Connect. Secure. Monetize.™ ’s Three Pillars to Support Your Success in Industrial IoT CONNECT. SECURE. MONETIZE.™

Industrial IoT: the fourth industrial revolution

The Industrial Internet of Things (IIoT) has started to dramatically change the industrial landscape, transforming organizations BY 2020 around the world, opening up exciting new business opportunities and blazing a trail for economic growth.

We are on the cusp of the ‘fourth industrial By reading this book, you will find out revolution’, which Professor Klaus Schwab, more about how IIoT is transforming BN Executive Chairman of the World Economic your world and how Gemalto is acting 26 Forum, says is “characterized by a range as a key enabler for this exciting, new NETWORKED DEVICES AND of new technologies that are fusing the industrial ecosystem. CONNECTIONS GLOBALLY, physical, digital and biological worlds, UP FROM 16 BILLION IN 2015 3 impacting all disciplines, economies and industries.” IF POLICY MAKERS AND BUSINESSES GET IT RIGHT, IIoT will create a revolutionary new way LINKING THE PHYSICAL of working and living, powered by a AND DIGITAL WORLDS multitude of connected machines and COULD GENERATE UP TO devices, sharing data and turning it into business intelligence. Gemalto is the go-to partner to help mine $11 TN these exciting opportunities. As a global A YEAR IN ECONOMIC VALUE BY 20251 expert in machine-to-machine communications, with 20 plus years’ experience in the field, we have developed an extensive portfolio of solutions, services and platforms to build trust in this truly 1TN SENSORS connected world. CONNECTED TO THE INTERNET BY 20252

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KEY REQUIREMENTS ARE NEEDED IIoT: opportunities and hurdles TO ENABLE INDUSTRIAL IoT

The potential for IIoT is staggering. Over the next 15 years, IIoT could add as much as $14 trillion to 20 of the world’s major economies. 4

Machine-to-machine, commonly known backward device compatibility is essential as M2M, has come a long way. A decade for applications to adapt to changing or so ago, it provided basic machine- environments, allowing for updates over REMOTE AND to-machine communications. It is now their long lifecycle. UNATTENDED DEVICES often referred to in the industry as the An adaptable security infrastructure is ‘plumbing system’ for IoT, providing the also paramount as systems can be built connectivity for a multitude of machines on hundreds of thousands of sensor nodes, and infrastructures that makes IoT happen. hugely increasing the attack surface and EXTREME COST PRESSURE IoT and ‘smart devices’ will revolutionize scope of cyber threats and data breaches. ENVIRONMENTS TRUSTED TECHNOLOGY ON THE EDGE DEVICES human-machine interaction and the way At the same time, companies need to + TRUSTED PARTNER machines talk to one another. Energy, retain their agility in an increasingly = TRUSTED healthcare, automotive, agriculture, competitive playing field. This can be IoT ENABLER transportation, supply chain logistics, done through monetization green practices and manufacturing are platforms allowing for updates, upgrades among the sectors already exploring the and the flexible deployment of innovative capabilities of IIoT. business models providing excellent But, IIoT does not come without its return on investment. LONGEVITY COMPLEX challenges. Embracing IIoT requires 10 – 15 YEARS+ VALUE CHAIN Above all else, strong partnerships with a new way of thinking about how experienced players in the IIoT ecosystem industrial systems are designed are essential for organizations to and used. successfully connect industrial devices Industrial applications have very specific and use advanced analytics and intelligent LOW POWER requirements compared to consumer decision-making to harness the power CONSUMPTION NEED applications. Often, devices are in the and potential of a 24/7 connected world. field unattended for many years and exposed to extreme environmental conditions. These devices need to be very reliable and scalable – and backed up by robust connectivity. Forward and

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GEMALTO BRINGS A CIRCLE OF TRUST TO INDUSTRIAL IoT Trust is key to the success of IIoT

Gemalto takes a 360 degree approach by providing the essential building blocks that are required to create a robust IIoT ecosystem. By bringing a circle of trust to IIoT, Gemalto helps companies focus on ‘trusted connectivity’, ‘solid security’ and a ‘valuable monetization platform’– all prerequisites of a productive and rewarding IIoT roadmap.

We are with you every step > Automotive: There will be 10 million of the way… driverless cars on the roads by 2020.6 We are an established global company, > Healthcare: The installed base of operating extensively at local level. healthcare IoT devices, which provide Whatever your company size – from real-time diagnostic information to an aggressive start-up to a global enable doctors to track patients’ enterprise – we are here to help you. progress will grow from 95 million in CONNECT MONETIZE From connectivity and security consulting 2015 to 646 million in 2020, representing to IoT infrastructure recommendations, a 46% CAGR.7 Out-of-the-box connectivity Flexible revenue support, training and beyond. Our models > Transportation: Volvo has already Multiple form factors solutions are easily scalable, with Licensing and Over-The-Air updates allowing you taken part in a truck platooning Easy technology migration SECURE challenge, where autonomous trucks entitlement software to grow at your own pace. Quality of Service Secure the device driven in convoy, connected wirelessly, IoT application Many sectors rapidly benefit with the lead truck determining Subscription Management Secure the data development speed and route, drove across . OTA upgrades from IIoT: Changes in European transportation Secure the cloud > Smart energy: 800 million smart legislation will open up the highways Secure the network meters will be installed globally to ‘platooning’. Security Audit and by 2020. China is expected to drive lifecycle management penetration to almost 70% by 2022.5

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Opening the trusted box of connectivity

Sensors and other ´tracking´ devices provide vital data needed to feed analytical engines to improve efficiency and productivity. Maintaining trusted and robust connections is key.

This can become challenging for monitoring applications with a variety of profiles: Gemalto ticks ALL the boxes some that require high or low bandwidth, for trusted connectivity: extra low latency or those deployed in remote locations with extreme heat, > Reliable connectivity, ensuring dust and moisture exposure. business continuity To get the very best performance out > Global technology coverage / of IIoT, companies need to move away local optimization capabilities from consumer-grade platforms and > Stable form factors and footprints adopt robust industrial grade solutions for investment protection able to answer all of the challenges of an industrial environment. Deployed > Backwards and forwards applications need to provide reliable, compatibility to ensure smooth secure and future-proof connectivity migrations with long-run uninterrupted services. > Bespoke optimization for IIoT To achieve this, Gemalto offers a > Provision of a number of comprehensive portfolio of ruggedized industrial interfaces and modules and terminals, backward and embedded systems forward compatible footprints for easy migration to new technologies such as LTE, simplified network subscription management and quality of service platforms for effective remote lifecycle management. This comes with the experienced assistance and back up of Gemalto’s global technology consulting services and engineering support.

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Getting “things” connected

Connectivity is the very backbone of IIoT. At Gemalto, we provide global end-to-end solutions to ensure robust, secure, uninterrupted connections.

We can address customer requirements Take a deeper dive into what Gemalto Gemalto helps monitor IoT Gemalto provides flexible in all configurations – 2G, 3G, 4G LTE offers to secure customers´ IIoT application connectivity device connectivity subscription Advanced or IoT-optimized LTE radio deployment success: performance in real-time anytime anywhere technology (LTE Cat 1, Cat M, NB-IoT), designed with IoT in mind to focus on Gemalto enables always-on To ensure that our customers get Our On-Demand Connectivity (ODC) low power, low bandwidth, long battery cellular communications the very best in IoT quality of service platform simplifies connectivity deployment life and indoor coverage. Our broad portfolio of Cinterion® Modules (QoS), we offer high-level connectivity and provides a way to securely manage monitoring platforms. Gemalto MIM mobile subscriptions for the entire lifecycle We work with all the 450 major carriers, and Terminals enable always-on cellular Services Platform enables regular MIM of industrial devices, delivering a totally including AT&T, and Verizon, communications for virtually any IoT or audits and hardware monitoring to seamless customer experience. as well as regulatory authorities to get M2M application. Their rugged design, ensure peak performance for deployed prior approvals on our products and unparalleled engineering and manufacturing The ODC offer is based on the devices throughout their lifespan. The solutions. Our customers win valuable standards make them reliable in the implementation of an eUICC, also Gemalto Module Services offer a set of time to market as we take care of all most extreme environments and over referred to as eSIM, in the device, tools to proactively update and manage the testing processes. They can be safe the long life of IIoT solutions. which allows for remote network deployed applications and firmware on in the knowledge that our products are connectivity activation. Cinterion modules. For comprehensive compliant in the deployed region. Gemalto ensures SIM-cards are optimized for the most challenging application monitoring, our Quality of We provide instant connectivity on the industrial environments Services for IoT platform monitors the very first use of a device. This means cellular QoS of smart objects in real manufactured products can remain Often standard components just don’t work. time, ensuring both device and network generic until they reach the hands of To meet the needs for an M2M SIM card instant status and analysis, for the most end-users or solution providers, solving that is ruggedized for long life and extreme reliable connectivity. the supply chain headache of multiple conditions, we developed the Cinterion product variants and multiple profiles Machine Identification Module (MIMTM) to for multiple usage locations. enable secure cellular M2M connections. Over-The-Air (OTA) provisioning activates

connectivity on devices at any time and in any location for companies to choose and alter subscriptions based on their own preferences. This is important as the lifecycle of an industrial device may be 6 over 10 years. CONNECT. SECURE. MONETIZE.™

A water utility’s control system was hacked and the levels of chemicals used to treat tap water were altered. The hackers compromised the company’s computers by exploiting a vulnerability in the web-accessible payments system, using it Securing the IIoT ecosystem to get into the company’s web server. The hackers also gained to the personal records of over 2.5 million customers. Due to the sensitive nature of the hack the company’s real name or location have not been disclosed.8

With billions of devices connecting to IIoT, offering interconnected A cyberattack on an unnamed blast furnace at a German steel mill caused services, the possibility of vulnerabilities increases dramatically. “massive damage”. The hackers used a ‘spear phishing’ campaign to dupe A proven and robust approach to security is required to create a employees, gaining access to logins to get into the steel mill’s control systems. trusted and reliable ecosystem to protect devices and data. The hackers stopped part of the furnace closing down as normal, causing untold destruction.9

Our security solutions and services help all stakeholders in the community build As energy, transportation, agriculture, a secure infrastructure by providing and “The IoT redefines security manufacturing, automotive and heavy by expanding the scope implementing technologies to address plant industries become more reliant potential threats. Our offerings secure on IIoT, they will become increasingly of responsibility into new the complete ecosystem through the vulnerable to cyber attacks. All it platforms, services and entire lifecycle of devices – making sure takes is one open door and the whole directions. Moving forward, the data is secure at rest or in motion, ecosystem can be affected in seconds. in the network or in the cloud. enterprises should consider Security by design should reshaping IT or cybersecurity All industries are vulnerable be a given strategies to incorporate Recently, the Israel National Electricity known digital business goals One of the biggest challenges of IIoT Authority was hacked and systems were is that security has often been an and seek participation in infected with ransomware. Soon after, the afterthought in product development for digital business strategy Gundremmingen nuclear plant in Germany devices, many of which have never been was found to be infected with computer and planning.” connected to the internet before. The viruses. The results could have been increase in the number of devices connected catastrophic if they had not been isolated. Ganesh Ramamoorthy, and the amount of data in motion and at Research Vice President at Gartner The truth is all industries are open to rest inevitably increase vulnerability to hack attacks against critical infrastructures, malicious attacks. instigated to steal data and alter industrial Security by design is imperative to address control systems (ICSs) to shut down the major security concerns associated operations, or alter them to cause with IIoT. An emphasis on building security maximum damage. into products from the ground up ensures devices are shielded from attacks as much as possible, from the core to the edge of applications.

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Security lifecycle: managing the threat

IIoT brings with it more complexity: networks are getting bigger, more powerful and more distributed. To make sure enterprises and people can trust in our increasingly connected world, Gemalto delivers solutions, services and platforms that protect IoT applications from the edge to the core.

Lifecycle management starts at the The Cinterion® Secure Element, a tamper product design and development stage resistant hardware component embedded and runs through to device activation, in devices, delivers level maintenance, upgrades and beyond. Any , ensuring strong device vulnerabilities can mean delays, system authentication. It allows advanced failures or data leakages, leading to protection of automotive and industrial Our security experts are at your service: lost business. To build a root of trust in IoT applications. IIoT brings with it a whole new level of convergence and technology integration lifecycle management we help device Both tamper-resistant environments together with security challenges. Working out which products are right for your manufacturers, service providers and business might seem like a gargantuan task. Our global consultant team is here offered by our M2M-optimized SIM Mobile Network Operators deal with to help you every step of the way to ensure you get the right combination of reliable, (MIM) and eUICC also represent a security challenges head on: future-proof and scalable security solutions, adapted to your business. strong authentication token for cellular applications, whereas our Trusted With our wealth of experience and history in M2M project consultation and innovative Gemalto secures the device Key Manager provides credential solution deployment, we have more digital security expertise than anyone in the marketplace. Gemalto offers a complete portfolio of management for other non-cellular software and hardware solutions enabling networks, including LPWAN. Leave the complexity to us. We help you transition to IIoT as smoothly as possible and help grow your business accordingly truly secure connectivity. Gemalto secures the cloud Gemalto IP Protection solutions Our portfolio of solutions for data protects the intellectual property (IP) encryption and cloud security, including of embedded software applications Gemalto secures various types of devices already in the SafeNet Data-at Rest and Data-in- and data files, preventing reverse lifecycle management field, for complex ecosystems involving Motion, enable cloud service providers engineering or tampering. many stakeholders. Our Safenet’s code and enterprises to secure their cloud We provide robust and remote solutions signing security solutions are also a assets and sensitive data at all critical to create a sustainable security lifecycle building block of device trust, ensuring points of their lifecycle. management infrastructure. Through only software from legitimate providers our Trusted Service Hub, we manage may run on the device. the distribution of credentials towards 8 CONNECT. SECURE. MONETIZE.™

IOT APPLICATION ENABLEMENT PLATFORM The foundation for your monetization strategy APPLICATIONS

Streaming data from billions of devices will provide a huge insight into markets for those willing to take the time to CLOUD mine it. These new insights form the basis of new business SYSTEM ADMIN models and revenue streams. APPLICATION SERVICES

COMPLEX EVENT PROCESSING An established and well-thought out monetization program helps business NETWORK & DEVICE MANAGEMENT adapt to transformative markets and stay ahead of the curve. Gemalto can provide you with real insight into your data through our monetization SENSORS MACHINES DEVICES VEHICLES solutions. We can help you to effectively monetize your IoT applications through deployments of new services, pay-per-use models and all recurring revenues which create a relationship with the customer long after they have actually purchased a product. In tune with this new agile way of thinking, The platform also allows you to combine Build and roll out IIoT it provides flexibility and scalability aligned real-time device data with contextual applications easier and faster with business requirements, no matter information from cloud applications and which network or devices you are using. enterprise systems, to create actionable Our IoT application enablement platform You can design, create and manage business intelligence generating new helps you to bring new cloud-based applications simply by using pre-built revenue. capabilities and features to devices services and tools. This way, you can already in the field, using proven develop and roll out revenue-gathering application building blocks, shortening applications quickly, without getting your development time and cost, and bogged down in complexity and risks ensuring you remain competitive in involved in developing IIoT applications the long term. from the bottom up.

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SOFTWARE MONETIZATION PRODUCT DIFFERENTIATION BASED ON SOFTWARE FEATURES

Software – the road Advanced customized services Agility to remain to monetization for better end-user experience competitive

Software monetization utilizes different strategies to optimize profitability on software running on any platform: device, desktop, Usage based self-service Quick time cloud or platform as a service. These strategies can range from (pay-per-use) to market IP protection modes to innovative pricing and packaging options meant to align with your customer expectations. By proactively implementing a software monetization strategy you can adjust pricing models with business goals, maximize the value Easier of features and functions in your device, and maintain control over Easy device upgrade manufacturing your intellectual property. and pricing

Gemalto protects Intellectual Being able to implement perpetual to understand customer behavior, feature Property and help track subscription and usage based pricing valuation and plan future roadmaps product usage from the same code base allows more effectively. streamlined development processes, We are here to help you every step of Our solutions help protect your IP and and flexibility in pricing models, appealing the way in your monetization journey. trade secrets from competitive theft and to a broader addressable market. Deploying a winning software monetization reverse engineering. This helps prevent platform backed by expert consultation, counterfeiting in high piracy markets and Gemalto delivers intuitive trainings and workshops, customer ensures brand protection. end-user license and entitlement portals, electronic software delivery self-services capabilities could not be easier. Gemalto helps improve customer experience and create new Our web-based entitlement management pricing models solution gives software vendors and device manufacturers the ability to “All of a sudden you can Allowing users to activate software activate and provision cloud, on-premise program the world... If there functionality via self service portals and and embedded software applications from is something to be done in the view their software license consumption a single platform. They can carry out a provides greater transparency improving variety of tasks on a self-service portal, world, you must be able customer experience. improving overall satisfaction. Gaining full to do it by writing software”. visibility into software license activation Marc Andreessen, Co-founder venture and feature usage allow our customers 10 capital firm Andreessen Horowitz CONNECT. SECURE. MONETIZE.™

Gemalto – a partner of choice

In an increasingly connected industrial world, Gemalto is leading the way. We’ve been innovating in IIoT for twenty years. We are proud that we develop and own our technologies and make a considerable annual investment in R&D.

Gemalto thinks and acts globally. We have a worldwide presence, but know the importance of local support. We serve a END USERS BENEFIT host of industries and have an extensive 2BN+ FROM OUR SOLUTIONS network of distributors and partners in diverse locations. We employ 14,000 people from 117 different nationalities. We serve customers in 180 countries, meeting industries’ demands 15 K+ EMPLOYEES for mobile connectivity, security and monetization. We do far more than keep the lights on, we help industries maximize potential and beyond. Their vision is our goal. 48 COUNTRY LOCATIONS Gemalto offers a Circle of Trust for the IIoT with a 360° portfolio of hardware and software solutions systems and services designed to ensure you reach every objective on your roadmap. €3.1BN 2016 REVENUE Connect. Secure. Monetize.™ Uncover the untapped potential of industrial IoT in your business with Gemalto. TOTAL PATENTS 94 FILED IN 2016 11

For more information, please visit gemalto.com/iot, or follow @GemaltoIoT on twitter

Sources: 1. McKinsey Global Institute Report 2015 2. World Economic Forum: Deep Shift – Technology Tipping Points & Societal Impact 3. The Cisco Visual Networking Index 2016 4. Accenture: IIoT driving progress 5. Telefonica 6. BI Intelligence IoT Ecosystem Report 7. World Economic Forum: Deep Shift – Technology Tipping Points & Societal Impact 8. Verizon Security Solutions: Data Breach Digest March 2016 Design: Futurity Media Design: Futurity 9. Germany’s Federal Office for Information Security (BSI) report 2014 marks of Gemalto and service trademarks are logo, the Gemalto Gemalto, 2017. All rights reserved. ©Gemalto and iStock. Shutterstock credits: EB (EN) – May 2017 Photo countries. in certain registered and are

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