Roberto Siagri, Chairman & CEO,

Eurotech SpAVenice 17-3-2014

Transitioning from a Product to a Service Economy: 

the Power of Cloud Technology in Innovation

YOU  MIGHT BE HERE

CLOUD computing

is not aboutProduct & Technology

is about

Transition

The Cloud reverse pyramid

SaasPaaS

Iaas

CLOUD technologythe birth of

Anything-As-A-ServiceNot just

Iaas, Paas, Saas, but

Device as a service…..

X as a service

Which is the driving Force?

both service companies and manufacturers

are moving more dramatically into services

6

Vandermerwe and Rada, 1988 

Servitization

is happening in almost all industries on a global scale

a Services Economy

The

bill

Industries will experiencea type of

never seen in the last

two decades

Progressis expanding

Exnenop

lait

9

yl

Technologiescreate the

Exnenop

lait

10

11

in the 21st century,

we won't experience 100 years of progress

it will be more like 20,000 years of progress

Law of accelerating returns

Ray Kurzweil

Complexity and Saturation

Time

Perf

orm

ance

new way

12

old wayillusion of the old

reality of the old

difficult to imagine of the new

Each new TECHNOLOGICAL substrate is more efficient than the previous one

Time

Innovation

Custom Products

Commodity

13

The most important technologies “disappear”

Standard Products

Utility/ as a Service

Diffusion

SpaceTimeEnergyMatter

Information

Computation

STEM compression :the Engine of Innovation

15http://discovermagazine.com/galleries/zen-photo/a/age-of-abundance#.Uy0_1oV0BxI

16

Less

More

Meta‐Trends in Technological Acceleration

17IDEAS are the new “ultimate” raw material

Moore's Law Miniaturization ‘65 Transistors increase 2 times over 18 months

Metcalfe's Law Interconnection ‘93 Value of a network increases with the square of the

number of connections

Gilder's Law Quantization ’00 Bandwidth increases 3 times faster than computer power

IP Devices vs. Humans

A waterfall of Data 

1.000 Exabyte= 1 Zettabyte

1 Zettabyte ~ to 36.000.000 years HD videoor250 billion DVDs

19

0

5000

10000

15000

20000

25000

30000

35000

40000

45000EXABYTE

The Data Economy

20

Value

Abundance

Atoms

Bits

A lighter GDP

The dawn of a New Smart World

Transforming Bits of Data at the Edge of the Network

into Actionable Information and Knowledge in the

Users’ hands will bring about the biggest change in

industry since the steam engine

Software is Eating The World

Companies in every industry need to assume that a software

revolution is coming…

Marc Andreessen

Reducing Software Complexity or CostValue follow simplicity

Cos

t--C

ompl

exity

Time

HW

SW

23

Wirth’s law: “Software gets slower faster than hardware gets faster”

The integration Platform as a Service

The Internet of Things

• Standard  Computer HW components

• Open & Industry Standards

• Cloud computing

• Standard   SW components

Commoditization of distributed systems

TimeCo

st‐Ubiqu

ity Z‐curve S‐curve

How to harness the complexity of IoT

Decoupling: Data-Producers from Data-Consumers

1- scale elastically

2- enable new services

3- reuse and combine

Integration / Decoupling

Platform

Multi-Service

Gateways

IoTInfrastructure Solution

Operational TechnologyBuilding Block

Data-Producers

Data-Consumers

How to harness the complexity of IoT

Decoupling: Data-Producers from Data-Consumers

1- scale elastically

2- enable new services

3- reuse and combine

Integration / Decoupling

Platform

Multi-Service

Gateways

Data-Producers

Data-Consumers

Simple interface for a complex system

Simplicity or Simplexity ?

Connecting the field at the Enterprise

Four Layers and Two Architectural Components

Business Apps

Multi-ServiceGateway

M2MIntegrationPlatform

ActIntegrate, Store

ControlConnect

+

CommunicateCompute Collect

@

Field Interfaces

Enterprise Service Bus

Field - Devices

1

2

3

4

More data More services

Every business today is 

producing a lot of Data 

that can become 

very valuable

Information.Dati

iPass: Everyware Cloud

Customers Vertical  APP

Business APP

Social 

Accessible by multiple users at the same time, at the service of many applications

It allows remote maintenance and remote supervision

Manufacturing Industry is in Transformation

32

by the forces of:  ‐ Deregulation, ‐ Digitization‐ Communication, ‐ Globalization ‐ Softwarization

Re-Thinking

• Products• Value Add• Business Model• Business Processes

Tomorrow  =  Servitization

The evolution  will most probably extinguish  the products that 

do not offer services

www.eurotech.com

Thank You!