The Complete Guide to the Internet of Things

If you like this presentation – show it...

Slide 0

The Complete Guide to the Internet of Things Industry Overview Baiyin Zhou & Peter McCall OpenView Venture Partners 2/8/2015

Slide 1

Defining IOT

Slide 2

Internet of things has its origins in machine-to-machine (M2M) communication

Slide 3

IoT is made up of a system of connected nodes and devices

Slide 4

“I could be wrong, but I'm fairly sure the phrase ‘Internet of Things’ started life as the title of a presentation I made at Procter & Gamble in 1999.” Kevin Ashton

Slide 5

RFID and sensor technology enable computers to observe, identify and understand the world – without the limitations of human-entered data.” “If we had computers that knew everything there was to know about things – using data they gathered without any help from us – we would be able to track and count everything… We need to empower computers with their own means of gathering information.” Kevin Ashton

Slide 6

DEFINING IOT A system where items in the physical world, and sensors within or attached to these items, are connected to the Internet via wireless and wired connections. The network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment.

Slide 7

There are three layers of IoT that interact with each other to gather, process and deliver. Sensor Layer Network Layer Application Layer Objective: collect information Objective: transmit and process information Objective: deliver information to users Collection RFID Sensors Actuators Power supply Registration Provisioning Asset mgmt. Identity Security Devices Device Mgmt. Output Platforms Visualization Automation Event processing Monitoring Diagnostics Logistics Vertically-focused apps Applications Connectivity M2M Input network Node processing Output network Authen-tication Identity mgmt. Privacy Networking Security Processing Aggregation Integration Analytics App development Storage App Management App Analytics Platform

Slide 8

Click to Subscribe

Slide 9

Industry Overview

Slide 10

Source: “Gartner's 2014 Hype Cycle for Emerging Technologies,” Gartner Gartner calls IoT the most overhyped technology of 2014

Slide 11

There is an IoT standards war Source: “What the Internet of Things (IoT) Needs to Become a Reality”, Freescale Semiconductor and ARM

Slide 12

Major corporations are organizing based on different standards

Slide 13

Growth in IoT is being driven by a number of factors Decreasing price of sensors and processing due to massive competition among manufacturers More devices being connected Opportunities for cost savings, automation, greater visibility into industrial processes, and increased productivity Adoption of simple consumer devices like fitness trackers and thermostats More data being produced Greater need for solutions to deal with this data More people getting used to the idea of internet-connected devices

Slide 14

Many companies have tried to estimate the 2020 market size $3.04 trillion 30 billion actual devices 212 billion possible devices $1.9 trillion 26 billion devices 50 billion devices 50 billion devices $2.7 trillion Source: Company whitepapers and press releases $1.9 trillion 28 billion devices

Slide 15

People disagree on exact growth, but most agree the number of connected devices is going to be very large Sources: IHS, IDC

Slide 16

Click to Subscribe

Slide 17

Several areas within IoT are currently trending within the consumer market Hardware Wearables Home Automation / Smart Building Platforms Picture by mystuart

Slide 18

Additionally, the IoT has the potential to help businesses in a number of ways… Cost savings Increased process efficiency by identifying problem areas Better insight into the physical environment Improved customer experience and service Greater transparency and control over assets

Slide 19

…but also raises a host of new problems to be solved Privacy and security Data integration Standards Authentication and identity management Device management Scalability Powering devices

Slide 20

Today, enterprises primarily deploy IoT solutions to save money Source: “The Internet of Things Ecosystem: Unlocking the Business Value of Connected Devices”, Deloitte

Slide 21

Growth in venture funding has sustained in IoT over the last four years Source: CB Insights

Slide 22

~70% of IoT funding rounds from 2011-2013 were related to wearable technology Source: CB Insights

Slide 23

Notable IoT companies have received significant venture capital funding $205M total funding $93M total funding $65M total funding $144M total funding $3.2B valuation (at acquisition)

Slide 24

Accelerators and incubators are also cropping up to help start new IoT companies

Slide 25

IoT company exits have grown ~36% YoY since 2010 Source: CB Insights

Slide 26

Notable exits $200M $100M $2B $3.2B $555M $175M $170M $112M $107M ~$500M IPO $780M

Slide 27

Strategic interest in IoT ranges from traditional software companies to hardware companies looking to broaden their reach, and serves as partnership opportunities for IoT companies

Slide 28

Click to Subscribe