5 phases of IoT: a market maturity model for the new connected device economyALTERNATE TITLE: What shoes and pigeons can teach us about slaying IoT dragons

Mark Benson, CTO @exositeIoT Fuse, 19 March 2015

The IoT opportunityRecent Economist survey:

Expect their company to be using IoT within 3 years

“IoT is our single biggest threat AND biggest

opportunity over the next 10 years” – Brand-name fortune

500 board of directors*Source:ABIResearch,Cisco,CraigHallum Estimates

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$0

$50

$100

$150

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Devices

Billion

s

MarketS

izeBillion

s BigDataAnalytics(53%CAGR)

ConnectedDevicePlatforms(33%CAGR)

Platforms(33%CAGR)

ApplicationEnablementPlatforms(32%CAGR)

ValueAddedServices(26%CAGR)

SystemIntegrationServices(24%CAGR)

Hardware(23%CAGR)

Connectivity(12%CAGR)

Internet-connecteddevices(CiscoEstimate)

95%

The micro-vertical challenge of IoT

7 billioncell phone subscriptions

50 billionconnected devices by 2020

(Many devices of a few types)

(Few devices of many types)

HEREBEDRAGONS

(20%)

(80%)

IoT is complicated(and fragmented, and requires new business models, and disrupts industries, and introduces new security threats, and involves resource-constrained devices, and generates lots and lots of data, and uses new sensor technology, and opens up new use cases, and runs on unreliable networks, and uses a variety of network equipment, and is difficult to service, and creates new legal liabilities, etc., etc.)

With all this complexity, it’s easy to lose track of the goal

Successful IoT products have

PURPOSEas opposed to being merely

solutions looking for problems

5 phases of industry maturity

Maturity Levels Shoemaking PigeonRacing Internet ofThings

1.Ad-hoc Cottageindustry Domestication Customizedprojects

2.Repeatable Guildsandapprenticeships Pigeonposts(RFC1149) Dataplatformproducts

3.Defined Formalized training Pigeonracing Verticalindustrysolutions

4.Measured Massproduction Advancedtimingsystems Inherentcloudconnectivity

5.Optimizing Marketinganalytics Selectivebreeding Standardizedaccess

Criticalmaturitymilestones

The micro-vertical opportunity of IoT

HEREBEVICTORY!

(20%)

(80%)

The multi-headed dragon we must slay to unlock the long tail of IoT:1. Solutions looking for problems2. Fragmented interoperability standards3. Unsophisticated end-point security4. Legacy business models

The IoT movement needs purpose-seeking dragon slayers• Thought leaders• Security architects• Business model innovators• Trusted advisors and consultants• Software designers and developers• Technologists that can design and develop on multiple layers• Entrepreneurs that develop technologies to make IoT easier

The journey is just getting started

Thank youmarkbenson@exosite.com@markbenson