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Alfonso Velosa@alvelosa

The Provider Opportunity in the Internet of Things

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Why IoT?

By 2020: Ten Billion Connected Things* Shipped in One Year

*Excluding Smartphones, Tablets and PCs

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IoT Is a Pairing of Services and Things!

Service or app

Machine to machine (M2M) communication

Thing

Embedded intelligence

Internet of Things (IoT): A network of physical objects that contain embedded technology to communicate and sense or interact with their internal state or the external environment

Photo Source: AB InBev, Mesh Systems

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The IoT's Characteristics Will Bring Turmoil to Your Industry

Ecosystem

• Emergent

• Vertical Industry

• Complex

Scale

• Many Things

• Big Data

• Many Startups

Heterogeneity

• Large and Small

• Old and New

• Multi-X

Opportunity• Business Models

• Data

• Security and PrivacyPhoto Source: Libelium

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Market Opportunities Extend Well Beyond "Things"

• Diverse market made more complicated by not just the "things" but also the vertical markets

• IoT presents an enormous services opportunity as enterprises retrofit and/or install new equipment

0

1

2

3

4

5

6

7

8

9

10

2014 2015 2016 2017 2018 2019 2020

Consumer Enterprise Transportation

CAGR 2014-2020

36%

Bill

ions o

f U

nits S

hip

ped

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Find the Business Value:Four Usage Models

• Asset optimization and monitoring

• Predictive maintenance

• Customer traffic management

• Pay-as-you-use

• Time-of-day based charging

• Turning product into service

• Remote control

• Remote unlock and access

• Telemedicine and healthcare

• Send digital content to thing

• Software upgrades

Optimize

Charge

Operate

Extend

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Ground Your Go-to-Market Strategy in Your IoT Architecture Options

Think From the Thing to the Person!

CloudThings Gateway End User Decision Maker

Data AnalyticsApplication

Co

mm

un

ica

tio

ns

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Providers Must Find Their Place in IoT Ecosystems … Partnerships Are Critical

Hardware

Professional Services

Software

Communications

Datacenter Providers

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Hardware

Professional Services

Software

Communications

Datacenter Providers

Providers Must Find Their Place in IoT Ecosystems … Partnerships Are Critical

You

Hardware

Middleware

SoftwareTelecom

Services

IoT Standards

Bodies

Representative list

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Recommendations: Think From the Thing to the Person

Build your initial IoT architecture by 4Q14, so you can assist your clients on their IoT architecture and policy:

- This will be a living model to use with your clients.

- Use your architecture to gain competitive advantage.

Find your place in the ecosystem … and identify your initial set of strategic partners by the end of 2014.

Target your value:

- Focus on lowering costs and building new business models for your clients enabled by IoT.

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Recommended Gartner Research

Build Your Blueprint for the Internet of Things, Based on Five Architecture StylesHung LeHong (G00269736)

Market Trends: TSPs Must Invest in the Rapidly Evolving IoT Ecosystems NowAlfonso Velosa and others (G00259158)

Market Trends: Digital Business Opportunities in Smart Cities Need IoT FoundationsAlfonso Velosa and Bettina Tratz-Ryan (G00263702)

Internet of Things Can Help Public-Sector Services Reduce Costs and Engage CitizensAnurag Gupta and Jim Tully (G00264413)

For more information, stop by Gartner Research Zone.

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Recommended Gartner Research

What Securing the Internet of Things Means for CISOs Earl Perkins (G00259020)

Hype Cycle for the Internet of Things, 2014Hung LeHong and Alfonso Velosa (G00264127)

Cool Vendors in the Internet of Things, 2014Alfonso Velosa and others (G00262623)

For more information, stop by Gartner Research Zone.

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