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IoT Now: ISSN 2397-2793

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TALKING HEADS Tele2 IoT’s Rami Avidan on plans to orchestrate a flexible, agile and scalable ecosystem to enable a smarter world

IoT ECOSYSTEM How to monitor, manage and optimise as the value chain adds complexity

CONNECTIVITY Should no machine be left behind?






Clever networks and cool apps to transform city living See our Analyst Report at

Connections for a moving industry. See our Analyst Report at

New efficiency for living, working and playing. See our Analyst Report at

How better analytics are transforming factories. Read our exclusive Analyst Report inside this issue

Log on at to discover our new portal for products, services and insight

PLUS: 10 PAGE IoT IN MANUFACTURING INSIGHT REPORT • Why IoT is getting us closer to zero unplanned downtime • Inside Festo's Industrie 4.0, IoT-enabled Scharnhausen Technology Plant • Actility on why low power means long range coverage for industrial sensors • Panel discussion report: How artificial intelligence is pushing the frontiers of innovation • Keeping on track with Trackerando • News at






IN THIS ISSUE 4 EDITOR’S COMMENT George Malim worries that he will be the weakest link 5 COMPANY NEWS Actility buys Dutch demand response aggregator, Ayla completes US$60m Series D funding



16 IoT ECOSYSTEM Nitesh Arora reveals the benefits of a divide and conquer approach to transforming complex enterprise operations 18 INTERVIEW Cumulocity’s Bernd Gross tells Strategy Analytics’ Andrew Brown that prepackaged solutions can accelerate IoT adoption

6 MARKET NEWS IDC puts US$1.29tn value on IoT in 2020, Huawei and Capita announce global smart cities partnership

20 MACHINE CONNECTION Bill Dykas and Ricardo Buranello argue that no machine should be left behind in the march to connect vital IoT data

7 PRODUCT NEWS MultiTech expands security suite, GE Transportation launches edge-to-cloud IIoT connectivity system

22 INTERVIEW Matt Bacon tells Strategy Analytics’ Andrew Brown that low power means long range coverage for industrial sensors

8 PARTNER NEWS Telefónica and SEAT hit the road, Apple and GE partner for industrial apps, Nube turns to Sierra Wireless and Microsoft for gas delivery

24 INDUSTRIE 4.0 Eberhard Klotz tells Strategy Analytics’ Matt Wilkins how Industrie 4.0 is driving production of the future

9 THE CONTRACT HOT LIST A round up of the latest Internet of Things contracts


10 TALKING HEADS The smarter world IoT enables requires effective integration and orchestration, says Tele2 IoT’s Rami Avidan


IoT NOW INSIGHT REPORT – SMART ENERGY In the latest of an ongoing series of specially-commissioned, independent, analyst-written Insight Reports, Matt Wilkins, the senior analyst for IoT Research in the Global Wireless Practice at Strategy Analytics, assesses how IoT is enabling more analytical approaches to manufacturer operations


38 CASE STUDY Inside Trackerando’s deployment of the Cumulocity IoT Platform 40 CONNECTED MANUFACTURING Five key considerations for solving the connection conundrum 42 CASE STUDY How Veolia Water utilised Actility’s ThingPark Energy to power a smart grid for water services 44

OVERALL EQUIPMENT EFFECTIVENESS Festo takes IoT Now on a tour of its Scharnhausen Technology Plant in Germany 46 INDUSTRIAL AUTOMATION Mark Homer explains how IoT is helping industrial automation get to zero unplanned downtime 48 MONITOR, MANAGE, OPTIMISE George Malim explores why all three are vital for IoT ecosystem success 51 ENTERPRISE SOLUTIONS Nitesh Arora focuses on data, dashboards and decisions 55 ARTIFICIAL INTELLIGENCE Jeremy Cowan reports on a discussion where the intelligence was far from artificial 59 EVENTS DIARY Where to go and what to see

Cover Sponsor: At Tele2 IoT we focus on what we do best; deliver global connectivity as well as enable efficient management and other added value services needed within IoT. Our high quality IoT offering, combined with the strengths of our selected partners, truly reduce the complexity of both large- and small-scale IoT deployments in all verticals. As Europe’s fastest-growing Internet of Things (IoT) operator, connectivity is at the heart of Tele2 IoT. A global enabler of everything IoT, our business is all about expanding and forging networks, and making sure connections are optimised in ways that grow bottom lines. Orchestrating efficient communication between devices and machines, the company supports every stage of the corporate life cycle, nurturing the seed of an idea into the fully-bloomed deployment of a large scale solution.

IoT Now - December/January 2018



You are the weakest link, goodbye George Malim worries that, as automation gathers pace, the single point of failure might turn out to be himself Automation is gathering pace and, with the additional capabilities enabled by IoT, truly starting to deliver value and revenue to organisations. That’s great because it represents the promise of IoT becoming reality but there are substantial cultural and organisational challenges for businesses at the points where the automated hands over to the manual. In security, that’s the most likely point of failure – where human contact is introduced into the business chain but IoT systems seldom get to operate in complete isolation from humans.

environment is enabling the retailer to accurately and efficiently serve the needs of its customers while maintaining an attractive margin. This will be replicated in more complex environments, hopefully freeing humans from the drudgery of repetitive tasks to be more productive in other ways. Certainly, if Bill Gates’ idea of taxing corporations based on their robot power instead of taxing the income of workers takes off, we will all be deeply in the debt of robots as we enjoy greater leisure and enter a new post-industrial renaissance for humanity.

I was recently discussing this with a colleague who had the opportunity to visit two supermarket retailers’ online shopping fulfilment warehouses. One was highly automated, utilising advanced systems to monitor supply levels and the performance of human stock pickers as they assembled customers’ shopping lists. The other was completely automated, with robots picking products and humans, in very small numbers, present only to respond to problems or maintain the robots. In such environments the lights don’t need to be on most of the time.

That’s many years distant and may turn out to be an unachievable goal but, when delivery drivers are replaced by autonomous vehicles, there will be even fewer humans in the retail value chain, enhancing its’ resilience and reducing the likelihood of mistakes. In fact, machines that are properly maintained and supported won’t make mistakes – that will be left to humans like me who ruin their retail experiences by forgetting to order everything they need.

Whilst there’s a societal issue here in terms of reduced employment this fully-automated


Robin DukeWoolley, CEO, Beecham Research

Andrew Parker, project marketing director, Connected Living, GSMA

Gert Pauwels, M2M marketing director, Orange Business

Enjoy the magazine and best wishes for 2018! Robert Brunbäck, CMO, Telenor Connexion

George Malim

Contributors in this issue of IoT Now We are always proud to bring you the best writers and commentators in M2M and IoT. In this issue they include:

Andrew Brown, executive director of Enterprise and IoT Research, Strategy Analytics

MANAGING EDITOR George Malim Tel: +44 (0) 1225 319566 EDITORIAL DIRECTOR & PUBLISHER Jeremy Cowan Tel: +44 (0) 1420 588638 DIGITAL SERVICES DIRECTOR Nathalie Millar Tel: +44 (0) 1732 808690

Peter Dykes, journalist

BUSINESS DEVELOPMENT DIRECTOR Cherisse Jameson Tel: +44 (0) 1732 807410

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IoT Now magazine covers worldwide developments in the Internet of Things (IoT), machine-tomachine (M2M) communications, connected consumer devices, smart buildings and services. To receive ALL 4 ISSUES per year of the printed magazine you need to subscribe. The price includes delivery to your chosen address worldwide. BUY A 1-YEAR, 2-YEAR, or 3-YEAR SUBSCRIPTION 1 Year UK£60.00 for 4 issues / 2 Years £110 (8 issues, save £10.00) / 3 Years £155.00 (12 issues, save £25.00). SUBSCRIBE ONLINE:


Matt Wilkins, senior analyst for IoT Research, Strategy Analytics

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All rights reserved. No part of this publication may be copied, stored, published or in any way reproduced without the prior written consent of the Publisher.

Aileen Smith, head of Ecosystem Development, Huawei Technologies

David Taylor, managing director, M2M, Telefónica UK

Bill Zujewski, SVP, IoT Marketing & Strategy, PTC

IoT Now - December/January 2018

COMPANY NEWS NL Noodvermogenpool has been providing emergency power since 2012

Actility buys Dutch demand aggregator NL Noodvermogenpool Actility has acquired NLNoodvermogenpool, the largest demand response aggregator in the Netherlands. Combining the marketleading position and expertise of NL Noodvermogenpool with the technology for smart grid developments offered by Actility’s ThingPark Energy platform is set create a leader in European demand response, the company says. “The energy transition is rapidly unfolding across Europe,” said Cedric De Jonghe, who heads Actility’s Energy Business, “and demand response is a key component.” NL Noodvermogenpool is a pioneer in demand response in the Netherlands. Established in 2011, it has been providing emergency power to the Dutch transmission system operator TenneT since 2012. NL Noodvermogenpool creates an “emergency power pool” which aggregates the capacity of many partner companies to offer additional power to balance the electricity grid. In addition, this aggregation brings direct economic benefits to flexibility suppliers participating into the pool.

NEWS IN BRIEF Digi International acquires Tempalert

“We are very successful in the Dutch market for both upward and downward emergency power”, comments NL Noodvermogenpool manager Jeroen Schut. “To meet increasing demand in the rapidly changing energy landscape, we needed a strong technology partner.” By combining forces with Actility, NL Noodvermogenpool will continue to lead the evolution of smart grid in the Dutch market and expand its partnerships, with future-proof solutions offers. Olivier Hersent, the chief technology officer of Actility, added: “We are delighted to join forces with NL Noodvermogenpool, cementing Actility’s strong position in demand response in Europe. This partnership demonstrates the commitment to building strength in sectors where Actility’s innovative technology can be disruptive.”

Ayla Networks announces US$60m in Series D financing Ayla Networks, an Internet of Things (IoT) platform-as-a-service (PaaS) provider, has raised US$60m (€51.50m) in Series D financing led by Run Liang Tai Fund (RLT) and Sunsea Telecommunications. The funding will be used to further expand Ayla’s product capabilities to help large enterprises extract IoT data and transform it into business intelligence, and to expand its ecosystem network of partners and application providers. “Ayla has amassed more than 100 large enterprise customers by solving their challenges regarding how to securely connect, manage and apply intelligence to all of their connected devices and sensors,” said David Friedman, the chief executive and co-founder of Ayla Networks. “The Ayla platform blends critical capabilities related to security, privacy, data policy and management with a massively configurable capability for our customers to ingest data from any sensor and IoT cloud. The platform makes it easier for enterprises to apply intelligence and analytics to broad sets of heterogeneous data sets to transform the data into real business value.” According to Friedman, Ayla’s early focus has been in markets such as

IoT Now - December/January 2018

HVAC, large and small appliances, water management and home control. More recently, the company has expanded into serving large retail, industrial, telco and service provider, and medical markets. From these markets, the amount of data flooding into the platform is growing five-fold year-onyear. With this David Friedman, Ayla growth come Networks significant opportunities for Ayla’s customers to utilise applications provided by Ayla and its ecosystem partners to drive new services and enhance operating efficiency. “Ayla has established itself as a leader in IoT technology, and it has established a solid presence in global markets,” said Sean Cai, partner at Run Liang Tai. “We invested in Ayla to help them continue their product leadership and enable them to grow much faster.”

Digi International, a global provider of Internet of Things (IoT) products and services, has acquired TempAlert, a provider of automated, real-time temperature monitoring and task management solutions for the healthcare, industrial and food-service industries. TempAlert will join the Digi Smart Solutions team. Digi purchased Boston-based TempAlert for US$45m (€38.03m) in cash plus future earn out incentives. With its origins at the Massachusetts Institute of Technology (MIT), TempAlert is now in use at more than 20,000 customer sites including Walmart, CVS Health, SpaceX, Apple, Coca-Cola, McDonald‘s, and the US Department of State. With its fourth strategic acquisition in 24 months, Digi has nearly 35,000 customer sites and presence in the healthcare, transportation, industrial and foodservice markets. In aggregate, the Digi Smart Solutions team offers more than 25 years of condition-based monitoring experience gained through managing more than six billion sensor readings.

AT&T, Tech Mahindra collaborate on new open source AI platform AT&T and Tech Mahindra are collaborating to build an open source artificial intelligence (AI) platform called Acumos, which will make it easy to build, share and deploy AI applications. The platform, hosted by The Linux Foundation, will provide a marketplace for accessing, using and enhancing the applications. AT&T contends that the industry needs a way to make AI apps reusable and accessible outside the company that created them, and simplify deployments to lower the barrier to entry so that operators can keep up with customer demand. Mazin Gilbert, the vice president of Advanced Technology at AT&T Labs, said: “Our goal with open sourcing the Acumos platform is to make building and deploying AI applications as easy as creating a website. We’re collaborating with Tech Mahindra to establish an industry standard for AI in the networking space. We invite others to join us to create a global harmonisation in AI and set the stage for all future AI network applications and services.”



NEWS IN BRIEF Fog computing global market will exceed US$18bn by 2022 The fog computing market opportunity will exceed US$18 billion (€15.48 billion) worldwide by the year 2022, according to a new report by 451 Research, commissioned by the OpenFog Consortium. The Size and Impact of Fog Computing Market report projects that the largest markets for fog computing will be, in order, energy/utilities, transportation, healthcare and the industrial sectors. New use cases created by the OpenFog Consortium were also released that showcase how fog works in industry. These use cases provide fog technologists with detailed views of how fog is deployed in autonomous driving, energy, healthcare and smart buildings. “Through our extensive research, it’s clear that fog computing is on a growth trajectory to play a crucial role in IoT, 5G and other advanced distributed and connected systems,” said Christian Renaud, the research director for Internet of Things at 451 Research, and lead author of the report. “It’s not only a technology path to ensure the optimal performance of the cloud-to-things continuum, but it’s also the fuel that will drive new business value.”

Cisco announces US$1bn smart cities programme Smart cities have less pollution, safer streets and better quality of life for citizens but many finance officers struggle to fund the upgrades that will make their cities smart. To help, Cisco has introduced its City Infrastructure Financing Acceleration Program. The US$1bn (€0.85bn) programme aims to make it easier, faster and more affordable for cities around the world to fund and adopt technologies that will transform their communities. The funding will be provided through Cisco Capital in partnership with private equity firm Digital Alpha Advisors and pension fund investors APG Asset Management (APG) and Whitehelm Capital. “Funding is a major stumbling block for municipalities beginning their smart city transformation,” said Anil Menon, the global president of Cisco’s Smart+Connected Communities. “With our partners, Cisco will bring the capital and expertise it takes to make smart city projects a reality. Digital Alpha, APG, and Whitehelm Capital bring a fresh perspective on investment in an area that has previously been perceived as too new and, therefore, too difficult to finance.”


IoT market growing exponentially to US$1.29trn, say IDC and Aeris A recent IDC technology spotlight, sponsored by Aeris, has highlighted the key factors business leaders should consider when selecting an IoT solution. The IoT market continues to see strong growth Dr Rishi Bhatnagar, Aeris and the analyst firm predicts that the worldwide IoT market spend will grow from US$625.2bn (€531.66bn) in 2015 to US$1.29tn (€1.10tn) in 2020, with a compound annual growth rate (CAGR) of 15.6%. The installed base of IoT endpoints will grow from 12.1 billion at the end of 2015 to more than 30 billion by 2020. A key factor driving adoption of IoT is the increasing realisation of the value that IoT brings along with improving customer experience. Most businesses today are either at a starting point in their IoT journey or are in some stage of considering an IoT deployment.

Dr Rishi Bhatnagar, the president of Aeris in India, said: “When you are talking about enhancing the customer lifetime value, smoothening customer onboarding or even making it easier for businesses to deliver sophisticated customer experiences, IoT technologies lead the way. Today, IoT has gone way beyond tagging and tracking and has entered diverse domains and is enabling a range of business benefits. Aeris is at the forefront of driving IoT adoption through a unique blend of offerings that help unlock the true enterprise value of IoT.” Arjun Vishwanathan, the associate director for Emerging Technologies at IDC India, added: “As CIOs, IT and business leaders move toward transforming their enterprises and expanding their digital footprint, the role of IoT will be a lynchpin for causing disruption and driving transformation. There is broad consensus across industries and roles on IoT playing a major role in delivering better efficiencies, productivity and customer experience.”

Huawei and Capita announce global partnership Huawei has established a global partnership with Capita Secure Information Solutions to integrate Capita’s next-generation suite of public safety solutions into Huawei’s Smart Cities offering. The partnership will involve the design, development and provision of innovative ICT solutions to address the challenges of policing and meet the needs of citizens. Capita’s end-to-end technology solutions will help Huawei service the complex requirements of police forces and other emergency services across approximately 170 countries in which it operates. Huawei will work with Capita to develop joint solutions using Capita’s Integrated Operational Policing platform, which supports the initial contact from citizens and from the resulting processes from criminal investigation, case preparation, custody management, intelligence to evidence management. Alan Hartwell, the chief technology officer of Capita Secure Information

Solutions, said: “The new partnership with Huawei will increase the global reach of our solutions, helping police forces and other emergency services across the world to deliver more effective and efficient services to the people they serve. Like us, Huawei recognises the importance of investment and continued development of products to ensure that clients have the most upto-date solutions available. We look forward to working closely with Huawei to deliver these services to existing and new clients as they come on board.” River Wen, the sales director of Smart City Solutions at Huawei Enterprise WEU, said: “We are excited to be incorporating Capita’s state-of-the-art products into our global smart cities offering and benefiting from their experience in delivering integrated public safety solutions. We know that our clients want to deliver modern, forward-thinking emergency services in the countries they operate, and Capita’s end-to-end solutions will help us do this.”

IoT Now - December/January 2018


MultiTech expands security suite with new enablers and services MultiTech has announced a new suite of security enablers and corresponding services designed to empower enterprise customers with centralised Derek Wallace, management of MultiTech device and data security for IoT applications. The services are facilitated through the MultiTech DeviceHQ device management platform which offers a central point of operational control for remote IoT assets.

the public internet. Pairing the Asavie PassBridge platform with MultiTech hardware provides a virtual private network, enabling organisations to protect data collection and transmission from interference, tampering and breach, even on low-power networks, while scaling cloud-based applications over a secure cellular backhaul.

The company has partnered with Asavie and Device Authority to add device authentication, certificate management, end-to-end encryption and other secure services as well as secure softwaredefined wide area networking (SDWAN) packaged as a service from a single source to deliver end-to-end security for IoT applications.

“We are committed to removing friction from the IoT adoption process for our customers,” said Derek Wallace, the director of product management at MultiTech. “We developed these services based on customer feedback in order to address real needs in the market, and we’re looking forward to continuing our history of innovation and customer service by developing new ways to improve their IoT experience.”

Asavie offers organisations secure, seamless, edge-to-cloud connectivity off

Device Authority is a global provider of Identity and Access Management (IAM) for IoT. Its KeyScaler platform uses unique patented Dynamic Device Key Generation (DDKG) technology and provides a strong root of trust, securing the identity of MultiTech hardware.

GE Transportation unveils EdgeLINC software for Industrial IoT management GE Transportation has introduced EdgeLINC software, a system for Industrial IoT (IIoT) edge-to-cloud connectivity with efficient device management, configuration and streaming analytics capabilities.

EdgeLINC enables users to control over configuration, telemetry, alerts and uses SAS’s Event Stream Processing (ESP) engine integrated with Predix Machine, Predix Edge Manager and Asset Performance Management (APM) solutions. EdgeLINC is capable of running on GE Transportation’s GoLINC platform as well as third party devices, and supports on-premises, cloud and hybrid cloud deployment and integration.

“When it comes to transportation and other heavy industrial settings, seconds matter. Operators require the ability to take action on their physical assets immediately, either automatically with a train adjusting itself or by human intervention,” said Laurie Tolson, the chief digital officer at GE Transportation. “Edge-level computing and analytics are about giving people actionable information to better manage how the physical world operates in real-time to improve industrial performance.”

“The combination of EdgeLINC’s extensible architecture and easy deployment on any edge device, at any time, is further strengthened by the contributions of GE’s ecosystem partners,” explained Tolson. “SAS ESP drives EdgeLINC’s rules-based, highly configurable analytics at the edge and Infosys brings an enterprise scale capability for integration services. Together, we can increase speed to value and success of delivery for our customers – not only those in the rail industry, but in other industrial verticals as well.”

Laurie Tolson, GE Transportation

IoT Now - December/January 2018

NEWS IN BRIEF BlackBerry launches new cybersecurity services BlackBerry has introduced new cybersecurity consulting services aimed at enabling enterprise General Data Protection Regulation (GDPR) compliance and mitigating security risks in connected automobiles that threaten personal and public safety. BlackBerry Cybersecurity Consulting will guide organisations through the process of understanding how to manage company data, how GDPR applies to the organisation, and how to achieve competitive readiness. BlackBerry will also offer new automotive security-related services directly and through a new partner programme aimed at helping to eliminate security vulnerabilities within connected and autonomous vehicles. Spring Cloud, a supplier of autonomous driving artificial intelligence (AI) platforms in South Korea, will be the first partner to work with BlackBerry to provide the new cybersecurity consulting services to a range of automotive technology providers.

Gemalto launches all-in-one IoT module with global LTE connectivity Gemalto, a provider of digital security, is expanding Industrial IoT connectivity with a claimed breakthrough in wireless engineering – the industry’s first IoT module to provide global connectivity on 12 LTE bands plus, 3G and 2G cellular coverage all from a single device. This greatly simplifies logistics and distribution and lowers the cost of global IoT deployments. The new Gemalto Cinterion PLS62-W IoT Module delivers highly efficient LTE Cat 1 connectivity on all 12 LTE bands while providing seamless fallback to multi band 3G and 2G networks if 4G is not available. This allows device manufacturers and integrators to develop one application that can connect anywhere in the world, even when solutions move between different regions and cellular network standards.




Leaseplan and TomTom announce connected cars partnership Fleet management provider, LeasePlan, and TomTom Telematics, a provider of vehicle telematics and connected car services, have announced a partnership undr which LeasePlan will offer the latest in cloud-based fleet management technology to its corporate customers. The partnership is a key element in LeasePlan’s strategy to deliver any car, anytime, anywhere. Under the service agreement, LeasePlan customers will be able to access TomTom’s cloud-based fleet management and connected car solutions, including WEBFLEET. These solutions – all of which support customer compliance with the latest data privacy legislation – help corporate fleet and mobility managers improve performance by providing realtime data on key fleet metrics.

Apple and GE partner to bring Predix industrial apps to iPhone and iPad Apple and GE have announced a partnership to deliver industrial apps designed to bring predictive data and analytics from Predix, GE’s industrial Internet of Things (IoT) platform, to iPhone and iPad devices. The two companies unveiled a new Predix software development kit (SDK) for iOS, Apple’s mobile operating system. “GE is an ideal partner with a rich history of innovation across the industrial world in areas like aviation, manufacturing, healthcare and energy,” said Tim Cook, Apple’s chief executive. “Together, Apple and GE are fundamentally changing how the industrial world works by combining GE’s Predix platform with the power and simplicity of iPhone and iPad.” John Flannery, the chairman and chief executive of GE, added: “Our customers increasingly need to arm their workforces through mobility. Working together, GE and Apple are giving industrial companies access to powerful apps that help them tap into the predictive data and analytics of Predix right on their iPhone or iPad.”


SEAT and Telefónica reach agreement to promote digitalisation in the automotive industry SEAT president Luca de Meo and Telefónica president Luis Miguel Gilpérez have signed an agreement that aims to promote a joint effort to develop innovative initiatives in the automotive industry. The agreement, which makes Telefónica a strategic IT supplier to SEAT, is set within the framework of SEAT’s strategy to position itself as a benchmark company in connected, digitised mobility solutions. The agreement between the companies reflects the collaboration in three major areas of work: the shared use of insights to design optimised approaches to solutions for mobility; the application of 5G connectivity in the connected car and developing digital transformation projects as an integral part of the car manufacturing process. “With this agreement, SEAT consolidates itself as a benchmark in the sector’s digitalisation. Joining forces with Telefónica as a strategic partner enables us to take a major step forward in our commitment to offering mobility solutions that make lives easier for the drivers of our vehicles,”

SEAT’s Luca de Meo (left) and Telefónica’s Luis Miguel Gilpérez

said de Meo. “This collaboration will also enable us to use technology to develop projects that enhance our production processes and relationships with suppliers.” Gilpérez, added: “New technologies are truly going to trigger a revolution in the automotive sector and at Telefónica we want to be the leading partner in helping SEAT spearhead this new phase. How big data and blockchains will influence the sector, or how decisive 5G will be for the future of the autonomous and connected car are a few of the innovations that Telefónica and SEAT are going to work on together.”

Nube selects Sierra Wireless and Microsoft for device-to-cloud gas delivery Nube has selected Sierra Wireless’ device-to-cloud IoT solution and Microsoft Azure Cloud Services to reinvent consumer liquid petroleum gas (LPG) delivery, initially in Mexico with plans to expand into North America. In Mexico, and many other regions, LPG used by businesses and residences is commonly stored on building rooftops, where meter reading is difficult. Consumers don’t know when their tank will run out and gas companies can’t plan for deliveries or supply needs. Nube set out to solve this problem, launching a turnkey, end-to-end IoT solution that includes tank monitoring and wireless data transmission to the cloud using Sierra Wireless’ device-tocloud solution, as well as a management platform for gas

companies, and a mobile consumer app for consumers to order gas, make payments, and manage their accounts, enabled by Microsoft Azure Cloud Services. “Sierra Wireless helped us go to market with confidence, reducing risk in several ways, from rapid execution and delivery, to reliable connectivity and easy expansion to Microsoft Azure Cloud Services,” said Chris Gnanakone, the founder and CEO, Nube. “We were impressed with Sierra Wireless’ AirVantage IoT platform, and having the hardware pre-integrated provided us with a significant time-to-market advantage. Sierra Wireless has been a true partner in helping us reinvent gas delivery. This successful deployment allows us to expand our IoT Solution into North America and then into other smart city applications.”

IoT Now - December/January 2018


IoT Now September/October 2017 It's free to be included in The Contract Hot List, which shows the companies announcing recent contract wins, acquisitions or deployments. Email your contract details to us now, marked "Hot List" at <> Vendor/Partners

Client, Country

Product / Service (Duration & Value)



Enforta, Russia

Actility selected to begin collaboration to deploy LoRaWAN network to deliver IoT services across all of Russia



Bosch, global

Extension of partnership to support company’s digital transformation across global operations including Avaya Private Cloud Services



Yangfeng Visteon, China

Blackberry NX platform selected for automotive digital instrument cluster project


Electric Imp

KiWi Power, UK

Electric Imp secure enterprise IoT platform selected by UK demand response aggregator to deliver next generation of low cost devices for electrical metering



Onköl, USA

Gemalto IoT connectivity to be utilised by OnKöl’s mHealth solution for monitoring patients



FindMy, Norway

Globalstar satellite connectivity chosen by animal tracking provider FindMy to help prevent trains colliding with reindeer as part of SaveMyReindeer service



Hitachi Construction Machines, global

Expansion of existing agreement to use Iridium for delivering e-services across the planet for Hitachi’s construction machine management business



Ceske Radiokomunikace, Czech Republic

Loriot chosen to provide network operating systems to enable national broadcasr and cloud operations provider


Orange Business Services

Topaz Energy and Marine, global

Agreement signed for Maritime Connect service that connects the fleet at sea and supports the corporate network



Bell and Howell, USA

PTC’s Thingworx selected to optimise service capabilities for all Bell and Howell OEM service providers


Renesas Electronics

Toyota, Japan

Renesas automotive semiconductors selected for Toyota autonomous vehicles that are currently under development



GE Transportation, USA

SAS chosen to provide real-time analysis of sensor data to keep GE locomotives safe and efficient



Ofo, China

LoRa technology integrated to track bicycle locations and reduce operational costs for bike sharing company



Spartan Camera, USA

Sequans’ Colibri LTE Cat 4 platform chosen to power Spartan GoCam LTE surveillance camera


Sierra Wireless

Nube, Mexico

Sierra device-to-cloud IoT offering and Microsoft Azure Cloud services selected by Nube to support IoT-enabled consumer gas delivery solution in Mexico



Alps Electric Europe, Ireland

Alps decides on Sigfox IoT strategy with mass production of Alps-Sigfox devices for asset tracking and preventative maintenance to start with project in Ireland


Silver Spring Networks

Dubai Electricity and Water Authority (DEWA)

Initial deployment of Silver Spring multi-application IPv6 network canopy across the Emirate of Dubai, based on Silver Spring’s Gen5 technology



Husqvarna, Sweden

Telit end-to-end IoT solutions deployed to enable real-time sensor data from robotic lawnmowers to provide insights into greenspace environmental conditions and park maintenance for cities



Vaio, global

Telit chosen to provide its LTE Cat 9 LN940 mobile datacard to enable secure, reliable, LTE-Advanced connectivity in Vaio’s S series of notebooks



Michelin, global

TomTom selected to power new mobile application for truckers from tyre maker


Velodyne LiDAR

Mercedes-Benz Research & Development, Germany

3D, real-time perception systems provider selected as critical sensor supplier for further development of automated and driverless vehicles


Renesas, Toyota and Denso to bring autonomous vehicles to market faster Renesas Electronics, a supplier of advanced semiconductor solutions, has announced that its automotive technologies will drive Toyota Motor Corporation’s autonomous vehicles, which are presently under development and scheduled for commercial launch in 2020. Selected by Toyota and Denso Corporation, Renesas’ autonomousdriving vehicle solution for Toyota’s autonomous vehicles combines the RCar system-on-chip (SoC), which serves as an electronic brain for in-vehicle infotainment and advanced driverassistance systems (ADAS), and the RH850 microcontroller (MCU) for automotive control. This combination delivers a comprehensive semiconductor solution that covers peripheral recognition, driving judgements and body control.

IoT Now - December/January 2018

Toyota selected Renesas as the key semiconductor supplier for its Highway Teammate, an autonomous-driving prototype car designed to merge, pass, change lanes and perform other actions during highway driving, under supervision. Production vehicles are planned for sale by 2020. The R-Car SoC has been selected for Denso’s engine control unit (ECU), which will be used for Toyota’s upcoming autonomous-driving vehicles. The R-Car SoC will function as the electronic brain for the autonomousdriving system, providing highly accurate intelligence on the vehicle’s position within its environment and making real-time decisions on vehicle control and active safety manoeuvres based on sensor data. “To achieve a society where mobility

Autonomous Toyotas of the future will contain Renesas electronics

means safety, efficiency and freedom, Toyota is constantly seeking out the latest technology and selecting systems incorporating the very best devices and materials,” said Ken Koibuchi, the executive general manager at Toyota. “We are partnering with Denso and Renesas, who bring superior technology and expertise to this project, with the aim to accelerate the development of autonomous-driving vehicles and encourage early adoption.”



Join us at the ONLY dedicated IoT Networking event at Mobile World Congress 2018! Where? Networking Garden no 8 (upper concourse, between Halls 6 & 7) When? Tuesday 27th February 2018 Time? 4pm â&#x20AC;&#x201C; 6pm Come and meet the leading lights of the global IoT industry. Discuss future trends and the big ideas with IoT Thought Leaders, analysts and experts. Drinks, nibbles and entertainment are included. Numbers are limited and entry is with an invitation only.

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IoT is the enabler of a smarter, better world but all the ingredients must be integrated and orchestrated effectively Rami Avidan is the chief executive of Tele2 IoT, the company within the Tele2 group that addresses the Internet of Things (IoT). Here, he tells IoT Now how just four years from its establishment the company is connecting assets in more than 160 countries and positioning itself to become the orchestrator of a smarter world

Rami Avidan, chief executive of Tele2 IoT

IoT Now: You personally have a long background in M2M/IoT, why are you so passionate about this business? Rami Avidan: I think there are two main reasons. At a very high level – and I don’t want to be too altruistic here – there are fundamental macroeconomic issues across the planet. We have famine, droughts and people without access to technology. We’re over-using the resources of the planet and people are living longer, but not necessarily healthier lives. We therefore have to become much smarter about how we take care of people living on the planet and I believe technology and IoT will play a significant role in solving some of these issues.

IoT Now - December/January 2018

RA: It’s multi-faceted. We’re a wholly owned, fiscal and legal entity within the Tele2 group but we were a start-up and are now a scale-up in a large organisation and we’ve been given the freedom to operate as such. I think that has given us a huge advantage compared to other actors in the market in terms of speed, flexibility and agility.

I have children and on my deathbed I want to be able to say I was part of making the planet they live on a better place

The second thing that drives our growth is that we’ve come to market later than some. This has given us the advantage that we could see what had been done well and what had been done less well by the earliest players. There were players that were poor because they had no supporting ecosystem or, if they did, their partnerships were badly executed. Disregarding who you are and where you are in IoT you need a strong ecosystem because no one can deliver a whole solution in their own right. Telecoms operators traditionally want to own it all but that doesn’t work in IoT. We are a horizontal provider of IoT solutions; we don’t go end-to-end. We do not go into hardware or the vertical applications – we provide connections to the cloud or other infrastructure. Tele2 IoT starts where the hardware ends and stops where the solutions become vertically integrated. All our solutions are built to be

I have children and on my deathbed I want to be able to say I was part of making the planet they live on a better place. That’s the altruistic angle but we’re a business-to-business provider of solutions and what gets me out of bed in the morning is helping our customers and partners do what they do best, which is focusing on their core business where we help them become more efficient. At the same time, we’re helping them to move from being products businesses to becoming service providers and by doing so, we’re creating a lot of value for our customers and partners while creating shareholder value for the shareholders of Tele2. It’s truly a thrilling industry to be part of.

IoT Now: How would you describe Tele2 IoT’s position in relation to your competitors?




Areas we are focusing on to help customers include harmonisation between the varying types of technology. We need to understand security concerns in greater depth and not just the technical piece

vertically agnostic so they can operate in all verticals in all locations. If you look at IT customers, none are identical, all are special, all feel special and so they should. That means you have to be flexible and able to build up solutions from a technical perspective that are able to integrate into a variety of solutions. In addition, we have a crawl-walk-run methodology that enables customers to start small and scale up, commercially and technically. Finally, a piece that differentiates us is that we have handpicked almost every employee in the organisation so everyone has a specific duty and has the right experience to fulfil it. If you put all of that together I think it adds up to our differentiation in the market place. Being recognised by Gartner in its Magic Quadrant for Managed M2M Services made us very happy and we believe that it shows our strategy has really paid off. IoT Now: What can we expect from Tele2 IoT in the coming year? RA: We’re obviously going to continue with our growth strategy which has seen us grow revenues by 100% in the last 12 months. In addition, we continue to add new partnerships and hope to announce some more at Mobile World Congress 2018. We’ll also continue to build very good and solid products to add to our 2ROUTE, 2SECURE and 2PREDICT products. We plan to add products on the IT services and infrastructure enablement side.


On the IT enabling services part of our offering we’re developing a set of micro services and software. There are a host of new services coming through in areas such as security, for example. IoT Now: What do you see as the main barriers for companies that are looking to get started with IoT? RA: I think there are two main barriers. We run shows called IoT Talks across Europe working with thought leaders, customers and partners to share thoughts and ideas. At these shows we interact with the audience and ask them what do they believe the largest barrier to getting going with IoT properly is. Audiences in Paris, Munich, Stockholm and Amsterdam responded and we found that an average of 65% of respondents say strategy is the main barrier. By that they mean that while they understand they have to get into the digital space, they don’t really know what to do, when to do it and who to do it with. Some have started with technology but that’s the wrong starting point. You can do anything with technology but you have to know what you want to do. This is a chief executive and boardroom decision and not a chief technology officer one. The second barrier is that most companies still look at IoT as a cost rather than an investment. Finance organisations want to see a business case but in IoT it’s difficult to predict. You can make assumptions but companies have to take a leap of faith and pivot. However, companies need to

For the connectivity part of our offering, we’re extending our connection spectrum so it’s not only cellular. We’ve started to roll out LoRa in

parts of Sweden and we’re preparing for narrowband IoT (NB-IoT) and we’re looking at other bearer services with the goal of becoming bearer agnostic. Customers don’t care about the bearer, they just want the quality they need at the right pricepoint.

IoT Now - December/January 2018

understand that unless they take that leap they are most likely to be out-competed by more agile and dynamic organisations. IoT Now: What are the main challenges for companies that have already rolled out IoT in their businesses? RA: I think some of them have made the wrong technology choices but that’s not because they made a mistake, it’s because five or ten years ago technology was not as solid and flexible and agile as the technology stacks available today. This means they rolled out solutions that are inflexible.

Today, however, there are a myriad of solutions with no standardisation and consistency and that is confusing for the customer. One of the things we’re trying to do is to be an orchestrator for the digital world. We want to help customers orchestrate which technology to implement and how to interact with solutions. Typically a customer has an

IoT Now - December/January 2018




It’s clear that in Europe and other western countries digital is being talked about a lot, and I believe that it is important to use the digital and connected possibilities as a real advantage

idea and we bring on board our ecosystem. If they want hardware we refer them to four or five of our partners who can develop that for them. If they want systems integration, we’ll put them in touch with several system integrators. We try to work as an orchestrator between our partners and our customers. This has a lot of value to them but also to us. Areas we are focusing on to help customers include harmonisation between the varying types of technology. We need to understand security concerns in greater depth and not just the technical piece. IoT Now: Looking five years ahead, how will IoT change businesses and what are the main driving forces? RA: Lots of things are happening so a high level of integration will exist in the ecosystem even though harmonisation and standardisation needs to improve. Developments on the business and technology level are starting to bear fruit and inter-relationships are beginning to be cemented. In addition, we need to be strategic about business models. The IoT question is actually becoming more and more of a boardroom strategic discussion and that’s really good because the opportunities of IoT needs to be addressed at that level as it affects the whole company. It’s clear that in Europe and other western countries digital is being talked about a lot, and I believe that it is important to use the digital and connected possibilities as a real advantage. Looking at the last ten years, many have had the position that Chinese and Indian products are cheap and low quality. The difference now is that they’re not low quality anymore and are simply cheaper. Competing vendors need to find other advantages to stay on top. Staying close to customer needs, building customer intimacy, is one important opportunity that can be realized through connected solutions. Amazon, for example, is growing exponentially


and it’s achieving that on the back of its promise of being extremely focused on customers. A lot of companies are struggling to understand that. The automotive industry in the last five years has also done lots of things in car pooling and sharing resources as well as autonomous driving. Customers will move away from leasing cars to using them as a service based on a rental model. We are starting to see connections of assets in infotainment, diagnostics and security. The outcome of all this is that we will see companies pivot from selling products to services. The next generation of users will be more opex focused than capex orientated. They don’t have to own the device, they only want to use it when they want to use it. It doesn’t matter if the device is a car or a washing machine, there is a lot of buying power driving the move to servitization now and this will change markets substantially. For example, white goods manufacturers typically plan a seven to eight year lifespan for their goods because they want to sell customers a replacement product. However, if they’re providing a washing machine as a service on a per wash or even a monthly fee, they’ll want the lifespan for the asset in place to be far longer. This in turn will alter how companies account for their performance as they become owners of fleets of washing machines with recurring revenues and depreciating assets deployed in the field. It’s a big change from building and selling machines. This is just one example of how IoT will transform business and change the ways in which people live. The scale and scope of this should not be underestimated and that’s why I’m so excited for Tele2 IoT. We’re growing exponentially to meet this massive opportunity, we’ve attracted a lot of talent to ensure we can serve customers and we’re building on our existing partnerships to truly create a flexible, agile ecosystem for IoT.

IoT Now - December/January 2018

We donâ&#x20AC;&#x2122;t need to te ell you why IoT is s so important tant now w. We just need to tell you whyy it is so simple and fast to ad dd our packag ged IoT platform to your solutions. You work o on differentiating g your offerings and we worrry about the IoT "plumbing". Letâ&#x20AC;&#x2122;s talk.



Enterprises look to monitor, manage and optimise the IoT ecosystem Nitesh Arora, the head of marketing at Cloudleaf, reveals the benefits of the divide and conquer approach to digitally transforming complex enterprise operations

It’s understandable, therefore, that the manufacturing sector is keen to embrace IoT in order to take advantage of obvious benefits. These include addressing the challenges of total cost of ownership (TCO), competition, complexity and risk, but increasingly, early-movers are also using it as a vehicle for generating growth and as a hedge against increasing global competitive pressures. According to Vernon Turner, an IoT research fellow and senior vice president at IDC: "investments by China and the United States in IoT solutions is driving these two countries to account for double-digit annual growth rates and over half of the IoT spending." On paper, this all seems perfectly reasonable and straightforward, but in practice, manufacturers are finding that adoption is a relative and loaded concept. Implementing IoT across the enterprise ecosystem in one fell swoop is a tricky business and better left to larger, well diversified outfits able to absorb front-loaded costs and risks. Instead the trend is in smaller compartmentalised industrial IoT (IIoT) implementations that solve a narrow set of business challenges, rather than trying to boil all oceans at once. By adopting a disciplined implement, measure, optimise and replicate approach, manufacturers are able to take short manageable sprints towards solving industrial process automation challenges in a scalable and purposeful way. The promise of IoT to provide powerful cross-boundary visibility, real-time monitoring and granular control across the entire manufacturing value-chain of people, assets and workflows, is generally well understood. But the real challenges are the next step: How do manufacturers choose an IoT provider? How do they execute? And how do they measure success, scale growth and replicate their gains? Cloudleaf was founded to specifically answer these questions and provide solutions that elegantly solve real-world business problems in manufacturing and distribution, pharma and life sciences, and other process automation industries. Our solutions are designed to simplify the manufacturing processes and solve emerging asset and workflow challenges in a measurable, value-added and sustainable way. Increasingly, we are finding that manufacturers are investing in IoT technologies that bolster their manufacturing operations management (MOM), enterprise asset management (EAM)

and predictive maintenance (PdM) capabilities. In fact the push right now is to get a better understanding of all the assets, processes and skilled labour in play on the plant-floor and at the operational level of the enterprise. And this is what Cloudleaf Sensor Fabric was designed to accomplish. We help our customers to transform legacy operations into real-time digital-factories. Our IoT solutions enable manufacturers to monitor and optimise the flow of materials, sub-assemblies, high-value tools and the use of skilled labour in the manufacturing process. According to the British Standards Institute standard (PAS-551), asset management is defined as: “systematic and coordinated activities and practices through which an organisation optimally and sustainably manages its assets and asset systems, their associated performance, risks and expenditures over their lifecycles for the purpose of achieving its organisational strategic plan.” If we take a deeper-dive into asset utilisation and material processing, we find that manager pain-points can be summed up in the following four areas of concern:

1. Asset Utilisation Lack of real-time operational awareness - Where are my things? Many manufacturers still are unsure about what assets they have on-hand, in what quantity and in what condition. This FDH (fat, dumb and happy) approach to asset management is simply not sustainable in today’s highly competitive, global landscape. Barcode serialised inventory sounds good in practice, but without an underpinning of real-time IoT-enabled controls, things start to get out of hand quickly. Cloudleaf’s Sensor Fabric is a mesh of intelligent IoT sensors and endpoints, gateways and cloud technologies that provide real-time location tracking and data streaming that enables manufacturers to realize just-in-time (JIT) manufacturing, improve material utilisation and mitigate asset-leakage. This includes fixed equipment on the plant floor to a variety of mobile assets such as inventory containers, sub-assemblies and high-value tools that require periodic maintenance and calibration. And for perishable goods or time/environment sensitive materials such as blood and tissue samples, dwelltime management is essential to ensuring biological viability.

Global adoption of industrial IoT hardware, connectivity and services is soaring. In fact, over the next few years, investment in IoT technologies will experience a whopping 15.6% CAGR worldwide, reaching projected spending of US$1.29tn by 2020. Nowhere is this more true than in the manufacturing sector, where the IoT is helping enterprises to digitally transform their legacy plant operations. The potential benefits are compelling, including near-zero downtime operations, sixsigma certified product quality, and streamlined asset maintenance. To put things in perspective, manufacturing related IoT spending alone, accounted for US$178bn in 2016 – more than spending in transportation and utilities, combined.


IoT Now - December/January 2018

2. Condition monitoring Non-value-added maintenance - Why are my maintenance costs so high? Predictive maintenance solutions not only help manufacturers keep their assets properly maintained and calibrated but also eliminate over-maintenance, which increases total operating costs. Monitoring high-value equipment, such as the a shaft bearing vibration signature in a million dollar pump on a crude oil rig, not only provides valuable advanced notice of potential failure, but allows operation managers to proactively fix issues before they become major problems. Downtime on a rig might be measured in thousands of dollars per minute. In fact in many cases, the tangible and intangible downtime costs far exceed the cost of replacing or repairing the failed asset. Cloudleaf Sensor Fabric continually monitors operating conditions of assets in the mesh and streams real-time maintenance metrics to predictive IoT analytics. We provide the right data at the right time so that plant managers can take full advantage of powerful reliability-centred maintenance (RCM) processes to establishment safe minimum levels of maintenance, changes to operating procedures and create capital maintenance plans.

4.Complex assemblies Improper risk management - How do I keep my enterprise data and processes safe? Every manufacturing process carries with it some level of risk. Each time inventory is turned into a sub-assembly, or tools are used in the building, testing or validation of a component, some amount of cost creeps into the process. Enterprise asset management (EAM) best practices are predicated on an operational plan that understands the risks associated with the ownership and use of the assets it is predicated on, A: proper assessment and identification; and B: effective management, control and review. And none of this is possible without information. Sustainability, scalability and security are now the name of the game and to play, manufacturers will require more visibility and control over their operations. This includes the ability to reconcile multi-site workflows and to ensure suppliers conform to internal policies and standards. Security is another hot topic and it should be given the recent uptick in security breaches worldwide. As industrial valuechains become more integrated and global, bad actors simply have more touchpoints along the connectivity chain to steal intellectual property, disrupt operational processes and compromise SCM, ERP, human resournces (HR), customer relationship management (CRM) and other cloud based enterprise systems. Engineered from the ground up, the latest encryption technologies are baked-in at every point of the Cloudleaf solution, from our sensors, gateways, to our wireless connectivity, storage and processing services. We safeguard enterprise IP resources across the value-chain. Cloudleaf in Action

3. Factory operations Compromised productivity - Why am I missing my production goals? In today’s competitive markets, manufacturers are compelled to run tight ships. Over time, a little slack, here and there can add up to a lot of waste. Assets that are improperly utilised create potential for waste and misuse on a mechanical level. Poorly maintained equipment or tools can result in safety issues, delays and compromise the quality of finished goods. In addition, legacy operations without an IoT asset tracking solution in place, make it almost impossible to generate operational insights on the fly, let alone to run complex analytics models. Without access to real-time asset location and condition data, they are operating at a significant competitive disadvantage. The result is an over-dependence on manual operations that increase overall complexity, compromise worker safety, lengthen the audit process and grind production workflows to a halt. Cloudleaf enables manufacturers to dynamically maximise efficiency of each asset over its native reliability curve to achieve maximum output at the lowest cost. And by connecting each asset to our Sensor Fabric mesh, manufacturers can capture unique insights on the finer points of running highly efficient operations from multiple sources, including back-office enterprise resource planning (ERP) and supply chain management (SCM) systems, artificial intelligence (AI) analytics, and their tenured highly-skilled staff.

©2017 Cloudleaf. All Rights Reserved

Cloudleaf is an end-to-end cloud solution for monitoring, managing and optimising complex distributed-asset ecosystems. Cloudleaf’s value-proposition represents a paradigm shift in enterprise-grade IoT adoption and usage across internal and third partner facilities. By reducing IoT deployment from months to days and adoption costs to a tenth of typical IT system implementations, Cloudleaf is able to deliver immediate and sustained return on investment (ROI). Sensor Fabric is our flagship edge-to-cloud solution. It effortlessly gathers, compiles and analyses streams of live telemetry data from a broad range of diverse enterprise operations across indoor, out-door and in-transit workflows to provide real-time actionable insight. Patented sensors, gateways, location-aware cloud services combine to solve real-world challenges in manufacturing, transportation and pharma by helping managers to easily track, manage and optimise the flow of people, things and processes. Use cases range from simple supply-chain asset monitoring applications to managing complex assemblies, work-cells and works-in-process as they traverse the value-chain. Take a deeper dive and learn about the nuts and bolts of the Cloudleaf Sensor Fabric Intelligent Mesh and how it’s solving operational challenges within the four-walls and without on page 51 of this issue.

IoT Now - December/January 2018



Pre-packaged solutions accelerate IoT adoption Cumulocity IoT is an innovative software platform that addresses the market demand for easy, fast, and scalable IoT solutions. It combines the power of Software AG's Digital Business Platform with Cumulocity’s product portfolio. Functionality includes the ability to monitor and analyse streaming IoT data; cloud, on premise, edge and hybrid deployment; and a range of pre-packaged IoT solutions such as condition monitoring, predictive maintenance and track and trace. Andrew Brown, the executive director of Enterprise and IoT Research at Strategy Analytics, discusses this open, application-centric approach to Industrial IoT with chief executive, Bernd Gross Andrew Brown: Cumulocity has an impressive track record and the company has been a leading vendor of device and application management platforms since 2010. Why did you do the deal with Software AG? Bernd Gross: We had been and continue to be very successful with our platforms, but we operate in a very dynamic market and by 2017 it was clear that we needed to scale our offer and become a global solution provider. Moreover we needed to do it quickly so that was one of the reasons why we did the deal. Software AG currently has offices in 70 countries around the world. The second reason is their rich portfolio of software products that complement our offer, one of which is WebMethods, an advanced integration engine that enables seamless interoperability between the operational technology and information technology domains. The former is the domain where data are generated and the latter is the domain where data are consumed. Another key complementary product is Apama, a platform that allows organisations to analyse and act on high-volume event stream data in real-time.

The third reason comes from the emerging need for IoT platform providers to be more open about the performance of their IoT specific business offer. Software AG is leading this approach and has created a separate business unit that has enabled developments such as prepackaged solutions. These solutions reflect the way that the IoT market is maturing and they are facilitating the growing trend away from

expensive, time-consuming in-house or bespoke IoT solutions. AB: How successful have you been with this approach and can you also indicate its relevance to the Industrial IoT sectors that you target? BG: We have been very successful. For example, Siemens has selected our technology in order to complement MindSphere, which is a powerful IoT operating system that has data analytics, connectivity capabilities, plus tools for developers, applications and services. In addition ADAMOS, that stands for ADAptive Manufacturing Open Solutions, a strategic alliance for machine and plant engineering, chose our IoT technology after an extensive evaluation process. Alliance partners include DMG MORI, Dürr, Homag, ZEISS as well as ASM PT. The objective is to bundle knowledge in mechanical engineering, manufacturing and information technology. ADAMOS is set to become a global standard for the industry. It combines up-to-date IT technology and industry knowledge, thereby enabling engineering companies to offer tried and tested solutions for digitally networked production to their customers. These and other wins from leading companies such as Bosch indicate that Cumulocity is setting the de facto standard for IoT software platforms and is addressing the upcoming needs of the industry. AB: How do you connect operational technology (OT) with information technology

When Cumulocity entered the IIoT arena in 2010 we identified the need for historic machine data to be analysed over relatively long time periods in order to realise increased productivity


IoT Now - December/January 2018

Bernd Gross, Cumulocity

and combine the IoT insights that come from data analytics with business processes? BG: This is the key topic for the OT and IT communities. They have different mindsets: the OT focus tends to be on quick wins, it is short term; ITâ&#x20AC;&#x2122;s focus is strategic, it is long term. These conflicting requirements are resolved by decoupling the two domains while enabling seamless interoperability. Enabling seamless connectivity between IT and OT domains is a mandatory IoT requirement. Seamless fusion is realized by middleware and an integration platform, normally located in the cloud or data centre. The OT benefits that come from seamless integration with IT derive from the use of a more efficient, better scalable, well managed and secured infrastructure onto which numerous OT applications are layered. They include predictive maintenance as well as remote asset monitoring and management. The IT benefits include secure real-time communication with the enterpriseâ&#x20AC;&#x2122;s assets while retaining the requisite efficiency for creating, scaling, maintaining and securing the infrastructure. AB: How do you see the market evolving in the nearto medium-term? BG: When Cumulocity entered the IIoT arena in 2010 we identified the need for historic machine data to be analysed over relatively long time periods in order to realise increased productivity, for example, by creating preventative maintenance programmes. This was followed by the need to analyse real-time data at the edge, thereby generating real-time, insightful business intelligence that allowed decisions to be made in the moment. In the near-term we are witnessing the need for predictive maintenance programmes that detect and pinpoint potential issues before they occur. Early identification helps companies deploy limited resources more cost effectively, maximise equipment uptime and enhance quality and supply chain processes, thereby ultimately improving customer satisfaction. Looking further down the road there is a clear and compelling need to address the challenge of machine learning and artificial intelligence. This is not an easy task, but because the company has lived through the development cycles that have taken place in the last eight years we are able to continue to extend and expand the functionality of our platform. In a nutshell, the platform is intrinsically flexible and future-proof due to its open architecture: this will allow Cumulocityâ&#x20AC;&#x2122;s offer to evolve in line with the market.

IoT Now - December/January 2018



Leave no machine behind â&#x20AC;&#x201C; how to help customers get to vital IoT data Andrew Brown, the executive director of Enterprise and IoT Research at Strategy Analytics, interviews Telit executives Bill Dykas, the product manager for IoT Platforms, and Ricardo Buranello, the global vice president of sales for IoT Factory Solutions, to discuss what the company is doing in IoT and how it is addressing the needs of its customers

Bill Dykas: Telit is a highly diversified company. We have many different technologies for supporting customers around IoT; including hardware modules to help customers wirelessly connect their IoT applications, with technology including 2G, 3G, 4G, Cat M1, NB IoT, to short range such as Bluetooth and ZigBee to Wi-Fi, LoRa, Sigfox, GPS and GNSS. This gives us a deep view of the industry and we now have more than 7,000 customers using our technology. On top of the hardware, we have our software and services business and are a global MVNO. We approach this industry from multiple angles, from companies that are building consumer goods, to tracking devices and smart meters, to security systems/smart home alarms, through to the industrial IoT where companies are integrating IoT on the shop floor in large enterprises. In the last 10-15 years, the market has changed dramatically. Around 15 years ago, the market was highly concentrated among fewer players, while today the market is highly fragmented. For example, our revenue comes from seven thousand customers, not a few. This is going to be the reality for IoT for a long time. Larger companies are trying to innovate or develop products using IoT concepts, or sell the benefits of IoT based on new revenue generation or reduced costs. Consolidation is happening in the IoT market, as larger companies are investing in this space. The exposure that these companies have brought to IoT, coupled with our experience in the

industry, will help us expand our presence in the market. In terms of our deployments, the efficiency and relative return on investment is clear. AB: What companies is Telit working with to bring solutions to market? Why are strategic partnerships so important when you are a customer looking at deploying an IoT solution? RB: Partnerships are critical to helping fuel our future growth in the IoT market. We have many examples of important partnerships, but some of our key partners include SAP, TechMahindra, Wind River, Cisco and Mitsubishi. SAP offers our software platform to their customers. We work closely with SAP to offer our technology to every customer with whom SAP is engaged. We offer our device management to their customers to simplify IoT data collection and normalisation and quickly send that data to target SAP databases and business applications. It allows customers to fully integrate things with web-based solutions, mobile apps and enterprise systems. For example, a car manufacturing production line has multiple machines that connect to SAP systems. Connecting these systems to enterprise software used to be very challenging. However, using our technology, customers can now get that machine to communicate with an SAP system with two button clicks, reporting variables such as productivity levels, problems, proactive maintenance or other issues in the manufacturing process, and SAP sees enormous value in that. We offer additional capabilities to SAP and other customers as well. These include not only connecting machines to enterprise systems on premises, but also in the cloud. Once the information is in the cloud, a company can have


Andrew Brown: As one of the leading IoT hardware and software vendors for more than 20 years, can you give us insight into what Telit customers are looking for from an IoT solution and how has it changed?


IoT Now - December/January 2018

access to their information. This means that an engineer no longer has to fly halfway across the world to fix equipment-but can see the diagnostics information on the screen and handle the maintenance remotely, which is vastly more cost efficient.

relational databases systems, enterprise resource planning (ERP), manufacturing resource planning (MRP), manufacturing execution systems (MES), and SCADA applications. Built-in standard device drivers and enterprise connectors make the overall integration easy.

TechMahindra is a huge system integrator. We have a close relationship with them where we sell and implement solutions with their customers. Wind River, an Intel company, is another great partnership that we closed this year. Wind River is utilising Telitâ&#x20AC;&#x2122;s IoT platform technology for its device management platform, which it has built into its Helix Device Cloud Platform, incorporating our deviceWISE capabilities, such as remote monitoring, software over-theair/firmware over-the-air updates, alerts, rules, update campaigns, data management and monitoring.

There is little value unless the data can be read by the analytics platform. Today, if you want to use IBM Watson, Microsoft Azure or any other cognitive platform on the market, the hardest thing is to get a machine to talk to that platform. We say that we can get any machine to talk to any platform, usually within a day. However, the most impressive thing is not only that we can connect new machines, but that we can connect old machinery as well, that may be vital to a process. For example, by reading digital or analogue I/O or sensors we can translate the output into a format that can be read by IBM Watson for example. Our mantra is: leave no machine behind. Our value is in connecting any enterprise device to any enterprise platform. Multiple systems will co-exist, and it is our job to help them talk to each other. People forget that there are two edges: the edge devices on the network and the edge of the enterprise, and the ability to move data crossover between the two.

This year we also partnered with Cisco, which is looking to bring data from operational devices over the network. They validated our deviceWISE Asset Gateway Software on their IOx-enabled edge computing gateways, namely, Cisco ISR829 Industrial Integrated Services Routers and Cisco IE4000 Industrial Ethernet Switches and the software is now available as an integrated Cloudready industrial IoT solution. These highly-secure and ruggedised Industry 4.0 appliances provide edge intelligence for industrial asset management, condition-based monitoring, predictive maintenance and other mission-critical IoT applications across industrial markets around the world. We have also partnered with Mitsubishi to embed our software into their systems, for example, the Mitsubishi MES Interface IT lets customers integrate manufacturing assets with enterprise systems using the Telit deviceWISE IoT Platform, which is embedded in the interface to enable developers to use APIs to connect and integrate with production machines using existing enterprise IT systems. We also have a range of other regional partnerships. We recently closed deals with new partners in France, Brazil, Mexico and Colombia, in order to have local reach with important system integrators. We are also actively looking to develop relationships, not only with system integrators, but also with technology alliances, that help build-out key solutions, for example, analytics platforms. AB: In our research, we have seen customers wrestling with how to tackle the future data tsunami and integration of IoT data into their enterprise systems. How does Telit help customers handle those challenges? RB: We are heavily involved with partners and clients to connect their OT and IT. For example, when we go to a customer and say we can make a Siemens PLC (programmable logic controller) talk to a Mitsubishi PLC or other OEM PLC, we are able to offer that off-the-shelf, as our capabilities are built in, and we can get different OEM PLCs to connect just by identifying the tag numbers. The value to customers is immediately clear. With partners, we can connect PLCs and integrate production machines and processes with

IoT Now - December/January 2018

Our mantra is: leave no machine behind

We are in a good position in the ecosystem; we do not compete with large enterprise software or system integrators, but we are an enabler that helps move data into premise, cloud or hybrid environments. We can put Telit deviceWISE and our Telit IoT Portal in any of those environments, for example, some regulated customers need to deploy on premises for specific reasons - and we can meet their needs wherever they want to deploy. In terms of our vertical reach, we are agnostic whether present in car-maker production lines, pharmaceutical (data collection) or security (connecting alarms to the network), we have the potential to grow across the whole industry. AB: What is the long-term, single most important aspect in IoT, for customers to think about? RB: My answer might be a surprise, but IoT is not really the focus. Our customers are looking for ways to accelerate business outcomes, and transform their business. The shift to become a digital business is driving all enterprise today, and Telit plays an important part in enabling their transformation. The IoT brings endless possibilities for a company to become more efficient, reduce cost, and create new revenue streams. However, customers have learned over recent years, that the complexity of bringing all these things to life is far greater than they expected. A company must define the outcomes they are attempting to achieve first, and then start at the edge. Consider the enormous, complex, and diverse nature of the things that are part of your plan. This was something that many took for granted in years past, but now most large enterprises realise they need genius level expertise at the edge. This is part of the Telit DNA, itâ&#x20AC;&#x2122;s where we started as a company nearly twenty years ago, and where we thrive as a partner, and trusted advisor for some of the largest brands in the world.



Low power means long range coverage for industrial sensors Andrew Brown, the executive director of Enterprise and IoT Research at Strategy Analytics, recently interviewed Matt Bacon, the marketing and communications director at Actility, to discuss the company’s activities in IoT; its network, partners and customers and its efforts in industrial markets. Actility is a founding member of the LoRa Alliance and offers low power wide area (LPWA) infrastructure with its ThingPark IoT communications platform. The platform provides LoRaWAN longrange coverage for low-power sensors used in multiple vertical industry applications

Matt Bacon, Actility

Andrew Brown, Strategy Analytics

Matt Bacon: To begin with, it makes sense to explain what we do at Actility and how we help our customers in IoT. Our core product is the ThingPark communications platform, which was initially focused on LoRaWAN, but will shortly also support licensed 3GPP technologies; first LTE Cat M and then narrowband IoT (NB-IoT) for customers. With the platform, we manage data end-to-end, from the sensor via the gateway to customer applications in the cloud. We are able to handle various additional functions such as protocol translation, if required, also ensuring devices are correctly provisioned and sending their data packets end-to-end. We are not an analytics or visualisation company; we offer key ingredients in a complete IoT solution created by a range of partners. Our initial customers were network operators who chose us to build nationwide LoRaWAN networks in order for them to resell connectivity to their customers. They used ThingPark to manage the LoRaWAN component of their network. There are multiple applications that our customers, like KPN or Orange are enabling through connectivity for their industrial customers. For example, one industrial customer manages thousands of rat traps throughout The Netherlands. Connect them with LoRa and the traps only need to be checked and emptied when they have actually caught a rat, so there are far fewer truck rolls required, which dramatically improves the overall total cost of ownership (TCO) of the project. Our partnership with Inmarsat has enabled the first globally available LoRaWAN IoT platform and we are supporting the company in building smart city applications in Kigali in Rwanda. In the same country, we are also working with Inmarsat and Carnegie Mellon University on a mountain tea plantation and processing facility. There, IoT will deliver agricultural monitoring such as soil moisture levels, but also precise temperature and humidity monitoring in the processing facility, which need to be monitored and controlled to ensure the best possible tea.

We also handle more traditional plant monitoring projects, such as the work we are doing with IBM Watson and Cougar Automation, a UK systems integrator, for RS Components. RS has a large warehouse with thousands of metres of conveyor belts. It ships up to 44,000 parcels a day, which are moved by conveyor belts. As a parcel drops from one belt to another, it can marginally knock the belts out of alignment. As this is repeated with thousands of parcels, the belt moves to the point where there is a risk that it may jam and break. It is essential the belt alignment is monitored and reset before it breaks, as downtime is incredibly costly. In these large warehouses, it’s also possible to monitor the stratification of air temperature; as warm air rises, the workers at ground level end up being cold, while the warm air gathers under the roof. Using sensors connected via our network, RS will be able to monitor the temperature at several heights in the warehouse, and control fans that push the hot air downwards and homogenise the temperature in the warehouse, not only providing a more comfortable working environment, but also saving significant energy costs. It’s incredible how diverse the range of industrial applications really are, as well as how they vary in complexity. AB: What is Actility doing to help industrial customers enable their IoT solutions? MB: There are a number of ways we are supporting industrial customers in IoT. For example, we have a full end-to-end business in energy and utilities. We run a demand-response system for energy grids in France, Belgium, the Netherlands and soon Germany. Grid owners need to secure their grids to ensure that they can handle spikes in demand or power surges, so we provide a platform that sits in the middle of the grid between the owners and industrial companies who are consumers or generators of energy. If you have a refrigeration warehouse, for example, it consumes an enormous amount of energy, but it also has considerable thermal inertia, so it is possible to turn off the power for a few minutes at a time without any impact on the

Andrew Brown: What are the key IoT applications that Actility customers are implementing in industrial environments?


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business. Through our platform we are able to control energy resources and improve management of both energy demand and additional supply – this is called flexibility. Some of our customers have energy reserves, for example at Orange in France, exchanges have backup batteries for redundancy, to keep the network functioning in a mains power outage. But that emergency capacity can now also be monetised by Orange: we have controllers that can make a request for additional power from those charged but dormant batteries, so that for a short period power can be fed into the grid, rather than taken from it. We can make this energy flexibility available to the grid. As a service, it is much more than a technology business, involving planning, forecasting and bidding in the emerging flexibility market. Another one of our new key capabilities is location and tracking out of the box. In a LoRaWAN, the signal from any device is picked up by a number of gateways. As long as the network knows what time a signal is picked up by each gateway, it is possible to triangulate that to a location with an accuracy of 40-50 metres, perhaps slightly less in dense urban environments. There are multiple use cases for this around geofencing; from cable drums to enterprise fleets, to track those assets to a specific depot or location, for example. Earlier this year we acquired a company called Abeeway which specialises in GPS trackers connected over LoRaWAN. LoRaWAN is used as the communications network for simplicity – it has no SIM or subscription required – but GPS is used for higher levels of accuracy. Abeeway also has some patented IP around a technology we call low power GPS, which is a LoRaWAN equivalent of AGPS (Assisted GPS). The network provides key information to the device that is preparing to make a fix, which means that the GPS can be active for a shorter period of time and acquire fewer satellite signals. The position calculations are then processed in the cloud. All of this massively reduces the battery impact, while still providing GPS levels of accuracy – in many cases under ten metres. If a standard GPS offering has a one year battery life and pure LoRaWAN has a ten year battery life, this solution could give up to nine years. Obviously that is variable depending on what you want to track and how often it activates the GPS, but those are the typical orders of magnitude. There are other opportunities in location, such as integrating Wi-Fi sniffing with the Abeeway solution, which can offer even higher levels of accuracy, such as specific pallet locations or where, in a storage rack, an item is located. It also offers global scale, for example the movement of parts through an entire supply chain, from manufacture through the transportation network to the specific part in a warehouse, which could be ideal for companies with global supply chains such as Boeing, Airbus and Jaguar Land Rover. Through our distributor and reseller partners, we offer an optimised, easy to deploy enterprise end-to-end IoT communication solution that is equivalent to our carrier-grade platform in terms of its resilience, reliability and scalability. We can run thousands of sensors and thousands of gateways, with simplicity designed into the offering. This product will enable our partners to deliver complete IoT solutions for enterprise end users. We also provide ThinkPark Market, which is our eCommerce platform, enabling solution providers to buy sensors and devices that have been interoperability tested with a ThinkPark-based network, so you can be sure they’ll work out

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of the box. ThinkPark Market connects buyers creating IoT solutions with sellers offering devices from anywhere around the globe, enabling partners to use over 30 currencies in different countries supported by our partnership with US payment provider Stripe AB: How well is LoRaWAN suited to IoT in Industrial environments and how do you support customers using alternative networks? MB: There are a number of ways that LoRaWAN is an optimal IoT connectivity technology – not just in industrial but in multiple environments. Unlicensed spectrum and long range reduce start-up costs; low power and long battery life keeps the cost of ongoing maintenance down. Overall the TCO of any for any project is minimised. An LPWA network requires far fewer gateways to achieve complete coverage with good indoor capability and reliable location compared with number required for a cellular network. It can also be deployed in remote locations where there is no cellular coverage at all. A small city can be covered with a few tens of gateways, or you can densify for deep indoor coverage which will reach into basements to connect smart meters, for example. You can also use picocells to fill in coverage and combine external LoRaWAN gateways with indoor picocells into a single network. In a smart building, the flexibility of the radio network allows devices and sensors to be installed wherever they are needed, rather than being constrained by access and installing cabling. Since the technology uses unlicensed spectrum, there are no regulatory barriers or hidden costs to stop a company getting up and running with IoT. In smart city applications, for example, the network may be put in place to support or upgrade a single vertical application, such as smart street lighting, but once the network is available, it is relatively straightforward to build applications for other companies or functions connecting to the network, or create an IoT platform for your city as a service to its citizens or businesses. As I’ve said before, we originally got into this business to help carriers extend their IoT networks with LoRaWAN. But as time has gone on, we now see other kinds of communication providers – TV companies like Digita or Ceske Radiokomunikace, or cable operators like Comcast, for example – becoming IoT network providers. Now we also have customers like NNNCo in Australia that are greenfield start-ups, coming into the business purely as IoT network operators. AB: No company can do IoT alone. Could you tell us who Actility partners with to enable industrial solutions? MB: We work with providers of all scales on the connectivity side, such as Orange, KPN, Proximus and Inmarsat. With Inmarsat we have a globally available platform. We also work with industrial solution providers such as IBM and Cisco to support their solutions, as well as many local system integrators and partners on a project by project basis. What we have learned is that no IoT project can be delivered alone. You need domain experts, integrators, connectivity experts – it’s not just plug and play, you also need radio planning – and ecosystem experts. Every project is a learning process and it’s challenging to get everything you need offthe-shelf. Our goal is to make it simpler and more transparent to deploy IoT solutions by partnering with Actility.



How to use Industrie 4.0 to drive the production of the future Eberhard Klotz is the head of the Industrie 4.0 campaign at Festo, a supplier of automation technology and industrial training and education programmes. In this article he discusses the company’s activities in IoT, its view of production of the future, benefits for original equipment makers (OEMs) and end-users and partners in industrial markets with Matt Wilkins, a senior analyst of IoT Research at Strategy Analytics

Matt Wilkins: Industrie 4.0 is a key aspect of the implementation of the Internet of Things in the industrial market, what does Industrie 4.0 mean to Festo? Eberhard Klotz: At Festo we view Industrie 4.0 as the process through which we get to the production of the future. Festo has a holistic view of the changes in the production world, considers different perspectives and, in addition to technology, also takes other key points into account, such as the interaction between man and machine, and the issue of training. The real and virtual world are growing increasingly closer: modern information and communication technologies are merging with industrial processes, increasingly changing the production landscape and the interaction with individual customers. Industry 4.0 brings together various activities under one umbrella and describes the change that is imposing new requirements on production systems, machines and people in many areas. Festo is part of the Industrie 4.0 steering team that includes government ministries, several official bodies, along with Siemens, Bosch, SAP and Deutsche Telekom.

downtime and optimises maintenance procedures and mobile maintenance. Essentially the faster we can be aware of an issue and analyse it, the faster we can implement a repair before a minor issue becomes a major one. Digital twins and a virtual set-up of a smart factory also allow pattern matching and detecting random errors, thus optimising downtime as well as process optimisation online. MW: If Industrie 4.0 is the process which takes us to the production of the future, that must surely require a constant focus on refining and developing? EK: Festo has been at the forefront of factory automation for many years. The research department helps shape the production systems of the future. So it is looking at mechatronics, the latest simulation technologies, microsystem technology and intelligent components for Industrie 4.0. In our view innovation management creates the necessary framework to turn good ideas, knowledge and technology into successful commercial products.

EK: The first thing is that production systems will be fully connected. There will be intelligent, selfregulating and self-controlling components for plug-and-produce. Production plants will be highly flexible, allow for economical manufacturing of small batch sizes, fast balancing of the workload in a production network – including logistics, and fast adjustment to the orders in hand.

Our research activities include the ENTOC (Engineering Tool Chain for Efficient and Iterative Development of Smart Factories) research project, where the aim is to significantly reduce the time taken and complexity of planning the engineering process for a given production plant. The ENTOC project is looking at how factory processes can be planned and optimised virtually. For example, how sequences of processes can be optimised and programmed before they are actually implemented on physical machinery. For the ENTOC project Festo is working with Daimler, EKS InTec, EDAG Production Solutions, tarakos and TWT GmbH Science & Innovation, as well as the Institut für Automation und Kommunikation e.V.

Finally, there will be comprehensive condition monitoring which helps to avoid or reduce

Another example is the ARIZ project (Arbeit in der Industrie der Zukunft / Work in the Industry

MW: What does production of the future look like?

Festo has been at the forefront of factory automation for many years. The research department helps shape the production systems of the future


IoT Now - December/January 2018

We believe that OEMs can improve their machine offerings by using the latest technology upgrades and cloud connectivity in Industrie 4.0 host environments Eberhard Klotz, Festo

Matt Wilkins, Strategy Analytics

of the Future), which is looking at safe human/robot cooperation in production plants. While much work is being done on the role that robots will play in future production, the role of humans will also be a key factor. With ARIZ we are researching how humans can work on the same production lines as robots, but without the need for protective cages, with robots incorporating sensors that monitor their movements. So if a human comes too close, the robot comes to a complete stop. The ability to have a flexible and adaptive production assistant – the robot – working safely and co-operatively with humans, is the goal. For the ARIZ project, Festo is working with robomotion GmbH, a Human-Computer Interaction Centre at RWTH Aachen University, the Institute for Management Cybernetics e.V. at RWTH Aachen University, theInstitute of Information Management in Mechanical Engineering at RWTH Aachen University and the Centre for Learning and Knowledge Management at RWTH Aachen University.

module. Our target was to optimise air and electrical current consumption by dedicated on/off switching cycles, depending on several criteria. As a result, the new solutions – in conjunction with other actions such as the use of solar panels – allow us to reduce energy usage by up to a third compared to the old plant.

MW: Have you implemented Industrie 4.0 in your own factories?

EK: Across our solutions we partner with a variety of companies which allows end-users to derive benefits from Industrie 4.0. For example our solutions work with Microsoft Azure and SAP Hana allowing production data to be used in the cloud for analytics and enterprise resource planning (ERP). Our IoT gateways are able to transfer data to systems from Rockwell (Factory Talk), Siemens (MindSphere) and SAP (HANA).

EK: Yes, in our new Scharnhausen Technology plant, SAP HANA is already used by Festo which has resulted in us being able to implement process optimisations. As a company we support sustainability goals, such as lower energy consumption and less pollution. For example, we have designed and built an energy efficiency module that is a plug-and-play solution for pneumatic circuits, able to summarise, evaluate and analyse data using artificial intelligence (AI). This allows us to process the data inside the unit or give us the option to transfer the data to the cloud. However, to gain the maximum from this initiative, it was important not just to fit a module to new machines – which is essential – but also to older machines, where we had to retrofit the

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We believe that OEMs can improve their machine offerings by using the latest technology upgrades and cloud connectivity in Industrie 4.0 host environments. For example, the Festo Motion Terminal, the world’s first cyber-physical-system, can be used to make pneumatics digital, more flexible and communicative. Whereas end-users can improve their production through the use of cloud analytics to drive optimisation of business and production processes, higher operational energy efficiency by predictive maintenance and shorter downtime by better diagnostic support. MW: Who does Festo partner with to enable Industrie 4.0 solutions?

We recently announced a partnership with Huawei to explore the robot-as-a-service concept, to customise robots and automated services for specific manufacturing tasks, with robots and the cloud linked by 5G networks. On the other hand, Festo Didactic is a strong partner to private bodies, governments, schools and universities to ensure the next generation is Industrie 4.0 ready.


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MANUFACTURING Is IoT delivering factory ï¬&#x201A;oor efficiency?

Analyst Report Prepared by Strategy Analytics

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> our software e powers our customerrs' LPWA A networks, connec cting IoT sen nsors to cloud app plications > our ecosystem connects c com mpanies to help crreate IoT solu utions for their cu ustomers

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ANALYST REPORT 30 The IoT landscape

35 IoT applications in the industrial world


36 The top 5 obstacles to deploying IoT in manufacturing

Challenges and opportunities for IoT

33 Replacing manual process 34 Strategy Analytics 2017 Enterprise IoT Deployment Survey

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37 Conclusion â&#x20AC;&#x201C; Digital transformation can allow a manufacturing firm to draw on data from all parts of its activities



The author, Matt Wilkins, is a senior analyst for IoT Research in the Global Wireless Practice at Strategy Analytics

IoT enables automated monitoring and more analytical approaches to operations by manufacturers Strategy Analytics views the Internet of Things (IoT) as a significant opportunity. It can and will bring great benefits to businesses of all kinds in the coming decade. However, to refer to it as a market in the trillions of dollars is overly optimistic. Claims that the IoT market has progressed from tentative to mainstream are not supported by Strategy Analytics enterprise deployment research as yet

The benefits of IoT are increasingly being recognised by business decision makers. There remain many challenges and roadblocks to IoT, but none are insurmountable with the right partnerships, the appropriate understanding of business motivations and requirements and an ability to articulate the benefits beyond technobabble. Over the next ten years, Strategy Analytics forecasts global IoT revenues to grow from US$185 billion in 2017 to US$292 billion in 2022, as illustrated in Figure 1.

The IoT landscape The industrial and manufacturing segment includes manufacturers of goods and equipment who take a number of raw materials, and through the use of machines and production lines, create a finished product composed of those primary materials. In the context of our forecast for the global IoT market, we believe the Industrial vertical market represents an opportunity of around 8% of the market as illustrated in Figure 2. ▼

Figure 1: Global IoT Revenue Forecast 2017 – 2022

consulting firms, who can help businesses plan, test, deploy and maintain an IoT deployment.

Figure 2: Global Industrial IoT Revenues in 2025

Source: Strategy Analytics

Those revenues are made up of hardware, connectivity and services; and it is the deployment of services in IoT where Strategy Analytics sees the major revenue opportunity. In 2022, Strategy Analytics’ forecasts that IoT service revenues will account for 65% of total global IoT revenues. That’s not to say hardware and connectivity components lack value, but rather that there is tremendous potential for enterprise software, value added resellers, system integration and


Source: Strategy Analytics

IoT Now - December/January 2018

Measuring In the world of manufacturing, without measurement there would be chaos. Going back to the industrial revolution of the late 1700s, the transition from hand production to machine production ushered in a new era of using machines that conducted specific operations on specific raw materials. The result was higher output and greater consistency than anything that could be produced by hand. Manufacturing technology has continued to improve, with machines becoming faster, more reliable, more accurate and adopting automation, such that in many cases once setup, a machine needs only occasional human monitoring to ensure the continuation of a manufacturing process. However while modern manufacturing is almost completely unrecognisable from the early days of the industrial revolution, many of the same problems still exist today. Machines can and do breakdown from time to time, requiring human intervention to find and then fix the root cause of the problem. The supply of raw materials remains as crucial as it ever was; ranging from materials that the machine works on in the creation of finished goods, through to enabling materials such as oils and coolants. Infrastructure remains a crucial element in the industrial world with a continual supply of electricity – or other energy generating material or chemical such as coal, oil or gas – required to power machines, lights, extraction and cooling fans among others. A power failure can often result in the stopping of the production line. As production volumes have continued to increase, enabled by the development of faster machines and more efficient processes, the need to monitor the manufacturing process has also risen. For example, if a supplier has manufactured a part beyond the agreed tolerance in a specified dimension, it will not fit its intended purpose and be rejected by the buyer. But measurement does not begin and end with certain parts of the manufacturing ecosystem, at least it shouldn’t. Therefore it is here where we begin to see why IoT is already firmly entrenched in the industrial market, but also why IoT has a part to play going forwards.

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Monitoring and measuring has largely been undertaken to ensure that goods coming in to the production – or manufacturing – system are to agreed tolerances and dimensions, that machines are operating to specific parameters, resulting in goods coming out of the manufacturing system that are also to the parameters agreed with the downstream customer. In an ideal world, all problems would be discovered by the manufacturer of the goods, but issues can be discovered by the downstream customer once they have taken delivery. The reality is that measurement takes many forms, ranging from manual recordings made on paper, through to digital measurements stored electronically. Paper-based measurements and recordings are susceptible to human error, for example a worker completing a form after a long shift may write a five instead of an eight by mistake, handwriting may be misinterpreted and a worker may simply forget to complete a usage form after using a specific tool while rushing to start a new process. Digital measurements stored electronically may be stored in a format that is incompatible with existing computer systems, or for which the expertise to transpose or convert them to a usable format may not exist within the organisation.

Challenges and opportunities for IoT The reality is that the Industrial market includes a variety of companies, ranging from small to large, from fully-automated to manually-dominant and those with strong data monitoring and analysis functions, to those who do not. While the implementation of IoT will perhaps be easier for large industrial companies, that is not to say it holds no value for smaller organisations, but rather that smaller companies will have fewer resources available to devote to IoT. ▼

The Industrial vertical is clearly competing with other major segments, such as security, automotive, primary processing, utilities and other vertical markets; some of which will generate larger IoT revenues in 2025, such as automotive which is set to account for 15% of revenues, or more than US$50 billion. So while the industrial market isn’t going to be the largest IoT vertical market, there is a significant opportunity in adding additional instrumentation to operational functions with IoT, from adding traceability to raw materials in the manufacturing process, to monitoring the production line and preventing downtime through preventative maintenance.

Figure 3: IoT Legacy Challenges in Manufacturing

Source: Strategy Analytics



However, industrial IoT does offer a number of opportunities for companies to improve; but on the flip-side it will also present a number of challenges. In this section we outline these challenges and opportunities, as illustrated in Figure 4. In terms of challenges and inhibitors the first challenge is legacy integration and acceptance. The industrial segment is a strong advocate of the “if it isn’t broken don’t fix it” idiom, where specialist machines that perform a function are maintained and continue to be used for many years, often beyond a period whereby parts are easy to obtain. They remain part of the industrial environment because replacing them would cost hundreds of thousands of dollars, an expense which smaller industrial companies find it very hard to justify when the existing machine works perfectly. In short, the integration of IoT into legacy industrial machines is a challenge. Figure 4: Industrial IoT Challenges and Inhibitors

The Industrial market tends to favour wired connectivity, so with IoT pushing wireless connectivity this can represent a see change in the network infrastructure design. While the IoT implementation may or may not use cloud-based services – for example, analytics tools – the use of wireless networking may again lead to apprehension concerning the security of the wireless network. As with all IoT deployments, the issue of financing is key, with pro-IoT advocates within the company asking management to fund trials and ultimately full deployments. The challenge is to convince management for funding based on theoretical benefits which are not yet demonstrable in the actual facility. Quantifying benefits must always be able to show the correlation of operational improvements to the bottom line. Having gained management sign-off on funding for an IoT deployment, such as a trial, the next question is who will make it happen? At this point the issue of skills arises, specifically whether the company has the skills in place to design, develop, implement, fine tune and maintain an on-going IoT deployment. The level of skills required are considerable, ranging from system architects with a detailed knowledge of manufacturing environments, systems integration specialists who can facilitate the implementation of the hardware into the manufacturing environment, i.e. the shop floor – from sensors/ things, gateways, networking/connectivity, through to backend servers/storage and data analytics tools – to data analysts. The theme of fragmentation is one of the key issues the IoT industry as a whole must strive to deal with in an effort to simplify selection and planning. However, alliances and partnerships continue to be struck between different parts of the business world in an effort to broaden IoT capabilities and be able to offer a more options when engaging with companies looking to deploy IoT. The challenge in designing and developing IoT solutions for the industrial market is underlined by the varied list of partnerships being formed across hardware and software vendors, telecommunications firms, through to engineering and industrial companies.


In recent years we have been treated to an almost continuous flow of disclosures concerning high profile security breaches

Source: Strategy Analytics

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affecting millions of users, so the security of any systems and databases containing information of any kind, be it industrial, medical or consumer, is highly important in the proliferation of IoT. The security of IoT data concerns any device or any part of the IoT process flow where data is transmitted or analysed.

Figure 5: Industrial IoT Benefits and Opportunities

There is also the risk that the network could be susceptible to unauthorised accessed through which production line systems could be hacked. The mantra “protect the production line” rings loud here. If the network can be accessed, machines could potentially be hacked; the production process could be interfered with, and in the worst case scenario, halted. Poorly handled security in an industrial IoT environment could result in a severe lack of trust between partners, upstream and downstream.

Benefits and opportunities for IoT

Replacing manual processes The usage of a machine or tool that is tracked manually through the completion of a paper-based form at the end of an activity or shift can be replaced by the inclusion of an IoT module in the tool. The sensors in the module are able to detect movement indicating usage, as well as start and stop times for the usage. Shop floor operatives no longer have to remember to complete forms before and after using the tool, which after a particularly long activity may introduce human error in the specific times the tool was operational. While an error in manually recording tool usage times of for example, one minute on a particular day is not a big deal, the cumulative effect over longer period of time could result in the tool being used without having a recalibration or adjustment of some kind.

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Source: Strategy Analytics

Predictive maintenance The use of IoT to enable predictive maintenance is a key illustration of how IoT can improve industrial processes. One of the key industrial issues is that machines fail, and when they fail it doesn’t simply impact the job they are working on, it impacts the jobs before and after in the production line or process sequence. There are a number of benefits to predictive maintenance; machines and other equipment are monitored to prevent them failing, materials are not spoiled, and secondary damage does not occur – or is minimized – to other components in the machine because an actual failure has been prevented from occurring. With sensor data coming in from the manufacturing environment, one use that the data can be put to is to create a digital twin, which is a virtual representation of a physical asset which could be a specific machine from the ▼

However, there are also many opportunities in Industrial IoT, With the implementation of IoT deployments in the Industrial world, such as manufacturing environments, the addition of sensor-laden things promotes the ability to automate processes which were largely manual or relied on manual activities. Replacing a manual process, such as the tracking or monitoring of equipment usage with an automated process, can lead to both time savings as well as a reduction in errors



Digital twins allow the industrial firm to model the behaviour of a physical asset but without any risk to the physical asset. Being able to experiment and test on a virtual machine or system is a key benefit, because in the real-world manufacturing and industrial firms very rarely have spare machines on which they can test scenarios, or have the ability to take a machine out of the production line for testing purposes. The digital twin is not just confined to use for monitoring, optimising and scenario evaluation for existing machines and environments, but can also be used when a firm is evaluating expansion to a production line or facility. For example, if a firm is looking to increase production capacity by x%, digital twins can be used to allow the company to understand what the production capacity targets would translate to in terms of necessary machines and associated facilities and utilities. When implemented, predictive maintenance strategies cannot only allow the manufacturer to realize a more reliable operation, but also derive additional benefits as a result. Key among these is obtaining higher yields, which for the sake of this point we define as the percentage of quality assurance (QA) passed goods out of the total number of goods produced. Even though predictive maintenance can be used for manufacturing machines, it can also be used for machines that perform testing procedures on the finished goods. For example if the testing machine has suffered a failure, it may raise a false flag on goods which are perfectly acceptable. Being able to reduce spoiled finished goods, the yield increases as a result of the efficiency of the production line increasing. Therefore the manufacturing operation is spending wasting less time and materials on the production of goods which will not pass QA testing. Manufacturing environments have little leeway in waiting for a component or raw material to become available for use in production. Being able to track the location and expected arrival of materials in the supply chain is an extremely useful application of IoT such that downstream manufacturers have a greater knowledge of the supply chain and can react to


potential problems that may occur in the logistics of their supply chain.

Strategy Analytics 2017 Enterprise IoT Deployment Survey In 2017 Strategy Analytics conducted its annual Enterprise Survey, in which 1200 respondents located across four countries (UK, US, France and Germany) were asked a variety of questions concerning their activities and spending across a variety of technology themes, including IoT. A key area was the types of IoT applications that firms have deployed and are operating today, the results of which are illustrated in Figure 6. Figure 6: Top 3 IoT Applications used in Industrial Sector

Source: Strategy Analytics

Basic on/off commands were the top IoT applications deployed in the industrial and manufacturing vertical. This is as a strong indicator for how companies are using IoT to increase automation of basic tasks, with the benefit of reducing costs, whether they be energy costs or similar. Such apps do not necessarily have to be directly linked to the manufacturing process, instead being used to manage the facility, for example the control of lighting and heating or air conditioning systems, potentially yielding financial savings through optimised energy usage. â&#x2013;ź

manufacturing process. The digital twin allows a firm to use real data coming in from a specific machine for example, and model its operation in varying circumstances.

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Security functions were listed as the second most popular IoT applications within the industrial vertical, and when considering the financial value of the contents of the premises it is not hard to see why. Raw materials, finished goods, machines, spare parts, and tools to name a few, all have considerable value, therefore their protection and security is of considerable importance to the firm. Any theft or damage to the aforementioned items would almost certainly result in disruption to the ability of a facility to manufacture. When coupled with the fact that often manufacturing and industrial facilities are located in out of town areas, the ability to securely monitor a facility without need – or reduced need – for a physical security presence could present a further opportunity for cost savings.

such as large sophisticated industrial operations pushing the boundaries for IoT implementations, but the results from the 2017 survey illustrate how IoT is being used for automation, save costs, measuring and monitoring and to keep firms the right side of GRC requirements (governance, risk and compliance)

IoT applications that measure and control flow are very important when considering the effect that a bottleneck can have on the production line, particularly if other parts of the production line, such as before and after, are not aware of the bottleneck. This underlines the importance of measurement that we analysed earlier in this report. In a simple in-series production line, that is where one job takes place after the previous one is completed, the production line can only operate at the speed of the slowest part of the process. The ability to know when a process is taking longer than expected allows the production line to be adjusted as a result.

Figure 7: IoT Spending over the Next Five Years

Overall the top three IoT applications being used in the industrial world from the 2017 Enterprise Deployment Survey paint a clear picture that IoT is being put to use for relatively simple tasks at this point in time. Of course there are outliers

IoT Now - December/January 2018

Source: Strategy Analytics

For those who see no increase in IoT spending, it is likely the case that there is limited opportunity for IoT in their particular organisation, meaning there is a limit to how far it can be deployed throughout the organisation. We must also consider that is the cases of decreased or no change (to) IoT spending, the competitive environment will also play a part. If a company’s revenues are not growing or shrinking, then expanding funding for advanced technology-driven initiatives such as IoT will likely suffer. ▼

Another of the key applications was compliance with regulations, allowing firms to make sure they are adhering to rules and regulations concerning many aspects of the operation. The industrial world often makes use of dangerous chemicals and extreme environments, and the use of IoT can make it safer for employees and easier to monitor such situations so as the firm does not fall foul of regulations, potentially incurring a financial penalty as a result. For example monitoring the time a specific worker is exposed to a specific chemical each day, or the time the worker is exposed to environments with high temperatures.

When survey respondents in the manufacturing/industrial vertical were asked how their spending on IoT would change over the next five years, the answer was a resounding increase from over two-thirds of respondents. Tempering that enthusiasm somewhat was the fact that just under 30% of respondents expected IoT spending (as a percentage of IT budget) to stay the same.



While a big part of the messaging for IoT is to create new revenue generating services, Strategy Analytics’ findings for industrial and manufacturing indicates that companies are more focused on deploying apps that can help them save costs, as illustrated in Figure 8. Figure 8: Types of IoT Apps Deployed

There are several obstacles organizations are facing when deploying IoT in a manufacturing and industrial environment. As the data flowing around the network in a manufacturing environment contains important and sensitive information, it is no surprise to see that security is the primary concern when deploying IoT. Security is complex, covering the machines themselves, data flow over the network and data storage location – on-premises or cloud. Figure 9: Top 5 Obstacles to Deploying IoT in Manufacturing / Industrial

Source: Strategy Analytics

Asset utilisation and revenue generating services certainly show substantial penetration among industrial organisations and we expect them to increase penetration among IoT deployments over the coming years.


Source: Strategy Analytics

When over half of respondents highlight the same issue – security - it is something very important that the market has to deal with. As has been evidenced in the past few months, security is not just something that affects IoT but all IT systems. The WannaCry ransom attack affected great swathes of global IT only going to underline how susceptible a business is when it relies so heavily on technology. The Cost aspect is a key concern, with many firms entering into IoT deployments for the first time, costs are estimates and as projects, such as trials or deployments, take unplanned turns, so too can the financial impact of maintaining the trial.

More than two-thirds of respondents are implementing IoT to reduce costs; we see a strong indication that companies are using industrial IoT to help boost margins, which are under significant pressure in the ultra-competitive manufacturing environment. IoT allows a reduction in costs by automating processes that would otherwise need be carried out manually as discussed previously, such as recording machine and tool usage time that allows employees to focus on other highervalue activities. Factory environment monitoring for temperature, air conditioning and lighting can also benefit from automation, through saving energy.

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Conclusion The Industrial market offers many opportunities for IoT, where it can be put to work across a number of functions from automated monitoring to being used to allow firms to take a much more analytical approach to the management of the manufacturing function and the business. Monitoring and recording functions that were perhaps conducted by hand can be replaced by automated digital monitoring and recording that are not susceptible to human error. Digital transformation can allow a manufacturing firm to draw upon data from all parts of its activities, feeding into analytics processes from which insights are derived that can positively affect the optimisation and efficiency of the company. However, the growth of industrial IoT is not without its challenges. With the rapid growth of industrial and manufacturing activities in the Asia Pacific region, manufacturing firms in other regions have to compete against thin margins that Asianbased companies manage to achieve. Therefore, with cost a key issue in the profit margin calculation, any expenditure will come under a significant spotlight, whether it is staffing, operational technology upgrades or refresh, through to technology-driven initiatives such as IoT. The flip-side is that the benefits of IoT for the industrial market will be significant for those firms able to implement IoT solutions; such as the ability to use data driven insight for predictive maintenance resulting in reduced downtime. It is not hard to see the potential to predict a problem before it occurs as being a key selling point for IoT solutions in the Industrial market, with direct benefits of higher yields and increased throughput. IoT vendors must provide offerings that help firms overcome the challenges of selecting, implementing and using IoT in industrial environments, whether they are financially or technology related. Failure to do so will effectively push IoT into the domain of large scale and well-funded operations and away from smaller, less technically savvy firms.

About Strategy Analytics Strategy Analytics has been helping Global 500 companies chart prosperous routes through complex technology markets for over 40 years. We have built a singular reputation for providing timely, trusted deep dive market research based on subject expertise and proprietary analytics techniques. Our analysts specialise in tracking, analysing and forecasting markets that include: wireless devices, automotive electronics, consumer electronics, enterprise, entertainment and media, defence systems, telecommunications infrastructure, pricing and services. Our focused IoT and Automotive teams are industry-recognised sources of global market infrastructure, device, competitive landscape and value chain insights. Our consulting group conducts custom research projects, applying the company's proprietary analytics and vast data resources to client engagements. We are the only analyst and research provider with an in-house user experience practice and digital home observatory. Our clients include fixed and mobile operators, vehicle OEMs and their electronics suppliers, wireless device vendors, content providers, software providers, investment firms and regulatory authorities.

IoT Now - December/January 2018



Trackerando customers rely on robust, secure tracking capability

Innovation accelerated with Cumulocity IoT platform Trackerando allows its enterprise and consumer customers to accurately track and monitor vehicles, assets and people. The company upgraded to Cumulocity to provide an IoT platform which delivers carrier grade reliability and accelerates innovation Rising consumerisation, increased globalisation and a relentless focus on operational excellence are driving businesses that sell consumer products to innovate at tremendous speeds. Often consumers expect purchased products to have an online component or a set of applications that allow enhanced, digital experiences with products. At the same time global markets are causing tremendous product proliferation and competition for consumer purchases. Businesses creating consumer products must focus on innovation while relying on automated tools to enhance their operational excellence. As these businesses face market challenges, business risks and the need to simplify operations, they are choosing to layer technology-based services on their consumer products. Companies like Trackerando have innovated their businesses to take advantage of the connected, digital future. By embedding technology in their solutions, they are able to redefine the relationship between themselves, their partners and their customers. No longer are they strictly reliant on product-based sales, but they have used Internet of Things (IoT) technology to create a new customer experience that includes an online consumer service for their products.

The Cumulocity IoT platform allows its businessto-consumer (B2C) customers to rapidly,

efficiently and securely co-innovate with new customer offerings and create long-term relationships with their customers. Businesses are changing their strategies and technologies to be ahead of rapidly changing consumer demands. Trackerando is revolutionising their industries with IoT.

About Trackerando Trackerando, is a forward-thinking GPS tracking solution provider which combines high-quality products with individualised service. Trackerando offers transportation sector solutions for automobiles, buses, trucks and powerboats; and personal tracking for humans and pets. The company was founded in MĂźnster, Germany and has sales throughout Europe. Trackerandoâ&#x20AC;&#x2122;s customers rely on its high-quality, secure and robust tracking platform to track their vehicles, people and assets. However, Trackerando was spending considerable effort developing, upgrading and maintaining its in-house built solution. These efforts put significant pressure on the Trackerando development and product management teams to support new features and new devices in a stable, secure, rapid and reliable manner. All of the time spent developing, upgrading and managing the platform meant that Trackerando had less time to


Trackerando, is a forward-thinking GPS tracking solution provider which combines high-quality products with individualised service


IoT Now - December/January 2018

The Cumulocity IoT Platform delivered the Trackerando system in six weeks

spend creating revenue-generating, value-added services and delighting its customers. In addition, the personal tracking market has become increasingly competitive in the last five years with the proliferation of low-cost devices becoming available. Consumers continued to expect high quality products with exceptional user interfaces that combined simplicity and refined design elements. Trackerando needed to make a change to meet consumer demands.

Trackerando adopts the Cumulocity IoT Platform To reduce development and maintenance costs, increase scalability and flexibility and maintain security and privacy levels, Trackerando chose to implement a dedicated edition of the Cumulocity IoT Platform. Deployed in a German datacentre, this cloud-based solution allowed Trackerando to launch its new personal tracking service to the market and replace its older solution. This development would allow Trackerando customers to increase their levels of online service interactivity and engage with their products in a new digital way. This IoT solution powered by the Cumulocity IoT Platform provides Trackerando customers with easy set-up, real-time monitoring and tracking features, and a simple-to-use app. Setting up a Trackerando device is extremely easy with zerotouch registration – the Trackerando device auto-registers on the Cumulocity IoT Platform and is fully integrated to Trackerando’s online registration and payment systems. Once registered, Trackerando customers can use a set of smart rules to enable geo-fencing alerts, proximity-based rules and multi-modal alarms. Trackerando has built – and the Cumulocity IoT Platform seamlessly supports – an iPhone and Android smart phone app to provide a complete mobile experience to its customers.

Results Cumulocity’s IoT Platform solution allows Trackerando to successfully offer its IoT-powered tracking service to its

IoT Now - December/January 2018

customers. Customers have an ongoing relationship with Trackerando through the online service, thereby increasing customer satisfaction, longevity and loyalty. Since Cumulocity is fully responsible for the updating and management of its IoT Platform, the Trackerando development and product management teams can now devote their time to creating value-added services rather than spending countless hours on management of an in-house built platform. And because the deployment of the cloud IoT Platform is in a German datacentre, data management meets German regulatory requirements and allays consumer privacy concerns. End-customer benefits of a Cumulocity-powered Trackerando tracking solution: • User-friendly, graphical mapping tools with geo-fencing alerts, proximity-based rules and multi-modal alarms • Leading Cumulocity IoT platform future-proofed Trackerando for new, innovative requirements with tracking devices and other products • Seamless integrations to Trackerando payments system for simple ordering • iPhone and Android smart phone app In addition, the Cumulocity IoT platform provides Trackerando several key benefits: • Very fast time to market: Adoption of the fully customizable, ready-made software allowed the Trackerando-branded tracking service to be available in only six weeks. • Multi-tiered customer support: The flexible Cumulocity IoT Platform provides Trackerando the ability to structure multitiered, sophisticated customer accounts to enabled different usage profiles. • Cost-effective pricing model: The usage-based, monthly, Software-as-a-Service (SaaS) fee grows with customer additions. And set-up fees were fully transparent. Bodo Erken, the chief executive officer at Trackerando, describes the significant value that the company has found from its IoT solution. “Cumulocity's open IoT platform allowed our fully tailored solution to be delivered within six weeks and also allows us to easily extend to non-tracking services in the future.”



Why is the connection piece so hard? Increased usage of digital technologies by the manufacturing industry is inevitable but, while the shift is gradual, the pressure to go faster is great

When Hewlett-Packard Enterprise (HPE) and the Industry of Things World Conference conducted a survey to find out how successful industrial IoT (IIoT) projects have been in the last 12 months, the responses uncovered that only 53% of respondents thought their IIoT projects had met or exceeded goals. The remaining 47% said their goals had not been reached (Source: HPE

which blow up the original projected timeframe.

IIoT isn’t about companies buying a technology and suddenly they’re digital. It’s an entire architecture which encompasses an ecosystem with careful communication across various touchpoints within an organisation, all of which requires common standards as well as new technology architectures to create convergence of information technology (IT) and operational technology (OT).

2. Embrace complexity

One critical and common chokepoint is a lack of understanding about device connection. Even if devices are connected, there are often no simple tools to manage the devices in order to extract and transmit the data out of one language into another; for example the transmission and translation of programmable logic controller (PLC) data into enterprise resource planning (ERP) systems.

If you’ve ever engineered systems on the plant floor, you know there are those things down on the plant floor that are a nightmare to connect to and integrate with a variety of other applications. A simple data collection task can end up taking weeks of custom coding.

There is no single standard way of connecting everything together. Over time, the industrial plant floor has evolved as technology has changed. For better or for worse, this advancement also means more complexity and it is not going away; in fact, it will increase. As a result, plant floors have a mixture of device brands, different protocols, and different proprietary data sets. Embracing complexity means we accept there are a lot of moving parts in IIoT solutions that we need to link together for success and that requires a level of expertise which is better addressed as a holistic solution versus a complicated system of patch work.

3. Prepare for latency

During the discovery phase, many IIoT vendors gloss over this. Once manufacturers decide to take the plunge, they suddenly realise that connecting to all these different devices – legacy and modern, proprietary and open source – is really difficult, and results in significant delays

OPC requires multiple steps to send data; it is not point A to point B. A typical path looks like this: PLC to OPC server to OPC client. Then, the OPC client sends it to the on-premise server or cloud network to be utilised and processed. ▼

1. Getting things connected is easier said than done

One piece that addresses complexity is open platform communications (OPC). OPC was designed to provide industrial automation with a standard networking protocol that requires polling to receive data from devices. Polling is where the system must ask the device for data at a preset rate, such as once every second or once every half hour.

Let’s look at the top five things to consider about the connection puzzle and how to weave them into your overall plan.


IoT Now - December/January 2018

To further add to the multi-level process, PLCs must have separate connections to every other thing or software application. Connections must be written from PLC 1 to thing 1, PLC 1 to thing 2 and do on, repeated for PLC 2 and its connection to each thing.

Solution: Avoid custom code

Then add the transmission of the PLC data into ERP software: code is needed for the connection from PLC 1 to ERP software 1, ERP software 2, and so on. Add polling to all those layers, and it’s a recipe for tremendous latency.

Many IIoT platforms focus on analytics, but they are data-poor due to their inability to quickly onboard devices. You might call these analyticsfocused IIoT platforms. So, with inaccurate data, the analytics delivered by the platform is virtually useless.

Many IIoT platforms focus on analytics, but they are datapoor due to their inability to quickly on-board devices

Use a data-centric IIoT software to map devices directly to applications (or other devices) This seems pretty straightforward, but as you’ve probably realised things just don’t plug-and-play like you’d expect.

4. Data isn’t always accurate OPC offers no feature to guarantee data accuracy. One company with a pharmaceutical plant in Florida, was up against this challenge. OPC was used to poll devices, which often received 3,000 data packets for each production run. It had no way to verify which packet was the correct match to the finished product lot. To answer this, the company’s engineering team wrote a lot of complex, custom code to run double-checks on the data sources and the receiving ends to ensure the data matched. That’s a lot of work to create and maintain for engineers who should be focused on the conversion of chemical and biological materials into valuable pharmaceuticals and pharmaceutical therapies.

5. Legacy devices can talk with modern equipment

To solve this, you need to map devices, like PLCs, directly to applications. A data-centric IIoT software platform is designed to do just that. It merges legacy and modern devices regardless of communication protocol, and provides a central data pipeline to all devices and applications on the network, giving you complete control over how, when, and where your data is used.

Native drivers - Go beyond APIs, OPC and MQTT Don’t be lured into the idea that application programme interfaces (APIs) and standard protocols will give you flexibility. APIs, OPC and MQTT are just an advertisement that you’ll need to do custom programming.

Message queue telemetry transport (MQTT) is quickly becoming one of the top protocols for IIoT, and modern devices are coming built with MQTT. However, the only way to take advantage of MQTT is to buy MQTT-enabled devices. No one wants to rip and replace legacy devices they’ve already amortised for 20 or 30 years just to get all new MQTT devices.

Every IIoT platform has standard tools for APIs, OPC and MQTT, but they often don’t have many native drivers. A data-centric platform will have a broad array of native drivers which avoids signing on your engineers to write custom code. This makes all the difference in getting your devices on-boarded in days, instead of months.

When you want to add new equipment at some point, such as the latest sensor that’s the hottest item on the market, it will most likely be designed with MQTT in mind. The downside is that you’re going to have to do extra work to make MQTT devices work with your legacy devices. To the thousands of devices you might have in a plant, you may have ten devices equipped with MQTT. Migration of all devices to MQTT will be slow and doesn’t solve today’s problem of connecting legacy and modern devices, it just means more custom coding.

Figure 1: APIs, OPC and MQTT compared with native drivers

IoT Now - December/January 2018


Native Drivers

Require custom programming

No programming required

Polling for legacy devices using OPC

No polling

Latency due to polling

No latency

Want to learn more? Download the whitepaper by Telit, “Why IIoT Projects Fail,” for an in-depth guide. Visit:



Intelligence on tap Inside Veolia Water’s utilisation of Actility’s ThingPark Energy to power a smart grid for water services When someone talks about a smart grid, the first thing you’ll think of is electricity; if they talk about industrial IoT you’ll probably be imagining factory monitoring and automation. But in this case study, we’ll be taking a look at how combining sensing and remote control throughout a network with data analytics, process modelling and forecasting can make a giant of the water industry more efficient and open up new business opportunities. Welcome to Veolia’s Smart Water Network. Veolia Water is a world’s largest supplier of water services, originally based in France but now operating on a large scale across Europe, in the Americas, the Middle East, Africa and APAC. The company provides managed fresh water and waste water services for municipal and industrial clients, handling every step in the water cycle, from capture to treatment, distribution, waste water recovery and processing and release back into the environment. Energy consumption is involved throughout this cycle, pumping water through the treatment facilities and the pipes connecting them, to homes and then back through the waste water processing. Buying electricity is a significant cost for Veolia. More than 80% of that electricity is used for pumping and aeration. Typically, pumping stations buy electricity at fixed rates, with little price difference between peak and off-peak hours. However, prices in the wider electricity market vary much more significantly. This creates opportunities for consumers like Veolia, with the flexibility to schedule their operations to an alternative timetable and react swiftly, to create additional business value from its

extensive storage capacity – water tanks – and large number of electrical devices such as pumps, valves and aerators, which can be activated and shut down very quickly. Encouraged by an increase in water production and tougher environmental challenges Veolia selected Actility’s ThingPark Energy platform to improve the efficiency of its pumping stations and treatment plants. Actility brings its tried and tested real-time optimisation algorithms to bear on modelling the complex water process. Realtime planning and scheduling is driven by the demands on the water network at any given time combined with live data on electricity pricing from the supplier market. Hundreds of electricity consuming devices are remotely controlled, taking into account fluctuating energy prices. The final operational plan is scheduled to minimise the overall cost of electricity whilst ensuring that operational demands on the network are always met.

Being flexible pays dividends Actility’s ThingPark Energy Platform makes use of high performance data analytics tools originally developed for demand-response tools to secure electricity supply grids against unusual peaks in energy usage. The predictive modelling capability enables the system to respond automatically with the best solution when faced with unplanned situations. The system learns and the operational plan is updated automatically, whilst continuing to respect the constraints of the underlying processes. The automated system provides significant levels of support to on call-operation teams, reducing workload and supporting good decision making. The same prediction capabilities,

Actility brings its tried and tested real-time optimisation algorithms to bear on modelling the complex water process


IoT Now - December/January 2018

The system architecture

combining with operational monitoring of systems and components, can detect failures and mobilise human experts as soon as such issues are detected. This enhances process and business key performance indicators (KPIs). Over several years at the forefront of European demand-response solutions, Actility’s Energy Business Unit has developed a deep understanding of the information management systems and control systems found in large utilities. This allows seamless integration between the ThingPark Energy solutions for energy process optimisation and Veolia’s existing management system, using established data collection and communication protocols. Actility rolled out a highly redundant and secure virtual private network (VPN) between Veolia’s server and ThingPark Energy, ensuring a transparent solution for the customer. Veolia’s network is on its way to becoming a smart grid for water. Energy process modelling allows Veolia’s smart water grid to take the next step in terms of scale. It is one of ThingPark Energy’s solutions which allows the operator to control multiple sites using predictive modelling to determine each site’s optimal load curve. The whole portfolio of sites is then globally optimised, with the sites responding to the commands sent by ThingPark Energy to their local controllers – programmable logic controllers (PLCs). This solution is reliable and highly scalable, allowing Actility to support Veolia in many countries in their transition to smart water management with minimum investments in monitoring and control systems. As well as optimising energy consumption and reducing electricity costs, Actility has enabled a new revenue stream for Veolia as a provider of flexibility in a demand-response market. When demand for electricity rises in a national distribution grid, there are two options: the energy providers have to generate more electricity, or the users of energy reduce consumption. In recent years, as more renewable energy resources have come on stream, the capacity for instantly

IoT Now - December/January 2018

increasing electricity supply has reduced, and instead smart grid systems have been introduced which enable large-scale temporary reduction in energy usage. Actility works with a number of large consumers of electricity, like Veolia, which can temporarily reduce their consumption by rescheduling planned activities like pumping, making use of the flexibility offered by their storage reservoirs. This means that not only is Veolia benefitting from buying electricity for its needs at the lowest prices, but also effectively being paid for electricity it is not using by the grid transmission system operator (TSO). After approval by Veolia, ThingPark Energy optimises operations to benefit from those electricity market opportunities, and seamlessly integrates automated demand-response into the overall energy management system, ensuring that demand-response activations don’t need to involve Veolia’s on-site operators, and have no impact on global production.

Veolia Water key facts and figures: 100m customers supplied with water 5.5bn cubic metres of water supplied annually €11.3m annual revenue 3000 waste water treatment facilities and 4000 water production facilities worldwide

Actility’s solution for Energy Process Optimisation and Automated Demand Response offers multiple benefits to Veolia Water, including: • Delivering additional revenues with automated demand-response • Monitoring smart electricity consumption and detecting abnormalities in processes • Actively contributing to improved security of electricity supply and CO2 emission reduction • Relieving the day to day workload of the operational team, allowing focus on key issues The customer has achieved a series of benefits as Christophe Lepoutre, the vice president for Energy and Subcontracting Procurement at Veolia, explains: “Actility has created new value for Veolia and we have engaged in a close partnership with them,” he says. “Thanks to Actility’s unrivalled expertise in energy management and demand response linked to the wider energy market economics, the company helps us extract hidden value from the flexibility of our industry by adding smart modelling and predictive algorithms to our existing automation systems.”



Cloud analytics help to raise overall equipment effectiveness (OEE) and reduce energy consumption in the Festo Technology Plant, a model, which is now transferred to other IoT and cloud solutions like Siemens MindSphere, Rockwell FactoryTalk, SAP HANA and others

Energy transparent machines cut consumption by one-third A few weeks ago the World Climate Conference was held to discuss sustainability targets for lower energy consumption and less pollution. Few organisations have embraced the goals but Festo, at its Scharnhausen Technology Plant in Germany, has already shown its support for them in the Industrie 4.0, energy efficient, IoT-enabled factory Energy efficiency often starts from the ground up in manufacturing environments and, for Festo, a major decision was to develop an energy efficiency module that is a plug-and-work solution for the pneumatic circuit as a whole. The module is able to summarise, evaluate and analyse data by using artificial intelligence (AI). The data collected can therefore be pre-processed inside the unit and/or completely transferred into a cloud. A decentralised automation platform usually collects data from different Festo devices and combines them on a valve terminal with Codesys controller on board.

of up to one-third of energy compared to the old plant. Amortisation is expected to be around two years.

In the Festo Technology Plant at Scharnhausen, this type of installation has been retrofitted to all older machines since 2015 – and is a must for all new machines. The target was to make them energy transparent and to optimise air and current consumption by dedicated switching-on and off cycles depending on several criteria – thus avoiding that energy peaks are just added without any benefit, or leakage causing high extra cost. Data had been fed via object linking and embedding (OLE) for process control (OPC) unified architecture (UA) into the on-site manufacturing execution (ME) system from SAP by its plant connection module (PCo), and further to the enterprise resource planning (ERP) system with SAP HANA cloud. Now the new solutions allow – in conjunction with other actions taken like solar panels or re-use concepts for heat – saving

The required apps are developed by Festo, and in the case of external cloud providers, are then installed in the MindSphere environment (using Siemens MindConnect LIB) or the Rockwell Device Analytics (via Shelby Appliance or Team ONE tools). The app for the Festo energy efficiency module inside these clouds or IoT environments allows easy visualisation, quicker set-up and parametrisation of the product and online visualisation during machine run-time. The data analytics support advanced diagnostic and condition monitoring concepts and could lead into predictive maintenance systems by combining data from different sources inside the cloud.

In the latest use cases, the data from such energy efficiency modules is brought via OPC-UA and a Festo CPX-IoT Gateway to cloud or IoT platforms like Siemens MindSphere or Rockwell Factory Talk. Festo also provides its own cloud for deeper analytics of all its pneumatic and electric drive components and mechatronic sub-systems as a long-term target. Data is also fed into SAP HANA, Festo’s on-site option in the Scharnhausen factory.

Today, a cloud based visualisation makes many things easier, but a high degree of expertise and IT knowledge is needed to make the devices ▼

Today, a cloud based visualisation makes many things easier, but a high degree of expertise and IT knowledge is needed to make the devices communicate to clouds offered by the market today


IoT Now - December/January 2018

Typical system design and Industry 4.0 / IoT integration of the Festo portfolio

communicate to clouds offered by the market today. In total, the Festo energy efficiency module reduces energy cost, and increases machine availability. Mindsphere, Factory Talk, Festo cloud, SAP HANA and many others allow easy visualisation and machine set-up, as well as global data analytics.

Festo Industrie 4.0 products and solutions At the SPS/IPC/Drives exhibition in Nuremberg in 2017, visitors could experience Festo's new automation platforms with IP20 and IP65, IoT gateways and a direct link to a cloud. Eberhard Klotz, the head of the Industrie 4.0 campaign at Festo, explains what contribution Industrie 4.0 is already making to the booming automation technology sector today. “Festo is already delivering some real automation technology products for the fourth industrial revolution including: integrated drive packages, modular valve terminals with OPC-UA and IoT gateways, decentralised Codesys controllers and autonomous mechatronic subsystems with IP20 or IP65. In addition, there are apps and cloud concepts ready for pilot projects. However, the top and most exciting innovation in pneumatics is the Festo Motion Terminal," emphasises the expert in automation. The Festo Motion Terminal is the first automation platform to be designed as a cyberphysical system and replaces up to 50 individual pneumatic functions. "Festo, in contrast to consultancies, has the advantage that it can draw on a wealth of user experience from pilot production projects in the Scharnhausen Technology Plant," explains Klotz. This includes topics such as energy management and optimisation as well as innovative one-pieceflow concepts based on standardised networking, mobile maintenance with tablets or automated, flexible test systems for individual products. “This experience is also incorporated into our own products."

The Festo CPX-E Industrie 4.0 automation system The CPX-E system is a high-performance system for factory automation (IP20, the “E” refers to enclosures). This system consists of individual function modules that can be used to create a modular, compact and thus very flexible system. Depending on the module combination, the system can be used as a purely remote I/O system or as a – centralised or decentralised – control system for factory or process automation. From a functional point of view, the CPX-E control units are designed as EtherCAT master controllers and motion controllers. These are highperformance control units which can be used both for extensive PLC functions and, in the Motion Control M1 variant, also for multi-axis applications with interpolation. The basis for this is the programming system CODESYS V3 with additional software libraries for both simple and complex motion control applications.

IoT Now - December/January 2018

Festo can therefore offer a consistent portfolio for the decentralised automation of sub-systems and small machines/installations with IP20 and IP65, all in line with a flexible Industry 4.0 host environment.

Benefits for both, OEM and end-users OEMs can improve their machine offers with the latest technology upgrades and cloud connectivity to be integrated into Industry 4.0 host environments. The Festo energy efficiency module allows advanced diagnostics and condition monitoring concepts for the pneumatic circuits of a machine as a whole or a modular segment of a machine. In addition, energy is saved by switching off unused machine modules/segments. End users can improve their production by latest technology upgrades and cloud connectivity. Cloud analytics allow optimisation of business and production processes, higher OEE by predictive maintenance concepts and shorter downtime by better diagnostic support. The Festo E2M module saves energy by switching off unused machine modules or segments. All customers benefit from the co-operation of market leaders: Festo in mechatronic motion control solutions and decentralised automation concepts, and the large PLC manufacturers and MES providers like Siemens, Rockwell, SAP and others.



How IoT is getting us closer to zero unplanned downtime As industrial automation continues to digitise, one area in particular is becoming a critical area of concern – unplanned downtime. The shift to outcome-based business models, IoT sensors on connected equipment, and of course, the pervasive and increasing reliance on machines, are all adding to the pressure to avoid outages. Mitigating downtime is a critical, strategic priority in the digital age, writes Mark Homer, the vice president of global customer transformation at ServiceMax, a GE Digital company

Mark Homer, ServiceMax

The growing reliance on automation is already widening performance gaps


The growing reliance on automation is already widening performance gaps. Businesses are losing sight of assets, especially in terms of efficiency, leading to fractured insight into manufacturing or service delivery. The upshot is that unplanned downtime becomes a real problem and even worse, the lack of visibility leads to an unnecessary lengthening of recovery time. Closing this downtime gap is a fundamental step in an organisation’s digital maturity, and a core part of their transformation journey. According to a new Vanson Bourne global study ‘After The Fall: Cost, Causes and Consequences of Unplanned Downtime’, 82% companies have experienced at least one unplanned downtime outage over the past three years, and two on average. These outages have lasted four hours. Depending on the company and type of equipment, this can cost organisations anywhere from US$50,000 (€42,560)-US$150,000 (€127,690) per hour for say, a medical device company, and up to US$2 million (€1.70 million) for a major outage on an industrial critical asset. Analyst firm Aberdeen estimates the cost across all businesses to be US$260,000 (€221,000) an hour. The research also revealed high levels of asset estate ignorance across organisations, with 70% of companies lacking full awareness of when equipment is due for maintenance, upgrade or replacement.

Loss of trust In addition to financial losses, the research found that almost a third of respondents said they were unable to service or support specific equipment assets, while 65% of respondents from the energy and utilities sector, and 62% from the medical sector cited losing the trust of their customers as a possible impact of suffering a high-profile incident or disaster. Across all sectors, around one in ten admitted their company would never recover from such critical incidents and would ultimately cease to exist. Nobody wants to be blindsided with those sorts of numbers. But what are companies doing about it? The research hints at a tipping point in recognition of the problem and planned investment to address it. Over time, zero tolerance and zero unplanned downtime will become the norm as companies develop and invest in their industrial digital strategies. Key to this, is an understanding of and investment in field service management and asset performance management capabilities. According to Vanson Bourne, eight in ten companies have already recognised this, at least that digital tools can improve visibility of assets and help eliminate unplanned downtime. Around 50% of companies confirmed they plan to invest in field service and asset management technologies in the next three years, while 72% of firms claim that zero unplanned downtime is now a number one priority. So the message is sinking in at least. ▼

Thankfully, technology has finally caught up to address the problem. IoT enabled connected service is closing this downtime gap – which is important because it’s not only costly, it’s also a fundamental step in an organisation’s digital maturity and a core part of their transformation journey.

IoT Now - December/January 2018

Understanding problems before they happen and having knowledgeable and digitally-empowered service technicians to ensure the smooth running of assets will go a long way to making this happen The challenge for most businesses is to digitally transform without losing oversight of key products, services and of course assets. Digital transformations do not automatically improve control and visibility. Companies need to pursue a service-led approach to business, to ensure that their ability to manage the actual assets that make products or ensure services run smoothly are always up and running. A clear asset management and predictive maintenance strategy should ensure that businesses take the right path towards reducing, if not completely eliminating downtime. Understanding problems before they happen and having knowledgeable and digitally-empowered

IoT Now - December/January 2018

service technicians to ensure the smooth running of assets will go a long way to making this happen. A digital twin of physical assets will help considerably here, and the research has revealed that around 54% of companies are planning to invest in a digital twin by 2020. Throw-in the fact that field service is expected to become a primary revenue driver for most businesses within the next two years and you have a recipe for transformation. Will it be for the better? If zero downtime is important to a business â&#x20AC;&#x201C; and it should be â&#x20AC;&#x201C; then yes. And until a time when machines can actually fix themselves or not break at all, it is in fact the only transformation worth considering.



Monitor, manage and optimise – three essentials for successful IoT ecosystem development Once organisations have dipped their toes into the Internet of Things (IoT), they can build on their initial pilots to create further business value that can be transformative for their performance, writes George Malim

For many traditional organisations – the benders of metal – this transformation involves taking giant steps and there are many factors to assess carefully and take into consideration. Among these is how to choose vendors, a complex process that involves taking a series of variables into account. For some, it’s about harnessing and utilising data. “Companies can take two approaches they can look at how they will link up their network, or they can look at the data they will gather from sensors and work back from there,” says Martin James, the regional vice president of DataStax. “Data-led approaches can be stronger over time, as it puts the emphasis on how data has to be gathered, stored and, most importantly, used. This data has to help the company meet a business objective, rather than being stored for the sake of it. Looking at how the business can make use of IoT data to support that business goal should be the priority.” While extracting value from IoT data is a priority and probably a foundational element of IoT investment, organisations should also think about where they want to go in future. “As you plan your IoT business you need to think about choosing technology and business partners that have flexibility and scalability included in their offerings,” says Theresa Bui, the director of IoT Strategy at Cisco. “It’s important to choose an IoT platform that enables you to easily and costeffectively introduce IoT services to market, and


one that has global reach so that you can easily scale those services to other countries as customer demand requires.” “Integrating an IoT platform once and knowing you’ll be able to scale IoT services worldwide with global network integration gives your enterprise global visibility and control through a single operational standard and interface,” she adds. “This gives you the power to go to market anywhere in the world for faster revenue growth.” For others, it’s important not to view IoT as an entirely alien landscape. “While IoT has some unique properties, to some extent it is just another business technology, and you need to apply some of the same rules to choosing your IoT partners as you would any other technology provider,” explains Dave Lounsbury, the chief technical officer at The Open Group. “Start with supplier management 101 – do they have a good track record for timely delivery, post-sales support, and relationship management? Do their devices use open standards and integrate well with your existing systems and that of other vendors, or are you buying into vendor-specific or locked-down proprietary protocols? An open ecosystem – one based on open protocols, with low or no barriers to market entry, will allow you flexibility in your IoT architecture and allow you to scale beyond the limits of a single vendor.” When it comes to the concept of an ecosystem of suppliers working together there is a lack of standards, harmonisation and proven success for others to draw on. Each case is different as James attests: “For logistics companies working in B2B supply chains, customers will be companies that want more insight for their own forward planning and service delivery. Getting precise location data from devices and sensors can help improve tracking, reducing loss or fraud; it can also help the logistics company improve its own planning and routing in real time. By collaborating around data, it’s a win-win situation

One of the great attractions of IoT to organisations is that it can deliver rapid results to address specific problems in their existing businesses. This might involve factory floor efficiency enhancements, reduced cost of operation or greater productivity. However, the ultimate goal of IoT is to enable businesses to digitally transform and become part of a widely dispersed ecosystem of connected enterprises offering attractive service propositions to their customers profitably.

IoT Now - December/January 2018

Theresa Bui, Cisco

– customers get more accurate information, while companies can improve their profitability.” “For utility companies, IoT data can be used to influence customer behaviour,” he adds. “Providing insight into how other customers use energy can help them reduce their energy use. This might seem strange for utility companies after all they sell energy - but the aim here is to stop customers switching. Providing a valued service based on insight reduces customer churn by keeping them happy and feeling like the utility provider is looking out for their best interests.” Different approaches will therefore be involved depending on your perspective and aims but how can success be measured across these complex ecosystems? “When you implement IoT, your enterprise transforms from the one-off selling of products and/or solutions to the ongoing provision of new valuable services,” says Bui. “Because these services are delivered through devices that are continuously and ubiquitously connected, it is possible to generate new ongoing revenue from the monetisation of these services. One method of measuring success can be increased profit.”

Dave Lounsbury, The Open Group

deployments have to be based on improving a business process using data,” says James. “Supply chain efficiency should be not just about checking whether items are on time – instead, looking at profitability and reduction of loss as well can help. This means looking at data in a wider context than just what’s coming in from IoT sensors.” In this, though, we’re still in the category of small steps within carefully controlled and managed, isolated parts of a business. The giant step is to servitise and scale up to mass-market levels of growth and this presents the next big challenge. “Scaling up around data should be simple if you start looking at distributed data ▼

Martin James, DataStax

That’s a metric everyone’s looking to succeed at but there are other less tangible indicators of success. “IoT

3 2

1 IoT Now - December/January 2018



Once you have constant connectivity you can make use of ondemand, always-on connections to assets, products and devices to provide additional services to customers

strategies first,” James explains. “Rather than locating all data on single machines or in a single database, you should look at how you can scale out data by adding nodes over time. This helps in two respects: firstly, you can keep nodes close to where data is getting created rather than having to deal with latency getting data back to one location. Secondly, you can scale up by simply adding nodes as you need them, rather than dealing with more capital expenditure.” “For IoT providers, this approach should help them add more customers and keep costs predictable,” he adds. “For IoT customers, this should be about scaling up your IoT implementation as it creates value for the business. This helps keep costs under control as revenues scale up.” Lounsbury has concerns regarding the capability of organisations’ data management. “The IoT system is likely to generate a lot of new data – possibly an increase of several orders of magnitude,” he says. “Do you have the right platform and information architecture, not just to handle the data, but to analyse it to generate business insights? Organisations may want to consider architectures like data lakes to capture the raw IoT value and make it accessible to analytics and reporting tools downstream.” For Bui, effective capability for scaling up goes hand-in-hand with vendor selection. The right partners should enable relatively straightforward adding of scale. “If you have chosen an IoT platform that works in partnership with many mobile service providers around the world, then it becomes easy to scale for growth,” she says. “You can connect your enterprise’s devices with embedded global SIMs, so as your enterprise grows and you move into new markets, you can simply activate the SIMs on the local network, LTE-M and narrowband IoT (NB-IoT) networks.” “The best platforms will provide a single global service level agreement (SLA), support contact and a single global operations interface showing all your connections worldwide, across multiple mobile operators, including network status and diagnostics,” she confirms. The next step, once gains have made is to try to replicate them with other offerings, ideally reutilising the capabilities of the ecosystem that


enabled the first success to be achieved. For Bui, the requirements of an initial deployment mean the core infrastructure for other IoT services is in place. “Once you have constant connectivity you can make use of on-demand, always-on connections to assets, products and devices to provide additional services to customers,” she says. “By extending the customer relationship to realise new, ongoing, revenue streams, the potential to replicate gains and increase profit generation is vast.” James also acknowledges the value of establishing IoT through controlled, smaller projects to begin with. “Starting with initial pilots can help prove value,” he says. “If a subset of customers can be served more efficiently through use of IoT data, this can help provide the business case for expanding to more customers. However, it’s important to recognise that the number of edge cases may go up. If this was simply a case of doing the same thing for everyone, then scaling up will be much easier.” “Instead, it’s worth looking at why different customer groups may need different services or more hand-holding,” he adds. “Getting through the pilot phase should help show where this assistance is needed, and then it can be designed in.” Therefore it’s a question of IoT ecosystems gaining experience and enabling future services to be supported in a more effective, more targeted way according to their needs. The experience gathered in early deployments feeds organisations’ ability to monitor, manage and optimise the ecosystem to make it easier to scale up and launch more new services. It should ultimately turn out to be a virtuous cycle in which initial innovation feeds greater efficiency for the next cycle. “IoT drives the connecting, monitoring and gathering of data from billions of physical objects, and this capability brings huge business opportunities – as well as huge operational challenges,” says Bui. “Once you have chosen an IoT solution, you need to understand ongoing costs and savings, potential revenue from new service offerings and the time it will take to achieve ROI. The most proficient IoT service management partners will show you how to reap the benefits and add considerable value to your enterprise.”

IoT Now - December/January 2018


Data, dashboards and decisions Cloudleaf enterprise solutions orchestrate the flow of assets across the three dimensions of data, dashboards and decisions, writes Nitesh Arora, the head of marketing at the company Cloudleaf Sensor FabricTM

Cloudleaf IoT solutions are predicated on the most robust, secure and interoperable technologies available today. However, our story doesn’t end there. Although we’re undeniably a tech company, our solutions approach is decidedly non-technical; we view technology as the means not the end. In fact, we can extend this idea by saying that, for us, the success of an IoT implementation is measured, not by the number of sensors or cloud analytics apps, but by the degree to which it provides sustainable and measurable value to society, the environment and on the bottom line. By adopting a Three Ds solutions approach, we’re able offer rich live data, accessible from intuitive mobile dashboards from which operations managers can quickly make critical resourcing and prioritisation decisions. Now that we’ve got that straight, let’s come back down to earth and talk nuts and bolts in terms that both engineers and everyday folk can understand. If you read our other article on page 16 of this issue, you’ll get a good idea of how the Cloudleaf Sensor Network helps those running industrial operations derive maximum business value in the areas of: • Asset utilisation - Serialised management, location tracking and monitoring, utilisation, inventory control and dwell-time management • Factory operations - Product quality assurance/quality control (QA/QC), audit and regulatory compliance, safety and loss management, work node control and work in progress (WIP) • Complex assemblies - Multi site/party workflows, supplier conformance, on-time delivery and penalty mitigation • Condition monitoring - Predictive/prescriptive management, environmental monitoring and fault management So let’s get further down into the weeds and talk about our tech. The Cloudleaf family of products is made up from a collection of end-to-end hardware, connectivity, cloud services and apps that solve distributed manufacturing challenges and harmonise workflow relationships between people, systems and things. Our endpoint sensors, zone sensors and gateways form an intelligent-mesh that orchestrates the flow of realtime asset data, elegantly bridging the operation technology (OT) domain processes with back-office information technology (IT) business systems. We call this the CloudLeaf Sensor Fabric. Let’s take a closer look at the components:

Cloudleaf Sensor Fabric The Cloudleaf Sensor Fabric is composed of patented, easyto-deploy, purpose-built and location aware sensors and gateways, to enable smarter operations, with indoor, outdoor and in-transit coverage.

• Cloudleaf Zone Sensors Zone Sensors provide more precise location entry/exit management and other micro-location use cases in critical workflow zones. Zone sensors extend the accuracy of Cloudleaf Sensor Fabric by enabling enterprises to create more precise location zones and monitor entry/exit events. Zones can then be stitched together by the Cloud Platform to create travel paths or workflows to track compliance of any process. By relying on the patented trilateration and triangulation algorithms, an asset may be positioned to within 3ft in 3D space. Focus beam antennas (18, 60, 90 degrees) can further fine tune and extend the configurable proximity range from 70ft to 3ft. This means that plant operators, product QA/QC staff, audit and compliance agencies and lab managers are able to precisely determine the location/zone, status and condition of assets in-production or in-transit. • Cloudleaf Gateway Lightweight bi-directional connectivity to the cloud using Bluetooth Smart between sensors and industrial Wi-Fi or cellular to the cloud. Acting as the glue between assets in OT domain fabric and the cloud, operations managers are able to strategically locate Cloudleaf Gateways for maximum coverage. Each gateway is capable of covering 70,000 sq. ft. of industrial indoor space and moving asset location, condition and command data over non-line-of-sight (NLOS) channels. (For the engineers out there: We achieve this by circumventing physical objects in RF communication path using a series of concentric innermost prolate ellipsoidal regions of space between and around Cloudleaf antennas. This region is called the Fresnel Zone). For any given square footage, this reduces the number of gateways needed to create a fully inclusive, high capacity IoT mesh. Cloudleaf is about efficiency in form and function. ▼

• Cloudleaf Sensors Long-range sensors that securely collect and share asset location and condition data over our patented Bluetooth Smart technology.

Each Cloudleaf-enabled asset in the Sensor Fabric generates a unique digital fingerprint with location and contextual metadata (such as temperature, shock, vibration and more). More assets-sensors results in the more accurate data and better intelligence. There is virtually no limit to the number, class, location or mobility of assets that can join the fabric. Moving containers of raw materials, lab samples, sub-assemblies, components, finished products, high-value handheld tools and fixed industrial robots are all excellent candidate asset types. And given a two-to-five year battery life, long-range Bluetooth connectivity and sensor provisioning from the cloud, the costfootprint gets lower with each asset added to the fabric.

IoT Now - December/January 2018


FEATURE Cloudleaf Business Rules Engines

Cloudleaf Rules Engine Easily model your complex business workflows and create rule hierarchies that automatically trigger corrective actions in real-time. Sandwiched between the IoT ecosystem and our cloud applications, is the Cloudleaf Business Rules Engine. In this space operation managers can easily conceptualise, build and execute product, labour and material workflows. Some might be as simple as A->B->C such as scrubbing and transforming raw IoT data into usable form. Others may require complex forward-chaining ifthen or event based techniques that factor in multiple locations, functions and relationships. More complex rules might include staff and material resources across various stages of the manufacturing process, require input from predictive maintenance analytics or need to exchange data with assets in the field. Regardless of complexity, we make it easy. By enabling you to model your business rules using the industry terms, measures and indicators you use every day you can start executing your production workflows on day one.

requires consolidating real-time data feeds from multiple source in the OT domain. But what are actionable insights, broadly speaking, we are reforming to value-added intelligence that help operations manager make better decisions and improve their visibility across their value-chain of suppliers, operations and distributor networks. This intelligence may be in the form of analytical trends, artificial intelligence (AI) -generated alerts, measurable key performance indicators (KPIs), reports or live dashboards that show hotspots in the production cycle. Behind the scenes our application programme interfaces (APIs), software development kits (SDKs) and middleware adaptors provide seamless extensible interoperability with enterprise systems for a truly connected end-to-end experience. We believe that, for IoT solutions to be sustainable and value-added, they must, first and foremost be based on technology that is robust, interoperable, cost-effective and offers high-availability functioning. Our extensive library of APIs, SDKs and pre-built connectors enable seamless integration that enhance existing enterprise supply chain management (SCM), enterprise resource planning (ERP), material requirements planning (MRP), manufacturing execution system (MES) and analytics systems. By using the latest battle-tested connectivity standards, a patented location engine and industry-centric cloud applications weâ&#x20AC;&#x2122;re able to transform this digitalplant metadata into actionable insights.

Cloudleaf Applications Our applications are purpose-built to help enterprises solve industry specific challenges and focus on their core competencies.

Actionable insights are only as accurate as the information used to generate them, which, in turn

Cloudleaf Actionable Insights


IoT Now - December/January 2018

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How we’re pushing the frontiers with artificial intelligence The international audience at the recent World Summit AI 2017 in Amsterdam, The Netherlands, reportedly topped out at 2,400. Not bad for an inaugural event, writes Jeremy Cowan, editorial director of IoT Now. And it was the goal of a panel of AI heavyhitters to inspire. Judging by the attentive audience, they succeeded

Rob High chipped in saying that IBM Watson uses AI to help doctors identify the right time for oncology (cancer care) treatments, and “we allow other people to take AI into other areas such as conversational systems” or deeper insights into retail customer behaviour. If those are some of the areas in which AI is working now, said the moderator, Prof. Max Welling, what could AI do better?

IoT Now - December/January 2018

We need more accuracy, less energy Herbrich believed we can use AI to play games with humans but that’s not presently a good use of computing power. A video game would involve a human burning energy at the rate of 2,000 calories per day, while it would take 220 million calories for AI computing to do the same job. “So we have to reduce energy,” he said. “We need more accuracy per calorie, which means compressing neural networks.” If that’s so where are the bottlenecks in AI, the moderator wondered. Tencent’s Zhang Tong pointed to dialogue systems, “as an industry we’re not doing very

Amazon’s Ralf Herbrich joked that it might be quicker to say where artificial intelligence (AI) is not impacting Amazon’s business. He cited current uses of AI in areas as diverse as demand pricing, fresh fruit ripeness prediction, and in Alexa.


Asked if humans and AI are co-evolving, High said, “Yes, it’s a complement to human intelligence, (AI) will co-reside with us.”

well in natural language or robotics, how we take actions with AI. There’s room for improvement.” As to where AI and machine learning (ML) can best help society, High felt, “cognitive computing and AI should be there to amplify our thinking. The danger isn’t simply that it might rise up and take over our role. There are things we do well, but there are a lot of things we don’t do well. AI can extend our reach, focusing on what gives us the biggest opportunity to enhance ourselves. We need to see through our biases to allow us to make better decisions.” Asked if humans and AI are co-evolving, High said, “Yes, it’s a complement to human intelligence, (AI) will co-reside with us.”

AI as a team sport Marco Vernocchi, senior managing director, Applied Intelligence lead at Accenture commented, “AI is a team sport. No single organisational unit or discipline can make it a success. Also, it’s an ecosystem play.” Herbrich liked the team sport description. He went further saying, “For many years the academic community lacked the ability to know what AI’s applications will be. It was an unguided field but in AI industry and academia meet well.” Prof. Welling was concerned to know if the right skills were available for AI to develop. Aren’t people in academia (with AI skills) being acquired by industry?


Zhang Tong was quick to scotch these concerns. “I was a professor at Rutherford University before joining Tencent. I see it as a benefit not a problem. There is not a lack of talent, there are very strong people who will build their own teams. We collaborate with universities in the US, Europe and China. It’s a healthy environment and is sustainable.” People often talk about artificial intelligence in terms of its threat. “What is the threat?” the panel was asked. High replied, “Not paying attention to how these technologies are affecting us. Think about smartphones, they’ve changed our behaviour. Quite subconsciously AI will change us in profound ways but also subtle ways, and we’ll need to be aware. For example, voice recognition is so effective we almost don’t notice it any more. Do we recognise it as AI? Vernocchi agreed. “Predictive text and autocorrect have affected us. We now type stuff that way because we know it will be autocorrected. My parents would never have typed that way.” He concluded, “There’s a big gap between the very fast speed of technological development and the speed of regulation (change). So there’s a development responsibility on all of us.” The event heard later from Gary Marcus, founder and CEO of Geometric Intelligence (acquired by Uber), that a lot of what we might want to do with AI remains out of reach.

IoT Now - December/January 2018


Join us at the ONLY dedicated IoT Networking event at Mobile World Congress 2018! Where? Networking Garden no 8 (upper concourse, between Halls 6 & 7) When? Tuesday 27th February 2018 Time? 4pm â&#x20AC;&#x201C; 6pm Come and meet the leading lights of the global IoT industry. Discuss future trends and the big ideas with IoT Thought Leaders, analysts and experts. Drinks, nibbles and entertainment are included. Numbers are limited and entry is with an invitation only.

PLUS! When you register to attend, you will automatically be entered in our FREE PRIZE DRAW to win one of 5 GOOGLE Assistants â&#x20AC;&#x201C; winners to be announced at the Party.

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THINGS, IN 2018 The UK’s premier Internet of Things event, Smart IoT, returns on 21-22 March 2018 to ExCeL London. „ Get smart, learn from thought leaders, real life casestudies and technical experts in more than 90 sessions „ Make all the right connections, meet with 200+ leading suppliers offering cutting edge solutions „ Network with an audience of 20,000 professionals seeking digital transformation CO-LOCATED EVENTS:

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EVENT PREVIEW IoT & Device Security Munich, Germany 5 December 2017

The Energy Digitalisation Summit Dubai, United Arab Emirates 12-13 December 2017

India M2M + IoT Forum 2018 New Delhi, India 30-31 January 2018 events/ iot-device-security/

IoT Connectivity London, UK 6 December 2017 iot-connectivity/

Connected Cars Summit London, UK 6-7 December 2017

Smart Cities International Symposium & Exhibition Chicago, USA 17-18 January 2018

Smart Cities UK 2018 London, UK 1 February 2018

IoT Evolution Expo Orlando, Florida, USA 22-25 January 2018 connected-cars-summit/

LPWA Americas San Jose, USA 6 December 2017 welcome

Smart Energy Summit London, UK 2-3 February 2018


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IoT Now - December/January 2018


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Want to know what’s REALL LY going on in the IoT Platforms Market? IoT Platforrms nalysis Report Market An H2 2017 7.

IoT Platforms Mark ke et Analysis Report H2 20 017


IoT Platforms Mark ket Analysis Reporrt H2 20 017


IoT Platforms Mark ket Analy ysis s Reporrt H2 20 017



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IoT Now: ISSN 2397-2793


MONETISATION SUPPLEMENT TALKING HEADS PTC's Jeff Miller says IoT success starts with turning pain points into proof points and innovating for success

PLUS: Monetisation news • IoT EVOLUTION EXPO 2018: Read our 8-page preview inside – including our special IoT Now Reader Registration offer • While cost efficiencies are a driver for IoT, don't forget the new revenue generation opportunities • Latest news online at:

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NEWS InterDigital launches Chordant platform, Bell and Howell selects PTC ThingWorx, thyssenkrupp extends predictive maintenance benefits TALKING HEADS Jeff Miller argues IoT success relies on turning pain points into proof points – and then looking round the next corner for a bigger opportunity

S10 MONETISING IoT Peter Dykes says show me the money S12

EVENT PREVIEW Seven pages exploring next year’s IoT Evolution Expo event start here

Cover sponsor: PTC has the most robust Internet of Things technology in the world. In 1986 we revolutionised digital 3D design, and in 1998 were first to market with internet-based PLM. Now our leading IoT and augmented reality (AR) platform and field-proven solutions bring together the physical and digital worlds to reinvent the way you create, operate and service products. With PTC, global manufacturers and an ecosystem of partners and developers can capitalise on the promise of the IoT today and drive the future of innovation:


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InterDigital launches Chordant platform with aim of enabling smart cities to monetise data

Survey finds industrial organisations increasingly focused on IIoT adoption Bsquare, a provider of Industrial Internet of Things (IIoT) solutions, has released the findings of its first annual IIoT Maturity Study. This explores the current IoT adoption progress of business buyers in manufacturing, transportation and oil and gas. According to the 2017 study, 86% of industrial organisations are currently adopting IoT solutions and 84% believe those solutions are very or extremely effective. In addition, 95% believe that IoT has a significant or tremendous impact on their industry. However, the study also shows that most IIoT investments are focused on connectivity (78%) and data visualisation (83%). In addition, only 48% are doing advanced analytics on that data and only a small number (28%) are automating the application of insights derived from analytics. “Our study shows that while industrial organisations have enthusiastically adopted IIoT, a majority have not yet moved to more advanced analytics-driven orchestration of data insights,” said Kevin Walsh, the vice president of marketing at Bsquare.

Amazon Echo and Google Home to be in over 50% of US households by 2022 A new study from Juniper Research has found that smart speakers such as Amazon Echo, Google Home, and the Sonos One will be installed in over 70 million US households by 2022, reaching 55% of all homes. Total installed devices will exceed 175 million. Juniper forecasts that Voice Assistant devices across all platforms – smartphones, tablets, PCs, speakers, connected TVs, cars and wearables, will reach 870 million devices in the US by 2022, an increase of 95% over the 450 million estimated for 2017. It believes that advertising is the biggest revenue opportunity for voice assistants, forecasting ad-spend to reach nearly US$19bn (€16.38 bn) globally by 2022; although it is not without pitfalls.


Jim Nolan, InterDigital

InterDigital has launched its smart city-focused Chordant business. The Chordant platform is designed to tackle the key business and data challenges in today’s smart city deployments.

The Chordant platform has been developed to enable cities to unlock value from any data source, allowing them to build smart city solutions using a best-of-breed, easily deployable platform. Its oneM2M standards-based approach serves as a means of bringing the legacy and future assets together in what InterDigital calls “a future-proof, standards-compliant solution”. The Chordant platform hides the underlying complexity from application developers, so they can focus on

creating applications for cities, consumers and enterprises alike. The platform also features a simple interface for partners to access and onboard their services. Furthermore, by bringing all the data assets into one environment, cities can open the door to innovation that will result in efficiencies and benefits to their citizens. In addition, the Chordant platform is already being utilised in a transport data marketplace and other smart city solutions. “Building Smart Cities is becoming an important focus for government bodies worldwide. However, it is challenging for cities to effectively utilise all their data,” said Jim Nolan, executive vice president, Chordant, at InterDigital. “If cities are to maximise and monetise their data, they need a strong, collaborative, interoperable ecosystem capable of delivering smart city solutions. Chordant provides just the platform to deliver on that commitment.”

Bell and Howell selects ThingWorx platform to enable smart, connected service

Ramesh Ratan, Bell and Howell

Bell and Howell has selected the ThingWorx industrial innovation platform from PTC to transform its service organisation by enabling remote monitoring and service of its connected industrial mechatronic machines.

Bell and Howell delivers innovative service and technology solutions that enrich customer communications and fulfilment for the world’s largest finance, industry and public sector enterprises. The company helps its customers streamline high-volume, high-integrity production of customer communications and product fulfilment; track delivery throughout the supply chain; maximise postal discounts and monetise every customer touchpoint. The company selected the ThingWorx platform as the foundation of an innovative next-generation IoT-enabled offering designed to further optimise service capabilities for all of its original equipment manufacturer (OEM) service partners. These partners include companies such as Cleveron, CMC,

Fetch, Hewlett-Packard, Packsize, Savioke, Sharp, and Toshiba. ThingWorx will enable Bell and Howell to reduce equipment downtime, improve First Time Fixn(FTF), increase overall performance, and boost customer satisfaction. “At Bell and Howell we are focused on innovation and creating next-generation solutions and services for our customers,” said Ramesh Ratan, the chief executive of Bell and Howell. “We selected the ThingWorx platform because we needed a complete IoT platform that could handle everything from connecting the device to building applications to analysing data. With the ThingWorx platform, we will be able to not only monitor our machines, but also have the ability to connect and remotely diagnose and service machines, which will enhance our level of service to our customers.” Jim Heppelmann, the president and chief executive of PTC, added: “By using the IoT for smart, connected service, service organisations can solve problems before the customer knows they exist, adding tremendous value to service operations. ThingWorx will enable Bell and Howell to deliver highquality services and more robust IoTenabled solutions for its customers.”

IoT Now Monetisation Supplement - December/January 2018


Thyssenkrupp extends predictive maintenance benefits to more than 40,000 customers

Automotive telematics systems revenues to reach US$6.7bn globally in 2023 Global revenue from automotive telematics systems will grow at a compound annual growth rate (CAGR) of nearly 17% to more than $6.7 billion by the end of 2023, according to new research from business information provider IHS Markit. These automotive telematics forecasts from IHS Markit are driven by continued innovation in vehicle connectivity and safety technologies, and demonstrate a wide variety of viewpoints from consumers across leading global markets. The data represents production of factory-installed telematics systems, including embedded, consumer electronics (CE) and hybrid telematics. The IHS Markit research estimates that more than 33 million light vehicles equipped with some form of telematics were produced in 2016 globally. It is expected that production of such light vehicles will grow at a CAGR of 11% to reach over 66 million units in 2023. Approximately 70% of new light vehicles produced in 2023 will be equipped with some form of original equipment manufacturer (OEM) telematics systems. Embedded telematics solutions are often used for safety and security features of telematics services such as emergency calling, roadside assistance, stolen vehicle tracking, over-the-air updates and more.

The demand of embedded telematics control units (TCUs) will increase, especially with the European eCall mandate that goes into effect in 2018. Then, the total revenue of embedded TCUs is expected to grow at a CAGR of 15% by 2023, IHS Markit says.

Anna Buettner, IHS Markit

Hybrid telematics solutions, using both an embedded TCU and a connected CE device to provide a two-way data connection to the car, will have the strongest growth among the three type of telematics systems during the forecast period, according to IHS Markit forecasts. The production of hybrid telematics systems will surpass the production of other types of telematics systems in 2018. It will continue to lead the market throughout the forecast period. “A large portion of vehicles already feature multiple connections especially in the luxury segment,” said Anna Buettner, the manager for automotive infotainment at IHS Markit. “This trend is expected to spread to other lower segments during the next few years, as strong market demand will bring connectivity to vehicles and regions that traditionally lagged behind.”

GSMA mobile IoT initiative targets European connected energy market worth US$26bn The GSMA announced that mobile operators deploying new mobile IoT networks will be able to benefit from the European connected energy market estimated to be worth US$26 billion(€21.99 billion) by 2026. Data shared by analyst house Machina Research highlights the huge growth opportunity in the emerging connected energy market that could connect approximately 158 million new smart meters on LPWA networks across Europe. The total number of connections in Europe could be further increased if the 60 million cellular connections are also included with LPWA. “The Internet of Things is fundamentally disrupting the smart utility market by providing ubiquitous connectivity and realtime, actionable data. Mobile IoT networks will take this further by offering energy providers a cost-effective solution to connect millions of smart meters,” said Alex Sinclair, chief technology officer, GSMA. “There is a real sense of momentum behind the roll-out of Mobile IoT networks with

multiple global launches, however, there is still a huge runway for growth. We encourage operators to act now to capitalise on this clear market opportunity and further accelerate the development of the IoT.” The current connected energy market, which includes applications related to the generation and transportation of energy, microgeneration, smart grid and distribution monitoring and smart metering, is worth an estimated US$11.7 billion(€9.90 billion). The European connected energy market represents approximately 21% of all global revenues, with APAC claiming 54% and the Americas 21%.

thyssenkrupp continues to transform how it delivers service in the elevator industry, which transports over a billion people each day and is valued at US$44bn per year (€37.26bn/year). After teaming up with Microsoft in 2015 to launch MAX, the first predictive maintenance solution for elevators enabled by Microsoft’s cloud platform Azure, thyssenkrupp has now connected more than 110,000 elevators with the IoT-based system, enabling the reduction in downtime for 41,369 customers across 48,340 sites. MAX collects and sends realtime data from connected elevators to the intelligent cloud, where the remaining lifetime of each elevator’s key components and systems are calculated, determining which parts will require maintenance and when. Speaking at StartupCon 2017 in Cologne, thyssenkrupp Elevator chief executive, Andreas Schierenbeck, said: “We developed MAX because we knew that elevator service could be done much better than the industry norm. With an estimated unavailability of 190 million hours worldwide each year, we felt that the uptime of the world’s 12+ million elevators could certainly be improved. And now the benefits from MAX are real: reduction of downtime for our customers, reduced service intervention times for our technicians, and in some cases we have been able to solve a problem before the customer even knows there is one. With M2M learning, the benefits of MAX will just keep getting bigger and better.” A thyssenkrupp MAX service technician

The European Commission recently published a proposal indicating that approximately 200 million electricity smart meters and 45 million gas meters will be rolled out by 2020. The Commission also estimates that by 2020, approximately 72% of Europeans customers will have a smart meter for electricity and about 40% for gas.

IoT Now Monetisation Supplement - December/January 2018



Early success in IoT relies on turning pain points into proof points – and then looking round the next corner for a bigger opportunity Jeff Miller is vice president of PTC’s IoT Transformation Advisory Practice. He and his team help companies maximise the value of their investments in IoT technologies and solutions through transformation strategy, business insight, monetisation and programme consulting services. Here, he tells George Malim, the managing editor of IoT Now, how organisations can construct attractive business cases for initial deployments that also position them to benefit from greater second and third wave opportunities as IoT understanding and capability matures

Jeff Miller: You’re right that for some companies, investing in IoT does take a leap of faith. To reduce risk, we advise our customers to begin with small, well-scoped projects that solve specific problems or provide needed new capabilities, prove the business value of them, and then rapidly scale or expand their uses. We encourage customers to select performance issues or opportunities with identifiable and quantifiable ROI, that also have broader application across the business, and can be launch pads for later expansion of IoT capability. For example, we know asset connectivity and analytics using sensor data are foundational IoT capabilities, so it’s wise for customers to start their IoT journeys by applying these capabilities toward solving known business issues or creating new business capabilities. Asking companies to identify where their operating performance or customer satisfaction metrics are negatively affected by a lack of asset connectivity and data is a good start. Establishing basic connectivity, asset monitoring and simple analytics – albeit at small scales – to reduce or eliminate those impediments demonstrates value and helps to encourage further adoption. It’s important for companies to recognise that IoT programmes are fundamentally different from large enterprise solution deployments. Many IoT sponsors and programme leaders find it’s actually easier to define the ROI


opportunity of an enterprise SAP implementation based on process cost reduction, because the business process models are so well established. IoT is different because most often one begins with a solution or innovation platform – a technology stack – through which to build purpose-defined applications that solve specific business issues. There is no well-established reference process architecture to emulate. This is why we counsel new IoT adopters to begin with what they know, or strongly suspect is needed to improve their businesses, to develop and deploy IoT apps and solutions towards solving one or two well-defined business issues first, and scale from there. This doesn’t mean organisations should set low ambitions for the value of IoT solutions. Rather, we believe the value of IoT is often driven by the network effect. For product companies, that means identifying a first pain point opportunity, defining what to measure and why, acquiring data, building analytics and using the resultant insight to improve performance and prove that the new capability delivers value. With that accomplished, we advise customers to consider expansion, scaling and broader integration to second third and even fourth order opportunities along their value chains. The key is identifying the right place to begin and the right foundation capabilities to establish. GM: ROI isn't necessarily about generating revenue. For many organisations, the greater value lies in enhanced process efficiency, better customer satisfaction or improved productivity. What are the difficulties of extracting clear values from each these potentially subjective areas? ▼

George Malim: One of the barriers to increased adoption of IoT has been that it requires organisations to make a leap of faith in the absence of quantifiable return on investment (ROI). What are the challenges of constructing ROI models across the varied and complex dimensions of an IoT business case?

IoT Now Monetisation Supplement - December/January 2018

Jeff Miller: PTC

JM: IoT platforms are fundamentally different from enterprise-scale solutions, and the ROI arithmetic is different, too. Platforms support the creation of new ITenabled business capabilities without the constraints of the process models upon which packaged enterprise solutions are usually based. That means customers have much greater flexibility to develop – or purchase – the precise apps or solutions they need to solve their particular business issues. That flexibility means that ROI models may be driven by much wider sets of factors than just revenue lift, or simple direct cost reduction. In the factory for example, an IoT application for monitoring machine performance beyond basic supervisory control (SCADA) may provide analytical data that improves spare part management for that machine. Less unplanned downtime improves operational equipment effectiveness (OEE). So, an IoT app may affect a measure like OEE much differently than how an enterprise solution would. We suggest that customers ask themselves where the absence of connectivity and/or access to product operating data has impeded their ability to improve the performance and overall customer value of their products. We use the growing set of validated IoT use cases to help customers then identify areas where they can generate value from well-defined IoT investments. These areas become the starting points for their own use cases. GM: For IoT and organisations' attitudes to it to mature, does there always have to be a dollar value attached to IoT investment? Wouldn't, for instance, something like a 10% reduction in downtime be of obvious business value?

JM: There are always questions about costs and measurable returns on investment. It’s important for company leaders to recognise that the costs of entry into IoT technologies are low compared to enterprise solutions – and what this difference means in operational terms. First and foremost, it means the cost of experimenting is also relatively low for the potential performance improvement returns. It also means the returns on those investments may be narrowly defined to a particular process or function, may not be measured in financial terms, and may be less predictable. This complexity in determining value is being compounded by a new phenomenon we’re beginning to see across companies; IoT fragmentation. Because of the ease with which IoT experimentation may be conducted, individual departments are creating IoT

IoT Now Monetisation Supplement - December/January 2018



applications that provide localised capabilities and solve narrowing defined, functional problems. That’s a good thing to do, as long as companies recognise the need for new governance and architectural controls to prevent the inefficiencies that come with the absence of standards. It means the definitions of value and ROI for IoT investments will broaden. GM: What metrics other than cash generation are being used and accepted by organisations as ROI contributors? JM: While the lower cost barriers to IoT are democratising performance improvement, and the definitions and measures of value are becoming more varied, there are a few large trends we see coming from broader adoption of IoT. Metrics related to customer experience are increasingly recognised because organisations are focusing on the role of IoT to improve fielded product performance, availability and reliability, all of which are basic requirements for happy customers. And, it is not only product companies that are thinking this way – pure service companies like are taking this approach, too. An even broader opportunity for ROI from IoT is the movement away from the purchase of assets, and toward the purchase of outcomes – the wellestablished product as a service strategy. The number of successful case examples of such progression is increasing. Large capital equipment companies are leading the way by accelerating their IoT-related investments in areas that improve the customer/owner/operator experience and reduce the respective costs for the outcomes each stakeholder seeks. More companies are placing such investments at the centre of their strategies for market differentiation. A well-designed, IoT-enabled product function or service feature that measurably improves a customer’s performance, cost or satisfaction metric is worth a lot in a competitive market. GM: Which IoT app areas do you see as having the clearest or most easily identifiable business and ROI cases? JM: Taken together, the platform technologies and cloud-based infrastructure services that make up today’s conventional definition of the Internet of Things technology stack may be the most important enabling capability of the everything-as-a-service world toward which we are moving. For the external customer model,

applications that improve customer experiences and financial performance will remain the highest priorities across the enterprise. These include apps for, 1) sourcing data and monitoring asset performance, 2) merging and contextualising data to make it more usable in business operations, 3) synthesising operating insights to predict product performance and recommend preventative service actions, 4) orchestrating ecosystem actions and responses to issues, and 5) engaging ecosystem resources to take action. In addition, applications that utilise digital twins, also called software defined products, will expand dramatically. The digital twin is the centrepiece of today’s most powerful and useful IoT solutions, and is a foundational component of the augmented reality strategy that every company needs to create. Apps that utilise digital twins facilitate the design, sale, installation, use and service of complex products, and produce parts through additive manufacturing. Applications in these areas will continue to grow rapidly because of their powerful value propositions. They will drive down costs of product ownership and pay for themselves quickly. For a thorough examination of the role of augmented reality in the industrial enterprise, see the Harvard Business Review article by PTC’s CEO James Heppelmann and Harvard Business School Professor Michael Porter in the November/December, 2017 issue. PTC has defined the industrial innovation process model in these five stages: source, contextualise, synthesise, orchestrate and engage. This model offers sound guidance for developing an IoT strategy, a capability roadmap, and apps that deliver value quickly. GM: Please can you share any customer success stories of constructing ROI models? JM: I’ll offer two examples. The first is Hirotec, a global maker of automotive parts, which sought to invest in IoT technology for improved predictive analytics in its factories. It built a case for the investment around reducing unplanned machine downtime, and through its experience found the value proposition was much stronger than originally thought. As it turned out, the operating performance improvements Hirotec realised were so great that they offset the need to buy additional production machinery to meet a demand for more capacity. Hirotec improved its operating expense performance, and at the same time avoided the capital expense of purchasing additional capacity. ▼

PTC has defined the industrial innovation process model in these five stages: source, contextualise, synthesise, orchestrate and engage

SPONSORED INTERVIEW IoT Now Monetisation Supplement - December/January 2018


In the coming year, examples of successful IoT deployments in single factories will be eclipsed by examples in which ecosystems of stakeholders across different commercial organisations and functions achieve notable, unique new capabilities

That’s a great template. Selecting an area of factory operation where you can generate meaningful ROI, such as reducing unplanned downtime, while remaining alert to other opportunities. The lesson of cases like Hirotec is to build an ROI model for a well-scoped first use case, and then consider second, third and even fourth order effects and opportunities. The other example I’ll share is in commercial aircraft manufacturing. The use of remote monitoring and predictive analytics has been wellestablished in commercial aviation for decades. A leading airframe manufacturer sought to expand the concept and use of such data beyond aircraft engines, landing gear and flight control systems into the aircraft’s interior systems. The airframer worked with its air carrier customers to identify problems which might be solved with this kind of IoT. It learned that galley oven failures on longhaul routes were either no-go items – grounding an aircraft until repaired, or a significant customer satisfaction issue. A solution was defined to monitor galley ovens, and with actual failure data collected over time, future failures based on warm-up time data became predictable. That’s the first order value – knowing when the oven is likely to fail, and reacting appropriately by ordering spare parts ahead of the need. But, the air carrier and third party aircraft maintainer went farther, integrating predictive failure data with aircraft scheduling and routing data, spare oven inventory data – especially, locations of spare ovens, and the availability and locations of skilled labour to remove and replace the oven prior to its predicted failure. The result is a significant reduction in oven failures and resultant AOG (aircraft on ground) time. This example shows the power of the network effect which IoT solutions make possible. This is what’s going to be the characteristic of IoT in the coming years; the ability to uncover second and third order opportunities through IoT investments to address specific, first-order opportunities. GM: To what extent do you see it as the role of a vendor to help you customers calculate the ROI of IoT solutions? JM: The value propositions and ROIs of IoT investments are determined first by business models and then by the technologies that enable them. PTC is recognised as having the leading

IoT Now Monetisation Supplement - December/January 2018

industrial innovation platform for IoT, but that is only part of what differentiates us from other vendors. Our focus on helping industrial innovators achieve rapid first value, then expanded and sustained value from the technologies of digital – physical convergence, connectivity, data sharing and analytics sets us apart. The value of a vendor’s technology is measured by the business value realised by its users. GM: Do you think this challenge will continue to exist as organisations become more mature in their usage and approaches to IoT? JM: Yes, it will continue to exist but it will transition into a more diffuse and multi-participant challenge. Two years on from the large upturn in IoT interest and activity, we’re at a stage where first order value of IoT is being achieved by more companies. So many, that basic IoT capability is table stakes for most large industrial competitive markets. The challenges of identifying ROI and calculating it will become more complex as opportunities expand in scope and organisations seek to prioritise multi-participant deployments with the greatest business value. In the coming year, examples of successful IoT deployments in single factories will be eclipsed by examples in which ecosystems of stakeholders across different commercial organisations and functions achieve notable, unique new capabilities and offer new value proposition to their end customers. CEOs and senior leaders have to think about their ecosystem and trading partners, and how well they have designed and engineered their offerings to fits the needs and expectations of customers. This is the new calculus created by IoT. CEOs know they won’t achieve market differentiation solely because their factories are more efficient. They cannot cost-improve their paths to market leadership. Instead, they increasingly see IoT as a means by which they can fundamentally transform their businesses, with the added benefit that they can fund their experimentation and solution deployments with solid business cases based on demonstrable ROIs.



Never mind the tech, it’s all about the money An increasing number of companies across many industries are adopting IoT, but their reasons for doing so are very different, writes Peter Dykes. One of the primary reasons, it seems, is making cost savings through efficiencies such as monitoring remote plant or tracking assets as they move around the world. But should they be focusing more closely on generating new revenues?

Peter Coleman, a partner at consulting firm Simon-Kucher, says a recent cross-industry survey conducted by the company, which included IoT deployments, found that 81% of those questioned had made investments in digitalisation in the last three years. When asked what they were trying to achieve, 21% said they were trying to reduce costs, a similar number said they were looking to increase revenues and 54% said it was a combination of both. However, taking all those who said they were trying to increase revenues to some degree – 75% of respondents in total – only 23% said they had seen any degree of top-line impact. Coleman puts this down to a lack of adequate planning. “It may well be that someone has set themselves a goal without clear targets,” he says. “But we know from the same survey that unit cost reductions are not realistic and that


they will stay the same or increase. So we’ve got a dichotomy where they know the opportunity is on the revenue side, they know the cost position isn’t likely to get better and may even get worse, they know they want this stuff to affect the top line, but what they’ve done so far hasn’t been sufficient.” Of course, the situation that Coleman describes could just be because many IoT deployments are just at the proof of concept stage. Jonquil Hackenberg, the head of Advisory Practice at Infosys Consulting believes that many companies are just dabbling in new tech, just to see how it can be used in different scenarios, although there is a good case for profitability in the future. This is especially true in things like proactive, automatic stock reordering ordering where a company may make more sales as a result. “There is a massive opportunity for a return on investment, increasing revenues and introducing new lines of business,” he says. “However, once they stop dabbling with proof of concepts and start working out the end-toend consumer journey they’re trying to create, that’s when it will stop being about making savings and becomes more about money making.” Indeed, While IoT has been discussed for many years, it is only relatively recently that tangible deployments are becoming mainstream. It’s true that many of these are focused on creating operational efficiencies, but IoT deployments that are likely to be most ▼

A lot of people seem to think so. So far as digitalisation in general is concerned however, many companies do seem to be aware of the need to think in terms of revenue growth through investment in technology, but a significant proportion are having problems in achieving that end. While there are distinct advantages to using a new technology to make a business more efficient, it’s important to make sure the initial investment can be recouped. This is particularly important with IoT because, so it would appear, it is not widely understood by its potential beneficiaries.

IoT Now Monetisation Supplement - December/January 2018

£ Theresa Bui, Cisco Jasper

Jonquil Hackenberg, Infosys Consulting

successful in the market will create new revenue by delivering IoT services that enhance the customer’s experience. Theresa Bui, the director of IoT Strategy at Cisco, says there is no doubt that the market is moving in this direction and it is likely that there will be an increasing number of companies wanting to provide services to IoT devices. But to do this, companies need automated IoT connectivity and data management platforms – paired with reliable networks – to deliver these services. Without the ability to automate the management of connected devices and the data they produce, delivering IoT services to thousands or millions of devices becomes unfeasible. She adds, “While connected services are critical to monetising IoT, those services need the support of automated IoT platforms as well as reliable networks that can guarantee their market viability.” These are issues over which the Wireless Broadband Alliance (WBA) has been deliberating, with both operators and vendors working on both interoperability and roaming. The problem is that different verticals will use different radio technologies and different networks, so it is vital that everything related to mobility is interoperable and capable of roaming. Use cases such as global asset tracking and fleet management will require such capabilities as they travel around the world and so addressing these issues is vital for these particular segments. On the subject of segments, there is a very clear difference in the requirements between segments such as IIoT and smart cities on the one hand and the connected home on the other. Nowhere is the division clearer than in

their respective drives for revenue growth. The former is very much a slow-burn market, while the latter is already growing quickly. Tiago Rodrigues, the senior director for Project Management and Membership Services at the WBA explains, “If we look at the enterprise or industrial type of company, many of them are looking for some kind of efficiency gain through production. In the connected home market however, companies are looking to increase revenue by providing security services, or remote control for things like lighting and heating. This is an area in which network operators are also looking to make money from as well as the automotive vertical.”

While IoT has been discussed for many years, it is only relatively recently that tangible deployments are becoming mainstream

He adds, however, that because the industrial and smart city sectors are not moving as fast as the connected home market the implication is that the first two need additional expertise to implement those technologies In addition, they have to change their processes to be able to make use of the new data they are collecting. “Somehow, they have to reorganise the way that some of these companies are set up,” he says. In the case of smart cities, another topic for discussion at the WBA recently because, they don’t know about telecommunications, they don’t have the system engineers and they don’t have the expertise available, adds Rodrigues. So, depending on your vertical, the logical thing to do seems to be to work out longerterm strategic goals, try out the technology and see where it fits in terms of revenue generation and only then go for a roll-out. But if this process seems too long-winded and the money too far away, maybe you should be in the connected home market instead.

IoT Now Monetisation Supplement - December/January 2018



18TH EVENT SINCE 2009 Orlando is open for IoT Evolution in January 2018


IoT Now Monetisation Supplement - December/January 2018

Special registration offer for IoT Now readers Register with code NOW and Save US$500!

Key exhibitors Include: • Accelerated Concepts • Altaworx • Anaren • Axis Communications • Bridgera • Citrusbyte • Cradlepoint • Encore Networks • Exakom • IBM • Ingenu • KORE Wireless

The January 2018 IoT Evolution event provides attendees with access to expanded content that explores not only the IoT technologies that are driving enterprise growth and proficiencies, but the vertical markets where IoT will be most impactful. IoT Evolution is carefully developed to educate and inform attendees on how to strategise and build end-to-end IoT solutions. From building a network of edge devices to IoT gateways to scalable IoT connectivity networks, IoT Evolution covers all the critical issues and provides attendees, regardless of knowledge level or implementation stage, an unmatched resource for information, contacts, partners and providers. The conference includes content on IoT business intelligence and analytics, solutions for enterprise operations, fog computing, and sessions focused on IoT’s business and financial implications. In addition, there are several collocated conferences with laserfocused content on key verticals, IoT connectivity and security. ▼

• Nimbelink

The IoT Evolution event to be held on 22-25 January, 2018 at Disney Contemporary, Orlando, Florida, USA, will welcome 3,500 visitors and host more than 60 exhibitors. Here, IoT Now provides a preview of the show and conference

• Octo Telematics • • ServiceMax, a GE Digital company • SIMCom Wireless Solutions • Systech Corporation • Twin Oaks Computing • Virtium Solid State Storage and Memory

IoT Now Monetisation Supplement - December/January 2018



Conference tracks include: IoTE business intelligence and analytics: In this track, attendees will delve into the inner workings of strategic business intelligence and analytics. Learn how sensors and IoT technology at the edge of the network deliver information, and how that intelligence is processed, managed and utilised to help enterprises make powerful tactical business decisions that will lead to real improvements in business outcomes.

Enterprise Ops:


Operations is where the work of IoT implementation happens in the enterprise. To explore the ways to enable operators to make use of remote management and asset tracking to maximise operations, lower costs, be more effective and find new revenue opportunities. Here, enterprise executives will learn how to build systematic IoT strategy, engineers will learn where to focus their efforts for the greatest returns and business development will see the trends that will shape the industry.


IoT Now Monetisation Supplement - December/January 2018

Collocated events: LoRa-CON explores the technologies and deployment benefits associated with LoRa and related connectivity solutions. Take a deep dive into LoRa technologies as well as narrowband IoT, (NBIoT), CAT M1 and Cellular. Compare and contrast these solutions and see what is right for your application and your company. Other topics will include security and application case studies in logistics, smart cities, industrial solutions and more. The Third Industrial Revolution is embodied in the IoT, and innovation is the heart of our industry. At the Industrial IoT event, which hosts a series of forward-looking sessions and breakouts, attendees will look ahead to make plans for implementing the Systems of Things that will shape the future of todayâ&#x20AC;&#x2122;s manufacturing and production functions. Learn from IIoT test beds and use cases, hear about factory floor solutions that improve production management and control and get technical solutions to mitigate cybersecurity risks. At the IoT Security 4.0 Conference, you will learn how to protect assets, actions and information. Learn how the world of cybersecurity is evolving into new paradigms of management and control. Key topics include; advances at the silica level that minimise opportunity for human error, session layer and software defined systems that isolate and target specific devices to avoid attacks, plus block chain and other identity management strategies that keep documentation and systems monitoring current. At the Smart City Event, discover the nearly limitless potential of smart cities and how connected solutions will drive city wide improvements, better quality of life for residents and business opportunity for enterprises. Hear how your company can use these new capabilities to create new business models and drive revenue. IoT Evolution Health is laser-focused on showing attendees how IoT technologies, and associated business initiatives, can improve patient outcomes, drive down costs and expand patient's treatment options. This is the leading education and networking forum for healthcare enterprises, IoT developers, suppliers and health OEMs. All attendees will have an opportunity to learn from each other and collaborate on solutions that will lead to improved efficiencies, new profit centres and better health outcomes for patients.

IoT Now Monetisation Supplement - December/January 2018



Other special events: Connectivity showcase Industry leaders will battle live to prove their preferred connectivity standard is the best for IoT applications. In an exciting competition, companies will present their best cases for LPWAN, NB-IoT, CatM1, Bluetooth, Z-Wave, Satellite, Small Cell, LoRa, RPMA or any other IoT connectivity technology.

Business Impact Awards: The IoT Evolution Business Impact Award is a special awards programme focused on recognising companies and business leaders who have successfully implemented M2M and the IoT solutions to solve a business issue, launch a new service or create a revenue opportunity. Winners present their solutions during the event.

IoT Evolution All Conference Party An opportunity for all conference attendees to network and establish new connections, in a fun, relaxed atmosphere.

Pre-Conference Workshops on Monday, 22 January 2018: IoT Security Certification The greatest hurdle facing the IoT right now is security and what’s even more challenging is that it’s a moving target. Recognising that, IoT Evolution is bringing this IoT Security Certification programme to its preconference agenda with the goal of arming attendees with the most upto-date tools for protecting their networks and their customers. Topics include: edge computing and intelligence, IIoT, breach response/countermeasures, risk assessment and more.

Fog Computing Workshop Realize the benefits of distributed computing, networking, and storage infrastructure and learn how to extend the cloud to the edge to drive big data, analytics and IoT applications. Hear how fog will reduce service latency, improve quality of service (QoS) and provide superior end userexperience

IoT Certification

Sessions specifically focused on identifying best of breed solutions as well as managing the IoT ecosystem of partners and competitors to maximise your IoT opportunities. Hear how IoT reseller and value-added reseller (VAR) relationships can help create and implement your go to market strategy. Find out how to go simple from a simple IoT prototype, to a market-leading solution faster with the Verizon ThingSpace Platform.


IoT Now Monetisation Supplement - December/January 2018

Keynote Speakers:

Gary Davis, chief consumer security evangelist, McAfee

Rhonda Dirvin, director, IoT and Embedded, ARM

Dipti Vachani, vice president of the Internet of Things Group, Intel

Veeru Ramaswamy, vice president, Watson IoT Platform, IBM

George Mulhern, chief executive, Cradlepoint

Additional speakers include: ABI Research, Ryan Martin

Harbor Research, Alex Glaser, vice president

Accenture, Abhishek Joshi, strategist

Hewlett-Packard Enterprise, Douglas Humphries, IoT cyber security executive, architecture lead

Adaptive Mobile, Ciaran Bradley, CTO Aizoon, Rob Dolci ARM, Rhonda Dirvan Axis Communications, Vince Ricco, business development Ayla Networks, Craig Payne, security and privacy officer BEC Technologies, Andy Germano, vice president CalAmp, Julie McGowan Canaccord Genuity, Mike Walkley Cassia Networks, Felix Zhao, CEO Cisco, Chuck Byers, principal engineer and platform architect Cisco, Sudarshan Krishnamurthi Cisco, Wes Sylvester, director, Digital Transformation Coris, Marc Josephson, CEO Cradlepoint, Todd Krautkremer

IBM, Tim Hahn, chief architect, Internet of Things Security Infineon, Steve Hanna IoT-Council, Claudio Lima J Brehm & Associates, James Brehm, founder and technology evangelist Kansas City Water, Andy Shively MultiTech, Sara Brown, CMO NetFoundry, Galeal Zino OpenFog Consortium, Lynne Canavan, executive director Oracle, Travis Russell, director of network security SAP, Pushkar Ranjan Silicon Labs, Christian Legare, chief of software engineering SPEC Sensors, Edward Stetter, general manager

Decisiv, Rob Bradenham, vice president of Data Services

Verizon, Marybeth Hall, senior director of marketing and product management and development

Dell, John Holleran, security and surveillance solutions architect

Verizon, Uzair Siddiqui, senior product and marketing manager

Digital Turbine, Daphna Steinmetz, CTO

Verizon, Doug Wilson, IoT specialist

Drakestar, James Turino, managing partner

Woodside Capital, Greg Mischou, senior partner and managing director

FreeWave Technologies, Scott Allen, CMO Steve Brumer, 151 Advisors Global Scape, Greg Hoffer, vice president, engineering

IoT Now Monetisation Supplement - December/January 2018

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IoT by the numbers





expected attendees


Companies participating


Who should attend IoT Evolution conference and expo? • M2M platform companies • Device manufacturers • Sensors and embedded systems companies • Systems integrators • Service providers – fixed, wireless and satellite • Enterprise executives in: - Fleet - Supply chain and logistics - Manufacturing and production - IT • Developers • Retail executives • Municipalities and government • Healthcare management executives and healthcare ecosystem



IoT Now Monetisation Supplement - December/January 2018


Join us at the ONLY dedicated IoT Networking event at Mobile World Congress 2018! Where? Networking Garden no 8 (upper concourse, between Halls 6 & 7) When? Tuesday 27th February 2018 Time? 4pm â&#x20AC;&#x201C; 6pm Come and meet the leading lights of the global IoT industry. Discuss future trends and the big ideas with IoT Thought Leaders, analysts and experts. Drinks, nibbles and entertainment are included. Numbers are limited and entry is with an invitation only.

PLUS! When you register to attend, you will automatically be entered in our FREE PRIZE DRAW to win one of 5 GOOGLE Assistants â&#x20AC;&#x201C; winners to be announced at the Party.

To guarantee entry, register now for your invitation. E Mail: Sarah Bulford:

ThingWorx is purpose-built for the Internet of Things, with tools, APIs, an nd marketplace extensions that lower costs, inccrease developer productivity, and speed time-to-market. t With the ThingWorx Industrial Innovation Platform, you have access to a powerful development engine and a broad set of innovative technologies that extend the power of the IoT: CONNECT to any Thing CREATE Apps for all Users ANALYZE Machine Data EXPERIENCE all Things through Augmented Reality

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IoT Now Magazine December-January 2018  
IoT Now Magazine December-January 2018