the lpwan & iot value chain - cambridge wireless€¦ · cellular lpwan cloud future iot value...
TRANSCRIPT
The LPWAN & IoT Value ChainNick Hunn – WiFore Consulting
The IoT is Hard
Very Hard
LPWAN is making it more difficult
It’s confusing implementers with even more options
Just do it!
…but make it easy.
Moving from M2M to IoT
Cost of Deployment
Time
M2M IoT
LoRa vs LTE-M vs Sigfox. Who will win the battle for the IoT? http://bit.ly/whichwan
The bad news is the timescale…
Cost of Deployment
Time
M2M IoT
It may look like this.
Cutting the Cost of Hardware
$3 modules are here
The industry is already talking about a roadmap to $1.
Cutting the Cost of Connections
LPWAN Tariffs are Falling
$ 0.30 / month for 100kB on LoRa
The industry is already talking about a roadmap to $1 / year for basic data.
Cheap is not enough. It needs to be easy to pay for it.
Cutting the Cost of Provisioning
Still a work in progress.
Understand what drives each LPWAN.
Technology Pro Con
Ingenu • 10 years of practical experience• Robust
• Limited network availability
LoRa • Anyone can become an MVNO• Good traction with networks• Semtech just want to sell chips
• Anyone can become an MVNO• Too many options
NB-IoT • GSM Standard • GSM Standard• Mostly slideware at present
Sigfox • Wants to be a global ISP• Cheap• Widest network coverage
• Focuses on investor return and its IPO
Which one aligns with your business plan?
What developers want
• Low cost hardware / modules
• Simple provisioning
• Simple, upfront data plans
• All of that in a form which works globally with no reconfiguration.
The aim is to get to BILLIONS of deployed devices, not just let the IoT be a playground for makers, hobbyists and small scale deployments.
So the winning LPWAN will be the one which makes it easiest.
So, what else is in the IoT value chain?
Deployment & Physical installation
Algorithm Development
Additional Data Sourcing
Business Applications (vertical)
Business Applications (packaged)
IoT Analytics
Cloud
Device Management
Data Contracts
Comms
The IoT value stack
Project Management
Deployment
Data Cleansing & Verification
Applications& Analytics
Security & Updates
IoT Infrastructure
(DLC – DeviceLife Cycle)
Provisioning
Connectivity
Sensor & Physical
Hardware
Changing deployment costCellular
LPWAN
Relative Project Costs for Cellular and LPWAN for new Deployments
The effect of LPWAN on value
Hardware Connectivity IoT Infrastructure Applications DeploymentCellular
In the future, value is in IoT infrastructure (cloud and management) and Applications(Software and Analytics).
It is not in hardware, network infrastructure and connectivity. But it needs those to be low cost and work seamlessly to get to scale.
Beware of companies bearing platforms.
IoT Infrastructure ApplicationsLPWAN Estimates based on new projects
with 5 year working life.
LPWAN is successfully squeezing the cost out of connectivity and hardware.
Who will make money from the IoT?
The absolute number of devices excites analysts, investors, silicon suppliers and network operators.
But that’s not where the value is.
50 Billion20 Billion
1.5 Trillion
DataAnalytics
The number of devices is just a means to an end. The value of the IoT is in the volume of data.
Companies that understand middleware and analytics and can apply the cloud to the IoT will be the real winners.
1990 2000 2010 2020 2030
Cellular LPWAN Cloud
Future IoT value is in the Cloud
• Cellular Operators have assumed the role of custodians of M2M and the IoT since the early 1990s.
• LPWAN is disrupting that position, moving value from connectivity to applications.• The evolution of new payment methods may be as important for the IoT as new
communications technology.• This provides a window for new entrants to disrupt and take control of the value
of the IoT. • LPWAN needs to concentrate on making this easy. And IoT companies need to
concentrate of installing nodes and making money.
Challenges
The IoT is ultimately about generating data and analysing data. Everything else is subservient.
But…
• Everybody wants to be a specialist.
• Everyone thinks their technology is the best.
• Everyone wants their own API.
• Too few people understand the whole picture.
Until that changes…
The IoT will be Hard
Nick HunnCTO
mob: +44 7768 890 148
email: [email protected]
web: www.wifore.com
Creative Connectivity Blog: www.nickhunn.com
LinkedIn: www.linkedin.com/in/nickhunn
Questions?