internet of things - october 2013 - chandna
DESCRIPTION
TRANSCRIPT
Asheem Chandna
SANS – Internet of ThingsOctober 2013
Page 2
Agenda
• Greylock
• Hype vs. reality
• Challenges and opportunities
• Venture investment
• Summary
Page 3
Greylock Partners
• Founded in 1965
• Menlo Park (primary) and Cambridge
• Currently investing out of Greylock 14 ($1B fund)
• Two primary areas of investment focus
• Consumer Internet• Enterprise IT
• Invest across stages, with strong focus on early-stage
• Investors with industry operating backgrounds
Page 4
Asheem Chandna• 15+ years product management, marketing, business development
• BSEE, MS Computer Engineering – Case Western Reserve University• AT&T Bell Labs, SynOptics / Bay Networks, CoroNet / Compuware• Check Point Software ($10M -> $550M+)
• 10+ years venture capital (investing and company building)• CipherTrust (INTC), PortAuthority (WBSN), Securent (CSCO), Aruba (ARUN), Sourcefire
(CSCO), Zenprise (CTXS), Imperva (IMPV), Xsigo (ORCL)• Palo Alto Networks (PANW), Sumo Logic, AppDynamics, Delphix, Aquantia, SkyHigh, Avi
Networks, Instart Logic, Tech Process
Greylock enterprise companies
*
*
Cloud Infrastructure Cloud Services
Applications
Data and Analytics
Management
Security
Storage
Networking
Page 7
Internet of Things – a definition
“Imagine if all the objects in the world had all the information that they needed to function optimally.” – The Economist, 2010
• Sea change in # of sensors + actuators that can communicate
• Massive new data sources
• Increasing automation (M2M)
Page 8
Reality vs. hype: 50 billion connected objects?
Page 9
$1 Trillion in new revenue?
Biggest categories: Security, Education, Industrial Automation?
Page 10
Another view on future revenue?
Connection Revenues from Application 2020 ($ billions)Connected Car 600
Clinical Remote Monitoring 350
Assisted Living 270
Home and Building Security 250
Pay-As-You-Drive Car Insurance 245
New Business Models for Car Usage 225
Smart Meters 105
Traffic Management 100
Electric Vehicle Charging 75
Building Automation 40
(GSM Association of Mobile Operators)
Biggest categories: Cars, Healthcare, Security?
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6 devices per human?
Page 12
Not a new idea…
“When wireless is perfectly applied the whole earth will be converted into a huge brain...and the instruments through which we shall be able to do this will be amazingly simple compared with our present telephone. A man will be able to carry one in his vest pocket.”
- Nikola Tesla, 1926
Page 13
But increasing recent interest
20132005
Page 14
Especially in Asia…
Page 15
And increasing public awareness
Page 16
Big companies focusing too…
Page 17
Big companies focusing too…
Page 18
Hype may be ahead of reality, but future growth could surprise on upside….
IoT?
Page 19
New challenges
Connectivity
Footprint
Battery Life
Security
Scale
Page 20
Scale
Increasing devices
(sensors)
data from each
sensor
big data problem
Simple example:If every car in the US records location data every 30s while driven…
16 trillion data points / year
Google Self-Driving Car…
750 MB / sec sensor ingest
Page 21
Security
• Exponential expansion in attack surfaces
• Changing threat landscape
• Privacy concerns
• Hardware refresh cycle
• Increased stakes• Critical infrastructure• Kinetic cyber attacks (e.g. Stuxnet)
Page 22
Shodan
Search engine for servers, routers, load balancers, computers…
Search by location, hostname, OS, IP range, port, etc.
Page 23
Vehicle control
Page 24
Scada control
Dan Tentler find
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10K+ geolocatable scada systems
Eireann Leverett
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Traffic control
Page 27
Cams and controls in your home
Page 28
Cheney’s heart device…
Page 29
Transitions create opportunities
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Transforming industries• Transportation
• Self-driving cars reduce accident rates• Free up productive time• Increase fuel economy, reduce congestion,
increase infrastructure load, optimize routes
• Healthcare• Wearables encourage weight loss• Ingestable sensors• Internal monitors feed data to doctors to reduce
hospital visits, algorithms to look for anomalies / increase preventive care
• Mass tracking benchmarks effectiveness of treatments
• Many others…
Page 32
Opportunities and business models
• Software platforms
• End-to-end• Home automation• Wearables• Healthcare• Industrial• Transportation
• Data and analytics
Page 33
Some examples – platform
Page 34
Some examples – end-to-end
Page 35
Some examples – end-to-end
Page 36
Smart marketing but…
Page 37
Some examples – data & analytics
Page 38
Growing VC investment in IoT
$752M across 100+ deals in last year(Q2 2012 – Q1 2013)
Page 39
Significant businesses starting to be built…
$370M (market
cap)
$800M(last
venture valuation)
$2B(acquisition by
Blackstone)$1.5B
(last venture valuation)
Page 40
Opportunity areas
• Software platforms
• End-to-end• Home automation, wearables, healthcare,
industrial, transportation
• Data and analytics
• Transportation (self-driving, optimization)
• Healthcare (monitoring, tele-health)
• Utilities (climate controls, smart grid)
Page 41
Summary
• Billions of devices are expected to come online rapidly, many without adequate security
• Hype ahead of reality, but industry transforming changes are ahead
• Platform transitions will create opportunities for many new large companies to be built
