Welcome to Connected Industry – Day 1IoT TechExpo Europe, Amsterdam, June 2018

Today’s “Connected Industry” lineup

Managing Director, IoT Analytics –Market Insights for the Internet of Things

My focus: In-depth market research on IoT and Industry 4.0

Chair

Knud Lasse Lueth

Speakers / Moderators / Panelists

Today’s mix of topics: Smart Buildings, AI, Asset Management, Maintenance, Security, Interoperab.

@KnudLueth@AnalyticsIoT

IoT Analytics at a glance

Who we are: IoT boutique, Germany-based

Who we serve: 300+ customers to date…

What we do: Data-driven IoT market insights

Who we reach: 40k+ people in IoT per month

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Latest (free) IoT Insights

Average monthly website visitors (Q4/2016)

Cumulated amount of social media followers (Q4/16)

~40,000

~10,000

Founded: 2014Headquarters: Hamburg, GermanyTeam: 12 analystsKey focus areas: IoT Platforms

Industrial IoTIoT ConnectivitySmart City

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DetailedMarket Reports

ResearchServices

IoT decision-makers subscribed to email market updates (Q4/16)

~6,000

@KnudLueth @AnalyticsIoTTo stay up to date, sign-up to our Newsletter: https://iot-analytics.com/newsletter-sign-up

Recent reports (selection)

Upcoming reports (Q3)

• Industrial IoT / Industry 4.0 Market Report

• Blockchains in Enterprise

• LPWA Market Report 2018-2023

IoT Platforms

Market Report

Connected

Streetlights Report

Starting point: The “Enterprise IoT” project landscape is evolving quicklyAnalysis based on 1,600 real enterprise IoT projects (excl. Consumer IoT)

1Analysis based on 1,600 publicly known enterprise IoT projects (Not including Consumer IoT Projects, e.g. Wearables, Smart Home)2 Trend based on comparison with % of IoT Projects in the 2016 IoT Analytics Enterprise IoT Project List. A downward arrow means the relative share of all projects has declined, not the overall number of projects.Source: IoT Analytics, January 2018

Despite all of these projects, the mountain has not been climbed yet…

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• Many promising projects, but many still in pilot or PoC phase -> Limited large-scale success stories

• Newly developed technologies, still evolving-> Low degree of maturity for some pieces of the tech stack

• General lack of industry-wide standards or architectures-> Significant integration costs and interoperability issues

• Industries’ mindset and organizational structure slowly changing-> Often not yet ready for IoT / data based business models

IoT market maturityToday, we are somewhere HERE

A few issues to solve before the market can take off…

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The 4 big IoT adoption barriers

Missing interoperability

Security issues

Unsolved privacy & data ownership

Limited/unpredictable ROI for use cases

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We believe there will be an inflection point in 2020

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700

600

800

1,000

900

0

200

400

300

100

500

Global IoT Market in $B

20222020 20212017 20242018 2019 2023

37%

692

196

263

493

357

109

34%

39%

978

146

Inflection point

Source: IoT Analytics Research

IoT Platforms• 450+ IoT platforms by June 2017• Horizontal cloud platforms emerging as the early winners• Complete tech stack offering and the ability to scale quickly

currently outweighs domain expertise

Low-Power Wide-Area Networks• LoRa current market leader, Sigfox slowly falling behind• NB-IoT and LTE-M roll-outs set to accelerate LPWAN adoption

Edge Analytics• Intel, Cisco, IBM, HP, Dell aggressively investing in it• Moving towards a hybrid edge+cloud intelligence model

Artificial Intelligence • AI investments at record levels – both in IoT and non-IoT fields• Google at the forefront (e.g. driverless car, chess computer)

5G• 5G getting standardized• Companies already testing 5G capabilities

Some major trends we are currently monitoring in IoT:

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Deep-dive on next pages

IoT Platforms deep-dive (1/5): IoT platforms play a central role in the IoT architecture

Applications

Software backend

Communication

Hardware

Secu

rity

IoT Platforms

Source: IoT Analytics – June 2018

IoT Platforms deep-dive (2/5): There are actually 5 Types of IoT platforms

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Connectivity platform

Device management PaaS

IaaS / cloud backend

Application enablement PaaS

Advanced analytics platform

Connectivity orchestration

Connectivity management

Service provisioning

Billing management

Deployment configuration

Device monitoring

Command & control

OTA firmware updates

Edge application lifecycle

IoT hubs

Scalable storage

Data acquisition & IoT device SDKs

Digital twins

Rules engine & event management

Integrated development environment

Business app integration & visualization

IoT application marketplace

Streaming analytics

AI/Machine learning

Multi-modal database support

Data processing

Platform type

Source: IoT Analytics – June 2018

Elements/components

IoT Platforms deep-dive (3/5): It is difficult for customers to cut through the IoT Platforms marketing noise

1. The larger the word, the more mentions it hasSource: IoT Analytics Research

Vendor Marketing Message

“CPaaS is a complete IoT Platform designed to uniquely address the IoT business challenges (…)”

“From machine manufacturers for machine manufacturers, their suppliers & customers”

“A system of ubiquitous devices connecting the physical world to the cloud”

“One open IoT platform for all domains”

“C3 IoT delivers a complete platform as a service for rapidly developing and operating big data, predictive analytics, AI, and IoT software applications.”

“CENTERSIGHT® NG - NEXT GENERATION IOT PLATFORM“

“The Foundation for Digital Industrial Applications - Connect, Optimize, and Scale your industrial applications on Predix Platform”

“Illuminate Data With an Intelligent IoT Platform – Hitachi’s Lumada IoT platform uses artificial intelligence, advanced analytics and asset virtualization (…)”

“Huawei has built an open and cloud-based IoT platform -- OceanConnect. (…)”

“The Internet of Things becomes the Internet that thinks with Watson IoT”

“Bring your devices to life with the Kaa IoT Platform”

“Azure IoT helps you get started quickly and easily. With the most comprehensive IoT portfolio—spanning solutions, platform services, and industry-leading edge technologies”

“Monetize Your Product Data with IoT Analytics.”

“ThingWorx is the best-in-class Industrial Innovation platform for developing industrial IoT applications and augmented reality (AR) experiences”

“Intelligently connect people, things, and businesses with the IoT”

“EcoStruxure is Schneider Electric’s IoT-enabled, plug-and-play, open, interoperable architecture and platform (…)

“You should choose the Seluxit IoT Platform to reduce your risk, time-to-market and price.”

“MindSphere is an open, cloud-based operating system for the Industrial Internet of Things”

“AirVantage® IoT Platform - Build, deploy and manage complete IoT solutions. No other platform can get your IoT service to market faster.”

“CUMULOCITY IoT by Software AG - Simplicity, agility and rapid proof of value with a packaged IoT Platform that grows with you.”

“We Bring IoT to Life – Telit offers the world’s most comprehensive portfolio of high-performance IoT modules, connectivity services and software “

Word Cloud of all marketing messages1

IoT Platforms deep-dive (4/5): Customers typically test various vendors in real-life setups

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Pre-selection of 10 vendors

2 vendors

• The 10 pre-selected vendors were invited to perform 2-day PoCs in a real production setting. They were tested on usability, interoperability, and other technical factors. They kicked out the vendors who didn’t deliver what they needed - some of them didn’t even deliver what they were promising.

• Further 3 months PoCs with the 2 best vendors

IoT Platform selection process – Automotive OEM in Germany

Smart Factory Platform

• A steering committee (technical profiles and managers)´makes a recommendation based on PoC performance and cost. The head of Plant automation makes the final decision

Source: IoT Analytics – June 2018

IoT Platforms deep-dive (5/5): Platform themes to look out for in the coming years

oMarket consolidation (Some companies already stopped large investments)

o Enhanced focus on edge-to-cloud architectures

oNew success stories using IoT and AI

o Integration of IoT & Blockchain

o Success stories in China

oMore…

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Source: IoT Analytics – June 2018

Key questions we get from people implementing IoT…

oWhat are examples of projects “killing it” in the industry with IoT?

oWhich standards should we work with?

o How should we tackle the “security” topic?

o Should we rather work with a horizontal cloud player or a focused niche IoT Platform?

o How should we think about data governance? Who gets to see the data?

o As a company, how should we structure our organization for the digital age?

o How to price our new “connected product” service?

Today’s goal: Provide answers to some of these questions…