State of the IoT Ecosystem

Telit IoT Innovation– Feb 2017C. Bret Martin

Sr. Director Business Development

Global IoT Client Executive

February 2017

1

Innovation over time . . . .

300 B.C. est.

earliest Roman

Carriage

“Mersaidas Benzicus”

1896

Horse-less

Carriage

1908

Ford

Model T

0

10

20

30

40

50

1880 1900 1920 1940 1960 1980 2000

Electricity (46 yrs)

1873

Telephone (35 yrs)

1876

Radio (31 yrs)

1897Television (26 yrs)

1926

PC (16 yrs)

1975

Mobile (13 yrs)

1983

Web (7 yrs)

1991

Faster

technology

adoptionYears until

used by 25% of

U.S. population

Ye

ars

Source: Economist 2014

Electronic Communication innovation over time . . . .

3

Compounding of Innovation

300 B.C. est.

earliest Roman

Carriage

“Mersaidas Benzicus”

2016

Autonomous

Vehicles

1896

Horse-less

Carriage

1908

Ford

Model T

1975

PC

1983

Cell

Phone

1991

WWW

By 2020, the Intelligence of Things™

will bring 50 billion connected devices to

market, creating $7.1T in TAM.(versus an estimated 10 billion connected devices today)

Cisco 2013 & IDC 2014

5

Where are we in IoT?

6

Services Suitable for Traditional IoT Cloud Deployments

SNS = social networking service

Note: Taken from a January 2014 press release from NTT about edge computing

small (long delay) large (small delay)Real-time requirement

Volume / frequency of

data transmission to

the server

Cloud computing

Internet searchWeb service

Mail

SNS

Storage

7

Explosion of IoT Devices Creates New Network Tier –

Edge Computing emerges

AR = augmented reality; ITS = intelligent transport systems; SNS = social networking service

Note: Taken from a January 2014 press release from NTT about edge computing

small (long delay) large (small delay)Real-time requirement

Volume / frequency of

data transmission to

the server

Cloud computing

Internet searchWeb service

Mail

SNS

Storage

Edge computing

Smart CityMedical

M2M

Game

Speech/image recognition

ITS Machine

control

AR

Smart house/building

8

Industry Example: Healthcare Spending

$765 Billiondollars spent on health care did nothing to make anyone healthier.

Unnecessary Services

$210 billion

Inefficiently Delivered Services

$130 Billion

Prices That Are Too High

$105 Billion

Excess Administrative

Costs

$190 Billion

Fraud

$75 Billion

Missed Prevention

Opportunities

$55 Billion

Preventive Self

Management

Outpatient Care Hospital Follow Up

Less than

50%of elderly

patients are up

to date on

clinical

preventative

services

Elderly patients

with co-

morbidities

require up to

19

medication

doses daily

Every year the average

elderly patient sees

7 doctors across

4 practices

Specialists

Primary

Care

Average surgery patient

is seen by

27 different health

care providers

Nurses

Allied

Health

Doctors

Less than half of non-

surgical patients follow-upwith their primary care provider

after discharge

1 out of 5 elderly patients are

readmitted within 30 days

9

Healthcare beyond the Doctor – Can IoT play a role?

“Rise of Analytics will enable

80% of the tasks that doctors do

now – such as monitoring blood

pressure, glucose, genomics,

proteomics, and skins

temperature to be automated”

Vinod Khosla, Venture Capitalist

IoT

Integration

Edge Analytics

Clinical

Decision

Support

Better

Outcomes

Real Time

Sensing

Real Time

Streaming

Analytics

Continuous

Learning

Rich Data

Sources

Preventative

Analytics

Automation

Source: https://www.advisory.com/daily-briefing/2014/11/12/google-flu-trends-shows-promise-peril-of-big-data

Remote

Patient

Monitoring

10

Edge Computing Model Driven by rise of IOT devices

Cloud

Edge Computing Devices

Gateway

Industrial PC

Micro Data Center

11

Top Industries to Deploy Edge Computing

Healthcare Transportation Utilities Energy

Smart Cities Agriculture Manufacturing Retail

12

CAPEX Spend on Edge Computing

2017 2018 2019 2020 2021

Total CAPEX Total OPEX

$8 Billion

$7 Billion

$6 Billion

$5 Billion

$4 Billion

$3 Billion

$2 Billion

$1 Billion

Cumulative CAPEX + OPEX Spend

13

Expertise across the

physical and digital

lifecycles

Strategy and consultation

Design

conceptualizationCradle to grave

product management

Detailed product

design

Connecting the

product

to the cloud

Interoperability

servicesSupply chain management:

Manufacturing, Distribution

and Refurbishment

Product

scale

Device analytics

App conceptualization

& user personas

App wireframes

& UX design

Cloud provisioning

& device

enrollment

App certification &

app store setup

IoT platform scalability

& security

User insights

14

Flex IoT Edge Computing Device

Dimensions:22 mm x 128.75 mm x 66 mm

15

Flex Connect – Cloud Architecture

CI-Core Cloud SDK Framework

& Application

Libraries

CI-Apps & SDK

Framework for iOS

& AndroidCertification, Security, Authentication & CI-Engines

CI-Application

Libraries

CI-Lense &

CI-Analytics

CI-Connections & SDK Framework

CI-Commerce

Device w/

Embedded Agent

CI-Portals & SDK

Framework for

Device Management

16

Flex Connect – Aware Home

5,000 sq.ft. 4-story house on Georgia Tech’s campus,

administered by Flex

150+ Smart Home Devices Installed and Monitored for

Network Performance and Device Analytics

Data Collected and Analyzed with Flex Cloud

Management Service

Flex Connected Living Product Interoperability Testing

Flex Gateway ↔ Flex Nodes

Flex Gateway ↔ OEM Nodes

OEM Gateway ↔ Flex Nodes

Laboratories

17

Flex & Georgia Tech – Aware Home

18

Flex Connect – Sample Product Portfolio

Flow Monitor

Smart LightingGateway

Multi-sensor

Sub-GHzMulti-Radio Gateway

Smart Video Gateway

Appliance Gateway

ZigBee Gateway

Security GatewaySmart Thermostat

Smart Wall Gateway

Smart Video StreamingSmart Button

Door / WindowSensor

ZigBeeDongle

Multi-Radio GatewayMini

Low-CostGateway

19

Simplified IoT Ecosystem – Frost & Sullivan

Flex is your single partner,

from device to decision

Execute cohesively at every phase

Ensure you can scale to meet

market demand

Provide insight, efficiencies and

expertise to support your competitive

advantage

20

Above all, a single partner allows

you to focus on your core value.

Flex is committed to being your go-to-

market partner by helping you create

and deliver smarter, more connected

products that enrich the lives of your

customers.

Our end-to-end IoT solution can help

successfully launch IoT solutions