The dream of making money with IoT, AI and Blockchain
Have you ever think about how could you make money with the Internet of Things (IoT) or Artificial Intelligence (AI) and of course with Blockchain? What would happen if you could use the three of them in a new business model?. Apparently, Success, Success and Success.
In the next sections I provide information of some business models implemented with these three technologies.
IoT Business Models
As IoT moves past its infancy, certain trends and economic realities are becoming clear. Perhaps the most significant of those is the realisation that traditional hardware business models just don’t work in IoT. Take a look at “The top 5 most successful IoT business models” that have emerged as particularly effective applications for IoT.
If any of you is building an IoT product, this article ” IoT Business Models For Monetizing Your IoT Product” show how to make money with IoT.
Zack Supalla, the founder and CEO of Particle, an Internet of Things (IoT) startup, suggest “6 ways to make money in IoT”.
Finally, in “How IoT is Spawning Better Business Models” we can read three ways companies like Rolls Royce, Peloton, MTailor or STYR Lab was rethinking their business model and have created revolution in the marketplace.
Blockchain Business Models
It sounds repetitive, but yes "Blockchain technology may disrupt the existing business models”. The authors´ s findings concerning the implications of blockchain technology for business models are summarised in the following picture.
Do you think that blockchain will likely to cut into big-players’ revenues? Then, this article: “New Blockchain-Based Business Models Set to Disrupt Facebook and Others”, is for you.
If you are ambitious and you are planning to build a viable business on blockchain, then read “Building an International Business Model on Blockchain”.
I am also an advocate of the coming era of decentralization (at least in my most optimistic version) and Blockchain is a step more to create value when the End of All Corporate Business Models will arrive.
AI Business Models
Companies from all industries, of all shapes and sizes are thus faced with an important set of questions: Which AI business models and applications can I use ? And what technologies and infrastructures are required?.
It seems that we all are convinced that artificial intelligence is now the most important general-purpose technology in the world that can drive changes at existing business models. Not surprised then, that AI is Revolutionizing Business Models. The “data trap” strategy, that in venture capitalist Matt Turck’s words consists of offering (often for free) products that can initialize a data network effect. In addition, the user experience and the design are becoming tangibly relevant for AI, and this creates friction in early stage companies with limited resources to be allocated between engineers, business, and design.
New Business models with the intersection of IoT, AI and Blockchain
With IoT we are connecting the Digital to the Physical world. Connected objects offers a host of new opportunities for companies, especially in terms of creating new services. The amount of data generated by the billions of connected objects will be the perfect complementary feed to many AI applications. Finally, blockchain technology could be used to secure the ‘internet of things’ and create smart contracts in a decentralized infrastructure that boost the democratization of technology and creation of sustainable communities.
You must remember that new business models that include IoT, AI and blockchain need among other characteristics: Volume and Scalability. Volume of devices, Volume of data, Volume of customers, volume of developers and powerful ecosystems to escalate.
Good luck in your search and implementation of your new business model.
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In part two of a three part series, Leonard Lee and Dean Freeman of neXt Curve discuss how IoT enables new business models with Rob Tiffany, CTO of Hitachi Lumada.
As the Global PM and CTO for Lumada, it's been a rewarding journey to create a portable Industrial #IoT platform that could run at the Edge on a factory floor, in a train, inside a data center or in any hyper-scale public cloud.
This composable platform (use just what you need for your specific use case) combined with our revolutionary Asset Avatars (Digital Twins) that bring Lumada to life, is the very definition of "Visionary." I also want to send a big congratulations to our Visionary friends at PTC (ThingWorx) and SAP (Leonardo).
Thanks to all the Hitachi collaborators, colleagues and friends I was lucky enough to take this journey with.
Get a free copy of the Gartner report here:
Today, retail stores are constantly focusing on leveraging the emerging technologies like cloud, mobile, RFID, beacons, etc., to provide connected retail services and better shopping experience to customers. For example, store owners are integrating sensors in the key zones of retail stores and connecting them to cloud through a gateway that enables real-time data analysis related to products, sales, and customers from these sensors.
Interestingly, IoT and connected technologies are taking the retail industry by storm. 96% retailers are ready to make changes required to implement the Internet of Things in their stores
IoT in retail can help retailers improve store operations, enhance customer experience and drive more conversions. Moreover, IoT can help retailers solve day-to-day problems such as tracking energy utilization, managing in-floor navigation, detecting crowded areas, reducing check out timings, managing product shelves, preventing theft, monitoring goods, etc. Let us how IoT helps in few of these scenarios.
In-Store Navigation with IoT-enabled Devices
Identifying in-store navigation is one of the common problems in retail stores. Here, IoT devices with integrated technologies like Bluetooth, Wi-Fi, magnetic positions and augmented reality, etc., can facilitate in-store navigation to help customers navigate through the store and find the desired product.
It gives customers a multichannel shopping experience through digitization of physical assets. In-store navigation also helps increase the path to purchase rate before a product stock outs.
Bluetooth low energy (BLE) beacons are small sensors placed strategically throughout the retail store. These sensors are equipped with Bluetooth smart technology and compatible with smartphones. This BLE beacon device sends out continuous radio signals to nearby smart devices in the range. Smart devices in that range catch the signal and trigger events such as availability of a new product or launch of a new offer. Further, that device sends a unique ID to cloud server. The server checks that ID and responds back, through which communication between signal and smart device is established using a unique ID. Almost all customers nowadays carry smart devices like mobile phones and tablets. If BLE is used, customers can be notified on their smartphone with personalized coupons and deals as soon as they enter the store.
The above solution improves customer’s in-store experience and also increases footfall ratio. It also facilitates quick product search and increases conversion rates while generating a powerful shopping environment that can help enhance product offerings and store layouts.
Energy Management with Smart Devices
Energy consumption is a major cost consuming factor for the retail businesses, be it in refrigeration, lighting, heating, air conditioning, etc. Using these energy sources efficiently can bring cost saving of up to 20 percent per year. IoT-enabled smart devices can help resolve problems of energy management and saving.
There are several IoT-based platforms that can log, monitor and beep alarms or alert the in-store personnel about temperature, energy usage, heating, gas leakage, electricity breakdowns, etc., with the help of integrated sensors. Using these smart energy management devices, store owners can directly interact with the controllers of refrigerators and retrieve prioritized information with the help of sensors.
Every year, a large retail chain attributes nearly $2B of loss to wasted or spoiled food, with issues relating to its legacy refrigeration system, accounting for approximately 15% of this total—or $300 mm. In case of emergency situations like powercut or excessive heating, alarms from the controllers of these refrigeration systems reach the operations team only after 5 or 6 hours, and there is no mechanism to provide warnings before these situations occur. Here smart refrigeration IoT device can provide cloud-based temperature monitoring solution to notify the controllers about emergencies using temperature sensors and mesh networking technology.
Theft Prevention with Geo-Fencing
The crime of shoplifting in the retail industry is increasing day-by-day, because retailers fail to provide sufficient attention to shoplifters. According to National Association for Shoplifting Prevention (NASP), more than $25 million worth of merchandise gets stolen from retail shops each day. Adding more to retailers’ loss is retail shrinkage, which includes shoplifting, employe theft, paperwork error, vendor fraud and many more.
To overcome the problem of shoplifting and retail shrinkage, retailers can use Geo-fencing technique.
Geo-fencing relies on the global positioning system or a radio frequency identification (RFID) tag that allows a store operator to create a virtual barrier or zone around specific locations in retail shops. When a customer tries to move product from the specific location, an alert is triggered and a message is sent to the store in-charge. Geo-fencing enabled in IoT devices or beacons can help retailers in a number of ways; from keeping goods safe, tracking customers and employee movements, managing company-owned resources to minimizing incidents of theft and loss.
Customer Engagement with Sensor-Enabled Shopping Carts
The sensor-enabled shopping cart is a technique adopted by most of the retail merchandisers. These shopping carts help retailers grow their business in every aspect by helping them visualize shopper’s flows by category/subcategory, understand the shopping pattern, analyze the dwell path, and enable faster checkout.
This smart cart design involves sensors with connectivity protocols around the cart, which have the ability to track the movement of the wheels and match up with the distance the cart has traveled. It helps retailers with an accurate data of shopping carts with the inside-store journey. The data from this cart can be sent to the server or to cloud for further analysis.
After years of evangelization waiting for the promises of the Internet of Things (IoT) to come true it seems that we are finally close to reaching the trough of disillusionment phase, we begin to forget all the hype generated so far and focus on reality. A harsh reality that involves selling IoT and not continue selling smoke anymore
THE TIME TO SELL IoT IS NOW
The sale of IoT is perhaps more complex than the sale of other disruptive technologies such as Big Data, Cloud or AI and maybe as complex as Blockchain today. In the article “ Welcome to the first “Selling IoT” Master Class!” I commented how it should be the evolution of M2M Vendors for sell IoT and how should be the evolution of IT Technology Vendors for sell IoT. However, many of these companies still have difficulty in forming and finding good sellers of IoT
The truth is that nowadays it does not make any sense to sell IoT as a technology. Enterprise buyers only want to buy solutions that provide measurable business outcomes while, in the other side, many IoT Vendors only want to sell their portfolio of products and services that have been categorized under the umbrella of IoT, either as quickly as possible or at the lowest possible cost.
During last 5 years, I have been analysing how IoT companies sell their products and services. Some of my customers (Start-ups, Device vendors, Telco Operators, Platform vendors, Distributors, Industry Applications, System Integrators) requested me to create IoT sales material to train their sales team about how to sell their IoT solutions and services. And sometimes I also helped Head Hunters or customers searching for IoT sales experts
Based on this varied experience I have launched this year a new service: “IoT Sales Workshops” to help companies train their internal teams in how to sell IoT. Here are some of the lessons I learned
- There is a time for act as an IoT Sales generalist and a time for act as an IoT Specialist.
- You need to adapt the IoT storytelling based on your audience.
- Being an IoT expert is not synonymous with being successful in selling IoT.
- You need to show how companies can get more out of IoT by solving a specific business problem.
- Make it easy for the customer to see the benefits of your IoT product or IoT service and what is the value you are adding.
- Given the complexity and specialization of IoT by vertical, explain companies the need to focus more closely at business cases, on their IoT business model as well as the ROI over three to four years before jumping into technology.
- You need to be patient because IoT selling is not easy and takes time align strategy and business needs with the IoT products and services you are selling.
- Build a strong ecosystem and make easy the customer the adoption of end to end IoT solution collaborating with your partners.
- Train your IoT Business and Technical experts to get better at telling stories. Design a new marketing and sales communications playbook. Keep it simple. Build your narrative from the foundation up – one idea at a time.
- If you want an IoT sales expert you need to pay for it (not expect miracles from external sales agents working on commission base).
- IoT Sales is a full-time job. You will not have time to other enterprise activities.
- Selling IoT to large enterprises is a teamwork process.
- Be Persistent. Do not expect big deals soon.
- Be Passionate, Be Ambitious, Be Disruptive to sell IoT.
I do not consider myself an IoT sales expert. And of course, neither a superman of sales. In fact, I have shied away from classifying myself in the role of a pure salesperson even though over time I have given a weight and value to this work that once seemed derogatory to me.
Sell IoT is not easy. In a few years we will have forgotten of the word IoT and we will be selling new hypes, but in the mean time you need to be prepared for disillusionment moments, long sales cycles and a lot of work with sometimes poor results. However, I do not know if will be 2020, suddenly if you persevere you probably will be awarded as the best IoT sales expert and you finally will earn a lot of money.
Be Persistent, Be Passionate, Be Ambitious, Be Disruptive to sell IoT
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According to Cisco, currently there are 10 billion things – phones, PCs, things – connected to the Internet. That is merely 600ths of one percent of the actual devices and things that exist right now. There are over one trillion devices out there right this very minute that are not talking to the Internet – but soon enough they will be.
Kevin Ashton, cofounder and executive director of the Auto-ID Center at MIT, first men-tioned the Internet of Things in a presentation he made to Procter & Gamble in 1999. Here’s how Ashton explains the potential of the Internet of Things:
“Today computers -- and, therefore, the Internet -- are almost wholly dependent on hu-man beings for information. Nearly all of the roughly 50 petabytes (a petabyte is 1,024 terabytes) of data available on the Internet were first captured and created by hu-man beings by typing, pressing a record button, taking a digital picture or scanning a bar code.
The problem is, people have limited time, attention and accuracy -- all of which means they are not very good at capturing data about things in the real world. If we had com-puters that knew everything there was to know about things -- using data they gathered without any help from us -- we would be able to track and count everything and greatly reduce waste, loss and cost. We would know when things needed replacing, repairing or recalling and whether they were fresh or past their best.”
The broadband divide could prove to be a real hampering force to the Internet of Things movement that is gaining speed today. Cloud, mobility, big data are all con-verging and making a seamless network, but the success of this convergence de-pends heavily on the ability to actually move and access the data. And considering that millions of additional devices (some of which are just sensors) will enter the equation means its time for further investment and quick. According to the CIO Sur-vey, organizations are in a prime position to innovate and make significant changes.
CONNECT ANY THING OVER ANY NETWORK
The Internet of Things (IoT) is a computing concept that describes a future where everyday physical objects will be connected to the Internet and be able to identify themselves to other devices. It is significant because an object that can represent itself digitally becomes something greater than the object by itself. No longer does the object relate just to you, but is now connected to surrounding objects and database data. When many objects act in unison, they are known as having "ambient intelligence."
Business Model focusing more on Data
In other words, as the physical and digital worlds integrate more closely with each other, and the number of connected devices is predicted to reach 25 billion by 2018, the IoT will enhance and evolve our ability to manage and process information . It’s a more context-oriented world, because there is better data. First thing in a new technology, people do all the obvious things that look like the old market, but more efficiently. In the Internet, GNN had web ads like old newspaper ads. Later there was Google search, which was a different way of doing advertising, by focusing more on data. Now we’ve got social search, social networks. The business model moves to something that is more native to the technology. Uber is an early IoT company. Other businesses will pop up that do more native things. Much of what is available are components that require highly specialized knowledge and skills to make use of. The Internet of Things and its partner in crime, big data, can also impact society at a much higher level. By effecting better decision making through a better understanding of data, we can tackle socioeconomic issues like poverty and disease, education, and quality of life around the world. You know that soccer ball that generates electricity (an awesome invention, btw)? The IoT is the next exponent up.
IoT focus on what matters most to you
The Internet of Things is not a futuristic, aspirational technology trend. It’s here today in the devices, sensors, cloud infrastructure, and data and business intelligence tools you are already using. Rather than thinking about the Internet of Things in terms of everything–such as billions of devices and sensors–focus on what matters most to you. Instead of thinking about the massive amount of data being produced, think about how one piece of data can provide value to your business. The DIY Marker community has its Arduino and Rasberry Pi boards to create toy educational experiments but even those require a bit of study to make sense of. The only project that I know of that seems to be pointing in a direction of making IoT available as a platform for anyone to create with is the TOI, thingsoninternet.biz and their VIPER platform. It is a set of components that are open so available from many sources and they have made Python available as the programming language. Python was create to be an easy programming language to learn but until VIPER it was not suitable for embedded devices. Look for this interesting product on kickstarter and use it to point to a direction for the rest of the industry.
That said, the notion of “The Internet of things” is something unstoppable. More and more devices will become Internet enabled, not less. What needs to be addressed is rock-solid security (logical and physical) combined with privacy laws and policies. At the same time, a comprehensive set of government acts, laws, and regulatory frameworks and technical standards needs to be developed to harness the potential of new models of interactions among the machines and people.
IoT Evolution or IoT Revolution
During all these years evangelizing on the Internet of Things (IoT), I have been explaining to customers, partners and friends that IoT can positively change the way we do business and the way we live our lives. I have been asked if IoT is a new revolution in our society, or it is just one more step in the technological evolution of the he digital revolution. Today, the debate continues but whether evolution or revolution, The Internet of Things is here to stay.
If you have read AIG´s whitepaper entitled “Internet of Things: Evolution or Revolution?” you learned IoT, from its origins, to its applications in business, the risks associated with its inevitable arrival and how with the IoT is coming bringing dramatic changes. In the whitepaper we discover that in spite IoT is often presented as a revolution that is changing the face of society or the industry in a profound manner. It is an evolution that has its origins in technologies and functionalities developed by visionary automation suppliers more than 15 years ago
I definitely think it’s an evolution
The development of the Internet of Things is a bold move. IoT is not just a leap from the Internet. The Internet of Things brings with it an evolutionary force that we rarely see in technology.
It is important not scare the most conservative enterprises. It is not about ripping out current automation systems to replace them with new technologies. End users will resist rapid and radical change because of the increased risk of downtime and associated costs.
I think that this debate should be framed in a more general question. What Age period are we living?
The Connected Age or the Age of Sensorization
I consider the start of the Connected Age when the Internet of Things term was coined by Kevin Ashton executive director of the Auto-ID Center as the title of a presentation he made at Procter & Gamble (P&G) in 1999. Probably Kevin envisioned that the move to sensorization will transform every industry in the world. In the Age of Sensorization, it’s possible to make more accurate and quantifiable assessments using real time sensor based information.
The main driving force behind the Connected Age is data – data that can be collected, data that can be analysed, data can be shared and data can be used to improve many service offerings.
Data is the new oil in this AgeThe global sensorization is driving new ideas and thoughts that will ultimately drive innovation in our personal, business and working lives. Sensor´s data is opening up new opportunities, driving new business models and taking innovation to new levelsNo doubt that sensors’ data is a valuable commodity. The European Commission has proposed to impose a tax on the revenue of digital companies based on their users’ location, on the grounds that “a significant part of the value of a business is created where the users are based and data is collected and processed.”
We are still living in the Connected Age. I expect this Age ends in 2025, no because there will not be more things to connect but because is when most of things will become intelligent and start controlled by robotsThe Robotic Age or the Age of Artificial Intelligence
Reading Genesis of AI: The First Hype Cycle, I rediscovered how Artificial Intelligence (AI) was born and evotution till now. But it was after I read Your Data Is Crucial to a Robotic Age. Shouldn’t You Be Paid for It? I realised maybe I was wrong and we already living the final years of the Connected Age and we are entering before 2025 , not without a certain fear, the Robotic Age.
According to IDC: ”By 2019, 40% of digital transformation initiatives – and 100% of IoT initiatives – will be supported by AI capabilities.
Qualcomm envision a world where edge AI makes devices, machines, automobiles, and things much more intelligent, simplifying and enriching our daily lives.
AI has emerged as the most exciting capability in today’s technology landscape. It’s potential is rich in large, complex organizations that generate massive amounts of data that can be fed into AI systems.
Data is the crucial ingredient of the AI revolution. We can envision that AI -driven companies will represent the future of broader parts of the economy and we may be headed for a world where labor’s share falls dramatically from its current roughly 70 percent to something closer to 20 to 30. At the same time the number of robots will increase and be part of the society.
Robotics and Artificial Intelligence have reached a crucial point in their evolution. A robot is no longer just a mechanical device capable of interacting with its environment and carrying out an assigned task. At present, the main research laboratories all over the world are developing and implementing in sophisticated robots technical, practical and even philosophical tools. Nevertheless, we can not forget that there are still problems in the land of AI.
Companies need to move quickly to embrace AI so that they can support the burgeoning Internet of Things (IoT) and deliver the kinds of services customers are demanding.
Finally, if your company is thinking about Build or Buy Artificial Intelligence, take a look at this article.
The Cognitive Age
The cognitive revolution was a period during the 1950s-1960s when cognitive psychology replaced Behaviourism and Psychoanalysis as the main approach in psychological fields. Increasing focus was placed on observable behaviours in conjunction with brain activity and structureFor those of you who believe the mind the centre of all things, David Brooks, the New York Times columnist, wrote two editorials that point to wider transformations that are shaping the world in which we liveWe could consider the start of Cognitive Age when Facebook abandoned an experiment after two artificially intelligent programs appeared to be chatting to each other in a strange language only they understood. The two chatbots came to create their own changes to English that made it easier for them to work – but which remained mysterious to the human.
Are we sure Facebook shut down Its Artificial Intelligence Program? Facebook not the only company or government running secrete AI programs. Are you scaredThere are many myths about Cognitive. This article pusblished by Deloitte the Consulting company help dispel five of the most persistent myths.
- Myth 1: Cognitive is all about automation
- Myth 2: Cognitive kills jobs
- Myth 3: The financial benefits are still remote
- Myth 4: AI is overhyped and bound to disappoint
- Myth 5: Cognitive technology is just for ‘moonshots’
We need to start thinking how to prepare ourselves and our business for the Cognitive Age.” As I explain in “Bring Your Own Cyber Human (BYOCH) – Part 1: Augmented humans” we are in the path to being cyber humans. To live in the Cognitive Age, I encourage companies to invest in how to enhance our senses and to increase our intelligence to compete and win over robots.
The Connected Age is a fact. ARM is predicting 1 trillion IoT devices will be built until 2035. For those who think that the IoT is a revolution, not be worried because we are just simply in an evolutionary process.
With the introduction of AI and machine learning, enterprises will be able to embark on projects never thought possible before. The Robotics Age is going to be a great challenge for humanity. The fear of being inferior to our creation, not being able to control them, to compete with machines for a job, to have to obey them will really mean the beginning of a revolution.
What does AI mean for the future?. What will be the implications and the risks? Will AI really understand humans?. With the current skills humanity will be in inferiority to face the cognitive systems that will populate Cognitive Age. That is why I encourage governments, private laboratories and researchers to work on Augmented Humans projects if we do not want to be slaves to our uncontrolled inventions.
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"One day I'm in my cubicle, Steve shows up with someone I've never met before. He asks me, 'Guy, what do you think of this company Knoware?'. I said, 'Well Steve, it is a mediocre company, mediocre product, lot of drilling practises, doesn't make full use of graphics, just basic mediocrity, nothing that strategic for us.' He says to me, 'I want you to meet the CEO of Knoware.' So that's what was like working for Steve Jobs. ‘You always have to be on the ball.
A lot of water has flowed under the bridge since then. The flow of information has also changed the way we live in today’s world.
Your mark on the world begins…
Every morning when we read a newspaper having out so much information we came to know the latest happening in the world (of course in details), yeah you are right even the internet edition also. This is just a very basic example of IoT. All our Railways, Air and even sea networks are connected with the help of IoT. We can take the example of banking. It is very easy to transact any amount of money from part of the world to other with help of e-commerce. We can purchase anything online with help of debit and credit cards. This has made our lives more and more simple. People are working on the internet without really having to go outside to their workplace. IoT has changed the whole scenario. Companies can share technologies online. Even the doctors can guide the other doctors while operating on a patient with the help of Information Technology. A whole new world is coming our way. Technology is allowing us to reimagine our future transportation system. Advances in connected automation, navigation, communication, robotics, and smart cities—coupled with a surge in transportation-related data—will dramatically change how we travel and deliver goods and services. Automation in the field of transportation is everywhere. Have we as humans become an afterthought? We order service on our smartphones, we manoeuvre around in increasingly automated vehicles, we ride in driverless transport, and we will increasingly find ourselves sharing our highways and byways with drones and other unmanned craft.
1) SaaS & Bring Your Own Device
Global movements such as BYOD and SaaS, where consumerisation of IT and mobility are drastically changing the capabilities of employees and their expectations of a workspace. Building your own apps is the ideal way to mitigate the risk of BYOD and SaaS. An organisation can provide those that only allow the user to access what they need. The enter-prise’s concern is the data; the employee’s concern is the device. In the IT security world, we care about both. Now that most of the organizations started adopting BYOD in some form, it is not just their personal iPads and laptops that users are bringing into the office, they are also using the consumer apps available in their personal device for work purpose which leads to the next wave in mobility. In the very near future BYOD won’t be a ‘trend’ but a norm no one would think twice about.
2) The Emergence of Big Data
"Big data" alluringly holds out the promise of competitive advantages to companies that can use it to unlock secrets about customers, website usage and other key elements of their business operations. Big Data now stream from daily life: from phones and credit cards and televisions and computers; from the infrastructure of cities; from sensor-equipped buildings, trains, buses, planes, bridges, and factories. It's estimated that 43 trillion gigabytes of new data will be created by the year 2020.
3) Cloud computing: How it's transforming the role of IT
Market conditions require significant change and many organizations are using this driver as an opportunity to simplify their applications and data through rationalization and technology innovations such as Cloud Computing. Cloud is defined as any cloud service where consumers are able to access software applications over the internet. The applications are hosted in “the cloud” and can be used for a wide range of tasks for both individuals and organisations. Google, Twitter, Facebook and Flickr are all examples of SaaS, with users able to access the services via any internet enabled device. Cloud is also the fastest growing because it keeps pace with emerging and future business models than on-premise systems, the majority of which were designed for business models of the past.
The next step, moving towards virtual workspaces, can make organisations far more agile but only if those responsible for the IT (and in effect, the productivity) of the employees understand the relationship employees have with their devices and how these change throughout the day based on their personal preference – be it a smartphone for the train, a tablet device for a client meeting or a laptop for remote working at home.
4) Millions of sensitive IT services exposed to the Internet
All the more the Internet is becoming more and more important for nearly everybody as it is one of the newest and most forward-looking media and surely "the" medium of the future. These advances—in fields such as robotics, A.I., computing, synthetic biology, 3D printing, medicine, and nanomaterials—are making it possible for small teams to do what was once possible only for governments and large corporations: solve the grand challenges in education, water, food, shelter, health, and security. Technology is, today, moving faster than ever. Advances that took decades, sometime centuries, such as the development of telephones, airplanes, and the first computers, now happen in years.
The macro trends that have changed the playing field in the past 10 years have been cloud, mobility, Big Data, and social networking. An even bigger trend ahead will be the Internet of Things that will extend information technology into every aspect of our lives. IT has become more agile and responsive to the needs of the business. While cloud was considered hype just a few years ago, the cloud in its many forms, private, public, hybrid, is transforming IT into a service model. IT leaders who embraced these changes have been able to do more with less and have proven their strategic value.
According to Steve, the iPhone was originally a tablet project. Partway through the R&D process, he said, “Hmm, we can make a phone out of this.” After the launch, many people rewrote history and said that the purpose of the iPhone was to reinvent the future of telephony.
Today, technology is, moving faster than ever. The ubiquity of network connectivity and the proliferation of smart devices (such as sensors, signs, phones, tablets, lights, and drones) have created platforms upon which every enterprise can innovate. Since the past few years we have also seen countless innovations that improve our daily lives. From Internet technology to finance to genetics and beyond - we have seen technologies such as mobile, social media, smartphones, big data, predictive analytics, and cloud, among others are fundamentally different than the preceding IT-based technologies. And advances in science and technology have changed the way we communicate, our thought processes, exchange views, understand the way we relate to one another and think about what it means to be a real Innovative change maker. Perhaps one day you too can be a part of reinventing something which is new, timely, relevant and useful.
Raj Kosaraju specializes on Cloud Computing, Data Warehousing, Business Intelligence, Supply Chain Management, Big Data & IoT.
Cloud computing allows companies to store and manage data over cloud platforms, providing scalability in the delivery of applications and software as a service. Cloud computing also allows data transfer and storage through the internet or with a direct link that enables uninterrupted data transfer between devices, applications, and cloud.
Role of Cloud Computing in IoT:
We know that the Internet of Things (sensors, machines, and devices) generate a huge amount of data per second. Cloud computing helps in the storage and analysis of this data so that enterprise can get the maximum benefit of an IoT infrastructure. IoT solution should connect and allow communication between things, people, and process, and cloud computing plays a very important role in this collaboration to create a high visibility.
IoT is just not restricted to functions of systems connectivity, data gathering, storage, and analytics alone. It helps in modernizing the operations by connecting the legacy and smart devices, machines to the internet, and reducing the barriers between IT and OT teams with a unified view of the systems and data. With cloud computing, organizations do not have to deploy extensive hardware, configure and manage networks & infrastructure in IoT deployments. Cloud computing also enables enterprises to scale up the infrastructure, depending on their needs, without setting up an additional hardware and infrastructure. This not only helps speed up the development process, but can also cut down on development costs. Enterprises won’t have to spend money to purchase and provision servers and other infrastructure since they only pay for the consumed resources.
How Cloud Services Benefit an IoT Ecosystem:
There are several cloud services and platforms that play different roles in the IoT ecosystem. Some of the platforms also come with inbuilt capabilities like machine learning, business intelligence tools, and SQL query engines to perform complex analytics. Let us understand how these cloud services and platforms benefit an IoT ecosystem.
Cloud Platform for Device Lifecycle Management:
Enterprises create applications and software through cloud services (SaaS), which can connect devices and enable device registration, on-boarding, remote device updates, and remote device diagnosis in minimal time with a reduction in the operational and support costs. Cloud introduces DevOps within the IoT ecosystem, which helps organizations automate many processes remotely. As more and more devices get connected, the challenges with data security, control, and management become critical. Cloud services enable IoT remote device lifecycle management that plays a key role in enabling a 360-degree data view of the device infrastructure. Certain cloud providers offer multiple IoT device lifecycle tools that can ease the update and setup of firmware and software over the air (FOTA).
Application Enablement Cloud Platform:
Cloud enables application development with portability and interoperability, across the network of different cloud setups. In other words, these are the intercloud benefits that businesses can take advantage of. Intercloud solutions possess SDKs (Software development Kits) on which enterprises can create their application and software without worrying about the backend processes.
Enterprises can run and update applications remotely, for example, Cisco is providing the application enablement platform for application hosting, update, and deployment through the cloud. Enterprises can move their applications between cloud and fog nodes to host the applications and analyze & monitor the data near the critical systems.
Many cloud service providers are focusing on building the cloud environment on the basis of OCF standards so that it can interoperate smoothly with the majority of applications, appliances, and platforms, that will allow D-to-D (device-to-device) M-to-M (machine-to-machine) communication. Open Connectivity Foundation (OCF) standardization makes sure that the devices can securely connect and communicate in any cloud environment, which brings in the interoperability to the connected world.
Device shadowing or digital twins is another benefit that an enterprise can avail through cloud services. Developers can create a backup of the running applications and devices in the cloud to make the whole IoT system highly available for faults and failure events. Moreover, they can access these applications and device statistics when the system is offline. Organizations can also easily set up the virtual servers, launch a database, and create applications and software to help run their IoT solution.
Types of Cloud Computing Models for IoT Solutions
There are three types of cloud computing models for different types of connected environment that are being commonly offered by cloud service providers. Let’s have a look:
- It offers virtual servers and storage to the enterprises. Basically, it enables the access to the networking components like computers, data storage, network connections, load balancers, and bandwidth.
- Increasing critical data within the organization lead to the security vulnerabilities and IaaS can help in distributing the critical data at different locations virtually (or can be physical) for improving the security.
- It allows companies to create software and applications from the tools and libraries provided by the cloud service providers.
- It removes the basic needs of managing hardware and operating systems and allows enterprises to focus more on the deployment and management of the software or applications.
- It reduces the worry of maintaining the operating system, capacity planning, and any other heavy loads required for running an application.
- It provides a complete software or application that is run and maintained only by the cloud service provider.
- Users just have to worry about the use of the product, they don’t have to bother about the underlying process of development and maintenance. Best examples of SaaS applications are social media platforms and email services.
Apart from these, cloud service providers are now offering IoT as a Service (IoTaaS) that has been reducing the hardware and software development efforts in IoT deployment.
Example of implementing cloud computing set-up in a connected-factory:
There are different sensors installed at various locations of an industrial plant, which are continuously gathering the data from machines and devices. This data is important to be analyzed in real time with proper analytics tools so that the faults and failures can be resolved in minimal time, which is the core purpose of an industrial IoT ecosystem. Cloud computing helps by storing all the data from thousands of sensors (IoT) and applying the needed rule engines and analytics algorithms to provide the expected outcomes of those data points.
Now, the query is which cloud computing model is good for industrial plants? The answer cannot be specific, as every cloud computing model has its own applications according to the computing requirement.
Leading Cloud Services for IoT Deployments
Many enterprises prefer to have their own cloud platform, within the premises, for security and faster data access, but this might not be a cost-effective way as there are many cloud service providers who are providing the cloud services on demands, and enterprises just have to pay for the services which they use.
At present, Amazon Web Services (AWS) and Microsoft Azure are the leading cloud service providers. Let’s see the type of cloud platforms and services AWS and Microsoft Azure provide for IoT implementations
AWS IoT Services
AWS has come up with specific IoT services such as AWS Greengrass, AWS lambda, AWS Kinesis, AWS IoT Core, and a few other cloud computing services, which can help in IoT developments.
AWS IoT Core is a managed cloud platform that allows devices to connect easily and securely with cloud and other devices. It can connect to billions of devices, store their data, and transmit messages to edge devices, securely.
AWS Greengrass is the best example of an edge analytics setup. It enables local compute, messaging, data caching, sync, and ML inference capabilities for connected devices in a secure way. Greengrass ensures quick response of IoT devices during local events, which reduces the cost of transmitting IoT data to the cloud.
AWS Kinesis enables data streaming that can continuously capture the data in terabytes per hour.
AWS Lambda is a compute service that lets you run code without provisioning or managing servers. It executes code only when required and scales automatically from a few requests per day to thousands per second.
AWS DynamoDB is a fast, reliable, and flexible NoSQL database service that allows enterprises to have millisecond latency in data processing, enabling quick response from applications. It can scale up automatically due to its throughput capacity, which makes it perfect for gaming, mobile, ad tech, IoT, and many other applications.
AWS Shield is a managed Distributed Denial of Service (DDoS) protection service that safeguards applications running on AWS. It provides automatic inline mitigation and always-on detection that minimize the application downtime and latency. This is why there is no need to engage AWS Support to benefit from DDoS protection. There are two tiers of AWS Shield — Standard and Advanced.
Microsoft Azure IoT Services:
Microsoft has come up with many initiatives in the field of IoT, providing industrial automation solutions, predictive maintenance, and remote device monitoring, etc. It is also providing services like Azure service bus, IoT hub, blob storage, stream analytics, and many more.
Azure Stream Analytics provides real-time analytics on the data generated from the IoT devices with the help of the Azure IoT Hub and Azure IoT Suite. Azure stream analytics is a part of the Azure IoT Edge that allows developers to analyze the data in real-time and closer to devices, to unleash the full value of the device generated data.
Azure IoT Hub establishes bidirectional communication between billions of IoT devices and cloud. It analyzes the device-to-cloud data to understand the state of the device and takes actions accordingly. In cloud-to-device messages, it reliably sends commands and notifications to connected devices and tracks message delivery with acknowledgment receipts. It authenticates devices with individual identities and credentials that help in maintaining the integrity of the system.
Azure Service Bus is a great example of cloud messaging as a service (MaaS). It enables on-premises communication between devices and cloud in the offline conditions also. It establishes a reliable and secure connection to the cloud, and ability to see and monitor activities. Apart from this, it protects applications from temporary spikes of traffic and distributes messages to multiple independent back-end-systems.
Azure Security Centre is a unified security management and threat protection service. It monitors security across on-premises and cloud workload, blocks malicious activities, advanced analytics system to detect threats and attacks, and also can fix vulnerabilities before any damages.
AWS and Microsoft Azure are providing a robust IoT solution to enterprises. An IoT Gateway can collaborate with multiple cloud service providers to maximize the advantages of the cloud solutions for IoT systems.
As the Internet of Things slides into Gartner’s Trough of Disillusionment, organizations all over the world are asking why they should continue their IoT journey.
Rob is here to remind you.
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