Pariveda Solutions

APIs or Bust:Remaining Relevant for IoT

Finfest October 2014

Brian Edwards and Robert Greiner

© Pariveda Solutions. Confidential & Proprietary.1

“A solution approach for the rapidly expanding universe of connected end point devices”

table of contents

What is the “Internet of Things”?

How to Serve the “Internet of Things” – Observations and Challenges

Where is this heading? – Opportunities for Pariveda

Concluding Thoughts

Appendix

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Why should an organization be concerned about the Internet of Things?

© Pariveda Solutions. Confidential & Proprietary.

‘2008: total # of “things” connected to the internet

exceeded people on earth’

[2] – Cisco 2013

‘By 2020 there will be 50 billion things’

[2] – Cisco 2013

In 2010, 14 million people only used mobile; by 2015 there will be 788 million.

[5] – Cisco 2011

‘Square unlocked the small business credit card market, in 2 years TXN volume increase

10x and 60% of it’s clients never accepted credit cards’

[3] McKinsey 2013

“Leaders should be thinking about creative ways to monetize their assets. … companies need to evolve their business

model to prepare for more customers turning from buyers into renters.”

[3] McKinsey 2013

What should you take away from today?

APIs are an essential enabler to the Internet of Things

We should be identifying opportunities at our clients to build reusable APIs

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The “Internet of Things” (IoT) is:

To explain further, let’s look at existing examples

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Global Storefront

Remote ControlTo Life (?!)

Accessible Anywhere

ImmersiveExperiences

Real-TimeAnalysis

Smart Devices

Nest provides customers a unique thermostat which ultimately reduces energy consumption

Value Proposition:Reduce energy consumption costs up to 20% through automated learning

Device Type:At home smart thermostat

Sensors Included:Sensors for temperature & humidityMotion sensorColor digital screenWifi connector

Re-enforcement of it’s Value Proposition:- On demand energy usage report- Monthly emails w/ comparative analytics- Visually programmable thermostat calendar

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API via Internet

Disney’s investment into automated park touch points delivers a more immersive experience to visitors

Value Proposition:Improve the park experience for visitors through the use of RFID technology

Device Type:Wearable sensor device

Sensors Included:RFID BandLong and short range readers

Re-enforcement of it’s Value Proposition:- Plan trip ahead of visit, schedule key events- Enhanced park experience:

- Shorter wait time for rides- Personalized interaction experience - Tap to pay for food or merchandise- Tap to enter your room

- Access to photos after the experience7

API via Sensors

Customer UI Park PhotosRide Selection

Based on extending its concept of digital life, AT&T made a big bet by building best in class car platform

Value Proposition:AT&T Drive is an ecosystem for the car that maintain internet connectivity and provides the software platform for in car apps(released in 2015 Audi A3s)

Device Type:In car smart computer platform

Sensors Included:Car distance, temp, & mechanical sensorsSIM card interface for 4G LTEDisplay screensIn console interaction nobs and buttons

Re-enforcement of it’s Value Proposition:- Real-time traffic, weather- Synchronization of music and videos- Safety first approach that reduces driver distractions

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IoT is a significant disrupter for business and its potential is still untapped

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Decreasing Costs

New Datasets

New Device Capabilities

NewInteraction

Models

Improved AdaptabilityGreater Availability

Increasing # of network points

Increasing size of network bandwidth

New network endpoints

New options for network bandwidth

Responsive design supports different layouts

Greater availability of APIs by business

for public consumption

Commoditization of infrastructure including

cloud storage

Devices Networks Applications

The snap shot of IoT doesn’t account for improvements in the core building blocks nor does it depict all possibilities of unrealized business capabilities

table of contents

What is the “Internet of Things”?

How to Serve the “Internet of Things” – Observations and Challenges

Where is this heading? – Opportunities for Pariveda

Concluding Thoughts

Appendix

New connected devices combine sensors to provide unique consumer quality functionality

Re-enforcement of it’s Value Proposition:- Protect against some common risk factors for SIDS- Notify when room temperature is too hot or cold for baby- Notify when motion is detected- Notify when hazardous gasses or loud noises are detected

(future)11

Device Type:Connected baby nursery monitor

Sensors Included:Temperature & HumidityMotionMicrophone (future)Hazardous Gas (future)

Value Proposition:Ease burden on new parents by notifying them if the environment around their new baby becomes uncomfortable or dangerous

A typical IoT end-to-end workflow consists of four primary functions: sense, submit, analyze, and act

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Event Detected (Sense)

Reading Sent to Server (Submit)

Process Data (Analyze)

Notify Interested

Parties (Act)

All IoT architectures consist of three main pieces: the Peripheral (thing), Server (brain), and Terminal (view)

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1

2

3

4

5

Peripheral

Server

Terminal

Peripherals gather key data about their surroundings and communicate results back to a centralized server Overview:

One, hundreds, thousands, or even millions of devices work together to provide key data readings across wide geographical areas

Benefits:- Collect readings from hard-to-reach places- Remove “human” requirement- Send warnings of potential disasters as early as possible

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Examples: Environment monitoringNatural disaster detection (flood)Equipment / livestock / crop healthSecurity

Properties:Devices are largely unsupervisedNot secured. Sometimes connectedPeripherals are not servers!

The barrier to entry for building customized, high quality, IoT peripherals is lower than ever

2014

Total Cost: $91.45

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2010

Total Cost: $500.00+

Detect motion with the Raspberry PI and Python

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Submit motion sample to Server (Submit)

Detect motion (Sense)

The Server aggregates all of the data provided by the Peripherals, analyzes it, and chooses actions to take

Overview:The server consists of a highly-scalable set of services that capture data from all devices in the field and process the information in aggregate

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Properties:Single point of entry for all peripherals to “phone home”Capture data as quickly as possible (real time)Process data as soon as possible (eventually)Device + Server link pre-configured before shipping

Benefits:- Take key logic (that can change) off of devices- Accommodates devices that are “sometimes connected”- Add additional rules without touching the devices- Command Query Responsibility Segregation (CQRS)- Highly scalable

The Server analyzes data from the Peripheral and decides what action to take

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Send notification (Act)

Process all motion samples (Analyze)

Decoupling the API from the core data processing facilitates rapid data capture with minimal overhead

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Cloud platforms enable IoT applications to reach the level of scale needed to be useful to society

Overview:A massive amount of peripherals are being deployed to the “wild” every day. Enterprises need additional compute and storage resources to keep up with demand.

Examples: Auto manufacturers want to put connected devices in millions of carsA car you rented unlocks as you approach it (Zipcar)Crop / irrigation sensors on farmsFlood sensors across the globe

Properties:Compute and storage resources can grow with customer demandScale resources up/down depending on need

Benefits:- Cloud providers help create a virtuous cycle between adding

additional compute/storage capability and enterprises adding connected devices20

The Terminal is an interface to the end user, providing the result of the final action of the Server

Overview:Information from IoT devices is gathered and communicated in a way that is most useful to the end user

Examples: Text messagesPush notifications Website dashboardsEmailVoicemail

Benefits:- Give users important information ASAP- Data can be delivered in multiple formats- Information can feed into other IoT

applications- End user can filter information and adjust

notification frequencies21

Let’s take one more look at how the Peripheral, Server, and Terminal work together to enable IoT

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1

2

3

4

5

Peripheral

Server

Terminal

The barrier to entry for IoT is low, but there are still many challenges that are difficult to overcome

Power- Some sensor applications are incompatible with “outlet power”- Battery packs are inefficient and expensive- Existing wall connections (e.g. thermostat) have little power

already

Connectivity- Wi-Fi connectivity tethers device to a single location- LTE network is inefficient for most IoT applications

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Complexity- Lots of moving pieces- Hardware knowledge required- Analog to digital conversions- Poor documentation on sensors- Scale

table of contents

What is the “Internet of Things”?

How to Serve the “Internet of Things” – Observations and Challenges

Where is this heading? – Opportunities for Pariveda

Concluding Thoughts

Appendix

table of contents

What is the “Internet of Things?

How to Serve the “Internet of Things” – Observations and Challenges

Where is this heading? – Opportunities for Pariveda

Concluding Thoughts

Appendix

26

Questions

© Pariveda Solutions. Confidential & Proprietary.

APPENDIX

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About the speakers

Brian Edwards Atlanta, GA Principal

Contact at:brian.edwards@parivedasolutions.com

Robert Griener Dallas, TX Manager

Contact at:robert.griener@parivedasolutions.com

http://robertgreiner.com

@robert_greiner

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Additional resources on the Internet of Things

Product Examples:

JIBO: Promotional Video (Home)

Viv: Wired Article (Mobile)

AT&T: Connect Car (Car)

FitBit: Home Site (Personal)

Industry News:

Mark Lowenstein (Mobile Analyst): And the next big thing is…?

Further Reading on the Topic:

McKinsey: Reinventing IT to support digitization

Texas CEO Magazine: - The Internet of Things

- M2M The Internet of Things

© Pariveda Solutions. Confidential & Proprietary.

Additional Market Drivers

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IoT is 5 to 10 years away from reaching the “plateau of productivity” and at risk of inflated expectations

© Pariveda Solutions. Confidential & Proprietary. http://www.gartner.com

Additional Market Drivers

Financial accounting practices recognize capitalization for digital assets & intangible innovation “On July 31, 2013, the US bureau of Economic Analysis released, for the first time, GDP

figures categorizing research and development as fixed investment. It will join software in a new category called intellectual-property products.” – (McKinsey & Company [1])

“Assume digital leaders in your competitive zone are relentlessly expanding their intangible assets both to attack existing markets and to create new ones”; here are a few examples:

– “Amzaon.com, for instance, won share from brick-and-mortar with it’s ease-of-purchase model and it’s ability to long-tail customers”

– [Amazon.com] “It’s also using tangible assets to offer cloud-based labor services… that match freelance workers demand for their labor”

– (McKinsey & Company [1])

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Additional Market Drivers

References in the presentation are listed below:

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[1] Measuring the full impact of digital capital by Jacques Bughin and James Manyika, July 2013 – McKinsey & Company

[2] http://share.cisco.com/internet-of-things.html - Cisco Visualizations

[3] Ten IT-enabled business trends for the decade ahead, May 2013 – McKinsey Global Institute

[4] The coming era of ‘on-demand’ marketing by Peter Dahlstrom and Edelman, April 2013 – McKinsey Quarterly

[5] Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010 – 2015, February 2011 – Cisco

[6] http://www.brafton.com/news/study-90-percent-of-websites-not-ready-for-mobile-use - Feb 22, 2012 - Brafton Editorial