Hfs Blueprint Report

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Thriving In The As-a-Service Economy

HfS Blueprint Report

Internet of Things (IoT) Services

September 2015

Charles Sutherland Chief Research Officer [email protected] Table of Contents

TOPIC PAGE

Execuve Summary 2

Research Methodology 8

Key Market Dynamics 15

Service Provider Grid 23

Service Provider Proﬁles 27

Market-Wrap and Recommendaons 46

About the Author 53

n The Internet of Things (IoT) Services HfS Blueprint Report is a first take at the emerging value chain of services developing from service providers which are addressing this potenally huge and transformave technology stack. Unlike other quadrants and matrices, the HfS Blueprint idenfies relevant differenals between service providers across a number of facets under two main categories: innovaon and execuon. n HfS is emphasizing the emerging nature of IoT with 55% of the total Blueprint scoring linked to innovaon based evaluaon criteria. n HfS Blueprint Report rangs are dependent on a broad range of stakeholders with specific weighngs based on 1,109 stakeholder interviews from the 2014 State of Outsourcing Survey that covered: • Procurement Outsourcing Enterprise Service Buyers • Procurement Outsourcing Service Providers • Procurement Outsourcing Industry Influencers (sourcing advisors and management consultants) • HfS Sourcing Execuve Council Members with Procurement engagements • HfS Research Analysts with hands-on Procurement knowledge and experience

HfS Deﬁnes IoT As:

1. The associaon of data to a physical device and, 2. The delivery of this data from that device to a centralized repository for further processing.

Note: The devices delivering the data may or may not create the data themselves and may or may not process the informaon prior to delivery. i.e. These can be intelligent or dumb – ranging from an item tagged with an RFID chip that is coded with a unique idenﬁer to a large sophiscated windmill processing data onsite regarding its power generaon. Further, the communicaon of the data may be done via a combinaon of wired and / or wireless networks. These networks can be either open or private and while this communicaon is oen carried out via IP protocol, it is not a requirement. As a result, IoT includes a broad set of acvies some of which have been ongoing for decades such as certain aspects of industrial control.

HfS deﬁnes IoT Services as any service provider engagement directed at developing associated strategy for enterprise embrace of IoT and / or assisng an enterprise gather data associated with a physical asset and communicang that data to a centralized plaorm for the purpose of deriving insight into how it may raise operaonal eﬃciency or increase revenue through the creaon of new products or services. The crical starng point for most IoT Services engagements is a business problem or need.

A debate has begun to rage across the technology landscape today regarding IoT. Is it or is it not the next big thing for Enterprise IT? Semi-pessimists view IoT as largely an industrial focused opportunity where big assets are beer monezed and controlled via intelligent digital interfaces. These folks see IoT as nothing new and - while an important trend - not one to get overly excited about. Opmists, typically those who more recently turned their aenon to IoT, maintain a broader vision that hones in on what is possible rather than probable. Oen with these debates the ﬁnal level of acvity rests somewhere between the two. This me, however, we see one of those rare excepons when reality may likely surpass the expectaons of both. The reason is twofold: • First, the deﬁnion of IoT is expanding. This is because IoT is not a technology market but a go to market concept that incorporates the deployment of core emerging technologies already being acvely deployed today. Big Data, Analycs, Mobility, and Cloud are all enablers of IoT and this allows – even requires – it to become a unifying theme. • Second, the scope of what is probable is on the rise. As the cost of creang, gathering and analyzing data connues to drop, conversely the business cases for doing so connue to expand. As a result IoT is beginning to touch every industry, and we ancipate this will accelerate in 2016+.

n Proofs of Concepts (PoCs) lead the market. Today the discussion is led by disruptors embracing IoT – from consumer applicaons like Uber and Airbnb to industrial uses such as GE’s revamp of the airline engine business – but the current market reality has few enterprises embracing IoT beyond a few core areas that has been operang in this fashion for years. (Think factory automaon.) Yet complacency is to be avoided. HfS has seen a explosion in PoCs during 2015 and expect many of these to go into producon during 2016. n There is nothing close to a consensus on IoT services. Service providers are approaching the IoT opportunity from every conceivable angle. Not only is it of an amorphous nature but IoT bridges mulple competencies currently housed within different pracce lines. Needing to tap engineering, analycs, mobility and cloud, individual service providers are being pragmac with approaches and this means each is defining it so that it leads with the most relevant capabilies. n Systems Thinking may be the next big skill. The ability to generate and gather data on a broad range of physical assets and interacons will only yield value if the right insight and acon can be understood. Systems thinking combines a mix of art and science that is well suited to this challenge and HfS expects an upck in interest as enterprises look to grasp the opportunies available to them via IoT. n IoT opportunies requiring competors to collaborate. Geng value from IoT means harnessing “the network effect” where the value of individual inputs takes on more meaning as the number of inputs grow, it is IoT. Plaorms that integrate data from mulple sources will be the ones that yield greatest value. Manufacturers and service providers will need to be open with APIs if the offerings are to be ed into the emerging new web.

n Learning to partner becoming a key skill. For tradional IT service providers, the complexity surrounding IoT will drive each to partner with a broader range of companies and as each does it will heighten its ability to do so well as a key differenator. There is nothing close to a set of IoT standards today and likely never will be for years as the broad range of sensor, network and data protocols all make sense within the unique markets for which they have emerged. Therefore, stching all this together quickly will be a key need and it does not make sense for any one firm to develop experse in it all. n Risk has become a third dimension of go / no-go alongside value and cost. Enterprise buyers are advised to look at overall risk as a key criteria in the decision whether to pursue a strategy based on IoT. At a minimum, they need to ensure someone at their firm is taking a holisc view of risk and security so as to prevent piecemeal parts of IoT from opening up vulnerabilies to the enre company in unforeseen ways. n Strategic nature of IoT today liming leverage across clients. Most enterprises embarking down the IoT path see it a strategic – whether in increased operang efficiency or allowing them to enter new markets or serve old ones in new ways. As such, enterprises are keeping the acvies under wraps and requiring service providers to do the same.

Data Summary This Report is Based On: n More than 1,080 data points were collected from more than 56 IoT Services contracts, covering 18 major service n Tales from the Trenches: Interviews were providers. There were others such as Wipro, HCL, HP and conducted with buyers who have evaluated Capgemini whose IoT service offerings are sll evolving service providers and experienced the services. and were not yet in a posion to be included but which Some were supplied by service providers, but we will report on later. many interviews were conducted by HfS n Data was collected in Q2-Q3 2015, covering buyers, Execuve Council members and parcipants in providers, and advisors/influencers of IoT Services. our extensive market research. Parcipang Service Providers n Sell-Side Execuve Briefings: Structured discussions with service providers were intended to collect data necessary to evaluate innovaon, execuon and market share, and deal counts. n HfS “State of Outsourcing” Survey: The industry’s largest quantave survey, conducted with the support of KPMG, covering the views, intenons, and dynamics of 1,100+ buyers, providers, and influencers of outsourcing. n Publicly Available Informaon: Financial data, website informaon, presentaons given by senior execuves, and other markeng collateral were evaluated.

© 2015 HfS Research Ltd. Proprietary │Page 9 IoT Services Value Chain IoT Services are those that design, create, and manage a pathway for the physical world to enter the As-a-Service Economy by creang a bridge between hard goods (& services) and digital infrastructure.

IoT CONSULTING IoT ENABLEMENT IoT CONNECTIVITY IoT INTEGRATION IoT MANAGEMENT

• Strategic planning and • Product engineering • Network engineering • Database design and • Device management business case • Sensor development • Network build • Cloud hosng development • Soware engineering implementaon • Analycs • Network management • Governance strategy Implementaon • Embedded technology • Network security • Data security • IoT technology • System integraon • Device security roadmap (reference • Applicaon architecture) modernizaon • Custom App Dev (dashboards, visualizaon, etc.)

IoT Services, however, do not include the following acvies when conducted as a standalone service: deploying or operang analycs; implemenng or running a data repository; developing or delivering a network; and creang or maintaining a physical device with the capacity to create and or / communicate data. Those standalone acvies would be classiﬁed as Analycs, Big Data, Network Implementaon, and Product Engineering Services, respecvely.

Key to Services Maturity on the Service Provider Proﬁle Pages

Relies on Partners Maturity is based off the full set of weighng criteria Less Mature Services for IoT Services, and the five boxes are the five areas More Mature Services of the value chain

EVALUATION CRITERIA CRITERIA WEIGHTING

Two major factors: Criteria are weighed by crowdsourcing • Execuon represents service providers’ weighngs from the four groups that ability to deliver services. It includes but is maer most: not limited to: • Enterprise Buyers – Customer sasfacon • Service Providers – Tools and methodologies • HfS Research Analysts Team – Technology experse • Advisors, Consultants, and Industry • Innovaon represents service providers’ Stakeholders ability to improve services. It includes: – Industry and Process experse – Collaboraon capabilies and partnerships – IoT speciﬁc oﬀerings

EXECUTION 45.0% Quality of Customer Relaonships 15.0% Quality of Account Management Team 5.0% How Service Providers Incorporate Customer Feedback 10.0% Real-World Delivery Soluons 20.0% Proprietary Delivery Models 15.0% Standard Delivery Methods 5.0% Flexible Pricing Models to Meet Customer Needs 10.0%

INNOVATION 55.0% Future Alignment with Changing Market 25.0% Acquision and Investment Strategy 5.0% Partnership Ecosystem 10.0% Collaboraon and Development Techniques 10.0% Strength of Vision for IoT Services 15.0% Ability to Go Beyond Stage 1 (Digizaon) in IoT 15.0% Creaon of Proprietary Frameworks for Analyzing Needs 5.0% Industry Experience 10.0%

TOTAL 100.0%

EXECUTION How well does the service provider execute on it's contractual agreement and how well does the service provider manage the client/provider relaonship?

Quality of Customer Relaonships How engaged are service providers in managing the client relaonship based on the following metrics: quality of account management, service provider / client engagement, and incorporaon of feedback?

Quality of Account Management Team What is the quality level of professional skills in the account management team?

How Service Providers Incorporate How have service providers taken feedback and incorporated that feedback into oﬀerings? Customer Feedback

Real-World Delivery Soluons Does the soluon provided compare favorably to peers with regard to value creaon through current oﬀerings, partnerships, subject maer experse, and delivery models?

Proprietary Delivery Models What if any proprietary soware plaorms and process structures has the service provider created to deliver these services?

Standard Delivery Methods What if any standard soware tools and business plaorms does the service provider ulized to deliver these services?

Flexible Pricing Models to Meet Customer How ﬂexible are service providers when determining pricing of contracts? Have the service Needs providersaligned these terms with the unique demands around IoT projects?

INNOVATION Innovaon is the combinaon of improving both services and business outcomes.

Future Alignment with Changing Market How future looking is the service provider in terms of aligning itself – both in skills and oﬀerings – with the evolving market demand? Is it keeping pace, a fast follower, or leading the way?

Acquision and Capability Development How does the service provider incorporate capability development investments including acquisions into its strategy and what has been accomplished already?

Partnership Ecosystem What is the role of partnerships in the development of the service provider’s soluon ecosystem? How extensive is the current partnership ecosystem?

Collaboraon Techniques How well does the service provider collaborate with clients and partners to develop PoCs into full scale business soluons and IoT oﬀerings?

Strength of Vision for IoT Services Does the service provider have a strong vision for services across the IoT value chain?

Ability to Go Beyond Stage 1 in IoT How well have service providers integrated innovave new approaches and emerging skills and technologies into services? Does it also bring the core technology plaorm to assist an enterprise deploy the next level of IoT soluons?

Creaon of Proprietary Frameworks What if any proprietary frameworks does the service provider ulize to analyze the underlying for Analyzing Needs business need?

Industry Experse Does the service provider have any industry IoT speciﬁc oﬀerings? If so, what are the nature of these and how far advanced is it in building this area out?

LEGACY OUTSOURCING Simpliﬁcaon AS-A-SERVICE ECONOMY

Resolve problems by looking Generate creave soluons by 1. Design and System Thinking ﬁrst at the process understanding the business context

Complex, oen painful technology and 2. Business Cloud “Plug and Play” business services process transions to reach steady state

Fragmented processes requiring manual Blending of automaon, analycs, and 3. Intelligent Automaon intervenons, mulple technologies talent

Operaons staﬀ doing mostly Operaons focused on interpreng data, 4. Proacve Intelligence transaconal tasks seeding new ideas

Ad-hoc analysis on unstructured data Real-me applied analycs models, 5. Intelligent Data with lile business context techniques, and insights from big data

Legacy technology investments drain Use of plaorm-based services makes 6. Write Oﬀ Legacy budgets to remain funconal many tech investments redundant

Governance staﬀ manage Governance staﬀ manage towards 7. Brokers of Capability contracts and service levels business-driven outcomes

Pricing and relaonships Pricing and relaonships based on 8. Intelligent Engagement based on cost, eﬀort, and labor experse, outcomes, and subscripons

AS-A-SERVICE NON ALL IDEAL INITIAL EXPANSIVE EXTENSIVE IDEAL DEFINITION EXISTENT PERVASIVE

Design Generang creave soluons by Thinking understanding the business context 2015

Business “Plug and Play” business services Cloud 2015

Intelligent Blending of automaon, analycs Automaon and talent 2015

Proacve Operaons focused on interpreng Intelligence data, seeding new ideas 2015

Intelligent Real-me applied analycs models, Data techniques, and insights from big 2015 data Write Oﬀ Use of plaorm-based services Legacy makes many tech investments 2015 redundant Brokers of Governance staﬀ manage towards Capability business-driven outcomes 2015

Intelligent Pricing and relaonships based on Engagement experse, outcomes and 2015 subscripons

AS-A-SERVICE IDEALS:

Design Thinking Brokers of Capability Intelligent Engagement THE 8 IDEALS OF THE AS-A-SERVICE ECONOMY:

1. Design Thinking 2. Business Cloud 3. Intelligent Automaon 4. Proacve Intelligence AS-A-SERVICE IDEALS: 5. Intelligent Data 6. Write oﬀ Legacy Design Thinking ENTERPRISE 7. Brokers of Capability BACK OFFICE FRONT OFFICE BRAND 8. Intelligent Engagement Business Cloud EMPLOYEES CONSUMERS

Write Oﬀ Legacy SKILLS CAPABILITIES AS-A-SERVICE Commitment to incorporate As-a-Service Ideals into the Business: Focus of enre execuve/business team.

INFRASTRUCTURE AS-A-SERVICE ROLES: AS-A-SERVICE IDEALS: Underlying technologies and services that support core operaonal communicaons and data: CIO, CISO, CTRO CEO: Execuve Design Thinking CMO: Markeng ENABLING TECHNOLOGY CTRO: Trust/Risk Service & technology enablers providing data and bridging Intelligent Automaon CIO: Informaon the Enterprise – Consumer gap: CIO, CTO, CXO, CRO CISO: Informaon Security Intelligent Data OMNICHANNEL CTO: Technology/Product Proacve Intelligence Services and Applicaons that facilitate the personalized CXO: Customer Experience experience: CMO, CXO, CTRO CCO: Client/Consumer CHRO: HR/Talent CONSUMER ENGAGEMENT Elements that shape the digital experience across all plaorms, technologies, channels: CMO, CXO, CCO, CTRO

© 2015 HfS Research Ltd. Proprietary │Page 18 IoT Services Value Chain IoT Services are those that design, create, and manage a pathway for the physical world to enter the As-a-Service Economy by creang a bridge between hard goods (& services) and digital infrastructure.

IoT CONSULTING IoT ENABLEMENT IoT CONNECTIVITY IoT INTEGRATION IoT MANAGEMENT

Key to Services Maturity on the Service Provider Proﬁle Pages

Relies on Partners Maturity is based off the full set of weighng criteria Less Mature Services for IoT Services, and the five boxes are the five areas More Mature Services of the value chain

CONSULTING ENABLEMENT CONNECTIVITY INTEGRATION MANAGEMENT

Strategic Planning Product Network Database Design Device and Business Case Engineering Engineering and Build Management Development

Governance Sensor Network Cloud Analycs Implementaon Strategy Development Implementaon Hosng

IoT Technology Soware Network System Network Roadmap (Reference Engineering Security Integraon Management Architecture)

Custom App Embedded Applicaon Data Development Technology Modernizaon Security

Device Security

Mature Compeve market with examples of service oﬀerings and customer case studies from large number of service providers Nascent Market in development with more limited examples of service oﬀerings and customer case studies

Key to Services CONSULTING ENABLEMENT CONNECTIVITY INTEGRATION MANAGEMENT Maturity on the Accenture Service Provider Proﬁle Pages Atos Relies on Partners Cognizant Dell Less Mature Services EPAM More Mature Services Genpact Harman IBM IGATE Infosys Luxo NiiT NTT Data TCS Tech Mahindra Tieto Unisys Virtusa

INDUSTRY VERTICALS EXAMPLES

Aerospace Connected Aerospace, Connected Repair Soluons

Automove & Transportaon Connected Car, Insurance Telemacs, Fleet Management, Connected Ship, Interacve Geospaal Soluon, Connected EV Staons, Predicve Analycs to Reduce Maintenance & Warranty Cost, Manufacturing Connected Asset Management, Connected Workers, Remote Diagnosc & Predicve Maintenance for Industrial Machines, Stolen Asset Retrieval, Transparent Supply Chain, Connected Shopﬂoor Buildings Connected Home, Smart Energy, Connected Building

Agriculture Precision Farming, Farm to Fork

Consumer Electronics Smart Wearables, Subscripon Enablement Plaorm, Authencaon Applicaons For Wearables

Urban Infrastructure Smart Parking, Smart Light, Smart Bin, Smart Waste, Digital Underground Mapping, Infrastructure Monitoring, Bridge Monitoring Healthcare & Life Sciences Connected Healthcare, Health Facility Way Finding, Virtual Care Plaorm, Paent Engagement Plaorm, Connected Paent, Emergency Management Oil & Gas Digital Oil Field, Smart Drilling, Smart Oil Transportaon

Ulies Smart Grid, Smart Metering, Connected Power Plant, Connected Solar Farm, Connected Wind Farm

Mining & Resources Connected Mines

BFSI Cryptocurrency, Block Chain Asset Management, Beacons for Commerce

© 2015 HfS Research Ltd. Proprietary │Page 22 Service Provider Grid Winner’s Circle and High Performers Methodology To disnguish providers that have gone above and beyond within a parcular line of delivery, HfS awards these providers a “Winner’s Circle” or “High Performer” designaon. The below provides a brief descripon of the general characteriscs of each designaon:

• From an execuon perspecve, providers have developed strong WINNER'S CIRCLE: relaonships with clients, execute services beyond the scope of hing Organizaons that green lights, and are highly ﬂexible when meeng clients’ needs. demonstrate excellence in • From an innovaon perspecve, providers have a strong vision, concrete both execuon and plans to invest in future capabilies, a healthy cross-secon of vercal innovaon. capabilies, and have illustrated a strong ability to leverage external drivers to increase value for clients.

HIGH PERFORMERS: • From an execuon perspecve, providers execute some of the following Organizaons that areas with excellence, but not all areas: high performers have developed demonstrate strong worthwhile relaonships with clients, execute services and hit all of capabilies in both the green lights, and are very ﬂexible when meeng clients’ needs. execuon and innovaon • From an innovaon perspecve, providers typically execute some of the but are lacking in an following areas with excellence, but not all areas: have a vision and innovave vision or demonstrated plans to invest in future capabilies, have experience execuon against their delivering services over mulple vercal capabilies, and have illustrated a vision. good ability to leverage external drivers to increase value for clients.

Winner’s Circle

IBM Harman Tech M High Performers Accenture OneSource Virtual Cognizant TCS Atos NTT DATA Infosys KPMG Genpact Tieto EPAM Luxo Virtusa NIIT Dell Unisys Services IGATE INNOVATION

EXECUTION

EXECUTION INNOVATION

• Atos, Harman and Tech Mahindra all cited for their • IBM, Genpact, NIIT, Luxo, Unisys, and Accenture seen proprietary delivery models. Many enterprise buyers cite as strong in industry and / or process experse. The their IoT iniaves as being strategic for the success of the technical aspects of IoT are oen the easiest part. firm and many are under significant pressure to progress Understanding how core processes can be improved and their implementaons quickly. Service providers that are aligned with IoT iniaves is where some of the biggest already invesng in IoT delivery models, ahead of gains will occur and these providers all performed well in engagements, are rapidly gaining the advantage over this regard. those which are relying on clients clients to fund their • IBM, Harman, and Tech Mahindra aggressive in acquiring investments. the capabilies they need. IoT brings a need for new • Atos, TCS, Accenture, NTT DATA, and Tech Mahindra technical capabilies beyond tradional IT markets. already offer As-a-Service pricing for IoT. IoT enables an Sensors and the emerging communicaon protocols that enterprise to experiment with new as-a-Service business are being deployed to link them together as well as new models by shiing the tradional one me product sale to data plaorms require tradional IT service providers to that of an ongoing subscripon built around a promised gather new capabilies and skills. These three providers outcome / series of outcomes. To support this, ambious are aggressively doing so by acquiring the talent they service providers must make bold adjustments to their need. exisng revenue models, making some short tem revenue • Cognizant, Genpact, IGATE, EPAM, and NIIT reach the sacrifices for the longer term gain in the process. highest levels of cooperaon. While most service • Cognizant, Tieto, TCS, Infosys, and Dell Services providers received good marks for working alongside their demonstrate a strong willingness to co-invest with clients clients, these five were highlighted as true partners in to develop new soluons. Geng results in the uncertain working alongside customers as they solved a parcular realm of IoT requires enterprises to take considerable need. risks. These providers were cited for their strength in undertaking the journey as well.

Relies on Partners

Less Mature Services

More Mature Services Accenture Winner’s Circle A breadth of robust plaorm-based oﬀerings, IoT expert bench strength and As-a-Service pricing models make Accenture a leading IoT partner

Blueprint Leading Highlights Strengths Challenges

• Flexible Pricing Models • Porolio of Proprietary Use Cases. Accenture has leveraged its deep • IoT Enablement Potenally Hampered By Complex Partnering. • Strength of Vision for IoT enterprise and industrial experse to build one of the most thorough Accenture does not have the same history of providing engineering • Creaon of Proprietary reference architectures and corresponding plaorms allowing clients to services at the device level to support IoT enablement as many of the Frameworks quickly embrace experimentaon. other Winner’s Circle service providers. For many clients, this is not an issue, but in industries where clients do not have these capabilies • Industry Experse • Commied Partnership Model. Accenture has made the choice to commit a series of anchor partners in IoT recognizing the strength of going to market internally, choosing Accenture for IoT soluons may lead ulmately to with leaders in related areas of technology, with more partners to come. building more complex partnering models to develop the end soluon. • Connected Plaorms As-a-Service (CPaaS) Offering. Accenture has IoT Services Offering Maturity: developed a robust plaorm that quickly enables Service Orchestraon, • As-a-Service Posioning. Accenture is acvely building its IoT Advanced Analycs, Data Streaming, Storage, Security, Device Management offerings around an As-a-Service model. These are sll early days for IoT Consulng for IoT operaons. CPaaS can be customized to use different technology these models and Accenture is working to create market momentum from, for example, Microso and/or Intel to meet client needs. and the plaorms behind this effort in IoT. IoT Enablement • Array of Pricing Models. Offers a full range of pricing from standard custom IoT Connecvity soluon to off the shelf pricing based on relevant industry units (i.e. per connected device, per end-user, per connecon to our plaorm, per IoT Integraon transacon, per volume of data processed, etc.). This approach enables a low up front cost and facilitates beer cost control. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs: ~1,100 Accenture’s IoT pracce is organized into 5 Relevant Recent Acquisions • Connected Vehicle, Insurance Telemacs, Fleet business towers whose focus is to producze • Evopro (2014) Management, Connected Ship etc. Org Structure: “As-a-Service” vercals based on specific use • Symbian (2011) • Connected Home offerings for Ulies and Accenture’s IoT pracce is run by Craig McNeil cases. The five towers are: Connected Technology companies, Digital Underground within the Accenture Mobility Pracce which is Transport; Connected Spaces; Connected Relevant Strategic Investments Mapping, Smart Buildings soluons etc. part of the Accenture Digital Growth Plaorm. Operaons; Connected Health; Connected • VenueNext (2015) • Connected Asset Management, Connected Commerce. • Criercism (2014) Workers, Precision Farming, Connected Mines, Apigee (2013) IIOT Security, Smart Wearables, Digital OEM etc. Delivery Centers: Target Industries: • • 30% Onshore (US, Europe, and Asia) Accenture targets the G2000 across: • IoT Virtual Health strategies, Health Facility Way- • 70% Offshore (India 55%; Philippines 10%; Transport and Industrial Equipment, Health, Partnerships: Finding, IoT Virtual Care Plaorm, IoT Populaon Eastern Europe: 5%) Public Service, Consumer Goods, Retail, • Intel Health Management, Health Asset Management Banking, Insurance, Capital Markets, Media & • Microso • Cryptocurrency & Processing Strategy, Block Apigee Chain Asset Management, Tokenizaon, Entertainment, Electronics & High Tech, • Communicaons, Ulies and Energy • Amazon Web Services Paydiant Ecosystem Enablement, Beacons for • GE Commerce etc. • Cisco

Blueprint Leading Highlights Strengths Challenges

• Flexible Pricing Models • Siemens Alliance. Siemens owns 15% stake of Atos and the two companies • Delivery In New Areas. While clients cited Atos’s strength in meeng • Proprietary Delivery Models collaborate closely on a variety of IoT projects. In July 2015, the firms the demands of developing new capabilies it was also said this can • Acquision and Investment announced an increase in its joint collaboraon bringing €150M investment, lead to underesmang the inial resources that will be required to Strategy with much of this going towards R&D around IoT. That coupled with a joint go get the job done on me. However, clients also pointed out that Atos to market iniaves means it brings a very strong proposion when Siemen’s was able to correct this by allocang more FTEs from what is a rapidly • Strength of Vision for IoT products come into play. growing pracce. • True End To End Provider. Atos provides a full range of services from device • Nearshore Delivery. Atos is very reliant on nearshore based engineering and sensor development all the way through to operang an IoT resources for IoT which is a challenge for some clients given the IoT Services Offering Maturity: as a service for a client firm, with reference clients for each. Addionally, Atos uncertainty and complexity surrounding most IoT projects which is pursuing a vercal IoT strategy developing soluons in 10 clear markets. oen cause clients to want to feel surrounded by on-site teams. To IoT Consulng • Effecve IoT Plaorm To Accelerate Project Iniaves. . Having made Atos’s credit, it seems thought that when this has been an issue so significant up front investments in a building an IoT plaorm that is easily far, Atos was willing to relocate resources onsite to get past the key IoT Enablement configurable, Atos can get a project up and running quickly and at lower cost issues. than if it needed to be assembled from scratch. • European Centric. Atos has yet to demonstrate the benefits of its IoT Connecvity • IoT Security. Atos approaches the risks of IoT head on and by doing so makes Xerox acquision and partnership in its expansion into the US. IoT Integraon sure it is a consistent thread across all aspects of the IoT Services Value Chain. Coupled with its ability to deliver across all phases means it can ensure a lock ght environment without the challenges that arise during a hand off. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs: ~1,000 (plus an Atos goes to market with two dedicated IoT Relevant Recent Acquisions Worldline’s soluons range includes: addional 3,500 from analycs.) Pracces sharing the same IoT plaorm. One • Blue Elephant Systems: (2015) • Connected Living Enabler: a dedicated IoT plaorm delivers bespoke services around consulng and • WL Connected Vehicle: Fleet Mgmt, In-Vehicle Org Structure: System Integraon and the other provides white Partnerships: Infotainment, Usage Base Insurance, Vehicle Atos is divided into two separate label IoT capacity as a BPO offering via Worldline. • Telecommunicaons: Orange, Transatel Relaonship Mgmt business units – an IT Services division It also goes to market with Siemens. • Navigaon and Located Based Service : • WL Connected Home: Home Appliances Monitoring and a Payment and e-Services division HERE Target Industries: & Control and Remote Diagnoscs, Inter-Objects known as Worldline. It has IoT • Electronic Consumer Devices: SAMSUNG scenarios for Smart Home & Smart Energy offerings within each. Atos acvely targets companies of all sizes with its • Smart Energy Services: EEBUS Alliance • WL Connected Infrastructure: Stolen Assets bespoke offerings and B2B2B or B2B2C operaons • Hardware: Aca, Connental Automove retrieval, Monitoring & Control, Remote Delivery Centers: with its Worldline offerings. • Applied Research: Siemens Diagnoscs & Predicve Maintenance for Industrial • Aerospace, Transportaon, Manufacturing • 28% Onshore (US) Machines, Vending Machines, City Infrastructure (Automove Industry, Machine Builders & • 42% Nearshore (Morocco 5%; systems, etc. Czech Republic 7%; Austria 30%) Home Appliance Manufacturers), Manufacturer • AppShop, e-Payment services, Subscripons’ products retailers, Public Sector, Insurance • 30% Offshore (India) offerings.

Blueprint Leading Highlights Strengths Challenges

• Account Management • IoT Vision Backed By Execuon. Cognizant brings the rare combinaon of thought • Not Strong At Pushing Its Innovaon Agenda. While • Standard Delivery Methods leadership with excellence in execuon. The IoT pracce is part of its Digital Works clients cited Cognizant as a strong innovator at mes, • Partnership Ecosystem Technology iniave – the CEO sponsored hub for the firms digital strategy and focus for some clients reported that requests had to be made for investment. The firm has undertaken 40+ successful IoT client engagements. innovaon to be brought to the deal. • Collaboraon Techniques • Strength of Vision for IoT • Smart IoT Pracce Structure Fosters Rapid IoT Development. Operang IoT as a hub • Field Support Necessitates Further Partnerships / amid spokes of other emerging technology pracces such as Social & Mobile, Security, Investments. While Cognizant performs strongly, overall, Cloud, Analycs, and Engineering and Manufacturing Services, draws experse from each in support and management, the distributed nature of pracce area, without needing to replicate work. This allows it to tap the best, most many IoT engagements means the firm is facing a support IoT Services Offering Maturity: appropriate resources rather than work with capve talent, regardless of fit. For IoT, with environment that resembles more end-user client or opportunies across many industries, this is the ideal go to market approach. mobile support, than enterprise IT management. IoT Consulng • Willingness To Co-invest With Clients. With the emerging and uncertain nature of IoT, Cognizant needs to demonstrate this gap is plugged most enterprise buyers are looking for an IT services provider which can either through the right partnership(s). IoT Enablement demonstrate experience from a similar iniave or is willing to invest me and money • Scale Of Onshore Consulng. IoT is not an off the shelf developing soluons. Clients regularly cite Cognizant’s willingness to co-invest. soluon, so requires significant consulng resources to IoT Connecvity • Strong Account Management. Regularly shows a commitment to listening to client sell and deliver effecvely. The tradional consulng firms are able to draw on a larger bench than the likes of IoT Integraon problems, suggesng workable soluons, and a willingness to bring in the right partners to get the job done. This is consistent across many of Cognizant’s soluon areas. Cognizant. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs: ~300 (plus an addional Cognizant’s IoT pracce operates in a hub and Relevant Recent Acquisions • APEx: Asset management as-a-service 300 sourced as needed from other pracces.) spoke model connecng other emerging • Odecee (2014) • Foresight: Connects devices and transmits, technology pracces as part of its Digital • Cadient Group (2014) aggregates, visualizes and analyzes data to Org Structure: Works Technology group a mul-disciplinary • TriZeo Corp (2014) accelerate the deployment of IoT projects. Cognizant’s IoT pracce is run by Adithya team comprised of strategic consultants, • HealthAcvate: Targeted at life sciences Sastry as part of the Emerging Business industry experts, design thinkers, and Partnerships: companies and healthcare providers, for Accelerator program run by Sean Middleton technologists that work together to transform • Plaorm Vendors: Xively, PTC/Axeda, cloud-based paent engagement Interacve who reports directly to Cognizant’s CEO an enterprise using our structured, yet agile, Microso & Azure IoT, Zebra Technologies, Exposure Map: geospaal soluon targeted Francisco D’Souza. methodology. The IoT pracces was oﬃcially AWS, Cisco, Intel, and GE Predix to insurers formed in 2013. • Innovave Soluons: iControls, Vuzix, • MedVantage: Cloud-based sales, service, Google Glass, WIFARER and complaint management system Delivery Centers: Target Industries: 20% Onshore (US, UK, Netherlands) Applied Research: Carnegie Mellon S3P: Subscripon Enablement Plaorm. • Targets enterprises with $1B+ revenues • • • 80% Oﬀshore (India) University • Unprotect Failure predicon services • Core: Manufacturing & Logiscs, Banking, Insurance, Retail, Healthcare, Life Science • Addional: Travel, Hospitality

Blueprint Leading Highlights Strengths Challenges

• Proprietary Delivery Models • True End-to-End Provider. From sensor design to ongoing management, Harman brings • Problem Of Plenty. Because Harman can develop an • Acquision and Investment robust capabilies up and down the enre IoT stack and has an established track record innovave new soluon for an enterprise does not always Strategy in each. In parcular, product development and life cycle management. Assists not only mean it should. There are mes when it invests me and • Partnership Ecosystem in the inial consulng and implementaon, but also on an ongoing basis as IoT matures. energy solving problems that enterprises do not • Strength of Vision for IoT • Capable Go-To-Market Partner. In addion to partnering in the creaon of IoT offerings, necessarily have or at least are not the top priority to • Industry Experse Harman brings the capability for joint go-to-market iniaves as either white label solve. offerings as the services integrator and direct sales channel. This is an important • IoT Silos. Given the breadth of capabilies across Harman complement of skills for those enterprises entering the services market for the first me in the realm of IoT and because many of these have been IoT Services Offering Maturity: via IoT. underway for years, there is not one singular IoT pracce, • OTA Capabilies. Delivering Over the Air (OTA) updates is a crical capability for as there is in most other service providers. This means IoT Consulng supporng IoT environments, and Harman has made a number of recent acquisions in Harman is missing a central point for establishing broad this space . As such, enterprises can be assured their iniaves will have the capability to and deep partnerships with other IoT stakeholders within IoT Enablement stay current without costly intervenon in the field. the service provider. • IOT Management Needs Development. This is an evolving IoT Connecvity • Porolio Of Accelerators And IP. Harman not only brings experience, but has a breadth of proprietary technologies and plaorms for tesng and specific vercal and common capability for Harman compared to other Winner’s Circle soluons. service providers which have been in the provision of IT IoT Integraon services for much longer. • Analycs Capabilies. Harman brings very strong data analycs capabilies to every IoT IoT Management engagement not only gathering data, but also providing aconable insights.

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~3,000 Harman sells its IoT Services a part of discrete Relevant Recent Acquisions • ATLAS: Analycal framework for Connected pracce areas within its Connected Services • Symphony Teleca (2014) Car lifecycle Org Structure: division. • Adi Soware (2014) • Health SymMetrics: Cloud-based IoT Harman's IoT offerings are not organized Red Bend (2015) Target Industries: • integrated insights plaorm for paent care within a stand alone unit but instead are within Harman targets companies of all sizes across management a broad range of pracce areas found within its industries and has major clients including: Partnerships: • Insight Connect (OTA, on-board/cloud based Connected Services division (what used to Major Healthcare ISVs, Smart Meter ISV, • Silicon: Intel, Marvell, Freescale intelligence) comprise the recently acquired Symphony Storage Giant, Tier 1 Chipset Manufacturer, • Service Plaorms: Gemalto, Microso • Redbend – Over the Air Soware Update Teleca). Tier 1 Telecom operator, Tier 1 Property Azure, Google, PLAT.ONE Management for device management Consulng Company in US, Tier 1 Retailers, Tier • Connecvity Modules: Telit • Harman IoT Gateway for Data Ingeson Delivery Centers: 1 Manufacturers, Commercial Real Estate • Wearables: Qualcomm and MTK • Harman IoT Test Harness 25% Onshore (US 13%; Germany 6%; and Automove: AT&T (Drive Studio) • leader. • • Marimba: Cloud-based plaorm for South Korea 6%) • Big Data: Hortonworks managing enterprise IoT (configuraon • 75% Offshore (India 45%; Russia 20%; China mgmt., patching, updates) 5%; Poland 5%)

Blueprint Leading Highlights Strengths Challenges

• Proprietary Delivery Models • Clear Commitment To IoT. IBM wants to be seen as a thought leader • Rigid Delivery Model. Some enterprise buyers stated IBM can be strict in • Acquision and Investment around IoT with its “Smarter X” campaign and by announcing a $3B adherence to formal SOWs and while some like this approach as it Strategy commitment to invest in the technology. IBM has been successful in the eliminates surprises others felt it held back innovaon in areas like IoT past in establishing itself as thought leader through a combinaon of that evolve in needs and definion over me. • Strength of Vision for IoT R&D, acquision and client investment. We note similar moves in both • Industry Experse • Business Benefit Communicaon. IBM can suffer from business benefits mobility and cloud. We expect the same to occur with IoT with this level geng lost in the technology, parcularly when it goes to market with a of aenon. concept like IoT. The messaging around its IoT offerings has not caught up • Porolio Of Tools and Plaorms. IBM’s already gone deep in building out with the technology, which can impact a clients ability to engage and be IoT Services Offering Maturity: soluons for IoT and has a broad set of offerings across its core industries certain to receive the desired outcome. that can quickly solve an IoT challenge. IoT Consulng • True End To End Managed Service Provider. Whatever IBM builds, it will also run and maintain, has the capacity to perform all funcons to a high IoT Enablement standard and scale to allow it to use any flexible pricing model, when needed. IoT Connecvity • Vercal Presence. IBM developed a broad porolio of industry based use IoT Integraon cases and IoT soluons that are relevant to most major client industries. This breadth is one of the differenators it brings versus High Performers and other service providers. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs: 1,500 IBM’s IoT Services are organized under its Business Relevant Recent Acquisions • Predicve Asset Opmizaon (PAO) Analycs and Strategy Service line via its Digital • Solayer • Energy Opmizaon Org Structure: Operaon pracce. IBM also formed the IBM IoT • Cloudant • Maximo and Tririga implementaon IBM’s IoT pracce is run by Al Opher independent business unit in March 2015 responsible • Worklight • Emergency Management as part of the larger Business Analycs for providing the plaorm and ecosystem components • Q1Labs • Fleet and Asset Management and Strategy group within IBM GBS. (Analycs, Cloud, Watson, and Security) across IBM. • TRIRIGA • Connected Home Connected Vehicle Target Industries: • Delivery Centers: IBM GBS acvely targets, but is not limited to, global Partnerships: • Connected Building • 25% Onshore (North America 15%; enterprises with 1,000 + employees or $1B + revenue • Twier (for social insight around devices • Connected Paent Europe 10%) and services) • Connected Factory • Core industries include: Discrete Manufacturing, • 75% Oﬀshore (AP 40% CEMEA 25%; Public Sector, Transportaon, Healthcare, Retail, and • Texas Instruments • Supply Chain Analycs LA 10%) AT&T Transparent Supply Chain Energy & Ulies • • • ARM • Semtech • The Weather Company • ESRI (GIS technology)

Blueprint Leading Highlights Strengths Challenges

• Standard Delivery Models • Engineering Services. Infosys has elevated its engineering services organizaon to act • Business Models. Enterprise buyers indicated to HfS that • Proprietary Delivery Models as a spearhead for not only IoT but iniaves in Design Thinking, Digital, and a Infosys needs to be quicker to embrace and adopt innovave • Partnership Ecosystem general As-a-Service push. While this group was always quite capable, its elevaon to business arrangements for IoT where tradional models are a more visible role will serve it well in deriving enterprise soluons for IoT. not as suitable or flexible enough for the fast evolving nature • Industry Experse • Vision Into Reality. When given clear mandate, enterprise buyers highlight that of this market. Infosys delivers exactly as expected. This means IoT projects will stay on focus and be • Excellence In Execuon Can Hinder Innovaon. Given the executed on me. Given all the variaon and possibilies that IoT opens up, such strength Infosys brings to delivering what is asked, clients feel ability to focus is crical today at mes it can be a challenge to get them to think different IoT Services Offering Maturity: • Seamless Team Integraon. The Infosys team is seen as integrang incredibly well and make decisions on its own. However, when pushed for into a company’s culture and are not consider to be “outside” resources as these this, Infosys will bring it as well. IoT Consulng teams act and make decisions as if the team members were internal associates. IoT Enablement • Invesng Heavily In Repeatable IP. Infosys is invesng in IIC and Industry 4.0 with a focus on Asset Efficiency and an understanding of the complexity involved. Not just a IoT Connecvity sensor and data but a complex system approach and the investment in reference soluons to quickly spin this up. Demonstrated understanding of the cricality of IoT Integraon security in IoT with strong capabilies within and across the IoT stack.

IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~1,500 Infosys has a dedicated sales team for its IoT Relevant Recent Acquisions and Investments • Infosys Informaon Plaorm - Big Data Lake pracce and organizes its offerings around • Panaya (2014) and Data Analycs Plaorm Org Structure: targeng Asset Efficiency; Security, Safety & • Airviz (2015) • Infosys Locaon Based services Infosys’ IoT Pracce is part of the Infosys Quality of Life; and “Smart” – large ecosystem • Infosys Billing Edge Plaorm Engineering Services, a Horizontal Business impacts. Partnerships: • Infosys Enterprise Gamificaon Plaorm- Unit. Intelligent Devices: Murata, Intel, Bosch, Infosys Proximity Soluons Applicaon Target Industries: • • Infosys acvely targets, but is not limited to, PTC-ThingWorx, PTC-Axeda, ILS, AMD Plaorm Delivery Centers: G2K clients globally. • Connecvity: Sierra Wireless, Murata, Telit, • Infosys Cooler Monitoring Plaorm • 30% Onshore (North America, UK, Germany, Digi, AT&T, Vodafone • Infosys Asset Maintenance Soluon • Core: Discrete Manufacturing, Automove, France, APAC) Aerospace, Retail, Healthcare, Logiscs, • M2M Plaorm: ThingWorx, Axeda, Bosch, • Infosys IoT Mediaon Layer • 70% Offshore (India) Communicaon Providers Microso, ILS, Cumulocity, IBM • Infosys Contact Center Soluon for IoT • Applied Research: University of Aachen, Operaons • Target: Farming, Process Manufacturing, Germany (RWTH) and Industrial Internet Infosys Serviceability Workflow Plaorm Public Sector • Consorum (IIC) • Blackberry Technology Soluons for Asset Tracking and Logiscs

Blueprint Leading Highlights Strengths Challenges

• Standard Delivery Models • Co-Investment. Clients cite TCS ability to go the extra mile in providing upfront analysis and • Pushing Back. Clients were sasfied that TCS IoT • Flexible Pricing Models POC’s as a real draw to partnering with them in IoT. teams captured their requirements and delivered to • Collaboraon Techniques • Co-Creaon. Establishing a Digital Re-imaginaon ™ Center along the lines of MIT’s Media specificaon but felt that a greater role as “devil’s advocates” should be taken by TCS to challenge what • Strength of Vision for IoT Lab, TCS is looking to establish quarter-long collaboraon with clients and prospects in a dedicated IoT environment that will go well beyond the quick hit PoCs. No other service might be mistaken assumpons and requirements on provider is yet going to this length to demonstrate co-creaon. TCS also has a Silicon Valley the part of clients to begin with. Customer Collaboraon Center (SVCCC) for onsite advisory, consulng and engagements • IoT Skills Silos. Enterprise buyers complained that it with clients. could be difficult to get access to larger related IoT IoT Services Offering Maturity: • Industry And Technology Skill Mix. IoT perhaps more than any other emerging technology skills from other parts of the service provider to area requires a mix of both industry insight and very deep technical skills. TCS brings both in supplement the teams that were available from the IoT Consulng a way that few if any other service providers can. IoT pracce itself. IoT Enablement • IoT Enablement. TCS capabilies in engineering and other aspects of IoT Enablement are significant and are compevely differenang versus many of the other leading service IoT Connecvity providers. • Broad Capabilies. TCS is the largest of the Indian offshore outsourcing firms and enjoys the IoT Integraon broadest delivery capabilies. This adds business process and infrastructure capabilies across the broadest set of customers both industry and geography. This gives it a beer IoT Management starng point for expanding its IoT offers than the other India based service providers.

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~N/A IoT is viewed as a “composite force” of Digital Reimaginaon Relevant Recent Acquisions • TCS IoT Sensor Data Analycs Framework: ™ by TCS that is a combinaon of Big Data & Analycs , • TCS has invested in a Joint Venture in For deep analycs with predeﬁned Org Structure: Mobility, Social, AI& Robocs Services and is part of the TCS Japan with Mitsubishi IT group – partly models The IoT pracce has been established Digital Enterprise pracce. IoT can be divided into two to provide localized IoT services in • TCS GoSafeTM : TCS Insurance Telemacs under the Digital Enterprise organizaon. disnct segments i.e. Consumer IoT and Industrial IoT. TCS Japan. Soluon-a smartphone based telemacs The Digital Enterprise organizaon is goes-to-market through the Silicon Valley Contribuon soluon for drivers with insurance headed by a Global VP & Business Unit Center (SVCCC), the Industries, their partners and a Digital Partnerships: • TCS dreamUP™: A data visualizaon Head , who reports directly in to the CEO Reimaginaon ™ Tower in India, Silicon Valley and events. • Plaorm Vendors: Intel and Cloudera, plaorm with charng components for PTC, Bosch, IBM Predix, Splunk, IBM rendering analycal insights. Target Industries: Delivery Centers: TCS targets global enterprises with revenue Bluemix, Microso Azure, • N/A over $5B • Applied Research: Industrial Internet Consorum, Allseen Alliance, Open • Manufacturing , Retail, Ulies , High Tech, Energy & Interconnect Consorum Resources, Travel & Hospitality, Life Sciences, Healthcare, Insurance and Telecom Industries.

Blueprint Leading Highlights Strengths Challenges

• Acquision and Investment • Technical Depth. Enterprise buyers frequently report being pleasantly • Design Thinking Not Well Developed. While clients cited Tech Strategy surprised by the technical depth Tech Mahindra brings to engagements. As Mahindra’s strengths across many aspect of IoT, it was cited for • Partnership Ecosystem well as robust and thorough understanding of the current points of being sll nascent in applying design thinking in its approach to connecvity and process. complex business needs. However, this is a challenge that can be • Strength of Vision for IoT addressed through investment in capabilies and in cultural change • Collaboraon Techniques • Eco-system Approach to Partnering. Tech Mahindra is building an ecosystem of partners across the different IoT areas. Helping to augment its internal skills management. and pull together an end to end offer from best of breed partners. • IoT Markeng. By comparison to many of the other Winners Circle • Acquision Ambions. With big stated ambions for growth and Digital, it is service providers, HfS has not seen Tech Mahindra as visible in the IoT Services Offering Maturity: likely Tech Mahindra will be in the market to acquire complimentary firms. direct markeng of IoT capabilies. With so many opportunies in Doing so will allow it to augment its exisng strength in the most the exisng client base this is not a significant challenge but we IoT Consulng advantageous of ways. believe that Tech Mahindra may not be geng a “fair share” of tendered opportunies as a result. IoT Enablement • Investment In PoCs. Repeatedly cited willing to put it’s own skin in the game and develop robust PoCs and plaorms. Buyers indicated this goes well • Relaonships In US/Europe Are Very Limited. Many of the IoT projects so far have been outside of key US/Europe markets. Giving IoT Connecvity beyond “slideware” to actual funconing architectures that can be quickly deployed. rise to quesons about resources it is able to muster for potenally consulng heavy onshore engagements IoT Integraon • Leverage Engagements In Asia. TM has successfully completed almost 40 IoT projects in Asia – giving it experience in designing and implemenng a broad IoT Management range of projects.

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~450 Tech Mahindra uses a mix of alliance and Relevant Recent Acquisions • 30+ vercalized IoT oﬀerings. E.g., Remote partner teams, delivery and pre-sales teams, • Aermarket Telemacs Suite (2014) Paent Monitoring, Aircra health Org Structure: and geography based sales teams to sell IoT • Acquired Device Tesng Lab (2014) monitoring, Driver/passenger health Tech Mahindra’s IoT pracce is integrated at services monitoring, Track & Trace for Power Tools, its Digital Enterprise Soluons group while the Remote Monitoring for Renewable Energy Target Industries: Partnerships: Industrial IOT through the Product Engineering SMBs to large enterprises with annual • Aeris, Jasper, Verizon, TeliaSonera, T- Assets, Fleet Management for Mulple group. revenues of greater than $5 Billion since we Mobile, AT&T, ThingWorx, Axeda, Industries & Vehicles, Telemacs soluon have soluons for all kind of enterprises ConnectM, Google, here, AnyData, Bosch, for EV, Farm to Fork, Smart Parking, Smart Delivery Centers: including SOHO's Sierra Wireless, CalAmp, Radius, OpenNet, Lights, Smart Bin, Usage Based Insurance, • 35% Onshore (US 20%; UK 15%) neeeco, Realme Innovaons (RTI),Rasilant iDEP, etc. • Healthcare, Automove, Telco, • 65% Oﬀshore (India) Manufacturing (Discrete and Process), Technologies, Hadoop, Digi,Gaurd • Mulple soluons across the following umbrellas: Connected Vehicles, Connected Aerospace (OEMs, MROs), Energy Factories, Connected Equipment, Connected (Renewable, O&G), Consumer Goods, Care, Connected Aerospace, Smart City Transport Travel and Logiscs, BFSI, Retail Soluons Suite

Blueprint Leading Highlights Strengths Challenges

• Account Management • Robust IoT Product Line. Dell has an IoT OEM group within Client Soluons • Services Brand. One of Dell’s strengths, the reach of its brand, can • Acquision and Investment building core gateways. Dell’s OEM team provides the go-to-market (Sales) also be a detriment as the firm’s capabilies in Services are much Strategy effort for the gateways. Similarly, its strong data management soware less well known than those in hardware which is also the case with (Boomi and Toad) also fuel the pipeline. These various product lines feeds IoT. • Strength Of Vision In IoT opportunies for Services that go beyond the typical implementaon and • IoT Messaging. Because Dell’s approach to IoT is so broad – integraon role for a Global SI. spanning hardware, soware, and a full range of services, there is a • Breadth Of Service Capability. IoT creates challenges around remote support risk that the enterprise services acvity will be confused with acvity that not many enterprise services organizaons have significant experience in say, OEM. Dell Services will need to work harder to get its IoT Services Offering Maturity: handling. Dell, with its product services, has very strong capabilies here and is message across. looking to leverage this across IoT – even if delivered from separate pracces • Design Thinking Limitaons. HfS has not yet seen the same level of IoT Consulng today. investment in Design Thinking and its applicaon to client business • Focused Partnership Model. Dell has secured a partnership with PTC as a problems at Dell that we have seen emerging amongst a number of IoT Enablement parcipant in ThingWorx Global Systems Integrator Alliance program. This will the compeng service providers. allow it deep insight into one of the leading IoT plaorms today and includes IoT Connecvity • Scale Sll Small. Currently IoT is sll nascent for Dell, with less than the ability to explore approaches within its dedicated Soluon Lab in San Jose. 20 clients, primarily in the US and the UK. IoT Integraon • Investment In Advisory Services. For example, as part of inial engagement Dell use a model to gauge clients current IoT maturity. Using this as a basis for roadmap discussions with clients starng on IoT journey. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs: pure IoT 15, inc broader IoT Services is part of the Digital Pracce Relevant Acquisions • Smart Connected Applicaons resources esmate c200. within Applicaon Services at Dell. In addion, • Boomi (2010) • Smart Connected Operaons Dell has an IoT OEM business as part of its • Toad (2012) • Smart Connected Products Org Structure: hardware division. • Smart Connected IoT Enterprise Dell’s IoT pracce is run by Chethan Gorur who IoT Advisory and Transformaon Services Target Industries: Partnerships: • reports to the head of Digital Business Services Dell Services acvely targets, but is not limited • PTC / ThingWorx • IoT Applicaon Integraon Services run by Raman Sapra. to large enterprises globally • IoT Applicaon Development Services • Enable Smart Connected Products • Core - Healthcare (Payers / Providers / Life Delivery Centers: Science), BFSI (Banking / Financial Services / • Enable Smart Connected Operaons • 40% Onshore (US 30%; UK 10%) Insurance), Manufacturing, Energy & • 60% Oﬀshore (India) Ulies, Hospitality • Target - Banking, Financial Services, Logiscs, Transportaon, Hospitality, Educaon, Hospitality

© 2015 HfS Research Ltd. Proprietary │Page 36 EPAM Strong Engineering and Applicaon Development capabilies High Performer complement an integrated IoT Enablement oﬀering and should lead to a dedicated pracce with unique capabilies

Blueprint Leading Highlights Strengths Challenges

• Standard Delivery Models • Enviable Client List. EPAM has enviable tech clients include technology companies • Time Zone Challenges. While not as challenging as working • Acquision and Investment such as Google, Oracle, and eBay. with Asian based development staff, the me zone differences Strategy for those in North America can sll impact effecveness. • Response To Complexity. Clients site its ability to innovate around complex • Collaboraon Techniques However, this may be elevated as EPAM opens a center in challenges while staying grounded in business strategy as a key differenator for Mexico. • Strength of Vision for IoT EPAM over other IT services firms • IoT Delivery Silos. Despite strengths in embedded devices and • Highly Skilled Workforce. EPAM puts a majority of senior folks on each project soware development, there is no single unit directed at teams and they all speak English well. Clients report finding them very predictable serving clients across the IoT value chain. While this capability IoT Services Offering Maturity: and reliable and that EPAM is able to readily delegate projects and clients trust these can be stched together, doing so requires learning on the fly will be done well and on me. IoT Consulng that is not required when all orchestrated under one pracce. • Break New Ground. With an embedded device pracce and its strength in soware • IoT Consulng And Management. EPAM should connue to IoT Enablement engineering EPAM becomes a good choice for technically challenging custom invest in capabilies for IOT business consulng and soluon engagements in untried IoT areas. development and in the support infrastructure management IoT Connecvity • IoT Enablement. With an embedded device pracce, EPAM brings robust capabilies as it grows its presence in the IoT market in device design and enablement and when coupled with its strength in soware IoT Integraon • Scale. Engagements to date with less than 10 that are engineering it becomes a go to choice for those breaking new and perhaps strategic exclusively IoT, but at least several dozen where IoT is a ground with its IoT iniaves. component of an overall soluon. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs: ~200 EPAM considers IoT as an integrated and Relevant Recent Acquisions • EPAM IoT Plaorm - This system monitors holisc set of services oﬀerings that dove-tails • NavigaonArts (2015) itself, dynamically adapt to changing Org Structure: into its general service lines that are driving • Great Fridays (2014) condions and sll allow external control EPAM does not have a stand alone IoT pracce Advanced Engineering, Intelligent Enterprise • Netso (2014) and keep users informed on what's going but brings capabilies to market primarily and Digital Engagement. • GGA Soware (2014) on. through its Product Development Service line Empathy Lab (2012) Target Industries: • which sit along side its Technology Soluons and Product Engineering Services lines. EPAM targets Hi-tech companies and large Partnerships: enterprises with revenues $1B and more • Plaorm Vendors: Oracle, SAP, IBM, Delivery Centers: • Core: IT, Financial Services, Energy, Microso • 9% Onshore (US 5%; Germany 2%, Sweden Healthcare & Life Sciences, Retail, Sport & • Innovave Soluons: TI, Freescale, ARM and 2%) Lifestyle, Travel, Media & Entertainment Analog Devices • 91% Oﬀshore (Belarus 75%; Ukraine 11%; • Addional: Manufacturing, Telecom Singapore 3%)

Blueprint Leading Highlights Strengths Challenges

• Incorporaon of Feedback • Process First Approach. Genpact focuses first on understanding core processes • Narrow Focus. While Genpact’s focus on Asset Opmizaon • Collaboraon Techniques and what data should be captured and analyzed to improve performance. This primarily for companies ‘that make things’ means it brings parcular • Strength of Vision For IoT results in a focus on impact rather than one of technology deployment strength in that narrower area, it also means its services are not for Clear Focus On Asset Opmizaon. Genpact is not distracted by a myriad of all. Yet as the adopon of IoT grows to one fueling revenue • Industry Experse • what’s possible with IoT but instead focuses on clear demonstrated use cases enhancement – especially as products get repacked as services – today where the returns are measurable such as field service operaons for Genpact may need to look to build this out to keep core clients enterprises with large assets. While this focus may evolve, by keeping it happy. narrow today it can develop deeper experse at areas of greatest impact. • IOT Enablement and Connecvity. Genpact is sll building out IoT Services Offering Maturity: • Robust Engagement Analycs. Genpact’s IoT offerings are craed and capabilies in IoT Enablement and Connecvity in comparison to delivered from within its Analycs group which means it never stops at mere other service providers which have had a longer tenure in the IoT Consulng data creaon. Further it focuses not just on data to insight but insight to delivery of engineering and IT services that underlie these acon. Creang sensors on data is the easy part of IoT. Understanding what it capabilies. IoT Enablement means and how best to react is where the greatest value is to be found. • Scale of Onshore Consulng. IoT is not off the shelf soluon so • IoT Plaorm. Genpact has developed its own IoT plaorm - Intelligent Process requires significant consulng resource to sell and deliver effecvely. IoT Connecvity Insights Engine (IPIE). IPIE includes Data Discovery, Text Analycs, Sensor Data The tradional consulng firms are able to draw on a larger bench. Processing, and Advanced Analycs modules that can be deployed via a cloud. • Pracce Scale. Compared with some of the other providers Genpact IoT Integraon Genpact also leverages partner ecosystem plaorms i.e. GE Predix, IBM, has a relavely small number of IoT engagements to date with less Decysion, and Mitsubishi. than 20. Although the involvement with large scale iniaves with firms like GE makes up for this somewhat. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~1,450 Genpact focuses its IoT eﬀorts today on Relevant Recent Acquisions • Intelligent Process Insights Engine (IPIE). Industrial Asset Opmizaon. All relevant sales • N/A Modular in its architecture IPIE provides an Org Structure: personnel are trained in this but it also pairs a Enterprise Data Hub with modules that Genpact’s IoT acvity is delivered as part of its subject maer expert along with a relevant Partnerships: include Data Discovery, Text Analycs, analycs and under Genpact’s Digital Lean engineering SME focus on how best to • Plaorm Vendors: GE Predix, IBM, Cisco, Sensor Data Processing, and Advanced branding. This is how Analycs, Engineering, combine process, technology, data science, Senent Science, Decisyon, ILST, AXEDA Analycs. Consulng and IT will deliver end to end and people. (PTC), ConnectM (In process) • Analycs Center of Excellence soluons in IoT. Applied Research: Industrial Internet Target Industries: • Genpact acvely targets enterprises with Consorum, UI Labs Delivery Centers: revenue over $10B • 30% Onsite (US) • Industrial Machine Services, Customer 10% Nearshore (Italy) • Insight, Hi Tech Manufacturing, and CPG • 60% Oﬀshore (India)

Blueprint Leading Highlights Strengths Challenges

• Proprietary Delivery Models • Dedicated IoT Center Of Excellence. Outside of Japan, NTT DATA has • Global Fragmentaon. NTT DATA demonstrated examples of effecve • Flexible Pricing Models centralized its IoT acvity around a center of excellence it calls Center of delivery across mulple regions but work remains in this regard. While • Strength of IoT Vision Excellence Smart located in Madrid. This center serves to unify its IoT Global One iniaves are smoothing legacy differences the service acvies globally across regionally segmented operaons. provider remains far from a global operang model and this can risk • Partnership Ecosystem • Willingness To Ulize Consumpon Based Pricing. Once NTT Data have isolang pockets of experse. completed inial build out phase typically for a fixed fee, NTT DATA has • Global Branding. While within Japan the NTT DATA brand is extremely transferred the ongoing revenue model for the operaon of several IoT strong, the brand has somewhat weaker mindshare outside. This projects to a pay per use billing determined by number of devices challenge is highlighted by its use of acquired brand names in some IoT Services Offering Maturity: deployed. regions rather than a single unified name. • Partnership For End To End Delivery. NTT DATA has built out a robust • Nascent Business. This is a new business for NTT DATA with less than IoT Consulng partner network to ensure it can meet every need around IoT as the prime 20 engagements to date. integrator. From partnerships with established global partners, to IoT Enablement innovave R&D joint ventures, to many small emerging market players, NTT DATA has a wide and deep ecosystem which ensures clients will have IoT Connecvity access to the breadth of skills required for success. IoT Integraon • Client Partners. NTT DATA is partnering with a number of global branded companies around IoT to develop IoT products and services in conjuncon with them. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~1,290 NTT DATA has a Smart Center of Excellence in Relevant Recent Acquisions • eMDM: Smart metering Madrid dedicated to providing services around • everis (2014) • Fleet.i: Fleet intelligence. Org Structure: IoT (e.g. hardware integraon, device tesng, • Liquitrax: Smart transportaon Upstream Oil NTT DATA’s IoT services are part of its tailored projects. Other Digital areas have Partnerships: • allWaste: Smart Waste general IT service organizaon. related global one iniaves and a Center of • NEC, Telefónica, SIGFOX, Itron, NEDAP, • allParking: Smart parking. Excellence that spans across the regional owasys, Telit, and several IoT start-ups • allLight: Smart Lighng Delivery Centers: divisions. These are responsible for best • alliances with IoT hardware manufacturers • allEyes: Cizen as a sensor. • IoT delivery mainly on-site currently. pracce sharing and orchestraon for cross that provide sensors/devices • net4Things: connected home services NTT DATA has global delivery capability regional business from a global perspecve, and • Alliance with Intel for promong • BRIMOS: bridge monitoring system oﬀshore and near shore. These include: work closely with IoT related services business standardizaon and soluon development • ANYSENSE: rapid deployment of IoT soluons Chile (Temuco), Spain (Alicante, Murcia, unit depending on the client demand. • Collaboraon with NTT group companies: • Authencaon applicaon for google glass Seville), Argenna (Tucumán) and Brazil such as NTT Communicaons, Dimension BEACON NAVI: Target Industries: • (Uberlandia), plus North America and Data, etc. • 3D printer monitoring soluon APAC including India NTT DATA targets large enterprises for IoT in: • GaiaLinX: Electronic Vehicle power staons Public Sector, Manufacturing, Ulies • RemoteOne: Energy management soluon

© 2015 HfS Research Ltd. Proprietary │Page 39 Tieto High Performer IoT is core to strategic growth of Tieto and capability investments are being made to realize the increased importance of this oﬀering

Blueprint Leading Highlights Strengths Challenges

• Standard Delivery Models • IoT Focus. IoT was tapped as one of three primary growth opportunies for the • Geographic Coverage. While its footprint is expanding, • Investment Strategy service provider in the Spring of 2014 and as such is an area of focus and invest unfortunately the company primarily serves the Nordic region and • Collaboraon Techniques with the highest visibility all the way up to the CEO yet set up as a fairly to a lesser degree the rest of Europe. That is a shame for those independent enty to aract the highest level of talent and allow the company located outside as it connues to be a top notch provider across to invest. the realm of Digital. • Plaorm Investments. While it is not making bets in any one area, Tieto is • Cost Pressures. With the aenon of Offshore Outsourcers now exploring mulple plaorms for expeding the deployment of IoT. The end goal having turned toward Europe, Tieto and others are facing cost is to idenfy those plaorms most likely to succeed and to bring skills around pressure in development that is requiring them to look for ways IoT Services Offering Maturity: them so projects can be quickly deployed. This pragmac approach will likely to shi resources as well. While this will ulmately benefit save enterprise buyers not only me and money but false starts as well. enterprise buyers, it may prove a short term distracon. IoT Consulng • Co-Investment. Alongside Tieto’s internal investments in IoT, clients cite its • IOT Enablement. Tieto may need to further build out capabilies ability to co-invest in its own iniaves as a strength. With uncertainty in IoT Enablement as this market develop and clients look for end IoT Enablement surrounding IoT, Tieto eases some of this by lessening the burden on the to end services to move beyond proofs of concept into full adopng firm. One of the best examples of this is a 10 year agreement the deployment. IoT Connecvity company signed to contribute its own IP as part of a project to build and enable a residenal apartment complex that will serve as a living IoT lab. IoT Integraon • Innovaon Approach. While Tieto brings the technical skills, enterprises highlighted its and readiness to bring innovaon as a parcular strength. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~100 Tieto parcipate in relavely few formal Relevant Recent Acquisions • Smart housing & facility management IoT wrien requests and tend to discuss and • N/A plaorm Org structure: engage its customers in a dialogue instead. • Real Time Factory -plaorm for the Industrial Internet unit headed by Taneli Tikka, This consultave approach can help them Partnerships: manufacturing industry, reporng to the board chaired by Tieto CEO. stand apart from the oen product-centric • Teradata, Oracle, Microso, Google, Cisco • M2M in a box IoT device plaorm for smart Team based lean organizaon. oﬀerings of some competors. Systems, HP, IBM, Cumulocity, BaseN, devices on the go TeliaSonera, MaintPartner, Livion, FougaIT, Advanced Analycs plaorm for IoT Target Industries: • Delivery Centers: Tieto targets medium to large companies Asema, Data Rangers, Houston Analycs, associated data science and big data • 90% Onshore (Finland 50%; Sweden 40%) primarily within the Nordics Roima Intelligence, Control Express Finland, • Tieto Vital: predicve situaonal awareness • 10% Nearshore (Czech Republic 10%) Scandinavian Radio Technology, Solteq, & ﬂeet management plaorm • Manufacturing, Forest Industry, Energy, Welfare, Logiscs, Retail, Telecom, Media, Trelab, Oliotalo, Quuppa, Kalo • eSense plaorm for welfare & healthcare Technologies. services and Agriculture

Blueprint Leading Highlights Strengths Challenges

• Incorporaon of Customer • IoT Security. With its Unisys Stealth technology that is able to cloak any • Vercal Coverage. Unisys focused approach to IoT means many Feedback communicaons between devices, Unisys can ensure IoT environments enterprises will not find them operang within its space. • Proprietary Delivery Models remain secure. This makes them a strong choice for those engagements • Small Data. While many IoT challenges are well in the realm of Big Data, were security is absolutely crical. • Industry Experse many others are not and these means Unisys may miss some • Frameworks for Needs Analysis • Big Data & Analycs Focus. Unisys has a proprietary reference opportunies unl it further builds out capabilies here alongside Big architecture built for big data called BDA as a Service and extended this Data. offering into the IoT environment. This makes it a strong choice for areas • Limited Industry Depth. Even within the industries it focuses, Unisys with massive volumes such as medical or retail – two areas of focus. brings less depth in business understanding than some of its peers. This IoT Services Offering Maturity: • Remote Support Capabilies. IoT is oen an offsite challenge and most may shi its IoT focus to a queson of technological enablement and service providers are less equipped to engage with supporng field away from process transformaon. IoT Consulng operaons in the same way it support a core enterprise. Unisys is an • Lack of IoT Pracce. IoT is delivered as part of mulple service lines. This excepon with strong capabilies in field management. IoT Enablement lack of a disnct focus, may leave it underinvested. • Strength Government Provider. Given Unisys legacy strength in US IoT Connecvity Federal government and its capabilies around security, big data and support, it is extremely well suited for brining IoT to large scale complex IoT Integraon areas such as governments may require – for iniaves like smart states or smart infrastructure. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~35 with others borrowed Unisys does not separate IoT into a separate Relevant Recent Acquisions • Unisys Stealth from other pracces. pracce but instead delivers as part of mulple • N/A • BDA as a Service. Unisys has a robust Big service lines. Data & Analycs plaorm that it has extended to IoT environments with Org Structure: Target Industries: Partnerships: Unisys does not disclose its organizaonal Unisys targets enterprises in the $1 – 3 billion • Azure, AWS, Airwatch, and Pureshare, and connecons to a wide range of device structure. revenue range. Mobile Iron communicaon protocols.

• Pharmaceucals, Federal, Public Sector, and Delivery Centers: Retail • 10% Onsite • 20% Onshore • 70% Oﬀshore (India)

Blueprint Leading Highlights Strengths Challenges

• Strength of Vision For IoT • Strong Partnership Ecosystem. Virtusa has created strong set of • Limited Industry Experse. While Virtusa brings solid technical • Partnership Ecosystem partnerships to augment its own IoT capabilies as it acknowledges the capabilies, it is more limited in the depth of industry experse. This • Creaon of Proprietary complexity of IoT and how the market can best be served. So while it may means it makes for a good partner in building IoT soluons but may Frameworks not bring the depth of skills across every element of IoT, it can tap these require extra input on the exploraon and design side. We saw promising for a client and likely get even greater capabilies than if it aempted to sides of Virtusa building out industry IoT soluons in healthcare, do it all on its own. insurance and telecom that should be further enhanced into 2016. • Delivery. Rather than recreang an IoT specific delivery organizaon, • IOT Enablement. Virtusa may need to further build out capabilies in IoT Virtusa leverages the breadth and depth of capabilies it has across the Enablement as this market develop and clients look for end to end IoT Services Offering Maturity: organizaon. This allows it to flex up and down more quickly depending services to move beyond proofs of concept into full deployment. on the specifics of each engagement while not creang a conflict of IoT Consulng needing to move certain skills off its bench. • Rapid IOT Prototyping with Skylab. While IoT is sll a nascent IoT Enablement opportunity for Virtusa it has put together a strong partner network, reference architectures and virtual lab environment that provides rapid IoT Connecvity prototyping of IoT and AI use cases. IoT Integraon

IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~1,540 (This includes Virtusa has setup a dedicated IoT pracce Relevant Recent Acquisions • Skylab which consists of various layers: consultants from the Digital and called “SMART” within its digital business unit. • Apparatus (2015) - An IoT Foundaon (leveraging Virtusa's Infrastructure.) The goal of the SMART team is to help its • Agora (2015) GTO, BPM, Digital & Infra pracces) industry teams engage with clients to educate, - Machine Data Analycs (leveraging Org Structure: envision and develop IoT based soluons. The Partnerships: Virtusa's EIM pracce) Virtusa's IoT strategy and evangelizing is led by SMART team is developing IoT soluons and/or • IBM (BlueMix; Watson; Solayer) - Arﬁcial Intelligence (leveraging Kark Iyengar. The execuon and delivery points of view across all of its key vercals such • Intel Virtusa's GTO & EIM pracce) capability for IoT is within Virtusa's Digital as Telecom, Healthcare Manufacturing, Retail, • ThingWorx - Augmented/Virtual Reality (leveraging Pracce which is headed by Frank Palermo. Media, Financial Services and Insurance. • Exosite Virtusa's CEM & Mobility pracce) Libelium Target Industries: • Delivery Centers: Virtusa targets the G2000 but parcularly in • Glassbeam/Flutura/Splunk • 10% onsite • Conversica • Healthcare, Telecommunicaons, Insurance, 10% nearshore Jasper • Manufacturing, Transportaon • • 80% oﬀshore (India / Sri Lanka)

Delivering client focused IoT soluons linked to key client business needs

Blueprint Leading Highlights Strengths Challenges

• Incorporaon of Customer • Willing To invest Time And Money in PoCs. IGATE has parcipated in the • Focus. While clients cited IGATE as a strong in ambion and interest Feedback early stages of some very interesng trials with clients as it views IoT as around IoT it was also cited them as willing to tackle areas that were • Partnership Ecosystem an area of investment today. So while it may not have a long list of perhaps not in its core area of experse and this le them learning along reference accounts where it can demonstrate compleon, it brings an the way. understanding of the issues and challenges within embracing IoT today. • Capgemini Integraon. While lile is being communicated externally • Incubang IoT As Cross Company Iniave. By forming its IoT pracce regarding Capgemini’s integraon of IGATE, it is fair to expect at least within Research & Innovaon rather than a parcular go-to-market some level of disrupon as two large IT service providers merge. business unit, IGATE is able to scale fast and explore the most appropriate • Vercal Industry Experse. While IGATE operates across a broad range of IoT Services Offering Maturity: resource mix along the way without being locked into challenges of industries, it does not bring the depth of business understanding to these managing a bench that might be weighted toward one parcular skill set. that some other service providers bring. This means there conversaons IoT Consulng • Demonstrang Itself As A Strategic Partner. While much of the IoT work and engagement around IoT may be more of a technical nature. IGATE performs for clients today is more along the lines of staff However, this might change as the Capgemini acquision progresses. IoT Enablement augmentaon than project lead, much of the work is of the most strategic nature for the client. This is giving them valuable exposure to how IoT is IoT Connecvity being ulized to transform businesses today. IoT Integraon • Willingness To Invest In Proprietary Plaorms. IGATE is developing a number of horizontal and industry specific IoT plaorms, produczing IoT services. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~45 IGATE’S IoT pracce co-ordinates service Relevant Recent Acquisions • ICAT: Intelligent Context Aware Things delivery through resources pooled from • N/A framework Org Structure: exisng business units across engineering, • ICAN: Intelligent Context-aware Navigaon IoT Pracce is being incubated by Research & tesng, Digital, BI, Analycs, etc. Sales support Partnerships: (using BLE Beacons, Wi-Fi Access Points, Innovaon group. This is one of several is provided by three diﬀerent sales groups: • Plaorm Vendors: PTC- Axeda & ThingWorx Indoo.rs soware) horizontal business units. IGATE also operates Vercal-centric Sales, Product & Engineering Soware AG (Apama), and Microso SQL • IAUTOPULSE: Predicve Analycs Soluon vercal business units, a Product & Engineering Sales and Digital Pracce Sales. • Innovave Soluons: indoo.rs for auto industry to reduce warranty costs, Services group, and a Digital & Cloud pracce Applied Research: UCLA, Georgetown improve upme, and avoid catastrophic Target Industries: • that also support IoT. University, ESADE failures. Targets enterprises with $1B+ revenues • IGATE Wellness Plaorm Delivery Centers: • Retail, Manufacturing, Media and • 20% Onshore (US 18%, UK 2%) Entertainment, Mining, Energy & Ulity, • 80% Oﬀshore (India) Banking, Insurance, Automove Electronics, Consumer Electronics, Industrial Automaon, Medical Electronics

Blueprint Leading Highlights Strengths Challenges

• Partnership Ecosystem • Experienced Technology Talent. Luxo brings a very high percentage of • Project Independence. Some enterprise buyers felt that Luxo allowed • Strength of IoT Vision advanced degrees to the majority of its engagements. Its delivery centers daily project staff to have too much discreon when it came to • Industry Experse are filled with senior developers with five or more years of experience not maintaining the core relaonship and delivery responsibility. freshers that are learning on every job. This makes them a leading choice • Not An Order Taker. Luxo brings skilled and experience staff to every when a complex soluon, such as telemacs, is being tackled. project and this means the staff may have seen a similar challenge before • Deep (Focused) Industry Understanding. While Luxo targets a narrower and have preconceived noons as how it might best be approached. If an set of industries with IoT than other service providers, it serves those enterprise buyer is looking for a service provider to carry out what is ones quite well based on client feedback and can bring a strong asked without giving it much thought, Luxo might not be the right IoT Services Offering Maturity: understanding of underlying business and technology challenges in choice. industries such as automove, aerospace or agriculture. IoT Consulng • Low Delivery Turnover. Luxo faces much lower rates of arion than many other IT services firms and this means consistent staff on projects IoT Enablement from year to year. It also means Luxo grows alongside clients and evolves with them as projects change and mature from merely digizing IoT Connecvity processes to analyzing them and creang new ones. IoT Integraon

IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~N/A IoT is a horizontal pracce supported by CoEs Relevant Recent Acquisions • Retail Engagement Suite on mobile, big data, agile, security, and others • Radius Group (2014) • IoT Big Data Simulator Org Structure: which is led by MD, Anders Brown. • Horizon (visualizaon plaorm) Michael Minkevich , VP for Technology Target Industries: Partnerships: Services reports to the CEO, Dmitry Loschinin. • Microso Azure, Cloudera, Mashery, Intel, Michael is responsible for Energy, Technology, Luxo targets the Global 2000 Amazon Web Services, HortonWorks, and Telecommunicaons vercals and the IoT • automove, aerospace, Informaca, Jasper, Google, Splunk, Esri, and Big Data pracce as it relates to the Radius telecommunicaons, oil and gas, hi- and ATT. acquision. Anders Brown, former President of technology, precision agriculture/ Radius Group is MD for IoT based in Seale. manufacturing, and retail.

Delivery Centers: • Onshore (US) • Oﬀshore (Ukraine; Germany; Poland; Bulgaria; Romania, Russia and Vietnam)

Blueprint Leading Highlights Strengths Challenges

• How Service Providers Incorporate • Focus In Travel & Insurance. While most service providers readily target a • UI / UX Design. Enterprise buyers report NIIT Tech design Customer Feedback broad range of industries, NIIT technologies is very focused on IoT soluons capabilies tend to be rather template and not strong on the • Collaboraon Techniques mainly in the travel and insurance industries today. creave side but also report seeing improvements being made. • Industry Experse • IoT-Specific Labs. Seeing the need to experiment and invest in IoT, NIIT Tech • Industry Coverage. While clients within Travel, Insurance and set up labs in Bangalore and Delhi. Seeking to develop PoC’s for exisng and Manufacturing will be pleased with NIIT Tech’s IoT capabilies, potenal clients rather than wait for enquires to emerge. NIIT Tech also clients outside these areas my need need to look elsewhere for a provides IoT-led innovaon as a service to its clients under incubaon strong partner today with the excepon of Financial Services but offerings. that is an area not seeing much IoT iniaves at this me. IoT Services Offering Maturity: • Pragmac Approach. NIIT Tech looks for soluons that can be readily • Execuon Over Innovaon. While NIIT Tech brings great strength in implemented rather than ones that are the most sophiscated in design. e.g. execuon and a willingness to work extremely hard, it does not IoT Consulng When tasked with expeding the idenficaon and classificaon of hazardous always approach problems with creavity and that puts more cargo for an airport terminal, it developed image processing algorithms that innovaon on the client’s shoulders at mes. IoT Enablement could funcon of standard sckers issued globally rather than relying on a new • Scale. Currently IoT is sll nascent for NIIT Tech with less than 10 tagging system that would take a massive effort to adopt. IoT Connecvity engagements so far. • Learning Culture. Rather than assuming It has all been seen before, NIIT Tech IoT Integraon approaches every project with open ears and an open mind to try and solve a client’s unique problems in the best way each me while maintaining a flexible approach to solving challenges that arise. IoT Management

Business Overview Go To Market Relevant Acquisions / Partnerships Proprietary Technologies / Plaorms

Self-declared FTEs ~110 NIIT Tech does not yet have a separate IoT Relevant Recent Acquisions • Technology Incubaon Services pracce area but instead delivers these • Incessant Technologies (2014) • IoT Tesng Org Structure: services as part of its Digital Experience • IoT Analycs NIIT Tech’s IoT eﬀorts fall within its Digital pracce which includes Analycs, Cloud and Partnerships: Services Porolio under a Global Head who Digital Integraon. • 2 small startups (proprietary tech) reports to the COO. ESRI (GeoEvent Extension) Target Industries: • NIIT targets enterprises in the $1B - $5B range. Delivery Centers: • Ground transportaon, airlines, insurance, • 10% Onshore (US) manufacturing (APAC), cargo ground • 90% Oﬀshore (India) handling /logiscs

We see the following as the major trends that will foster the future evoluon of IoT Services over the next 2-3 years:

n More and more Service Providers will connue to push into the market as a handful of innovave use cases create a spike in aenon to IoT n The market will remain poorly deﬁned as some Service Providers rebadge Analycs, Mobile, or Cloud pracces as IoT Services while others create standalone pracces – some of which are narrow and some of which are broad.

n Systems Thinking becomes a hotbed of aenon as the complexity that IoT unleashes will increasingly necessitate a methodological process driven soluon. n Industry insight and experse will give way to those offering insight based on themes of acvity (Home, Auto, Building, City, etc.) n Learning to partner well becomes a necessary skill. Leadership will be defined by those service providers that can effecvely coordinate this layer of external complexity.

n Creang data lakes and stching together APIs will connue be the bulk of integraon work while analycs and process experse become the areas of compeve value add.

AS-A-SERVICE NON ALL IDEAL INITIAL EXPANSIVE EXTENSIVE IDEAL DEFINITION EXISTENT PERVASIVE

Design Generang creave soluons by Thinking understanding the business context 2015 2017

Business “Plug and Play” business services Cloud 2015 2017

Intelligent Blending of automaon, analycs Automaon and talent 2015 2017

Proacve Operaons focused on interpreng 2015 Intelligence data, seeding new ideas 2017

Intelligent Real-me applied analycs models, Data techniques, and insights from big 2015 2017 data Write Oﬀ Use of plaorm-based services Legacy makes many tech investments 2015 2017 redundant Brokers of Governance staﬀ manage towards Capability business-driven outcomes 2015 2017

Intelligent Pricing and relaonships based on Engagement experse, outcomes and 2015 2017 subscripons

“Systems Thinking is the art and science of making reliable inferences about behavior by developing an increasingly deep understanding of underlying structure.” – Barry Richmond

A formal applicaon of Systems Thinking drives one to an understanding of a parcular set of outcomes that goes well beyond observing an event and understanding its underlying trends. Systems Thinking helps one grasp and measure the relevant inputs that drive an outcome and in turn allows one to aempt to improve a future outcome by controlling the crical sources of influence while not inadvertently making it worse by ignoring or adversely affecng unforeseen influences. In the realm of IoT, it is one of the best approaches HfS knows of for bringing meaning to the primordial chaos that the process of digizing everything creates.

n Demand Co-Innovaon and Experimentaon. As nearly every Services Provider builds out its own porolio of IoT engagements, enterprise buyers are in a strong posion to demand that service providers put some energy and investment into building out skills. If a provider is unwilling to do so, it is likely not commied to the space and instead of being the partner you require to navigate the emergence of IoT. n Be Sure to Keep Security and Risk Front and Center. Security needs to be one of the top consideraons at every step of the way. The primary reason is that as projects splinter there is an increased risk of the creaon of access points that are innocuous to one set of concerns but catastrophic to another. Enterprises are advised to task someone with examining every and all implicaons of IoT across the enre firm. n Stay Calm, Most IoT Acvity Remains as a PoC. Despite the increased aenon and hype around IoT today, the bulk of acvity for most enterprises remains in the realm of a PoC. The potenal for strategic impact might be idenfied but with only a few excepons most are tesng the waters as to how it will likely unfold. Further, with the technology component oen the easiest piece, those enterprises that will need to play catch up can likely do so a fast pace. There is no need to panic today when it comes to IoT. n Pick Your Iniaves With Care. As it remains early days in IoT, enterprise buyers are advised to approach the market with cauon even if being aggressive appears to be possible at lile cost. Adding sensors and gathering data is oen the easiest aspect of IoT. Even creang data repositories that can capture this new insight is straighorward and can be leveraged across the firm. The real challenges for IoT will come with process change and this needs broader acceptance and a level of energy that might not arise if dozens of different experiments are underway. Less is more when it comes to adopng IoT.

n What Operang Approach Should be Ulized to Serve IoT? Service providers are deploying a broad range of operang models to develop offerings in IoT. Some are taking the approach of incubaon and leveraging skill sets found in exisng pracce areas. Others have idenfied IoT as strategic and are invesng in creang dedicated pracces. There is no single soluon that wins out today so service providers need to recognize the strengths and weaknesses of each and be flexible in responding to what is required. n Should IoT Services Focus Exclusively on Asset Opmizaon or Go Beyond? Today’s opportunies in IoT are clearly found in the realm of asset opmizaon and especially as the cost of those individual underlying assets rise. But broader applicaons of IoT hold the promise of not just running a business beer but running it differently and likely in disrupve ways. Service providers need to balance market demand today with the noon that tomorrow’s demand may be in a much different realm. n How Fast and Aggressive to Invest in IoT? Not only is the direcon of IoT uncertain but the pace of enterprise adopon around IoT has yet to generate enough sample points for clarity to have emerged. This puts connued pressure on service providers to keep a close eye on the market and make sure the pace of investments are aligned. n Will Product Engineering and Sensor Development Emerge as a Key Offering? While some service providers are gaining significant aenon around IoT capabilies by highlighng non-tradional areas of IT services such as device engineering and sensor deployment or design, it is not clear whether these capabilies will be crical to service the market in the coming years. Tradional SIs have always relied on specialized partners to meet certain new needs and it is likely many will successfully do the same with regard to IoT. n What is the Best Plaorm Approach? In a similar vein, it is unclear whether IT service providers will benefit from having an IoT plaorm to deploy. Conversely, such an offering might even become a detriment as it seen to create a conflict and to diminish any aempts at offering best of breed soluons. Yet in the near term, having a plaorm might allow one to move quickly from PoCs into broader deployments.

n Don’t Expect Leverage During Early Days. With all the aenon directed to As-a-Service provisioning, it would be expected for Service Providers to foresee themselves as plaorm providers in the realm of IoT. But like other pockets of enterprise IT demand where the underlying need is seen as strategic, few will be willing to sele for an ‘oﬀ-the-shelf’ soluon or allow a service provider to reuse signiﬁcant pieces of IP to serve a competor with a similar need. Right or wrong, the bulk of work in IoT will be bespoke and service providers are advised to go to market expecng this.

n Build Out Systems Thinking Skills. HfS made and connues to make a push around the need for Service Providers to bulk up on Design Thinking and we will connue to do so in the coming years. However, for those targeng IoT, a more systemac approach is required. “Systems Thinking” is a formal approach to determining, measuring and building into any model the impact from mulple variables in order to determine why things happen not merely what is happening.

n Learn to Partner Well. The complexity in which IoT not just enables but demands will require that tradional competors regularly cooperate. Connected homes, cars, cies, and energy all implies a mix of data providers and beneﬁciaries that will all have varying degrees of interest and needs. Service providers that can manage this complexity and bring a broad mix of parcipants not to the table but keep them engaged will posion themselves extremely well in the coming years.

n Look to Cross Internal Silos Well. IoT is not only an opportunity that requires heightened collaboraon outside a service providers walls but perhaps more important internally as well. Most every IoT engagement by a global SI will need to tap a range of skills such as big data and analycs, cloud, mobility, engineering, as well as strategy and process change, most Service Providers are not set up well to work across these disparate pracces but that will be required to excel in IoT.

Overview • Oversees the research agenda and the analyst team for HfS across the “As-a-Service Economy”. • Personally covers the areas of digital services, intelligent automaon and business plaorms as well as the supply chain and procurement business funcons. • Over a 25+ year career has focused on his personal skills in authoring thought leadership, developing implementable strategies, execung on acquisions, driving business development eﬀorts and managing long term investment planning. • Since joining HfS in 2013, Charles spoken widely at industry forums including NASSCOM, ABSL and SIG and has had his research covered widely in the business and outsourcing press. Previous Experience • Charles has been in the business services market for 20 years. Previous roles include: [email protected] - Growth & Strategy MD for Accenture’s mul-billion dollar Operaons Growth Plaorm - Chief Strategy Oﬃcer for a $500M BPO Service Provider - Growth & Strategy for Applicaon and Infrastructure Outsourcing, Accenture - Growth & Strategy for Communicaons, Media and High Tech OG, Accenture - Media & Entertainment Strategy Consultant, Accenture - Markeng Director, Olive Educaon • MBA from INSEAD in Fontainebleau, France • Honors BA in Economics and Polical Science from the University of Toronto

HfS Research is the leading analyst authority and global network for IT and business services, with a specific focus on global business services, digital transformaon, and outsourcing. HfS serves the research, governance, and services strategy needs of business operaons and IT leaders across finance, supply chain, human resources, markeng, and core industry funcons. The firm provides insighul and meaningful analyst coverage of best business pracces and innovaons that impact successful business outcomes, such as the digital transformaon of operaons, cloud-based business plaorms, services talent development strategies, process automaon and outsourcing, mobility, analycs, and social collaboraon. HfS applies its acclaimed Blueprint Methodology to evaluate the performance of service and technology in terms of innovang and execung against those business outcomes. HfS educates and facilitates discussions among the world's largest knowledge community of enterprise services professionals, currently comprising 150,000 subscribers and members. HfS Research facilitates the HfS Sourcing Execuve Council, the acclaimed elite group of sourcing praconers from leading organizaons that meets bi-annually to share the future direcon of the global services industry and to discuss the future enterprise operaons framework. HfS provides sourcing execuve council members with the HfS Governance Academy and Cerficaon Program to help its clients improve the governance of their global business services and vendor relaonships. In 2010 and 2011, HfS Research's Founder and CEO, Phil Fersht, was named “Analyst of the Year” by the Internaonal Instute of Analyst Relaons (IIAR), the premier body of analyst-facing professionals, and achieved the disncve award of being voted the research analyst industry's Most Innovave Analyst Firm in 2012. In 2013, HfS was named first in rising influence among leading analyst firms, according to the 2013 Analyst Value Survey, and second out of the 44 leading industry analyst firms in the 2013 Analyst Value Index. Now in its seventh year of publicaon, HfS Research’s acclaimed blog “Horses for Sources” is widely recognized as the most widely read and revered desnaon for unfeered collecve insight, research, and open debate about sourcing industry issues and developments. Horses for Sources today receives over a million web visits a year. To learn more about HfS Research, please email [email protected].