CABA Forum & Entelec...
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The Connected Conversation Volume 2 / Issue 4 / May 2016 CABA Forum & Entelec Conference Where is IoT in Oil & Gas? p. 5 Headed to Israel p. 8 Takeaways from CABA p. 3 Come See Us p. 9 Fun Facts p. 7
Transcript of CABA Forum & Entelec...
The Connected ConversationVolume 2 / Issue 4 / May 2016
CABA Forum &Entelec Conference
Where is IoT in Oil & Gas?p. 5
Headed to Israel p. 8
Takeaways from CABAp. 3
Come See Usp. 9
Fun Factsp. 7
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News Flash: 2016 IoT Acquisitions &
IoT Acquisitions are Heating Up
So far in 2016, merger and acquisition activities within the IoT ecosystem have been picking up speed: with more than two quarters left in the year, we’ve seen technology giants like Cisco, IBM, and Microsoft make some pretty impressive sweeps:
—Cisco’s $1.4 billion acquisition of Jasper Wireless, it’s scoop up of Leata Semeiconductor for $320 million, as well as its purchase of CliQR and Synata really started the year off right.
—IBM joined the fray with it’s “binge purchase” of Resilient Systems, Optevia, Ustream, Bluewolf Group, Iris Analytics, and Traven Health Analytics for a total of $2.6 billion.
--Nokia purchased Withings, a French health and wearable device maker, for $193 million and plans to integrate its devices into Nokia’s WellCare digital health platform.
—Not to be outdone, Microsoft announced its acquisition of Italian connected products specialist, Solair, last week.
Source: iCrunchdatanews; Motley Fool
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Takeaways from CABA Intelligent Building & Digital Home Forum
IoT was top of mind at the Continental Automated Buildings Association (CABA) annual Intelligent Buildings & Digital Home Forum. By Keith Tamboer
At this year’s Forum, more than 150 attendees from companies and organizations which are working to drive adoption and growth in connected homes and intelligent building systems gathered to discuss the opportunities and challenges associated with IoT within commercial buildings and homes. There were featured panel discussions, track sessions, and workshops highlighting the impact of IoT for the wide range of providers and users of intelligent buildings and connected home technology and services.
Automated building solutions are not new. Building managers and property owners already have a wide range of options related to building operations systems, including management and control of temperature, ventilation, lighting, building access, parking, elevators, and room occupancy. The promise and challenge of IoT within building and home management is to unite the disparate and siloed facility systems into an integrated whole, providing a new level of insight into building operations to enable greater control, lower maintenance costs, increased operational efficiency, and improved occupant experience.
Takeaways
Like all things IoT, technology and sensors don’t make a building smart. Building managers and owners need to adopt a new operating model with clear goals and objectives driven by insight from data. Data management and analytic competencies need to be cultivated and developed for the new model to take hold. The evolution is as much cultural as it is technological. Adopting an approach to maintenance that is predictive rather than reactive and preventative represents a big shift. For example, servicing of HVAC systems will continue to include scheduled maintenance, but will also
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include notifications and alerts based on data analysis that indicate potential problems prior to an outage or system failure. That could mean less structured staffing schedules and the need for more flexible arrangements with the contractors and vendors that perform the work.
Current Barriers
A recent JBA study on the state of the IoT market revealed that security is the top barrier to growth in IoT. Not surprisingly, security was high on everyone’s list of concerns at the CABA forum. Traditional automation systems are typically self-contained and operate outside of the corporate IT network, but IoT and the convergence of systems and data, puts these operations on corporate networks and create new security risks. Recent security breaches, such as those at Target and Home Depot, have made potential buyers hesitant to open up their networks and have propelled network security to the forefront as a top priority for IoT deployments.
Interoperability is another top barrier to growth in IoT and intelligent building systems. Tying together the facility security system to work with the HVAC and lighting systems represents a significant integration effort. Because building equipment and systems are typically self-contained, accessing system functions and relevant data could be a daunting task. Needless to say, the question of whether or not to deploy intelligent buildings system and what services and which vendors to choose are no longer just building operations issues, but also IT issues.
Final Thoughts
There is a push to make building smart. Cost benefits related to energy consumption – particularly related to cooling and heating – are a significant opportunity among businesses to reduce expenses; according to the U.S. Department of Energy, more than 50% of energy is consumed across commercial and industrial sectors. Also, many companies have made commitments to reduce carbon emissions and to be
Commercial & IndustrialBuilding Figures in U.S.
—There are nearly 6 million commercial buildings & indusTrial faciliTies in The u.s.
—The combined annual energy cosTs for u.s. commercial buildings & indusTrial faciliTies ToTal $400 billion each year.
—30% of The porTion of energy consumpTion in These buildings & faciliTies is used inefficienTly and or unnecessarily.
source: energysTar
friendlier to the environment. Property and corporate real estate managers are now tasked with turning those commitments into reality. To use a phrase I heard at the CABA Forum, “green is green”.
So, just like every other IoT market, making buildings smart is complicated. Deploying intelligent building solutions within new construction is relatively easy, but the overwhelming majority of commercial buildings in the U.S. are old and would require retro-fitting, making it harder to make older buildings “smart”. And adopting a data-driven operations model requires a massive shift among property managers and building owners. But the benefits are clear – reduced costs, reduced risk, and an improved occupant/tenant experience. As companies increasingly look to drive innovation and collaboration among employees, they need the facilities to support those initiatives. Companies have long known that to differentiate themselves from the competition, they need smart employees. They also need smart buildings.
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Where is IoT in Oil & Gas?
While attending Entelec 2016 in Houston earlier this month, I was on the “Great IIoT Hunt”. Unfortunately, I came away with nothing more than small game. By Randy Field
As the Chief IoT Architect at James Brehm & Associates, one of my roles is to analyze IoT solution stacks for gaps. At Entelec, I looked for the conference gaps in the oil & gas markets, content, exhibitors and attendees, which led to what currently isn’t present or visible.
The Sessions
Although there were 8 conference sessions with Industrial IoT (IIoT) content, the exhibitors’ promostions of IIoT was where the conversation ended. The conference sessions talked about the security risks, promise, and cultural change facing the Energy industry. The key word is “talked”. The sessions that I attended did a fair job of identifying the challenges. The speakers were knowledgeable and credible regarding traditional SCADA systems – but many struggled where IoT was concerned and offered few actionable IIoT solutions. This leads to the question, is the Energy market ready to integrate IIoT and take advantage of its promise?
One comment at the conference questions PHMSA’s willingness to allow the use of IIoT systems due to its
limited data packet size and communication frequency. For instance, it was reported that PHMSA is considering a requirement for regular leak detection readings that far exceeds the limits of IIoT, as it relies on video streaming. While leak reporting should be a natural IIoT application due to the infrequency of actual leaks, potential infrastructure upgrades, costly installations, and large(r) data packets, make video a less viable IIoT application.
Where were Hewlett Packard & National Instruments?
Over the last 100 years of automation, process control, and monitoring, systems have progressed from manually read instruments to electronic instruments to SCADA boxes with multiple instruments connected through a common bus to telematics to M2M - and, now, IIoT. All systems are still used today in one form or another. Before moving to computers and printers,
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Hewlett Packard (HP) was an instrument company. When electronic instruments emerged HP became the defacto standard by providing the end-to-end solution for process control and monitoring. Their end-to-end proprietary system locked out other market entrants with a limited instrument portfolio. This dominance continued when SCADA systems emerged. HP enjoyed upwards of 90% market share.
Consortiums emerged in the 1980s with a standard bus architecture for timing and triggering standard protocols for configuration, message-based communication, multi-chassis extension -and, other features. In 1986, National Instruments (NI) introduced LabVIEW for Macintosh, a graphical development software platform and user interface allowing engineers and scientists to graphically “wire” together processes. In 1992, NI released the first versions for Windows-based PCs and Unix workstations. The graphical interface greatly reduced development time. Through a global partnership LabVIEW quickly gained market share.
Hewlett Packard and National Instruments, however, did not have a presence at Entelec—even though they both have IIoT platforms.
Hewlett Packard Enterprises has introduced a new HPE
Energy Management Pack, the first vertical-specific application for the HPE IoT Platform. Telecommunication and utility companies can securely provide home automation and energy control to consumers, industries, and municipalities. The platform enables customers to build for and capture new value from the proliferation of connected devices and benefit from new revenue streams, faster time-to-value – and, a lower Total Cost of Ownership (TCO).
On August 4, 2015, NI announced its next-generation control systems optimized for IIoT. The system is based on LabVIEW’s reconfigurable I/O (RIO) architecture.
HP’s and NI’s absences from Entelec was curious.
Motorola Solutions Attempts to Save the Day
Motorola Solutions was an exhibitor at Entelec. The outside wall of the booth had a header: Industrial Internet of Things. Below the header, there was a table with two computer displays. When I asked if the content was actually intended for IIoT, the response was that it was – but it was no different than what Motorola Solutions had been providing for the last 40 years. Their IIoT offering included traditional SCADA and M2M – plus, “IIoT partners” that provide end-to-end solutions. A few of the partners were at the booth. Thankfully, they did not attempt to label their solution as a “platform”.
A Look to 2017
One conclusion for Entelec 2016’s gaps could be placed firmly on the downturn in the energy market. Marketing, conference, and travel budgets have been slashed. However, the questions surrounding the realistic applications for IIoT in the Energy market and the market’s enthusiasm for IIoT remains in question. It will be interesting to see the progress made at Entelec 2017.
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Fun Facts:Urbanization and Oil & Gas
Urbanization Drives Building AutomationUrbanization is one of the key drivers for wanting to improve building automation on a massive scale. As more people flock to metropolitan areas, causing rural communities to shrink, cities are going to have to figure out better ways to manage the increasing strain on resources. Here are some examples of the impact of urbanization:
—In 1880, only 2% of the population was urbanized, but by 2030, 60% or more is expected to live in urban areas. Source: UN.
—Urban growth is expected to double in less developed regions over the next few decades, increasing about 2.3% per year. Source: UN.
—In 1970, Tokyo and New York City were the only megacities, today there are 13. Source: UN.
Oil & GasThe need for improved sources of fuel have been a part of the human experience for thousands of years: Throughout time, we have transitioned from bark and wood to animal oils, and finally to oil and gas as we know it today. Our dependency on it has been incorporated into our society in so many ways, that it is hard to imagine a world wihtout it. Oil & gas’s legacy has definitely left it’s mark on engineering, transportation, and much much more.
—Oil has been used by people for more than 5,000 years, and was even used to treat illnesses such as gout and frostbite. Source: DoSomething.
—Ancient cultures used crude oil for binding or waterproofing various materials and surfaces. Source: InvestigatingAnswers.
—The Trans-Alaska Pipeline has shipped more than 16 billion barrels of oil since it came online in 1977. Source: InvestigatingAnswers.
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Heading to Israel
That’s right, later this month, I will be heading to Israel to meet with leaders and innovators in the IoT ecosystem of Startup Nation.By James Brehm
In providing strategic advice and insights to our clients, and in helping the media to further advance the narrative of the IoT ecosystem, it is vital to travel to places where early stage innovation is unfolding.
During the week of May 22- 26, I will be in Israel with our new team member Alan Weinkrantz, Senior Advi-
sor and Brand Ambassador, to meet with startups, VCs, service providers, carriers, industry organizations, R&D teams at universities, and government officials who are part of the IoT space.
I’m looking at new ways where IoT has the potential to impact industrial, agriculture, water, transportation, asset tracking, fleet management, and, of course, security.
Israel has over 300 major R&D centers and, after the U.S. / Canada and China, it ranks number 3 in the world for NASDAQ publicly traded companies. The infographic above, and this well though out brief from Innovation Endeavors, best summarizes the state of the ecosystem.
While this journey is very much about discovery and connecting the dots, it’s our firm’s mission to not only help you do the same, but to look further ahead and explore potential collaboration with those we will cross paths with. If there is a specific issue or insight you are looking for in advance of my trip, or if there may be a particular focus area you want us to explore on your behalf, please let me know.
I will be posting content, and in traveling with Alan, we’ll have a daily briefing in his column in the startup section of The Times of Israel where we will share our journey.
We want to make this journey meaningful and beneficial for you. Let me know what might be on your radar and where I can help you. Because of you, and that you are a valued client, this journey is possible.
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Smart Cities Innovation Summit, June 13-15 Austin
Learn from city leaders, technology & solution providers, investors, and innovators fromaround the world to address the interdependent needs of building progressive urban communities. Join us in working on IoT projects for the next generation of smart cities solutions.
IoT Evolution, July 11-14 Las Vegas
IoT Evolution will be held again at Caesar’s Palace in Las Vegas, NV. Here, major IoT players of all portions of the stack will get together to hear the most current trends, chalenges, and innovations in IoT. There will be several opportunities for networking and, of course, the greatly anticipated Battle of the Platforms.
If you are interested in meeting with James Brehm & Associates please contact [email protected] in order to set up a meeting date and time.
Come See Us
James Brehm & Associates (JBA) is a consulting and marketing intelligence firm that provides project-based and retained strategic advisory services to technology companies worldwide. With a firm focus on the Internet of Things (IoT), Machine-to-Machine (M2M), and Big Data Analytics, JBA provides actionable insight and direction to a wide range of organizations including Communication Service Providers, Hardware Manufacturers, Software Vendors, OEMs, Private Equity, and Venture Capital Firms. Through projects on market size and share, competitive intelligence, product development, go-to-market strategy, and client-specific consulting services, we help companies reach their maximum potential. http://www.jbrehm.com
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