1. IoT; Impact on the Network Gary Audin #806

2. What You Will Learn What is the Internet of Things (IoT) How will IOT be used Candidates devices Networks and impact Standards Security Issues Data analytics

3. Speaker Background Communications and security consultant for 34 years, delphi-inc@att.net, VN 703 908 0965delphi-inc@att.net Speaker at Enterprise Connect, ITExpo, IAUG, and 100s of user conferences Article and blog sites: – www.nojitter.com www.nojitter.com – www.webtorials.com www.webtorials.com – www.telecomreseller.com www.telecomreseller.com – www.acuta.org www.acuta.org – www.searchunifiedcommunications.com www.searchunifiedcommunications.com

4. Why Be Concerned Many new endpoints Inexpensive devices Management Network – Capacity – Speed – Number of endpoints – Coverage

5. IoT: How Big? By the end of 2015, 75% of the world population will have Internet access. So will 6 billion+ devices No industry or service will be exempt Data source, http://blog.bosch-si.com/the- internet-of-things-new-infographics/http://blog.bosch-si.com/the- internet-of-things-new-infographics/

6. IoT Use Building automation Energy management Transportation Inventory Lighting control Healthcare Advanced remote controls Retail/shopping services Telecom services

7. Candidate Devices Business – Machine tools – Vehicle fleets (trucks, busses) – Construction equipment – Healthcare – Wearable technology Consumer – Cars, RVs, campers, trucks – Home appliances – Wearables devices

8. IoT Devices Characteristics Small Long life: 5 to 10 years Long battery life; 3 to 5 years Low maintenance Inexpensive Most likely wireless May be embedded

9. New Business Model Product profits are limited by competition usually less than 10%. Replacement parts are more profitable. An example is the printer and ink cartridges. iPods were cheap. Music services made the profit. Replacement profits can be 25%+. Service profits can be 25%+ Device producers have an advantage because they are incumbents.

10. Wireless IoT Networks NetworkBandwidthEndpointsDistanceMesh? ZigBeeTo 1 Mbps65K100mYes ThreadTo 1 Mbps250100mYes Wi-Fi100s Mbps10s100mYes Bluetooth100s Kbps710mNo

11. IoT Layers

12. IoT Traffic Short messages Periodic or polled QoS for alerts and alarms All messages or summarized locally Streaming –Constant –Event driven

13. Network Impact Large number of IP addresses to manage Many small packets sent (status, event) Most devices will be always-on demanding a major number of sessions to be managed Wireless LANs can be overwhelmed Cell services may change charge structure because most messages will be short and periodic.

14. IoT Standards A standard is a document that defines a specific process, procedure, measurement, or production of something that is agreed upon by a group of people, governments, or organizations. The adoption of a standard produces interoperability, compatibility, safety, repeatability, and/or quality. The biggest hurdle are application level standards.

15. IoT Standards Groups ZigBee Alliance www.zigbee.orgwww.zigbee.org AllSeen Alliance https://allseenalliance.org/https://allseenalliance.org/ Thread www.threadgroup.org.www.threadgroup.org Open Interconnect Consortium (OIC) http://openinterconnect.org/ http://openinterconnect.org/ Industrial Internet Consortium (IIC) http://www.industrialinternetconsortium.org/ http://www.industrialinternetconsortium.org/ IEEE P2413 http://standards.ieee.org/develop/project/2413.html http://standards.ieee.org/develop/project/2413.html Wi-Fi Bluetooth “IoT Standards: Many, Not One” http://www.nojitter.com/post/240169489/iot-standards- many-not-one” http://www.nojitter.com/post/240169489/iot-standards- many-not-one

16. Security Concerns Endpoint access Data transport over networks Embedded applications Data longevity Risk longevity Safety, both personal and corporate Breach detection Breach prevention Problem resolution Laws and regulations

17. Security Objectives Authenticating the endpoint data sender (a network issue) Authenticating the data receiver (a data center or cloud service; a network issue) Controlling endpoint and receiver accessibility, ensuring that they are online or can be commanded to be online Ensuring that data content is sent correctly, is accurate, valid, and up to date; otherwise erroneous data leads to erroneous conclusions Protecting the confidentiality of the data collected as required using encryption

18. Security Problems First cyber attack using 100,000 home routers, multi-media devices, televisions, and at least one refrigerator. 25% of the devices hacked were home appliances 750,000 malicious e-mails sent

19. IoT Data Processing Edge device with remainder at data center Cloud service with service based applications Centralized enterprise data center –Vendor applications –Enterprise applications

20. Analytics Descriptive Analytics--What happened? This requires a low level of machine-based processing and high human involvement to interpret the data. Example: Rank the performance of all carriers, using risk-based KPIs, for a major shipper. Predictive Analytics--What will happen? Requires a higher level of machine processing to predict the possibility of something happening based upon an event and context of that event. Example: Revise the estimated time of arrival based upon the specific driver, vehicle, route and real-time location and weather. Prescriptive Analytics--What action needs to happen? This is where the real machine learning and automated decision support comes in. Example: Derive the optimal departure time for each day of week to minimize journey time

22. Selling Through the Car By 2017, 20 million cars will be Internet connected About 60% of new car owners can access apps By 2017, 45% of new cars will have embedded cell services Potential selling organizations – Banks – Insurance companies – Amazon – J C Penny

23. Mobile IoT Questions The enterprise collecting the M2M information will need an expanded mobile device management (MDM) capability especially for expenses. Are the MDM vendors ready? Will the mobile networks support QoS for emergency and health information? Do the mobile networks have the address capacity to connect the potentially billions of devices? How soon will they embrace IPv6 for endpoint addressing? How will M2M affect the mobile networks’ data plans? Will the data plans keep changing as they have in the past thereby changing the costs for the enterprise/ The IT staff will have to develop knowledge and experience with the M2M devices. With limited IT budgets can this be done? The amount of information produced will also place a burden on the data storage capacity at the enterprise. A difficulty is predicting the needed storage capacity.

24. Mobile IoT Resource Jennifer Kent of Parks Associates report “M2M: The Next Billion Mobile Connections” http://www.parksassociates.com/report/m obile-connections http://www.parksassociates.com/report/m obile-connections

25. London Underground Web enabled sensors Real-time control of assets like escalators for maintenance and repair Rapid response to changes and emergencies Real-time information to customers “Bringing the Internet of Things to the London Underground” http://www.youtube.com/watch?v=NYpdN Gl1hco http://www.youtube.com/watch?v=NYpdN Gl1hco

26. Technical Challenges Secure access control and endpoint/user authentication Identifying the endpoint accurately to avoid errors and spoofing IP address management – most organization will have 3 to 6 times more addresses to manage Adequate bandwidth to handle the increased traffic, also the high overhead encountered with short messages, and the keep alive messages for presence and endpoint management Endpoint software management and revisions

27. Who Manages What: IT or OT? Remote on premises devices and networks, most likely operations IoT data processing –If cloud, most likely operations –If enterprise data center, then IT

28. IoT Articles “IoT: Benefit or Headache for IT?” http://www.nojitter.com/post/240168781/iot-benefit-or- headache-for-it http://www.nojitter.com/post/240168781/iot-benefit-or- headache-for-it “The Internet of Things Will Change Your Business Model” http://www.nojitter.com/post/240163182/the-internet- of-things-will-change-your-business-model http://www.nojitter.com/post/240163182/the-internet- of-things-will-change-your-business-model “The Internet of Things Begets the Industrial Internet” http://www.nojitter.com/post/240166799/the-internet- of-things-begets-the-industrial-internet http://www.nojitter.com/post/240166799/the-internet- of-things-begets-the-industrial-internet “Mobile Internet of Things: An Explosion Soon” http://www.nojitter.com/post/240155503/mobile- internet-of-things-an-explosion-soon http://www.nojitter.com/post/240155503/mobile- internet-of-things-an-explosion-soon “Big Data, Internet of Things: The Network Impact” http://www.nojitter.com/post/240152248/big-data- internet-of-things-the-network-impact http://www.nojitter.com/post/240152248/big-data- internet-of-things-the-network-impact

29. Contact Information Gary Audin Delphi-inc@att.net Will be at Telecom Reseller booth