange
protocol
38
Secure messaging
Secure data sharing
XDI is an open standar...
39
Even with the best
technology in the
world, without a strong
trust model no one will
use a personal cloud
network
Techn...
40
Type Trust Framework
U.S FICAM
Status
U.K. Identity Assurance
U.S. NSTIC
Kantara Identity Assurance
Telecom Data Verifi...
Designed specifically for the
privacy and security requirements
of a P2P personal cloud network,
the Respect Trust Framewo...
42
To reach its potential, a
personal cloud network
also requires a
sustainable, scalable
business model
Technical Layer
L...
For example, the Respect Network business model is patterned
after the credit card interchange fee model
43
Payment
Transa...
44
This model has already attracted a rich ecosystem of
partners
45
Next Steps: Bringing Personal Clouds
and Business Together
Introducing: Dan Blum, Principal Consultant and
Chief Security Architect
46
• Internationally-recognized security and iden...
47
Understand the Personal Cloud Value Chain
Developers
Businesses
Consumers and businesses
receive the relationship value...
• Lifetime customer relationship management
• Safe, permanent single sign-on
• One-click semantic data sharing
• Secure cl...
• New revenue stream
• New service offerings
• Build customer trust
• Gain customer insight
• Increase customer retention
...
• Respect Connect: From Social Login to Personal Cloud Login
• Trust and Reputation on a Personal Cloud Network
• CRM Meet...
• Purpose
– Assess an organization’s opportunities and readiness for personal cloud
– Develop a strategy, plan for the fut...
Gary Rowe, CEO
Drummond Reed, Founder
Dan Blum, Principal Consultant
gary@respectnetwork.com
drummond@respectnetwork.com
d...
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How Personal Cloud Networks Enable New Business Models

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These are the slides from the first webinar in the Respect Network Personal Cloud Webinar Series. They provide an introduction to personal clouds and personal cloud networks and explain why they will enable new business models based on higher trust in digital relationships.

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How Personal Cloud Networks Enable New Business Models

  1. 1. How Personal Cloud Networks Enable New Business Models 2013-07-02 Gary Rowe, CEO Drummond Reed, CTO Dan Blum, Principal Consultant
  2. 2. Introducing: Gary Rowe, CEO 2 • 35 Year technology executive with Data General, Honeywell, NCR, AT&T • 1998-2009: President, Burton Group – Highly respected research and analyst firm in identity, directory, security, cloud computing and privacy areas – Grew annual revenue from $1.5M in 1998 to $30M+ – Sold to Gartner in Dec. 2009 • 2010-Present: Active investor with Tech Coast Angels in San Diego • 2011-2012: Advisor to Respect Network Corp • October 2012: Joined as CEO
  3. 3. Today’s Presentation Will Cover 3 1.Gary • The problem: lack of personal control on the Internet • The solution: personal clouds and personal cloud networks • Major benefits of a personal cloud network 2.Drummond • How it works: the 3 layers of a personal cloud network 3.Dan • Next steps: bringing personal clouds and business together
  4. 4. 4 The Problem: Managing Personal Data, Communications, and Commerce Online
  5. 5. 5 For many people, managing personal data and communications is… Too much work Too unsafe Too distractingToo many owners OVERWHELMING
  6. 6. 6 Personal computers, smartphones, and social networks were supposed to make all this much easier for us…
  7. 7. 7 …instead they have just given us more data, relationships, and communications to manage— and less control
  8. 8. • Without data ownership there can be no expectation of privacy • Aggressive data aggregation & behavioral tracking is causing further erosion – Geo-location data on mobile devices – Tracking tied to social networks and social login services – Ads popping up with a context you didn’t think you had exposed – Google and Facebook everywhere, correlating your data – WSJ “What They Know” series of articles – “Creepy factor” • Consumers accept some lack of privacy in exchange for valuable services, but we are approaching a tipping point as businesses push for more and more private data 8
  9. 9. Businesses are also Between a Rock and a Hard Place – Want user data at scale, but its hard to quantify ROI – Unsustainable dose of “big data steroids” to maintain growth – How can “big data” comply with rising regulations internationally? – Only a few huge businesses with large lobbying and security expenses can win at that game – Other businesses reduced to taking the crumbs on the table 9
  10. 10. 10
  11. 11. • A cloud-based platform the individual owns and controls – A repository for my data, applications and preferences – A place to manage connections, relationships, communication – My oasis on the Internet • Secure, lifetime data repository with NO ambiguity in terms of who controls the data • A platform for applications—much like a personal computer or smartphone—but running in the cloud and accessible from all my devices 11
  12. 12. 12 Personal clouds are #3 on Gartner’s list of Top 10 Strategic Technologies of 2013
  13. 13. Many vendors already offer proprietary personal cloud storage solutions for this purpose 13
  14. 14. But cloud storage is just the tip of the iceberg The real potential of personal clouds is much larger 14
  15. 15. Why? Because a personal cloud is more than just a way to share data between all of your devices… Personal Cloud 15
  16. 16. …it is a way to share data across a new kind of network 16
  17. 17. This is a dramatically different model than today’s social networks, whose value lies in aggregating and centralizing vast quantities of personal data 17
  18. 18. A peer-to-peer trusted communications network 18
  19. 19. A network that can also safely connect people to businesses Business Cloud 19
  20. 20. A personal cloud network Business Cloud 20
  21. 21. So a personal cloud network brings Privacy by Design to personal data sharing on a global scale Business Cloud 21 ✔ ✔ ✔ ✔ ✔
  22. 22. 22 Personal Cloud Network Benefits
  23. 23. Each link on the network is a secure communications connection called a personal channel 23 Personal channel
  24. 24. A personal channel is an opt-in permissioned relationship for exchanging both secure messages and secure data 24 Secure messaging Secure data sharing Respect Network communications are based on the open standard XDI semantic data interchange protocol Business Cloud
  25. 25. So the first major benefit is providing a P2P channel for communication and semantic data exchange Business Cloud 25 ✔ ✔ ✔ ✔ ✔
  26. 26. 26 This leads directly to the second major benefit: a personal cloud network can offer network-wide safe single sign-on
  27. 27. For example, Respect Connect will offer an alternative to Facebook Connect through your personal cloud 27 Personal cloud loginsSocial network Social logins • Proprietary • Not portable • Not contextual • Limited data sharing options • Depends on the social network • Lost if you lose the account • Open standard • Portable • Contextual • Unlimited data sharing options • Under your personal control • Protected for life
  28. 28. 28 The third major benefit is that, just like a social network or a smartphone, a personal cloud network is a platform for new apps Social Mobile
  29. 29. However these apps can offer new trusted data sharing services not available from social/mobile apps today 29 Secure messaging Secure data sharing Personal clouds will enable developers to: • Strongly assure users that the app will respect each user’s personal data • Securely message and intelligently notify users without writing any additional code • Store and access shared data with a full, standard, portable permission model • Create new shared data types at either the global or community levels • Give users full data portability with no additional effort App Cloud
  30. 30. 30 The fourth benefit is that a personal cloud network is the next major step in digital relationship management
  31. 31. This is the vision of Vendor Relationship Management led by Doc Searls at the Harvard Berkman Center
  32. 32. For a marketer, a personal channel is a new tool for building lifetime relationships and high-loyalty customers 32 Ongoing intimate dialog about customer needs and company offers Personal channels enable businesses to: • Give customers one-click access (e.g., sign- on, ordering, receipts, recommendations) • Learn more about a customer with one-click (e.g., sizes, preferences, reputation) • Be notified about customer events and intents (e.g., change-of-address, new baby) • Notify customers about exactly the topics in which they are interested • Retain customers no matter how often they move or change contact addresses Business Cloud
  33. 33. 33 How it Works: The 3 Layers of a Personal Cloud Network
  34. 34. Introducing: Drummond Reed, CTO 34 • 1995-2007: Co-Founder & CTO, Cordance • 2004 – Co-Chair, OASIS XDI Technical Committee • 2005 – Founding Board Member, OpenID Foundation • 2009 – 2010 Executive Director, Information Card Foundation • 2010 – Founding Executive Director, Open Identity Exchange • 2011: Co-Founder Respect Network
  35. 35. 35 Building a successful personal cloud network requires all three layers of the ―BLT sandwich‖— business, legal, and technology Technical Layer Legal/Trust Layer Business Layer Members
  36. 36. The technical layer: the personal cloud ―stack‖ Members People & Businesses Mobile Apps Whisper JSON & XDI Endpoints Apps Discovery Dictionary Reputation Billing Signaling Network Services XDI Endpoints CSPs (Cloud Service Providers) 36 DOXDesktop Apps Web Apps Respect Network APIs Peer-to-Peer Personal Clouds Square Tag Registry
  37. 37. • A personal cloud is modeled as a semantic data graph • The graph maps your identities, data, and relationships across multiple providers • Link contracts in the graph enable privacy-respecting data sharing – it’s your choice 37
  38. 38. The technical layer: XDI semantic data interchange protocol 38 Secure messaging Secure data sharing XDI is an open standard from OASIS for: • Contextual identification of people, businesses, devices, and data • Global persistent addressing of entities, attributes, and relationships • Scalable semantic mapping of data from different sources and schemas • Interoperable authorization using XDI link contracts and policy expressions • Privacy and data portability by design Business Cloud
  39. 39. 39 Even with the best technology in the world, without a strong trust model no one will use a personal cloud network Technical Layer Legal/Trust Layer Business Layer Members
  40. 40. 40 Type Trust Framework U.S FICAM Status U.K. Identity Assurance U.S. NSTIC Kantara Identity Assurance Telecom Data Verification Respect Trust Framework Mydex Trust Framework Home OIX OIX OIX Kantara OIX OIX OIX Live (2010) In progress In progress Live (2010) In progress Live (2011) In progress Government- Initiated Industry- Initiated User-Centric Digital trust frameworks are a new tool for combining technology and policy to achieve large-scale trust online
  41. 41. Designed specifically for the privacy and security requirements of a P2P personal cloud network, the Respect Trust Framework won the Privacy Award at the 2011 European Identity Conference 41
  42. 42. 42 To reach its potential, a personal cloud network also requires a sustainable, scalable business model Technical Layer Legal/Trust Layer Business Layer Members
  43. 43. For example, the Respect Network business model is patterned after the credit card interchange fee model 43 Payment Transaction Relationship Issuing bank Acquiring bank Interchange fee $ $$ $ Relationship fee $ $$ $ Rewards Rewards On a credit card network, businesses pay interchange fees based on the value of the transactions facilitated by the network On the Respect Network, businesses pay relationship fees based on the value of the relationships facilitated by the network Personal channel Cloud provider Cloud provider
  44. 44. 44 This model has already attracted a rich ecosystem of partners
  45. 45. 45 Next Steps: Bringing Personal Clouds and Business Together
  46. 46. Introducing: Dan Blum, Principal Consultant and Chief Security Architect 46 • Internationally-recognized security and identity expert • 1998-2009: Burton Group – Principal Consultant for large enterprises, leading technology providers – Research Director for Identity and Privacy Strategies (IDPS) – Lead author on initial IDPS Reference Architecture – Consultant for U.S. E-Authentication and Canadian Cyber-Authentication programs (2004-2006) – Research Director for Security and Risk Management Strategies (SRMS) and lead author on SRMS Reference Architecture • 2010-2013: VP & Distinguished Analyst at Gartner – Agenda manager for security reference architecture – Lead analyst for cloud security and other topics – Won Golden Quill Award in 2011 • March 2013: Joined Respect Network to develop consulting practice and create peer cloud security guidance
  47. 47. 47 Understand the Personal Cloud Value Chain Developers Businesses Consumers and businesses receive the relationship value produced by the network (businesses pay for this value) Cloud Service Providers (CSPs) Consumers Relationship As with smartphones, developers build value-added apps for the platform and are paid by buyers of those apps CSPs deliver cloud hosting services and are paid both relationship fee revenue and direct value-added service fees
  48. 48. • Lifetime customer relationship management • Safe, permanent single sign-on • One-click semantic data sharing • Secure cloud-to-cloud messaging • Intelligent notification and event processing • Strong assurance of privacy & respect 48 For Businesses Value proposition: Next steps: • Discover: What business models and opportunities for personal cloud networks make sense in our vertical industry? • Evaluate: What use cases can we enable? What providers could we use? • Plan: How do we make the business case? • Implement: What architecture and implementation strategy gives us the best path to value?
  49. 49. • New revenue stream • New service offerings • Build customer trust • Gain customer insight • Increase customer retention • Improved security/privacy compliance 49 For CSPs Value proposition: Next steps: • Discover: How can we enhance existing services or create new services as a personal cloud provider? • Evaluate: What technologies should we use and which partnerships should we seek? • Plan: What levels of assurance should we support? • Implement: How do we develop security and privacy architectures fit for the purpose?
  50. 50. • Respect Connect: From Social Login to Personal Cloud Login • Trust and Reputation on a Personal Cloud Network • CRM Meets VRM: How a Personal Cloud Network Will Enable Real Vendor Relationship Management • Connecting the Internet of Things to the Internet of People 50
  51. 51. • Purpose – Assess an organization’s opportunities and readiness for personal cloud – Develop a strategy, plan for the future • Assessment factors – Business model and customer issues – Geographical, technological and regulatory profile – Baseline security, privacy and identity postures • Benefits – Discover business opportunities and use cases for personal clouds – Identify gaps and issues – Discover stakeholders in the business, facilitate discussion – Develop vision, strategy, architecture and implementation plans
  52. 52. Gary Rowe, CEO Drummond Reed, Founder Dan Blum, Principal Consultant gary@respectnetwork.com drummond@respectnetwork.com dan@respectnetwork.com

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