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© 2014 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
Nick Jones
Technologies, Architectures and Vendors for the IoT
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
How & When Will IoT Impact You?
3
Short Term(over next 3 years)
Long Term(more than 5 years)
October 2014 Gartner Research Circle Survey, n=463
,
Transform our business
20%
23%
39%
13%29%
35%
30%
2%
Significant new revenue / cost
saving
Significant new revenue / cost saving
Transform our business
Small impact
No impactDon’t know
Small impact
No impact
Don’t know
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Many Types of "Things" Enable Many Digital Business Models
Identifiable
Things
Sensing
Things
Controllable
Sensing
Things
Complex
Autonomous
Things
Sm
art T
hin
gs
Typically increasingly sophisticated technology, business models and opportunities
Complex
Webs of Things
The total economic value-add from IoT across industries will reach $1.9 trillion worldwide in 2020
The IoT will drive business innovation, especially in the area of new business methods and business moments
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Which Technologies & Capabilities Do You Need to Master the IoT?
Business strategy
IoT platforms and cloud
services
Enterprise IT integration
Ancillary apps, e.g., on mobiles
Hardware design and integration
Communications services and networking
Security / privacy
Embedded software
development
Ideas
Vision
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Wireless Networks for the IoTNo Technology or Architecture Wins
Endpoint HW cost
Bandwidth
Range
Capacity/Scalability
Battery life
Operational cost
Bluetooth < $1 LTE ≈ $50
Sigfox ≈ 10s bpsWi-Fi = 1Gbps
Sigfox ≈ $5 per yearWi-Fi = $0 3G >≈ $5 per month
ZigBee ≈ Years LTE ≈ Days / weeks
Wi-Fi ≈ 50 per APWeightless ≈ 1,000s per AP
Cellular ≈ Nationwide Bluetooth ≈ 10MLoRA ≈ 20 Km
Good Poor
Weightless ≈ $15
High level network technology characteristics, costs are illustrative and will depend on the application
LTE ≈ 10s Mbps
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
IoT Demands New Hardware and Operating Systems
Minimal embedded OS. E.g., Contiki, TinyOS, RIOT, ArdOS.
Small-footprint embedded OS.E.g., VxWorks, QNX, cut-down Linux, Galileo.
Full OS with GUI, networking and so on. E.g., Raspberry Pi Linux, Windows Embedded, QNX. May have real-time extensions.
Examples of selected processor and memory requirements for various embedded platforms.
1Gb
100Mb
10Mb
1Mb
100Kb
10Kb
1Kb
0.1Kb
16b/32b, 5Kb to 50Kb
32b, >750Kb
8b, 512b
32b/64b, >512Mb
Microkernel or bare hardware.
Increasing cost, capability, and similarity to conventional software development tools and processes.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
IoT Demands New Architectures
Enterprise Systems
Telco M2M platform
IoT middleware and platforms
Business systemsE.g., ERP, custom applications, industrial control systems, websites ...
Gateway/Aggregation
"Things"
IoTCloud
Services
External devices and apps(E.g., mobile, PC, ...)
On-device functions On-device agents
Data management & analyticsE.g., big data, data mining, analytics, machine learning….
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
IoT Platforms Can Jump-Start Solutions
Communication
Event-driven logic
Visualization
Security
Firmware management
Analytics
Data acquisition
Data storage/management
Interfaces to enterprise software
Polling
App development
Device management
Typical IoT middleware platform functions. Note that not all platforms support all functions.
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Manage the Challenges of Immature IoTTechnologies and Standards
Too many standards
Consumer privacy and trust
Security and management
Immature vendors and services
Long-lived objects
Untried business models
API and ecosystem battles
Proliferation of APIs
Interoperability
Service discovery
Bridging the Web and the IoT
Novel platforms and OSs
Limited processing power
Authenticating objects
Battery life
New user experiences
Diverse networks
Service costs
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Acquire Skills and PartnersYou Can’t Do Everything Alone
Hardware design and integration
Embedded software development
Comms. services and networking
Platforms and cloud services
IoT business vision and strategy
Enterprise IT integration
Security/Privacy assessment
Ancillary apps
New business partners
Inte
rnal
Exte
rnal
Strategic consultancy
Systems integrator
Telco/Comms. vendor
IoT platform vendor
OT specialists
Digital agency
External ecosystemsand business partners
ERP vendors
Examples of potential service partners
Strong opportunity
Weaker opportunity
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Vision and Strategy – You Can’t Select Technology Until You Have A Destination
Short term Long term
IoT improves current products and processes
E.g., automatic replenishment, reduce need for manual effort
IoT redefines your business
E.g., "things as a service"information-based business models
Ideate
Create
Engage
Offer
Monetize
Adapt
Identify new opportunities, e.g., smart products, new ecosystems
Production and operation, e.g., industrial automation for manufacturing
Interact with customers, e.g., self-supporting or self-marketing products
Products/Services/Experiences, e.g., smart fitness clothing
Create/Exchange value, e.g., application-based pricing
Learn and evolve, e.g., mine IoT data to improve products
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Find The Business Opportunity (1)
Could we exploit location?
Smart objects know where they are and how they're used.
What could we sense?
What information would change our behavior?
Could we add a user interface? E.g., using a smartphone?
E.g., to make something easier to use, updateable, or reduce
support costs.
Could we add remote control or management?
E.g., for domestic equipment or industrial machines.
Could we economically disrupt an established market?
E.g., low-cost home security sensors.
Can we create value using orchestration?
E.g., cooking sensors plus smart hob.
Source: CuteCircuit
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Can information change our revenue model?
E.g., application aware pricing, dynamic pricing based on demand.
Can we add value with real time information/analysis?
E.g., make a frying pan into a cooking assistant,
a moisture sensor into a plant-care assistant
Can we aggregate sensor information?
For the entire house, city or even country.
Could we own a new ecosystem?
Or if not which ecosystems should we partner with?
How can we exploit information in new ways?
E.g., diagnose Alzheimers from individual's movement.
Can we make "things" social?
Objects that tweet, email, SMS, talk to Facebook.
What APIs could we sell?
The API becomes the product
Find The Business Opportunity (2)
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
How Big Is The Opportunity?
Vertical specific
Business
Consumer
Automotive
2015 2016 2017 2018 2019 2020
0
15 bn
30 bn
Forecast: Internet of Things, Endpoints and Associated Services, Worldwide, 2014
Predicted Installed Base of IoT Devices
© 2014 Gartner, Inc. and/or its affiliates. All rights reserved.
Recommended Gartner Research
Forecast: Internet of Things, Endpoints and Associated Services, Worldwide, 2014 UpdatePeter Middleton and others (G00270263)
The Internet of Things Will Demand New Application Architectures, Skills and ToolsNick Jones (G00262905)
Market Guide for IOT PlatformsAlfonso Velosa and others (G00272398)
Internet of Things Survey 4Q14: Industry and Regional PerspectivesNick Jones (G00274537)
Best Practices in Exploring and Understanding the Full Scope of IoT SolutionsVarious authors (G00274014)
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