Bill Morelli Associate Director

Internet Connected Devices: Evolving from the “Internet of Things” to the “Internet of Everything”

SEMI Texas Fall Outlook – October 30, 2013

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

IoT vs Connected Devices

Internet of Things (IoT) The concept that the status & location data of objects can be used to automate systems, and provide real-time monitoring of people and things → these dynamic interactions are intended to improve efficiency, productivity,

and quality of life Internet Connected Device Any IP addressable device that can directly access or be accessed by other internet connected devices → ranging from basic sensors and telemetry to powerful computing devices

with a full OS and UI

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IoT Technologies

Wired WPAN WLAN WWAN

Cellular Satellite

802.11x Bluetooth ANT ZigBee Etc…

Ethernet Coax Fiber Etc…

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IoT Market Segmentation

Node Endpoint with

limited intelligence, e.g

RFID tag, sensor

Controller Intelligent device

with UI, e.g. smartphone,

tablet

Infrastructure Devices which

handle data, e.g. switches, routers

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

IoT Applications

Consumer Automotive

Telecommunications

Home & Building Automation

Data Center & Cloud

Consumer Devices

Medical

Commercial Transportation

Industrial

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

Internet of Things Hierarchy

Connected Electronic Devices - Classic versions of a Bluetooth headset, printer, computer monitor, DVD player, licensed mobile radio unit, etc.

IP-addressable Connected Devices: Tablet PC, smartphone, Infotainment head unit, smart meter, EV charging station, home health hub, etc.

All Objects

Electronic

Connected

IP Addressable

Internet Connected

Closed Network

Non-IP Addressable

Unconnected

Non-Electronic

Tagged

Untagged

Internet of Everything

Internet of Things

Unconnected Objects Devices - Classic versions of a desk, chair, soda can, fire hydrant, animal collar, shipping pallet, buildings, etc.

Unconnected Electronic Devices - Classic versions of a calculator, streetlight, vending machine, coffee maker, blood pressure monitor, etc.

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

Internet of Everything Evolution

Internet of Everything (IoE): represents the open access to data from one or more monitoring and control systems by third-party applications to provide unique, additional value to stakeholders.

Connect Devices

Collect Data

Access Data

Complex Analytics

Unique Value

• Connectivity• Intelligence

• Sensors• Storage

• Cloud• Standards• Open APIs• SECURITY

• “Big Data” Realize the true potential of a connected society….

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

IoT Forecast, World, 2011 - 2025

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0

10,000

20,000

30,000

40,000

50,000

60,000

2011 2012 2013 2016 2019 2022 2025

Automotive Communications, Fixed Communications, Mobile

Computers Consumer Industrial

Medical Military & Aerospace New Device Shipments

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Market Drivers & Enablers Expanding Capacity

- IPV6 Implementation - Network upgrades (LTE & fiber) - Efficient/improved Backhaul - Data Centers

Ultra-Low Power Very low power processors which can be implemented in a wide range of industrial (and novel) applications will be increasingly important.

Market Penetration As IP-addressable devices become more commonplace and IoT use cases better understood, the commercial benefits are expected to drive increased connectivity.

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

Market Challenges & Restraints Global Economy: Many IoT initiatives rely on significant

infrastructure investments. The next 2-3 years are expected to see slow uptake as a result of tighter consumer budgets, a sluggish housing market, and lower overall Industrial CapEx.

Business Models: A compelling business case with a solid ROI is required for equipment manufacturers, end-users, or service providers who are considering investment in the internet connected devices market.

Security & Privacy: Potential benefits of IoT for consumers and businesses include more personalized goods and services – however, to gain user acceptance this information sharing must balance personalization with privacy, and all must be highly secure

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

IoT Case Study – Smart Port Logistics

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Hamburg’s docks are limited to an area of 27.8 square miles, yet the number of containers that pass through each year is expected to triple from the current 9.1 million.

"Smart Port Logistics", a 3 month joint pilot project by the Hamburg Port Authority, Deutsche Telekom and SAP was launched in 2012.

This solution streamlines flows of goods and keeps up to 40,000 vehicles a day in check.

Real-time information about freight orders and the traffic situation provided by an IT-assisted traffic management system.

Optimized flow of goods minimizes traffic jams and waiting times for truck drivers.

© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

Q & A

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© 2013 IHS. No portion of this presentation may be reproduced, reused, or otherwise distributed in any form without prior written consent.

Thank you

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Bill Morelli Associate Director – M2M & Internet of Things +1 (512) 582-2010 bill.morelli@ihs.com