The Internet of Things (IoT)The New New Thing

October 2014

Internet of Things

Smart PlanetGreen Environment

• Environmental Sensors• Water, power leak detection• Pollution, weather monitoring

Smart BuildingsBuilding, Smart Homes

• Theromstat, HVAC, lighting• Presence sensors, lockers, actuators• Meters, smart plugs, HEC

Smart IndustryIndustrial Environments

• Lighting, security, actuators• Production control, supply chain efficiency• Robotics, factory automation

Smart HealthHealthcare System

• People monitoring, wearables• Bio sensors, probes, smart watches• Remote Health

Smart LivingEntertainment, Leisure

• Independence through technology• Information when you need it• Connected when you need it

Smart TransportITS, HEVs, EVs

• Electric Mobility, connected cars• Vehicle diagnostics, Fleet Mgmt• Infotainment & Navigation

Smart energyElectric Grid

• Voltage and power sensors• Meters and breakers• Fault detection

Smart CitiesConnected Communities

• Smart meters, Lighting, water• Monitoring & security• Traffic Control

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What is the IoT

• The Internet of Things, or IoT, is emerging as the next technology mega-trend, with repercussions across the business spectrum.

• By connecting to the Internet billions of everyday devices –ranging from fitness bracelets to industrial equipment.

• The IoT merges the physical and online worlds, opening up a host of new opportunities and challenges for companies, governments and consumers.

• A market opportunity consisting of billions of “smart”/connected devices coming online across multiple industry sectors.

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IoT encompasses

The ability to gather any type of sensor-based data

from everywhere in the environment….

….. in unimagined quantity & quality, the ability to transmit

that data over networks real-time……

….. for immediate analysis

….. to create actionable results

….. and enable more accurate analyses and forecasting

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Where does IoT fit?

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Technology Trends 2014 – 2015

Drivers of IoT – the last 10 years has seen…

• Better, faster, cheaper technology Cost of bandwidth has decreased 40 times Cost of processing has decreased by a factor of 60 Cost of sensors has gone from $1.30 to 60 cents, and they are everywhere

• Ubiquitous communications and devices Smartphones have become pervasive Wifi coverage is now ubiquitous and low cost

• The software and the internet are much better IPV6 the newest internet protocol allows almost limitless connections The availability of BIG DATA analytics

• Consumer demand and new business models driving rapid change

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IoT roadmap

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Where IoT players live

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Utilities

Healthcare / Life Sciences

Oil & Gas Logistics

Agriculture

Automotive Retail

Building & InfrastructureIndustrial

Environmental

Public Sector

Consumer

Analytics Software

Ap

plic

atio

n

Solu

tio

ns

Data Warehouse / Storage Technologies

Platforms / Middleware

Network Operators

Subsystems / Modules / Gateways

Infrastructure Bluetooth

Mobile

Antenna

GPS

NFC

Microcontrollers

RFID

ZigBee

Wi-Fi Wireline Technologies

Network Processors

Power Management

Microprocessors

Memory

Connecting Technologies Control and Processing

Enab

ling

De

vice

s

Sensing and Detection

Outlook and investment activity

• Forecasts 28 billion things connected to the internet by 2020

$7.0 trillion global market size

$300 billion in incremental supplier and service revenues

• Investments 2014 $15.7B in M&A deals

Major investors Qualcomm Ventures, Intel Capital (e.g. Basis), Google Ventures (e.g. Nest), Cisco

Investment focus to date Consumer applications, moving to Application Solutions & Platforms

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Howard & Company view

• The Internet of Things (IoT) is one of the most important areas of a Future Internet with high potential to open up new opportunities and challenges for companies, governments and consumers. (Watch closely.)

• We think that companies’ ability to adapt and thrive in this new era of the IoT is very likely to determine who the next set of winners and losers will be in this new connected age. (Seek opportunities.)

• When we look back in 5 years time, we will see massive change has occurred. (IoT is now.)

• Big Data, data warehousing and analytics. (Hot areas.)

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