September 3, 2014 IoT primer The Internet of Things: Making sense of the next mega-trend Equity Research The third wave of the Internet may be the biggest one yet 28 billion reasons to care… Benchmarking the future: early adopters Simona Jankowski, CFA The Internet of Things (IoT) is emerging as the We see five key early verticals of adoption (415) 249-7437
[email protected] third wave in the development of the Internet. The (Wearables, Cars, Homes, Cities, and Industrials) Goldman, Sachs & Co. 1990s’ fixed Internet wave connected 1 billion as test cases for what the IoT can achieve. users while the 2000s’ mobile wave connected Focus on: new products and sources of revenue James Covello another 2 billion. The IoT has the potential to and new ways to achieve cost efficiencies that can (212) 902-1918
[email protected] connect 10X as many (28 billion) “things” to the drive sustainable competitive advantages. Goldman, Sachs & Co. Internet by 2020, ranging from bracelets to cars. Key to watch: privacy and security concerns - a likely source of friction on the path to adoption. Heather Bellini, CFA …and the train is leaving the station (212) 357-7710
[email protected] Focus: Enablers, Platforms, & Industrials Goldman, Sachs & Co. Breakthroughs in the cost of sensors, processing power and bandwidth to connect devices are The IoT building blocks will come from those that enabling ubiquitous connections right now. Early can web-enable devices, provide common Joe Ritchie simple products like fitness trackers and platforms on which they can communicate, and (212) 357-8914
[email protected] thermostats are already gaining traction.