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Developing for the IoT Exploring the infinite opportunities Overview of the IoT

Malik Saadi, Managing Director Market Landscape June 2, 2017

• IoT Value Chain • Unlocking revenue potentials, • Interoperability issues • Where is the money? • Making sense of IoT standards • Innovation and IoT

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• IoT is not a single market but a collection of verticals and adjacencies • Market in early stage of development • Verticals with own requirements • Very crowded market and intense competition across the whole value chain • Technology is still largely fragmented • proprietary implementations • Deep customization • Heterogeneity of machines, sensors, and connected equipment • Heterogeneity of data • Heterogeneity of decision making • Lack of compelling ecosystems • Implementers very confused

2016 2021 Internet of Digital . PCs and digital home . Mobile devices

Internet of Things . Connected car . Smart home . Wearable computing . Smart buildings and cities . Energy and industrials . Retail, Advertising, and • 2017: there are 14 billion IoD Devices, 13 billion IoT Devices supply chain • 2018 will be the first year that IoT endpoints outnumber IoD endpoints. . Others • 2021: IoT will account for nearly 65% of all active connections

. 2021: the IoE is forecast to total 48.9 billion connections.

• Retail, advertising, and supply chain have the lion share with 30% share in 2017 • Wearable computing will remain a tiny part of the IoT market • Others include non-retail beacons, robotics, toys, application specific wearables (wearable cameras, 3D motion trackers, etc.)

IoT Value Chain

Professional • System Integration • Big Data and Analytics Hundreds of Companies Services • Consulting Services Applications • Application Development Tools and Services 100+ SDKs and 200K+ IoT developers • Device Cloud 50+ Platforms Device Cloud • Device Cloud to Device Software Platform • Service and Device Management 50+ RTOS and OS Apache, Mynewst, mbed, Atomthreads, BitThunder, ChiviOS, distortos, Erika, FreeRTOS, Fusion Embedded, Integrity RTOS, LynxOS, Mark3, Device • IoT Device Software (RTOS, OS) MEOS, MQS, Nano-RK, Nucleus, Nut, Nuttx, PikeOS, QNX, RIOT, Intelligence RTEMS, RT-Thread, scmRTOS, StateOS, Stratify, TargetOS, ThreadX, TI-RTOS, Micrium, Unison, VxWorks, Zephyr, Ontiki, Brillo, Fuchsia, LiteOS, Mantis, OpenWrt, OpenWSN, Ostro, Tizen, 20+ connectivity solutions, excluding variants Connection • Communication Devices • Connectivity Management • Connectivity Management Services 1000s of boards Hardware • Device Design Services • Install/Deploy • 100s of sensor types Connection • Sensors & Related Field/ Machine Hardware • Dozens of processing architectures

• Revenues outlined here gathered from 32 IoT application segments

• Revenues will remain largely low compared to the mobile market

• Most of revenues are generated from the higher stacks of the value chain

• The hype of IoT is currently driven by the technology supply chain • Tech vendors: more work to educate implementers on the benefits and value of IoT • Misalignment between supply and demand planning translates into uninformed decisions • The mission of tech vendors exponentially complex as a function of number of verticals targeted

• Multiple Standards Confusing the industry • Standard Rationalisation/Harmonization is eminent • Interoperability key for IoT success

IoT Value Chain

Professional

Services $$$$$$

Applications

Device Cloud

Mmarkets

Device Value

Intelligence

Connection $$ Diversity Model Business Alignment w/ End w/ Alignment Management Standards Hardware Connection

Both partner and compete with IoT Frameworks

Partner strategy – Position yourself within the value chain but look at the bigger picture

Influence roadmaps for IoT Frameworks through participation to standards and alliances

Compete Strategy: Consider higher stack strategies

. Always look at the bigger picture and identify how you can be different

. Both technology and business model innovation

. Make your products scalable

. Listen to the requirements of implementers. “Build it and they will come” model may not work

. Avoid proprietary frameworks

Interoperability! Interoperability! Interoperability!