These are the slides from the first webinar in the Respect Network Personal Cloud Webinar Series. They provide an introduction to personal clouds and personal cloud networks and explain why they will enable new business models based on higher trust in digital relationships.
How Personal Cloud Networks Enable New Business Models
1. How Personal Cloud Networks Enable
New Business Models
2013-07-02
Gary Rowe, CEO
Drummond Reed, CTO
Dan Blum, Principal Consultant
2. Introducing: Gary Rowe, CEO
2
• 35 Year technology executive with Data
General, Honeywell, NCR, AT&T
• 1998-2009: President, Burton Group
– Highly respected research and analyst firm in
identity, directory, security, cloud computing and privacy
areas
– Grew annual revenue from $1.5M in 1998 to $30M+
– Sold to Gartner in Dec. 2009
• 2010-Present: Active investor with Tech Coast
Angels in San Diego
• 2011-2012: Advisor to Respect Network Corp
• October 2012: Joined as CEO
3. Today’s Presentation Will Cover
3
1.Gary
• The problem: lack of personal control on the Internet
• The solution: personal clouds and personal cloud networks
• Major benefits of a personal cloud network
2.Drummond
• How it works: the 3 layers of a personal cloud network
3.Dan
• Next steps: bringing personal clouds and business together
7. 7
…instead they have just given us
more data, relationships, and
communications to manage—
and less control
8. • Without data ownership there can be no expectation of privacy
• Aggressive data aggregation & behavioral tracking is causing further
erosion
– Geo-location data on mobile devices
– Tracking tied to social networks and social login services
– Ads popping up with a context you didn’t think you had exposed
– Google and Facebook everywhere, correlating your data
– WSJ “What They Know” series of articles
– “Creepy factor”
• Consumers accept some lack of privacy in exchange for valuable
services, but we are approaching a tipping point as businesses push for
more and more private data
8
9. Businesses are also Between a Rock and a Hard Place
– Want user data at scale, but its
hard to quantify ROI
– Unsustainable dose of “big data
steroids” to maintain growth
– How can “big data” comply with
rising regulations internationally?
– Only a few huge businesses with
large lobbying and security
expenses can win at that game
– Other businesses reduced to
taking the crumbs on the table
9
11. • A cloud-based platform the individual owns and controls
– A repository for my data, applications and preferences
– A place to manage connections, relationships, communication
– My oasis on the Internet
• Secure, lifetime data repository with NO ambiguity in terms of
who controls the data
• A platform for applications—much like a personal computer or
smartphone—but running in the cloud and accessible from all
my devices
11
13. Many vendors already offer proprietary personal cloud
storage solutions for this purpose
13
14. But cloud
storage is just
the tip of the
iceberg
The real
potential of
personal
clouds is
much larger
14
15. Why? Because a personal cloud
is more than just a way to share
data between all of your devices… Personal Cloud
15
16. …it is a way to share data across a new kind of network
16
17. This is a dramatically
different model than today’s
social networks, whose value
lies in aggregating and
centralizing vast quantities
of personal data
17
23. Each link on the network is a secure communications
connection called a personal channel
23
Personal channel
24. A personal channel is an opt-in permissioned relationship
for exchanging both secure messages and secure data
24
Secure messaging
Secure data sharing
Respect Network communications
are based on the open standard
XDI semantic data interchange
protocol
Business Cloud
25. So the first major benefit is providing a P2P channel for
communication and semantic data exchange
Business Cloud
25
✔
✔ ✔
✔
✔
26. 26
This leads directly to the second major benefit: a
personal cloud network can offer network-wide
safe single sign-on
27. For example, Respect Connect will offer an alternative to
Facebook Connect through your personal cloud
27
Personal cloud
loginsSocial
network
Social logins
• Proprietary
• Not portable
• Not contextual
• Limited data
sharing options
• Depends on the
social network
• Lost if you lose
the account
• Open standard
• Portable
• Contextual
• Unlimited data
sharing options
• Under your
personal control
• Protected for life
28. 28
The third major benefit is that, just like a social network
or a smartphone, a personal cloud network is a
platform for new apps
Social Mobile
29. However these apps can offer new trusted data sharing
services not available from social/mobile apps today
29
Secure messaging
Secure data sharing
Personal clouds will enable developers to:
• Strongly assure users that the app will respect
each user’s personal data
• Securely message and intelligently notify
users without writing any additional code
• Store and access shared data with a
full, standard, portable permission model
• Create new shared data types at either the
global or community levels
• Give users full data portability with no
additional effort
App Cloud
30. 30
The fourth benefit is that a personal cloud network is the
next major step in digital relationship management
31. This is the vision of Vendor Relationship Management
led by Doc Searls at the Harvard Berkman Center
32. For a marketer, a personal channel is a new tool for building
lifetime relationships and high-loyalty customers
32
Ongoing intimate dialog about
customer needs and company offers
Personal channels enable businesses to:
• Give customers one-click access (e.g., sign-
on, ordering, receipts, recommendations)
• Learn more about a customer with one-click
(e.g., sizes, preferences, reputation)
• Be notified about customer events and
intents (e.g., change-of-address, new baby)
• Notify customers about exactly the topics in
which they are interested
• Retain customers no matter how often they
move or change contact addresses
Business Cloud
35. 35
Building a successful
personal cloud network
requires all three layers of
the ―BLT sandwich‖—
business, legal, and
technology
Technical Layer
Legal/Trust Layer
Business Layer
Members
36. The technical layer: the personal cloud ―stack‖
Members People &
Businesses
Mobile Apps
Whisper
JSON &
XDI
Endpoints
Apps
Discovery Dictionary Reputation Billing Signaling
Network
Services
XDI
Endpoints
CSPs
(Cloud
Service
Providers)
36
DOXDesktop
Apps
Web Apps
Respect
Network
APIs
Peer-to-Peer
Personal
Clouds
Square
Tag
Registry
37. • A personal cloud is modeled as a
semantic data graph
• The graph maps your
identities, data, and relationships
across multiple providers
• Link contracts in the graph enable
privacy-respecting data sharing –
it’s your choice
37
38. The technical layer: XDI semantic data interchange
protocol
38
Secure messaging
Secure data sharing
XDI is an open standard from OASIS for:
• Contextual identification of
people, businesses, devices, and data
• Global persistent addressing of
entities, attributes, and relationships
• Scalable semantic mapping of data from
different sources and schemas
• Interoperable authorization using XDI link
contracts and policy expressions
• Privacy and data portability by design
Business Cloud
39. 39
Even with the best
technology in the
world, without a strong
trust model no one will
use a personal cloud
network
Technical Layer
Legal/Trust Layer
Business Layer
Members
40. 40
Type Trust Framework
U.S FICAM
Status
U.K. Identity Assurance
U.S. NSTIC
Kantara Identity Assurance
Telecom Data Verification
Respect Trust Framework
Mydex Trust Framework
Home
OIX
OIX
OIX
Kantara
OIX
OIX
OIX
Live (2010)
In progress
In progress
Live (2010)
In progress
Live (2011)
In progress
Government-
Initiated
Industry-
Initiated
User-Centric
Digital trust frameworks are a new tool for combining
technology and policy to achieve large-scale trust online
41. Designed specifically for the
privacy and security requirements
of a P2P personal cloud network,
the Respect Trust Framework
won the Privacy Award at the 2011
European Identity Conference
41
42. 42
To reach its potential, a
personal cloud network
also requires a
sustainable, scalable
business model
Technical Layer
Legal/Trust Layer
Business Layer
Members
43. For example, the Respect Network business model is patterned
after the credit card interchange fee model
43
Payment
Transaction Relationship
Issuing bank Acquiring bank
Interchange fee
$
$$
$
Relationship fee
$
$$
$
Rewards Rewards
On a credit card network, businesses
pay interchange fees based on the
value of the transactions facilitated by
the network
On the Respect Network, businesses
pay relationship fees based on the
value of the relationships facilitated by
the network
Personal
channel
Cloud provider Cloud provider
46. Introducing: Dan Blum, Principal Consultant and
Chief Security Architect
46
• Internationally-recognized security and identity expert
• 1998-2009: Burton Group
– Principal Consultant for large enterprises, leading technology providers
– Research Director for Identity and Privacy Strategies (IDPS)
– Lead author on initial IDPS Reference Architecture
– Consultant for U.S. E-Authentication and Canadian Cyber-Authentication
programs (2004-2006)
– Research Director for Security and Risk Management Strategies (SRMS) and
lead author on SRMS Reference Architecture
• 2010-2013: VP & Distinguished Analyst at Gartner
– Agenda manager for security reference architecture
– Lead analyst for cloud security and other topics
– Won Golden Quill Award in 2011
• March 2013: Joined Respect Network to develop consulting
practice and create peer cloud security guidance
47. 47
Understand the Personal Cloud Value Chain
Developers
Businesses
Consumers and businesses
receive the relationship value
produced by the network
(businesses pay for this value)
Cloud Service Providers (CSPs)
Consumers
Relationship
As with
smartphones, developers build
value-added apps for the
platform and are paid by
buyers of those apps
CSPs deliver cloud hosting
services and are paid both
relationship fee revenue and
direct value-added service fees
48. • Lifetime customer relationship management
• Safe, permanent single sign-on
• One-click semantic data sharing
• Secure cloud-to-cloud messaging
• Intelligent notification and event processing
• Strong assurance of privacy & respect
48
For Businesses Value proposition:
Next steps:
• Discover: What business models and opportunities for personal cloud
networks make sense in our vertical industry?
• Evaluate: What use cases can we enable? What providers could we use?
• Plan: How do we make the business case?
• Implement: What architecture and implementation strategy gives us
the best path to value?
49. • New revenue stream
• New service offerings
• Build customer trust
• Gain customer insight
• Increase customer retention
• Improved security/privacy compliance
49
For CSPs Value proposition:
Next steps:
• Discover: How can we enhance existing services or create new services
as a personal cloud provider?
• Evaluate: What technologies should we use and which partnerships
should we seek?
• Plan: What levels of assurance should we support?
• Implement: How do we develop security and privacy architectures fit
for the purpose?
50. • Respect Connect: From Social Login to Personal Cloud Login
• Trust and Reputation on a Personal Cloud Network
• CRM Meets VRM: How a Personal Cloud Network Will Enable
Real Vendor Relationship Management
• Connecting the Internet of Things to the Internet of People
50
51. • Purpose
– Assess an organization’s opportunities and readiness for personal cloud
– Develop a strategy, plan for the future
• Assessment factors
– Business model and customer issues
– Geographical, technological and regulatory profile
– Baseline security, privacy and identity postures
• Benefits
– Discover business opportunities and use cases for personal clouds
– Identify gaps and issues
– Discover stakeholders in the business, facilitate discussion
– Develop vision, strategy, architecture and implementation plans
52. Gary Rowe, CEO
Drummond Reed, Founder
Dan Blum, Principal Consultant
gary@respectnetwork.com
drummond@respectnetwork.com
dan@respectnetwork.com