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Recapday4

1

Looking at the shiny new toys on display, it’s easy to think that mobile innovation and the IoT will flower first in the US and Europe. Yeah, maybe not so much. Developed market consumers are bound by legacy devices and infrastructures. It’s expensive to upgrade your smartphone, especially when you just dropped the last one in the toilet, not that has ever happened to us. The cost of upgrading technology (like when that stupid “put it in a jar of rice” thing didn’t work and you had to buy an out-of-date replacement) might mean you wait for the next generation of smartphones. Legacy tech isn’t the only problem. Set data plans and the paucity of network interoperability increases market viscosity. The emerging markets are free of those issues. But investment in systems without a consumer population sufficiently wealthy to buy promotes telco worry lines. Brand partnerships can help make the cost rational. IBM has brought Watson to African nations because they believe the next decade will see a state-of-the-art Africa.

bound and unbound

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2

Endpoints and gateways form the architecture taking shape around our mobile phones, connected devices and smarter living environments. Endpoints are the sensors built into our connected devices. They collect data but don’t do anything else with it. Your smart fridge or washing machine can optimize and reorient based on usage, but it’s highly unlikely that these endpoint sensors will ever talk to the cloud themselves. And the reason for this is security. Do you really want a device that arrives in your household only to start streaming data? Instead, we’ll rely on gateways within our homes or personal ecosystems. These bridges are small servers that will collect the stream of data, do a fair amount of local processing, and then securely transfer it to the cloud. We’ll depend on gateways to bring the benefits of an interconnected ecosystem to us, and so will those brands and partners who want to have a role in shaping what our environment will be.

Endpoints and GatEways

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Those gateways can’t come soon enough. Sensors produce torrents of data, but so far we have only our mobile phones to make sense of our connected devices. 3G, LTE, and, one day, 5G mean better speed and a concomitant increase in data consumption. This is not all great news. The same kind of big data challenges facing brands will soon hit consumers, too. If a trained statistician is poleaxed by the amount of data following at him, just imagine the paralysis that will overtake consumers. They’ll just stop caring. Raw data is like raw meat—it can make you sick. The participants in the data ecosystem—gateways, networks, brands, and device manufacturers—need to cook up bandwidth-efficient solutions for consumers. Processed information—not raw data—will get shot up to the cloud where rational experience and can be fused into the process. Consumers get utility while brands and other ecosystem members get insights, actions and ongoing optimization.

#biG data problEms

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4

The clouds are rolling in, and they’re bringing confusion with them. Here are the three things to keep in mind. What’s the right cloud architecture? Hybrid cloud—part public and part private. In the cloud world, a stand-alone silo isn’t a safe place to store things; it’s a pipe bomb for your business. You’ll want to be ready when inevitable changes occur and need to access another platform or service. How do you manage data? You need to manage it as if it were on-site. Keep security at the top of your mind since consumer trust is paramount. And if your data is global, be prepared for the many different local rules and regulations governing personal data collection and use. Can cloud help me reinvent my business? Absolutely. The cloud isn’t just a new type of software. It is the platform on which an API economy will be built. Cloud will give you the ability to make any offering into a service that can be tapped into from anywhere.

cloudy with a chancE of EnGaGEmEnt

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Facebook’s Mark Zuckerberg said that the purchase of Whatsapp was a good deal—even at close to $20 billion. “Few services in the world can reach one billion, and they are all valuable.” But can they become profitable, too? That’s still undecided when it comes to mobile messaging applications. According to Juniper Research, instant messaging apps account for 75% of mobile messaging traffic (63 trillion messages) but only 2% of the revenue—around $3 billion. Still, it may be that mobile messaging apps are such effective trojan horses for more profitable services, that their own contribution is irrelevant. Should we look more broadly still? Digital reach is crucial not just for an individual company but for the entire global economy. The World Bank noted that the economies of low- and middle-income countries grows by a little over 1% for every 10% increase in broadband reach. People without digital access fall behind, and when they do, we all do as well. Maybe anything that can increase digital reach is a bargain, no matter what it costs.

cool, but don’t forGEt profit

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