IOT Platform as a Service
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Jesus Rodriguez introduces an IoT platform as a service (PaaS) to address challenges facing enterprises implementing IoT solutions at scale. The presentation outlines the massive market opportunity of IoT but also connectivity, integration, security, scalability, and other challenges. The proposed IoT PaaS model includes components for protocol brokering, event processing, storage, simulation, rules engines, real-time analytics, and security to provide a common infrastructure for building industrial IoT solutions more simply and agilely. The benefits of the IoT PaaS are that it enables uniform communication, security, analytics and management layers across heterogeneous IoT topologies.
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IOT Platform as a Service
- 1. Powering the Industrial Enterprise Introducing the IoT Platform as a Service By Jesus Rodriguez
- 2. About Me… • Hackerpreneur • Founder KidoZen • Advisor to software companies (Microsoft, Oracle….) • Board member and investor • Speaker and author o http://jrodthoughts.com o http://weblogs.asp.net/gsusx o https://twitter.com/jrdothoughts
- 3. Agenda • IoT Market Opportunity •IoT Enterprise Challenges • IoT Platform-as-a-Service •IoT PaaS Benefits
- 4. IoT is destined to power the modern enterprise
- 5. Source: Disruptive Technologies,McKinsey Global Institute, May 2013 Connections Driven Growth • Today: 9 billion Internet-connected devices •Within next decade: 50 billion to 1 trillion connected devices •IoT economic impact: $2.7 to $6.2 trillion annually by 2025
- 6. Connected Devices by Category • “There will be 212 billion devices or things connected to networks by 2020.” –IDC • “We expect the number of connected objects to reach 50 billion by 2020 (2.7% of things in the world).” – Cisco 3
- 7. IoT Market Opportunity: 20.6%CAGR Industry RevenueOpportunity ($B) Market Opportunity by Sector Industry RevenueOpportunity ($M) 5 -Year IoT RevenueOpportunity Market Opportunity by Sector Source: IDC Not only is the market growing, but the forecast of market size is growing
- 9. IoTContributions by Industry Banking Healthcare Automotive Retail Transport E&U Monetize Cash replacement solutions Mobile Banking Paid home care family services Pay-per-drive car rental Cash replacement Sensor enabled Loyalty cards Paid Alerts to travellers Congestion charging Pay-per-use energy Optimize Optimized Cash management ER Bed Resource Mgmt Component predictive replacement Fleet mgmt Delivery and stock replenishment optimization Store layout optimization Smart Cities Traffic mgmt Airport Management Delay non- essential supply during peak loads Extend Banking the un- banked Biometrics Smarter Subsidies Life style monitoring In-car Movies, Music, Games Highly Automated Driving Smart Vending Machines Delivery Lockers Mobility Services Smart home services Control Remote ATM Management Dynamic Authorization Remote Hospital environment Mgmt Remote Drive-train optimization Store energy mgmt Store parking mgmt Dynamic price labels Crowd mgmt Timetable mgmt Asset mgmt Remotely control consumer devices
- 10. 7 4.5 Million Developers will Drive IoTAdoption “Just like in mobile, the value will come from an army of IoT entrepreneurs addressing thousands of user needs.” ―VisionMobile
- 11. IoT BusinessValue Identification The market is developing in a recognizable pattern • The Makers ofThings are watching their things perform in the field under real customer use o Objective: improve product quality and retain customer loyalty • The Users ofThings need to integrate newly available information to deliver business results o Objective: reduce cost of operations and increase business growth The business case for IoT technologies • Makers and Users demand immediate operational improvement and follow- on effective use of refined data to increase profitability • Bottom line for the IoT business case is “what gets measured gets managed”
- 12. Source: “IT Key Metrics Data 2014”,GartnerConsulting Group, 2014 IT Spending by Industry 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% Software Publishing and Internet Services Banking & Financial Services Media & Entertainment Education Professional Services Telecommunications Cross Industry Average Life Sciences, Pharma, Medical Products Insurance Utilities Transportation Industrial Electronic & Equipment Consumer Products Industrial Manufacturing Retail/Wholesale Food & Beverage Processing Chemicals Energy Construction Materials and Resources O=71% C=29% IT spending as a percent of revenue:
- 13. Cross Industry IoT Opportunity Survey of respondents cite data security concerns as the number one barrier. Actively Pursuing NotConsidering Adoption Drivers and Barriers 61% of organizations are actively pursuing IoT initiatives. 6.8% of the average IT budgets is being allocated to IoT initiatives... Top IoT Drivers 1. LowerOperationalCosts 2. Better customer service and support 3. Customer acquisition/retention 4. Business process efficiency 5. Product/service improvement and innovation Budgets Source: Global Technologyand IndustryResearch Organization, 2014 InformationSecurity 34% N=3568 (Weighted) Consideration s Common goals of reducing costs couple with downstream use of data for business growth purposes GBP Revenue is an example Cross Industry Avg. IoT GBP Rev 500,000,000 IT Budget % 3.2% 6.8% IT Budget GBP 16,000,000 Capital Budget 4,640,000 Est. IoT Allocation 1,088,000
- 14. IoT Opportunity: Retail Adoption 60% of respondents are actively pursuing IoT initiatives. of respondents cite funding the initial investments at the scale needed as the number one barrier. 10.5% of the average IT budgets is being allocated to IoT initiatives... Actively Pursuing NotConsidering 40% Drivers and Barriers Budgets Source: Global Technology and Industry Research Organization, 2014 Top IoT Drivers 1. Better customer service and support 2. Lower operational costs 3. Customer acquisition and/or retention 4. Product and/or service improvement and innovation 5. Business process efficiency/operations optimization and control N=203 (Weighted) Consideration s Thinning margins while competing with Internet competitors Customer targeted marketing Improve turnover Rev Source: Wikipedia,2014 Morrisons Retail USD Rev 28,276,000,000 IoT Allocation GBP Rev 18,127,743,600 IT Budget % 1.5% 10.5% IT Budget GBP 271,916,154 Capital Budget 78,855,685 Est. IoT Allocation 28,551,196
- 15. IoT Opportunity: Utilities Adoption 71% of respondents are actively pursuing IoT initiatives. 49% of respondents cite developing a sustainable business model/ proving ROI as the number one barrier. 12 6.6% of the average IT budgets is being allocated to IoT initiatives... Actively Pursuing NotConsidering N=84 (Weighted) Drivers and Barriers Budgets Source: Global Technology and Industry Research Organization, 2014 Top IoT Drivers 1. Better customer service and support 2. Lower operational costs 3. Business process efficiency/operations optimization and control 4. Product and/or service improvement and innovation 5. InformationTechnology optimization and/or modernization Consideration s Lower data acquisition costs Automate contingent operations Integration of consumer technologies Rev Source: Wikipedia,2014 National Grid Utilities GBP Rev 14,147,153,700 IoT Allocation IT Budget % 2.8% 6.6% IT Budget 396,120,304 Capital Budget 114,874,888 Est. IoT Allocation 26,143,940
- 16. IoT Opportunity: Insurance Adoption of respondents cite developing a sustainable business model/ proving ROI as the number one barrier. 13 63% of respondents are actively pursuing IoT initiatives. 6.4% of the average IT budgets is being allocated to IoT initiatives... Actively Pursuing NotConsidering Top IoT Drivers 1. Better customer service and support 2. Customeracquisition and/or retention 3. Lower operational costs 4. Product and/or service improvement and innovation 5. Competitive differentiation 29% Drivers and Barriers Budgets Source: Global Technology and Industry Research Organization, 2014 N=176 (Weighted) Consideration s Significant budget invested to reduce risk through more accurate predictions Linkage of premiums to claims payment (improve the loss ratio) Rev Source: Wikipedia,2014 Prudential Insurance/FS GBP Rev 37,521,659,700 IoT allocation IT Budget % 3.2% 6.4% IT Budget 1,200,693,110 Capital Budget 348,201,002 Est IoT Allocation 76,844,359
- 17. IoT Opportunity: Oil and Gas Adoption of respondents cite data security concerns as the number one barrier. 14 56% of respondents are actively pursuing IoT initiatives. 7.4% of the average IT budgets is being allocated to IoT initiatives... Actively Pursuing NotConsidering 37% Drivers and Barriers Budgets Source: Global Technology and Industry Research Organization, 2014 Top IoT Drivers 1. Lower operational costs 2. Better customer service and support 3. Business process efficiency/operations optimization and control 4. Competitive differentiation 5. Information Technology optimization and/or modernization N=121 (Weighted) Consideration s Production,transportation and distributionis a sensor rich environment InformationSecurity Rev Source: Wikipedia,2014 BP Oil & Gas GBP Rev 247,761,429,300 IT Budget % 1.1% 7.4% IT Budget GBP 2,725,375,722 Capital Budget 790,358,959 Est. IoT Allocation 201,677,803
- 18. The Opportunity is Huge… but so are the Challenges
- 20. Connectivity • Interoperate with I0T protocols such as MQTT, XMPP etc. • Bridge communications between I0T protocols and traditional line of business APIs
- 21. Data Collection • Process and aggregate millions of events real time •Execute static queries against dynamic data streams
- 22. Integration • Integrate data produced by smart devices with backend systems • Use line-of-business data in event stream queries •Push data to smart devices based on conditions detected on line-of-business systems
- 23. Scalability • Horizontally scalability models to support the processing of millions of events real time • Elastic and on-demand scalability architecture to adapt to dynamic traffic conditions
- 24. Event Simulation • Record traffic produced by smart devices in an IoT topology • Replay recorded traffic to simulate and test specific conditions
- 25. Real-Time Analytics • Process analytics based on real time traffic from smart devices • Visualize traffic from specific devices as well as from different segments of an IoT topology
- 26. Security • Manage and secure the devices of an industrial IoT topology • Protect the data exchanged between smart devices and corporate systems
- 28. You Can BuildYour Own Infrastructure
- 29. But ItWill be Hard
- 30. It’s Not Just About APIs • Complex event processing platforms • Time series storage • Data visualization platforms • Security and data privacy platforms
- 31. There Must be a BetterWay
- 32. The Solution Introducing the IoT Platform-as-a-Service…
- 33. Simple Goals • Powering industrial deployments of smart devices • Event data collection • Line of business integration • Data security and privacy • Real time analytics
- 34. A Conceptual Model Protocol Broker Layer CEP Engine Rules Engine Storage Engine Real-Time Analytics ManagementOperate Simulation Engine Security Industry Solutions
- 35. Protocol Brokering • Goal: Receive data from smart devices using standard IOT protocols • RelevantTechnologies: MQTT, CoAp, ETSI M2M…. •Benefit: Provide a uniform layer for devices to plug in to the platform
- 36. Event Processing • Goal: Process queries against real time data streams •RelevantTechnologies: Complex event processing platforms •Benefit: Model queries based on conditions against the data produced by IoT devices
- 37. Storage Engine • Goal: Store the data produced by IoT devices and the CEP engine for future processing • RelevantTechnologies: Time series databases •Benefit: Store time-stamped events produced by I0T devices
- 38. Simulation Engine • Goal: Replay events already processed by the CEP engine • RelevantTechnologies: Complex event processing platforms • Benefit: Recreate and test scenarios based on historical data processed by the platform
- 39. Rules Engine • Goal: Model if-then conditions against the data processed by the platform • RelevantTechnologies: Dynamic languages: JavaScript, Ruby, Python…. • Benefit: Dynamically detect Boolean conditions about the data produced by IoT devices
- 40. Real-Time Analytics • Goal: Model analytics and reports based on the data produced by IOT devices • RelevantTechnologies: Data visualization technologies: D3JS, Kibana, etc. • Benefit: Obtain real time intelligence against the data processed by the IoT platform
- 41. Security • Goal: Encrypt and sign data produced by IoT devices •RelevantTechnologies: Traditional data security libraries •Benefit: Protect data exchanges between smart devices and corporate systems
- 42. Putting it all together…
- 43. Benefits of IoT PaaS • Provides a common infrastructure to obtain value from industrial topologies • Enable uniform communication, security, analytics and management layers for heterogeneous IoT topologies • Provide simpler and more agile models for building industrial IOT solutions
- 44. Summary • The IoT PaaS is a natural step in the evolution of the industrial enterprise • The IoT PaaS will include the following building blocks: o Connectivity o Integration o Security o Analytics o Simulation o Management • The industry has produced all the technologies required to build IoT PaaS solutions
- 45. ThankYou
Editor's Notes
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics
- Doesn’t imply mobile Security is limiting – doesn’t convey analytics