Cisco recently projected that the Internet of Things (IoT) is a $14 trillion revenue opportunity, while “Gartner estimates that, by 2020, there will be 25 billion connected things." Clearly, smart, connected products—and the technologies that make them tick—are drivers of huge new growth opportunities. However, the full potential of connected devices is only achieved when they are tied to individual identities.

1. Why Identity is at the Heart of the IoT

2. 2
Why Identity
is at the Heart of the IoT
Everything is Connected
Cisco recently projected that the Internet of Things
(IoT) is a $14 trillion revenue opportunity, while
“Gartner estimates that, by 2020, there will be 25 billion
connected things.”1
Clearly, smart, connected products—
and the technologies that make them tick—are drivers
of huge new growth opportunities.
However, the full potential of connected devices is only achieved when they
are tied to individual identities. In fact, Gartner recently issued a press release
entitled: “Gartner Says Managing Identities and Access Will Be Critical to the
Success of the Internet of Things”2. A well-designed customer identity and access
management (cIAM) solution unlocks the true capabilities of the IoT by powering
dynamic relationships between all of the entities in the IoT ecosystem, whether
they are people, things, apps or services.
And this is not science-fiction - we are already seeing customer use cases that
demonstrate the prodigious potential of the IoT. Let’s take a look at some sample
use cases, and then dive into the capabilities that customer identity management
enables for the IoT. Then, we’ll look at the technology infrastructure required
to support smart, connected products and, finally, see how identity is the key
to connecting every entity in the IoT ecosystem.
1 Gartner, Consider All Cost Elements When Planning for an Internet of Things Initiative 01 July 2015, Federica Troni
2 Gartner, Press Release, February, 2015, http://www.gartner.com/newsroom/id/2985717

3. 3
The Power of Identity - Part 1:
The Case of the Smart Vending Machine
By tying “smart” vending machines to an intelligent cIAM solution, “Brand X” gains
deep insights into how its customers interact with their machines and their brand
as a whole, powering engaging, personalized user experiences that extend well
beyond the sale. When a customer logs in at one of these machines by using an
existing identity from a social network or other pre-verified account, by scanning QR
codes on the machines themselves, or by registering for a new account on the spot,
she experiences something like this:
Cristina is a big fan of a particular
kind of candy, so a few months
ago she “liked” it on Facebook.
When she logs in to Brand X’s
smart vending machine using her
Facebook credentials at her local
movieplex and orders a soft drink,
the machine suggests that she also
try a brand new flavor of this candy
that’s just been introduced.
The next day, Cristina receives a
promotional email from the same
candy brand, offering her a free
movie ticket if she buys 5 packs
in the next 30 days.
cIAM also enables operational
business benefits by connecting
machines’ monitoring systems
to profile and behavioral data, as
well as attributes like weather and
geography, to promote products,
optimize supply chains and better
match supply to demand.
Hey Cristina!
Looks like you love “Yummy Gummies”
so here’s an offer you can’t refuse.
Buy 5 packs of Yummy Gummies
before August 31st, we’ll send you
A FREE MOVIE TICKET
good for any regular showing
at MCA Theaters!
Buy now >

4. 4
The Power of Identity - Part 2:
The Case of the Smart Connected Appliance
“Brand Y” is a manufacturer of connected appliances that customers can interact
with using their smartphones or tablets, optimizing maintenance, time savings, and
energy and water conservation, while increasing peace of mind. When married with
a well-designed cIAM solution, this technology also opens up opportunities for new
revenue streams through marketing, as well as operational cost savings. Here’s a
typical experience for a “connected home” customer:
Don owns a connected washing
machine that he can monitor
and control from his smartphone.
The machine tracks Don’s
detergent levels based on factors
including number of loads and
average volume of detergent
per load. Since Don’s customer
profile stores information like his
preferred brand of detergent,
Brand Y is able to build long-term
loyalty by sending text messages
to remind him not only when to
buy his preferred detergent, but
which retailer has the lowest price.
The next time Don visits a retailer
to purchase an accessory for his
appliance, a sales associate
welcomes him with a discount toward
his preferred detergent as a loyalty
reward, and also reminds him of new
features available with an upcoming
firmware update.

5. 5
How cIAM Enables Better User Experiences
in Smart, Connected Products
Performance Great IoT customer experiences are based on earned trust. In a world
of lightning fast search engines, live chats and social broadcasting,
customers naturally expect real-time responses from connected
devices. They also demand consistently reliable, frictionless
performance. To deliver on this expectation, businesses must ensure
that their customer identity management solution is highly available
and capable of scaling to handle peak loads that can easily swell to
millions of users in very short periods of time.
Reduced Friction Authentication is a key layer in any IoT technology stack, but you can
be certain that as more new products come online, fewer of them
will have traditional user interfaces. The user/password model is fast
becoming outmoded in favor of new methods such as machine-
to-machine (M2M) authentication protocols and biometrics.
To maximize value, this enhanced authentication experience should be
backed by equally frictionless authorization across multiple properties—
enabled by a unified identity profile—for smoother, customized
cross-channel experiences.
Personalization Connected products tied to individual identities add value for customers
by delivering highly personal experiences that are driven by an
ongoing, consenting relationship between user, product and brand.
In addition to enabling a better experience, this relationship both allows
organizations to monitor their products for maintenance and optimal
performance and to understand how customers are using them.
Ideally, this two-way relationship becomes both the measure and
the driver of customer lifetime value, optimizing UI design, product
development, marketing initiatives and more.

6. 6
Building the Stack
To successfully navigate the world of connected devices, companies must build
a new infrastructure to support all of the capabilities these products offer:
a multi-layered system known as a “technology stack.”
Spanning this entire structure is a customer identity management layer that enables
secure API transactions and a repository for customer data, frictionless registration,
single sign-on, and simple, flexible integration with third-party apps and services that
drive the business’ top-line.
Securing the Stack
Regarding the IoT, “Internet Father” Dr. Vint Cerf was recently cited as saying:
“The nightmare headline for me is, ‘100,000 Refrigerators Attack Bank of America.’
The biggest challenge will be helping consumers properly configure their systems
so only authorized parties have access to that information or control over the
devices providing it.” -WashingtonExec.com
As the universe of smart, connected products balloons in scale and complexity,
it is imperative that the customer identity management layer in any IoT technology
stack uses appropriate API-based authentication and authorization standards,
and is verifiably capable of protecting PII and other first-party customer data at rest,
in use, and in motion. Best-of-breed cloud-based cIAM solution providers build
these security practices into their platforms.
Third Party API’s
Product
Product Software
Product Hardware
Product Cloud
Smart Product Applications
Rules/Analytics Engine
Application Platform
Product Data Database
Connectivity
Customer Identity & Access Management
Internal Business Systems
Network
Communications
* adapted from HBR.org

7. 7
For one, cloud technology offers superior performance for connecting multiple APIs
in a multi-tenant environment. Extreme operational flexibility is another compelling
factor, as is built-in software integration that allows even very large organizations
to be more agile and flexible. Finally, with a cloud-based cIAM solution, customer
and internal data assets remain discrete, so a breach at any point is less likely to
significantly impact operations.
Entities with Identities
Success for IoT entrants depends on defining some new concepts in data
management. New to identity management is a recent extension known as the
Identity of Things (IDoT). The IDoT is based on the principle that all entities in the IoT
ecosystem—including people, apps, services and connected things—have identities
comprised of identifiers and their attributes, and that those identities define
relationships between every entity.
Managing data that flows between people, smart products, and applications and
services requires a strategy that unifies every entity in the system, whether actor
or asset, so each entity can contribute as either a data generator or data consumer
to fulfill business moments. A core requirement for these new, unified systems is an
identity management solution that can integrate every entity with unified customer
identities and leverage disparate data types at internet scale.
Relationships
Interactions
People Things155
Apps &
Services

8. 8
“Managing identities and access is critical to the success of the Internet of Things
(IoT), but in its current form identity and access management (IAM) cannot provide
the scale or manage the complexity that the IoT brings to the enterprise, according
to Gartner, Inc.”3
This stark reality has given rise to a new breed of identity
management solutions, such as Gigya’s cIAM, with cloud-based architectures that
are well-equipped to not only handle the volume, variety and velocity of data that
the IoT generates daily, but also convert this data into top-line value.
Key Takeaways
• The IoT will affect every business unit, from IT, to product design and
management, to marketing.
• A well-defined customer identity management strategy is critical to IoT success.
• Legacy IAM solutions in their current form are not well-suited for handling
customer data. A best-of-breed cIAM solution is the best choice for IoT
infrastructure strategies.
3
Gartner, Press Release, February, 2015, http://www.gartner.com/newsroom/id/2985717

9. © 2015 Gigya, Inc. | 2513 Charleston Road #200, Mountain View, CA 94043 | T : (650) 353.7230 | www.gigya.com
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The Leader in Customer Identity Management
About Gigya
Gigya’s Customer Identity Management Platform helps companies
build better customer relationships by turning unknown site
visitors into known, loyal and engaged customers. With Gigya’s
technology, businesses increase registrations and identify
customers across devices, consolidate data into rich customer
profiles, and provide better service, products and experiences by
integrating data into marketing and service applications.
Gigya’s platform was designed from the ground up for social
identities, mobile devices, consumer privacy and modern marketing.
Gigya provides developers with the APIs they need to easily build
and maintain secure and scalable registration, authentication, profile
management, data analytics and third-party integrations.
More than 700 of the world’s leading businesses such as Fox, Forbes,
and Verizon rely on Gigya to build identity-driven relationships and to
provide scalable, secure Customer Identity Management.
For more details about Gigya, visit www.gigya.com or call us at
650.353.7230.