internet of everything | Paul Wallbank - Communications Professional

Have we over-consumerised IT?

One of the phenomenons of the modern technology industry is the ‘consumerisation of IT’, but have we taken that trend too far?

I’ve spent today at the opening of the 2013 Dreamforce conference in San Francisco talking to various people about where the IT industry is going.

The dominant thing at this year’s conference is the “internet of things” or, as Salesforce are marketing it, “the internet of customers.”

What’s notable in this view is the marketing and consumer centric view of the IT world, something not surprising given Salesforce’s roots as a sales and marketing service, despite last year showing off the social media connected jet engine at last year’s conference.

Salesforce aren’t alone in this view, most conversations about the tech industry revolve around marketing and advertising. Last week’s Telstra’s Digital Summit was notable for focusing almost exclusively on brands and social media while missing the point that digital business is far more than just adopting online marketing channels.

For most industries, the marketing and direct consumer connection is only a small part of how technology, not least the internet of machines, is transforming business with manufacturing and supply chain management two areas that are being totally changed with high stakes and big money involved.

Cracking the enterprise market is hard, which is why most startup tech businesses focus on the customer market and the relatively easy, albeit cash poor, advertising and premium revenue streams.

While the focus is often on the consumer and mass-market side of the web and internet of machines, the real money, and change is in the business sector. This is exactly how most of today’s tech giants — Microsoft, IBM, Oracle and Salesforce to name a few — came to be where they are today.

There’s no doubt the consumerisation of IT was a real phenomenon, but it may be that it’s currently being overplayed. We need to think beyond marketing when considering how technology is changing our businesses.

The ghost in the internet of machines

What happens when your internet connected egg tray gets a virus?

A funny thing happened two hours out of Auckland, the cabin crew on the Air New Zealand flight to San Francisco announced the inflight entertainment system had to be rebooted.

In the thirty minutes it took for the system to reset and reload, various in-seat functions such as the cabin call button and light switch froze, it was a basic example of how complex systems interact with each other.

The benefits of a connected egg tray involve the device telling us when more eggs are needed, but what happens when the thing tries to tell your online shopping service that you need 200 dozen?

As the internet of things develops and business systems become more automated, complexity is going to become greater and more subtle. Understanding and managing the risks that extend from that is going to be essential for both public safety and the economy.

“The Internet of Things creates a whole new range of attack surfaces” Cisco Systems’ Enterprise Group Vice President Rod Soderbery told the Internet of Things conference in Barcelona last month.

One of those many ‘attack surfaces’ identified by Fraser Howard, Principle Researcher of Sophos Labs are the dozens of household devices from smart TVs to internet connected egg holders that are beginning to appear in homes.

Almost all these devices will have flaws in their firmware and yet almost no vendor has an interest in maintaining or patching the firmware of this equipment.

“Consumers have no way of managing this problem” says Fraser as it’s almost impossible for householders to upgrade their systems and consumer electronics manufacturers have a poor track security track record.

“There’s a long history of companies with mass market items which deal with things like important items like credentials where they have not had a single thought about security,” says Fraser.

Security is one the many challenges facing the internet of things along with to manage rogue devices in grid networks. There’s a lot of work to be done in ensuring systems aren’t disrupted by an outlier sensor or critical information disclosed by a poorly secured or out of date smart device.

As connected egg trays start talking to the supermarket, we have to be confident that we aren’t going to come home to find our connected device hasn’t delivered a pallet load of fresh eggs or that it hasn’t given away our banking details to an organised crime ring.

ABC Nightlife Computers – explaining the internet of things

For the November 2013 Nightlife, we look at the Internet of things and smart cities

Paul Wallbank joins Tony Delroy to discuss how technology affects your business and life. For the November 2013 Nightlife spot we’ll be looking at the internet of everything.

If you missed the show, you can listen to the recording at the Nightlife website.

The internet of everything is the next big thing in the tech industry, but what how is it any different from the web we know today that’s given us cute pictures of cats, Twitter and the end of newspapers? Some of the questions we’ll cover include;

what exactly is the internet of things?
how is it different from today’s internet?
is this just another tech industry slogan like big data or social media?
things like aircraft have been connected to the net for years, why is this suddenly news?
what sort of machines are we talking about connecting?
some industry pundits are saying this business could be worth $14 trillion dollars, where do they get this number from?
how are governments looking at using these technologies?
During the week it was reported Google have patented a tattoo with an embedded microphone.
so what happens when viruses get into our wearable technologies and connected fridge?

Part of the show will cover the geek’s tour of Barcelona and the interview with Antoni Vires, Deputy Mayor of the city on how the Spanish industrial centre sees it’s role as a connected city.

We’d love to hear your views so join the conversation with your on-air questions, ideas or comments; phone in on the night on 1300 800 222 within Australia or +61 2 8333 1000 from outside Australia.

Tune in on your local ABC radio station from 10pm Eastern Summer time or listen online at www.abc.net.au/nightlife.

You can SMS Nightlife’s talkback on 19922702, or through twitter to @paulwallbank using the #abcnightlife hashtag or visit the Nightlife Facebook page.

Building a protocol for smart cities

Can cities standardise the way they connect to the internet of things?

One of the challenges for governments with smart city technologies is that most administrations don’t know the questions to ask about them, the City Protocol initiative aims to address this problem.

During the recent Internet of Things conference in Barcelona, Barcelona Deputy Mayor Antoni Vives discussed the objectives of the City Protocol Initiative.

“The solutions for our problems are more or less the same,” Vives says. “The problems cities have is they are too weak to talk to big corporations to ask for the solutions we need.”

“So the idea is to set up standard solutions in the way the internet protocol did through agreements between cities around the world and then through these agreements we set up standards that can be developed anywhere around the world in a very cheap way in a physical way that can improve people’s lives.”

The cities protocol already has fifty cities signed up to the protocol and partnerships with corporations ranging from Cisco to Schneider and Microsoft along with universities such as the MIT, the London School of Economics and the University of Chicago

Barcelona’s city government was instrumental in setting up the protocol following a visit to Cisco’s head office in 2012.

“We went to San Francisco and we explained to these guys, ‘we have a plan for our city, why don’t you join us?’ Provided that we convert this plan for Barcelona into something applicable and scalable for any city in the world.”

“What you have in Barcelona is something we want to scale and replicate anywhere in the world,” Vires proudly states. “The technology you see in Barcelona is something you’re going to see in ten years time in Addis Ababa, Quito, Johannesburg or Moscow. That’s the real revolution.”

Vires sees the smart city technologies changing the way councils and governments work with citizens, “we have discovered that rather than going from the administration to the citizens, going from the citizens to the people improves our own models. We never forget these guys are the people who pay our wages.”

“If you put a device in the city that can talk to them, then people are going to interact with the city in a way they have never done.”

As well as seeing it changing the way governments communicate with people, Vires is enthusiastic about what technology can do for his council delivering services to residents

“I have to have the best tools in my hands to deliver a better quality of life for my people.”

There are some risks though with the smart city technologies, particularly that of inclusion with less advantaged, immigrant or older age groups. Vires tells a story to illustrate how this is a priority for the city.

“We installed the smart bus stop,” says Vires. “There was an old woman and this bus stop has slots to charge mobiles and that old woman went to the slot, took a penny from her pocket and tried to put the penny into the slot as she thought she had to put a coin into the slot to make it work.”

“We have to make sure that that old woman understands that device is there to serve her, not to put coins into but to give her a better service.”

The old lady’s story illustrates the challenge facing all governments in implementing new technologies in making sure that everyone has access to the new services. Addressing the problem of equal access will probably be one of the greatest tasks facing the Cities Protocol team.

Building smart cities

Barcelona has a big vision for the city’s future as Deputy Mayor Antoni Vires describes.

What will the connected cities of the 21st Century look like and how will they provide service for even their most disadvantaged residents?

The latest Decoding the New Economy Video features an interview with Antoni Vives, Deputy Mayor of Barcelona, about his community’s journey to become a smart city.

What’s striking about talking with Antoni is how passionate he is about Barcelona’s future and the importance of the city building new industries around the digital economy.

Particularly notable is the administration’s vision for the city which combines Barcelona’s traditional industries, such as the port, with future technologies.

“Barcelona has to become a city of culture, creativity, knowledge but mainly fairness and well being,” says Antoni when asked on where he sees his city as being in ten years time. “I would love to see my city as a place where people live near where they work, I would love to see the city self sufficient in energy and it should be zero emission city.”

“Rather than having a pattern of PITO – ‘Product In, Trash Out’ we should move to what we call the DIDO model – ‘Data In Data Out’.”

It’s a broad view for the future which many other city and state governments will be watching closely.

A swarm of electronic dragonflies

A Spanish startup shows how the internet of machines is changing the business world having installed their sensors into everything from space ships to koala bears.

“Libelium comes from Libelula which means dragonfly,” says Alicia Asin, of the sensor company she co-founded with David Gascón. “The company was named after a swarming insect.”

“We try to solve the problem of dealing with a lot of different sensors and a lot of different protocols and different information systems so we created a hardware platform that sends any information using any communication protocol to any computer system.”

Bootstrapping a global business

Particularly impressive about Libelium is the business has grown to a global brand employing 40 people since 2007 when Alicia and David founded their business on their meagre savings.

“We started with literally wïth nothing, just 3,000 euros which is all you have when you are twenty-four” says Alicia.

After raising funds through some grants and investors, the company got on with selling their products.

“We never wanted to be a company where it’s comfortable for three years without making money so we shipped a product in seven months.”

“We realise now how smart that was.”

Agriculture and smart cities

Connected cites and agriculture are the sectors Alicia sees as being the greatest opportunities for the company.

“I think that cities are very interesting, not because of the technology but what it really means,” says Alicia. “If you are able to have a dashboard of the city’s performance and governments are willing to apply open data then you are really promoting transparency.

“That’s the best legacy of the Internet of Things.”

In Agriculture Alicia sees opportunities in high value crops like vineyards, “we can reduce the amount of fertilisers, we can prevent illnesses in vines and you can even design the type of wine as you can control the amount of sugar in the grapes.”

For Spain, companies like Libelium represent the future of the nation’s industry. “We really need to re-invent the country,” says Alicia.

“I’m always saying that Spain is becoming the Silicon Valley of Europe when it comes to smart cities. Not only in Barcelona but you also have Santander, you have Malaga, Madrid and Zarazoga.”

So it may be that along with a swarm of Libelium sensors, Spain also has a swarm of smart cities. It may be enough to re-invent the country along with the agriculture industry and local governments.

With more bootstrapped startups like Libelium, Spain may even build its own version of Silicon Valley.

IT becomes the plumbing

As the internet of everything and cloud computing takes over, IT is becoming just like the plumbing. This is a good thing.

One of the things that jumped out of last week’s smart city tour in Barcelona is that Nicholas Carr’s IT Doesn’t Matter is coming true — IT is now the plumbing.

That’s not to depreciate IT, it means the technology is now becoming so embedded in society and business that people no longer notice.

Like roads, electricity and water people assume it will be available but don’t notice the massive effort or investment required to make sure these services work.

With cloud computing, pervasive internet and connected devices, most business never need to see an IT worker.

For telco executives, IT managers and tech support people this is a blow to their egos as they always wanted their industries to be more than utilities.

In one way being a utility legitimises IT as it makes the industry more important than just a bunch of geeks playing with computers.

That also means that things have to work, ‘best effort’ services no longer cut it when you’re a utility and things have to work 99.99% of the time. Just like in plumbing.

Becoming the plumbing could be the best thing that happened to the IT industry.

Redefining what’s possible – Cisco and the Internet of things

Cisco Systems is making big bets on the internet of everything

“You might call us naïve, but we’re looking at changing the world,” Cisco CEO John Chambers told journalists at the Internet of Things World Forum in Barcelona yesterday.

That’s a big, hairy audacious goal which sounds feasible when the company estimates 50 billion devices will be connected to the net by the end of the decade in an industry worth 14 trillion dollars.

Given the size of the market there’s a concern that different standards will affect the industry.

One objective of Cisco holding its event in Barcelona was to start the process of creating standards around the connected devices as the company’s futurist, Dave Evans, pointed out that getting WiFi standards agreed early meant the technology was quickly accepted as users could be confident of their systems talking to each other.

Regardless of the standards adopted, the Internet of Things is already growing with industries from mining to logistics connecting their equipment. This is improving productivity and speeding up the supply chain.

The effects on industries promise to be huge.

Chambers’ message to CEOs was blunt, “by the time it’s obvious you have to move, it’s too late. Have the courage to think big. Have the courage to take risks.”

For Cisco the Internet of Things is probably not a risk at all, as the company that dominates the market for the equipment that is the plumbing of the net will almost certainly profit greatly from the adoption of connected equipment.

Other businesses won’t be in such a good position as their industries change and it’s worthwhile listening to Chambers’ advice.

Defining a technology hierarchy of needs

Should broadband be considered an essential human right?

Speaking at the Internet of Everything conference in Barcelona today, Cisco CEO John Chambers described broadband as a basic human right.

This is an interesting, and somewhat provocative, idea. While there’s no doubt ubiquitous internet is an essential service in an advanced economy and increasingly critical to most industries, calling it a basic human right is a big call.

Perhaps we need to consider there is a kind of technological order of services, something similar to Maslow’s Hierarchy of needs.

In the tech sector the most basic is electricity as without power all this technology is useless.

Sitting above this are the core infrastructure like the cables, ducts, telegraph poles and subsea cables.

Then perhaps there is the internet itself including the routers, switches and base stations which keep the internet running.

Above those are the connected devices — the smartphones, the robot mining equipment and the internet fridge.

Processing all the data these devices generate is the job of the data centres and cloud computing services which make the internet of everything work.

So perhaps to describe broadband as a fundamental human right is overstating things when a large proportion of humanity doesn’t have access to reliable electricity or drinking water.

What’s interesting watching John Chambers talk is how passionate he is about the Internet of Everything, so much so he’s betting the company on it.

It’s understandable that John Chambers and Cisco would consider broadband internet to be one of life’s essentials as it is critical for the company’s growth and survival but for humanity we should remember that some technologies and services are more essential than others.

Does the Internet of things need a killer app?

Cisco System’s search for an Internet of Everthing killer app may not be necessary.

Today was the opening of Cisco System’s Internet of Things conference in Barcelona, Spain and in the morning sessions there was constant question of what will be the killer app for this range of technologies.

A killer app is the application that drives adoption of a new technology – for the Personal Computer, it was spreadsheet programs that made systems attractive to company accountants and from there the PC made its way into the workplace.

Right now, you’d have to say parking systems are the great hope for the industry and this makes sense in that it’s an easy to explain to the general public and it helps solve an ongoing problem for local governments.

But does the Internet of Everything really need a killer app?

The Internet of everything is the coming together of various different technologies — cheap processors, pervasive internet, cloud computing and big data are all reasons why the concept has taken off.

In fact, many of the applications aren’t new, telemetry systems have been around since the early days of networks and even parking technologies like number plate recognition and space meters have become common over the last decade.

Across industries like logistics, mining and agriculture the Internet of Things or Machine to Machine (M2M) communications has been steadily growing with each new generation of connected equipment.

The difference with the next wave of technology is that devices are smarter and able to talk to each other which is where companies like Cisco see the opportunity of tapping into what they believe will be a 14 trillion dollar market by the end of the decade.

What concerns many in the industry is the risk of the technologies become proprietary islands where each major company has its own standards that don’t talk to the others.

The risk of vendor lock in is probably greater than the search for a killer app, indeed there’s no particular reason why anyone should be waiting for a compelling application to come along.

Instead of waiting for a killer app it’s probably better for industries to find their own uses for these technologies and steadily implement them.

While Cisco are almost certainly right about the impact of the Internet of Everything, it’s one of these pervasive technologies that changes everything in ways that aren’t immediately apparent like the motor car or the internet itself.

Breaking the break-fix business model

Fixing broken products was a profitable business for many companies, the Internet of Everything is changing that industry model.

One of the most profitable areas for many companies has been in fixing broken products, now the internet of everything promises to put an end to that business model.

‘Break-fix’ has always been a good profit earner with business ranging from construction companies to washing machine manufacturers making good money from fixing failed products.

Speaking at a lunch in Sydney earlier today GE’s CEO of Global Growth and Operations, John Rice, described how the Internet of Everything is changing in the industrial landscape.

One of the big business changes Rice sees is in the ‘break-fix’ model of many industrial suppliers.

“We grew up in companies with a break fix mentality,” Rice says. “We sold you equipment and if it broke, you paid us more money to come and fix it.”

“Your dilemma was our profit opportunity,” Rice pointed out. Now, he says engineering industry shares risks with their customers and the break-fix business is no longer the profit centre it was.

Goodbye to the TV mechanic

This is true in many other industries as products become both more reliable and less economical to repair – the local TV repairman has largely vanished and the backyard computer support businesses are going the same way.

For many businesses, this means a change to how they service their customers and the nature of their operations. For many, it means close monitoring of their products will be essential to manage risk.

Rice also flagged how grid computing will improve the reliability of equipment and networks citing how giant wind turbine talk to each other.

“Every wind turbine has an anemometer on top that’s used to judge wind speed and direction,” says Rice. “If you had a problem with the anemometer the wind turbine shut down until someone could come out – maybe a week later – to climb to the top of the turbine, diagnose the problem and start the thing back up.”

“Today the technology is such that the wind turbines talk to each other so if you’re in a wind field of thirty turbines you don’t rely on one anemometer,” points out Rice. “This is a very simple example of machine to machine interface.”

Wind turbines and the road toll

Rice’s example of wind turbines talking to each other is similar to Cisco’s scenario of using the internet of everything to reduce the road toll where cars communicate with road signs, traffic lights and each other to monitor conditions on the highway ahead.

Those machines talking together also give early warnings of problems which reduces downtime and risk for industrial users, it also means less money for businesses who’ve made money from those problems.

Intel’s challenge to find a new message and market

Can Intel adapt to the post PC marketplace where the old Wintel dominance no longer matters

Twenty years ago people cared about the specifications of their computers and chip maker Intel led the industry with its marketing of 486, Pentiums, Pentium Duos and Pentium IIs.

As we come to the end of the PC era, the consumerisation of technology and the rise of cloud computing mean customers no longer care about what’s inside their systems and Intel is struggling to find a new message.

Over the last few months Intel have been showing off their latest range of Central Processing Units (CPUs) to enterprise and small to medium business (SMB) groups. Last week the company hosted an SMB event in Sydney that illustrated how Intel is struggling to cut through the market.

Speaking at the event was Steph Hinds – an evangelist for cloud computing – who told the story of how her Growthwise accounting practice was flooding out during storms.

Because her systems were on the cloud Steph and her staff were able to work from home and local cafes while the landlord fixed her offices. Had Growthwise been using a server based system the business would have been crippled while her IT people implemented a disaster recovery plan.

Steph’s story in itself illustrated the Clean, Well Lighted Place argument for cloud computing and also showed how Intel is struggling to sell its PC and server upgrade cycle message in an era where that business model is dead.

This didn’t stop some of the other speakers at the small business event trying to sell the idea that upgrading computer systems and retaining an IT support company were essential to small business success but it’s a message that was valid a decade ago.

For Intel the challenge is to find a new message – it may well be that the company’s future lies in supplying the powerful CPUs that run data centres, or maybe the low energy and maintenance chips required to control the billions of intelligent devices that will run the internet of everything.

The company’s launch of their Galileo board – a tiny computer designed to compete in the intelligent devices market with the likes of the Raspberry Pi – is a step in the latter direction and shows Intel is exploring the possibilities.

Wherever Intel’s future lies, it doesn’t lie in trying to sell a business model that is quickly going the way of the Brontosaurus.

During most of the PC era, it was the Wintel partnership that dominated the computer industry, now Microsoft have realised this fundamental market change and started their journey to become a devices and services company.

The challenge now lies with Intel to decide where their journey will take them in a post PC world.