iot techvision seminar summary (2014)

About Internet of Things(2014 IoT Techvision Seminar summary)

Brian (Yoohyun) KimProduct Marketing manager at CDNetworksJuly 2014

Contents • What is IoT (Internet of Things)?

• Market Dynamic

• Device Oriented IoT

• Service Oriented IoT

• Who will be the winner?

• Appendix

What is the IoT? – Definition of IoT

• The Internet of Things (IoT) is a scenario in which objects, animals or people are provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT has evolved from the convergence of wireless technologies, micro-electromechanical systems (MEMS) and the Internet.

*Source: Ericsson, The Social Web of Thingshttp://www.youtube.com/watch?v=i5AuzQXBsG4http://www.youtube.com/watch?v=z1Iq7nGRmiI

*Please refer to the definition on Wikipedia: http://en.wikipedia.org/wiki/Internet_of_Things

http://www.youtube.com/watch?v=i5AuzQXBsG4

http://www.youtube.com/watch?v=z1Iq7nGRmiI

http://en.wikipedia.org/wiki/Internet_of_Things

What is the IoT? – IoT Times

• Various objects such as appliance, car, glass, watch and even infrastructure of city will have intelligence and be connected to internet.

Direction of IoT EvolutionKey factors for IoT proliferation

Ultra low power & Micro-size of electronic components

(Sensors, APs, etc.)

Cloud Platform(Big Data, Artificial intelligence,

etc.)

Enhanced network performance(LTE, WiFi, etc.)

Connecting of electronic devices

Connecting of non- electronic devices

Expansion of Internet

connectivity

Enhancement of intelligence

Learning, Automatic controlling

Sensing, Remote

controlling

• Smartphone, Tablet• Smart TV, Appliance• Smart Car• CCTV / Security appliance• Smart meter

• Wearable device (Smart watch, glass, etc.)

• Healthcare• Light / Furniture

• Smart home• Smart building• Smart city

• Driverless car• Service robot• Drone

Market Dynamic – Market and Traffic size forecast

• IoT product and service suppliers will generate incremental revenue exceeding 300B USD, mostly in services, in 2020. It will result in 1.9T USD in global economic value-add through sales into diverse end markets.

• Gartner says the internet of things installed base will grow to 26 billion units by 2020. This is an almost 30-fold increase from 0.9 billion in 2009.

Explosion of IoT devices

• Growth from 0.9B in 2009

• To 26B in 2020

Service expansion

• Healthcare, Education, Logistics,

Finance, Energy, etc.

Creating big IoT market

(Comprehensive market including device and service products)

• 1.9 trillion USD in 2020 (Gartner)

• 4.5 trillion USD in 2020 (GSMA)

• 2.7-6.2 trillion USD in 2025 (McKinney)

• 10-15 trillion USD in 2030 (GE)

* Source: IoT Times, LGERI, 2014

IoT Market Forecast

* Source: Gartner, http://www.gartner.com/newsroom/id/2636073

* Source: Forecast - The internet of things, Worldwide, 2013, Gartner

(unit: T USD, %)

2014 2015 2016 2017 2018 2019 2020

Economic value-added 0.4 0.5 0.6 0.8 1.0 1.4 1.9

Growth rate 25% 26% 27% 29% 31% 34% 39%

http://www.gartner.com/newsroom/id/2636073

Market Dynamic – Market and Traffic size forecast

• Global M2M mobile data traffic will increase nearly 43-fold between 2013 and 2018. M2M mobile data traffic will grow at a compound annual growth rate (CAGR) of 113%, reaching 0.9 exabytes per month by 2018.

• Globally, there were nearly 22 million wearable devices (a sub-segment of M2M category) in 2013 generating 1.7 petabytes of monthly traffic.

* Source: Cisco VNI index: Global Mobile Data traffic forecast update, 2013-2018, February, 2014

Global M2M mobile data traffic, 2013-2018

113% CAGR 2013-2018

Global Wearable Devices & Monthly Traffic

Market Dynamic – What are the players doing now?

• Many companies are in competition and collaboration to lead IoT business ECO system.

Network & Communication

Network infrastructure (equipment, network line, etc.)

Device & Component

Appliances and Semiconductor

Manufacturing

Plant, Factory/Building automation and Smart Car

SW & Internet

IoT platform based on current internet platform

Competition &

Collaboration

Device Oriented IoT – One Device Multi Service

• Kinsas smart thermometer : https://www.kinsahealth.com/

• Parrot Flower Power plant sensor : http://www.parrot.com/flowerpower/us

• HAPI fork : http://www.hapi.com/products-hapifork.asp• Nest Fire Alarm :https://nest.com/smoke-co-alarm/life-with-nest-protect/

• Business model of Device-oriented IoT market is providing various services from a high-intelligence device like Smartphone.

https://www.kinsahealth.com/

http://www.parrot.com/flowerpower/us

http://www.hapi.com/products-hapifork.asp

https://nest.com/smoke-co-alarm/life-with-nest-protect/

Device Oriented IoT – Bottlenecks

• There are some bottlenecks that need to be solved for IoT device proliferation now.

Security (Risk for the hacking of personal private information)1

• Risk for the hacking of Home connected devices(e.g. WeMo baby monitor hacked)http://arstechnica.com/security/2013/10/hack-turns-belkin-baby-monitor-into-iphone-controlled-bugging-device/

3

• Fashion vs Notification!(Can Google now be a killer application for Smart watch? People usually wear

a watch for fashion, not for feature! )

User Behavior

Bang for the buck (Value for the money spent)2

• Still expensive to buy, but the value is...(e.g. Parrot Flower Power – On Sale at $59.99, but the plant itself is under $10)

http://arstechnica.com/security/2013/10/hack-turns-belkin-baby-monitor-into-iphone-controlled-bugging-device/

Service Oriented IoT – One Service Multi Devices

• Expected to see in Service Oriented IoT business, providing one services from various IoT devices.

• Fast growing of sensor information (Optimized personal life-log)

“Quantified-self” – Things will understand more about me.(e.g.) Smart connected home – GPS, Thermal/Humidity sensor, CCTV, etc.

Content

Platform

Network

Device

• Real-time big data processing Cloud platform generate value from information gathered by IoT devices

(e.g.) Real-time weather forecast

• Network as a component (Like MVNO of mobile network)

IoT service provider (whoever it is – McDonalds, Coca-Cola) rent a network from network provider and customers to contract with IoT service provider

• Divergence and Long-tail (but still will exist high-intelligence devices as well)

Various simple-feature IoT devices will support one specific service.(e.g.) Smart education service for tablet, electronic board, smart pen...

Service Oriented IoT – One Service Multi Devices

• In Service-oriented IoT, customer-value centric service will be develop first and the various devices will be combined to service.

PC industry

Smartphone industry

IoT industry

Service first! Device following!

Who will be the winner?

• No one know who will be the winner in IoT industry. However, many IoT service providers will appear and lead the market.

• Especially the company which have strong customer base in specific space and have power to exert influence to C-P-N-D value chain will become dominant player.

We are not sure who is the dominant player in IoT market,but clearly it is the fact the internet traffic will explode in IoT world.

So we should

Keep monitoring IoT market and player dynamicISPs, Network equipment vendor, Chipset/Device vendor, Service /Content provider

1

Research how to utilize this as a growth leverage2

Thank you

Appendix 1. IoT infrastructure

• IoT infrastructure has an architecture that the Cloud Backend platform can support to devices (‘Things’) and various applications.

Appendix 2. Heavy vs Light connection

• Various objects will be connected to internet including smart devices and internet traffic will be exploded. (small traffic but huge number of devices!)

Light connection (Real IoT environment)

• Low computing Performance• None or Small screen• Narrow Bandwidth

• Long life-cycle• Ultra low price

Heavy connection (Multimedia content)

• High Computing performance• Big Screen• Wide Bandwidth

• Short life-cycle• Low sensitivity for the price (Relatively high price)

Appendix 3. Top 10 Strategic Technologies

* Source: Gartner’s Top 10 Strategic Technology Trends for 2011, 2012, 2013 and 2014

2011 2012 2013 2014

1 Cloud Computing Media Tablets and beyond Mobile Device Battles Mobile Device Diversity and Management

2 Mobile Applications and Media Tablets

Mobile-centric Applications and interfaces

Mobile Applications & HTML5 Mobile Apps and Applications

3 Social Communications and Collaboration

Social and Contextual User Interface

Personal Cloud The Internet of Things

4 Video Internet of Things Internet of Things Hybrid Cloud and IT as ServiceBroker

5 Next Generation Analytics Application Stores and Marketplace

Hybrid IT and Cloud Computing

Cloud / Client

6 Social Analytics Next Generation Analytics Strategic Big Data The Era of Personal Cloud

7 Context-aware computing Big Data Actionable Analytics Software Defined Anything

8 Storage Class Memory In Memory Computing Mainstream In Memory Computing

Web Scale IT

9 Ubiquitous Computing Extremely Low Energy Servers Integrated Ecosystems Smart Machines

10 Fabric based Infrastructure and Computers

Cloud Computing Enterprise App Stores 3D Printing

Appendix 4. Hype Cycle of Emerging Technologies

* Source: Gartner’s 2013 Hype Cycle of Emerging technologies maps, August, 2013

Brian (Yoohyun) KimSenior Manager| Product Management Team

[email protected]

mailto:[email protected]