Internet of Things | Paul Wallbank - Communications Professional

Buying into the Internet of Things

Blackberry and Zebra Technologies buy into the Internet of Things as part of a push into a growing industry

Following Google’s acquisition of smarthome startup Nest in January, it was clear that 2014 was going to be the year that the Internet of Things dominated corporate takeovers.

This week has shown that with Blackberry announcing a stake in medical technology firm NantHealth, obstensibly as an Internet of Things play as CEO John Chen explains;

The NantHealth platform is installed at approximately 250 hospitals and connects more than 16,000 medical devices collecting more than 3 billion vital signs annually. Think about the possibilities when an enormous amount of data and computing power is accessible to doctors in the palm of their hands.

As Chen points out, the possibilities for this data are huge which raises questions about the privacy and security issues for patients along with the importance of having stable software and networks.

The other big Internet of Things acquisition yesterday was Zebra Technologies buying Motorola’s enterprise division for over three billion dollars, again the buyer cited the opportunities in connecting machines.

An interesting aspect is these acquisitions aren’t being made by the big players – Cisco, Google, Microsoft or Apple – but by smaller, but still substantial, players. It shows just how wide the Internet of Things’ applications are.

Blackberry and Zebra won’t be the only big acquisitions this year.

Peak Wireless and the data paradox

Have we reached the limits of wireless internet?

Australia’s government research agency, the CSIRO, released a somewhat alarming media alert this morning warning that our cities are approaching Peak Data.

Peak Data, which borrows from the ‘Peak Oil’ term coined in the 1970s to describe the point where oil production reaches a maximum, is where we run out available bandwidth on our wireless networks.

The release is around the agency’s new report, A World Without Wires, where the agency lays out its view of the future of cellular and radio communications.

“In the future, how spectrum is allocated may change and we can expect innovation to find new ways to make it more efficient but the underlying position is that spectrum is an increasingly rare resource,” says the CSIRO’s Director of Digital Productivity and Services Flagship Dr Ian Oppermann.

“With more and more essential services, including medical, education and government services, being delivered digitally and on mobile devices, finding a solution to “peak data” will become ever more important into the future.”

The wireless data paradox

It’s a paradox that just as we’re entering a world of unlimited data, we have limitations of what we can broadcast wirelessly as radio spectrum becomes scarce and contested.

With fixed line communications, particularly fibre optics, available spectrum can be relatively simply increased by laying down more cables – wireless only has one environment to broadcast in – so finding ways of pushing more data through the airways is what much of the CSIRO’s paper addresses.

For telecommunications companies, this presents both a challenge and an opportunity; the challenge being squeezing more data into limited spectrum while the opportunity lies in charging more for guaranteed connectivity.

The latter raises questions about network neutrality and the question of whether different types of traffic across wireless networks can be charged differently or given differing levels of priority.

Distributing the load

This also gives credence to the distributed processing strategies like Cisco’s Fog Computing idea that takes the load off public networks and can potentially hand traffic over to fixed networks or point to point microwave services.

While M2M data is tiny compared to voice and domestic user needs, it does mean business critical services will have to compete with other users, both in the private Wi-Fi frequencies or the public mobile networks spectrum.

Overall though, the situation isn’t quite as dire as it seems; technological advances are going to figure out new ways of stuffing data into the available spectrum and aggressively priced data plans are going to discourage customers from using data intensive applications.

A key lesson from this though is those designing, M2M, Internet of Things or smart city applications can’t assume that bandwidth will always be available to communicate to their devices.

For the Internet of Things, robust design will require considering security, latency and quality of service.

Evangelism and the makers’ movement

Salesforce’s Reid Carlberg talks tech Evangelism, the Internet of Things and the Makers’ Movement

The latest Decoding the New Economy interview is with Salesforce’s Reid Carlberg.

During the interview with Reid we cover how the Internet of Things and big data is changing business and society along with the journey to becoming a software company’s evangelist.

Reid has a fascinating story to tell about how the makers’ movement is evolving as big data and the internet of things develops.

The interview is an insight into a winding career path and how Big Data and the Internet of Things is changing business and society.

Kickstarter and ownership

Has Kickstarter funded startup Oculus discredited crowdfunding with its sale to Facebook?

The purchase of virtual reality headset designer Oculus by Facebook has raised some interesting questions about crowdfunding sites.

As the Wall Street Journal reports, many of those who contributed to the Kickstarter campaign that Oculus ran now feel betrayed by the company selling out to the social media giant.

Founder Palmer Luckey explained the companies sale to the WSJ as a quest for more funds; “a lot of people don’t understand how much money it takes to build things — especially to build hardware.”

Crowdfunding is tough

That ties into what founders have told Decoding the New Economy about crowdfunding startups; it’s tough and it easy to underestimate the capital required to launch a project.

Ninja Blocks’ Daniel Friedman told Decoding the New Economy last February that the main thing the company had learned from its successful Kickstarter campaign is that crowdfunding is a good way to raise funds for specific projects but a lousy way to fund a business.

Moore’s Cloud wasn’t as successful as Ninja Blocks and in his Decoding the New Economy interview, founder Mark Pesce described how he’d “rather eat bullets” than crowdfund a hardware startup again.

Startups are always hard, but it’s difficult not see how the high moral purpose often citing from Kickstarter project founders clashes with the ruthless moneymaking of Silicon Valley.

Discrediting crowdfunding

The criticism of Oculus also illustrates how crowdfunding lies between traditional investment and sales; those contributing to crowdfunding projects are true believers, not just customers and certainly not investors in a legal sense.

In recent times Kickstarter has been discouraging hardware startups from using their service; mainly because of the high risk of failure and disaffected contributors. The unhappiness with Oculus vindicates that move.

Oculus’ sale to Facebook may make many Kickstarter contributors doubly wary of Silicon Valley style startups trying to raise funds through crowdsourcing campaigns.

Lords of the Digital Manor

Looking at Oculus’ move, it’s hard not to conclude we’re seeing another cynical version of the Lords of the Digital Manor business model where enthusiasts are exploited by entrepreneurs looking for the big Silicon Valley pay off.

For Kickstarter and the other crowdfunding platforms, this is a problem as cynicism about the motives of those posting projects is probably a greater risk than the fear of being ripped off.

It may well be that Oculus marks a big change in the types of projects that get successfully funded, certainly the next hot hardware startup that tries crowdfunding is going to find things much harder.

Sense-T and the Tasmanian economy

Tasmania’s Sense-T is a brave project to reinvigorate the state’s economy through the internet of things

On Networked Globe I have an interview with Sense-T’s director, Ros Harvey.

Sense-T is a project to connect the entire state to the internet of things using a sensor network monitoring soil, water and other environmental conditions to help the state’s agriculture and business communities.

Harvey’s ambitions for the project are high where she sees Sense-T even having the potential of rekindling the interest of the state’s students in science and technology courses.

It’s a brave project that means a lot to a state that’s doing it tough.

Moving from an industrial era to a data age

Cisco Vice President Wim Efrink describes the opportunities with the internet of everything

The last two weeks have been pretty hectic with Cisco, Salesforce and Microsoft events in Melbourne, as a result there’s a huge backlog of posts to put up.

One of the interviews that has worked out is with Cisco’s Vice President for Globalisation, Wim Elfrink, which is up on the Decoding the New Economy YouTube channel.

In it Wim covers how the next wave of upcoming nations, the TIPSS – Turkey, Indonesia, Poland, Saudi Arabia and South Africa – threaten to leapfrog the developed world and the opportunities for businesses in a world where everything is connected.

Garbage In and Garbage Out

The success of using Big Data depends upon the quality of both the data and the algorithm

UK tech site The Register reports that Google Flu Trends has been dismal failure with the service over-reporting the incidence of influenza by a factor of nearly 12.

The reason for this problem is the algorithm used to determine the existence of a flue outbreak is that it relies on people searching for the terms ‘flu’ or ‘influenza’ and it turns out we tend to over-react to a dose of the sniffles.

Google Flu Trends’ failure illustrates two important things about big data – the veracity of the data coming into the system and the validity of the assumptions underlying the algorithms processing the information.

In the case of Google Flu Trends both were flawed; the algorithm was based on incorrect assumptions while the incoming data was at best dubious.

The latter point is an important factor for the Internet of Machines. Instead of humans entering search terms, millions of sensors are pumping data into system so bad data from one sensor can have catastrophic effects on the rest of the network.

As managing data becomes a greater task for businesses and governments, making sure that data is trustworthy will be essential and the rules that govern how the information is used will have to be robust.

Hopefully the lessons of Google Flu Trends will save us from more serious mistakes as we come to depend on what algorithms tell us about the data.

Apple’s long game

Apple are playing the long game with their internet of things strategy so they aren’t panicking into a smart watch

It’s always risky to make predictions about Apple, particularly when they are silly. The company plays a long game and isn’t known for panicked releases of me-too products.

Time is ticking for Apple to announce an iWatch, say analysts is a good example of a silly prediction about Apple’s future products and something that’s quite rightly criticised by Daring Fireball’s John Gruber.

As I’ve pointed out before, the watch market is tiny compared to the smartphone with the entire global wristwatch industry’s sales making up only one-seventh of Apple’s iPhone sales.

Part of the problem with stories like CNBC’s is the tech media’s focus on consumer goods, particularly in the internet of things and wearable technology markets.

Analysts like those quoted in CNBC’s story fall for this fallacy and overlook that the IoT market profits are going to come from the backend, B2B applications of the technologies.

With Apple we’re already seeing this with iBeacon being deployed in sports stadiums and shopping centres – Apple’s recent partnership with United Airlines to provide inflight entertainment is another step towards locking up business deals.

There’s no doubt those business deals will flow into the consumer market and an iWatch may well be part of Apple’s longer plan to lock customers into their products.

However claiming Apple have 60 days to launch an iWatch is plain silly, particularly when you have a company with a track record of not being panicked into launching me-too products and playing the long game.

Can the community secure the Internet of Things?

Can the community secure the internet of things? Cisco’s Christopher Young believes so.

As more devices become connected Cisco Systems hopes the security issues can be addressed by the developer community.

“The Internet of Everything is not only turn every company into a technology company but its going to force every company to truly become a company that delivers security,” says Christopher Young, Senior Vice President of Cisco’s Security Business Group.

Speaking at the Australian Cisco Live! Conference in Melbourne today, Young described how business is going to have to change the way it treats the data it collects from sensors.

“Not just in consumer security,” continues Young. “If I’m using technology or I’m delivering a service that’s leveraging technologies like cloud or connected devices and creating information about individuals or organisations through these connected devices then a consumer or enterprise is going to expect a level of security.”

Young sees three major ways that security is becoming more challenging for organisations; changing business models, a dynamic threat landscape and increasing complexity.

The latter point is the area that focuses many executive’s attention in Young’s experience with audiences he speaks to nominating complexity and fragmentation as their greatest concern.

“They get so many products and so many devices and so many tools and so much complexity they really don’t know, in so many cases, where to focus their efforts.”

Young cites Cisco’s Chief Security Officer, John Stewart, that the most fundamental security defence is getting the basics right.

Earlier this year at the release of the company’s 2014 security report, Stewart spoke to Networked Globe on how businesses are struggling with the complexity they face.

“Even the most sophisticated and well funded security teams are struggling to keep on top of what’s happening,” Stewart said.

This problem ties into the other areas that Young identifies, particularly the ‘industrialisation’ of the malware world.

“We have more well funded, more innovated, more determined adversaries than we’ve ever had as an industry.

“It used to be some high school kid in his room trying to infect a bunch of machines with viruses or some guy from Nigeria sending you an email asking you for a hundred bucks and he’ll give you a thousand bucks later.

“The world we live in today has nation states and criminal syndicates and very well funded, very sophisticated attackers so hacking has become an industrialised activity.” Young says, “here’s supply chains involved, there’s support agreements written; the bad guys will even sell each other a contract.”

Young’s views echo those of Sophos Labs’ Vice President Simon Reed who said last year that “now there’s money involved, there’s serious effort, the quality of malware has gone up.”

Part of the solution Young sees involves getting the community involved which is the motivation behind the Cisco Security Challenge announced last week.

“You can only just guess and imagine what all the different security challenges will look like in a world that’s just starting to get formed.”

“Let’s get the community involved in trying to solve some of the problems that we know are going to be inherently introduced by IoE.”

Tomorrow Starts Here

Managing big data is one of the future skills of business.

Today was the main day of the Melbourne Cisco Live Conference; the company’s annual Australian event.

Much of the talk was around the Internet of Everything — which will be the basis of subsequent posts — with a constant theme around the explosion of data.

A favourite statistic was that of Cisco’s Executive Vice President who pointed out that US Department store Walmart collects 2.5 Petabytes of customers data every hour.

The reason for this was pointed out by GE’s Australia and New Zealand CIO, Mark Sheppard, who pointed out that twenty years ago jet engines had few sensors while today they have hundreds, a point also made by Team Lotus’ Engineering Director Nick Chester to Networked Globe.

Chester observes that when he started in Formula One racing two decades ago, there were four or five sensors on a racing car; today Lotus’ vehicles have over two hundred.

All of these sensors are creating massive amounts of data and the big challenge for businesses is to manage all of this information, something we’ll be exploring over the next few weeks.

Eliminating the donkey work

Ross Mason, founder of Mulesoft, sees Big Data as one of the challenges facing business

Mulesoft founder and CTO Ross Mason worries about how companies are going to manage the data generated by the Internet of Things.

“I don’t think we’re ready for the amount of data that these devices are designed to build up,” Ross observes in the latest Decoding the New Economy video.

Ross’ aim in founding Mulesoft was to eliminate the donkey work in connecting IT systems and he sees the data moving between enterprise applications being a challenge for organisations

“We have energy companies that have connected their smart grid systems to their back end systems and most of them delete almost all the data because of the cost of storing that much data without doing anything with it.”

“Big data is still in the realm of we’re figuring out the questions to ask.” Ross states, in echoing the views expressed by Tableau Software founder Pat Hanrahan a few weeks ago.

“There’s a little bit of hype around big data right now, but it’s a very real trend;” Hanrahan said. “Just look at the increase in the amount of data that’s been going up exponentially and that’s just the natural result of technology; we have more sensors, we collect more data, we have faster computer and bigger disks.”

The interview with Ross covers his journey from setting up Mulesoft to the future of big data and software. It was recorded a few days before the company announced a major capital raising.

Mulesoft’s elimination of software ‘donkey work’ is another example of how the IT industry is changing as much of the inefficiencies are being worked out of the way developers and programmers work.

In many ways, Ross Mason’s story illustrates how the software industry itself is being disrupted as much as any other sector.

The Internet of Racing Machines

Formula One racing gives us a glimpse of the technologies that will be commonplace in businesses in the near future.

For the Formula One racing circuit, the financial crisis of six years ago was an opportunity to reinvent the sport; today the teams use a combination of technologies to gain an advantage over their competitors.

“A few years ago you wouldn’t have been here today,” Francois Puentes, Head Of Account Management at Team Lotus told a group of journalists ahead of this week’s Melbourne Grand Prix. “F1 was a completely different sport.”

The 2009 financial crisis was the catalyst for the changes Puentes says; “we all sat down as teams at the same table to make the sport more sustainable, this obliged us to run the sport as a business.”

“Before we didn’t know what the unit cost was for a part. We would very often produce two of the same parts without even knowing what was going on.”

To tighten their management systems, Lotus bought in a range of cloud based business software such as Microsoft Dynamics and also accelerated its adoption of computerised manufacturing techniques.

Speeding up development

Lotus employs over 500 people to keep its two cars on the road and most of the vehicles parts are designed and manufactured at its headquarters in Oxford, England. During the season the team’s workshop may produce up to five hundred replacement or redesigned components each week.

This brings together a number of technologies including Computer Aided Design, 3D Printing and cloud computing.

The internet of racing machines

Massive rule changes have also accelerated Formula One’s adoption of in car technology with information being gathered from sensors throughout the vehicles.

During races data is transferred from the vehicles’ sensors by radio for the teams’ crews to analyse performance. This includes information like gear box temperature, tyre condition, and aerodynamic performance data.

Following the race larger volumes of data are downloaded from the vehicle for engineers to tune the car for the next event.

While Lotus has teamed with technology companies like Microsoft and EMC, rival team Caterham partnered with GE whose Global Research team worked to integrate the technologies demanded by the new F1 rules.

Global technology

Caterham’s cars use intercoolers developed in Germany, carbon fibre composites and fibre optic sensors from the United States, and big data analysis techniques developed in India.

Key to gathering that data are sensors throughout the vehicle that capture a constant stream of data about forces acting on the car during the race, transmitting this information in a far more efficient way than traditional methods which relied on load sensors attached to the suspension.

The result is massive volumes of raw data. On the track, Caterham cars generate 1,000 points of data a second from more than 2,000 data channels. Up to 500 different sensors constantly capture and relay data back to the team’s command centre for urgent analysis.

Learning from Big Data

By applying what the company has learned from its Industrial Internet projects, GE was able to help Caterham cut its data processing time in half, leaving the team in a stronger strategic and tactical position.

Thanks to these analysis techniques, the Caterham team can look at slices of its data across an entire season, pinpoint setups that were particularly effective, and identify reliability issues earlier.

Inside the vehicle, GE has also found a way to replace metal pipes with carbon fibre, reducing the overall weight of the vehicle.

These technology developments will continue to find applications beyond the 2014 Grand Prix season.

Carbon composites are being used extensively in the aviation industry and big data analysis is playing an important role in the renewable energy sector.

Lewis Butler, Caterham’s chief designer, says working with GE is helping the team deepen its skills base.

“GE are working with Caterham to help with the manufacturing process and knowledge transfer, and giving Caterham F1 Team the capability to manufacture its own parts,” he says.

All the Formula One teams are using Internet of Things technologies to gather information on their vehicles, Big Data tools to manage that information along 3D printing to accelerate their research and manufacturing processes.

The Formula One world is a glimpse into the future of business as various technologies come together to change the way industries operate.

Paul travelled to the Melbourne Grand Prix as a guest of Microsoft and Team Lotus.