Month: April 2016

the cost of fixing technical problems and making repairs to devices estimated 10-33% of operational expense for industrial IoT deployments

BREAKING DOWN OPERATIONAL EXPENSES FOR INDUSTRIAL IoT DEPLOYMENTS: Jasper, which provides a software platform for connecting and managing IoT devices and was recently acquired by Cisco, released a study this week breaking down operational expenses for industrial IoT deployments, and explaining how companies can save on those expenses.

The cost of operating IoT devices can vary widely for enterprises depending on a multitude of factors including the type of devices, the type of internet connection it uses, and where it is deployed. This makes it difficult for enterprises to estimate the full cost of deploying IoT devices and their ROI on IoT initiatives.

The study grouped operational expenses into three categories:

  • Network communication: This is the cost of providing a data connection for the devices. Jasper estimated that this usually makes up one-third to one-half of the operational expenses for industrial IoT deployments.
  • Administrative labor: This is the cost of managing and monitoring devices, and creating reports from their data. This makes up anywhere from 20-50% of the total operational costs of IoT initiatives, the study found. 
  • Technical support: This is the cost of fixing technical problems and making repairs to devices in the field. Jasper estimated this makes up 10-33% of operational expense for industrial IoT deployments.

Companies can reduce these expenses with certain solutions and strategies. For example, if a company’s data usage for its IoT deployments fluctuates monthly, it can opt to pay its data subscription on a per megabyte basis instead of paying the same amount every month.

The study also found large disparities in costs for devices depending on whether they were connected to a software services platform. The study estimated that administrative costs per 100,000 connected devices dropped from $2 million per year to $800,000 per year if they’re connected to a platform. Jasper is one of the major providers of such platforms, so the finding is certainly helpful for its business. However, if platform providers can provide such steep cost reductions for their enterprise clients, then it could be a major boon for enterprise IoT adoption.

The Next Wave Of Brand Engagement

From a marketing perspective, the Internet of Things is really about engagement.
New connections among billions of objects will provide new methods and opportunities to connect with consumers.
It’s not so much about the technology involved, or what I view as the IoT plumbing, as much as it is about what can happen when so many connections are in place.
And now a new report is out suggesting that brands should look beyond the technology and understand that the intersection of mobile and IoT will drive the next wave of brand engagement.
We heard bits and pieces of this idea at the MediaPost OMMA Boston conference this week.
Forrester Research has taken a deep dive into the subject in a new study, ‘The Internet of Things Redefines Brand Engagement,’ which is based on a survey of 4,600 U.S. adults, weighted to reflect the general population.
The IoT brings several capabilities for marketers, including being able to listen to customers to analyze real behaviors, create more frequent  and intimate consumer interactions, differentiate customer experiences and build new offerings and business models, according to Forrester.
There still are short-term challenges, including the lack of mass reach due to niche consumer adoption and single-purpose applications being too limited, with abandonment but a click away.
For example, Forrester found that only 14% of U.S. consumers control or monitor home appliances or utilities using a phone or tablet, still the main control devices for connected or smart objects.
However, a third (33%) of U.S. online adults will use some form of IoT across home, wearables or car this year, with the main usage centering around wearables and smartwatches.
Brands are expected to leverage various aspects of the IoT. Here’s how various categories of brands are expected to tap into the IoT opportunity in the next couple of years, according to Forrester:
Sport, fitness, health brands – Consumer brands in this space are poised to benefit from consumers’ interest in capturing and storing personal data on wearables. Marketers are likely to develop specific engagement tactics, such as gamification to drive behaviors toward more wellness.
Automotive brands – In advance of driverless cars, which may be 10 years or so out, about 10% of U.S. online consumers this year will use smartphone-enabled, auto app accessories, that retrofit connected car features to older cars. These can provide a new gateway to consumers in cars.
Insurance companies – Home insurance companies this year will begin to broadly promote smart home discounts.
Retail – Emerging digital technologies, such as virtual reality, digital mirrors, RFID tags and beacons, are transforming retail experiences both in stores and at home. Embedding tech such as NFC tags, QR codes, image recognition and augmented reality into product packaging is an opportunity to engage at the point of sale and later. Forrester says marketers should experiment with these technologies early to learn how to extend product opportunities and experiences directly into homes of consumers.
Each brand category ultimately will be involved with consumer engagement within the Internet of Things.
The only question is which brands and agencies will be early and which will be late, both of which have obvious consequences.

Dell Teams With GE, Microsoft, OSIsoft, PTC, SAP, Software AG and Others to Advance the Internet of Things | Business Wire

Dell today is launching the Dell IoT Solutions Partner Program for the advancement of Internet of Things (IoT) technologies and solutions. The program builds an ecosystem of partners to help customers navigate the fragmented IoT landscape and identify the right technologies to develop their IoT solutions. As a global leader in computing technology, Dell will offer participating partners access to the industry’s most robust and reliable product portfolio, world-class support and increased opportunities for incremental business growth.

“Software AG’s partnership with Dell is hugely significant for any enterprises looking for ways to simplify and cost effectively utilize the Internet of Things. Together we are bringing industrial strength real-time analytics to the edge of the IoT, significantly reducing network traffic and accelerating the ROI of IoT projects”
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The program will combine a global, multi-tiered (Executive, Associate, Registered) network of experienced Independent Software Vendors (ISVs) with Dell’s broad portfolio of IoT assets, including purpose-built, intelligent gateways and embedded PCs, security and manageability tools, data center and cloud infrastructure, and data integration and analytics software like Boomi and Statistica. These assets will help organizations develop, deploy and maintain leading-edge IoT solutions.

“Dell believes that opportunities increase when you help others win,” said Andy Rhodes, executive director, Commercial IoT Solutions, Dell. “We are passionate about collaborating with this strong group of companies and believe ISVs are critical in building the bridge between the exciting industry potential of IoT and profitable market reality.”

Dell works with Information Technology (IT) and Operations Technology (OT) organizations to create a unifying IoT strategy for bridging their differing business approaches. The IoT Partner Program will include companies across a wide range of industries that further strengthen Dell’s expertise in areas such as industrial and building automation and transportation. It launches with more than 25 partners including GE, SAP, Software AG, Microsoft, OSIsoft and others, many of which are utilizing the Dell Edge Gateway 5000 Series to power their own IoT solutions. Dell also continues to build relationships with systems integrators (SIs) with vertical expertise and deployment scale.

The Dell Edge Gateway now also supports Windows 10 for secure, reliable, and streamlined support and is Microsoft Azure Certified for IoT. Customers can depend on the Edge Gateway for seamless and security-enhanced data with the Azure IoT Suite, so they can get their projects running quickly.

Creating use case blueprints is one of the many ways Dell is working with partners to help customers speed up their IoT projects and make sense of the vast ISV landscape. Dell, Kepware, and Software AG are collaborating to develop IoT enabled predictive maintenance models utilizing distributed analytics to address the industry’s biggest operational challenges, such as unplanned downtime, overall equipment effectiveness, maintenance cost and return on assets.

With Microsoft and Blue Pillar, Dell is delivering Automated Demand Response solutions which help utilities maintain grid reliability and enable customers to realize significant value through dispatch of onsite power generation or reduction in consumption. This allows our customers to improve profitability through demand response incentives and reduce operational risks through proactive notification from the utility of potential power disruptions.

Dell and SAP are also collaborating to bring business to the edge with models designed to help address the industry’s biggest operational challenges, such as business continuity, overall equipment effectiveness, maintenance cost and return on assets.

The Dell Edge Gateway 5100 Model designed for the extended temperature ranges found in industrial environments is now available on Dell also launched five new accessories for the Edge Gateways, including I/O and power expansion modules, ZigBee module, CAN bus card, and IP65-rated rugged enclosure. Finally, Dell revealed new cloud-based manageability software, the Edge Device Manager (EDM), which provides centralized reporting and control of edge gateways from a single cloud-based console. Learn more about these new product updates here.

Additional partners are adding tremendous value through their specialized areas of expertise, including Azeti, Blue Pillar, Datawatch, Eigen Innovations, Flowthings, Flutura, GE, Kepware, Lynx Software, Microsoft Azure, OSIsoft, relayr, SAP, Software AG, and ThingWorx.

Partner Quotes

“Dell brings an excellent balance of purpose-built features set and the enabling security and manageability software that build credibility with IT organizations. By combining Dell’s deep roots in the industrial sector and strong focus on data-driven innovation with GE’s Predix platform, we are enabling Dell’s IoT gateways to be Predix-ready, and connect seamlessly into the Predix software stack,” said Denzil Samuels, Head of Global Channels and Alliances, GE Digital.

“Microsoft is continuing its work with Dell across our offerings for every IoT scenario, from the Azure IoT Suite to Windows 10 on the Dell Edge Gateways. Our collaboration will help both companies to ensure that our customers receive a world-class ecosystem of devices and services and time to production at industry-leading speeds,” said Caglayan Arkan, general manager, Worldwide Manufacturing, Microsoft Corp.

“Our PI System, the industry standard in enterprise infrastructure for management of real-time data and events, running on the Dell’s Edge Gateway on Windows 10 lowers the barriers to pervasive monitoring; enabling operators and engineers to capture additional sensor data without impacting or upgrading traditional automation and control systems,” said Richard Beeson, Chief Technology Officer, OSIsoft. “Our partnership with Dell to deliver IoT data to PI allows our joint customers to receive substantial enterprise insights and value.”

“Software AG’s partnership with Dell is hugely significant for any enterprises looking for ways to simplify and cost effectively utilize the Internet of Things. Together we are bringing industrial strength real-time analytics to the edge of the IoT, significantly reducing network traffic and accelerating the ROI of IoT projects,” said Eric Duffaut, Chief Customer Officer (CCO), Software AG. “Our Streaming Analytics Platform together with Dell’s purpose-built edge gateways allow customers to process large amounts of real-time data close to where the action is. This in turn drives faster automated decisions and appropriate digital responses locally, only sending a subset of critical data to the core for further analysis and action.”

Additional Links
Dell’s IoT Strategy and Partner Programs: Part One and Part Two by Laurie McCabe, Partner, SMB Group
Follow us at @Dell on Twitter and Dell Internet of Things on LinkedIn

If Apple was in talks to buy Tesla, this won’t help.

Apple has reportedly poached a top Tesla execute, Chris Porritt, Tesla’s former VP of engineering, according to Fortune. Porrittt will likely join Apple’s secretive car project, dubbed Project Titan.

Prior to working at Tesla, Porritt was Aston Martin’s chief engineer and was also a principal engineer at Land Rover.

Apple has never publicly acknowledged that it is developing a car, but the existence of Project Titan is an open secret among tech companies and automakers. Apple has hired hundreds of automotive engineers to work on the project, many of whom previously worked at Tesla. Reports surfaced last year that Apple had been poaching so many engineers from Tesla that it was slowing down Tesla’s production.

Porritt said last year that he met with Tesla CEO Elon Musk “three to four times per week,” so he brings with him a great deal of knowledge about Tesla’s business model, production processes and supply lines, and future plans. Given that Apple is expected to make an electric, connected vehicle, just as Tesla has, that knowledge could be just as valuable to Apple as Porritt’s engineering expertise.

Apple’s car project lost its leader, Steve Zadesky, a former Ford engineer, earlier this year. It also was hit with a hiring freeze after an unfavorable review by Jony Ive, Apple’s design chief, found a lack of progress at the project, Apple Insider reported. The hiring of Porritt seems like an effort to reset the car project and make progress towards its goal of developing a car by 2019.

Internet of Things (IoT) Market Soaring at 33.3% CAGR to 2021

The worldwide Internet of Things (IoT) market is projected to hit a CAGR of 33.3% to 2021 driven by rising need for operational efficiency and increasing penetration of connected devices while the services segment is expected to gain maximum growth during forecast period.

Complete report on global Internet of Things (IoT) market spread across 154 pages, profiling 10 companies and supported with 65 tables and 47 figures is now available at .

The growth of Internet of Things (IoT) Market is driven by factors such as development of cheaper and smarter sensors, rising adoption of cloud computing, evolution of high speed networking technologies, and increasing penetration of connected devices. In terms of segments, the Services segment is estimated to grow at the highest CAGR during the forecast period due to the increasing penetration of connected devices and higher adoption of Internet of Things (IoT) solutions across industry verticals. Managed services segment is expected to grow at the highest rate between 2016 and 2021. Due to the increasing technological adoption, Asia-Pacific (APAC) is projected to witness the fastest growth rate among regions.

In the process of determining and verifying, the market size for several segments and sub segments gathered through secondary research, extensive primary interviews were conducted with key people. In Tier 1 (20%), Tier 2 (42%) and Tier 3 (38%) companies were contacted for primary interviews. The interviews were conducted with various key people such as C-level (55%), Director Level (26%) and others (19%) from various key organizations operating in the global Internet of Things (IoT) market. The primary interviews were conducted worldwide covering regions such as North America (47%), Europe (32%) and APAC (21%).

The key vendors profiled in the Internet of Things (IoT) market research report such as  IBM Corporation, Cisco Systems, Inc., SAP SE, PTC, Inc., General Electric, Oracle Corporation, Microsoft Corporation, Symantec Corporation, Amazon Web Services and Bosch Software Innovation. Order a copy of Internet of Things (IoT) Market by Software Solution (Real-Time Streaming Analytics, Security, Data Management, Remote Monitoring, & Network Bandwidth Management), Platform, Service, Application Domain, and Region – Global Forecast to 2021 research report at .

The latest trends in Internet of Things (IoT) include growing IoT integration across different industry verticals, diversification of IT giants toward providing analytics and security software, and cost benefits of predictive maintenance. The availability of cloud deployment options for Internet of Things (IoT) solutions has further provided a huge opportunity.

On a related note, another research on Internet of Things (IoT) in Smart Cities Market Global Forecast to 2020 says, increasing demand for intelligent cities and IoT devices is expected to drive the Internet of Things (IoT) in smart cities market. Data management solutions sub segment holds the most promising potential for the next five years. The overall market size is estimated to grow from USD 51.96 billion in 2015 to USD 147.51 billion by 2020, at a CAGR of 23.2%. Companies like Bosch Software Innovation Gmbh, CISCO Systems, Inc., Huawei Technologies Co., Ltd, Intel Corporation, IBM Corporation, Harman International Industries (ADITI TECHNOLOGIES), Enevo Oy Technologies, Infineon Technologies AG, Symantec Corporation and Schneider Electric Software, Llc. have been profiled in this 135 pages research report at .

Explore more reports on the Information Technology & Telecommunication market at

Is it time to invest in IoT?

While second-generation software has helped reduce the cost and improve the efficiency of some enterprises, it has done little to transform our physical world. Power, water, agriculture, transportation, construction and healthcare have barely been touched. But that’s about to change.

Industrial machines or enterprise things are increasingly being instrumented and connected. John Chambers, former Cisco CEO, says 500 billion things will be connected to the Internet by the year 2025. While you may question that, we already know 100,000 wind turbines are connected with the capacity to send 400 sensors’ worth of data every five seconds. So we’re going to end up with a lot of smart, connected things.

If you’re a startup with a vision to build products for things, not people, get started.
Unfortunately, all our connection, collection, analysis, learning, middleware and application technology has been built to support applications for the Internet of People. Things are NOT people. Things exist where people aren’t. Things have much more to say and things talk much more frequently. A Joy Global coal-mining machine has vibration sensors that sample 10,000 times per second. We need a new generation of enterprise application, middleware, analytic, collection and connection cloud service products to build precision machines for mining, transportation, healthcare, construction, power, water and agriculture.

Some have begun to make the investments. GE Software was founded in 2011 with a $1 billion investment. CEO Jeff Immelt has declared that GE needed to evolve into a software-and-analytics company, lest its industrial machines become mere commodities. Immelt has set an ambitious target of $15 billion in software revenue by 2020. GE plans to achieve this through its new Predix software platform under the leadership of CEO of GE Digital, Bill Ruh.

IoT security needs scalable solutions
PTC has taken an M&A path and invested more than $400 million in a series of companies: ThingWorx for $112 million, a $105 million acquisition of ColdLight and Axeda for $170 million. On the venture side you may not have noticed, but Uptake, a Chicago-based IoT startup, beat Slack and Uber to become Forbes 2015’s Hottest Startup. They raised $45 million at a $1 billion post-funding valuation.
I’ll let you be the judge of whether it’s time to invest in IoT. But if you’re an early-stage or even late-stage investor, it would be wise to be a student of this area as it promises to create as big a disruption as the second generation of enterprise software. And if you’re a startup with a vision to build products for things, not people, get started. Maybe in 12 years we’ll talk about you like we now talk about VMware, NetSuite and Salesforce.

How VR at Retail Stores Is Reshaping the Consumer Experience

Just as magic mirrors, beacons and even mobile payments once seemed futuristic, VR at retail stores has progressed from science fiction to the next disruptive retail computing platform. Retailers bent on distinguishing themselves with immersive, wow-factor customer experiences ― and enhancing store operations by requiring less space to merchandise more products ― are charging ahead with this revolutionary shopping technology.

In fact, virtual reality is now “an unavoidable topic in discussions about the intersection of retail and technology,” according to eMarketer. Retailers need to “start thinking about and preparing for virtual reality … sooner rather than later,” due to consumers’ expectations of new shopping experiences.

Goldman Sachs envisions VR retail software becoming a $500 million revenue opportunity by 2020, and ballooning to $1.6 billion by 2025. In its recent report, the company says VR is one of the technologies “retailers will have to invest in to serve their customers and keep ahead of their competition.” The investment firm notes that it is “less focused on the software revenue opportunity [than] the disruption potentially caused in the retail markets the technology can serve.”

Tommy Hilfiger, the first major retailer to adopt VR at retail stores, announced that VR is part of its vision “to exceed consumer expectations, inspire them, and offer retail experiences they never thought possible,” according to CEO Daniel Grieder.

How VR at Retail Stores Can Work for You

Shoppers equipped with a smartphone and a VR headset can fully immerse themselves in a cinematic virtual reality shopping environment. As they traverse store aisles and fixate on a product, more information about that item is delivered in panoramic 3D ― including related options such as cross-sells and up-sells not necessarily stocked in-store. Shoppers can learn more about how to use the product, which products it complements, how it might fit, where and how it was made, view demonstrations, conduct tests and then tap their headsets to place items in their virtual shopping carts.

As consumers interact with products and within shopping aisles, retailers can interpret shopping preferences and patterns to streamline their retail strategies. Retailers even can test displays and layouts, all in virtual reality, before physically building them out. New VR software and apps continue to create a multitude of capabilities and rewards. Many of these capabilities are demonstrated at Samsung 837, a digital lab and experience center unveiled in Manhattan in February 2016.

Retailers ready to infuse just a slice of today’s exciting, disruptive VR technology into their customer experiences can join Tommy Hilfiger in delivering “a compelling and interesting elevation of the traditional shopping experience.”

100 Billion Connected Devices Coming; U.S. Tops In Connectivity

The world is getting more connected.
Much of this is thanks to advancements in networking technology.
And much also is due to the massive introduction of new connected devices, which require fast and efficient networks so the information they accumulate can be shared in real time.
Many of these devices will be worn by consumers and be located in various parts of their homes.
This new connectivity will provide a host of innovative gateways for messaging from marketers to consumers.
And now a new lengthy and detailed global report just out is projecting that the number of connected devices will reach 100 billion by 2025.
Even if off by half, which is not likely, this will be an extraordinary number of connected devices.
The new Global Connectivity Index (GCI) by Chinese manufacturing giant Huawei is a measure of how 50 nations are progressing with digital transformation using information and communications technology. The 50 countries account for 90 percent of the global GDP and 78 percent of the global population.
The report also includes survey results from 3,000 businesses across 10 verticals in 10 nations to establish their progress in digital transformation compared with the GCI performance of their nation.
The verticals surveyed included retail, banking, finance, securities, and insurance, education, government and healthcare.
The goal of the index is to benchmark 50 countries according to current levels of connectivity and digital transformation, and to act as a leading indicator for future digital development and growth.
In the overall measurement, the U.S. is in the lead spot. Here are the top 10 countries based on the global connectivity index:
United States
United Kingdom
South Korea
The report pointed out that the U.S. is continuing to invest heavily in the Internet of Things, with the top applications being smart homes, wearables, smart cities, smart grids, connected cars, connected health and smart retail.
The connections are coming. And then the interactions can begin between connected devices and people.

Connected Consumers: 55% Own Fitbit, 28% Nest Thermostat, 23% Apple Watch 04/13/2016

While many consumers haven’t yet bought into the idea of smart home devices or wearable technology like smartwatches or fitness trackers, those who have are selecting a very wide range of devices.
While Fitbits lead for what consumers wear and Google’s popular Nest thermostats top the list of smart home objects, that doesn’t provide the scope of how widespread the range of products is.
A new piece of research goes deep into the range of both wearables and smart home devices and provides a view of how wide the market is, as consumers select their own products for what could be any number of personal reasons.
The study comprised a survey of 500 U.S. adults from a panel representative of U.S. Census data and was conducted by Rocket Fuel.
For home connected devices, devices from Google’s Nest comprise three of the top five products, though no one product seems to dominate the market. Here’s the list of connected home devices consumers currently own:
28% — Nest learning thermostat
25%– Netatmo Weather Station
25% — Nest Cam
22% — Philips Hue connected bulb
21% — Nest Protect
21% — Other home security device
18% — Belkin WeMo Switch+ Motion
14% — August Smart Lock
14% — Other connected home appliance
11% — Canary (home security)
8% — GE/Quirky Aros smart window air conditioner
For wearable devices, the number of different devices is just as broad, ranging from those from Fitbit to Garmin. Here’s the current breakdown by wearable device currently owned:
55% — Fitbit
23% — Apple Watch
17% — Samsung Gear Fit
16% — Nike+ Fuelband
10% — Omron blood pressure monitor
9% — Microsoft Band
8% — Jawbone Up
8% — Other fitness health tracker
6% — Basis Peak
6% — Garmin Vivofit Fitness Band
5% — Pebble Smartwatch
4% — Other smartwatch
The challenge for advertisers is that many of the connected devices, whether worn or found in the home, have either a small or no screen.
But the advantage is that the devices can be a data source that informs smarter cross-device profiles to determine potential purchase influence points.
And many consumers are fine with sharing data gleaned from their connected devices. Here’s a breakdown of devices that consumers are comfortable or very comfortable in sharing their data and which sources of the data they would be willing to share:
31% — Console gaming data
30% — Media consumption data
29% — Health/fitness data
29% — Retail data
29% — Handheld gaming data
28% — Home management data
28% — Sports training data
26% — Smartwatch data
25% — Driving data
23% — Personal finance data
22% — Home security data
20% — Wireless audio data
While advertising may not come directly through the connected devices, the data from those smart objects can help determine the best messaging to be transmitted through many other avenue

What Nest’s product shutdown says about the Internet of Things

We’re still super early in the evolution of the Internet of Things. I’m not cautioning consumers against buying into new technology – the only way these devices get better, smarter and more adroit is with mass adoption – but buyers do need to recognize that the world of connected devices is different than unconnected devices.

This stuff isn’t going to last forever and we don’t know what upgrade and support cycles will look like. That’s markedly different than the way we used to buy gadgets. Sure, there was always the risk that a company would drop support for a product 49 days after release, but the risk of a product just not working anymore was significantly less.

In this new era, it’s important to think about the potential that your entire home could just stop working – and planning for those scenarios.

It’s also time for companies behind those products to recognize that the expectations buyers have for their products and the expectations they have for supporting said products aren’t always going to be in alignment.