How the Internet of Things began, the potential and the challenges along the way. Presentation from the Arrow ECS and IBM Partner Jam 2014.

1. IS 2014 THE YEAR OF THE
INTERNET OF THINGS?
Paul Bevan
12th March 2014

2. The Internet of Things
A Definition
• The Internet of Things (IoT) is a
scenario in which objects, animals or
people are provided with unique
identifiers and the ability to
automatically transfer data over a
network without requiring human-to-
human or human-to-computer
interaction
• The Internet of Things is the network of
physical objects that contain
embedded technology to
communicate and sense or interact
with their internal states or the external
environment

3. It started with a Coke (possibly)
• Programmers at Carneige
Mellon University in early 1980s
hooked up the machine to a
computer so they could tell if had
stock and was working before
walking downstairs to get a
Coke!

4. Machine to Machine (M2M) Technology is
not new
• Has existed since the advent of
computer networking
• Tethered implementations
• Large scale industrial process
control, telemetry etc.
• RFID presages wider use based
on wireless technology
• Supply chain use cases
• US Dept of Defense
• Pharmaceuticals chain of custody

5. The Growth of the internet, Cloud and
wireless technologies is new
• Wireless frees the intelligent
devices
• Moore’s law and the development
of cloud technologies makes it cost
effective to process and store the
vast amount of data that is being
captured
• The internet provides a mechanism
for monitoring and controlling
devices on a global basis
• IPv6 lifts the restriction on number
of internet addressable devices
• At the end of 2012 Cisco calculated
that there were 8.7 billion devices
connected to the internet

6. Some interesting (and wacky?) applications

7. The Potential to Disrupt Business Models
• Just Imagine…
• the embedded chip on your inkjet printer senses the
ink is low
• It alerts the 3D printer at the plant to make you a new
cartridge
• Which is picked up automatically by an Amazon
drone and delivered to your house
• Where the secure drop off unit acknowledges receipt
• So that the virtual payment card in your e-wallet
activates a message on your smartphone
• For you to hit the one-click payment button and
transfer funds to the inkjet cartridge manufacturer
How many parts of that supply chain have,
or could be disrupted?

8. Some challenges along the way
• Battery power
• Standards
• Network protocols
• Open APIs
• Security and Privacy Concerns
• “spam in the fridge”…” a fridge too
far”
• Business Models
• Revenue
• Infrastructure Costs
• Support
The dots need to be joined up

9. …but the implications and opportunities are
significant
• Big Data analysis
• Growth of data storage
• Wireless networking, bandwidth etc.
• Application frameworks
• Operational efficiencies
• Know your (and everyone else’s) customer…intimately
Let’s break out what’s happening in the
area of Big Data

10. In 2014 the strongest Big Data business will
be in services and software rather than
storage arrays
Figure1- Source:Wikibon2013

11. 31% compound annual growth rate over the
five year period 2012-2017

12. Storage hasn’t joined the Big Data party yet
• Storage systems decline
4.8% to $27.9 bn
• Disk drives fall 0.3% to
$45.1 bn
• Flash drives grow by 7.4%
to $5.6 bn
• EMC leads the storage
systems market
• Western Digital and
Seagate lead the disk drive
market
• SK Hynix, Micron and TI
lead the NAND market
The discrepancy in growth after 2008
demonstrates that many users don’t need
system vendors to handle unstructured data
challenges

13. Top 10 Big Data Vendors 2012
Vendor
BigDataRevenue
($millions)
TotalRevenue
($millions)
BDRevas%of
TotalRev
BigDataH/W
%
BigDataS/W
%
BigData
Services%
IBM $1,306 $103,930 1% 19% 31% 50%
HP $664 $119,895 1% 34% 29% 38%
Teradata $435 $2,665 16% 31% 28% 41%
Dell $425 $59,878 1% 83% 0% 17%
Oracle $415 $39,463 1% 25% 34% 41%
SAP $368 $21,707 2% 0% 67% 33%
EMC $336 $23,570 1% 24% 36% 39%
CiscoSystems $214 $47,983 0% 58% 0% 42%
PwC $199 $31,500 1% 0% 0% 100%
Microsoft $196 $71,474 0% 0% 67% 33%
Source: Wikibon 2013
IBM have a very strong market share and are well
placed to take advantage of likely future trends

14. The key to growth will be in identifying use
cases and their benefits
Source: IDC

15. There probably won't be a big breakout
moment for the Internet of Things in 2014
• Don’t get carried away
• We are will on the way to 50 billion devices on the internet by 2022
but many elements of IOT have not crossed the chasm yet
• But do keep looking out for new innovative technologies
and business opportunities
• Build up truly collaborative relationships across the supply
chain
• In IOT partnering and collaboration will be the norm.
• Understand and articulate the user case and business
benefit
• IBM have been very “Smart”. Will they be Smarter than
everyone else…time will tell.

16. THANK YOU