SlideShare a Scribd company logo
1 of 26
Download to read offline
Monetizing The Internet Of Things:
A Convenient How Not To Guide
Paul R Brody
Prepared for Semicon West
July 2015
The future is already here,
it’s just not evenly distributed.
William Gibson
© 2015 Ernst & Young LLP Images creative commons, flickr
We started making devices digital because they’re cheaper
that way
VS
3
© 2015 Ernst & Young LLP Image from technologizer.com, Panasonic
The result was a world of smart things that weren’t
especially clever at all
4
© 2015 Ernst & Young LLP
Things have kept getting smarter, but we don’t seem to be
very happy with how they’re turning out.
5
➡ Lots of smart appliances
now available
➡ Very few stand-out
success stories
© 2015 Ernst & Young LLP
Three substantial problems have delayed the arrival of a
more useful Internet of Things
6
Failing the jobs to be done test
No meaningful ROI
No credible level of security or privacy
© 2015 Ernst & Young LLP
The biggest failure in the Internet has been the failure to
focus and improve upon the “job to be done” by the device
7
Features of a new $1,700 “Smart”
Washing Machine:
•Start, stop, and check status remotely
•Notification when laundry cycle is complete
•Assign tasks to other family members
•Remind you to do the washing
© 2015 Ernst & Young LLP
ROI is important, and costs are too high while returns are
far too low to justify replacing existing capital equipment
8
Case Examples: ROI on Smart Sensor Use Cases
$0
$75
$150
$225
$300
Maintenance Energy
Tag Cost
Return
Maintenance • 5% annual chance of mechanical problem
• Average truck roll costs $100, 1.5 per repair
• Smart systems eliminate some repairs and
reduce average truck rolls total to 1.0/repair
• $25 tag cost on BOM, 10% annual ROI
Energy • $250 for a smart thermostat at home
• Average of $141/year in savings reported for
Nest thermostat users
• 56% annual ROI on average
© 2015 Ernst & Young LLP
As for security and privacy: it’s a disaster and there are no
participants left who have any credibility in this space
9
•Security is an after-
thought in most smart
product design today
•The foundations of many
of these designs are dated
to begin with
•Feature bloat adds bugs
and security risks.
Show me the money.
Jerry McGuire
© 2015 Ernst & Young LLP
Two technological revolutions are emerging that will
reshape how we design and build smart devices
11
The Block Chain (underlying
technology for BitCoin):
Cheap system-on-chip computers
designed for Android Phones:
© 2015 Ernst & Young LLP
The first transformation in computing involves hardware.
12
Embedded
Computing on
Devices
Modern Era
General Purpose
Computing
Everywhere
Post-Modern Era
© 2015 Ernst & Young LLP
It’s now cheaper to make things smart than it is to make
them stupid.
13
Powerful System on Chip costs are dropping so quickly, they are
converging with traditional embedded chip costs:
Non-Recurring Engineering Cost for
Customized Embedded Chips
Shift to SOC with software
customization here
Illustrative: As SOCs drop in price, customization will shift to software, not hardware
Time + + + +
Embedded Unit Cost
Average Embedded Cost
Average SOC Cost
At higher end of the market, this shift has
already started:
These high powered SOC chips can run the full
Block-Chain stack including doing transaction
processing (mining).
Apple Lightning HDMI Adapter
• Full ARM SoC with
over 256MB of RAM
• Boots OS X Core
when plugged in
• Conducts software
conversion of MPEG
to HDMI in real time
© 2015 Ernst & Young LLP
By 2020, billions of ordinary devices will in fact have far
more computing power on them than is actually necessary
14
Global Installed Base of Computing Devices

Millions of Units in 2015
1
10
100
1,000
10,000
AWS Servers PCs SmartPhones
2,222
890
5.6
Global Installed Base of Computing Storage

Estimated Petabytes in 2014-5
1
100
10,000
1,000,000
Dropbox Facebook Microsoft AWS PC Storage
890,000
900
300300
40
Installed base and company data center sizes are estimates based on limited public information. PC & Smartphone shipments from
statistia.com. Storage data estimated assuming 1TB per PC.
© 2015 Ernst & Young LLP
Alongside the revolution in hardware, a revolution in
software is brewing at the same time: BitCoin
15
Secure
Transparent
Open
© 2015 Ernst & Young LLP
BitCoin is the re-invention of the most basic workload in the
world of modern computing: transaction processing.
16
The Block Chain
CICS in 1966
© 2015 Ernst & Young LLP
As a transaction processing engines go, the BlockChain is a
terrible design and horribly inefficient.
17
Slow Redundant Wasteful
© 2015 Ernst & Young LLP
Why use the Block Chain? In a word: trust. 

You don’t need it.
18
© 2015 Ernst & Young LLP
The core functionality of BitCoin, known as the BlockChain
is now being re-purposed into all kinds of applications.
19
Application Development Environments
Marketplace Infrastructure
Systems of Record
Distributed Social Networks
© 2015 Ernst & Young LLP
Modern Era
At the intersection of these two trends is a new world order.
20
Expensive
Computing
Post-Modern Era
Free
Computing
High Trust
Environment
Centralized
Internet
Low Trust
Environment
Distributed
Internet
© 2015 Ernst & Young LLP
There are two key take-aways from the intersection of these
technologies
21
1 No business case is required to make devices smart
2
The Cloud applications required to integrate & manage
these devices are, if properly architected, free
© 2015 Ernst & Young LLP
Smart devices will connect assets to marketplaces and help
us make better use of what we’ve already got.
22
Typical Productive Asset Utilization Levels
0%
25%
50%
75%
100%
Law
nm
ow
er
D
ishw
asher
C
ar
O
ffice
Taxi
Airplane
60%
50%
20%
4%4%1%
In commercial real estate alone, the
opportunity is enormous:
50% Properties used IoT systems to
allocate and manage space
instead of long term leases.
Average lease prices based on
time & location would plunge.-42%
In savings for consumers and
businesses leasing real estate
space.
$128
Billion
Case study data from the IBM Institute for Business Value, “Economy of Things” report.
Slowly going forward ‘cause
we can’t find reverse.
The Firm
© 2015 Ernst & Young LLP
As with each new wave of technology, we should expect a
10X increase in device volume
24
$0
$125,000
$250,000
$375,000
$500,000
Mainframe Mini PC Phone Thing
$50$500$5,000$50,000
$500,000
>> Thousands
>> Tens of Thousands
>> Hundreds of Millions
>> Billions
© 2015 Ernst & Young LLP
The rise of IoT will very likely upset the balance in the
semiconductor industry
25
Era of embedded computing is over.
The new data center is everywhere.
Security through transparency.
Entirely new customer base.
Life cycles are going to get longer.
@pbrody
linkedin.com/in/pbrody
paul.brody@ey.com
26

More Related Content

What's hot

TRENDS IN INFORMATION TECHNOLOGY
TRENDS IN INFORMATION TECHNOLOGYTRENDS IN INFORMATION TECHNOLOGY
TRENDS IN INFORMATION TECHNOLOGYDhrutim25
 
Can you afford (not) moving to the cloud
Can you afford (not) moving to the cloudCan you afford (not) moving to the cloud
Can you afford (not) moving to the cloudebuc
 
Better Software—Faster: Ten Best Practices from Sequoia's Microservices Summit
Better Software—Faster: Ten Best Practices from Sequoia's Microservices SummitBetter Software—Faster: Ten Best Practices from Sequoia's Microservices Summit
Better Software—Faster: Ten Best Practices from Sequoia's Microservices SummitSequoia Capital
 
2015 Phoenix Mobile Festival Keynote
2015 Phoenix Mobile Festival Keynote2015 Phoenix Mobile Festival Keynote
2015 Phoenix Mobile Festival KeynoteGuy Bieber
 
inside IOT BCX 2015v3
inside IOT BCX 2015v3inside IOT BCX 2015v3
inside IOT BCX 2015v3Andy Brauer
 
IS_Associates_IoT_Pres_Miller_Broadcom
IS_Associates_IoT_Pres_Miller_BroadcomIS_Associates_IoT_Pres_Miller_Broadcom
IS_Associates_IoT_Pres_Miller_BroadcomWilliam H. Miller, Jr.
 
Intercom Engineers Careers 23-03-2019
Intercom Engineers Careers 23-03-2019Intercom Engineers Careers 23-03-2019
Intercom Engineers Careers 23-03-2019Abdel Moneim Emad
 
GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015
GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015
GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015GWAVA
 
Gartner: Top 10 Technology Trends 2015
Gartner: Top 10 Technology Trends 2015Gartner: Top 10 Technology Trends 2015
Gartner: Top 10 Technology Trends 2015Den Reymer
 
Trends in Information Technology - Sep 2008
Trends in Information Technology - Sep 2008Trends in Information Technology - Sep 2008
Trends in Information Technology - Sep 2008Senthilkumar Rajappan
 
Highlights from IBM Edge2015, z Systems.
Highlights from IBM Edge2015, z Systems.Highlights from IBM Edge2015, z Systems.
Highlights from IBM Edge2015, z Systems.IBM z Systems
 
The Interconnection Factor
The Interconnection FactorThe Interconnection Factor
The Interconnection FactorEquinix
 
IT Innovation @ The Internet of Things
IT Innovation @ The Internet of ThingsIT Innovation @ The Internet of Things
IT Innovation @ The Internet of ThingsKim Escherich
 
Welcome to the future - IBM Cognitive Cloud in Frankfurt
Welcome to the future - IBM Cognitive Cloud in FrankfurtWelcome to the future - IBM Cognitive Cloud in Frankfurt
Welcome to the future - IBM Cognitive Cloud in FrankfurtAleksandar Francuz
 
Practical Internet of Things Now -- What it is and six requirements for your ...
Practical Internet of Things Now -- What it is and six requirements for your ...Practical Internet of Things Now -- What it is and six requirements for your ...
Practical Internet of Things Now -- What it is and six requirements for your ...ReidCarlberg
 
The Age of the IOT & Digital Business
The Age of the IOT & Digital BusinessThe Age of the IOT & Digital Business
The Age of the IOT & Digital BusinessMagnolia
 
The nexus of Social, Mobile, Cloud and Big Data Analytics
The nexus of Social, Mobile, Cloud and Big Data AnalyticsThe nexus of Social, Mobile, Cloud and Big Data Analytics
The nexus of Social, Mobile, Cloud and Big Data AnalyticsE-Government Center Moldova
 
Third Industrial Revolution
Third Industrial RevolutionThird Industrial Revolution
Third Industrial RevolutionRobin Teigland
 
Data cloudasia2018 final
Data cloudasia2018 finalData cloudasia2018 final
Data cloudasia2018 finalWilliam Barney
 

What's hot (20)

TRENDS IN INFORMATION TECHNOLOGY
TRENDS IN INFORMATION TECHNOLOGYTRENDS IN INFORMATION TECHNOLOGY
TRENDS IN INFORMATION TECHNOLOGY
 
Can you afford (not) moving to the cloud
Can you afford (not) moving to the cloudCan you afford (not) moving to the cloud
Can you afford (not) moving to the cloud
 
Better Software—Faster: Ten Best Practices from Sequoia's Microservices Summit
Better Software—Faster: Ten Best Practices from Sequoia's Microservices SummitBetter Software—Faster: Ten Best Practices from Sequoia's Microservices Summit
Better Software—Faster: Ten Best Practices from Sequoia's Microservices Summit
 
2015 Phoenix Mobile Festival Keynote
2015 Phoenix Mobile Festival Keynote2015 Phoenix Mobile Festival Keynote
2015 Phoenix Mobile Festival Keynote
 
inside IOT BCX 2015v3
inside IOT BCX 2015v3inside IOT BCX 2015v3
inside IOT BCX 2015v3
 
IS_Associates_IoT_Pres_Miller_Broadcom
IS_Associates_IoT_Pres_Miller_BroadcomIS_Associates_IoT_Pres_Miller_Broadcom
IS_Associates_IoT_Pres_Miller_Broadcom
 
Intercom Engineers Careers 23-03-2019
Intercom Engineers Careers 23-03-2019Intercom Engineers Careers 23-03-2019
Intercom Engineers Careers 23-03-2019
 
GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015
GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015
GWAVACon 2015: BlackBerry - Top Turnaround Story in 2015
 
Gartner: Top 10 Technology Trends 2015
Gartner: Top 10 Technology Trends 2015Gartner: Top 10 Technology Trends 2015
Gartner: Top 10 Technology Trends 2015
 
Trends in Information Technology - Sep 2008
Trends in Information Technology - Sep 2008Trends in Information Technology - Sep 2008
Trends in Information Technology - Sep 2008
 
Highlights from IBM Edge2015, z Systems.
Highlights from IBM Edge2015, z Systems.Highlights from IBM Edge2015, z Systems.
Highlights from IBM Edge2015, z Systems.
 
The Interconnection Factor
The Interconnection FactorThe Interconnection Factor
The Interconnection Factor
 
IT Innovation @ The Internet of Things
IT Innovation @ The Internet of ThingsIT Innovation @ The Internet of Things
IT Innovation @ The Internet of Things
 
The new era of smart
The new era of smart The new era of smart
The new era of smart
 
Welcome to the future - IBM Cognitive Cloud in Frankfurt
Welcome to the future - IBM Cognitive Cloud in FrankfurtWelcome to the future - IBM Cognitive Cloud in Frankfurt
Welcome to the future - IBM Cognitive Cloud in Frankfurt
 
Practical Internet of Things Now -- What it is and six requirements for your ...
Practical Internet of Things Now -- What it is and six requirements for your ...Practical Internet of Things Now -- What it is and six requirements for your ...
Practical Internet of Things Now -- What it is and six requirements for your ...
 
The Age of the IOT & Digital Business
The Age of the IOT & Digital BusinessThe Age of the IOT & Digital Business
The Age of the IOT & Digital Business
 
The nexus of Social, Mobile, Cloud and Big Data Analytics
The nexus of Social, Mobile, Cloud and Big Data AnalyticsThe nexus of Social, Mobile, Cloud and Big Data Analytics
The nexus of Social, Mobile, Cloud and Big Data Analytics
 
Third Industrial Revolution
Third Industrial RevolutionThird Industrial Revolution
Third Industrial Revolution
 
Data cloudasia2018 final
Data cloudasia2018 finalData cloudasia2018 final
Data cloudasia2018 final
 

Similar to Semicon west monetizing the internet of things

Saving The Internet of Things: Presentation to Facebook
Saving The Internet of Things: Presentation to FacebookSaving The Internet of Things: Presentation to Facebook
Saving The Internet of Things: Presentation to FacebookPaul Brody
 
5G Edge Computing IoT Presentation
5G Edge Computing IoT Presentation 5G Edge Computing IoT Presentation
5G Edge Computing IoT Presentation Rick Stomphorst
 
2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...
2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...
2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...Thorsten Schroeer
 
IoT And Inevitable Decentralization of The Internet
IoT And Inevitable Decentralization of The InternetIoT And Inevitable Decentralization of The Internet
IoT And Inevitable Decentralization of The InternetPaul Brody
 
2016 iot summit_guy_bieber9
2016 iot summit_guy_bieber92016 iot summit_guy_bieber9
2016 iot summit_guy_bieber9Guy Bieber
 
You Sold Your First 1,000 Devices? Now What?
You Sold Your First 1,000 Devices? Now What?You Sold Your First 1,000 Devices? Now What?
You Sold Your First 1,000 Devices? Now What?Aeris
 
When Computers are Everywhere, Will we have superpowers.
When Computers are Everywhere, Will we have superpowers.When Computers are Everywhere, Will we have superpowers.
When Computers are Everywhere, Will we have superpowers.Guy Bieber
 
Defining the IoT Stack
Defining the IoT StackDefining the IoT Stack
Defining the IoT StackPubNub
 
Middle East IoT Workshop
Middle East IoT WorkshopMiddle East IoT Workshop
Middle East IoT WorkshopHaider Iqbal
 
Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011
Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011
Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011Intel IT Center
 
Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...
Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...
Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...Cloud Native Day Tel Aviv
 
Network Centric Cloud: Competing in a IT World with a Telecom Approach
Network Centric Cloud: Competing in a IT World with a Telecom ApproachNetwork Centric Cloud: Competing in a IT World with a Telecom Approach
Network Centric Cloud: Competing in a IT World with a Telecom ApproachEduardo Mendez Polo
 
Simon Saneback ITEM 2018
Simon Saneback ITEM 2018Simon Saneback ITEM 2018
Simon Saneback ITEM 2018ITEM
 
Internet of Things and IBM
Internet of Things and IBMInternet of Things and IBM
Internet of Things and IBMArrow ECS UK
 
Storage as a service v4 eng
Storage as a service v4 engStorage as a service v4 eng
Storage as a service v4 engDell EMC
 
Moving enterprise IT to the cloud
Moving enterprise IT to the cloudMoving enterprise IT to the cloud
Moving enterprise IT to the cloudJan Wiersma
 
Wireless Global Congress: 2020 is not that far away
Wireless Global Congress:  2020 is not that far awayWireless Global Congress:  2020 is not that far away
Wireless Global Congress: 2020 is not that far awayRob Van Den Dam
 
Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)
Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)
Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)IoT613
 

Similar to Semicon west monetizing the internet of things (20)

Saving The Internet of Things: Presentation to Facebook
Saving The Internet of Things: Presentation to FacebookSaving The Internet of Things: Presentation to Facebook
Saving The Internet of Things: Presentation to Facebook
 
5G Edge Computing IoT Presentation
5G Edge Computing IoT Presentation 5G Edge Computing IoT Presentation
5G Edge Computing IoT Presentation
 
2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...
2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...
2015 11-03 - ibm overview for electronics manufacturing services thorsten sch...
 
IoT And Inevitable Decentralization of The Internet
IoT And Inevitable Decentralization of The InternetIoT And Inevitable Decentralization of The Internet
IoT And Inevitable Decentralization of The Internet
 
2016 iot summit_guy_bieber9
2016 iot summit_guy_bieber92016 iot summit_guy_bieber9
2016 iot summit_guy_bieber9
 
You Sold Your First 1,000 Devices? Now What?
You Sold Your First 1,000 Devices? Now What?You Sold Your First 1,000 Devices? Now What?
You Sold Your First 1,000 Devices? Now What?
 
When Computers are Everywhere, Will we have superpowers.
When Computers are Everywhere, Will we have superpowers.When Computers are Everywhere, Will we have superpowers.
When Computers are Everywhere, Will we have superpowers.
 
Smart & Safer Cities by Richard Knight
Smart & Safer Cities by Richard KnightSmart & Safer Cities by Richard Knight
Smart & Safer Cities by Richard Knight
 
Defining the IoT Stack
Defining the IoT StackDefining the IoT Stack
Defining the IoT Stack
 
Middle East IoT Workshop
Middle East IoT WorkshopMiddle East IoT Workshop
Middle East IoT Workshop
 
Ibm iot overview
Ibm   iot overviewIbm   iot overview
Ibm iot overview
 
Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011
Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011
Cloud 2015: Connecting the Next Billion - Intel Keynote @ HP Discover 2011
 
Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...
Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...
Cloud and Edge: price, performance and privacy considerations in IOT, by Tsvi...
 
Network Centric Cloud: Competing in a IT World with a Telecom Approach
Network Centric Cloud: Competing in a IT World with a Telecom ApproachNetwork Centric Cloud: Competing in a IT World with a Telecom Approach
Network Centric Cloud: Competing in a IT World with a Telecom Approach
 
Simon Saneback ITEM 2018
Simon Saneback ITEM 2018Simon Saneback ITEM 2018
Simon Saneback ITEM 2018
 
Internet of Things and IBM
Internet of Things and IBMInternet of Things and IBM
Internet of Things and IBM
 
Storage as a service v4 eng
Storage as a service v4 engStorage as a service v4 eng
Storage as a service v4 eng
 
Moving enterprise IT to the cloud
Moving enterprise IT to the cloudMoving enterprise IT to the cloud
Moving enterprise IT to the cloud
 
Wireless Global Congress: 2020 is not that far away
Wireless Global Congress:  2020 is not that far awayWireless Global Congress:  2020 is not that far away
Wireless Global Congress: 2020 is not that far away
 
Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)
Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)
Innovation and the Internet of Things - Emeka Nwafor (Wind River Systems)
 

More from Paul Brody

Block chain 101 what it is, why it matters
Block chain 101  what it is, why it mattersBlock chain 101  what it is, why it matters
Block chain 101 what it is, why it mattersPaul Brody
 
Intimate Things: How Wearables Are Changing The Internet of Things
Intimate Things: How Wearables Are Changing The Internet of ThingsIntimate Things: How Wearables Are Changing The Internet of Things
Intimate Things: How Wearables Are Changing The Internet of ThingsPaul Brody
 
Capturing Value from The Next 10 Billion Devices
Capturing Value from The Next 10 Billion DevicesCapturing Value from The Next 10 Billion Devices
Capturing Value from The Next 10 Billion DevicesPaul Brody
 
Towards A More Sustainable Business Model for the Internet of Things
Towards A More Sustainable Business Model for the Internet of ThingsTowards A More Sustainable Business Model for the Internet of Things
Towards A More Sustainable Business Model for the Internet of ThingsPaul Brody
 
软件定义的供应链 - The Software Defined Supply Chain - Chinese Version
软件定义的供应链 - The Software Defined Supply Chain - Chinese Version软件定义的供应链 - The Software Defined Supply Chain - Chinese Version
软件定义的供应链 - The Software Defined Supply Chain - Chinese VersionPaul Brody
 
The Software Defined Supply Chain - Full Study Results
The Software Defined Supply Chain - Full Study ResultsThe Software Defined Supply Chain - Full Study Results
The Software Defined Supply Chain - Full Study ResultsPaul Brody
 
The software defined supply chain
The software defined supply chainThe software defined supply chain
The software defined supply chainPaul Brody
 
Photizo & IBM Viewpoint on B2B Transformation
Photizo & IBM Viewpoint on B2B TransformationPhotizo & IBM Viewpoint on B2B Transformation
Photizo & IBM Viewpoint on B2B TransformationPaul Brody
 
Lessons on Industry Disruption from the Electronics Industry
Lessons on Industry Disruption from the Electronics IndustryLessons on Industry Disruption from the Electronics Industry
Lessons on Industry Disruption from the Electronics IndustryPaul Brody
 
Making Your Electronics Business Smarter
Making Your Electronics Business SmarterMaking Your Electronics Business Smarter
Making Your Electronics Business SmarterPaul Brody
 
Solar Industry Roundtable Interview
Solar Industry Roundtable InterviewSolar Industry Roundtable Interview
Solar Industry Roundtable InterviewPaul Brody
 
PVSEC - Business Forum - Keynote Speech - Paul Brody
PVSEC - Business Forum - Keynote Speech - Paul BrodyPVSEC - Business Forum - Keynote Speech - Paul Brody
PVSEC - Business Forum - Keynote Speech - Paul BrodyPaul Brody
 
SOA Enabled S&OP Solution Whitepaper
SOA Enabled S&OP Solution WhitepaperSOA Enabled S&OP Solution Whitepaper
SOA Enabled S&OP Solution WhitepaperPaul Brody
 
Rebooting The Electronics Industry After The Economic Crisis
Rebooting The Electronics Industry After The Economic CrisisRebooting The Electronics Industry After The Economic Crisis
Rebooting The Electronics Industry After The Economic CrisisPaul Brody
 
Product Styling - The New Competitive Differentiator
Product Styling - The New Competitive DifferentiatorProduct Styling - The New Competitive Differentiator
Product Styling - The New Competitive DifferentiatorPaul Brody
 
Electronics Supply Chain Association Keynote Address 2007
Electronics Supply Chain Association Keynote Address 2007Electronics Supply Chain Association Keynote Address 2007
Electronics Supply Chain Association Keynote Address 2007Paul Brody
 
Altogether now ibm collaboration
Altogether now   ibm collaborationAltogether now   ibm collaboration
Altogether now ibm collaborationPaul Brody
 
12 simple ideas for a greener supply chain
12 simple ideas for a greener supply chain12 simple ideas for a greener supply chain
12 simple ideas for a greener supply chainPaul Brody
 
Can Big Companies Become Successful Venture Capitalists
Can Big Companies Become Successful Venture CapitalistsCan Big Companies Become Successful Venture Capitalists
Can Big Companies Become Successful Venture CapitalistsPaul Brody
 
Smart Pipes & Smart Devices
Smart Pipes & Smart DevicesSmart Pipes & Smart Devices
Smart Pipes & Smart DevicesPaul Brody
 

More from Paul Brody (20)

Block chain 101 what it is, why it matters
Block chain 101  what it is, why it mattersBlock chain 101  what it is, why it matters
Block chain 101 what it is, why it matters
 
Intimate Things: How Wearables Are Changing The Internet of Things
Intimate Things: How Wearables Are Changing The Internet of ThingsIntimate Things: How Wearables Are Changing The Internet of Things
Intimate Things: How Wearables Are Changing The Internet of Things
 
Capturing Value from The Next 10 Billion Devices
Capturing Value from The Next 10 Billion DevicesCapturing Value from The Next 10 Billion Devices
Capturing Value from The Next 10 Billion Devices
 
Towards A More Sustainable Business Model for the Internet of Things
Towards A More Sustainable Business Model for the Internet of ThingsTowards A More Sustainable Business Model for the Internet of Things
Towards A More Sustainable Business Model for the Internet of Things
 
软件定义的供应链 - The Software Defined Supply Chain - Chinese Version
软件定义的供应链 - The Software Defined Supply Chain - Chinese Version软件定义的供应链 - The Software Defined Supply Chain - Chinese Version
软件定义的供应链 - The Software Defined Supply Chain - Chinese Version
 
The Software Defined Supply Chain - Full Study Results
The Software Defined Supply Chain - Full Study ResultsThe Software Defined Supply Chain - Full Study Results
The Software Defined Supply Chain - Full Study Results
 
The software defined supply chain
The software defined supply chainThe software defined supply chain
The software defined supply chain
 
Photizo & IBM Viewpoint on B2B Transformation
Photizo & IBM Viewpoint on B2B TransformationPhotizo & IBM Viewpoint on B2B Transformation
Photizo & IBM Viewpoint on B2B Transformation
 
Lessons on Industry Disruption from the Electronics Industry
Lessons on Industry Disruption from the Electronics IndustryLessons on Industry Disruption from the Electronics Industry
Lessons on Industry Disruption from the Electronics Industry
 
Making Your Electronics Business Smarter
Making Your Electronics Business SmarterMaking Your Electronics Business Smarter
Making Your Electronics Business Smarter
 
Solar Industry Roundtable Interview
Solar Industry Roundtable InterviewSolar Industry Roundtable Interview
Solar Industry Roundtable Interview
 
PVSEC - Business Forum - Keynote Speech - Paul Brody
PVSEC - Business Forum - Keynote Speech - Paul BrodyPVSEC - Business Forum - Keynote Speech - Paul Brody
PVSEC - Business Forum - Keynote Speech - Paul Brody
 
SOA Enabled S&OP Solution Whitepaper
SOA Enabled S&OP Solution WhitepaperSOA Enabled S&OP Solution Whitepaper
SOA Enabled S&OP Solution Whitepaper
 
Rebooting The Electronics Industry After The Economic Crisis
Rebooting The Electronics Industry After The Economic CrisisRebooting The Electronics Industry After The Economic Crisis
Rebooting The Electronics Industry After The Economic Crisis
 
Product Styling - The New Competitive Differentiator
Product Styling - The New Competitive DifferentiatorProduct Styling - The New Competitive Differentiator
Product Styling - The New Competitive Differentiator
 
Electronics Supply Chain Association Keynote Address 2007
Electronics Supply Chain Association Keynote Address 2007Electronics Supply Chain Association Keynote Address 2007
Electronics Supply Chain Association Keynote Address 2007
 
Altogether now ibm collaboration
Altogether now   ibm collaborationAltogether now   ibm collaboration
Altogether now ibm collaboration
 
12 simple ideas for a greener supply chain
12 simple ideas for a greener supply chain12 simple ideas for a greener supply chain
12 simple ideas for a greener supply chain
 
Can Big Companies Become Successful Venture Capitalists
Can Big Companies Become Successful Venture CapitalistsCan Big Companies Become Successful Venture Capitalists
Can Big Companies Become Successful Venture Capitalists
 
Smart Pipes & Smart Devices
Smart Pipes & Smart DevicesSmart Pipes & Smart Devices
Smart Pipes & Smart Devices
 

Recently uploaded

Presentation2.pptx - JoyPress Wordpress
Presentation2.pptx -  JoyPress WordpressPresentation2.pptx -  JoyPress Wordpress
Presentation2.pptx - JoyPress Wordpressssuser166378
 
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024Jan Löffler
 
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced HorizonsVision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced HorizonsRoxana Stingu
 
Zero-day Vulnerabilities
Zero-day VulnerabilitiesZero-day Vulnerabilities
Zero-day Vulnerabilitiesalihassaah1994
 
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASSLESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASSlesteraporado16
 
Bio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptxBio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptxnaveenithkrishnan
 
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdfLESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdfmchristianalwyn
 
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdfIntroduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdfShreedeep Rayamajhi
 
Computer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a WebsiteComputer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a WebsiteMavein
 
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...APNIC
 
Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024Shubham Pant
 
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDSTYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDSedrianrheine
 

Recently uploaded (12)

Presentation2.pptx - JoyPress Wordpress
Presentation2.pptx -  JoyPress WordpressPresentation2.pptx -  JoyPress Wordpress
Presentation2.pptx - JoyPress Wordpress
 
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
WordPress by the numbers - Jan Loeffler, CTO WebPros, CloudFest 2024
 
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced HorizonsVision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
Vision Forward: Tracing Image Search SEO From Its Roots To AI-Enhanced Horizons
 
Zero-day Vulnerabilities
Zero-day VulnerabilitiesZero-day Vulnerabilities
Zero-day Vulnerabilities
 
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASSLESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
LESSON 10/ GROUP 10/ ST. THOMAS AQUINASS
 
Bio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptxBio Medical Waste Management Guideliness 2023 ppt.pptx
Bio Medical Waste Management Guideliness 2023 ppt.pptx
 
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdfLESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
LESSON 5 GROUP 10 ST. THOMAS AQUINAS.pdf
 
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdfIntroduction to ICANN and Fellowship program  by Shreedeep Rayamajhi.pdf
Introduction to ICANN and Fellowship program by Shreedeep Rayamajhi.pdf
 
Computer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a WebsiteComputer 10 Lesson 8: Building a Website
Computer 10 Lesson 8: Building a Website
 
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
Benefits of doing Internet peering and running an Internet Exchange (IX) pres...
 
Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024Check out the Free Landing Page Hosting in 2024
Check out the Free Landing Page Hosting in 2024
 
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDSTYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
TYPES AND DEFINITION OF ONLINE CRIMES AND HAZARDS
 

Semicon west monetizing the internet of things

  • 1. Monetizing The Internet Of Things: A Convenient How Not To Guide Paul R Brody Prepared for Semicon West July 2015
  • 2. The future is already here, it’s just not evenly distributed. William Gibson
  • 3. © 2015 Ernst & Young LLP Images creative commons, flickr We started making devices digital because they’re cheaper that way VS 3
  • 4. © 2015 Ernst & Young LLP Image from technologizer.com, Panasonic The result was a world of smart things that weren’t especially clever at all 4
  • 5. © 2015 Ernst & Young LLP Things have kept getting smarter, but we don’t seem to be very happy with how they’re turning out. 5 ➡ Lots of smart appliances now available ➡ Very few stand-out success stories
  • 6. © 2015 Ernst & Young LLP Three substantial problems have delayed the arrival of a more useful Internet of Things 6 Failing the jobs to be done test No meaningful ROI No credible level of security or privacy
  • 7. © 2015 Ernst & Young LLP The biggest failure in the Internet has been the failure to focus and improve upon the “job to be done” by the device 7 Features of a new $1,700 “Smart” Washing Machine: •Start, stop, and check status remotely •Notification when laundry cycle is complete •Assign tasks to other family members •Remind you to do the washing
  • 8. © 2015 Ernst & Young LLP ROI is important, and costs are too high while returns are far too low to justify replacing existing capital equipment 8 Case Examples: ROI on Smart Sensor Use Cases $0 $75 $150 $225 $300 Maintenance Energy Tag Cost Return Maintenance • 5% annual chance of mechanical problem • Average truck roll costs $100, 1.5 per repair • Smart systems eliminate some repairs and reduce average truck rolls total to 1.0/repair • $25 tag cost on BOM, 10% annual ROI Energy • $250 for a smart thermostat at home • Average of $141/year in savings reported for Nest thermostat users • 56% annual ROI on average
  • 9. © 2015 Ernst & Young LLP As for security and privacy: it’s a disaster and there are no participants left who have any credibility in this space 9 •Security is an after- thought in most smart product design today •The foundations of many of these designs are dated to begin with •Feature bloat adds bugs and security risks.
  • 10. Show me the money. Jerry McGuire
  • 11. © 2015 Ernst & Young LLP Two technological revolutions are emerging that will reshape how we design and build smart devices 11 The Block Chain (underlying technology for BitCoin): Cheap system-on-chip computers designed for Android Phones:
  • 12. © 2015 Ernst & Young LLP The first transformation in computing involves hardware. 12 Embedded Computing on Devices Modern Era General Purpose Computing Everywhere Post-Modern Era
  • 13. © 2015 Ernst & Young LLP It’s now cheaper to make things smart than it is to make them stupid. 13 Powerful System on Chip costs are dropping so quickly, they are converging with traditional embedded chip costs: Non-Recurring Engineering Cost for Customized Embedded Chips Shift to SOC with software customization here Illustrative: As SOCs drop in price, customization will shift to software, not hardware Time + + + + Embedded Unit Cost Average Embedded Cost Average SOC Cost At higher end of the market, this shift has already started: These high powered SOC chips can run the full Block-Chain stack including doing transaction processing (mining). Apple Lightning HDMI Adapter • Full ARM SoC with over 256MB of RAM • Boots OS X Core when plugged in • Conducts software conversion of MPEG to HDMI in real time
  • 14. © 2015 Ernst & Young LLP By 2020, billions of ordinary devices will in fact have far more computing power on them than is actually necessary 14 Global Installed Base of Computing Devices
 Millions of Units in 2015 1 10 100 1,000 10,000 AWS Servers PCs SmartPhones 2,222 890 5.6 Global Installed Base of Computing Storage
 Estimated Petabytes in 2014-5 1 100 10,000 1,000,000 Dropbox Facebook Microsoft AWS PC Storage 890,000 900 300300 40 Installed base and company data center sizes are estimates based on limited public information. PC & Smartphone shipments from statistia.com. Storage data estimated assuming 1TB per PC.
  • 15. © 2015 Ernst & Young LLP Alongside the revolution in hardware, a revolution in software is brewing at the same time: BitCoin 15 Secure Transparent Open
  • 16. © 2015 Ernst & Young LLP BitCoin is the re-invention of the most basic workload in the world of modern computing: transaction processing. 16 The Block Chain CICS in 1966
  • 17. © 2015 Ernst & Young LLP As a transaction processing engines go, the BlockChain is a terrible design and horribly inefficient. 17 Slow Redundant Wasteful
  • 18. © 2015 Ernst & Young LLP Why use the Block Chain? In a word: trust. 
 You don’t need it. 18
  • 19. © 2015 Ernst & Young LLP The core functionality of BitCoin, known as the BlockChain is now being re-purposed into all kinds of applications. 19 Application Development Environments Marketplace Infrastructure Systems of Record Distributed Social Networks
  • 20. © 2015 Ernst & Young LLP Modern Era At the intersection of these two trends is a new world order. 20 Expensive Computing Post-Modern Era Free Computing High Trust Environment Centralized Internet Low Trust Environment Distributed Internet
  • 21. © 2015 Ernst & Young LLP There are two key take-aways from the intersection of these technologies 21 1 No business case is required to make devices smart 2 The Cloud applications required to integrate & manage these devices are, if properly architected, free
  • 22. © 2015 Ernst & Young LLP Smart devices will connect assets to marketplaces and help us make better use of what we’ve already got. 22 Typical Productive Asset Utilization Levels 0% 25% 50% 75% 100% Law nm ow er D ishw asher C ar O ffice Taxi Airplane 60% 50% 20% 4%4%1% In commercial real estate alone, the opportunity is enormous: 50% Properties used IoT systems to allocate and manage space instead of long term leases. Average lease prices based on time & location would plunge.-42% In savings for consumers and businesses leasing real estate space. $128 Billion Case study data from the IBM Institute for Business Value, “Economy of Things” report.
  • 23. Slowly going forward ‘cause we can’t find reverse. The Firm
  • 24. © 2015 Ernst & Young LLP As with each new wave of technology, we should expect a 10X increase in device volume 24 $0 $125,000 $250,000 $375,000 $500,000 Mainframe Mini PC Phone Thing $50$500$5,000$50,000 $500,000 >> Thousands >> Tens of Thousands >> Hundreds of Millions >> Billions
  • 25. © 2015 Ernst & Young LLP The rise of IoT will very likely upset the balance in the semiconductor industry 25 Era of embedded computing is over. The new data center is everywhere. Security through transparency. Entirely new customer base. Life cycles are going to get longer.