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Thriving In The As-a-Service Economy Charles Sutherland Chief Research Officer [email protected] HfS Blueprint Report Internet of Things (IoT) Services September 2015

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Thriving In The As-a-Service Economy

Charles Sutherland Chief Research Officer [email protected]

HfS Blueprint Report

Internet of Things (IoT) Services

September 2015

©2015HfSResearchLtd. Proprietary│Page1

TOPIC PAGE

Execu?veSummary 2

ResearchMethodology 8

KeyMarketDynamics 15

ServiceProviderGrid 23

ServiceProviderProfiles 27

Market-WrapandRecommenda?ons 46

AbouttheAuthor 53

Table of Contents

Executive Summary

©2015HfSResearchLtd. Proprietary│Page3

Introduction to the HfS Blueprint Report: Internet of Things (IoT) Services

n  TheInternetofThings(IoT)ServicesHfSBlueprintReportisafirsttakeattheemergingvaluechainofservicesdevelopingfromserviceproviderswhichareaddressingthispoten?allyhugeandtransforma?vetechnologystack.Unlikeotherquadrantsandmatrices,theHfSBlueprintiden?fiesrelevantdifferen?alsbetweenserviceprovidersacrossanumberoffacetsundertwomaincategories:innova?onandexecu?on.

n  HfSisemphasizingtheemergingnatureofIoTwith55%ofthetotalBlueprintscoringlinkedtoinnova?onbasedevalua?oncriteria.

n  HfSBlueprintReportra?ngsaredependentonabroadrangeofstakeholderswithspecificweigh?ngsbasedon1,109stakeholderinterviewsfromthe2014StateofOutsourcingSurveythatcovered:

•  ProcurementOutsourcingEnterpriseServiceBuyers•  ProcurementOutsourcingServiceProviders•  ProcurementOutsourcingIndustryInfluencers(sourcingadvisorsandmanagement

consultants)•  HfSSourcingExecu?veCouncilMemberswithProcurementengagements•  HfSResearchAnalystswithhands-onProcurementknowledgeandexperience

©2015HfSResearchLtd. Proprietary│Page4

HfS Definition for the Internet of Things (IoT) Services

HfSDefinesIoTAs:1.  Theassocia?onofdatatoaphysicaldeviceand,2.  Thedeliveryofthisdatafromthatdevicetoacentralizedrepositoryforfurtherprocessing.

Note:Thedevicesdeliveringthedatamayormaynotcreatethedatathemselvesandmayormaynotprocesstheinforma7onpriortodelivery.i.e.Thesecanbeintelligentordumb–rangingfromanitemtaggedwithanRFIDchipthatiscodedwithauniqueiden7fiertoalargesophis7catedwindmillprocessingdataonsiteregardingitspowergenera7on.Further,thecommunica7onofthedatamaybedoneviaacombina7onofwiredand/orwirelessnetworks.Thesenetworkscanbeeitheropenorprivateandwhilethiscommunica7onisoFencarriedoutviaIPprotocol,itisnotarequirement.Asaresult,IoTincludesabroadsetofac7vi7essomeofwhichhavebeenongoingfordecadessuchascertainaspectsofindustrialcontrol.HfSdefinesIoTServicesasanyserviceproviderengagementdirectedatdevelopingassociatedstrategyforenterpriseembraceofIoTand/orassis?nganenterprisegatherdataassociatedwithaphysicalassetandcommunica?ngthatdatatoacentralizedplaeormforthepurposeofderivinginsightintohowitmayraiseopera?onalefficiencyorincreaserevenuethroughthecrea?onofnewproductsorservices.Thecri?calstar?ngpointformostIoTServicesengagementsisabusinessproblemorneed.

©2015HfSResearchLtd. Proprietary│Page5

Why This HfS Blueprint on IoT Services Today?

AdebatehasbeguntorageacrossthetechnologylandscapetodayregardingIoT.IsitorisitnotthenextbigthingforEnterpriseIT?

Semi-pessimistsviewIoTaslargelyanindustrialfocusedopportunitywherebigassetsarebehermone?zedandcontrolledviaintelligentdigitalinterfaces.ThesefolksseeIoTasnothingnewand-whileanimportanttrend-notonetogetoverlyexcitedabout.Op?mists,typicallythosewhomorerecentlyturnedtheirahen?ontoIoT,maintainabroadervisionthathonesinonwhatispossibleratherthanprobable.

Oienwiththesedebatesthefinallevelofac?vityrestssomewherebetweenthetwo.This?me,however,weseeoneofthoserareexcep?onswhenrealitymaylikelysurpasstheexpecta?onsofboth.Thereasonistwofold:

•  First,thedefini?onofIoTisexpanding.ThisisbecauseIoTisnotatechnologymarketbutagotomarketconceptthatincorporatesthedeploymentofcoreemergingtechnologiesalreadybeingac?velydeployedtoday.BigData,Analy?cs,Mobility,andCloudareallenablersofIoTandthisallows–evenrequires–ittobecomeaunifyingtheme.

•  Second,thescopeofwhatisprobableisontherise.Asthecostofcrea?ng,gatheringandanalyzingdatacon?nuestodrop,converselythebusinesscasesfordoingsocon?nuetoexpand.AsaresultIoTisbeginningtotoucheveryindustry,andwean?cipatethiswillacceleratein2016+.

©2015HfSResearchLtd. Proprietary│Page6

Key Highlights: The State of the IoT Services Market

n  ProofsofConcepts(PoCs)leadthemarket.TodaythediscussionisledbydisruptorsembracingIoT–fromconsumerapplica?onslikeUberandAirbnbtoindustrialusessuchasGE’srevampoftheairlineenginebusiness–butthecurrentmarketrealityhasfewenterprisesembracingIoTbeyondafewcoreareasthathasbeenopera?nginthisfashionforyears.(Thinkfactoryautoma?on.)Yetcomplacencyistobeavoided.HfShasseenaexplosioninPoCsduring2015andexpectmanyofthesetogointoproduc?onduring2016.

n  ThereisnothingclosetoaconsensusonIoTservices.ServiceprovidersareapproachingtheIoTopportunityfromeveryconceivableangle.NotonlyisitofanamorphousnaturebutIoTbridgesmul?plecompetenciescurrentlyhousedwithindifferentprac?celines.Needingtotapengineering,analy?cs,mobilityandcloud,individualserviceprovidersarebeingpragma?cwithapproachesandthismeanseachisdefiningitsothatitleadswiththemostrelevantcapabili?es.

n  SystemsThinkingmaybethenextbigskill.Theabilitytogenerateandgatherdataonabroadrangeofphysicalassetsandinterac?onswillonlyyieldvalueiftherightinsightandac?oncanbeunderstood.SystemsthinkingcombinesamixofartandsciencethatiswellsuitedtothischallengeandHfSexpectsanup?ckininterestasenterpriseslooktograsptheopportuni?esavailabletothemviaIoT.

n  IoTopportuniHesrequiringcompeHtorstocollaborate.GepngvaluefromIoTmeansharnessing“thenetworkeffect”wherethevalueofindividualinputstakesonmoremeaningasthenumberofinputsgrow,itisIoT.Plaeormsthatintegratedatafrommul?plesourceswillbetheonesthatyieldgreatestvalue.ManufacturersandserviceproviderswillneedtobeopenwithAPIsiftheofferingsaretobe?edintotheemergingnewweb.

©2015HfSResearchLtd. Proprietary│Page7

Key Highlights: The State of the IoT Services Market (Continued)

n  Learningtopartnerbecomingakeyskill.Fortradi?onalITserviceproviders,thecomplexitysurroundingIoTwilldriveeachtopartnerwithabroaderrangeofcompaniesandaseachdoesitwillheightenitsabilitytodosowellasakeydifferen?ator.ThereisnothingclosetoasetofIoTstandardstodayandlikelyneverwillbeforyearsasthebroadrangeofsensor,networkanddataprotocolsallmakesensewithintheuniquemarketsforwhichtheyhaveemerged.Therefore,s?tchingallthistogetherquicklywillbeakeyneedanditdoesnotmakesenseforanyonefirmtodevelopexper?seinitall.

n  Riskhasbecomeathirddimensionofgo/no-goalongsidevalueandcost.EnterprisebuyersareadvisedtolookatoverallriskasakeycriteriainthedecisionwhethertopursueastrategybasedonIoT.Ataminimum,theyneedtoensuresomeoneattheirfirmistakingaholis?cviewofriskandsecuritysoastopreventpiecemealpartsofIoTfromopeningupvulnerabili?estotheen?recompanyinunforeseenways.

n  StrategicnatureofIoTtodaylimiHngleverageacrossclients.MostenterprisesembarkingdowntheIoTpathseeitastrategic–whetherinincreasedopera?ngefficiencyorallowingthemtoenternewmarketsorserveoldonesinnewways.Assuch,enterprisesarekeepingtheac?vi?esunderwrapsandrequiringserviceproviderstodothesame.

Research Methodology

©2015HfSResearchLtd. Proprietary│Page9

Research Methodology

DataSummary

n  Morethan1,080datapointswerecollectedfrommorethan56IoTServicescontracts,covering18majorserviceproviders.TherewereotherssuchasWipro,HCL,HPandCapgeminiwhoseIoTserviceofferingsares?llevolvingandwerenotyetinaposi?ontobeincludedbutwhichwewillreportonlater.

n  DatawascollectedinQ2-Q32015,coveringbuyers,providers,andadvisors/influencersofIoTServices.

ParHcipaHngServiceProviders

ThisReportisBasedOn:n  TalesfromtheTrenches:Interviewswere

conductedwithbuyerswhohaveevaluatedserviceprovidersandexperiencedtheservices.Someweresuppliedbyserviceproviders,butmanyinterviewswereconductedbyHfSExecu?veCouncilmembersandpar?cipantsinourextensivemarketresearch.

n  Sell-SideExecuHveBriefings:Structureddiscussionswithserviceproviderswereintendedtocollectdatanecessarytoevaluateinnova?on,execu?onandmarketshare,anddealcounts.

n  HfS“StateofOutsourcing”Survey:Theindustry’slargestquan?ta?vesurvey,conductedwiththesupportofKPMG,coveringtheviews,inten?ons,anddynamicsof1,100+buyers,providers,andinfluencersofoutsourcing.

n  PubliclyAvailableInformaHon:Financialdata,websiteinforma?on,presenta?onsgivenbyseniorexecu?ves,andothermarke?ngcollateralwereevaluated.

©2015HfSResearchLtd. Proprietary│Page10

IoT Services Value Chain

IoTCONSULTING

•  Strategicplanningandbusinesscasedevelopment

•  Governancestrategy•  IoTtechnologyroadmap(referencearchitecture)

•  CustomAppDev(dashboards,visualiza?on,etc.)

IoTENABLEMENT

•  Productengineering•  Sensordevelopment•  Soiwareengineering•  Embeddedtechnology•  Devicesecurity

IoTCONNECTIVITY

•  Networkengineering•  Networkimplementa?on

•  Networksecurity

IoTINTEGRATION

•  Databasedesignandbuild

•  Analy?csImplementa?on

•  Systemintegra?on•  Applica?onmoderniza?on

IoTMANAGEMENT

•  Devicemanagement•  Cloudhos?ng•  Networkmanagement•  Datasecurity

IoTServicesarethosethatdesign,create,andmanageapathwayforthephysicalworldtoentertheAs-a-ServiceEconomybycrea?ngabridgebetweenhardgoods(&services)anddigitalinfrastructure.

IoTServices,however,donotincludethefollowingac?vi?eswhenconductedasastandaloneservice:deployingoropera?nganaly?cs;implemen?ngorrunningadatarepository;developingordeliveringanetwork;andcrea?ngormaintainingaphysicaldevicewiththecapacitytocreateandor/communicatedata.Thosestandaloneac?vi?eswouldbeclassifiedasAnaly?cs,BigData,NetworkImplementa?on,andProductEngineeringServices,respec?vely.

KeytoServicesMaturityontheServiceProviderProfilePages

LessMatureServices

MoreMatureServices

Maturityisbasedoffthefullsetofweigh?ngcriteriaforIoTServices,andthefiveboxesarethefiveareasofthevaluechain

ReliesonPartners

©2015HfSResearchLtd. Proprietary│Page11

Key Factors Driving the HfS Blueprint

EVALUATIONCRITERIA

Twomajorfactors:•  ExecuHonrepresentsserviceproviders’abilitytodeliverservices.Itincludesbutisnotlimitedto:–  Customersa?sfac?on–  Toolsandmethodologies–  Technologyexper?se

•  InnovaHonrepresentsserviceproviders’abilitytoimproveservices.Itincludes:–  IndustryandProcessexper?se–  Collabora?oncapabili?esand

partnerships–  IoTspecificofferings

CRITERIAWEIGHTING

Criteriaareweighedbycrowdsourcingweigh?ngsfromthefourgroupsthatmahermost:

•  EnterpriseBuyers•  ServiceProviders•  HfSResearchAnalystsTeam•  Advisors,Consultants,andIndustryStakeholders

©2015HfSResearchLtd. Proprietary│Page12

HfS IoT Services Blueprint Scoring Percentage Breakdown

EXECUTION 45.0%

QualityofCustomerRelaHonships 15.0%QualityofAccountManagementTeam 5.0%HowServiceProvidersIncorporateCustomerFeedback 10.0%

Real-WorldDeliverySoluHons 20.0%ProprietaryDeliveryModels 15.0%StandardDeliveryMethods 5.0%

FlexiblePricingModelstoMeetCustomerNeeds 10.0%

INNOVATION 55.0%

FutureAlignmentwithChangingMarket 25.0%Acquisi?onandInvestmentStrategy 5.0%PartnershipEcosystem 10.0%Collabora?onandDevelopmentTechniques 10.0%

StrengthofVisionforIoTServices 15.0%

AbilitytoGoBeyondStage1(DigiHzaHon)inIoT 15.0%

Crea?onofProprietaryFrameworksforAnalyzingNeeds 5.0%IndustryExperience 10.0%

TOTAL 100.0%

©2015HfSResearchLtd. Proprietary│Page13

Blueprint Scoring Definitions: Execution

EXECUTION Howwelldoestheserviceproviderexecuteonit'scontractualagreementandhowwelldoestheserviceprovidermanagetheclient/providerrelaHonship?

QualityofCustomerRelaHonships HowengagedareserviceprovidersinmanagingtheclientrelaHonshipbasedonthefollowingmetrics:qualityofaccountmanagement,serviceprovider/clientengagement,andincorporaHonoffeedback?

QualityofAccountManagementTeam Whatisthequalitylevelofprofessionalskillsintheaccountmanagementteam?

HowServiceProvidersIncorporateCustomerFeedback

Howhaveserviceproviderstakenfeedbackandincorporatedthatfeedbackintoofferings?

Real-WorldDeliverySoluHons DoesthesoluHonprovidedcomparefavorablytopeerswithregardtovaluecreaHonthroughcurrentofferings,partnerships,subjectmagerexperHse,anddeliverymodels?

ProprietaryDeliveryModels Whatifanyproprietarysoiwareplaeormsandprocessstructureshastheserviceprovidercreatedtodelivertheseservices?

StandardDeliveryMethods Whatifanystandardsoiwaretoolsandbusinessplaeormsdoestheserviceprovideru?lizedtodelivertheseservices?

FlexiblePricingModelstoMeetCustomerNeeds

Howflexibleareserviceproviderswhendeterminingpricingofcontracts?HavetheserviceprovidersalignedthesetermswiththeuniquedemandsaroundIoTprojects?

©2015HfSResearchLtd. Proprietary│Page14

Blueprint Scoring Definitions: Innovation

INNOVATION InnovaHonisthecombinaHonofimprovingbothservicesandbusinessoutcomes.

FutureAlignmentwithChangingMarket Howfuturelookingistheserviceproviderintermsofaligningitself–bothinskillsandofferings–withtheevolvingmarketdemand?Isitkeepingpace,afastfollower,orleadingtheway?

Acquisi?onandCapabilityDevelopment Howdoestheserviceproviderincorporatecapabilitydevelopmentinvestmentsincludingacquisi?onsintoitsstrategyandwhathasbeenaccomplishedalready?

PartnershipEcosystem Whatistheroleofpartnershipsinthedevelopmentoftheserviceprovider’ssolu?onecosystem?Howextensiveisthecurrentpartnershipecosystem?

Collabora?onTechniques HowwelldoestheserviceprovidercollaboratewithclientsandpartnerstodevelopPoCsintofullscalebusinesssolu?onsandIoTofferings?

StrengthofVisionforIoTServices DoestheserviceproviderhaveastrongvisionforservicesacrosstheIoTvaluechain?

AbilitytoGoBeyondStage1inIoT HowwellhaveserviceprovidersintegratedinnovaHvenewapproachesandemergingskillsandtechnologiesintoservices?DoesitalsobringthecoretechnologyplajormtoassistanenterprisedeploythenextlevelofIoTsoluHons?

Crea?onofProprietaryFrameworksforAnalyzingNeeds

Whatifanyproprietaryframeworksdoestheserviceprovideru?lizetoanalyzetheunderlyingbusinessneed?

IndustryExper?se DoestheserviceproviderhaveanyindustryIoTspecificofferings?Ifso,whatarethenatureoftheseandhowfaradvancedisitinbuildingthisareaout?

Key Market Dynamics

©2015HfSResearchLtd. Proprietary│Page16

IoT Services are Based on Realizing the Eight Ideals of the As-a-Service Economy

LEGACYOUTSOURCING AS-A-SERVICEECONOMY

Resolveproblemsbylookingfirstattheprocess 1.DesignandSystemThinking Generatecrea?vesolu?onsby

understandingthebusinesscontext

Complex,oienpainfultechnologyandprocesstransi?onstoreachsteadystate 2.BusinessCloud “PlugandPlay”businessservices

Fragmentedprocessesrequiringmanualinterven?ons,mul?pletechnologies 3.IntelligentAutomaHon Blendingofautoma?on,analy?cs,and

talent

Opera?onsstaffdoingmostlytransac?onaltasks 4.ProacHveIntelligence Opera?onsfocusedoninterpre?ngdata,

seedingnewideas

Ad-hocanalysisonunstructureddatawithlihlebusinesscontext 5.IntelligentData Real-?meappliedanaly?csmodels,

techniques,andinsightsfrombigdata

Legacytechnologyinvestmentsdrainbudgetstoremainfunc?onal 6.WriteOffLegacy Useofplaeorm-basedservicesmakes

manytechinvestmentsredundant

Governancestaffmanagecontractsandservicelevels 7.BrokersofCapability Governancestaffmanagetowards

business-drivenoutcomes

Pricingandrela?onshipsbasedoncost,effort,andlabor 8.IntelligentEngagement Pricingandrela?onshipsbasedon

exper?se,outcomes,andsubscrip?ons

Simplifica)on

©2015HfSResearchLtd. Proprietary│Page17

IoT Services are Incorporating the Ideals of the As-a-Service Economy

IDEAL AS-A-SERVICEIDEALDEFINITION

NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALL

PERVASIVE

DesignThinking

Genera?ngcrea?vesolu?onsbyunderstandingthebusinesscontext 2015

BusinessCloud

“PlugandPlay”businessservices2015

IntelligentAutomaHon

Blendingofautoma?on,analy?csandtalent 2015

ProacHveIntelligence

Opera?onsfocusedoninterpre?ngdata,seedingnewideas 2015

IntelligentData

Real-?meappliedanaly?csmodels,techniques,andinsightsfrombigdata

2015

WriteOffLegacy

Useofplaeorm-basedservicesmakesmanytechinvestmentsredundant

2015

BrokersofCapability

Governancestaffmanagetowardsbusiness-drivenoutcomes 2015

IntelligentEngagement

Pricingandrela?onshipsbasedonexper?se,outcomesandsubscrip?ons

2015

©2015HfSResearchLtd. Proprietary│Page18

IoT Is Embedded in the HfS Digital Framework

AS-A-SERVICEIDEALS:­  DesignThinking

­  BrokersofCapability

­  IntelligentEngagement

BACKOFFICEFRONTOFFICEEMPLOYEESCONSUMERSSKILLSCAPABILITIES

ENTERPRISEBRAND

INFRASTRUCTUREUnderlyingtechnologiesandservicesthatsupportcoreoperaHonalcommunicaHonsanddata:CIO,CISO,CTROENABLINGTECHNOLOGYService&technologyenablersprovidingdataandbridgingtheEnterprise–Consumergap:CIO,CTO,CXO,CRO

OMNICHANNELServicesandApplicaHonsthatfacilitatethepersonalizedexperience:CMO,CXO,CTRO

AS-A-SERVICECommitmenttoincorporateAs-a-ServiceIdealsintotheBusiness:FocusofenHreexecuHve/businessteam.

CONSUMERENGAGEMENTElementsthatshapethedigitalexperienceacrossallplajorms,technologies,channels:CMO,CXO,CCO,CTRO

AS-A-SERVICEIDEALS:­  DesignThinking

­  IntelligentAutomaHon

­  IntelligentData

­  ProacHveIntelligence

AS-A-SERVICEIDEALS:­  DesignThinking

­  BusinessCloud

­  WriteOffLegacy

THE8IDEALSOFTHEAS-A-SERVICEECONOMY:

1.   DesignThinking2.   BusinessCloud3.   IntelligentAutomaHon4.   ProacHveIntelligence5.   IntelligentData6.   WriteoffLegacy7.   BrokersofCapability8.   IntelligentEngagement

AS-A-SERVICEROLES:­  CEO: ExecuHve­  CMO: MarkeHng­  CTRO: Trust/Risk­  CIO: InformaHon­  CISO: InformaHonSecurity­  CTO: Technology/Product­  CXO: CustomerExperience­  CCO: Client/Consumer­  CHRO:HR/Talent

©2015HfSResearchLtd. Proprietary│Page19

IoT Services Value Chain

IoTCONSULTING

•  Strategicplanningandbusinesscasedevelopment

•  Governancestrategy•  IoTtechnologyroadmap(referencearchitecture)

•  CustomAppDev(dashboards,visualiza?on,etc.)

IoTENABLEMENT

•  Productengineering•  Sensordevelopment•  Soiwareengineering•  Embeddedtechnology•  Devicesecurity

IoTCONNECTIVITY

•  Networkengineering•  Networkimplementa?on

•  Networksecurity

IoTINTEGRATION

•  Databasedesignandbuild

•  Analy?csImplementa?on

•  Systemintegra?on•  Applica?onmoderniza?on

IoTMANAGEMENT

•  Devicemanagement•  Cloudhos?ng•  Networkmanagement•  Datasecurity

IoTServicesarethosethatdesign,create,andmanageapathwayforthephysicalworldtoentertheAs-a-ServiceEconomybycrea?ngabridgebetweenhardgoods(&services)anddigitalinfrastructure.

IoTServices,however,donotincludethefollowingac?vi?eswhenconductedasastandaloneservice:deployingoropera?nganaly?cs;implemen?ngorrunningadatarepository;developingordeliveringanetwork;andcrea?ngormaintainingaphysicaldevicewiththecapacitytocreateandor/communicatedata.Thosestandaloneac?vi?eswouldbeclassifiedasAnaly?cs,BigData,NetworkImplementa?on,andProductEngineeringServices,respec?vely.

KeytoServicesMaturityontheServiceProviderProfilePages

Maturityisbasedoffthefullsetofweigh?ngcriteriaforIoTServices,andthefiveboxesarethefiveareasofthevaluechain

LessMatureServices

MoreMatureServices

ReliesonPartners

©2015HfSResearchLtd. Proprietary│Page20

The Current Maturity of IoT Service Value Chain

CONSULTING ENABLEMENT CONNECTIVITY INTEGRATION MANAGEMENT

StrategicPlanningandBusinessCaseDevelopment

ProductEngineering

NetworkEngineering

DatabaseDesignandBuild

DeviceManagement

GovernanceStrategy

SensorDevelopment

NetworkImplementa?on Analy?csImplementa?on Cloud

Hos?ng

IoTTechnologyRoadmap(Reference

Architecture)

SoiwareEngineering

NetworkSecurity

SystemIntegra?on

NetworkManagement

CustomAppDevelopment

EmbeddedTechnology

Applica?onModerniza?on

DataSecurity

DeviceSecurity

Mature Compe??vemarketwithexamplesofserviceofferingsandcustomercasestudiesfromlargenumberofserviceproviders

Nascent Marketindevelopmentwithmorelimitedexamplesofserviceofferingsandcustomercasestudies

©2015HfSResearchLtd. Proprietary│Page21

The Current Maturity of Service Provider IoT Service Offerings

CONSULTING ENABLEMENT CONNECTIVITY INTEGRATION MANAGEMENT

Accenture

Atos

Cognizant

Dell

EPAM

Genpact

Harman

IBM

IGATE

Infosys

Luxoq

NiiT

NTTData

TCS

TechMahindra

Tieto

Unisys

Virtusa

LessMatureServices

MoreMatureServices

ReliesonPartners

KeytoServicesMaturityontheServiceProviderProfilePages

©2015HfSResearchLtd. Proprietary│Page22

IoT Solution Examples Across Verticals

INDUSTRYVERTICALS EXAMPLES

Aerospace ConnectedAerospace,ConnectedRepairSolu?ons

AutomoHve&TransportaHon ConnectedCar,InsuranceTelema?cs,FleetManagement,ConnectedShip,Interac?veGeospa?alSolu?on,ConnectedEVSta?ons,Predic?veAnaly?cstoReduceMaintenance&WarrantyCost,

Manufacturing ConnectedAssetManagement,ConnectedWorkers,RemoteDiagnos?c&Predic?veMaintenanceforIndustrialMachines,StolenAssetRetrieval,TransparentSupplyChain,ConnectedShopfloor

Buildings ConnectedHome,SmartEnergy,ConnectedBuilding

Agriculture PrecisionFarming,FarmtoFork

ConsumerElectronics SmartWearables,Subscrip?onEnablementPlaeorm,Authen?ca?onApplica?onsForWearables

UrbanInfrastructure SmartParking,SmartLight,SmartBin,SmartWaste,DigitalUndergroundMapping,InfrastructureMonitoring,BridgeMonitoring

Healthcare&LifeSciences ConnectedHealthcare,HealthFacilityWayFinding,VirtualCarePlaeorm,Pa?entEngagementPlaeorm,ConnectedPa?ent,EmergencyManagement

Oil&Gas DigitalOilField,SmartDrilling,SmartOilTransporta?on

UHliHes SmartGrid,SmartMetering,ConnectedPowerPlant,ConnectedSolarFarm,ConnectedWindFarm

Mining&Resources ConnectedMines

BFSI Cryptocurrency,BlockChainAssetManagement,BeaconsforCommerce

Service Provider Grid

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Todis?nguishprovidersthathavegoneaboveandbeyondwithinapar?cularlineofdelivery,HfSawardstheseprovidersa“Winner’sCircle”or“HighPerformer”designa?on.Thebelowprovidesabriefdescrip?onofthegeneralcharacteris?csofeachdesigna?on:

Winner’s Circle and High Performers Methodology

WINNER'SCIRCLE:

Organiza?onsthatdemonstrateexcellenceinbothexecu?onandinnova?on.

•  Fromanexecu)onperspec?ve,providershavedevelopedstrongrela?onshipswithclients,executeservicesbeyondthescopeofhipnggreenlights,andarehighlyflexiblewhenmee?ngclients’needs.

•  Fromaninnova)onperspec?ve,providershaveastrongvision,concreteplanstoinvestinfuturecapabili?es,ahealthycross-sec?onofver?calcapabili?es,andhaveillustratedastrongabilitytoleverageexternaldriverstoincreasevalueforclients.

HIGHPERFORMERS:

Organiza?onsthatdemonstratestrongcapabili?esinbothexecu?onandinnova?onbutarelackinginaninnova?vevisionorexecu?onagainsttheirvision.

•  Fromanexecu)onperspec?ve,providersexecutesomeofthefollowingareaswithexcellence,butnotallareas:highperformershavedevelopedworthwhilerela?onshipswithclients,executeservicesandhitallofthegreenlights,andareveryflexiblewhenmee?ngclients’needs.

•  Fromaninnova)onperspec?ve,providerstypicallyexecutesomeofthefollowingareaswithexcellence,butnotallareas:haveavisionanddemonstratedplanstoinvestinfuturecapabili?es,haveexperiencedeliveringservicesovermul?plever?calcapabili?es,andhaveillustratedagoodabilitytoleverageexternaldriverstoincreasevalueforclients.

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IoT Services Service Provider Matrix 2015 INNOVA

TION

EXECUTION

OneSourceVirtual

KPMG

Winner’sCircle

HighPerformers

NIIT

Luxoi

IGATE

Harman

Unisys

EPAM Virtusa

Genpact

NTTDATA

Tieto

Infosys

DellServices

CognizantAccenture

AtosTCS

IBMTechM

©2015HfSResearchLtd. Proprietary│Page26

Major Service Provider Dynamics: Highlights

EXECUTION

•  Atos,HarmanandTechMahindraallcitedfortheirproprietarydeliverymodels.ManyenterprisebuyerscitetheirIoTini?a?vesasbeingstrategicforthesuccessofthefirmandmanyareundersignificantpressuretoprogresstheirimplementa?onsquickly.Serviceprovidersthatarealreadyinves?nginIoTdeliverymodels,aheadofengagements,arerapidlygainingtheadvantageoverthosewhicharerelyingonclientsclientstofundtheirinvestments.

•  Atos,TCS,Accenture,NTTDATA,andTechMahindraalreadyofferAs-a-ServicepricingforIoT.IoTenablesanenterprisetoexperimentwithnewas-a-Servicebusinessmodelsbyshiiingthetradi?onalone?meproductsaletothatofanongoingsubscrip?onbuiltaroundapromisedoutcome/seriesofoutcomes.Tosupportthis,ambi?ousserviceprovidersmustmakeboldadjustmentstotheirexis?ngrevenuemodels,makingsomeshorttemrevenuesacrificesforthelongertermgainintheprocess.

•  Cognizant,Tieto,TCS,Infosys,andDellServicesdemonstrateastrongwillingnesstoco-investwithclientstodevelopnewsoluHons.GepngresultsintheuncertainrealmofIoTrequiresenterprisestotakeconsiderablerisks.Theseproviderswerecitedfortheirstrengthinundertakingthejourneyaswell.

INNOVATION

•  IBM,Genpact,NIIT,Luxoq,Unisys,andAccentureseenasstronginindustryand/orprocessexperHse.ThetechnicalaspectsofIoTareoientheeasiestpart.UnderstandinghowcoreprocessescanbeimprovedandalignedwithIoTini?a?vesiswheresomeofthebiggestgainswilloccurandtheseprovidersallperformedwellinthisregard.

•  IBM,Harman,andTechMahindraaggressiveinacquiringthecapabiliHestheyneed.IoTbringsaneedfornewtechnicalcapabili?esbeyondtradi?onalITmarkets.Sensorsandtheemergingcommunica?onprotocolsthatarebeingdeployedtolinkthemtogetheraswellasnewdataplaeormsrequiretradi?onalITserviceproviderstogathernewcapabili?esandskills.Thesethreeprovidersareaggressivelydoingsobyacquiringthetalenttheyneed.

•  Cognizant,Genpact,IGATE,EPAM,andNIITreachthehighestlevelsofcooperaHon.Whilemostserviceprovidersreceivedgoodmarksforworkingalongsidetheirclients,thesefivewerehighlightedastruepartnersinworkingalongsidecustomersastheysolvedapar?cularneed.

Service Provider Profiles

LessMatureServices

MoreMatureServices

ReliesonPartners

©2015HfSResearchLtd. Proprietary│Page28

Accenture AbreadthofrobustplaIorm-basedofferings,IoTexpertbenchstrengthandAs-a-ServicepricingmodelsmakeAccenturealeadingIoTpartnerWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs:~1,100OrgStructure:Accenture’sIoTprac?ceisrunbyCraigMcNeilwithintheAccentureMobilityPrac?cewhichispartoftheAccentureDigitalGrowthPlaeorm.DeliveryCenters:•  30%Onshore(US,Europe,andAsia)•  70%Offshore(India55%;Philippines10%;EasternEurope:5%)

Accenture’sIoTprac?ceisorganizedinto5businesstowerswhosefocusistoproduc?ze“As-a-Service”ver?calsbasedonspecificusecases.Thefivetowersare:ConnectedTransport;ConnectedSpaces;ConnectedOpera?ons;ConnectedHealth;ConnectedCommerce.

TargetIndustries:AccenturetargetstheG2000across:TransportandIndustrialEquipment,Health,PublicService,ConsumerGoods,Retail,Banking,Insurance,CapitalMarkets,Media&Entertainment,Electronics&HighTech,Communica?ons,U?li?esandEnergy

RelevantRecentAcquisiHons•  Evopro(2014)•  Symbian(2011)RelevantStrategicInvestments•  VenueNext(2015)•  Crihercism(2014)•  Apigee(2013)Partnerships:•  Intel•  Microsoi•  Apigee•  AmazonWebServices•  GE•  Cisco

•  ConnectedVehicle,InsuranceTelema?cs,FleetManagement,ConnectedShipetc.

•  ConnectedHomeofferingsforU?li?esandTechnologycompanies,DigitalUndergroundMapping,SmartBuildingssolu?onsetc.

•  ConnectedAssetManagement,ConnectedWorkers,PrecisionFarming,ConnectedMines,IIOTSecurity,SmartWearables,DigitalOEMetc.

•  IoTVirtualHealthstrategies,HealthFacilityWay-Finding,IoTVirtualCarePlaeorm,IoTPopula?onHealthManagement,HealthAssetManagement

•  Cryptocurrency&ProcessingStrategy,BlockChainAssetManagement,Tokeniza?on,PaydiantEcosystemEnablement,BeaconsforCommerceetc.

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  PorjolioofProprietaryUseCases.Accenturehasleverageditsdeepenterpriseandindustrialexper?setobuildoneofthemostthoroughreferencearchitecturesandcorrespondingplaeormsallowingclientstoquicklyembraceexperimenta?on.

•  CommigedPartnershipModel.AccenturehasmadethechoicetocommitaseriesofanchorpartnersinIoTrecognizingthestrengthofgoingtomarketwithleadersinrelatedareasoftechnology,withmorepartnerstocome.

•  ConnectedPlajormsAs-a-Service(CPaaS)Offering.AccenturehasdevelopedarobustplaeormthatquicklyenablesServiceOrchestra?on,AdvancedAnaly?cs,DataStreaming,Storage,Security,DeviceManagementforIoTopera?ons.CPaaScanbecustomizedtousedifferenttechnologyfrom,forexample,Microsoiand/orInteltomeetclientneeds.

•  ArrayofPricingModels.Offersafullrangeofpricingfromstandardcustomsolu?ontoofftheshelfpricingbasedonrelevantindustryunits(i.e.perconnecteddevice,perend-user,perconnec?ontoourplaeorm,pertransac?on,pervolumeofdataprocessed,etc.).Thisapproachenablesalowupfrontcostandfacilitatesbehercostcontrol.

•  IoTEnablementPotenHallyHamperedByComplexPartnering.AccenturedoesnothavethesamehistoryofprovidingengineeringservicesatthedeviceleveltosupportIoTenablementasmanyoftheotherWinner’sCircleserviceproviders.Formanyclients,thisisnotanissue,butinindustrieswhereclientsdonothavethesecapabili?esinternally,choosingAccentureforIoTsolu?onsmayleadul?matelytobuildingmorecomplexpartneringmodelstodeveloptheendsolu?on.

•  As-a-ServicePosiHoning.Accentureisac?velybuildingitsIoTofferingsaroundanAs-a-Servicemodel.Theseares?llearlydaysforthesemodelsandAccentureisworkingtocreatemarketmomentumandtheplaeormsbehindthiseffortinIoT.

BlueprintLeadingHighlights

•  FlexiblePricingModels•  StrengthofVisionforIoT•  Crea?onofProprietary

Frameworks•  IndustryExper?se

©2015HfSResearchLtd. Proprietary│Page29

Atos TheSiemensalliance,IoTPlaIormandcapabili7esinsecuritymakeAtosaleadingIoTservicesprovidertodayWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs:~1,000(plusanaddi?onal3,500fromanaly?cs.)OrgStructure:Atosisdividedintotwoseparatebusinessunits–anITServicesdivisionandaPaymentande-ServicesdivisionknownasWorldline.IthasIoTofferingswithineach.DeliveryCenters:•  28%Onshore(US)•  42%Nearshore(Morocco5%;CzechRepublic7%;Austria30%)

•  30%Offshore(India)

AtosgoestomarketwithtwodedicatedIoTPrac?cessharingthesameIoTplaeorm.Onedeliversbespokeservicesaroundconsul?ngandSystemIntegra?onandtheotherprovideswhitelabelIoTcapacityasaBPOofferingviaWorldline.ItalsogoestomarketwithSiemens.

TargetIndustries:

Atosac?velytargetscompaniesofallsizeswithitsbespokeofferingsandB2B2BorB2B2Copera?onswithitsWorldlineofferings.•  Aerospace,Transporta?on,Manufacturing(Automo?veIndustry,MachineBuilders&HomeApplianceManufacturers),Manufacturerproductsretailers,PublicSector,Insurance

RelevantRecentAcquisiHons•  BlueElephantSystems:(2015)Partnerships:•  Telecommunica?ons:Orange,Transatel•  Naviga?onandLocatedBasedService:

HERE•  ElectronicConsumerDevices:SAMSUNG•  SmartEnergyServices:EEBUSAlliance•  Hardware:Ac?a,Con?nentalAutomo?ve•  AppliedResearch:Siemens

Worldline’ssolu?onsrangeincludes:•  ConnectedLivingEnabler:adedicatedIoTplaeorm•  WLConnectedVehicle:FleetMgmt,In-VehicleInfotainment,UsageBaseInsurance,VehicleRela?onshipMgmt

•  WLConnectedHome:HomeAppliancesMonitoring&ControlandRemoteDiagnos?cs,Inter-ObjectsscenariosforSmartHome&SmartEnergy

•  WLConnectedInfrastructure:StolenAssetsretrieval,Monitoring&Control,RemoteDiagnos?cs&Predic?veMaintenanceforIndustrialMachines,VendingMachines,CityInfrastructuresystems,etc.

•  AppShop,e-Paymentservices,Subscrip?ons’offerings.

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  SiemensAlliance.Siemensowns15%stakeofAtosandthetwocompaniescollaboratecloselyonavarietyofIoTprojects.InJuly2015,thefirmsannouncedanincreaseinitsjointcollabora?onbringing€150Minvestment,withmuchofthisgoingtowardsR&DaroundIoT.Thatcoupledwithajointgotomarketini?a?vesmeansitbringsaverystrongproposi?onwhenSiemen’sproductscomeintoplay.

•  TrueEndToEndProvider.Atosprovidesafullrangeofservicesfromdeviceengineeringandsensordevelopmentallthewaythroughtoopera?nganIoTasaserviceforaclientfirm,withreferenceclientsforeach.Addi?onally,Atosispursuingaver?calIoTstrategydevelopingsolu?onsin10clearmarkets.

•  EffecHveIoTPlajormToAccelerateProjectIniHaHves..HavingmadesignificantupfrontinvestmentsinabuildinganIoTplaeormthatiseasilyconfigurable,Atoscangetaprojectupandrunningquicklyandatlowercostthanifitneededtobeassembledfromscratch.

•  IoTSecurity.AtosapproachestherisksofIoTheadonandbydoingsomakessureitisaconsistentthreadacrossallaspectsoftheIoTServicesValueChain.Coupledwithitsabilitytodeliveracrossallphasesmeansitcanensurealock?ghtenvironmentwithoutthechallengesthatariseduringahandoff.

•  DeliveryInNewAreas.WhileclientscitedAtos’sstrengthinmee?ngthedemandsofdevelopingnewcapabili?esitwasalsosaidthiscanleadtounderes?ma?ngtheini?alresourcesthatwillberequiredtogetthejobdoneon?me.However,clientsalsopointedoutthatAtoswasabletocorrectthisbyalloca?ngmoreFTEsfromwhatisarapidlygrowingprac?ce.

•  NearshoreDelivery.AtosisveryreliantonnearshorebasedresourcesforIoTwhichisachallengeforsomeclientsgiventheuncertaintyandcomplexitysurroundingmostIoTprojectswhichoiencauseclientstowanttofeelsurroundedbyon-siteteams.ToAtos’scredit,itseemsthoughtthatwhenthishasbeenanissuesofar,Atoswaswillingtorelocateresourcesonsitetogetpastthekeyissues.

•  EuropeanCentric.AtoshasyettodemonstratethebenefitsofitsXeroxacquisi?onandpartnershipinitsexpansionintotheUS.

BlueprintLeadingHighlights

•  FlexiblePricingModels•  ProprietaryDeliveryModels•  Acquisi?onandInvestment

Strategy•  StrengthofVisionforIoT

©2015HfSResearchLtd. Proprietary│Page30

Cognizant IoTserviceswellintegratedintobroadercorporatethoughtleadershipon“CodeHalos”andthevalueofdigitalcapabili7esWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs:~300(plusanaddi?onal300sourcedasneededfromotherprac?ces.)OrgStructure:Cognizant’sIoTprac?ceisrunbyAdithyaSastryaspartoftheEmergingBusinessAcceleratorprogramrunbySeanMiddletonwhoreportsdirectlytoCognizant’sCEOFranciscoD’Souza.DeliveryCenters:•  20%Onshore(US,UK,Netherlands)•  80%Offshore(India)

Cognizant’sIoTprac?ceoperatesinahubandspokemodelconnec?ngotheremergingtechnologyprac?cesaspartofitsDigitalWorksTechnologygroupamul?-disciplinaryteamcomprisedofstrategicconsultants,industryexperts,designthinkers,andtechnologiststhatworktogethertotransformanenterpriseusingourstructured,yetagile,methodology.TheIoTprac?ceswasofficiallyformedin2013.

TargetIndustries:Targetsenterpriseswith$1B+revenues•  Core:Manufacturing&Logis?cs,Banking,Insurance,Retail,Healthcare,LifeScience

•  Addi?onal:Travel,Hospitality

RelevantRecentAcquisiHons•  Odecee(2014)•  CadientGroup(2014)•  TriZehoCorp(2014)Partnerships:•  PlaeormVendors:Xively,PTC/Axeda,

Microsoi&AzureIoT,ZebraTechnologies,AWS,Cisco,Intel,andGEPredix

•  Innova?veSolu?ons:iControls,Vuzix,GoogleGlass,WIFARER

•  AppliedResearch:CarnegieMellonUniversity

•  APEx:Assetmanagementas-a-service•  Foresight:Connectsdevicesandtransmits,

aggregates,visualizesandanalyzesdatatoacceleratethedeploymentofIoTprojects.

•  HealthAc?vate:Targetedatlifesciencescompaniesandhealthcareproviders,forcloud-basedpa?entengagementInterac?veExposureMap:geospa?alsolu?ontargetedtoinsurers

•  MedVantage:Cloud-basedsales,service,andcomplaintmanagementsystem

•  S3P:Subscrip?onEnablementPlaeorm.•  UnprotectFailurepredic?onservices

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  IoTVisionBackedByExecuHon.Cognizantbringstherarecombina?onofthoughtleadershipwithexcellenceinexecu?on.TheIoTprac?ceispartofitsDigitalWorksTechnologyini?a?ve–theCEOsponsoredhubforthefirmsdigitalstrategyandfocusforinvestment.Thefirmhasundertaken40+successfulIoTclientengagements.

•  SmartIoTPracHceStructureFostersRapidIoTDevelopment.Opera?ngIoTasahubamidspokesofotheremergingtechnologyprac?cessuchasSocial&Mobile,Security,Cloud,Analy?cs,andEngineeringandManufacturingServices,drawsexper?sefromeachprac?cearea,withoutneedingtoreplicatework.Thisallowsittotapthebest,mostappropriateresourcesratherthanworkwithcap?vetalent,regardlessoffit.ForIoT,withopportuni?esacrossmanyindustries,thisistheidealgotomarketapproach.

•  WillingnessToCo-investWithClients.WiththeemerginganduncertainnatureofIoT,mostenterprisebuyersarelookingforanITservicesproviderwhichcaneitherdemonstrateexperiencefromasimilarini?a?veoriswillingtoinvest?meandmoneydevelopingsolu?ons.ClientsregularlyciteCognizant’swillingnesstoco-invest.

•  StrongAccountManagement.Regularlyshowsacommitmenttolisteningtoclientproblems,sugges?ngworkablesolu?ons,andawillingnesstobringintherightpartnerstogetthejobdone.ThisisconsistentacrossmanyofCognizant’ssolu?onareas.

•  NotStrongAtPushingItsInnovaHonAgenda.WhileclientscitedCognizantasastronginnovatorat?mes,someclientsreportedthatrequestshadtobemadeforinnova?ontobebroughttothedeal.

•  FieldSupportNecessitatesFurtherPartnerships/Investments.WhileCognizantperformsstrongly,overall,insupportandmanagement,thedistributednatureofmanyIoTengagementsmeansthefirmisfacingasupportenvironmentthatresemblesmoreend-userclientormobilesupport,thanenterpriseITmanagement.Cognizantneedstodemonstratethisgapispluggedthroughtherightpartnership(s).

•  ScaleOfOnshoreConsulHng.IoTisnotanofftheshelfsolu?on,sorequiressignificantconsul?ngresourcestosellanddelivereffec?vely.Thetradi?onalconsul?ngfirmsareabletodrawonalargerbenchthanthelikesofCognizant.

BlueprintLeadingHighlights

•  AccountManagement•  StandardDeliveryMethods•  PartnershipEcosystem•  Collabora?onTechniques•  StrengthofVisionforIoT

©2015HfSResearchLtd. Proprietary│Page31

Harman Agreatfitforanenterpriseneedingrobustend-to-endcapabili7esofthehighestqualityandexperienceWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~3,000OrgStructure:Harman'sIoTofferingsarenotorganizedwithinastandaloneunitbutinsteadarewithinabroadrangeofprac?ceareasfoundwithinitsConnectedServicesdivision(whatusedtocomprisetherecentlyacquiredSymphonyTeleca).DeliveryCenters:•  25%Onshore(US13%;Germany6%;andSouthKorea6%)

•  75%Offshore(India45%;Russia20%;China5%;Poland5%)

HarmansellsitsIoTServicesapartofdiscreteprac?ceareaswithinitsConnectedServicesdivision.

TargetIndustries:Harmantargetscompaniesofallsizesacrossindustriesandhasmajorclientsincluding:MajorHealthcareISVs,SmartMeterISV,StorageGiant,Tier1ChipsetManufacturer,Tier1Telecomoperator,Tier1PropertyConsul?ngCompanyinUS,Tier1Retailers,Tier1Manufacturers,CommercialRealEstateleader.

RelevantRecentAcquisiHons•  SymphonyTeleca(2014)•  Adi?Soiware(2014)•  RedBend(2015)Partnerships:•  Silicon:Intel,Marvell,Freescale•  ServicePlaeorms:Gemalto,Microsoi

Azure,Google,PLAT.ONE•  Connec?vityModules:Telit•  Wearables:QualcommandMTK•  Automo?ve:AT&T(DriveStudio)•  BigData:Hortonworks

•  ATLAS:Analy?calframeworkforConnectedCarlifecycle

•  HealthSymMetrics:Cloud-basedIoTintegratedinsightsplaeormforpa?entcaremanagement

•  InsightConnect(OTA,on-board/cloudbasedintelligence)

•  Redbend–OvertheAirSoiwareUpdateManagementfordevicemanagement

•  HarmanIoTGatewayforDataInges?on•  HarmanIoTTestHarness•  Marimba:Cloud-basedplaeormformanagingenterpriseIoT(configura?onmgmt.,patching,updates)

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  TrueEnd-to-EndProvider.Fromsensordesigntoongoingmanagement,Harmanbringsrobustcapabili?esupanddowntheen?reIoTstackandhasanestablishedtrackrecordineach.Inpar?cular,productdevelopmentandlifecyclemanagement.Assistsnotonlyintheini?alconsul?ngandimplementa?on,butalsoonanongoingbasisasIoTmatures.

•  CapableGo-To-MarketPartner.Inaddi?ontopartneringinthecrea?onofIoTofferings,Harmanbringsthecapabilityforjointgo-to-marketini?a?vesaseitherwhitelabelofferingsastheservicesintegratoranddirectsaleschannel.Thisisanimportantcomplementofskillsforthoseenterprisesenteringtheservicesmarketforthefirst?meviaIoT.

•  OTACapabiliHes.DeliveringOvertheAir(OTA)updatesisacri?calcapabilityforsuppor?ngIoTenvironments,andHarmanhasmadeanumberofrecentacquisi?onsinthisspace.Assuch,enterprisescanbeassuredtheirini?a?veswillhavethecapabilitytostaycurrentwithoutcostlyinterven?oninthefield.

•  PorjolioOfAcceleratorsAndIP.Harmannotonlybringsexperience,buthasabreadthofproprietarytechnologiesandplaeormsfortes?ngandspecificver?calandcommonsolu?ons.

•  AnalyHcsCapabiliHes.Harmanbringsverystrongdataanaly?cscapabili?estoeveryIoTengagementnotonlygatheringdata,butalsoprovidingac?onableinsights.

•  ProblemOfPlenty.BecauseHarmancandevelopaninnova?venewsolu?onforanenterprisedoesnotalwaysmeanitshould.Thereare?meswhenitinvests?meandenergysolvingproblemsthatenterprisesdonotnecessarilyhaveoratleastarenotthetopprioritytosolve.

•  IoTSilos.Giventhebreadthofcapabili?esacrossHarmanintherealmofIoTandbecausemanyofthesehavebeenunderwayforyears,thereisnotonesingularIoTprac?ce,asthereisinmostotherserviceproviders.ThismeansHarmanismissingacentralpointforestablishingbroadanddeeppartnershipswithotherIoTstakeholderswithintheserviceprovider.

•  IOTManagementNeedsDevelopment.ThisisanevolvingcapabilityforHarmancomparedtootherWinner’sCircleserviceproviderswhichhavebeenintheprovisionofITservicesformuchlonger.

BlueprintLeadingHighlights

•  ProprietaryDeliveryModels•  Acquisi?onandInvestment

Strategy•  PartnershipEcosystem•  StrengthofVisionforIoT•  IndustryExper?se

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IBM FocusonsolvingforcomplexityinIoTrelatedbusinesschallengeswithadeeplevelofintegra7oninanaly7csimplementa7onWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs:1,500OrgStructure:IBM’sIoTprac?ceisrunbyAlOpheraspartofthelargerBusinessAnaly?csandStrategygroupwithinIBMGBS.DeliveryCenters:•  25%Onshore(NorthAmerica15%;

Europe10%)•  75%Offshore(AP40%CEMEA25%;

LA10%)

IBM’sIoTServicesareorganizedunderitsBusinessAnaly?csandStrategyServicelineviaitsDigitalOpera?onprac?ce.IBMalsoformedtheIBMIoTindependentbusinessunitinMarch2015responsibleforprovidingtheplaeormandecosystemcomponents(Analy?cs,Cloud,Watson,andSecurity)acrossIBM.

TargetIndustries:IBMGBSac?velytargets,butisnotlimitedto,globalenterpriseswith1,000+employeesor$1B+revenue•  Coreindustriesinclude:DiscreteManufacturing,PublicSector,Transporta?on,Healthcare,Retail,andEnergy&U?li?es

RelevantRecentAcquisiHons•  Soilayer•  Cloudant•  Worklight•  Q1Labs•  TRIRIGAPartnerships:•  Twiher(forsocialinsightarounddevices

andservices)•  TexasInstruments•  AT&T•  ARM•  Semtech•  TheWeatherCompany•  ESRI(GIStechnology)

•  Predic?veAssetOp?miza?on(PAO)•  EnergyOp?miza?on•  MaximoandTririgaimplementa?on•  EmergencyManagement•  FleetandAssetManagement•  ConnectedHome•  ConnectedVehicle•  ConnectedBuilding•  ConnectedPa?ent•  ConnectedFactory•  SupplyChainAnaly?cs•  TransparentSupplyChain

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  ClearCommitmentToIoT.IBMwantstobeseenasathoughtleaderaroundIoTwithits“SmarterX”campaignandbyannouncinga$3Bcommitmenttoinvestinthetechnology.IBMhasbeensuccessfulinthepastinestablishingitselfasthoughtleaderthroughacombina?onofR&D,acquisi?onandclientinvestment.Wenotesimilarmovesinbothmobilityandcloud.WeexpectthesametooccurwithIoTwiththislevelofahen?on.

•  PorjolioOfToolsandPlajorms.IBM’salreadygonedeepinbuildingoutsolu?onsforIoTandhasabroadsetofofferingsacrossitscoreindustriesthatcanquicklysolveanIoTchallenge.

•  TrueEndToEndManagedServiceProvider.WhateverIBMbuilds,itwillalsorunandmaintain,hasthecapacitytoperformallfunc?onstoahighstandardandscaletoallowittouseanyflexiblepricingmodel,whenneeded.

•  VerHcalPresence.IBMdevelopedabroadporeolioofindustrybasedusecasesandIoTsolu?onsthatarerelevanttomostmajorclientindustries.Thisbreadthisoneofthedifferen?atorsitbringsversusHighPerformersandotherserviceproviders.

•  RigidDeliveryModel.SomeenterprisebuyersstatedIBMcanbestrictinadherencetoformalSOWsandwhilesomelikethisapproachasiteliminatessurprisesothersfeltitheldbackinnova?oninareaslikeIoTthatevolveinneedsanddefini?onover?me.

•  BusinessBenefitCommunicaHon.IBMcansufferfrombusinessbenefitsgepnglostinthetechnology,par?cularlywhenitgoestomarketwithaconceptlikeIoT.ThemessagingarounditsIoTofferingshasnotcaughtupwiththetechnology,whichcanimpactaclientsabilitytoengageandbecertaintoreceivethedesiredoutcome.

BlueprintLeadingHighlights

•  ProprietaryDeliveryModels•  Acquisi?onandInvestment

Strategy•  StrengthofVisionforIoT•  IndustryExper?se

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Infosys EngineeringservicesisfrontandcenterofstrategywithbenefitsfordevelopingtheIoTservicesofferingforthefutureWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~1,500OrgStructure:Infosys’IoTPrac?ceispartoftheInfosysEngineeringServices,aHorizontalBusinessUnit.DeliveryCenters:•  30%Onshore(NorthAmerica,UK,Germany,

France,APAC)•  70%Offshore(India)

InfosyshasadedicatedsalesteamforitsIoTprac?ceandorganizesitsofferingsaroundtarge?ngAssetEfficiency;Security,Safety&QualityofLife;and“Smart”–largeecosystemimpacts.

TargetIndustries:Infosysac?velytargets,butisnotlimitedto,G2Kclientsglobally.•  Core:DiscreteManufacturing,Automo?ve,

Aerospace,Retail,Healthcare,Logis?cs,Communica?onProviders

•  Target:Farming,ProcessManufacturing,PublicSector

RelevantRecentAcquisiHonsandInvestments•  Panaya(2014)•  Airviz(2015)Partnerships:•  IntelligentDevices:Murata,Intel,Bosch,

PTC-ThingWorx,PTC-Axeda,ILS,AMD•  Connec?vity:SierraWireless,Murata,Telit,

Digi,AT&T,Vodafone•  M2MPlaeorm:ThingWorx,Axeda,Bosch,

Microsoi,ILS,Cumulocity,IBM•  AppliedResearch:UniversityofAachen,

Germany(RWTH)andIndustrialInternetConsor?um(IIC)

•  BlackberryTechnologySolu?onsforAssetTrackingandLogis?cs

•  InfosysInforma?onPlaeorm-BigDataLakeandDataAnaly?csPlaeorm

•  InfosysLoca?onBasedservices•  InfosysBillingEdgePlaeorm•  InfosysEnterpriseGamifica?onPlaeorm-•  InfosysProximitySolu?onsApplica?on

Plaeorm•  InfosysCoolerMonitoringPlaeorm•  InfosysAssetMaintenanceSolu?on•  InfosysIoTMedia?onLayer•  InfosysContactCenterSolu?onforIoT

Opera?ons•  InfosysServiceabilityWorkflowPlaeorm

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  EngineeringServices.Infosyshaselevateditsengineeringservicesorganiza?ontoactasaspearheadfornotonlyIoTbutini?a?vesinDesignThinking,Digital,andageneralAs-a-Servicepush.Whilethisgroupwasalwaysquitecapable,itseleva?ontoamorevisiblerolewillserveitwellinderivingenterprisesolu?onsforIoT.

•  VisionIntoReality.Whengivenclearmandate,enterprisebuyershighlightthatInfosysdeliversexactlyasexpected.ThismeansIoTprojectswillstayonfocusandbeexecutedon?me.Givenallthevaria?onandpossibili?esthatIoTopensup,suchabilitytofocusiscri?caltoday

•  SeamlessTeamIntegraHon.TheInfosysteamisseenasintegra?ngincrediblywellintoacompany’scultureandarenotconsidertobe“outside”resourcesastheseteamsactandmakedecisionsasiftheteammemberswereinternalassociates.

•  InvesHngHeavilyInRepeatableIP.Infosysisinves?nginIICandIndustry4.0withafocusonAssetEfficiencyandanunderstandingofthecomplexityinvolved.Notjustasensoranddatabutacomplexsystemapproachandtheinvestmentinreferencesolu?onstoquicklyspinthisup.Demonstratedunderstandingofthecri?calityofsecurityinIoTwithstrongcapabili?eswithinandacrosstheIoTstack.

•  BusinessModels.EnterprisebuyersindicatedtoHfSthatInfosysneedstobequickertoembraceandadoptinnova?vebusinessarrangementsforIoTwheretradi?onalmodelsarenotassuitableorflexibleenoughforthefastevolvingnatureofthismarket.

•  ExcellenceInExecuHonCanHinderInnovaHon.GiventhestrengthInfosysbringstodeliveringwhatisasked,clientsfeelat?mesitcanbeachallengetogetthemtothinkdifferentandmakedecisionsonitsown.However,whenpushedforthis,Infosyswillbringitaswell.

BlueprintLeadingHighlights

•  StandardDeliveryModels•  ProprietaryDeliveryModels•  PartnershipEcosystem•  IndustryExper?se

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TCS DrivinganagileIoTstrategythatispoweredbyawillingnesstoco-createandco-investinpoten7alver7calsolu7onsWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~N/AOrgStructure:TheIoTprac?cehasbeenestablishedundertheDigitalEnterpriseorganiza?on.TheDigitalEnterpriseorganiza?onisheadedbyaGlobalVP&BusinessUnitHead,whoreportsdirectlyintotheCEODeliveryCenters:•  N/A

IoTisviewedasa“compositeforce”ofDigitalReimagina?on™byTCSthatisacombina?onofBigData&Analy?cs,Mobility,Social,AI&Robo?csServicesandispartoftheTCSDigitalEnterpriseprac?ce.IoTcanbedividedintotwodis?nctsegmentsi.e.ConsumerIoTandIndustrialIoT.TCSgoes-to-marketthroughtheSiliconValleyContribu?onCenter(SVCCC),theIndustries,theirpartnersandaDigitalReimagina?on™TowerinIndia,SiliconValleyandevents.

TargetIndustries:TCStargetsglobalenterpriseswithrevenueover$5B•  Manufacturing,Retail,U?li?es,HighTech,Energy&Resources,Travel&Hospitality,LifeSciences,Healthcare,InsuranceandTelecomIndustries.

RelevantRecentAcquisiHons•  TCShasinvestedinaJointVenturein

JapanwithMitsubishiITgroup–partlytoprovidelocalizedIoTservicesinJapan.

Partnerships:•  PlaeormVendors:IntelandCloudera,

PTC,Bosch,IBMPredix,Splunk,IBMBluemix,MicrosoiAzure,

•  AppliedResearch:IndustrialInternetConsor?um,AllseenAlliance,OpenInterconnectConsor?um

•  TCSIoTSensorDataAnaly?csFramework:Fordeepanaly?cswithpredefinedmodels

•  TCSGoSafeTM:TCSInsuranceTelema?csSolu?on-asmartphonebasedtelema?cssolu?onfordriverswithinsurance

•  TCSdreamUP™:Adatavisualiza?onplaeormwithchar?ngcomponentsforrenderinganaly?calinsights.

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  Co-Investment.ClientsciteTCSabilitytogotheextramileinprovidingupfrontanalysisandPOC’sasarealdrawtopartneringwiththeminIoT.

•  Co-CreaHon.EstablishingaDigitalRe-imagina?on™CenteralongthelinesofMIT’sMediaLab,TCSislookingtoestablishquarter-longcollabora?onwithclientsandprospectsinadedicatedIoTenvironmentthatwillgowellbeyondthequickhitPoCs.Nootherserviceproviderisyetgoingtothislengthtodemonstrateco-crea?on.TCSalsohasaSiliconValleyCustomerCollabora?onCenter(SVCCC)foronsiteadvisory,consul?ngandengagementswithclients.

•  IndustryAndTechnologySkillMix.IoTperhapsmorethananyotheremergingtechnologyarearequiresamixofbothindustryinsightandverydeeptechnicalskills.TCSbringsbothinawaythatfewifanyotherserviceproviderscan.

•  IoTEnablement.TCScapabili?esinengineeringandotheraspectsofIoTEnablementaresignificantandarecompe??velydifferen?a?ngversusmanyoftheotherleadingserviceproviders.

•  BroadCapabiliHes.TCSisthelargestoftheIndianoffshoreoutsourcingfirmsandenjoysthebroadestdeliverycapabili?es.Thisaddsbusinessprocessandinfrastructurecapabili?esacrossthebroadestsetofcustomersbothindustryandgeography.Thisgivesitabeherstar?ngpointforexpandingitsIoToffersthantheotherIndiabasedserviceproviders.

•  PushingBack.Clientsweresa?sfiedthatTCSIoTteamscapturedtheirrequirementsanddeliveredtospecifica?onbutfeltthatagreaterroleas“devil’sadvocates”shouldbetakenbyTCStochallengewhatmightbemistakenassump?onsandrequirementsonthepartofclientstobeginwith.

•  IoTSkillsSilos.EnterprisebuyerscomplainedthatitcouldbedifficulttogetaccesstolargerrelatedIoTskillsfromotherpartsoftheserviceprovidertosupplementtheteamsthatwereavailablefromtheIoTprac?ceitself.

BlueprintLeadingHighlights

•  StandardDeliveryModels•  FlexiblePricingModels•  Collabora?onTechniques•  StrengthofVisionforIoT

©2015HfSResearchLtd. Proprietary│Page35

Tech Mahindra BringingthefullspectrumofIoTtechnologiesandcapabili7estoclientbusinessneedsWinner’s Circle

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~450OrgStructure:TechMahindra’sIoTprac?ceisintegratedatitsDigitalEnterpriseSolu?onsgroupwhiletheIndustrialIOTthroughtheProductEngineeringgroup.DeliveryCenters:•  35%Onshore(US20%;UK15%)•  65%Offshore(India)

TechMahindrausesamixofallianceandpartnerteams,deliveryandpre-salesteams,andgeographybasedsalesteamstosellIoTservices

TargetIndustries:SMBstolargeenterpriseswithannualrevenuesofgreaterthan$5Billionsincewehavesolu?onsforallkindofenterprisesincludingSOHO's•  Healthcare,Automo?ve,Telco,Manufacturing(DiscreteandProcess),Aerospace(OEMs,MROs),Energy(Renewable,O&G),ConsumerGoods,TransportTravelandLogis?cs,BFSI,Retail

RelevantRecentAcquisiHons•  AiermarketTelema?csSuite(2014)•  AcquiredDeviceTes?ngLab(2014)Partnerships:•  Aeris,Jasper,Verizon,TeliaSonera,T-

Mobile,AT&T,ThingWorx,Axeda,ConnectM,Google,here,AnyData,Bosch,SierraWireless,CalAmp,Radius,OpenNet,neeeco,Real?meInnova?ons(RTI),RasilantTechnologies,Hadoop,Digi,Gaurd

•  30+ver?calizedIoTofferings.E.g.,RemotePa?entMonitoring,Aircraihealthmonitoring,Driver/passengerhealthmonitoring,Track&TraceforPowerTools,RemoteMonitoringforRenewableEnergyAssets,FleetManagementforMul?pleIndustries&Vehicles,Telema?cssolu?onforEV,FarmtoFork,SmartParking,SmartLights,SmartBin,UsageBasedInsurance,iDEP,etc.

•  Mul?plesolu?onsacrossthefollowingumbrellas:ConnectedVehicles,ConnectedFactories,ConnectedEquipment,ConnectedCare,ConnectedAerospace,SmartCitySolu?onsSuite

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  TechnicalDepth.EnterprisebuyersfrequentlyreportbeingpleasantlysurprisedbythetechnicaldepthTechMahindrabringstoengagements.Aswellasrobustandthoroughunderstandingofthecurrentpointsofconnec?vityandprocess.

•  Eco-systemApproachtoPartnering.TechMahindraisbuildinganecosystemofpartnersacrossthedifferentIoTareas.Helpingtoaugmentitsinternalskillsandpulltogetheranendtoendofferfrombestofbreedpartners.

•  AcquisiHonAmbiHons.Withbigstatedambi?onsforgrowthandDigital,itislikelyTechMahindrawillbeinthemarkettoacquirecomplimentaryfirms.Doingsowillallowittoaugmentitsexis?ngstrengthinthemostadvantageousofways.

•  InvestmentInPoCs.Repeatedlycitedwillingtoputit’sownskininthegameanddeveloprobustPoCsandplaeorms.Buyersindicatedthisgoeswellbeyond“slideware”toactualfunc?oningarchitecturesthatcanbequicklydeployed.

•  LeverageEngagementsInAsia.TMhassuccessfullycompletedalmost40IoTprojectsinAsia–givingitexperienceindesigningandimplemen?ngabroadrangeofprojects.

•  DesignThinkingNotWellDeveloped.WhileclientscitedTechMahindra’sstrengthsacrossmanyaspectofIoT,itwascitedforbeings?llnascentinapplyingdesignthinkinginitsapproachtocomplexbusinessneeds.However,thisisachallengethatcanbeaddressedthroughinvestmentincapabili?esandinculturalchangemanagement.

•  IoTMarkeHng.BycomparisontomanyoftheotherWinnersCircleserviceproviders,HfShasnotseenTechMahindraasvisibleinthedirectmarke?ngofIoTcapabili?es.Withsomanyopportuni?esintheexis?ngclientbasethisisnotasignificantchallengebutwebelievethatTechMahindramaynotbegepnga“fairshare”oftenderedopportuni?esasaresult.

•  RelaHonshipsInUS/EuropeAreVeryLimited.ManyoftheIoTprojectssofarhavebeenoutsideofkeyUS/Europemarkets.Givingrisetoques?onsaboutresourcesitisabletomusterforpoten?allyconsul?ngheavyonshoreengagements

BlueprintLeadingHighlights

•  Acquisi?onandInvestmentStrategy

•  PartnershipEcosystem•  StrengthofVisionforIoT•  Collabora?onTechniques

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Dell Services Dellbringsstrengthinthehardwareandconnec7vitycomponentsoftheIoTvaluechainwithanemergingservicesofferingHigh Performer

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs:pureIoT15,incbroaderresourceses?matec200.OrgStructure:Dell’sIoTprac?ceisrunbyChethanGorurwhoreportstotheheadofDigitalBusinessServicesrunbyRamanSapra.DeliveryCenters:•  40%Onshore(US30%;UK10%)•  60%Offshore(India)

IoTServicesispartoftheDigitalPrac?cewithinApplica?onServicesatDell.Inaddi?on,DellhasanIoTOEMbusinessaspartofitshardwaredivision.

TargetIndustries:DellServicesac?velytargets,butisnotlimitedtolargeenterprisesglobally•  Core-Healthcare(Payers/Providers/LifeScience),BFSI(Banking/FinancialServices/Insurance),Manufacturing,Energy&U?li?es,Hospitality

•  Target-Banking,FinancialServices,Logis?cs,Transporta?on,Hospitality,Educa?on,Hospitality

RelevantAcquisiHons•  Boomi(2010)•  Toad(2012)Partnerships:•  PTC/ThingWorx

•  SmartConnectedApplica?ons•  SmartConnectedOpera?ons•  SmartConnectedProducts•  SmartConnectedIoTEnterprise•  IoTAdvisoryandTransforma?onServices•  IoTApplica?onIntegra?onServices•  IoTApplica?onDevelopmentServices•  EnableSmartConnectedProducts•  EnableSmartConnectedOpera?ons

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  RobustIoTProductLine.DellhasanIoTOEMgroupwithinClientSolu?onsbuildingcoregateways.Dell’sOEMteamprovidesthego-to-market(Sales)effortforthegateways.Similarly,itsstrongdatamanagementsoiware(BoomiandToad)alsofuelthepipeline.Thesevariousproductlinesfeedsopportuni?esforServicesthatgobeyondthetypicalimplementa?onandintegra?onroleforaGlobalSI.

•  BreadthOfServiceCapability.IoTcreateschallengesaroundremotesupportthatnotmanyenterpriseservicesorganiza?onshavesignificantexperiencehandling.Dell,withitsproductservices,hasverystrongcapabili?eshereandislookingtoleveragethisacrossIoT–evenifdeliveredfromseparateprac?cestoday.

•  FocusedPartnershipModel.DellhassecuredapartnershipwithPTCasapar?cipantinThingWorxGlobalSystemsIntegratorAllianceprogram.ThiswillallowitdeepinsightintooneoftheleadingIoTplaeormstodayandincludestheabilitytoexploreapproacheswithinitsdedicatedSolu?onLabinSanJose.

•  InvestmentInAdvisoryServices.Forexample,aspartofini?alengagementDelluseamodeltogaugeclientscurrentIoTmaturity.Usingthisasabasisforroadmapdiscussionswithclientsstar?ngonIoTjourney.

•  ServicesBrand.OneofDell’sstrengths,thereachofitsbrand,canalsobeadetrimentasthefirm’scapabili?esinServicesaremuchlesswellknownthanthoseinhardwarewhichisalsothecasewithIoT.

•  IoTMessaging.BecauseDell’sapproachtoIoTissobroad–spanninghardware,soiware,andafullrangeofservices,thereisariskthattheenterpriseservicesac?vitywillbeconfusedwithac?vityinsay,OEM.DellServiceswillneedtoworkhardertogetitsmessageacross.

•  DesignThinkingLimitaHons.HfShasnotyetseenthesamelevelofinvestmentinDesignThinkinganditsapplica?ontoclientbusinessproblemsatDellthatwehaveseenemergingamongstanumberofthecompe?ngserviceproviders.

•  ScaleSHllSmall.CurrentlyIoTiss?llnascentforDell,withlessthan20clients,primarilyintheUSandtheUK.

BlueprintLeadingHighlights

•  AccountManagement•  Acquisi?onandInvestment

Strategy•  StrengthOfVisionInIoT

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EPAM StrongEngineeringandApplica7onDevelopmentcapabili7escomplementanintegratedIoTEnablementofferingandshouldleadtoadedicatedprac7cewithuniquecapabili7es

High Performer

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs:~200OrgStructure:EPAMdoesnothaveastandaloneIoTprac?cebutbringscapabili?estomarketprimarilythroughitsProductDevelopmentServicelinewhichsitalongsideitsTechnologySolu?onsandProductEngineeringServiceslines.DeliveryCenters:•  9%Onshore(US5%;Germany2%,Sweden

2%)•  91%Offshore(Belarus75%;Ukraine11%;

Singapore3%)

EPAMconsidersIoTasanintegratedandholis?csetofservicesofferingsthatdove-tailsintoitsgeneralservicelinesthataredrivingAdvancedEngineering,IntelligentEnterpriseandDigitalEngagement.

TargetIndustries:

EPAMtargetsHi-techcompaniesandlargeenterpriseswithrevenues$1Bandmore•  Core:IT,FinancialServices,Energy,Healthcare&LifeSciences,Retail,Sport&Lifestyle,Travel,Media&Entertainment

•  Addi?onal:Manufacturing,Telecom

RelevantRecentAcquisiHons•  Naviga?onArts(2015)•  GreatFridays(2014)•  Netsoi(2014)•  GGASoiware(2014)•  EmpathyLab(2012)

Partnerships:•  PlaeormVendors:Oracle,SAP,IBM,

Microsoi•  Innova?veSolu?ons:TI,Freescale,ARMand

AnalogDevices

•  EPAMIoTPlaeorm-Thissystemmonitorsitself,dynamicallyadapttochangingcondi?onsands?llallowexternalcontrolandkeepusersinformedonwhat'sgoingon.

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

BlueprintLeadingHighlights

•  StandardDeliveryModels•  Acquisi?onandInvestment

Strategy•  Collabora?onTechniques•  StrengthofVisionforIoT

Strengths Challenges

•  EnviableClientList.EPAMhasenviabletechclientsincludetechnologycompaniessuchasGoogle,Oracle,andeBay.

•  ResponseToComplexity.Clientssiteitsabilitytoinnovatearoundcomplexchallengeswhilestayinggroundedinbusinessstrategyasakeydifferen?atorforEPAMoverotherITservicesfirms

•  HighlySkilledWorkforce.EPAMputsamajorityofseniorfolksoneachprojectteamsandtheyallspeakEnglishwell.ClientsreportfindingthemverypredictableandreliableandthatEPAMisabletoreadilydelegateprojectsandclientstrustthesewillbedonewellandon?me.

•  BreakNewGround.Withanembeddeddeviceprac?ceanditsstrengthinsoiwareengineeringEPAMbecomesagoodchoicefortechnicallychallengingcustomengagementsinuntriedIoTareas.

•  IoTEnablement.Withanembeddeddeviceprac?ce,EPAMbringsrobustcapabili?esindevicedesignandenablementandwhencoupledwithitsstrengthinsoiwareengineeringitbecomesagotochoiceforthosebreakingnewandperhapsstrategicgroundwithitsIoTini?a?ves.

•  TimeZoneChallenges.WhilenotaschallengingasworkingwithAsianbaseddevelopmentstaff,the?mezonedifferencesforthoseinNorthAmericacans?llimpacteffec?veness.However,thismaybeelevatedasEPAMopensacenterinMexico.

•  IoTDeliverySilos.Despitestrengthsinembeddeddevicesandsoiwaredevelopment,thereisnosingleunitdirectedatservingclientsacrosstheIoTvaluechain.Whilethiscapabilitycanbes?tchedtogether,doingsorequireslearningontheflythatisnotrequiredwhenallorchestratedunderoneprac?ce.

•  IoTConsulHngAndManagement.EPAMshouldcon?nuetoinvestincapabili?esforIOTbusinessconsul?ngandsolu?ondevelopmentandinthesupportinfrastructuremanagementasitgrowsitspresenceintheIoTmarket

•  Scale.Engagementstodatewithlessthan10thatareexclusivelyIoT,butatleastseveraldozenwhereIoTisacomponentofanoverallsolu?on.

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Genpact AprocessledapproachtoIoTthatallowsGenpacttoinnovatewithclientstobringIoTintotheexis7ngopera7onsHigh Performer

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~1,450OrgStructure:Genpact’sIoTac?vityisdeliveredaspartofitsanaly?csandunderGenpact’sDigitalLeanbranding.ThisishowAnaly?cs,Engineering,Consul?ngandITwilldeliverendtoendsolu?onsinIoT.DeliveryCenters:•  30%Onsite(US)•  10%Nearshore(Italy)•  60%Offshore(India)

GenpactfocusesitsIoTeffortstodayonIndustrialAssetOp?miza?on.AllrelevantsalespersonnelaretrainedinthisbutitalsopairsasubjectmaherexpertalongwitharelevantengineeringSMEfocusonhowbesttocombineprocess,technology,datascience,andpeople.

TargetIndustries:Genpactac?velytargetsenterpriseswithrevenueover$10B•  IndustrialMachineServices,CustomerInsight,HiTechManufacturing,andCPG

RelevantRecentAcquisiHons•  N/APartnerships:•  PlaeormVendors:GEPredix,IBM,Cisco,

Sen?entScience,Decisyon,ILST,AXEDA(PTC),ConnectM(Inprocess)

•  AppliedResearch:IndustrialInternetConsor?um,UILabs

•  IntelligentProcessInsightsEngine(IPIE).ModularinitsarchitectureIPIEprovidesanEnterpriseDataHubwithmodulesthatincludeDataDiscovery,TextAnaly?cs,SensorDataProcessing,andAdvancedAnaly?cs.

•  Analy?csCenterofExcellence

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  ProcessFirstApproach.Genpactfocusesfirstonunderstandingcoreprocessesandwhatdatashouldbecapturedandanalyzedtoimproveperformance.Thisresultsinafocusonimpactratherthanoneoftechnologydeployment

•  ClearFocusOnAssetOpHmizaHon.Genpactisnotdistractedbyamyriadofwhat’spossiblewithIoTbutinsteadfocusesoncleardemonstratedusecasestodaywherethereturnsaremeasurablesuchasfieldserviceopera?onsforenterpriseswithlargeassets.Whilethisfocusmayevolve,bykeepingitnarrowtodayitcandevelopdeeperexper?seatareasofgreatestimpact.

•  RobustEngagementAnalyHcs.Genpact’sIoTofferingsarecraiedanddeliveredfromwithinitsAnaly?csgroupwhichmeansitneverstopsatmeredatacrea?on.Furtheritfocusesnotjustondatatoinsightbutinsighttoac?on.Crea?ngsensorsondataistheeasypartofIoT.Understandingwhatitmeansandhowbesttoreactiswherethegreatestvalueistobefound.

•  IoTPlajorm.GenpacthasdevelopeditsownIoTplaeorm-IntelligentProcessInsightsEngine(IPIE).IPIEincludesDataDiscovery,TextAnaly?cs,SensorDataProcessing,andAdvancedAnaly?csmodulesthatcanbedeployedviaacloud.Genpactalsoleveragespartnerecosystemplaeormsi.e.GEPredix,IBM,Decysion,andMitsubishi.

•  NarrowFocus.WhileGenpact’sfocusonAssetOp?miza?onprimarilyforcompanies‘thatmakethings’meansitbringspar?cularstrengthinthatnarrowerarea,italsomeansitsservicesarenotforall.Yetastheadop?onofIoTgrowstoonefuelingrevenueenhancement–especiallyasproductsgetrepackedasservices–Genpactmayneedtolooktobuildthisouttokeepcoreclientshappy.

•  IOTEnablementandConnecHvity.Genpactiss?llbuildingoutcapabili?esinIoTEnablementandConnec?vityincomparisontootherserviceproviderswhichhavehadalongertenureinthedeliveryofengineeringandITservicesthatunderliethesecapabili?es.

•  ScaleofOnshoreConsulHng.IoTisnotofftheshelfsolu?onsorequiressignificantconsul?ngresourcetosellanddelivereffec?vely.Thetradi?onalconsul?ngfirmsareabletodrawonalargerbench.

•  PracHceScale.ComparedwithsomeoftheotherprovidersGenpacthasarela?velysmallnumberofIoTengagementstodatewithlessthan20.Althoughtheinvolvementwithlargescaleini?a?veswithfirmslikeGEmakesupforthissomewhat.

BlueprintLeadingHighlights

•  Incorpora?onofFeedback•  Collabora?onTechniques•  StrengthofVisionForIoT•  IndustryExper?se

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NTT DATA Ver7calbreadthandcapabili7esdepthinJapanbeingrolledoutgloballywillmakeNTTDATAapoten7alIoTpowerhouseHigh Performer

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~1,290OrgStructure:NTTDATA’sIoTservicesarepartofitsgeneralITserviceorganiza?on.DeliveryCenters:•  IoTdeliverymainlyon-sitecurrently.

NTTDATAhasglobaldeliverycapabilityoffshoreandnearshore.Theseinclude:Chile(Temuco),Spain(Alicante,Murcia,Seville),Argen?na(Tucumán)andBrazil(Uberlandia),plusNorthAmericaandAPACincludingIndia

NTTDATAhasaSmartCenterofExcellenceinMadriddedicatedtoprovidingservicesaroundIoT(e.g.hardwareintegra?on,devicetes?ng,tailoredprojects.OtherDigitalareashaverelatedglobaloneini?a?vesandaCenterofExcellencethatspansacrosstheregionaldivisions.Theseareresponsibleforbestprac?cesharingandorchestra?onforcrossregionalbusinessfromaglobalperspec?ve,andworkcloselywithIoTrelatedservicesbusinessunitdependingontheclientdemand.

TargetIndustries:

NTTDATAtargetslargeenterprisesforIoTin:PublicSector,Manufacturing,U?li?es

RelevantRecentAcquisiHons•  everis(2014)Partnerships:•  NEC,Telefónica,SIGFOX,Itron,NEDAP,

owasys,Telit,andseveralIoTstart-ups•  allianceswithIoThardwaremanufacturers

thatprovidesensors/devices•  AlliancewithIntelforpromo?ng

standardiza?onandsolu?ondevelopment•  Collabora?onwithNTTgroupcompanies:

suchasNTTCommunica?ons,DimensionData,etc.

•  eMDM:Smartmetering•  Fleet.i:Fleetintelligence.•  Liquitrax:Smarttransporta?onUpstreamOil•  allWaste:SmartWaste•  allParking:Smartparking.•  allLight:SmartLigh?ng•  allEyes:Ci?zenasasensor.•  net4Things:connectedhomeservices•  BRIMOS:bridgemonitoringsystem•  ANYSENSE:rapiddeploymentofIoTsolu?ons•  Authen?ca?onapplica?onforgoogleglass•  BEACONNAVI:•  3Dprintermonitoringsolu?on•  GaiaLinX:ElectronicVehiclepowersta?ons•  RemoteOne:Energymanagementsolu?on

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  DedicatedIoTCenterOfExcellence.OutsideofJapan,NTTDATAhascentralizeditsIoTac?vityaroundacenterofexcellenceitcallsCenterofExcellenceSmartlocatedinMadrid.ThiscenterservestounifyitsIoTac?vi?esgloballyacrossregionallysegmentedopera?ons.

•  WillingnessToUHlizeConsumpHonBasedPricing.OnceNTTDatahavecompletedini?albuildoutphasetypicallyforafixedfee,NTTDATAhastransferredtheongoingrevenuemodelfortheopera?onofseveralIoTprojectstoapayperusebillingdeterminedbynumberofdevicesdeployed.

•  PartnershipForEndToEndDelivery.NTTDATAhasbuiltoutarobustpartnernetworktoensureitcanmeeteveryneedaroundIoTastheprimeintegrator.Frompartnershipswithestablishedglobalpartners,toinnova?veR&Djointventures,tomanysmallemergingmarketplayers,NTTDATAhasawideanddeepecosystemwhichensuresclientswillhaveaccesstothebreadthofskillsrequiredforsuccess.

•  ClientPartners.NTTDATAispartneringwithanumberofglobalbrandedcompaniesaroundIoTtodevelopIoTproductsandservicesinconjunc?onwiththem.

•  GlobalFragmentaHon.NTTDATAdemonstratedexamplesofeffec?vedeliveryacrossmul?pleregionsbutworkremainsinthisregard.WhileGlobalOneini?a?vesaresmoothinglegacydifferencestheserviceproviderremainsfarfromaglobalopera?ngmodelandthiscanriskisola?ngpocketsofexper?se.

•  GlobalBranding.WhilewithinJapantheNTTDATAbrandisextremelystrong,thebrandhassomewhatweakermindshareoutside.Thischallengeishighlightedbyitsuseofacquiredbrandnamesinsomeregionsratherthanasingleunifiedname.

•  NascentBusiness.ThisisanewbusinessforNTTDATAwithlessthan20engagementstodate.

BlueprintLeadingHighlights

•  ProprietaryDeliveryModels•  FlexiblePricingModels•  StrengthofIoTVision•  PartnershipEcosystem

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Tieto IoTiscoretostrategicgrowthofTietoandcapabilityinvestmentsarebeingmadetorealizetheincreasedimportanceofthisofferingHigh Performer

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~100Orgstructure:IndustrialInternetunitheadedbyTaneliTikka,repor?ngtotheboardchairedbyTietoCEO.Teambasedleanorganiza?on.DeliveryCenters:•  90%Onshore(Finland50%;Sweden40%)•  10%Nearshore(CzechRepublic10%)

Tietopar?cipateinrela?velyfewformalwrihenrequestsandtendtodiscussandengageitscustomersinadialogueinstead.Thisconsulta?veapproachcanhelpthemstandapartfromtheoienproduct-centricofferingsofsomecompe?tors.

TargetIndustries:TietotargetsmediumtolargecompaniesprimarilywithintheNordics•  Manufacturing,ForestIndustry,Energy,Welfare,Logis?cs,Retail,Telecom,Media,andAgriculture

RelevantRecentAcquisiHons•  N/APartnerships:•  Teradata,Oracle,Microsoi,Google,Cisco

Systems,HP,IBM,Cumulocity,BaseN,TeliaSonera,MaintPartner,Livion,FougaIT,Asema,DataRangers,HoustonAnaly?cs,RoimaIntelligence,ControlExpressFinland,ScandinavianRadioTechnology,Solteq,Trelab,Oliotalo,Quuppa,Kal?oTechnologies.

•  Smarthousing&facilitymanagementIoTplaeorm

•  RealTimeFactory-plaeormforthemanufacturingindustry,

•  M2MinaboxIoTdeviceplaeormforsmartdevicesonthego

•  AdvancedAnaly?csplaeormforIoTassociateddatascienceandbigdata

•  TietoVital:predic?vesitua?onalawareness&fleetmanagementplaeorm

•  eSenseplaeormforwelfare&healthcareservices

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  IoTFocus.IoTwastappedasoneofthreeprimarygrowthopportuni?esfortheserviceproviderintheSpringof2014andassuchisanareaoffocusandinvestwiththehighestvisibilityallthewayuptotheCEOyetsetupasafairlyindependenten?tytoahractthehighestleveloftalentandallowthecompanytoinvest.

•  PlajormInvestments.Whileitisnotmakingbetsinanyonearea,Tietoisexploringmul?pleplaeormsforexpedi?ngthedeploymentofIoT.Theendgoalistoiden?fythoseplaeormsmostlikelytosucceedandtobringskillsaroundthemsoprojectscanbequicklydeployed.Thispragma?capproachwilllikelysaveenterprisebuyersnotonly?meandmoneybutfalsestartsaswell.

•  Co-Investment.AlongsideTieto’sinternalinvestmentsinIoT,clientsciteitsabilitytoco-investinitsownini?a?vesasastrength.WithuncertaintysurroundingIoT,Tietoeasessomeofthisbylesseningtheburdenontheadop?ngfirm.Oneofthebestexamplesofthisisa10yearagreementthecompanysignedtocontributeitsownIPaspartofaprojecttobuildandenablearesiden?alapartmentcomplexthatwillserveasalivingIoTlab.

•  InnovaHonApproach.WhileTietobringsthetechnicalskills,enterpriseshighlighteditsandreadinesstobringinnova?onasapar?cularstrength.

•  GeographicCoverage.Whileitsfootprintisexpanding,unfortunatelythecompanyprimarilyservestheNordicregionandtoalesserdegreetherestofEurope.Thatisashameforthoselocatedoutsideasitcon?nuestobeatopnotchprovideracrosstherealmofDigital.

•  CostPressures.Withtheahen?onofOffshoreOutsourcersnowhavingturnedtowardEurope,Tietoandothersarefacingcostpressureindevelopmentthatisrequiringthemtolookforwaystoshiiresourcesaswell.Whilethiswillul?matelybenefitenterprisebuyers,itmayproveashorttermdistrac?on.

•  IOTEnablement.Tietomayneedtofurtherbuildoutcapabili?esinIoTEnablementasthismarketdevelopandclientslookforendtoendservicestomovebeyondproofsofconceptintofulldeployment.

BlueprintLeadingHighlights

•  StandardDeliveryModels•  InvestmentStrategy•  Collabora?onTechniques

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Unisys FocusedIoTsolu7onsbuiltaroundsecurityforthePublicSectorver7calarearealstrengthbutsotooisanaly7csforIoTHigh Performer

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~35withothersborrowedfromotherprac?ces.OrgStructure:Unisysdoesnotdiscloseitsorganiza?onalstructure.DeliveryCenters:•  10%Onsite•  20%Onshore•  70%Offshore(India)

UnisysdoesnotseparateIoTintoaseparateprac?cebutinsteaddeliversaspartofmul?pleservicelines.

TargetIndustries:Unisystargetsenterprisesinthe$1–3billionrevenuerange.•  Pharmaceu?cals,Federal,PublicSector,andRetail

RelevantRecentAcquisiHons•  N/APartnerships:•  Azure,AWS,Airwatch,andPureshare,and

MobileIron

•  UnisysStealth•  BDAasaService.UnisyshasarobustBig

Data&Analy?csplaeormthatithasextendedtoIoTenvironmentswithconnec?onstoawiderangeofdevicecommunica?onprotocols.

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  IoTSecurity.WithitsUnisysStealthtechnologythatisabletocloakanycommunica?onsbetweendevices,UnisyscanensureIoTenvironmentsremainsecure.Thismakesthemastrongchoiceforthoseengagementsweresecurityisabsolutelycri?cal.

•  BigData&AnalyHcsFocus.UnisyshasaproprietaryreferencearchitecturebuiltforbigdatacalledBDAasaServiceandextendedthisofferingintotheIoTenvironment.Thismakesitastrongchoiceforareaswithmassivevolumessuchasmedicalorretail–twoareasoffocus.

•  RemoteSupportCapabiliHes.IoTisoienanoffsitechallengeandmostserviceprovidersarelessequippedtoengagewithsuppor?ngfieldopera?onsinthesamewayitsupportacoreenterprise.Unisysisanexcep?onwithstrongcapabili?esinfieldmanagement.

•  StrengthGovernmentProvider.GivenUnisyslegacystrengthinUSFederalgovernmentanditscapabili?esaroundsecurity,bigdataandsupport,itisextremelywellsuitedforbriningIoTtolargescalecomplexareassuchasgovernmentsmayrequire–forini?a?veslikesmartstatesorsmartinfrastructure.

•  VerHcalCoverage.UnisysfocusedapproachtoIoTmeansmanyenterpriseswillnotfindthemopera?ngwithinitsspace.

•  SmallData.WhilemanyIoTchallengesarewellintherealmofBigData,manyothersarenotandthesemeansUnisysmaymisssomeopportuni?esun?litfurtherbuildsoutcapabili?esherealongsideBigData.

•  LimitedIndustryDepth.Evenwithintheindustriesitfocuses,Unisysbringslessdepthinbusinessunderstandingthansomeofitspeers.ThismayshiiitsIoTfocustoaques?onoftechnologicalenablementandawayfromprocesstransforma?on.

•  LackofIoTPracHce.IoTisdeliveredaspartofmul?pleservicelines.Thislackofadis?nctfocus,mayleaveitunderinvested.

BlueprintLeadingHighlights

•  Incorpora?onofCustomerFeedback

•  ProprietaryDeliveryModels•  IndustryExper?se•  FrameworksforNeedsAnalysis

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Virtusa BuildingascaledIoTprac7cesupportedbytestedandsecuredeliverywithbusinessconsul7ngaroundIoTthenextareatoscaleHigh Performer

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~1,540(ThisincludesconsultantsfromtheDigitalandInfrastructure.)OrgStructure:Virtusa'sIoTstrategyandevangelizingisledbyKar?kIyengar.Theexecu?onanddeliverycapabilityforIoTiswithinVirtusa'sDigitalPrac?cewhichisheadedbyFrankPalermo.DeliveryCenters:•  10%onsite•  10%nearshore•  80%offshore(India/SriLanka)

VirtusahassetupadedicatedIoTprac?cecalled“SMART”withinitsdigitalbusinessunit.ThegoaloftheSMARTteamistohelpitsindustryteamsengagewithclientstoeducate,envisionanddevelopIoTbasedsolu?ons.TheSMARTteamisdevelopingIoTsolu?onsand/orpointsofviewacrossallofitskeyver?calssuchasTelecom,HealthcareManufacturing,Retail,Media,FinancialServicesandInsurance.

TargetIndustries:VirtusatargetstheG2000butpar?cularlyin•  Healthcare,Telecommunica?ons,Insurance,Manufacturing,Transporta?on

RelevantRecentAcquisiHons•  Apparatus(2015)•  Agora(2015)Partnerships:•  IBM(BlueMix;Watson;Soilayer)•  Intel•  ThingWorx•  Exosite•  Libelium•  Glassbeam/Flutura/Splunk•  Conversica•  Jasper

•  Skylabwhichconsistsofvariouslayers:-  AnIoTFounda?on(leveragingVirtusa's

GTO,BPM,Digital&Infraprac?ces)-  MachineDataAnaly?cs(leveraging

Virtusa'sEIMprac?ce)-  Ar?ficialIntelligence(leveraging

Virtusa'sGTO&EIMprac?ce)-  Augmented/VirtualReality(leveraging

Virtusa'sCEM&Mobilityprac?ce)

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  StrongPartnershipEcosystem.VirtusahascreatedstrongsetofpartnershipstoaugmentitsownIoTcapabili?esasitacknowledgesthecomplexityofIoTandhowthemarketcanbestbeserved.SowhileitmaynotbringthedepthofskillsacrosseveryelementofIoT,itcantaptheseforaclientandlikelygetevengreatercapabili?esthanifitahemptedtodoitallonitsown.

•  Delivery.Ratherthanrecrea?nganIoTspecificdeliveryorganiza?on,Virtusaleveragesthebreadthanddepthofcapabili?esithasacrosstheorganiza?on.Thisallowsittoflexupanddownmorequicklydependingonthespecificsofeachengagementwhilenotcrea?ngaconflictofneedingtomovecertainskillsoffitsbench.

•  RapidIOTPrototypingwithSkylab.WhileIoTiss?llanascentopportunityforVirtusaithasputtogetherastrongpartnernetwork,referencearchitecturesandvirtuallabenvironmentthatprovidesrapidprototypingofIoTandAIusecases.

•  LimitedIndustryExperHse.WhileVirtusabringssolidtechnicalcapabili?es,itismorelimitedinthedepthofindustryexper?se.ThismeansitmakesforagoodpartnerinbuildingIoTsolu?onsbutmayrequireextrainputontheexplora?onanddesignside.WesawpromisingsidesofVirtusabuildingoutindustryIoTsolu?onsinhealthcare,insuranceandtelecomthatshouldbefurtherenhancedinto2016.

•  IOTEnablement.Virtusamayneedtofurtherbuildoutcapabili?esinIoTEnablementasthismarketdevelopandclientslookforendtoendservicestomovebeyondproofsofconceptintofulldeployment.

BlueprintLeadingHighlights

•  StrengthofVisionForIoT•  PartnershipEcosystem•  Crea?onofProprietary

Frameworks

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IGATE DeliveringclientfocusedIoTsolu7onslinkedtokeyclientbusinessneeds

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~45OrgStructure:IoTPrac?ceisbeingincubatedbyResearch&Innova?ongroup.Thisisoneofseveralhorizontalbusinessunits.IGATEalsooperatesver?calbusinessunits,aProduct&EngineeringServicesgroup,andaDigital&Cloudprac?cethatalsosupportIoT.DeliveryCenters:•  20%Onshore(US18%,UK2%)•  80%Offshore(India)

IGATE’SIoTprac?ceco-ordinatesservicedeliverythroughresourcespooledfromexis?ngbusinessunitsacrossengineering,tes?ng,Digital,BI,Analy?cs,etc.Salessupportisprovidedbythreedifferentsalesgroups:Ver?cal-centricSales,Product&EngineeringSalesandDigitalPrac?ceSales.

TargetIndustries:

Targetsenterpriseswith$1B+revenues•  Retail,Manufacturing,Mediaand

Entertainment,Mining,Energy&U?lity,Banking,Insurance,Automo?veElectronics,ConsumerElectronics,IndustrialAutoma?on,MedicalElectronics

RelevantRecentAcquisiHons•  N/APartnerships:•  PlaeormVendors:PTC-Axeda&ThingWorx

SoiwareAG(Apama),andMicrosoiSQL•  Innova?veSolu?ons:indoo.rs•  AppliedResearch:UCLA,Georgetown

University,ESADE

•  ICAT:IntelligentContextAwareThingsframework

•  ICAN:IntelligentContext-awareNaviga?on(usingBLEBeacons,Wi-FiAccessPoints,Indoo.rssoiware)

•  IAUTOPULSE:Predic?veAnaly?csSolu?onforautoindustrytoreducewarrantycosts,improveup?me,andavoidcatastrophicfailures.

•  IGATEWellnessPlaeorm

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  WillingToinvestTimeAndMoneyinPoCs.IGATEhaspar?cipatedintheearlystagesofsomeveryinteres?ngtrialswithclientsasitviewsIoTasanareaofinvestmenttoday.Sowhileitmaynothavealonglistofreferenceaccountswhereitcandemonstratecomple?on,itbringsanunderstandingoftheissuesandchallengeswithinembracingIoTtoday.

•  IncubaHngIoTAsCrossCompanyIniHaHve.ByformingitsIoTprac?cewithinResearch&Innova?onratherthanapar?culargo-to-marketbusinessunit,IGATEisabletoscalefastandexplorethemostappropriateresourcemixalongthewaywithoutbeinglockedintochallengesofmanagingabenchthatmightbeweightedtowardonepar?cularskillset.

•  DemonstraHngItselfAsAStrategicPartner.WhilemuchoftheIoTworkIGATEperformsforclientstodayismorealongthelinesofstaffaugmenta?onthanprojectlead,muchoftheworkisofthemoststrategicnaturefortheclient.ThisisgivingthemvaluableexposuretohowIoTisbeingu?lizedtotransformbusinessestoday.

•  WillingnessToInvestInProprietaryPlajorms.IGATEisdevelopinganumberofhorizontalandindustryspecificIoTplaeorms,produc?zingIoTservices.

•  Focus.WhileclientscitedIGATEasastronginambi?onandinterestaroundIoTitwasalsocitedthemaswillingtotackleareasthatwereperhapsnotinitscoreareaofexper?seandthisleithemlearningalongtheway.

•  CapgeminiIntegraHon.WhilelihleisbeingcommunicatedexternallyregardingCapgemini’sintegra?onofIGATE,itisfairtoexpectatleastsomelevelofdisrup?onastwolargeITserviceprovidersmerge.

•  VerHcalIndustryExperHse.WhileIGATEoperatesacrossabroadrangeofindustries,itdoesnotbringthedepthofbusinessunderstandingtothesethatsomeotherserviceprovidersbring.Thismeansthereconversa?onsandengagementaroundIoTmaybemoreofatechnicalnature.However,thismightchangeastheCapgeminiacquisi?onprogresses.

BlueprintLeadingHighlights

•  Incorpora?onofCustomerFeedback

•  PartnershipEcosystem

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Luxoft Masterlevelengineeringskillscombinedwithver7calfocusdelivervalueformarqueeIoTclients

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~N/AOrgStructure:MichaelMinkevich,VPforTechnologyServicesreportstotheCEO,DmitryLoschinin.MichaelisresponsibleforEnergy,Technology,andTelecommunica?onsver?calsandtheIoTandBigDataprac?ceasitrelatestotheRadiusacquisi?on.AndersBrown,formerPresidentofRadiusGroupisMDforIoTbasedinSeahle.DeliveryCenters:•  Onshore(US)•  Offshore(Ukraine;Germany;Poland;Bulgaria;Romania,RussiaandVietnam)

IoTisahorizontalprac?cesupportedbyCoEsonmobile,bigdata,agile,security,andotherswhichisledbyMD,AndersBrown.

TargetIndustries:

LuxoitargetstheGlobal2000•  automo?ve,aerospace,telecommunica?ons,oilandgas,hi-technology,precisionagriculture/manufacturing,andretail.

RelevantRecentAcquisiHons•  RadiusGroup(2014)Partnerships:•  MicrosoiAzure,Cloudera,Mashery,Intel,

AmazonWebServices,HortonWorks,Informa?ca,Jasper,Google,Splunk,Esri,andATT.

•  RetailEngagementSuite•  IoTBigDataSimulator•  Horizon(visualiza?onplaeorm)

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  ExperiencedTechnologyTalent.Luxoibringsaveryhighpercentageofadvanceddegreestothemajorityofitsengagements.Itsdeliverycentersarefilledwithseniordeveloperswithfiveormoreyearsofexperiencenotfreshersthatarelearningoneveryjob.Thismakesthemaleadingchoicewhenacomplexsolu?on,suchastelema?cs,isbeingtackled.

•  Deep(Focused)IndustryUnderstanding.WhileLuxoitargetsanarrowersetofindustrieswithIoTthanotherserviceproviders,itservesthoseonesquitewellbasedonclientfeedbackandcanbringastrongunderstandingofunderlyingbusinessandtechnologychallengesinindustriessuchasautomo?ve,aerospaceoragriculture.

•  LowDeliveryTurnover.Luxoifacesmuchlowerratesofahri?onthanmanyotherITservicesfirmsandthismeansconsistentstaffonprojectsfromyeartoyear.ItalsomeansLuxoigrowsalongsideclientsandevolveswiththemasprojectschangeandmaturefrommerelydigi?zingprocessestoanalyzingthemandcrea?ngnewones.

•  ProjectIndependence.SomeenterprisebuyersfeltthatLuxoialloweddailyprojectstafftohavetoomuchdiscre?onwhenitcametomaintainingthecorerela?onshipanddeliveryresponsibility.

•  NotAnOrderTaker.Luxoibringsskilledandexperiencestafftoeveryprojectandthismeansthestaffmayhaveseenasimilarchallengebeforeandhavepreconceivedno?onsashowitmightbestbeapproached.Ifanenterprisebuyerislookingforaserviceprovidertocarryoutwhatisaskedwithoutgivingitmuchthought,Luxoimightnotbetherightchoice.

BlueprintLeadingHighlights

•  PartnershipEcosystem•  StrengthofIoTVision•  IndustryExper?se

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NIIT Technologies Pragma7cdeveloperswithakeensenseofthebusinessproblemsthatcanbeaddressedbyIoTinfocusindustryver7cals

BusinessOverview GoToMarket RelevantAcquisiHons/Partnerships ProprietaryTechnologies/Plajorms

Self-declaredFTEs~110OrgStructure:NIITTech’sIoTeffortsfallwithinitsDigitalServicesPoreoliounderaGlobalHeadwhoreportstotheCOO.DeliveryCenters:•  10%Onshore(US)•  90%Offshore(India)

NIITTechdoesnotyethaveaseparateIoTprac?ceareabutinsteaddeliverstheseservicesaspartofitsDigitalExperienceprac?cewhichincludesAnaly?cs,CloudandDigitalIntegra?on.

TargetIndustries:NIITtargetsenterprisesinthe$1B-$5Brange.•  Groundtransporta?on,airlines,insurance,manufacturing(APAC),cargogroundhandling/logis?cs

RelevantRecentAcquisiHons•  IncessantTechnologies(2014)Partnerships:•  2smallstartups(proprietarytech)•  ESRI(GeoEventExtension)

•  TechnologyIncuba?onServices•  IoTTes?ng•  IoTAnaly?cs

IoTServicesOfferingMaturity:

IoTConsulHng

IoTEnablement

IoTConnecHvity

IoTIntegraHon

IoTManagement

Strengths Challenges

•  FocusInTravel&Insurance.Whilemostserviceprovidersreadilytargetabroadrangeofindustries,NIITtechnologiesisveryfocusedonIoTsolu?onsmainlyinthetravelandinsuranceindustriestoday.

•  IoT-SpecificLabs.SeeingtheneedtoexperimentandinvestinIoT,NIITTechsetuplabsinBangaloreandDelhi.SeekingtodevelopPoC’sforexis?ngandpoten?alclientsratherthanwaitforenquirestoemerge.NIITTechalsoprovidesIoT-ledinnova?onasaservicetoitsclientsunderincuba?onofferings.

•  PragmaHcApproach.NIITTechlooksforsolu?onsthatcanbereadilyimplementedratherthanonesthatarethemostsophis?catedindesign.e.g.Whentaskedwithexpedi?ngtheiden?fica?onandclassifica?onofhazardouscargoforanairportterminal,itdevelopedimageprocessingalgorithmsthatcouldfunc?onofstandards?ckersissuedgloballyratherthanrelyingonanewtaggingsystemthatwouldtakeamassiveefforttoadopt.

•  LearningCulture.RatherthanassumingIthasallbeenseenbefore,NIITTechapproacheseveryprojectwithopenearsandanopenmindtotryandsolveaclient’suniqueproblemsinthebestwayeach?mewhilemaintainingaflexibleapproachtosolvingchallengesthatarise.

•  UI/UXDesign.EnterprisebuyersreportNIITTechdesigncapabili?estendtoberathertemplateandnotstrongonthecrea?vesidebutalsoreportseeingimprovementsbeingmade.

•  IndustryCoverage.WhileclientswithinTravel,InsuranceandManufacturingwillbepleasedwithNIITTech’sIoTcapabili?es,clientsoutsidetheseareasmyneedneedtolookelsewhereforastrongpartnertodaywiththeexcep?onofFinancialServicesbutthatisanareanotseeingmuchIoTini?a?vesatthis?me.

•  ExecuHonOverInnovaHon.WhileNIITTechbringsgreatstrengthinexecu?onandawillingnesstoworkextremelyhard,itdoesnotalwaysapproachproblemswithcrea?vityandthatputsmoreinnova?onontheclient’sshouldersat?mes.

•  Scale.CurrentlyIoTiss?llnascentforNIITTechwithlessthan10engagementssofar.

BlueprintLeadingHighlights

•  HowServiceProvidersIncorporateCustomerFeedback

•  Collabora?onTechniques•  IndustryExper?se

Market-Wrap and Recommendations

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Where Next For IoT Services Weseethefollowingasthemajortrendsthatwillfosterthefutureevolu?onofIoTServicesoverthenext2-3years:

n  MoreandmoreServiceProviderswillcon?nuetopushintothemarketasahandfulofinnova?veusecasescreateaspikeinahen?ontoIoT

n  ThemarketwillremainpoorlydefinedassomeServiceProvidersrebadgeAnaly?cs,Mobile,orCloudprac?cesasIoTServiceswhileotherscreatestandaloneprac?ces–someofwhicharenarrowandsomeofwhicharebroad.

n  SystemsThinkingbecomesahotbedofahen?onasthecomplexitythatIoTunleasheswillincreasinglynecessitateamethodologicalprocessdrivensolu?on.

n  Industryinsightandexper?sewillgivewaytothoseofferinginsightbasedonthemesofac?vity(Home,Auto,Building,City,etc.)

n  Learningtopartnerwellbecomesanecessaryskill.Leadershipwillbedefinedbythoseserviceprovidersthatcaneffec?velycoordinatethislayerofexternalcomplexity.

n  Crea?ngdatalakesands?tchingtogetherAPIswillcon?nuebethebulkofintegra?onworkwhileanaly?csandprocessexper?sebecometheareasofcompe??vevalueadd.

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Hfs Expects to See Even Greater Adoption of the Ideals of As-a-Service by IoT Service Providers by 2017

IDEAL AS-A-SERVICEIDEALDEFINITION

NONEXISTENT INITIAL EXPANSIVE EXTENSIVE ALL

PERVASIVE

DesignThinking

Genera?ngcrea?vesolu?onsbyunderstandingthebusinesscontext 2015 2017

BusinessCloud

“PlugandPlay”businessservices2015 2017

IntelligentAutomaHon

Blendingofautoma?on,analy?csandtalent 2015 2017

ProacHveIntelligence

Opera?onsfocusedoninterpre?ngdata,seedingnewideas 2015

2017

IntelligentData

Real-?meappliedanaly?csmodels,techniques,andinsightsfrombigdata

2015 2017

WriteOffLegacy

Useofplaeorm-basedservicesmakesmanytechinvestmentsredundant

2015 2017

BrokersofCapability

Governancestaffmanagetowardsbusiness-drivenoutcomes 2015 2017

IntelligentEngagement

Pricingandrela?onshipsbasedonexper?se,outcomesandsubscrip?ons

2015 2017

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Systems Thinking – a.k.a. How to Approach IoT

Aformalapplica?onofSystemsThinkingdrivesonetoanunderstandingofapar?cularset of outcomes that goes well beyond observing an event and understanding itsunderlying trends. SystemsThinkinghelpsonegraspandmeasure the relevant inputsthatdriveanoutcomeandinturnallowsonetoahempttoimproveafutureoutcomebycontrollingthecri?calsourcesof influencewhilenot inadvertentlymaking itworsebyignoringoradverselyaffec?ngunforeseeninfluences.IntherealmofIoT,itisoneofthebestapproachesHfSknowsofforbringingmeaningtotheprimordialchaosthattheprocessofdigi?zingeverythingcreates.

“SystemsThinkingistheartandscienceofmakingreliableinferencesaboutbehaviorbydevelopinganincreasinglydeepunderstandingofunderlyingstructure.”

–BarryRichmond

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2015-16 Recommendations: Enterprise Buyers

n  DemandCo-InnovaHonandExperimentaHon.AsnearlyeveryServicesProviderbuildsoutitsownporeolioofIoTengagements,enterprisebuyersareinastrongposi?ontodemandthatserviceprovidersputsomeenergyandinvestmentintobuildingoutskills.Ifaproviderisunwillingtodoso,itislikelynotcommihedtothespaceandinsteadofbeingthepartneryourequiretonavigatetheemergenceofIoT.

n  BeSuretoKeepSecurityandRiskFrontandCenter.Securityneedstobeoneofthetopconsidera?onsateverystepoftheway.Theprimaryreasonisthatasprojectssplinterthereisanincreasedriskofthecrea?onofaccesspointsthatareinnocuoustoonesetofconcernsbutcatastrophictoanother.Enterprisesareadvisedtotasksomeonewithexaminingeveryandallimplica?onsofIoTacrosstheen?refirm.

n  StayCalm,MostIoTAcHvityRemainsasaPoC.Despitetheincreasedahen?onandhypearoundIoTtoday,thebulkofac?vityformostenterprisesremainsintherealmofaPoC.Thepoten?alforstrategicimpactmightbeiden?fiedbutwithonlyafewexcep?onsmostaretes?ngthewatersastohowitwilllikelyunfold.Further,withthetechnologycomponentoientheeasiestpiece,thoseenterprisesthatwillneedtoplaycatchupcanlikelydosoafastpace.ThereisnoneedtopanictodaywhenitcomestoIoT.

n  PickYourIniHaHvesWithCare.AsitremainsearlydaysinIoT,enterprisebuyersareadvisedtoapproachthemarketwithcau?onevenifbeingaggressiveappearstobepossibleatlihlecost.AddingsensorsandgatheringdataisoientheeasiestaspectofIoT.Evencrea?ngdatarepositoriesthatcancapturethisnewinsightisstraigheorwardandcanbeleveragedacrossthefirm.TherealchallengesforIoTwillcomewithprocesschangeandthisneedsbroaderacceptanceandalevelofenergythatmightnotariseifdozensofdifferentexperimentsareunderway.Lessismorewhenitcomestoadop?ngIoT.

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Shared Strategic Challenges for IoT Service Providers

n  WhatOperaHngApproachShouldbeUHlizedtoServeIoT?Serviceprovidersaredeployingabroadrangeofopera?ngmodelstodevelopofferingsinIoT.Somearetakingtheapproachofincuba?onandleveragingskillsetsfoundinexis?ngprac?ceareas.Othershaveiden?fiedIoTasstrategicandareinves?ngincrea?ngdedicatedprac?ces.Thereisnosinglesolu?onthatwinsouttodaysoserviceprovidersneedtorecognizethestrengthsandweaknessesofeachandbeflexibleinrespondingtowhatisrequired.

n  ShouldIoTServicesFocusExclusivelyonAssetOpHmizaHonorGoBeyond?Today’sopportuni?esinIoTareclearlyfoundintherealmofassetop?miza?onandespeciallyasthecostofthoseindividualunderlyingassetsrise.Butbroaderapplica?onsofIoTholdthepromiseofnotjustrunningabusinessbeherbutrunningitdifferentlyandlikelyindisrup?veways.Serviceprovidersneedtobalancemarketdemandtodaywiththeno?onthattomorrow’sdemandmaybeinamuchdifferentrealm.

n  HowFastandAggressivetoInvestinIoT?Notonlyisthedirec?onofIoTuncertainbutthepaceofenterpriseadop?onaroundIoThasyettogenerateenoughsamplepointsforclaritytohaveemerged.Thisputscon?nuedpressureonserviceproviderstokeepacloseeyeonthemarketandmakesurethepaceofinvestmentsarealigned.

n  WillProductEngineeringandSensorDevelopmentEmergeasaKeyOffering?Whilesomeserviceprovidersaregainingsignificantahen?onaroundIoTcapabili?esbyhighligh?ngnon-tradi?onalareasofITservicessuchasdeviceengineeringandsensordeploymentordesign,itisnotclearwhetherthesecapabili?eswillbecri?caltoservicethemarketinthecomingyears.Tradi?onalSIshavealwaysreliedonspecializedpartnerstomeetcertainnewneedsanditislikelymanywillsuccessfullydothesamewithregardtoIoT.

n  WhatistheBestPlajormApproach?Inasimilarvein,itisunclearwhetherITserviceproviderswillbenefitfromhavinganIoTplaeormtodeploy.Conversely,suchanofferingmightevenbecomeadetrimentasitseentocreateaconflictandtodiminishanyahemptsatofferingbestofbreedsolu?ons.Yetinthenearterm,havingaplaeormmightallowonetomovequicklyfromPoCsintobroaderdeployments.

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2015-16 Recommendations: Service Providers

n  Don’tExpectLeverageDuringEarlyDays.Withalltheahen?ondirectedtoAs-a-Serviceprovisioning,itwouldbeexpectedforServiceProviderstoforeseethemselvesasplaeormprovidersintherealmofIoT.ButlikeotherpocketsofenterpriseITdemandwheretheunderlyingneedisseenasstrategic,fewwillbewillingtosehleforan‘off-the-shelf’solu?onorallowaserviceprovidertoreusesignificantpiecesofIPtoserveacompe?torwithasimilarneed.Rightorwrong,thebulkofworkinIoTwillbebespokeandserviceprovidersareadvisedtogotomarketexpec?ngthis.

n  BuildOutSystemsThinkingSkills.HfSmadeandcon?nuestomakeapusharoundtheneedforServiceProviderstobulkuponDesignThinkingandwewillcon?nuetodosointhecomingyears.However,forthosetarge?ngIoT,amoresystema?capproachisrequired.“SystemsThinking”isaformalapproachtodetermining,measuringandbuildingintoanymodeltheimpactfrommul?plevariablesinordertodeterminewhythingshappennotmerelywhatishappening.

n  LearntoPartnerWell.ThecomplexityinwhichIoTnotjustenablesbutdemandswillrequirethattradi?onalcompe?torsregularlycooperate.Connectedhomes,cars,ci?es,andenergyallimpliesamixofdataprovidersandbeneficiariesthatwillallhavevaryingdegreesofinterestandneeds.Serviceprovidersthatcanmanagethiscomplexityandbringabroadmixofpar?cipantsnottothetablebutkeepthemengagedwillposi?onthemselvesextremelywellinthecomingyears.

n  LooktoCrossInternalSilosWell.IoTisnotonlyanopportunitythatrequiresheightenedcollabora?onoutsideaserviceproviderswallsbutperhapsmoreimportantinternallyaswell.MosteveryIoTengagementbyaglobalSIwillneedtotaparangeofskillssuchasbigdataandanaly?cs,cloud,mobility,engineering,aswellasstrategyandprocesschange,mostServiceProvidersarenotsetupwelltoworkacrossthesedisparateprac?cesbutthatwillberequiredtoexcelinIoT.

About the Author

©2015HfSResearchLtd. Proprietary│Page54

Charles Sutherland ChiefResearchOfficer,HfSResearch–Dallas,TX

Overview•  OverseestheresearchagendaandtheanalystteamforHfSacrossthe“As-a-Service

Economy”.•  Personallycoverstheareasofdigitalservices,intelligentautoma?onandbusiness

plaeormsaswellasthesupplychainandprocurementbusinessfunc?ons.•  Overa25+yearcareerhasfocusedonhispersonalskillsinauthoringthought

leadership,developingimplementablestrategies,execu?ngonacquisi?ons,drivingbusinessdevelopmenteffortsandmanaginglongterminvestmentplanning.

•  SincejoiningHfSin2013,CharlesspokenwidelyatindustryforumsincludingNASSCOM,ABSLandSIGandhashadhisresearchcoveredwidelyinthebusinessandoutsourcingpress.

PreviousExperience•  Charleshasbeeninthebusinessservicesmarketfor20years.Previousrolesinclude:

-  Growth&StrategyMDforAccenture’smul?-billiondollarOpera?onsGrowthPlaeorm

-  ChiefStrategyOfficerfora$500MBPOServiceProvider-  Growth&StrategyforApplica?onandInfrastructureOutsourcing,Accenture-  Growth&StrategyforCommunica?ons,MediaandHighTechOG,Accenture-  Media&EntertainmentStrategyConsultant,Accenture-  Marke?ngDirector,Olivep

EducaHon•  MBAfromINSEADinFontainebleau,France•  HonorsBAinEconomicsandPoli?calSciencefromtheUniversityofToronto

[email protected]

©2015HfSResearchLtd. Proprietary│Page55

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