The Internet of Things, or IoT, finds its way into a lot of conversations these days. CES in Las Vegas last week was awash with internet-connected doo-dahs, including cars, fridges, televisions, and more. Moving away from the home and into the world of business, the IoT furore continues unabated. Instead of connecting cars to Netflix or a teen-tracking insurance company, we connect entire fleets of trucks to warehouses, delivery locations, and driver monitoring systems. Instead of connecting the domestic fridge to Carrefour or Tesco or Walmart in order to automatically order another litre of milk, we connect entire banks of chiller units to stock control systems, backup generators, and municipal environmental health officers. And then we connect the really big things; a locomotive, a jet engine, a mountainside covered in wind turbines, a valley bursting with crops, a city teeming with people.
Wind turbines in Ayrshire. (Source: Paul Miller)
The IoT hype is compelling, pervasive, and full of bold promises and eye-watering valuations. And yet, despite talking about connected cars or smarter cities for decades, the all-encompassing vision remains distant. The reality, mostly, is one in which incompatible standards, immature implementations, and patchy network connectivity ensure that each project or procurement delivers an isolated little bubble of partially connected intelligence. Stitching these together, to deliver meaningful views — and control — across all of the supposedly connected systems within a factory, a company, a power network, a city, or a watershed often remains more hope than dependable reality.
Connected medical devices are transforming healthcare. Unfortunately, security is too often an afterthought for the clinical engineering and business technology (BT) management teams implementing these revolutionary new technologies. In a recent report, Forrester predicted that 2016 will be the year we see ransomware for a medical device or wearable. This is a delicate thought, considering: 1) the Healthcare Industry is actually behind on data security compared to other industries and 2) the FBI highlighted the risk posed to medical devices in their recent public service announcement: Internet Of Things Poses Opportunities For Cyber Crime.
This research initiative seeks to answer the following: Are there real threats posed by the emergence of connected medical devices? What can you do to protect your patients and employees from life threatening breaches? Is there an underground market for medical device exploits? This research will publish in early 2016 and will be featured in my talk at the RSA Conference this March.
We are looking for research interview candidates to support this initiative, specifically security professionals working in a healthcare setting or medical device security vendors with current solutions on the market. In exchange for your time, we will provide you with a complimentary copy of the final research. While anyone who participates will have the opportunity to be listed as an interviewee in the final report, all interviews will be treated as confidential unless expressly instructed otherwise.
The hordes gathered in Las Vegas this week, for Amazon's latest re:Invent show. Over 18,000 individuals queued to get into sessions, jostled to reach the Oreo Cookie Popcorn (yes, really), and dodged casino-goers to hear from AWS, its partners and its customers. Las Vegas may figure nowhere on my list of favourite places, but the programme of Analyst sessions AWS laid on for earlier in the week definitely justified this trip.
The headline items (the Internet of Things, Business Intelligence, and a Snowball chucked straight at the 'hell' that is the enterprise data centre (think about it)) are much-discussed, but in many ways the more interesting stuff was AWS' continued - quiet, methodical, inexorable - improvement of its current offerings. One by one, enterprise 'reasons' to avoid AWS or its public cloud competitors are being systematically demolished.
Consumers are implementing connected home activities one gadget at a time - Forrester surveys show that about 13% of US online adults use one or more smart home device. But unlike mobile, where a brand new technology established a new category, smart home products will transform existing home markets, such as insurance, energy, health, water, and food, rather than create a new one.
Sure, Apple and Google will battle to be the dominant app interface and software platform – but they won’t be controlling or taking over those markets. Instead, individual companies will soon be experimenting with how to promote and even subsidize smart home products to create interactive relationships with their customers that simply weren’t possible before. Liberty Mutual and American Family just started subsidizing Nest Protect smoke detectors in return for monthly confirmation that the homeowner is keeping them on and connected to Wi-Fi. Similarly, grocers and food brands such as Nestlé and Unilever will begin promoting smart devices, like the Drop baking scale, and recipe filled apps to encourage shoppers to keep coming back.
Emerging smart home devices will perform 13 activities that can be organized into two domains: crucial background activities that automate everyday tasks like environmental comfort, home access, and home safety, or fun and helpful foreground activities that sustain engagement, such as entertainment activities, cooking and health management, and monitoring family members. Clients can see more details and many examples in our report, The Smart Home Finally Blossoms.
Once a month I use my blog to highlight some of S&R’s most recent and trending research. This month I’m focusing on application security and asking for your help with some of our upcoming research into the security and privacy risks associated with Internet of Things (IoT). IoT is any technology that enables devices, objects, and infrastructure to interact with monitoring, analytics, and control systems over the Internet. The illustrious and debonair, Tyler Shields (@txs), will lead our research into IoT security, but as the risks become more and more concrete for various verticals, you can expect the entire team to engage in this research.
Take our IoT security survey and talk with our analysts! If you contribute to the emerging IoT market, please fill out this brief survey (http://forr.com/2015-IoT-Security-Survey). Participants will receive a complimentary copy of the completed research report and we'd be happy to interview anyone who would like to discuss IoT and security in detail. Be sure to reach out to Tyler (firstname.lastname@example.org) or Jennie Duong (email@example.com) if you’re interested.
Survey data from Forrester Research indicates that Internet of Things (IoT) solutions may finally be ready for ‘prime time.’ Business Decision Makers (BDMs) report that IoT has become a top business priority and they are assessing solution feasibility and, in some cases, already investing. IoT will be driven by the business side of the house, but a close collaboration between business and technology management stakeholders is a prerequisite for success. Forrester believes that IoT will ultimately serve as a driving force for the Business Tehcnology (BT) Agenda by changing processes, skills, and the mindset of technology management organizations.
Forrester Business Technographics® runs a series of annual surveys with business and technology decision-makers measuring technology adoption plans, drivers, barriers and buyer behaviors. Let’s take a closer look at how adoption plans for IoT have evolved over the past year.
Compared with 2014, BDMs surveyed in 2015 were more than twice as likely to report they would begin IoT investment within the next 12 months, 50% more likely to report they were currently implementing or piloting IoT and dramatically less likely to be unfamiliar with IoT adoption plans or report they were not familiar with the technology. In 2015, 49% of BDMs reported that the expansion of IoT initiatives was a “high” or “critical” organizational priority over the coming 12 months.
Recently, in The New Yorker, Mary Powell, CEO of Green Mountain Power, a small energy company in Vermont, told a story of customer-obsession. Her customer-obsession starts simply: Help customers reduce their energy footprint at no net cost. Green Mountain accomplishes this by investing hugely in the latest and best technology, to pull electricity from the sun, insulate the bejesus out of the house, run massively efficient heat pumps, and micro-manage the draw on the power grid draw. Yes, the capital expenses and labor costs are immense. But when you reduce a home's energy footprint by 85%, you reduce the $250 electric bill by 85% -- or more than $25,000 over 10 years.
Green Mountain Power has a customer-obsessed culture and a customer-obsessed operating model. But it also has become expert in using technology to win, serve, and retain customers. The company is technology-obsessed, often out ahead of even the pundits when it comes to the latest technology. Green Mountain Power unites all three forces to be customer-obsessed: culture, operating model, technology.
The same is true for every company and government. Igniting a culture of customer experience is important. Relentlessly improving the operating model to put customers first is also important. But without the right customer-serving business technology in place, customers will be stuck with ancient web sites, cranky mobile apps, pathetic call centers, and disempowered employees.
Often considered the poster child of digital transformation, APIs are proliferating at enterprises making industry-leading investments in mobile, IoT, and big data. As these initiatives mature, CIOs, CTOs, and heads of development are coming together with business leaders to manage and secure companywide use of APIs using API management solutions.
Forrester recently released a report that sizes and projects annual spending on API management solutions. We predict US companies alone will spend nearly $3 billion on API management over the next five years. Annual spend will quadruple by the end of the decade, from $140 million in 2014 to $660 million in 2020. International sales will take the global market over the billion dollar mark.
In interviewing vendors for this piece of research, we discovered a vast and fertile landscape of participants:
Startups have taken $430 million in venture funding, and so far have realized $335 million in acquisition value. In April 2015, pure-play vendor Apigee went IPO and currently trades at a valuation north of $400 million.
We are now only a few weeks away from Mobile World Congress, historically the pre-eminent event of the mobile industry and now one of the largest global events across all industries. Last year’s even attracted almost 90,000 attendees from over 200 countries. The event draws representatives from mobile operators, device manufacturers, technology providers, vendors, content owners and governments from across the world. Executives from all industries pay attention to products demonstrated and announcements made. While “mobile” remains in the event title, last year’s event marked a changing of the guard: The large presence of car manufacturers and the buzz around Facebook reflected that shift away from the event’s telecom roots. This year that shift will be even more pronounced as the reign of mobility gives way to the new rule of connectivity. Yes, we are mobile but the key is that while we are roaming the halls at work or the streets of a foreign city, we remain connected to the people and things we want and need to interact with.
The CES Tech West Expo has a number of specific areas of coverage including fitness and health, wearables, connected home, family safety, and some young innovative companies located in the startup area of the section. I spent a few hours interviewing and discussing the Internet of Things (IoT) with as many vendors as I could find. I had many good laughs and shed a few tears during the process. To describe the process, the general communication would go something like this:
Me: "Can you point me at the most technical person you have at your booth? I'd like to talk about how you secure your devices and the sensitive / personal data that it accesses and collects."
Smartest tech person at the booth: "Oh! We are secure; we [insert security-specific line here]."
Me: "Never mind . . ." (dejected look on my face).