The Internet of Things

Pearson Yam

The Internet Of Things

The Internet Of Things was first proposed by Kevin Ashton, a

British technologist, in 1999, when he was Executive Director at MIT’s

Auto-ID Center, an RFID research consortium.

IoT connects various devices to a centralized network, which

analyzes information gathered to provide services resulting in

greater health, safety, and environmental benefits.

Number of Projected IoT Devices

Source: IDC, Ericsson, Goldman Sachs Global Investment Research.

What is Internet Of Things?

WearablesFitness Band Action CamerasSmart GlassesSmart Watches

FitBit

Jawbone

Nike Fuelband

Google Glass Go Pro 3+

Garmin VIRB Elite

Sony Smartwatch

Pebble

Galaxy Gear

Wearable Growth Projections

Connected AutomobilesConnected cars refer to a network of vehicles that communicate with other vehicles and infrastructure using either cellular technology (3G/4G) or 802.11p wireless connection

Waze: GPS system used to connect drivers on the road

Improvements over current services• Safety: Speed monitor, vehicle proximity radar, emergency service

contact transmitting location• Diagnostics: Vehicle Checkup• Infotainment: GPS, Media, Internet• Fleet: Real time vehicle tracking, fuel management, driver profiling

Google Car: Driverless car 3 states in the United States passed laws allowing driverless cars including: Nevada, Florida, and California

Connected Homes

• Connected homes revolve around smart appliances that interact with each other via the internet resulting in a higher standard of living with improved security, comfort, and entertainment

Expected Industry Size

Smart Home Devices: $15 billion in 2015, up from $7.8 billion in 2013

Home Security: $5.5 billion (2013) expected to grow to $7 billion (2015) just in home surveillance

Recent Acquisition: Google bought Nest for US$3.2 billion in January 2014

Smart Home Products

• Security Comfort Entertainment ProductivityDropcam Pro

ADT Corporation

Foscam

Netgear Vue Zone

Keen Home

Honeywell

Nest

NuVo

Samsung

Expected Revenues and Installed Base for Smart Thermostats Worldwide:

Expected Revenues and Installed Base for Home

Automation (combined)

Connected CitiesConnected cities are mainly facilitated by the adoption of smart technology to enable two-way communication and improved analysis, thus increasing efficiency resulting in cost savings and a greener environment.

Smart Meter Growth Projections By Region

Smart Meter Geographic Distribution (mn)

Architecture for Internet of Things

• X86• ARM• MIPS

Barriers to Adoption• Security Concerns

• Greater potential for privacy and security violations• Example: TRENDnet case

• Regulations and Compliance• Standardization

• Concerns: Expensive, Premature replacement

• Ease of Use• Should not have a steep learning curve

Barriers to Adoption

Cisco CEO John Chambers said the “Internet of Things” market could be worth $19 trillion.

Why IoT?• Count the number of phones you have• Then count the number of windows, doors,

outlets, lights, appliances, and HVAC units you have

Network Infrastructure of IoT

• Cellular• Wifi

• Wifi Direct• 802.11ac• 802.11ah• 802.11p

• Bluetooth• ZigBee• ZWave

Semiconductors

Communications TechTicker Name Price Mkt Cap (US$m)

Target Price

CSCO US Cisco Systems Inc                             

         130,731 26.76GRMN US Garmin Ltd               

                         11,202 62.30

GTO NA Gemalto NV                             

             8,854 90.36QCOM US QUALCOMM Inc               

                       134,355 86.16

RKUS US Ruckus Wireless Inc                             

                 975 15.07SSNI US Silver Spring Networks Inc               

                               612 16.00

6285 TT Wistron NeWeb Corp                             

                 838 78.67

SemiconductorsTicker Name Price Mkt Cap (US$m) Target PriceARM LN ARM Holdings PLC               

                         20,340 1023.39

ATML US Atmel Corp                             

             3,892 9.35BRCM US Broadcom Corp               

                         21,459 40.34

FSL US Freescale Semiconductor Ltd                             

             6,973 27.60INVN US InvenSense Inc               

                           2,072 24.05

MXIM US Maxim Integrated Products Inc                             

             9,604 36.59MCHP US Microchip Technology Inc               

                           9,830 51.75

6981 JP Murata Manufacturing Co Ltd                             

           21,239 10700.00005930 KS Samsung Electronics Co Ltd               

                 185,544 1644146.38

TEL US TE Connectivity Ltd                             

           25,836 67.70