arrow global village iot summit (2016)
TRANSCRIPT
1 © Nokia 2016 1 © Nokia 2016
IoT network matters
Marc Jadoul ( @mjadoul )
Arrow Global Village IoT Summit
Vantaa, 19 May 2016
1 © Nokia 2016
2 © Nokia 2016
“Suppose every instrument could by command or anticipation of need, execute its function on its own; suppose that spindles could weave of their own accord and plectras strike the strings of zithers by themselves; then craftsmen would have no need of hand-work and masters have no need of slaves.”
Aristotle – circa 350 BC
Bringing the programmable world to life
3 © Nokia 2016
Micro-electronics evolution has enabled the IoT (r)evolution
Source: Goldman Sachs & BI Intelligence, 2015
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
2004 2006 2008 2010 2012 2014 2016E 2018E 2020E
Moore’s Law (1965) The number of transistors in a dense integrated circuit doubles approximately every two years
Average sensor cost forecast
performance increase/price drop over the next 5 years 8X
4 © Nokia 2016
But value will eventually come through networks
Source: BI Intelligence, 2015
0
5
10
15
20
25
2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Metcalfe’s Law (1993) The value of a network is proportional to the square of the number of its nodes (while the cost follows a more or less linear function)
Number of installed IoT devices
billio
ns
the value of the internet by 2020 7.5X
5 © Nokia 2016
net·work 1. a system of computers, peripherals,
terminals, and databases connected by communications lines
2. a group of people or organizations that are closely connected and that work with each other
\ˈnetˌwərk\
6 © Nokia 2016
The IoT provides an unprecedented opportunity for hardware, software and services players in IT, electronics and telecoms
a 400 billion Euro market by 2025
Source: Machina Research and Nokia Strategy, 2015
Modules
Infrastructure
Platforms
Applications, analytics & end-user services
7 © Nokia 2016
Which IoT applications? Do you remember the ‘long tail’ model for video content and services?
De
vice
s/A
pp
lica
tio
n TBD, may come from the Apples or Googles of this world
A broad range of gadgets & apps, likely with few short-term monetization opportunities
Devices, applications and services that provide monetizable value to people, verticals and enterprises.
Number of applications
8 © Nokia 2016
The IoT has a transformational impact on (almost) all sectors
Digital Health
IT Public Safety
Mobility Smart Homes
Retail Services
Industries Smart Cities
Utilities
Patient care Smart stores
Sm
art
In
fra
stru
ctu
re,
faci
litie
s
€
9 © Nokia 2016
21% of companies have an IoT project underway; 50% of all enterprises have already jumped in or are in planning phases
Source: Machina Research, December 2015
vs. Adopters Non-adopters
Which department is leading the IoT charge?
Product Management
Information Technology
€
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• Customer focused • Smarter products, always connected
• Disruptive models, players and ecosystems • Data, device and/or services driven
• ‘Mechatronics’ and ‘devops’ • Data-driven control and decision making
• Self-measurement and self-management • Data driven marketing and customer interaction
Because the IoT is fundamentally changing products, business models, operational processes, and customer/user interaction
Product innovation
Business models
Process automation
Customer interaction
11 © Nokia 2016
Big data is the ‘new oil’, driving innovation, business value and customer experience
Sensing
Monitoring
Analytics
Learning
Control
12 © Nokia 2016
Communication networks can make or break the IoT
90%
40% 70%
19%
Within the next 5 years, more than 90% of all IoT data will be hosted on service provider cloud platforms.
By 2018, 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge, of the network.
As many as 70 percent of IoT devices are vulnerable to attacks.
By 2020, there will be a 19% gap in unmet demand for mobile network capacity.
Sources: IDC, Nokia Bell labs, HP
13 © Nokia 2016
Some of today’s IoT network and platform challenges
Radio & core optimization
Device management
Scalable & SLA-capable
Horizontal plaforms with vertical apps.
Energy efficiency Latency & MEC1
Privacy & security Standardization
& interoperability
Domain knowledge & deep, vertical-specific insights
1 ME
C: M
ob
ile E
dg
e C
om
pu
ting
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Uplink data
Latency
Activity
Density
Coverage
Mobility
Module cost
Battery life
IoT services are very diverse – not all IoT devices and applications have the same connectivity requirements
Utilities
Smart metering
Smart Cities
Surveillance cameras
Automotive
Diverless control
Logistics
Asset tracking
15 © Nokia 2016
IoT LPWA1 technologies increase battery life, widen network coverage, and simplify modems
NB IoT eMTC EC-GSM
Range MCL2
<12km 160 dB
< 10km 157 dB
<15km 164 dB
< 10km 156 dB
< 15km 164 dB
<12km 160 dB
Spectrum Bandwidth
Unlicensed 900MHz 100Hz
Unlicensed 900MHz <500kHz
Licensed 7-900MHz
200 kHz shared
Licensed 7-900MHz
shared
Licensed 8-900MHz
shared
Licensed 7-900MHz
shared
Data rate <100bps <10 kbps <200 kbps < 1 Mbps 10kbps < 1 Mbps
Battery life 10+ years
NW impact Large Large Small to
Moderate Small Moderate Requires 5G
1 LPWA: Low-power wide-area 2 MCL: Minimum Coupling Loss
16 © Nokia 2016
(Too) many different IoT standards development organizations and industry alliances are competing with each other
Source: AIOTI WG3, November 2015
Service & app
Connectivity
B2C B2B
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The IoT business landscape shows an even more complex map
So
urce
: Firsmark C
apital, Jan
uary 20
16
18 © Nokia 2016
Unleashing the potential of the IoT through technical and market validation with a partner ecosystem
Innovation ecosystem Agile prototyping Concept showcase Market trials
refine
Automotive & transportation
Hospitality
Health & wellness
Media & entertainment
Service providers
Tech industry
Consumer elect(ronics
Education
Public sector
Retail & e-
commerce
Ideate
Prototype
Test
Business models
Prototypes Execution partners
19 © Nokia 2016
Nokia is investing in the IoT, 5G and security
Nokia raises USD 350 mln investment fund for IoT companies
Nokia buys Withings for $191 mln Nokia acquires security software vendor Nakina Systems
Nokia joins the Z-Wave Alliance, integrates Z-Wave IoT standard into smart home offerings
Nokia showcases 5G-powered IoT at Brooklyn 5G Summit
20 © Nokia 2016
Our ng Connect IoT community spans a wide range of industries and markets, and includes innovators in all domains*
* 250+ ng Connect members; 40+ IoT Community members at launch
21 © Nokia 2016
Our IoT portfolio from a helicopter view
CPE and devices
Infrastructure
Platform
Applications
IMPACT platform • Application enablement (AEP) • Device management (CDP) • Connectivity management (CMP) • Data collection & analytics
Cellular radio: NB-IoT, eMTC, EC-GSM Unlicensed spectrum: LoRa, Wi-Fi, BTLE Optimized IoT core, leveraging SDN/NFV Mobile Edge Computing, Backhaul & FTTx
Home & enterprise gateway Withings digital health products
IoT Community ecosystem (ng Connect) Applications for selected use cases
Se
curity
Se
rvices
22 © Nokia 2016
Expanding the human possibilities of technoloy while transforming people's lives
Fatalities each year worldwide by not following doctor’s prescriptions
Additional economic benefits by leveraging Smart City applications
Of the 355 billion gallons of water used in the US daily are wasted due to leakages
Estimated energy waste in US buildings due to inefficient and outdated HVAC systems
20% 1 mio
50% 50 bio €
Of fatalities in car accidents are due to human error and slow reaction
Mobile glucose monitoring tools can cut diabetes management costs by
90%
50%
23 © Nokia 2016
We invite you to join us on this transformative journey
www.iotcommunity.com