$50 Billion by 2017

Forbes reports that

Big Data will grow

to $50B by 2017,

representing close to

a 60% yearly increase.

50 Billion Nodes by 2020

According to Cisco,

80 things per second

are connecting to

the Internet, and by

2020, 250 things will

connect each second.

50 billion things will

be connected to the

Internet by 2020.

Increasing Volume and Velocity

46% of businesses

consider volume of

information to be

their primary data

challenge.

The physical world itself is becoming an information system. Sensors in physical objects from smartphones to manufacturing equipment to traffic cameras are being networked. The vast streaming data they generate is changing the way businesses think about information and how to use it. The potential is tremendous.

Empowering the Internet of Things with Adaptive Stream Computing

“The Internet of Things will be the biggest point of leverage for IT in the next 10 years, with $14 trillion in profits from that one concept alone.”– John Chambers, CEO, Cisco

• Adaptive Stream Computing will make vast data stores and streams useful with solutions that are easy to integrate and control, providing significant business insight and competitive advantage.

• Companies that harness Big Data in real-time to capture and act on information as it is created will eclipse their competition and transform their industries.

• Solution providers that integrate resident intelligence and control with centralized processing power will dominate their industries by enabling their customers to achieve more than they ever thought possible.

Transforming IndustriesInformation Technology is disrupting business models and creating

new opportunities in a series of dramatic waves. We are currently

seeing the effects of the information revolution progressing from

simple analytics to Big Data. The next step will be the integration

of Stream Computing, culminating in The Internet of Things, and

its economic disruption of entire industries.

The last decade offered the first information revolution.

With more information at their fingertips, managers became

able to make more informed decisions than ever before.

Typically, business information was extracted and analyzed

from structured central repositories and served up in standard

reports or dashboards.

Recently we have seen this model stretched and revolutionized

by the need to accommodate vast levels of data. This shift to

‘Big Data’ technologies has been gaining momentum over the

last 3-5 years and is accelerating.

The Internet of ThingsThe present phase of the information revolution is poised to be

as transformative as the last ones were. The world of ‘things’

is becoming inter-connected – everything from cell phones

to motion sensors are generating vast quantities of real-time

information, and businesses will need to harness that informa-

tion-as-power to thrive in an increasingly competitive landscape.

Stream ComputingStream computing analyzes and acts on data as it is created at

network nodes. These nodes may be anything from Internet

feeds to oxygen monitors, cell phone relays to assembly line

control valves.

Stream Computing is about to meet the Big Data challenge

head-on. Consider the Twitter ‘storm’ analyzing millions of

tweets to cross-reference connections and route trends in

real-time, or Amazon.com tracking popularity of devices

and cross-referencing past purchases to tailor offerings in

real-time.

Importantly, real-time data models are about to move from

the virtual world to the physical one. By taking information

from sensors on physical objects and acting on them instantly,

utilities are building out systems that re-route power within

milliseconds upon outages, while the transportation industry

is looking at ways to reroute shipping based on GPS, weather,

and real-time traffic data.

Completing the Picture: Adaptive Stream ComputingStream Computing of Big Data from the Internet of Things will

need Adaptive Characteristics. To be useful, systems will need

to provide:

• Flexibility to easily create and manage rules that empower

managers rather than data scientists, to the point of

automated feedback and learning;

• Extensibility to blend centralized, decentralized, and hybrid

data models in and out of the cloud transparently;

• Resiliency to retain transactional integrity in real-time

systems under the most demanding conditions; and

• The ability to evolve in real-time to execute changes

automatically and transparently based on changing

conditions in the data stream.

Distributed ModelsFor maximum business value, Adaptive Stream Computing

systems will use several learning and feedback approaches for

different types of networks, different parts of the network,

and different elements within them, including:

• Human to machine rules based logic;

• Human to machine supervised pattern recognition

feedback; and

• Automated machine to machine pattern recognition

adaptation ‘on the fly.'

Above all, systems will need robust error-checking and

recovery capabilities to retain transactional integrity.

Industry DevelopmentAs businesses strive for the advantages of big data, focus

will shift away from the solved problems of data storage and

acquisition, to the more complex problems of advanced data

management. New approaches enabled by Adaptive Stream

Computing will:

• Create transparency, discover needs, expose variability and

improve performance;

• Enhance or even replace human decisions with embedded

automated and semi-automated logic; and

• Innovate new business models, products and services.

This advancement will be generated in the context of widely

blended networks that include everything from machine to

machine communication with zero latency (edge processing)

to batch systems of structured, semi-structured, and

unstructured data in the cloud.

Different industries will drive towards this advancement at

different rates, with the most innovative leading the way.

As industries mature, the most competitive participants will

leverage Big Data and Adaptive Stream Computing in creative

ways for significant gain.

Empowering The Internet of Things with Adaptive Stream Computing

IDC estimates that by 2020, over 400 billion transactions will be performed on the Internet per day.

How BIG is ‘Big Data’?Facebook

Facebook stores and mines over 30 petabytes (30 million gigabytes or 30 billion megabytes) in its systems continuously.

Twitter

Twitter manages 175 million tweets per day from over 450 million accounts.

Walmart

Walmart handles and archives more than 1 million customer transactions per hour.

Handheld Devices

Handheld devices account for tremendous traffic: over 5 billion people call, text, browse and buy from smartphones.

1 2

The Big Data concept will progress from simply managing data at rest to managing and acting on data in motion.

“As advanced technology becomes more and more prevalent, we have to engage in analysis and diagnosis . . . even more intensively or risk being swamped by the data we generate.” – Peter Drucker

Companies that can effectively act on real-world information will garner a major competitive advantage. Those that harness Big Data in real-time to capture and act on information as it is created will eclipse their competition and transform their industries.

The OpportunityAdaptive Stream Computing is poised to make Big Data

actionable by businesses. Technology companies that can help

their clients transform themselves, and their industries, will

experience dramatic growth.

According to Gartner, most verticals are already investing

heavily in Big Data and Analytics. With the pressures of

product launch windows and time to market shortening in an

ever-accelerating global market, it makes sense that real-time

business data is being recognized for its ability to engender

much greater efficiency and help business managers create

smarter systems and make more informed decisions.

At the same time, the tremendous continued growth of

online business is helping change expectations in all sectors.

Specifically, traditional businesses are eager to replicate online

successes. Amazon’s disruption ofthe publishing industry,

and Apple’s revolutionizing media sales have been important

success stories hinged on the tremendous value of Big Data

and Adaptive Stream Computing. Traditional businesses are

hungry for this type of growth, and aware that if they do not

take active steps to embrace Big Data and Adaptive Stream

Computing, their competition will.

4

Winning in the Adaptive Stream Computing SpaceIndustries are gradually gaining awareness of their need for not

only the means to manage vast quantities of business data, but

also the means to make it useful in the context of distributed

networks and machine-to-machine communications. They are

learning quickly that useful systems will:

• Empower Business Managers, not Technicians – The

US Bureau of Statistics predicts a shortage of 100,000-

200,000 IT workers with ‘deep analytical talent’, and

another 1.5 million workers with extensive quantitative

skills, by 2018. Technology companies that want to gain

traction and dominance in the immediate term will need

to empower managers directly without the need for Data

Scientists to act as intermediaries.

• Manage Active Content – Big Data is just the beginning.

Active streams of data generated from the Internet of

Things will create vast volumes of data at high velocity.

Successful systems will manage transactional data from

various incoming systems to make meaningful decisions in

automatic and semi-automatic ways.

• Integrate Edge Computing with Centralized

Intelligence – Node intelligence must provide fast response

times between points in order to make Stream Computing

meaningful. Offerings that want to dominate this market

will manage structured, unstructured and semi-structured

data to automatically make decisions in real-time when

necessary, while leveraging the power, economy, and

efficiency of centralized servers for conditions that are better

served by that model for economic or practical reasons.

“Big data will help to create new growth opportunities and entirely new categories of companies, such as those that aggregate and analyze industrial data. Many of these will be companies that sit in the middle of large information flows where data about products and services, buyers and suppliers, and consumer preferences and intent can be captured and analyzed.” – McKinsey Quarterly Report

“…many companies are (already) implementing new tools for collection, analysis and presentation of treasures buried in big data -- and are reporting impressive ROI as a result. Predictive analytics has jumped to the front of the field as one of the most promising areas of practical application.” – Doug Gonsalves, Innovation Insights, WIRED Magazine

Empowering The Internet of Things with Adaptive Stream Computing Empowering The Internet of Things with Adaptive Stream Computing

3

“Big data is going to transform business. It’s not about how, it’s about when.” – Patricia Florissi, Vice President and Global Chief Technology Officer, EMC

Timing the MarketThe opportunity is here today. Large companies are positioning

themselves to participate in the Big Data and Analytics space

with key acquisitions, and the valuation multiples are reaching

double digits of revenue. Examples include:

• IBM acquiring Visimo,

• VMware acquiring Cetas Software,

• Teradata acquiring (merging with) Aster Data , and

• EMC acquiring Greenplum.

Investment companies are also putting skin in the game, with

more than 20 major investments announced in 2013, including

Applied Predictive Technologies raising $100M, Intel’s

investment in Revolution Analytics, and Hortonworks’ $50M

Big Data investment.

Overall, investment capital in Big Data technologies in the

first half of 2013 has increased by more than 87 percent

of the total in all of 2012, and the trend is expected to

continue into 2014 and beyond.

Where will this happen?The need for transactional Big Data is recognized in virtually

every industry that has supply chain, automated control,

or rapid transactional needs. The Internet of Things (also

called The Internet of Everything) will collect streaming

data from cars, appliances, smartphones, monitoring

sensors, and much more:

• Warehousing and Shipping will track goods down to the

individual unit.

• Manufacturing will detect problems proactively to address

problems before they occur.

• Retail will adjust prices on the fly based on instant sales data.

• Transit will reconstruct routes and schedules in real-time.

• Military and Aerospace will manage and deploy resources

based on changing conditions in the field.

Market SizeIDC estimates the global

Big Data market to be over

$6.5B in 2013, rising to $17B

in 2015 and then well over

$48B by 2018. JMP Securities

anticipates that by 2021, Big

Data will account for fully

13% of IT spending globally.

According to Cisco, 50 billion

things will be connected by

2020. Over the next 10 years,

the ‘Internet of Everything’

will create $14.4 trillion of

“value at stake,” the potential

bottom-line value derived by

harnessing this data.

About Bit Stew Systems Inc. & Grid Director™Bit Stew Systems Inc. is a world-leading provider of integrated,

real-time network operations solutions for the utility industry.

Bit Stew’s flagship product, Grid Director, is revolutionizing

the way the utility industry deploys, operates, secures and

optimizes smart grids globally. Grid Director’s game-changing

approach offers customers an in-depth, interactive and

real-time view of their smart grids enabling them to make

more agile and informed decisions that elevate their business

operations. Grid Director provides real-time analytics, dynamic

event management, and quick and easy integration with both

IT and OT systems and applications.

Supporting both IP-based and proprietary networks, Grid

Director is ideal for delivering an enterprise view into large

disparate device based networks, while offering predictive

analytics, pattern recognition, and complex event correlation.

Grid Director is currently in production at several large utilities

in the United States, Canada, and Australia – and is rapidly

becoming the global software standard for electric, gas, and

water utilities. The application is built to concurrently manage

a network of connected devices and has proven scalability to

over one billion end devices – making it an ideal platform for

managing the Internet of Things.

Founded in 2005, Bit Stew Systems is a privately held company

that is headquartered in Vancouver, British Columbia with

offices in Mountain View, California; Toronto, Ontario; and

Melbourne, Australia. Bit Stew is strongly positioned to execute

on its rapid growth strategy that involves both geographic

expansion, and movement into adjacent utility sectors,

further establishing itself as a leader in the smart grid network

technology market.

Looking AheadThe unique and modular approach used by Bit Stew Systems

provides agility and relevance for all kinds of industries that

are beginning to understand the power of Big Data and how

to best leverage it with dynamic control through Adaptive

Stream Computing in the Internet of Things. As such, Bit Stew

Systems is in a unique position with Grid Director:

• Big Data and Stream Computing are fully integrated

by design, rather than being bolt-on adaptations for

traditional software platforms;

• The ‘Data Scientist’ is integrated into product: decision

makers can set rules and metrics with natural language

rather than program interfaces, or they can have the

system teach itself within user-specified parameters;

• A Fit for Purpose architecture does the job that’s needed by

the customer without extras that may never be used, and

the flexibility to add functionality on the fly provides clear

paths for growth; and

• End-point intelligence for autonomous machine-to-machine

communication, embedded analytics and action is built into

the product and integrates with a seamless cloud offering.

“We expect companies that were born digital to accomplish things that business executives could only dream of a generation ago, but in fact the use of Big Data has the potential to transform traditional businesses as well. It may offer them even greater opportunities for competitive advantage.”– Andrew McAfee and Erik Brynjolfsson, Harvard Business Review

Empowering The Internet of Things with Adaptive Stream Computing

Ensuring SuccessBit Stew Systems has a thoughtful strategy to ensure continued

success as it adapts its platform to new industries with:

• A clear value proposition, the ability to prototype

quickly, and a modular approach that will provide quick

proofs-of-concept to industry players. This easy integration

will also provide a thin edge on which the company can sell

a core ability at the outset, and leave the opportunity for a

fuller offering open to the future.

• Partnerships, integration with common platforms,

and targeted hiring or acquisitions that will create

environments where the company is considered an

incumbent rather than a newcomer.

• A flexible and responsive strategy that will prevent

over-investment with a continued focus on the capability

for the technology to adapt quickly to new directions will

ensure that opportunities can be exploited.

With a clear path forward informed by a well-developed and

adaptable strategy, Bit Stew Systems is in a unique position to

deliver on the tremendous promise of the Internet of Things

with Adaptive Stream Computing.

65

Bit Stew Systems Inc.Learn more at: www.bitstew.comFollow us on Twitter: @grid_director

BIT STEW and GRID DIRECTOR are trademarks or registered trademarks of Bit Stew Systems Inc.

About the AuthorsDavid Sussman (MBA, PMP) and Tony Mauro (P. Eng) are the principals at Sussman

and Mauro, a marketing strategy firm specializing in industry analysis, strategy

development, and communication in the high-tech sector.

The Sussman and Mauro team have extensive experience, extending from the energy

sector to telecommunications, cloud services, and related industries.

Together, Mr. Sussman and Mr. Mauro bring over 30 years of experience to bear on

business problems. In their employment and contracting careers, they have served

a wide array of companies including TELUS, BC Hydro, BCTC, Nexon, Creo, Kodak,

Corix, and several others. Their approach includes technical, strategic, and marketing

perspectives, enabling them to bring a very unique value proposition to their clients

and partners.

Selected References:http://www.mckinsey.com/insights/business_technology/big_data_the_next_frontier_for_innovation

http://www.ibmbigdatahub.com/blog/big-data-analytics-will-permeate-internet-things

http://www.wired.com/insights/2013/07/without-api-management-the-internet-of-things-is-just-a-big-thing/

http://www.economist.com/node/15557443

http://hbr.org/2012/10/big-data-the-management-revolution/ar/1

http://wikibon.org/wiki/v/Big_Data_Vendor_Revenue_and_Market_Forecast_2012-2017

http://share.cisco.com/internet-of-things.html

http://www.forbes.com/sites/siliconangle/2012/02/17/big-data-is-big-market-big-business/

Commissioned by Bit Stew Systems Inc.

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