IHS TECHNOLOGY

INSIGHT REPORT

Internet of Things World 2015 Show Report

May 2015

ihs.com

Samsung IoT Platform Introduction Highlights Internet of Things

World 2015
John Byrne, Senior Principal Analyst

Samsung took the opportunity of the Internet of Things World 2015 conference, held May 12-13 in San Francisco, to
introduce its ARTIK platform. The new Samsung platform, which had been rumored for several weeks, helped
significantly boost attendance of the event compared to the prior year. However, Samsung was by no means alone, as a
number of major ICT vendors, including Microsoft, Intel, and IBM, took the stage to highlight their own roles in
identifying and addressing the key enablers and gating factors in IoT. In addition, I moderated an interesting panel of
service provider executives, including from Verizon, T-Mobile, and Telecom Italia, who talked about the shifting role
of network operators as the industry increasingly expands beyond traditional M2M to a larger, more heterogeneous IoT
environment.

SAMSUNG INTRODUCES ARTIK PLATFORM

Samsung President & Chief Strategy Officer Young Sohn introduced the companys new ARTIK IoT platform. The
introduction had been expected for several weeks, but the details were not known until the conference. The companys
platform includes a number of key elements, including several hardware options, an open software stack, strong
security credentials and an underlying cloud platform.
Hardware: the company introduced 3 IoT modules featuring a combination of size, speed, and power consumption
characteristics designed to apply to a variety of use cases. The smallest module, the Artik 1, the smallest form factor in
the market at 12mm, supports Bluetooth and ZigBee and is well suited to wearable applications such as fitness devices
that require ultra-long battery life. The Artik 5 features a 1GHz dual core processor and supports a variety of air
interface technologies, including WiFi, Bluetooth Low Energy, and ZigBee. Samsung is positioning the Artik 5 for use
in smart home hubs, high-end smart watches, drones, and IP-based cameras. At the high end, the Artik 10 features an
octa-core processor, 2GB of RAM, and 16GB of storage capacity. Use cases identified for the Artik 10 include home
gateways, home servers, media hubs, personal cloud, and smart machines.
Software: Samsung has introduced an open software stack, complete with pre-existing application frameworks and
software libraries designed to spur development on the platform. ARTIK comes with an extensive IoT software stack
and tools to accelerate product development. As part of this initiative, Samsung is also establishing an Alpha
Developer Program for developers interested in being early adoptersand hopefully evangelistsfor the ARTIK
platform. Samsung will offer hardware and technical support, including direct feedback with Samsung product
managers, in the hopes that it will lead to early ARTIK momentum.
Security: Samsungs Sohn focused on the need to lock down security at the hardware level as a key priority for the
ARTIK platform. This includes assigning every ARTIK module a secure ID (Secure Element) to make it inaccessible

Contacts

IHSTM TECHNOLOGY

John Byrne, Senior Principal Analyst

john.byrne@ihs.com

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Bill Morelli, Director

bill.morelli@ihs.com

IHS TECHNOLOGY | Internet of Things World 2015 Show Report

to hackers; as well as establishing segregated trust zones on the ARTIK 5 and ARTIK 10 modules that enable
developers to gain access to modules only after authentication, and only related to their services.
Cloud: Samsung is leveraging its acquisition of ThingWorx last year as part of the ARTIK platformthe company is
offering SmartThings Open Cloud, an open API platform based on Samsungs SAMI data exchange platform.
Based on foot traffic at Samsungs ARTIK booth space, the company clearly generated the most buzz at IoT World
2015.

INTEL OUTLINES STRONG IOT VISION

Intels VP of IoT Strategy & Technology Rose Schooler offered a powerful case for why the time is right for massive
IoT adoption. Among the drivers: the cost of sensors, bandwidth, and processing have decreased 2x, 40x, and 60x
respectively in the past 10 years. Meanwhile, 85% of devices currently remain unconnected. Intel plans to address the
IoT opportunity in three key areas: security, standards, and use cases.
Security: Intel is building in security at the transistor level, with software residing on top that can be optimized for
individual use cases while maintaining the underlying security. The company focuses on pre-integrated solutions
offering hardware and software, with security built in, which it believes results in faster time-to-market for developers.
The company has a number of security-related acquisitions over the past few years that help establish its security
credentials, including Wind River and McAfee.
Standards: In an environment with numerous standards-influencing bodies, Intel has made some key strategic bets, the
most notable being the Open Internet Consortium (OIC) and the Industrial Internet Consortium (IIC). The OIC has
attracted more than 80 members, and is focusing on developing open source solutions and establishing industry
standards for how application developers and device manufacturers manage common tasks of discovery and
connectivity over multiple transport technologies, including WiFi, Bluetooth, and ZigBee. Meanwhile, the IIC has
quickly attracted more than 160 members focused on establishing reference architectures and building testbeds for
interoperability, a major challenge given the myriad legacyoften proprietarytechnologies in use in industrial
environments currently.
Use cases: Intel is showcasing a number of use cases to help establish a track record of working business models with
quantifiable ROIs. Schooler highlighted a number of interesting IoT applications already in place, including in smart
irrigation, smart hotels, and smart factories, which are already resulting in clear cost savings. In one example, Schooler
touted Intels own savings in a smart factory deployment which generated $9M in annual cost savings efficiencies.

IBM TRYING TO MOVE FROM HYPE TO INSIGHT IN INDUSTRIAL INTERNET

Following on the heels of IBMs announcement in March that it would invest $3B in the next 4 years to build its IoT
platform, company execs outlined some of the rationale behind the investment and how it plays to IBM strengths.
IBMs IOT General Manager Chris OConnor provided some interesting specifics.

62% of C-suite execs believe companies that are slow to integrate IoT will fall behind the competition

72% of business leaders say cloud will be extremely important to their business success by 2016

90% of data created at edge of IoT is never captured, analyzed, or acted upon

60% of edge data loses its value within milliseconds of being generated

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IHS TECHNOLOGY | Internet of Things World 2015 Show Report

The last two stats cited help make clear that the primary focus for IBMs emerging IoT unit will be in making sensor
data more accessible and actionable. To do that, the company will capture edge data more effectively (capture the
90%), leverage the cloud to store and process data in real-time (the killer app for cloud is not enterprise data, it is
IoT), and leverage social and media channels to provide additional texture and context to edge data (witness recent
partnerships with The Weather Company and Twitter). IBM believes this approach is particularly well suited to the
industrial Internet, where it was able to identify current reference engagements with several high-profile manufacturers,
including Pratt & Whitney and Whirlpool.

MICROSOFT OFFERING PROOF-OF-CONCEPT CONSULTATIONS TO JUMP

START IOT GROWTH
Microsofts Director of IoT Solutions, Americas, Chris Lanier threw the audience a curveball at the beginning of his
IoT World 2015 keynote. Lanier showed a definition that at first blush appeared to be a comprehensive definition of
IoT, but instead was a definition of a SCADA system that had been in place since the 1960s, the point being that in
some ways the current IoT hype may be overblown.
On the other hand, Lanier pointed to several key factors driving the current push toward IoT deployment, including
near-ubiquitous connectivity; economies of scale that are driving hardware, software, and processing costs continually
down; and a scaling up in terms of the ability to process, compute, and store nearly unlimited volumes of data in the
cloud.
Lanier focused on the requirement to bridge technology islands in the modern enterprise, and in particular to bridge
the gap between IT and OT (making 1+1=3). Lanier also highlighted Microsofts Azure IoT suite of services which it
originally unveiled at its Convergence event in March. These services focus on a few key priority areas initially,
including remote monitoring, asset management, and predictive maintenance; however, Lanier indicated that Microsoft
will be expanding the array of services it will be offering with its Azure cloud offering in the coming months.
Finally, Lanier highlighted the importance of proofs of concept in getting successful IoT deployments off the ground.
To that end, the company will be offering Quick Start consultations, in which Microsoft or a partner company will
provide a 4-hour on-site consultation with enterprises interesting in deploying an IoT solution, to discuss Microsoft IoT
capabilities, learn from other enterprises that have deployed solutions, identify financial benefits of deploying IoT, and
define the scope of an initial proof-of-concept.

MOBILE NETWORK OPERATORS HIGHLIGHT STRENGTH OF CELLULAR IN

TRANSITION FROM M2M TO IOT
I moderated a panel of service provider executives, featuring three U.S. operators (Verizon, Sprint, and T-Mobile
USA), one Canadian operator (TELUS), and one EMEA operator (Telecom Italia) in addition to a US-based MVNO,
Ting. In the IHS-Infonetics view, the IoT embodies a much broader overall connectivity environment, which includes
alternative low-power network technologies such as Sigfox and LORA, as well as a broader ecosystem that includes
software, systems integration, analytics, and value-added services that extend well beyond traditional network
connectivity.
Network operators generally acknowledged this new environment but were eager to stress the central role of the
network operator. Operators are already accustomed to working with non-cellular use cases such as smart grid.
Moreover, operators stressed that the introduction of LTE Cat 1 (to be introduced in 2015-2016) and Cat 0 (several
years later after modules become available and required changes to the core and radio networks are implemented), the
economics that currently may favor alternative technologies because of cost and performance advantages may swing
back in favor of cellular. Finally, the introduction of 5G will introduce a whole host of use cases where high
bandwidth, ultra-low latency and near ubiquitous connectivity can be leveraged.
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IHS TECHNOLOGY | Internet of Things World 2015 Show Report

BOTTOM LINE
The Internet of Things World 2015 established a position as one of the premier ecosystem events in IoT, highlighted by
Samsungs decision to use the event to unveil its new ARTIK platform. The high-level participation from a number of
influential vendors as well as international participation from network operators is a clear indication that this event has
emerged as one of the key events in a crowded marketplace for M2M/IoT conferences.
For many of the vendors highlighted above, the event represented an opportunity to focus on their strengths within the
IoT ecosystem. However, for these companies and many others, IoT is a journey and not a destination. As a result,
companies will continue to define and refine their IoT platforms, eyeing acquisitions and partnerships to help fill in
product/solution gaps. As a result, next years event is likely to represent an IoT platform progress report for many of
these same vendors.
Meanwhile, though cellular will continue to play a significant role in IoT, cellular network operators will need to
continue to examine their key strengths to move beyond connectivity and carve out a more significant and more
profitable long-term role in the larger IoT ecosystem.
As always, I welcome your feedback.

John Byrne, Senior Principal Analyst

+1 408.583.3320
john@infonetics.com
@johnbyrnetics

2015 IHS

May 20105