Welcome to the internet of things

Welcome to
the Internet of
Things,
by the way
privacy is
dead…

Agenda
• What is the Internet of Things (IoT)
• Business models & potential market size
• Drivers for IoT
• Security and Privacy
Feb 2015 © Kate Carruthers | katecarruthers.com 2

Objects are becoming
embedded with sensors
and gaining the ability to
operate & communicate
independent of human
intervention.

The resulting information
networks promise to
create new business
models and disrupt
existing business models.

Characteristics
Distributed
Peer to peer
API based
Network neutral

Connected devices are
transformed from a single
purchase product into a service
that generates recurring income.
IoT value is not in the devices,
but in new services related to
the devices.

New business models
• Open models
• Collaboration & loose confederations
• Agile, change ready organisations
• Restructured supply chain
• Mergers & acquisitions

Ubiquitous connectivity

Cisco says US$14 trillion IoE value
1) asset utilization (reduced costs) of $2.5 trillion
2) employee productivity (greater labor
efficiencies) of $2.5 trillion
3) supply chain and logistics (eliminating waste) of
$2.7 trillion
4) customer experience (addition of more
customers) of $3.7 trillion
5) innovation (reducing time to market) of $3.0
trillion
CISCO White paper: Embracing the Internet of Everything for your Share of $14 trillion

Market signals - 2014
• Google bought Nest for US$3.2B Jan 2014
• Google & Nest bought Dropcam for US$555M
• Samsung bought SmartThings for US$200M
• Vodafone bought Cobra Automotive for
£115M
• Zebra Technologies bought a unit of Motorola
for US$3.45B

Market signals - 2014
• global survey of 1400 software
developers
• 17.1% working on IoT apps
• 23% expect to begin work in
next 6 months
Evans Data Corporation Survey July 2014

Driven by convergence
• Ubiquitous comms
networks
• Mobile connectivity
• 3D printing
• Sensor networks
• Big data > drawing
useful inferences
• Peer to peer
networks
• Cloud computing
• Artificial intelligence
• Commodity sensors
• Software defined
networks

Fuelled by app ecosystem
“Between 2008 and 2017,
Google Play and Apple’s App
Store will be responsible for a
mind-blowing number of
mobile app downloads: 350
billion.”
Source: http://www.mobilemarketingwatch.com/the-decade-of-350-billion-app-downloads-26932/

Allflex DNA tags

Industries
Financial services
Automotive
Technology
Entertainment
Retail
Healthcare
Hospitality
Industrial
Power & utilities
Energy & mining

Driverless trucks the next big thing in WA's Pilbara, ABC 25 Apr
2014, 3:13pm

Source: http://readwrite.com/2014/04/30/connected-home-hackers-stop-yelling-at-babies-foscam#feed=/tag/internet-of-things&awesm=~oEe6yipkTkz40o
Last August, a hacker infiltrated a wireless camera owned by the Gilbert family, living in
Houston, Texas. The stranger took control of the unit and used it to scream obscenities
at a two-year-old toddler. Fortunately, the hearing-impaired child didn’t have her
cochlear implant turned on at the time, otherwise she would have heard the stranger
yelling, “Wake up Allyson, you little slut!”

Bloomberg, Data Breaches in the US, at 4 Sep 2014

• 3rd party HVAC
firm attack
vector
• Security
software
disabled
• PCI DSS didn’t
save them

Bloomberg, Oct 2014

JP Morgan
• Sarbanes-Oxley Act (SOX)
• Payment Card Industry Data Security Standard
(PCI DSS)
• Gramm-Leach-Bliley Act (GLB) Act
• Electronic Fund Transfer Act, Regulation E (EFTA)
• Free and Secure Trade Program (FAST)
• Fair and Accurate Credit Transaction Act (FACTA),
including Red Flags Rule
• Federal Rules of Civil Procedure (FRCP)

Traditional approach to perimeter security

Bot-herders can
launch DDoS attacks
from dryers,
refrigerators, other
Internet of Things
devices
Network World Sep 2014

Feb 2015 © Kate Carruthers | katecarruthers.com 26Proofpoint Uncovers Internet of Things (IoT) Cyberattack, January 16, 2014
“The global attack campaign
involved more than 750,000
malicious email
communications coming
from more than 100,000
everyday consumer gadgets
…”

Feb 2015 © Kate Carruthers | katecarruthers.com 27Proofpoint Uncovers Internet of Things (IoT) Cyberattack, January 16, 2014
“… such as home-
networking routers,
connected multi-media
centers, televisions and at
least one refrigerator”

It’s “often impossible to
patch the software or
upgrade the components
to the latest version.”
Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan
2014

“Often, the complete
source code isn’t available.
Yes, they’ll have the source
code to Linux and any other
open-source components.”
2014

“But many of the device
drivers and other
components are just
‘binary blobs’ - no source
code at all.”
2014

“That’s the most pernicious
part of the problem: No
one can possibly patch
code that’s just binary.”
2014

Privacy
“If it was dead, they
wouldn't be fighting so hard
to kill it, all over the world.”
- Peter Watts

http://www.abc.net.au/news/2014-11-04/berg-the-jig-is-up-on-data-retention-plans/5864432
http://www.theguardian.com/uk-news/2015/jan/22/snoopers-charter-changed-version-pass-before-election

Privacy
Privacy by Design:
embedding privacy into IT, business
practices and networked
infrastructures right from the
outset
https://www.privacybydesign.ca

Consumer privacy
• Pervasive computing
• Personalisation
• Customisation
• Convenience
• Lack of understanding
• Meaningful consent

Oops we spied on your wifi
http://www.cnet.com/news/google-oops-we-spied-on-your-wi-fi/

Time, Sep 2014

Spy TVs…
http://www.tomsguide.com/us/lg-tvs-spying-confirmation,news-17887.html

“We tend to
overestimate the effect
of a technology in the
short run and
underestimate the effect
in the long run.”- Amara's law

Kate Carruthers
UNSW Australia
Sydney
katec@unsw.edu.au
Twitter @kcarruthers

Welcome to the internet of things

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