ON THE SAME LEVEL

An Introduction to IoT Platforms

MARCH 2017

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ON THE SAME LEVEL l AN INTRODUCTION TO IOT PLATFORMS2

ContentsSummary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

What is a Platform? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Types of IoT Platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

State of the Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

U .K . Platform Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Horizontal software platforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6

Chipsets, modules and hardware-based or virtualised

appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Market-specific ‘platform services’ . . . . . . . . . . . . . . . . . . . . . . . . . 7

Selecting a Platform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

Your Views . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

ON THE SAME LEVEL l AN INTRODUCTION TO IOT PLATFORMS

Numerous players participate in the IoT platform space, ranging from IT service providers, software and solution vendors, telecom providers, equipment vendors, pure-play organizations and MVNOs. The sheer number and types of platforms on the market can cause confusion, as can the overlap in platform descriptions and capabilities.

Though designed to ease the complexity and boost the security of an IoT deployment, filtering through the numerous options is no simple task. This document attempts to categorize the various types of platforms, highlight the key issues characterizing the market, and detail the groups of players participating in the space.

3

Summary

ON THE SAME LEVEL l AN INTRODUCTION TO IOT PLATFORMS4

What is a Platform?

A platform is a foundation on or through which others

provide useful tools and applications to perform

specific tasks . Platforms can be roughly split in two –

one deals with the operations of devices and actuators

that sense and change a machine’s state e .g . change a

valve from open to closed under certain circumstances;

the other deal with the information issues arising from

the sensor – communications, data collection, storage,

processing/analysis and presentation . While the former

is usually associated with SCADA (system control and

data acquisition), the latter is usually thought of as the

Internet of Things (IoT) .

Crucial to the platform idea is the associated ecosystem .

Just as iTunes, Uber and Airbnb aggregate and match

music, spare rides and rooms with customers, so

too do the IoT platform vendors aggregate capacity

and function from various providers, package and

present them to customers; saving them cost and time

in searching, coupled with the tacit or explicit quality

approval of the platform owner .

IoT is such a diverse universe that by common consent,

no one vendor can do it all . Delivering a working IoT

project is an exercise in packaging solutions and

distributing the profit . As iTunes, Uber and Airbnb

have shown, more of the total value will accrue to

the organisation that controls the platform than to the

individuals that provide capacity to the platform, even

though the platform owner gets only a fraction of the

transaction value of any one deal . These economics

also drive platform makers to develop global markets,

even if their main targets are industry verticals, such as

connected vehicles or smart meters .

Types of IoT Platforms

Traditional IoT platform core services offer device

management, network connectivity management,

and application enablement, along with underlying

fundamental capabilities such as security, billing

services and data management . Having all of these

capabilities available from a single source, with a

single supplier relationship creates vital efficiencies for

enterprises, providing them with access to a range of tools and functions in a way that enables them to scale as required, and launch new services quickly and cost effectively . Well-known platform suppliers in this space include Cisco Jasper, Ericsson and Vodafone .

While this forms the heart of the IoT platform, no less important are the hardware platforms that allow chip, module and device designers to build up working machines such as sensors and motion controllers, and the software platforms that allow the data generated by the sensors and collected by the platform to be aggregated with other data and analyzed . Typical examples include Bosch, Intel and ARM .

Some system and component makers have developed their own platforms so that customers can manage and control devices based on their underlying technologies, in some cases adding systems development, connectivity management and analytics, sometimes brought in from other software vendors . Some examples here are Telit and Sierra Wireless, but this description also fits PTC ThingWorx and GE Predix, as well as SAP and Oracle .

Similarly, firms called Mobile Virtual Network Enablers provide platforms that aggregate wholesale connectivity from a number of national or regional mobile network operators, and then add device management functionality, application enablement and analytics on top of the basic connectivity platform . Platform owners in this space include Teleena, Transatel and Cubic Telecom .

There are also platforms that address specific use cases, such as Smart Cities . Examples include FIWARE, Hypercat and CityOS, or Cobra and Ocean (connected car platforms bought by Vodafone and Orange Business Services respectively) . A newly evolving dimension here is KPN’s Data Services Hub, which aggregates, analyses and distributes data from multiple sources to multiple destinations under a trust model . Its pilot project involves Dutch traffic data .

Finally, in recent times cloud-based platforms of platforms have emerged; these host collections of platforms, applications, software development tools and the like, that help developers and enterprises build working systems from component parts, The difference

Introduction

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is similar to buying a garden shed from a garden centre or buying the wood, nails, and hammer from a builders’ supply store . On the one hand, you get a shiny new shed quickly, but it might cost more and not fit your space exactly; on the other hand, the shed you build may take longer but it may cost less and fit exactly . The IoT parts of Amazon Web Service, IBM Watson and Microsoft Azure fall into this category .

State of the Market

Interest in IoT is growing rapidly, with many businesses planning to invest in the technology . In a 2016 survey of over 275 European respondents , market intelligence firm GlobalData found that improved operational efficiency is the top expected benefit of deployments – close to 75% of respondents1 cited it as a top 3 benefit expected . However, users face several obstacles, including the lack of comprehensive end to end security and the complexity of the delivery ecosystem . According to the same survey, one-third of respondents indicated that security is the biggest challenge to IoT adoption . Those that evaluated the technology but decided not to implement IoT cited cost as the top inhibitor . Vendors are responding to these challenges by launching IoT platforms, but the sheer number of these platforms available makes the decision to select one difficult . There are over 400 platforms in the market today .

1 GlobalData Survey of 1,000 Global End User IoT Deployments - 2016

Platforms offer several benefits . They are the spine onto which system developers can attach limbs that together create a functioning end to end system that allow for the collection and storage of sensor-derived data to perform useful analytics . Some “limbs” include device management, alarms, messaging, cognitive and/or machine learning, augmented or virtual reality for 3D visualization or remote machine servicing . The platform-as-a-service model provides the added benefit of making it faster to develop and deploy applications, lower costs, and enables the vendor ecosystem to evolve .

The IoT platform market is characterized by co-opetition within a highly fragmented ecosystem . Most platforms host capabilities developed by other vendors . This also makes it easier, subject to data protection laws, to share data between systems, in so doing often increasing its downstream value considerably . With so many components, interoperability is a challenge - one that vendors are looking to address with starter kits . Starter kits offer the necessary components to get an IoT deployment off the ground more easily and with greater simplicity at lower cost . While they are ideal for proofs of concept and pilot studies, users need to be wary of the costs of full-scale implementations, and to be aware that lower-cost alternative technologies are in the pipeline, so timing can be a key issue in a successful IoT implementation .

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U .K . Platform Activity

There is significant UK activity in IoT platforms . Many companies and organisations developing platforms are at an early stage of commercialising their work, though some have been established for several years – particularly those whose core activities have become part of the IoT world (such as ARM) . UK startups have been generally focusing on software platforms for cross-sector IoT data sharing . This is in part because there has been public funding for development in this area, and also because – especially at the data management and analytics level – it is where a majority of the operability issues lie . Established commercial providers of IoT platforms have tended to focus on connectivity and device management, or on

providing an enablement platform for sector-specific applications, but the UK is addressing the challenge of making use of IoT data from across sectors .

Horizontal software platforms

This area of activity is the most crucial in the era of open data, where citizens expect to be able to access public data from different sources using different devices, and to mash them to create new products and services . A good example was Transport for London (TfL) release of data related to “Boris Bike” public short

term rental bicycles; within weeks people developed dozens of mobile phone apps that showed the location of the nearest bike rack, bike availability, cycle routes, weather forecasts, traffic flows and so on . But despite the efforts of World Wide Web founder Tim Berners-Lee, this remains a work in progress worldwide . The capabilities of software platforms that support IoT ideas across verticals range widely from those that provide simple connectivity of devices to the internet, also referred to as ‘device clouds’; though those that enable the rapid creation of IoT applications through a set of tools, although generally not including the app creation environment or scripting language itself .

Some UK IoT software platform companies focus on connectivity or device management . Examples include Wireless Logic and Eseye which provide wide area connectivity for IoT devices by using multiple cellular networks, managed via a highly capable web-based platform, and Telit, which offers a number of platform services and can additionally provide the comms connections for a more end-to-end service .

Companies focusing on data acquisition, storage, analytics and messaging (e .g ., alarms) for sensors include OpenSensors, Concirrus, 1248, Flexeye, NetThings and Intamac Systems . Some of these companies have achieved success in specific markets – ranging from smart cities to home energy management – but their platforms are capable of handling data generated by multiple types of devices across multiple industries and settings .

Telit deviceWISE and IoT PortalTelit is a UK-headquartered multinational company that develops comms modules and provides IoT connectivity services and platforms. It acquired US-based IoT platform company ILS Technology in 2013. Telit’s revenues in 2015 were US$333m.

IoT Portal is a managed connectivity platform offered as a service; it uses multiple networks and device clouds, and device platforms. It is built on the deviceWISE application enablement platform.

Telit is unusual in the breadth of IoT technology it offers – from physical hardware modules to managed connectivity and device management services. It sells into vertical markets including transportation, agriculture, retail, healthcare, security/surveillance, food/drink, manufacturing, energy/buildings and automotive.

Telit is also part of the £11.3bn Smart Metering infrastructure project with the comms module transmitting data from people’s homes.

OpenSensorsOpenSensors is a small company, with eight staff, based in London. It was founded in 2013 and has developed a messaging platform for sensor and other data. The platform, which can be deployed on premises or as a hosted solution, provides device management and some data analytics as well as data storage and messaging functionality; it uses the widely adopted MQTT messaging protocol for sensor data, and the platform is built using Lisp/Clojure.

The company offers different commercial engagement models: organisations providing open data can use the platform free of charge and there are scaling charges for the use of the platform with private data. The company says it has 5,000 customers; sectors where OpenSensors is strong include smart city applications, engineering companies and building management – the platform can integrate with multiple building management systems.

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The FIWARE platform, developed with EU funding, provides an OpenStack-based cloud environment that is public and royalty free . Open standard APIs enable the development of applications for several vertical industries, mainly centred on urban environments . FIWARE is designed to allow for faster speed to market of new applications, and to make it easier to implement IoT projects and to process and analyze data and real-time media . Recognizing its growing adoption by cities, TM Forum said last November it will incorporate the FIWARE NGSI API into its Smart City API Reference Architecture, thereby exposing FIWARE to TM Forum’s diverse global ecosystem of city governments, communications service providers, technology suppliers and global enterprises . The FIWARE NGSI API provides access to contextual information about what is going on in cities in near real-time, and can be adopted by cities, service providers and technology suppliers who wish to benefit from and monetize real-time open data .

Chipsets, modules and hardware-based or virtualised appliances

Platforms that can be used to develop IoT applications and services can be based on common elements at any level of a technology stack . At a more fundamental level than the horizontal software platforms described above are platforms based on communications modules, microcontroller boards or chipsets . Combined with sensors, these make up an IoT “device” .

There are UK companies offering IoT platforms of all these kinds . ARM focuses at the most fundamental level of the microcontroller chip; Raspberry Pi at the microcontroller board (MCU, data storage and interfaces); and Telit at the level of the communications modules (of many different kinds) .

ARM and Telit have developed supporting services around their platforms in the form of portals or consoles that enable developers to build devices or services more easily . Raspberry Pi offers the open source Raspbian operating system, and a community of developers have made various tools and interfaces available for the basic Raspberry Pi platform .

Market-specific ‘platform services’

There are several UK companies that have developed more comprehensive, end-to-end platforms to help IoT application developers and service providers quickly get to market . They generally do not support applications in multiple sectors, but rather include more of the functionality required to deliver a service . Platforms that may have developed as ‘horizontal’ –capable of supporting multiple different types of application – can become aligned with a specific market and add functionality around that application . One example would be Nquiringminds’ Open City Data Platform (formerly UbiApps) . The core technology underpinning this market-specific platform has been developed over some 4-5 years, and is a platform for interoperability and exchange of data in a trusted environment .

ARM mbedCambridge-based chip design company ARM offers an IoT device platform called mbed. The platform is designed to allow IoT developers to quickly and easily create IoT devices based on ARM microcontrollers. It provides access to OS-based functionality including drivers, security and provisioning support. The company says that IoT devices for many applications can benefit from this type of development platform, and it has built an ecosystem of partners for the platform that includes chip, component and device vendors.

The platform comprises the mbed OS and Cortex-M-based microcontrollers, the mbed Device Server (handles connections and messaging from compatible devices) and a suite of developer tools and services, some provided by ARM and some by partners.

In 2015, ARM reported £968.3 million in turnover. They have approximately 3,300 employees.

One of the UK’s most successful IoT platform companies, AlertMe, was acquired by British Gas in 2015 for £44m . The interoperability platform for connected home energy devices underpins British Gas’s emerging IoT services, which include its smart meter programme and the Hive intelligent thermostat business . Other platform companies in the home energy space include BrainDrain Solutions with its Alfred Smart Home platform and service .

EVRYTHNG has a focus on retail, logistics and manufacturing; Sensye on the power and manufacturing sectors; and Nuwe focuses on the wellness and healthcare market . Intellisense is concentrating on industrial wireless sensor networks, aiming to enable retrofitting of IoT connectivity and data platform capabilities to existing installations .

Vodafone also provides platforms for industry specific IoT deployments as well as horizontal solutions . It offers mobile asset tracking, energy data management, integrated terminals with embedded connectivity, smart grid and metering, monitoring and control of assets, usage-based insurance, and several other solutions . It uses these internally to provide its customers with a service .

Selecting a Platform

Assembling the necessary parts for a successful IoT deployment is no small task . Businesses should recognize that they are not alone with it comes to this challenge . In the GlobalData survey, 53% of European businesses indicate that assembling the necessary technology ranks as a top three challenge to getting their IoT project off the ground . Building the necessary expertise to manage and benefit from the solution is another top concern for 40% of IoT users . However, with over 400 platforms on the market, user companies should be able to find something that suits them instead of building one from scratch . They key issue for users is whether to host the platform on their own IT infrastructure or in the cloud . The decision must weight factors such as access to the surrounding ecosystem of software developers, supported devices, and analytics engines and the associated costs . All parties involved and expected to benefit from the solution should be part of the conversation . Executive buy-in should be obtained early in the process, and will help identify and prioritize short term and long term benefits . Users will then need to determine what type of platform vendor to work with – whether it is one that takes a connectivity centric view, or an application development partner that promotes application enablement, or one that has a vertical industry specialization .

Your Views

The goal of this report is to provide an overview

of the platforms market and high level advice

around how to select a platform for you IoT

solution or deployment . If you have any feedback

on the ideas in this paper, please contact us on

info@iotuk .org .uk .

ON THE SAME LEVEL l AN INTRODUCTION TO IOT PLATFORMS8

BrainDrain Solutions Alfred Smart HomeBrainDrain Solutions is a London-based startup supported by Microsoft Ventures. It has developed a cloud-based platform that connects to the device clouds of multiple smart-home product vendors, and adds analytics capabilities to the basic connectivity and data messaging.

The company has built a smartphone app, focused on consumers, that enables control of connected smart-home devices. The app is provided free of charge. The company also retails bundles of devices for the home to get people started.

The real value is in the analysis and aggregation of the data collected from multiple connected devices in the home, which can be sold back to the device vendors.

They have also been supported by funding from PWC Incubator Acceleration Programme 2016and as part of the John Lewis Acceleration Programme as a finalist in 2015.

Digital Catapult, 101 Euston Road, London, NW1 2RA

IoTUK .org .uk • info@IoTUK .org .uk

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