M2M and IoT Overview
Opportunities and Challenges in the End of 2014
Aapo Markkanen
Principal Analyst
markkanen@abiresearch.com
@ABI_IoT
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.
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The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
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Internet of Things Demystified
Internet of
Things
M2M
•
Point-to-Point
•
“Multipoint”
•
Vertical
•
“Horizontal”
•
Closed
•
“Open”
•
Requires
commitment
•
“Allows
experimentation”
© 2014 ABI Research • www.abiresearch.com
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express written permission of Licensor.
Entrepreneur
Scaling Startup
IoT Deployment
Focused
M2M
Comfort Zone
Experimental
Commitment
Persistent
IoT Developer Segmentation
Maker
Hobbyist
Garage Level
Productizing Startup
Speculative Startup
Workshop Level
IoT Initiative
IoT R&D
Corporate Level
Resources
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.
IoT Developer Segmentation in Numbers
Internet of
Things
M2M
•
Point-to-Point
•
“Multipoint”
•
Vertical
•
“Horizontal”
•
• “Open”
• Closed
In 2014, IoT developers total 1.7 million, accounting
for 9% of global software
devs
•
Assuming a significant but still fairly gradual increase
in activity – “hardware
is hard!”
experimentation”
commitment
•
By end-2019, the developer base to reach 3 million, or 10.5% of all software developers
•
Look for the innovation on building blocks and tech stacks to lower the barriers to entry
•
Requires
•
“Allows
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.
IoT Value Chain – Where’s the Money?
Value
Chain
ValueAdded
Services
Hardware*
Connectivity**
3%
20%
Connected
Device
Platform
Device
Management
Device
Connectivity
Value-Added Services
77%
Device
Cloud
Application
Development
System
Integration
Analytics
Professional
Services
* Chipsets, Cellular Modules
** Cellular, Fixed, Satellite
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.
Connected World Is Expanding…
© 2014 ABI Research • www.abiresearch.com
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express written permission of Licensor.
…and Evolving, Too
CoAP
DDS
XMPP
Edge
Intelligence
“Intelligent Device Paradigm”
REST
MQTT
“Foggy” Intelligence
Cloud
Intelligence
“Connected Device Paradigm”
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.
Quest for the New Last Mile
SigFox: unlicensed cellular WAN
Thread Group: residential 15.4
Helium: metropolitan 15.4
Weightless SIG: whitespace WAN
Zuli: residential BLE mesh
Veniam: vehicular WiFi hotspots
Wi-Next: low-power WiFi
Ell-i: intelligent PoE
Spire: nanosatellites
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.
Fragmentation or Choice?
“What’s with all this fragmentation?! It is causing so much
confusion that the market will surely never take off.”
“All this choice is great! Now we can build a strong business
case and don’t have to settle just for one possible solution.”
© 2014 ABI Research • www.abiresearch.com
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express written permission of Licensor.
Internet of Things – Tip of the Iceberg
Citizen
Empowered
Cities
Equipment
Replacement
MicroMarkets
New Business
Models
Servitization
Disruptive
Spillovers
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.
Thank You!
Aapo Markkanen
Principal Analyst
markkanen@abiresearch.com
@ABI_IoT
© 2014 ABI Research • www.abiresearch.com
The material contained herein is for the individual use of the purchasing Licensee and may not be distributed to any other person or entity by such Licensee including, without limitation, to persons within the same corporate or other entity as such Licensee, without the
express written permission of Licensor.