The document discusses opportunities, use cases, challenges and solutions related to the Internet of Things. It finds that IoT adoption is rapidly growing and will include 50 billion smart connected devices by 2020. Trillions in value can be created across industries like manufacturing, retail, healthcare and government through IoT applications that improve asset utilization, customer experience, supply chain efficiency and more. However, challenges include dealing with infrastructure complexity, security threats from increased connectedness, and ensuring solutions are easy to adopt. Next-generation IT approaches are proposed to address these through simplifying infrastructure, building software-based agility, and addressing security holistically.

1. 1
Rafael Maranon
IoT Product Manager, Networking Software
@rafaelmaranon
Internet of Things and WSN Europe
April 1st, 2014

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• Opportunities
• Use Cases
• Challenges
• Solutions
• Conclusions
2

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7.26.8 7.6
Rapid Adoption rate
of digital
infrastructure:
5X faster than
electricity and
telephony
50Billion
“Smart Objects”
50
2010 2015 2020
0
40
30
20
10
Billionsofdevices
25
12.5
Inflection
point
Timeline
Source: Cisco IBSG, 2011

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Industry Segment Type of Savings
Estimated Value Over
15 Years
(Billion nominal USD)
Aviation Commercial 1% fuel savings $30B
Power Gas-fired Generation 1% fuel savings $66B
Healthcare System-wide
1% Reduction in System
Inefficiency
$63B
Rail Freight
1% Reduction in System
Inefficiency
$27B
Oil & Gas
Exploration &
Development
1% Reduction in Capital
Expenditures
$90B
Total $276B
Source: “Industrial Internet: Pushing the Boundaries of Minds and Machines,” GE, November 26, 2012

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Value at Stake (2013 – 2022)
Trillion
Private Sector
Includes both industry-specific and horizontal use
cases
• Customer Experience
• Innovation
• Employee Productivity
• Supply Chain
• Asset Utilization
• Increased Revenue
• Reduced Cost
• Employee Productivity
• Connected Militarized Defense
• Citizen Experience
Public Sector
Includes cities, agencies, and verticals such as
healthcare, education, defense
Estimate is based on bottom-up analysis of 61 use cases, including 21 for private sector and 40 in public sector

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• SG&A and CoGS reduction from improved business
process execution
• Improved capital efficiency
• Improved labor efficiency
• Fewer or more productive man-hours
• Improved customer lifetime value
• Additional market share (more customers)
• Improved R&D, speed, reduced TTM
• New business models and new sources of revenue
• Improved process efficiency
• Reduced waste in supply chain
Source: Cisco IBSG, 2013
IoE Private
Sector Value
at Stake
$14.4T
(2013-2022
10-year NPV)*
* Net present value
Asset utilization:
$2.5T
Improved customer
experience: $3.7T
Supply-chain / logistics
efficiency: $2.7T
Innovation: $3.0T
Employee productivity:
$2.5T

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Source: Cisco IBSG, 2013
Sample
Size
=
807
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000
Degree of impact
(Value at Stake /
industry size)
Industry size (value added $B)
Manufacturing
(27%)
Information
services (9%)
Retail trade
(11%)
Administration
Finance and insurance (9%)
Healthcare
Education
Professional services
Wholesale
Company
management
Spheres sized by
amount of Value at Stake

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Machine-to-MachineMachine-to-PeoplePeople-to-People
New Connections What They Mean for Retailers
• Shelf sensors
• Parking-space sensors
• IR motion sensors
• Weight mats
• Environmental (light, temperature) sensors
• Door sensors
• Mobile payment
• Digital signage
• Connected shopping carts
• Video cameras and analytics
• Wi-Fi badges
• Gesture recognition
• Point-of-sale
• Kiosks
• Shopper mobile devices
• Store associate mobile devices
• Immersive video
• Social media
• Contact center
• E-commerce site
Flexible
Payment Options
Automated
Ordering Process
Inventory
Visibility
Energy
Optimization
Personal-SoLoMo
Content
Understanding of
Shopper Behavior
Endless Aisle
Omnichannel
Collaborative Product
Development
On-Demand
Expert Advice
On-Demand
Training

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Machine-to-MachineMachine-to-PeoplePeople-to-People
New Connections What They Mean for Manufacturers
• Converged IP plant network
• Wireless sensors (vibration, temperature)
• Wireless I/O machines
• Wireless process operation controls
• Energy usage analytics
• Supply chain analytics
• Video cameras and analytics
• Network security analytics
• Hardened mobile video devices
• Active collaboration rooms
• Connected factory video
• Contact center
• B2B e-commerce site Remote Expertise
Flexible
Production
Real-Time Supply
Chain
Operations
Analytics
Collaborative Product
Development
IT and Physical
Security
Predictive
Maintenance
Mobile Collaboration
on Factory Floor
Remote Asset
Monitoring

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Machine-to-MachineMachine-to-PeoplePeople-to-People
New Connections What They Mean for Governments
• Smart buildings
• Smart lighting
• Smart payments
• Intelligent public transit
• Smart grid
• Video surveillance
• Smart parking
• Disaster response
• In-patient monitoring
• Telework
• BYOD
• Connected learning
• Travel avoidance
Increased Revenue and
Compliance
Employee
Productivity
Enhanced
Security
Improved Asset
Use
Energy
Optimization
Citizen and Employee
Experience
New Revenue
Streams
Lower Costs

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Creating the agility to gain insights and use
intelligence to improve predictions
Dealing with infrastructure complexity
Proactively dealing with security threats as
connectedness increases

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Mobile Cloud New Class
of Apps
Big Data and
Analytics
IoT
Internet of Everything
AgileHyper-Aware Predictive
Infrastructure
Simplification
Holistic
Security
Build Software-Based
Agility Functions
Easy To
Adopt

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Achievable by…1 Simplify the Infrastructure
Next-Generation IT
Programmability
Opening
Up Your Infrastructure
Orchestration
Automating and
Orchestrating Across All
Infrastructure
Virtualization
Crossing Enterprise,
Cloud, and Service
Providers’ Boundaries

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Achievable by…2 Build Software-Based Agility Functions
Next-Generation IT
Application
Centricity
Enabling Application-
Centric Infrastructure
Analytics
Optimizing Infrastructure
and Extracting Unique
Insights

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Achievable by…3 Address Security Holistically
Next-Generation IT
Automation
Dynamically Defend and
Remedy Threats
Visibility
Increase Visibility Across
Infrastructure and Users

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ADAPTIVE
SECURITY
PREDICTIVE
PERFORMANCE
ANALYSIS
ANOMALY
DETECTION
LEARNING INFRASTRUCTURESIoT ENVIRONMENT
PARAMETERS
DATA
OPTIMAL
PERFORMANCE
OBSERVEDHIDDEN
SENSORS, CAMERAS, CARS, WEARABLE
SENSORS, TRAFFIC LIGHTS,
COMPUTERS, SMART METERS
MODEL
LEARN
ADJUST

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IP Connectivity
…..
PLC 220 MHz Wi-Hart 800 Mhz
Train Control Street Parking
Environmental
Monitoring
Electric
Metering
Domain Specific
Applications
Domain Specific
And/or Proprietary
Devices and Protocols

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IPv6/IPv4
UDP/TCP
IEEE 802.15.4e MAC enhancements
IPv6 RPL
Web Services, EXI, SOAP,
RestFul,HTTPS/CoAP
• Open Standards – at all levels to ensure interoperability and reduce technology risk
• Future proofing – common application layer services over various wired/wireless communication technologies
802.1x / EAP-TLS & IEEE 802.11i based Access Control
Physical
Layer
IEEE 802.15.4
2.4GHz, 915, 868MHz
DSSS, FSK, OFDM
IEEE 1901.2
NB-PLC
OFDM
IEEE 802.11
Wi-Fi
2.4, 5 GHz, Sub-GHz
IEEE 802.3
Ethernet
UTP, FO
2G, 3G, LTE
Cellular
IEEE 802.16
WiMAX
1.x, 3.xGHz
Data
Link
Layer
IEEE 802.15.4
including FHSS
IEEE 1901.2
802.15.4 frame
format
IEEE 802.11
Wi-Fi
IEEE 802.3
Ethernet
2G, 3G, LTE
Cellular
IEEE 802.16
WiMAX
6LoWPAN (RFC 6282) IPv6 over Ethernet (RFC 2464)
IPv6 over PPP
(RFC 5072)
IP or Ethernet
Convergence SubL.
Network
Layer
Transport
Layer
Application
Layer
Addressing, Routing, Multicast, QoS,
Security
Security (DTLS/TLS)
DNS, NTP, IPfix/Netflow, SSH
RADIUS, AAA, LDAP, SNMP,…
(RFC 6272 IP in Smart Grid)
Metering
IEC 61968 CIM, ANSI C12.22,
DLMS/COSEM,…
SCADA
IEC 61850, 60870
DNP3/IP, Modbus/TCP,…
LLC
M
A
C
Mgmt

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Traditional Computing Model
(Terminal/Mainframe, Client-Server, Web)
Assumes Infinite,
Bandwidth, 0 Delay
Data Center/
Cloud
Endpoint
IoT Computing Model
Data Center/
Cloud
Device
Fog
Assumes Limited Bandwidth,
Variable Delay, and Intermittent
Connectivity
Latency
Resiliency
Security
Data Grows Faster
Than Bandwidth
Legacy Systems
Integration
Fog is the distributed platform
where the Internet meets the
physical world

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City Infrastructure
Synchronize Signals for
Emergency Vehicles
Improve Congestion
Management
… and Can Save Lives

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What Is The Platform I Should Build?
What Types of IoT Partners Can Help?
What Infrastructure Do I Need to Build?
What Are My Killer Apps?
But don’t forget…

26. Imagine what is possible!

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Thank you.
@rafaelmaranon