welcome to the internet of things
TRANSCRIPT
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Welcome to the Internet of Things, by the way privacy is dead…
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Agenda
• What is the Internet of Things (IoT)
• Business models & potential market size
• Drivers for IoT
• Security and Privacy
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Objects are becoming embedded with sensors and gaining the ability to operate & communicate independent of human intervention.
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The resulting information networks promise to create new business models and disrupt existing business models.
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Characteristics
Distributed
Peer to peer
API based
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Connected devices are transformed from a single purchase product into a service that generates recurring income.
IoT value is not in the devices, but in new services related to
the devices.
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New business models
• Open models
• Collaboration & loose confederations
• Agile, change ready organisations
• Restructured supply chain
• Mergers & acquisitions
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Ubiquitous connectivity
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Cisco says US$14 trillion IoE value
1) asset utilization (reduced costs) of $2.5 trillion
2) employee productivity (greater labor efficiencies) of $2.5 trillion
3) supply chain and logistics (eliminating waste) of $2.7 trillion
4) customer experience (addition of more customers) of $3.7 trillion
5) innovation (reducing time to market) of $3.0 trillion
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CISCO White paper: Embracing the Internet of Everything for your Share of $14 trillion
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Market signals - 2014
• Google bought Nest for US$3.2B Jan 2014
• Google & Nest bought Dropcam for US$555M
• Samsung bought SmartThings for US$200M
• Vodafone bought Cobra Automotive for £115M
• Zebra Technologies bought a unit of Motorola for US$3.45B
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Market signals - 2014
• global survey of 1400 software developers
• 17.1% working on IoT apps
• 23% expect to begin work in next 6 months
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Evans Data Corporation Survey July 2014
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Driven by convergence
• Ubiquitous comms networks
• Mobile connectivity
• 3D printing
• Sensor networks
• Big data > drawing useful inferences
• Peer to peer networks
• Cloud computing
• Artificial intelligence
• Commodity sensors
• Software defined networks
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Fuelled by app ecosystem
“Between 2008 and 2017, Google Play and Apple’s App Store will be responsible for a mind-blowing number of mobile app downloads: 350 billion.” Feb 2015 © Kate Carruthers | katecarruthers.com 13
Source: http://www.mobilemarketingwatch.com/the-decade-of-350-billion-app-downloads-26932/
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Allflex DNA tags
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Industries
Financial services
Automotive
Technology
Entertainment
Retail
Healthcare
Hospitality
Industrial
Power & utilities
Energy & mining
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Driverless trucks the next big thing in WA's Pilbara, ABC 25 Apr 2014, 3:13pm
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Source: http://readwrite.com/2014/04/30/connected-home-hackers-stop-yelling-at-babies-foscam#feed=/tag/internet-of-things&awesm=~oEe6yipkTkz40o
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Last August, a hacker infiltrated a wireless camera owned by the Gilbert family, living in Houston, Texas. The stranger took control of the unit and used it to scream obscenities at a two-year-old toddler. Fortunately, the hearing-impaired child didn’t have her cochlear implant turned on at the time, otherwise she would have heard the stranger yelling, “Wake up Allyson, you little slut!”
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Bloomberg, Data Breaches in the US, at 4 Sep 2014
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• 3rd party HVAC firm attack vector
• Security software disabled
• PCI DSS didn’t save them
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Bloomberg, Oct 2014
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JP Morgan
• Sarbanes-Oxley Act (SOX)
• Payment Card Industry Data Security Standard (PCI DSS)
• Gramm-Leach-Bliley Act (GLB) Act
• Electronic Fund Transfer Act, Regulation E (EFTA)
• Free and Secure Trade Program (FAST)
• Fair and Accurate Credit Transaction Act (FACTA), including Red Flags Rule
• Federal Rules of Civil Procedure (FRCP)
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Traditional approach to perimeter security
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Bot-herders can launch DDoS attacks from dryers, refrigerators, other Internet of Things devices
Network World Sep 2014
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Feb 2015 © Kate Carruthers | katecarruthers.com 26 Proofpoint Uncovers Internet of Things (IoT) Cyberattack, January 16, 2014
“The global attack campaign involved more than 750,000 malicious email communications coming from more than 100,000 everyday consumer gadgets …”
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“… such as home-networking routers, connected multi-media centers, televisions and at least one refrigerator”
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It’s “often impossible to patch the software or upgrade the components to the latest version.”
Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014
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“Often, the complete source code isn’t available. Yes, they’ll have the source code to Linux and any other open-source components.”
Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014
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“But many of the device drivers and other components are just ‘binary blobs’ - no source code at all.”
Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014
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“That’s the most pernicious part of the problem: No one can possibly patch code that’s just binary.”
Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014
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Privacy
“If it was dead, they wouldn't be fighting so hard to kill it, all over the world.”
- Peter Watts
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http://www.abc.net.au/news/2014-11-04/berg-the-jig-is-up-on-data-retention-plans/5864432
http://www.theguardian.com/uk-news/2015/jan/22/snoopers-charter-changed-version-pass-before-election
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Privacy
Privacy by Design:
embedding privacy into IT, business practices and networked infrastructures right from the outset
https://www.privacybydesign.ca
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Consumer privacy
• Pervasive computing
• Personalisation
• Customisation
• Convenience
• Lack of understanding
• Meaningful consent
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Oops we spied on your wifi
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http://www.cnet.com/news/google-oops-we-spied-on-your-wi-fi/
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Time, Sep 2014
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Spy TVs…
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http://www.tomsguide.com/us/lg-tvs-spying-confirmation,news-17887.html
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“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”- Amara's law
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Kate Carruthers
UNSW Australia
Sydney
Twitter @kcarruthers
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