Recent IoT Market Developments and Stakeholder Strategies

Business models, eco systems and value chains

ETSI M2M WORKSHOP 9 December 2015

Mr. Avihai Degani, Chief Executive Officer

The Total IoT Opportunity Will Be USD4.3 Trillion By 2024

• IoT services create a substantial

opportunity

• IoT (and M2M) will be huge, and will

disrupt almost all aspects of enterprise

Source: Machina Research 2015

Rapid Growth To 27bn connections In 2024

• 5 billion connections in 2014 and there will be

27 billion in 2024, a CAGR of 18%

• 69% of connections in 2024 will be short range

(e.g. in-building PLC, WiFi, Zigbee, Z-Wave)

• Cellular accounts increase from 256 million at

end of 2014 to 2.2 billion connections in 2024

• By 2024 3G takes 21% and 4G/LTE 54%,

driven by higher bandwidth requirements and

need for future-proofing

Global IoT connections 2014-2024 by technology

Source: Machina Research 2015

Pipe

IoT VAS

Everything is Connected

Privateconsumers

Devices

Gateways

OTT

Enterpriseusers

CSPIoT VAS

Big Data

InfoContent

CSP’s Path to Monetization

Carrier Cloud Customer Base QoS Security

CSPGovernmentCityUniversityHealthcare

Leveraging the Assets for Any Service B2C, B2B & B2B2C Cloud-based

Consumer / User

TransportationAutomotiveEnergyPublic Safety/HLS

Enabling the Eco-System

• B2B & B2B2C

• Everything is connected

• Tailored to leverage CSPs offerings

CSP Cloud

CSPCSP

Network

Enterprise

Evolving From M2M To IoT

Connected devices and associated applications

Fixed solution parameters

Rigid solution architecture

‘Speed’ designed in where necessary

Applications in the context of verticals and niches

Data is meaningful in context

Structured data

Predictable growth (in connections and data generated)

Data ownership often clear

Complex applications and data analysis

Heterogeneity and flexibility of solution componentsDistributed and federated processing, storage and querying‘‘Speed’ needs to be supported as and when requirements emerge

Data disassociated from any source

Semantic richness, shared context and ontologies

Semi-structured and unstructured data

Unpredictable growth driven by network effects

Data ownership often very unclear

M2M IoT

Source: Machina Research 2015

From Connecting People To Everything is ConnectedFrom M2M to IoT/IoE

People People

Server

Content

WearablesCarsMeter

Sensors

Device

Enabling Revenue Acceleration

Private consumers One stop shop Any service, any device,

anywhere any time Voice, Video & Chat Smart & secured home Life style

Smart Metering

IPNetwork

IPNetwork

M2M

IoT

On-LineMeter Data

Big Data

Analytics

Utility Company

Utility Company

Using Data To:• Analyze consumer

behavior• Guide consumers

on saving options• Save utility on

Capex & Opex

Daily OrganizerCalendar

Daily Meetings

IPNetworkLocation Logic • Route & Traffic

• Navigator

Next Meeting Location

Advise on when to leave for next meeting

IPNetwork

Calendar Gasoline Status

Advise on when to leave for next meeting including gas station on route

• Route & Traffic • Gas Station• Navigator

Not enough gasoline to get to

next meeting please fill up tank

Healthcare

Health Care Service

Doctor

• Receive Info• Analyze• Communicate with Patient

Info

Voice, Messaging, Video

PatientMedical Device

Home Medical Test Result

Patient Patient Related ContentMed

Database

Air Quality Alert1. Bad air quality alert received from sensors

2. System determines effected area and severity

3. Operator assesses the situation

Limited impact

Extensive impact

Inform citizenssuffering from COPD or Asthma

Activate evacuation plan

Solution ArchitectureServices EngineCommunicates with Communication Networks, Things & DataConverges all types of DataExposes Services Oriented API

EnablersProvides with services enabling logic and data

Big Data and AnalyticsLogs/all services usage and operation related infoProvides with analytics info

Service LogicHandles the logic of all applications and Services

UI Handles the various User Interfaces

Enterprise UI

EXPOSECONVERGE

COMMUNICATE

VODNABGEOPush

Analytics

Big Data

EngineEnable

Serve

CommunicationNetwork

Things OpenData

EnterpriseData

Private UI

ConnectedLivingSocial

OnlineRCSVOD

Combined IMS & Data ArchitectureM2M/IoT

VAS

The New IP Network

Web Based Platform

IMS Base Platform

Rest APIISC

ifc Context Broker

SIPXMPPMQTT

HTTPCoAPMQTTGateway

Wearable's

Thank You

Mr. Avihai DeganiChief Executive OfficerIPgalleryAvihai.degani@ipgallery.com+1.516.606.0121+972.54.202.1001