welcome to the internet of things

Welcome to the Internet of Things, by the way privacy is dead…

Agenda

• What is the Internet of Things (IoT)

• Business models & potential market size

• Drivers for IoT

• Security and Privacy

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Objects are becoming embedded with sensors and gaining the ability to operate & communicate independent of human intervention.

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The resulting information networks promise to create new business models and disrupt existing business models.

Characteristics

Distributed

Peer to peer

API based

Network neutral Feb 2015 © Kate Carruthers | katecarruthers.com 5

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Connected devices are transformed from a single purchase product into a service that generates recurring income.

IoT value is not in the devices, but in new services related to

the devices.

New business models

• Open models

• Collaboration & loose confederations

• Agile, change ready organisations

• Restructured supply chain

• Mergers & acquisitions

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Ubiquitous connectivity

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Cisco says US$14 trillion IoE value

1) asset utilization (reduced costs) of $2.5 trillion

2) employee productivity (greater labor efficiencies) of $2.5 trillion

3) supply chain and logistics (eliminating waste) of $2.7 trillion

4) customer experience (addition of more customers) of $3.7 trillion

5) innovation (reducing time to market) of $3.0 trillion

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CISCO White paper: Embracing the Internet of Everything for your Share of $14 trillion

Market signals - 2014

• Google bought Nest for US$3.2B Jan 2014

• Google & Nest bought Dropcam for US$555M

• Samsung bought SmartThings for US$200M

• Vodafone bought Cobra Automotive for £115M

• Zebra Technologies bought a unit of Motorola for US$3.45B

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Market signals - 2014

• global survey of 1400 software developers

• 17.1% working on IoT apps

• 23% expect to begin work in next 6 months

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Evans Data Corporation Survey July 2014

Driven by convergence

• Ubiquitous comms networks

• Mobile connectivity

• 3D printing

• Sensor networks

• Big data > drawing useful inferences

• Peer to peer networks

• Cloud computing

• Artificial intelligence

• Commodity sensors

• Software defined networks

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Fuelled by app ecosystem

“Between 2008 and 2017, Google Play and Apple’s App Store will be responsible for a mind-blowing number of mobile app downloads: 350 billion.” Feb 2015 © Kate Carruthers | katecarruthers.com 13

Source: http://www.mobilemarketingwatch.com/the-decade-of-350-billion-app-downloads-26932/

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Allflex DNA tags

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Industries

Financial services

Automotive

Technology

Entertainment

Retail

Healthcare

Hospitality

Industrial

Power & utilities

Energy & mining

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Driverless trucks the next big thing in WA's Pilbara, ABC 25 Apr 2014, 3:13pm

Source: http://readwrite.com/2014/04/30/connected-home-hackers-stop-yelling-at-babies-foscam#feed=/tag/internet-of-things&awesm=~oEe6yipkTkz40o

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Last August, a hacker infiltrated a wireless camera owned by the Gilbert family, living in Houston, Texas. The stranger took control of the unit and used it to scream obscenities at a two-year-old toddler. Fortunately, the hearing-impaired child didn’t have her cochlear implant turned on at the time, otherwise she would have heard the stranger yelling, “Wake up Allyson, you little slut!”

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Bloomberg, Data Breaches in the US, at 4 Sep 2014

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• 3rd party HVAC firm attack vector

• Security software disabled

• PCI DSS didn’t save them

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Bloomberg, Oct 2014

JP Morgan

• Sarbanes-Oxley Act (SOX)

• Payment Card Industry Data Security Standard (PCI DSS)

• Gramm-Leach-Bliley Act (GLB) Act

• Electronic Fund Transfer Act, Regulation E (EFTA)

• Free and Secure Trade Program (FAST)

• Fair and Accurate Credit Transaction Act (FACTA), including Red Flags Rule

• Federal Rules of Civil Procedure (FRCP)

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Traditional approach to perimeter security

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Bot-herders can launch DDoS attacks from dryers, refrigerators, other Internet of Things devices

Network World Sep 2014

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“The global attack campaign involved more than 750,000 malicious email communications coming from more than 100,000 everyday consumer gadgets …”

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“… such as home-networking routers, connected multi-media centers, televisions and at least one refrigerator”

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It’s “often impossible to patch the software or upgrade the components to the latest version.”

Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014

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“Often, the complete source code isn’t available. Yes, they’ll have the source code to Linux and any other open-source components.”

Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014

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“But many of the device drivers and other components are just ‘binary blobs’ - no source code at all.”

Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014

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“That’s the most pernicious part of the problem: No one can possibly patch code that’s just binary.”

Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014

Privacy

“If it was dead, they wouldn't be fighting so hard to kill it, all over the world.”

- Peter Watts

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http://www.abc.net.au/news/2014-11-04/berg-the-jig-is-up-on-data-retention-plans/5864432

http://www.theguardian.com/uk-news/2015/jan/22/snoopers-charter-changed-version-pass-before-election

Privacy

Privacy by Design:

embedding privacy into IT, business practices and networked infrastructures right from the outset

https://www.privacybydesign.ca

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Consumer privacy

• Pervasive computing

• Personalisation

• Customisation

• Convenience

• Lack of understanding

• Meaningful consent

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Oops we spied on your wifi

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http://www.cnet.com/news/google-oops-we-spied-on-your-wi-fi/

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Time, Sep 2014

Spy TVs…

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http://www.tomsguide.com/us/lg-tvs-spying-confirmation,news-17887.html

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“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”- Amara's law

Kate Carruthers

UNSW Australia

Sydney

katec@unsw.edu.au

Twitter @kcarruthers

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