1. Creating an IoT Partner Practice
Partnering for IoT
Stephen DiFranco March 10, 2017

2. AGENDA It is really that big – IoT TAM Models
An IoT ecosystem – Nodes to Analytics
The IoT Players & Partnerships
How to get started
IoT Solution Partner Examples – Sight Machine / Kiana Analytics

3. Forecasting the IoT Evolution
The next evolution of compute is IoT
M&M estimates the IoT market will grow from $157.0B in 2016 to $ B by A CAGR of 33.3%. 
Bain predicts 2020 annual IOT revenues could exceed $470B for hardware, software & solutions.
McKinsey estimates the IoT semi market in 2015 was $900M, growing to $3.78B in 2020 a 32.6% CAGR.
Gartner estimates that 6.4 billion connected things were in use worldwide in 2016, up 30 % from 2015.
Gartner forecasts 20.8 billion connected “things” by 2020.
Gartner estimates that 5.5 million “new things” are being connected each day.
IDC predicts global IoT revenues will reach $7.065B by 2020 from $2.712B in 2015, a CAGR of 21.11%.
IHS forecasts that the IoT market will grow to 30.7B devices in 2020 & 75.4 billion in 2025.
General Electric predicts investment in the Industrial Internet of Things is expected to top $560 Trillion (including services) during the next 15 years.

4. IoT Bigger than PCs, Tablets & Smartphones
The next evolution of compute is IoT
Personal computer, smartphone and table demand are a function of the number of persons connected to the internet.
IoT connectivity will be grow at a significantly faster CAGR (>30%) and continue at that rate through 2020.

5. IoT Hardware, Apps, Analytics & Services
IoT is an ecosystem from node to network
20B connected devices forecasted by 2020 with a CAGR of 33%.
IoT services spend by corporations is expected to grow at 16% CAGR to $253B by 2020.
Today
Consumer IoT dominates commercial IoT in unit volume. Consumer & commercial IoT PaaS models launch
Excludes PCs, Tables & Smartphones.
Autonomous vehicles begin using a mix of wireless technologies incl p.
2019
The Serviceable (SAM) will grow driven by:
IoT devices unit ship volume will equal/exceed Smartphones unit ship volumes by 2020.
2020
Connectivity
Platforms
Security
Analytics
Services
20 Billion “Things” are connected to the internet.
Industrial and commercial IoT CAGR accelerate. Non Consumer IoT surpasses consumer in total value driven by service revenues.
Connectivity platforms of sensing, MCUs, memory & wireless TAM will represent a larger unit, revenue & profit pool than PCs & Tablets by 2020.
2025

6. The Connected Value of Things is…
Will follow IT “laws”
Governed by Metcalfe’s Law of Connected Devices
Moore’s Law will drive down its cost
The IoT market is estimated to grow from US$ B in 2016 to US$ B by A CAGR of 33.3%. 
the value of a telecommunications network is proportional to the square of the number of connected users of the system (n2)

7. IoT worldwide Market Spend is expected to be around $3T USD by 2020
20 Billion Units / $3 Trillion by 2020
IoT Total Units forecast, IoT total expected spend with consumer / industrial unit break down
IoT worldwide Market units are expected to exceed 20B operational units by 2020
IoT worldwide Market Spend is expected to be around $3T USD by 2020
billions
trillions
Gartner Unit Forecast 2015
Consumer IoT market will dominate unit volumes. Commercial will dominate service revenues.

8. IoT services spend by industry
IoT Services will be as large as IoT Hardware
Significantly more profitable
IoT services spend by industry
Source: Zinnov Research & analytics
IoT Services include:
System design
Integration
Data collection
Cloud Platforms
Data analytics

9. Consumer IoT Grows First
Energy, Entertainment, Security & Automation will crow in parallel because of common control and the value off systems working together.
234m HH by 2017
25m HH by 2017
$330 in 2017

10. Commercial IoT will be the Larger Market
ABI Research & BI Intelligence
Longer Growth
The B2B market will expand as companies & cities adopt cost savings through smart lighting, traffic monitoring and industrial control systems.
Device Deployment
Smart Gateways, Mesh Networks, deployable beacons, on premise IOT security, facility operations will dramatically accelerate B2B device deployment.
Focus Industries
Manufacturing monitoring, Retail on-site promotions, Smarter Healthcare devices are the richest IoT vertical markets.
Facility Operations
Manufacturing
Retail
Healthcare
Public Centers
Government
Commercial

11. Commercial IoT Heat Map by Industry & App
No single industry will dominate IoT
Forrester shows no “breakout” IoT applications but rather specific area of focus including industrial asset management and production sensing.
Transportation & logistics have hot spots in inventory and feet management . This will be combined with adoptions of autonomous assisted driving and mapping.
Healthcare, manufacturing, retail & wholesale will be early adopters of IoT solutions.
Longer team city and federal governments will hire service companies to deploy IoT based lighting, metering, security and sensing solutions.
Source: Forrester’s Global Business Technographics®
Networks And Telecommunications Survey, 2015

12. Retail & PoS IoT

13. AGENDA It is really that big – IoT TAM Models
An IoT ecosystem – Nodes to Analytics
The IoT Players & Partnerships
How to get started
IoT Solution Partner Examples – Sight Machine / Kiana Analytics

14. Nodes to Networks

15. IoT functions like a 4 Layer Network

16. IoT Sensors

17. IoT Gateways

18. IoT Clouds Control over Nodes Management of Gateway
Provisioning of Updates
Compute / Storage

19. AGENDA It is really that big – IoT TAM Models
An IoT ecosystem – Nodes to Analytics
The IoT Players & Partnerships
How to get started
IoT Solution Partner Examples – Sight Machine / Kiana Analytics

20. An IoT Ecosystem IoT Edge IoT Data Center IoT Nodes IoT Platforms IoT
Services
IoT Gateways
Compute & Storage
Integrated Services
Compute to the Edge
Mesh & Star Network
OTA Updates to Nodes
Expertise in Sensor to Cloud
Security & Mgt. Services
Node Control & Deployment
IoT Modules
IoT Sensors
Simplifying Connectivity

21. AGENDA It is really that big – IoT TAM Models
An IoT ecosystem – Nodes to Analytics
The IoT Players & Partnerships
How to get started
IoT Solution Partner Examples – Sight Machine / Kiana Analytics

22. Building an IoT Partner Practice
Consulting
Installation
Cloud Services
Security/Analytics
Choose Verticals based on current customer base
Pick your IoT Services Partners
Choose your Node to Gateway to Cloud Client
Secure a Cloud IoT Contract for your Customers
Hire FAEs with Wi-Fi / BT / ZigBee / Gateway Experience
Run POCs to verify your platform
Convert to Revenue
IoT can be a multi-revenue business model

23. AGENDA It is really that big – IoT TAM Models
An IoT ecosystem – Nodes to Analytics
The IoT Players & Partnerships
How to get started
IoT Solution Partner Examples – Sight Machine / Kiana Analytics

26. Stephen DiFranco IoT Advisory Group sdf@iotadvistorygorup
Stephen DiFranco IoT Advisory Group