Internet of Things (IOT)What It Is and How It Will Impact State Pools

MAY 19, 2017

RYAN DRAUGHN, DIRECTOR OF INFORMATION TECHNOLOGY, NLC MUTUAL

STEVE READ, CLOUD ARCHITECT, MICROSOFT

NLC Mutual Insurance Company 660 Capitol Street NW Suite 450 Washington, DC 20001

“ ”

Source: Gartner IT Glossary

http://www.gartner.com/it-glossary/internet-of-things/

The network of physical

objects that contain

embedded technology to

communicate and interact

with their internal states or

the external environment.

Connectivity Data AnalyticsThings

25 billion Connected “things” by 2020—Gartner

IoT In Government

Public Safety Smart Cities Education Healthcare Environment Defense

$4.6 Trillion savings in operational costs— Cisco

Smart Cities Education Healthcare Environment Defense

Source: Redefining the Connected Conversation, IoT Trends, Challenges & Experience Survey. James Brehm & Associates, 2016.

60%Of those working on IoT are aiming to

grow revenue and profits

73%Of the companies surveyed are currently

active in IoT

50%Reduction in downtime with predictive

maintenance

According to a recent IoT survey…

Gathers data from sensors and systems to create valuable business intelligence and

reduce downtime by 50%

Cutting fuel usage by 1 percent could save $250,000

per plane per year

Chillers now run 9x faster than unconnected equipment, avoiding more than $300,000

in hourly downtime costs

Improves access to production and supply chain data

worldwide, reducing downtime costs by as much as $300,000

per day

Innovation at work – real world IoT use cases

Electric charging stations

Street sweepers

Postboxes

AircraftsAuto

Elevators

Factory floor

Oil equipment

Cows

Engines

Vending machines

Buildings

Fryers

Medical devices

Vaccine dispensers

Trucks

BusesDogs

Oil distribution

Smart meters

Internet of Things

Power plant

Surveillance

Power tools

Racing

Mining equipment

Smart grids

Devices, sensors, and actuators with the ability to collect and share data

AZURE REGIONS

30Azure regions around the world

Law enforcement agencies are investing in IoT technologies that act as force multipliers

DronesGunshot Detection

Camera Systems

License Plate Readers

Smart Weapons /

Holsters

IoT in Public Safety – Demo the Connected Officer

Azure IoT Suite

Device Connectivity & Management

Data Ingestion and Command & Control

Stream Processing & Predictive Analytics

Workflow Automation and Integration

Dashboards and Visualization

Preconfigured Solutions

Predictive Maintenance

Remote Monitoring

Cloud SecurityAzure Security Center

Azure Active Directory

Key Vault

Policy-Based Access Control

Connection SecurityX.509/TLS-Based Handshake and

Encryption

Device SecurityDevice Provisioning and

Authorization

Securely connect millions of devices . . .

Over a secure internet connection . . .

To Microsoft Azure – built with security from the ground up

Flight Monitoring

Global CoverageEfficiently track and monitor planes

globally while reducing cost and time.

AnalyticsUse near real-time performance telemetric

data from planes globally in flight to track

their health and location.

InnovationProvide a near real-time global alerting system.

Predictive Maintenance

EfficiencyUtilize efficient resource management,

resulting in time and cost savings.

ServicingUse performance telemetric data from

connected devices to schedule servicing

and innovate on design.

DifferentiationProvide differentiating customer

experiences based on the telemetric

data about customer usage.

Operations Maintenance

AcquireEfficiently capture real-time telemetric

performance data from globally located

smart-connected devices.

AnalyzeEngage global teams to analyze,

collaborate, and make decisions on data.

ControlControl the state and activities of the devices

remotely using modern applications.

Higher road pricing for shorter trip

Optimize road network

Public transportationA

B

50% of traffic flow

Highway Traffic Flow Analysis C

IOT

Impact pools from IT operational standpoint

IOT Considerations for Pools

• Data Storage – Massive amounts of information collected –How are you equipped to store?

• Data Security – Information coming from non-traditional means – Who will have access? How will you protect any sensitive information?

• Data Protection – Essential information may now become part of business operations – How will you ensure it is categorized and prioritized in your Disaster Recovery plans.

The Cloud plays a big role

• Provide massive economies of scale to drive down data storage costs.

• Many have developed PRIVATE cloud offerings that:• Enable data to not be co-mingled with other organizations.• Meets individual customer demands for retrieval practices.• Adheres to specialized compliance or regulatory demands

(PII,HIPAA,PCI)• Ensure storage inside of continental US.

• Allow for specialized service providers to develop software platforms built on their data storage foundation.

Types of Clouds

Private CloudsPublic CloudsHybrid Clouds

Public Clouds

A public cloud is one in which the services and infrastructure are provided off-site over the Internet. These clouds offer the greatest level of efficiency in shared resources; however, they are also more vulnerable than private clouds.

Ex. Gmail, Dropbox, SaaS Applications

Source: http://www.dummies.com/programming/networking/comparing-public-private-and-hybrid-cloud-computing-options/

Private Clouds

A private cloud is one in which the services and infrastructure are maintained on a private network. These clouds offer the greatest level of security and control, but they require the company to still purchase and maintain all the software and infrastructure, which reduces the cost savings.

Good when data privacy and security are crucial.

Source: http://www.dummies.com/programming/networking/comparing-public-private-and-hybrid-cloud-computing-options/

Hybrid Clouds

A hybrid cloud includes a variety of public and private options with multiple providers. By spreading things out over a hybrid cloud, you keep each aspect at your business in the most efficient environment possible. The downside is that you have to keep track of multiple different security platforms and ensure that all aspects of your business can communicate with each other.

Your company wants to use a SaaS application but is concerned about security. Your SaaS vendor can create a private cloud just for your company inside their firewall.

Source: http://www.dummies.com/programming/networking/comparing-public-private-and-hybrid-cloud-computing-options/

Landscape in 2017Hybrid Clouds & Industry trends

Business usage of SaaS, Hosted and Cloud Solutions becoming commonplace

• Google Docs

• Office365

• Azure/Onedrive

• Amazon Web Services

Hybrid Clouds leading the way

• Former “public cloud” providers offering robust solutions for specific industries concerned with privacy and security.• Ex. Microsoft Azure Government Cloud

Major Vendors will continue to push customers to their SaaS offerings

Claims and Policy Management Application Vendors are no exception

Beyond the CloudMany industry experts are predicting machine learning, serverless

environments, and a focus on data will be the “future” of cloud computing over the next several years.

Eric Schmidt, CEO of Google states, “the amount of innovation we will see in the next five years will exceed all the innovation we’ve seen in all prior years. Schmidt went on to make a few more predictions:

The platform is not the end, it is the bottom. Machine learning is on top and will be the technology that will drive the transformation.

NoOps will become mainstream.Serverless architectures will be the next wave of computing.

http://www.forbes.com/sites/mikekavis/2016/03/25/google-provides-a-glimpse-into-the-future-of-cloud-computing/#5b2753f5529f

Questions?