IoT market in 2015

Taken from www.machinetomachinemagazine.com article

IDC: Worldwide IoT Market to Grow 19% in 2015
M2M MAGAZINE+ | May 19, 2015

Spending projections include 25 use cases to provide insight on immediate opportunities for IoT technologies

The worldwide Internet of Things (IoT) market is expected to grow 19% in 2015, led by digital signage, according to a new forecast from International Data Corporation (IDC). The second annual forecast focuses on growing IoT use in 11 vertical industries, including consumer, retail, healthcare, government, manufacturing, transportation, and other industries, while also sizing IoT opportunities for 25 vertical-specific use cases.

Unlike any other research in the industry, the new forecast specifically highlights worldwide spending across IoT use cases, including smart appliances, automated public transit, remote health monitoring, digital signage, connected vehicles, and air traffic monitoring, among others. The comprehensive spending model was designed to help vendors clearly understand the industry-specific opportunity for IoT technologies today.

Other key findings from the new forecast include:

• The IoT market in manufacturing operations will grow from $42.2 billion in 2013 to $98.8 billion in 2018, a five-year compound annual growth rate (CAGR) of 18.6%. Growth will be driven by ongoing efforts to increase efficiency and link islands of automation.
• Digital signage use in retail outlets will grow from $6.0 billion in 2013 to $27.5 billion in 2018, a 35.7% five-year CAGR, as retailers continue to digitize the consumer experience.
• The hottest US market is in connected vehicles, with 34.8% year-over-year growth anticipated in 2015.

According to Bob Kraus, Senior Research Analyst, Global Technology and Industry Research Organization, IDC, “Working in concert with both IDC’s technology and regional analysts, we have built IoT market models for key vertical-specific use cases from the ground up. This forecast is an invaluable tool for those business leaders evaluating the vendor opportunities in IoT for a 12-layer technology stack, which includes modules/sensors, software, installation/ongoing services, and connectivity.”

A forecast update is planned for November 2015 and will evaluate additional vertical-specific use cases, including smart agriculture.



IoT Analytics Market to Reach $5.7 Billion in 2015
M2M MAGAZINE+ | January 14, 2015

A market analysis by ABI Research finds that the revenues from integrating, storing, analyzing, and presenting Internet of Things (IoT) data will reach US$5.7 billion in 2015. In the next 5 years, the market will expand dramatically, to an extent that in 2020 it is estimated to account for nearly one-third of all big data and analytics revenues.

Principal analyst Aapo Markkanen says, “About 60% of this year’s revenues come from three key areas: energy management, security management, as well as monitoring and status applications. Within these segments, we can generally find analytic applications that reduce the cost base of asset-intensive operations (condition-based maintenance), automate routine workflows (surveillance), or even enable new business models (usage-based insurance). These early growth drivers also have in common the fact that the economics of IoT connectivity align easily enough with the requirements of analytic modelling.”

Making sense of IoT-kind data from machines and sensors data comes often with its unique challenges, such as the need for time-series databases in storage, and for relatively deep domain expertise in analysis. These kinds of factors create a certain mismatch with many leading technologies that have been designed for more traditional, “digital-first” analytic environments. This, in turn, is attracting a flurry of startup-level activity aimed at filling the gaps.

According to practice director Dan Shey, “What is remarkable about this market is how much of the innovation actually comes from startups. Take, for instance, ParStream’s geo-distributed architecture, CyberLightning’s 3D visualization technology, or Peaxy’s work on software-defined data access. All three address some of the problems that usually come up in discussions with end-users. Meanwhile, of the more incumbent vendors likes of Datawatch, Informatica, Software AG, and Splunk seem well-positioned to seize the IoT opportunity.”

Top 10 Predictions for IoT and M2M in 2015
M2M MAGAZINE+ | January 2, 2015

Every year Machina Research makes a set of predictions for what will happen in the world of IoT/M2M. Here are Machina Researh’s Top 10 Predictions for IoT and M2M in 2015:

1. Enterprises will get cracking in IoT. We will see a lot more commercial deployments of enterprise IoT. There’s a huge amount more interest from a diverse range of enterprises. Until now it’s been exploratory. In 2015 it becomes meaningful. 
2. More productized offerings. There will be many more platforms and solutions enabling out-of-the-box connected devices. This area has been somewhat overlooked up until now, with everybody focusing on industrial/ application type platforms. Just enabling lots of ‘same’ devices to communicate may be less glamorous, but the numbers involved are huge.
3. More M&A. During 2014 we’ve seen a lot of interesting M&A, not least PTC acquiring Axeda, in addition to ThingWorx, as well as recent deals that saw Kore buy RACO Wireless, and Sierra Wireless buy Maingate. 2015 should see more of the same, particularly involving two types of companies. Data analytics providers will be increasingly appealing as companies seek to broaden their service offerings to include analytics capabilities. Meanwhile full service providers such as Numerex, Aeris Communications and Raco/Kore will become increasingly attractive acquisition targets. As the primary full-service M2M solution providers in the space, these mid-tier companies provide a crucial service path to enterprises looking to build and design IoT and M2M projects. 2015 will be the year of consolidation for these agile companies.
4. Breakthroughs in smart city service deployments. 2015 will be the year when we’ll see some real commercial success stories in smart cities, especially from services that save money. Street lighting is a good example because electricity consumption is a major part of the OPEX for the city. Machina Research’s new Smart Cities Research Stream delves into this area in much more detail.
5. Major OS vendors disrupt the connected car market. 2015 will be the year that one of the major OS players makes a disruptive intervention in the connected car market through an innovative after-market device and platform play. There are a number of interesting start-ups in this area with OBD-based propositions that are sound but sub-scale. Several look ripe for acquisition or emulation by the big boys.
6. Mobile phone as the gateway for IoT. Machina Research had already highlighted the possibility back in the beginning of 2014 that the smartphone would be integral to IoT, when for example looking at iBeacons and wearables. What will become even more interesting is when data analytics uses the mobile phone as one of many processing platforms for geo-distributed analytics (which it will be able to, given the processors and memory).
7. A year for avatars. This will be a very good year for avatars – digital representations of things that are open to standards-based Web APIs, thereby obviating the need for app developers to engage with connectivity protocols. Machina Research published a Research Note on one such firm, Evrythng, last year.
8. A crunch on regulation. Machina Research launched a service looking specifically at M2M & IoT Regulation in 2014 and it’s a critical area in 2015. Regulators are set to focus much more attention on M2M and IoT. This is both good and bad. There is a quicksand of regulatory uncertainty threatening to hold back M2M deployments, in particular around permanent roaming. We’ll also see more regulators wanting to adopt a nurturing approach to IoT. Machina Research will host a webinar on M2M and IoT Regulation on 20th January.
9. Segmenting for success and identifying role in IoT. It’s a function of the maturity of the sector that companies throughout the M2M and IoT value chain will increasingly realise that they can’t sell everything to everyone. Everyone selling into this sector will become more discriminating. This means all players will need to better define their role in the Internet of Things.
10. Privacy and security. Issues of privacy and security reach the top of the agenda. The complexity of IoT solutions will require a fresh way of thinking about security. Requirements will vary massively depending on the application, while the number of moving parts in any solution mean that there are a lot of potential weak links. Security will need to be considered on an end-to-end basis. Furthermore M2M and, particularly, IoT involve the widespread sharing of data. Understanding the dynamic and implications of all of that data sharing will be critical.

IDC Report: Worldwide IoT Predictions for 2015
M2M MAGAZINE+ | December 4, 2014

Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending

The predictions from the IDC FutureScape for Internet of Things are:

• IoT and the Cloud. Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending”.
• IoT and security. Within two years, 90% of all IT networks will have an IoT-based security breach, although many will be considered “inconveniences.” Chief Information Security Officers (CISOs) will be forced to adopt new IoT policies.
• IoT at the edge. By 2018, 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge, of the network.
• IoT and network capacity. Within three years, 50% of IT networks will transition from having excess capacity to handle the additional IoT devices to being network constrained with nearly 10% of sites being overwhelmed.
• IoT and non-traditional infrastructure. By 2017, 90% of datacenter and enterprise systems management will rapidly adopt new business models to manage non-traditional infrastructure and BYOD device categories.
• IoT and vertical diversification. Today, over 50% of IoT activity is centered in manufacturing, transportation, smart city, and consumer applications, but within five years all industries will have rolled out IoT initiatives.
• IoT and the Smart City. Competing to build innovative and sustainable smart cities, local government will represent more than 25% of all government external spending to deploy, manage, and realize the business value of the IoT by 2018.
• IoT and embedded systems. By 2018, 60% of IT solutions originally developed as proprietary, closed-industry solutions will become open-sourced allowing a rush of vertical-driven IoT markets to form.
• IoT and wearables. Within five years, 40% of wearables will have evolved into a viable consumer mass market alternative to smartphones.
• IoT and millennials. By 2018, 16% of the population will be Millennials and will be accelerating IoT adoption due to their reality of living in a connected world.

“The Internet of Things will give IT managers a lot to think about,” said Vernon Turner, Senior Vice President of Research. “Enterprises will have to address every IT discipline to effectively balance the deluge of data from devices that are to the corporate network. In addition, IoT will drive tough organizational structure changes in companies to allow innovation to be transparent to everyone, while creating new competitive business models and products.”

Indonesia e-commerce is the riskiest ? Good news or Bad News ?

Taken from internetretailer.com article

A global e-commerce fraud report ranks Indonesia as the riskiest for U.S. e-retailers

May 20, 2015, 3:04 PM
BY TRACY MAPLE Managing Editor, Digital Content

35% of transactions from Indonesia are fraudulent, and fraud rates exceed 10% in the five riskiest nations.

No country will clamor to claim such distinction, but five nations stand out as the most likely in percentage terms to produce fraudulent online transactions: Indonesia, Venezuela, South Africa, Brazil and Romania. That’s according to a new report that analyzed more than a million online transactions in 2014 to determine the rankings for countries other than the United States. The aim of the report was to advise U.S. e-retailers on which foreign countries pose the highest risk for attempted fraud.

In Indonesia, about 35% of e-commerce transactions are fraudulent; for Venezuela it’s 33%; South Africa’s rate is 25%; Brazil’s rate is 11%; and Romania’s is 10%, according to fraud prevention technology provider Forter, which compiled the report. On the flip side, the report ranks Denmark, New Zealand, Finland, Norway and Switzerland as the least-fraudulent countries.

In the U.S., the average e-commerce fraud rate is less than 1%, according to CyberSource Corp.

Forter analyzed online transactions over the course of 2014, including the sale of consumer goods, sales on online marketplaces, travel and other purchases, but excluding adult entertainment, says Noam Inbar, Forter’s vice president of business development.

“U.S. retailers have a perception that everything outside the U.S. is very fraudulent, and they will automatically blacklist most countries outside the U.S. and want to focus on domestic sales,” she says. The report aims to give retailers in the United States a “true picture of what’s going on outside the U.S.”  While it’s useful to understand which countries produce the fewest fraudulent transactions, she encourages e-retailers not dismiss consumers from nations with higher fraud rates. “Even though there are problems in those markets, there are ways to deal with them,” Inbar says.

“Things are changing so fast,” she adds. “New fraudsters are entering the scene these days, and we want retailers to take this information and combine it with their tools to make better decisions to balance their business goals and fraud management.”

The study also examined mobile transactions and discovered that fraud rates are twice as high for transactions made with Android devices than the iPhones and iPads that use Apple Inc.’s iOS. Criminals using mobile devices tend to attack via Android because the systems are more open and therefore easier to manipulate, according to Forter.

Other findings include continent fraud trends:

Europe’s fraud rate is slightly lower than the global average.
Asia’s fraud rate is similar to the global average.
Africa’s fraud rate is as much as 10 times higher than the global average.
South America has a fraud rate three times higher than the world average.

Forter says it does not include the actual average rate because the average is calculated and compared on a per-industry basis, and the average fraud rate varies significantly between different industries.

OTT vs VOD

From www.parksassociates.com

The average consumer watches 3.4 hours of OTT video per week
and 1.7 hours of pay-TV VOD per week

Telkomsel Big Data

Taken from www.rcrwireless.com
Telkomsel chooses Cloudera as big data platform


Telkomsel, Indonesia’s largest mobile operator, selected Cloudera, which it claims is the first unified big data platform powered by Hadoop, to help them become a higher-value broadband service provider.

Up until now, Telkomsel has been largely a voice and text message-based business, but is hoping this partnership will allow for faster data processing and decision-making that will help it better understand its customers.

The partnership is said to help Telkomsel better exploit the growing data volumes gathered from its 140 million subscribers in its legacy data warehouse. The company believes that the data, if properly harnessed, can provide valuable customer network insights.

The Indonesian operator is turning to Hadoop through Cloudera Enterprise to offload, extract and transform data warehouse operations to make them faster and more cost-effective for data processing and insights.

Cloudera was chosen for the perceived stability of its Hadoop distribution, widespread market share and range of relevant use cases.

“One of the first use cases we looked at was storing xDR data for longer data retention. With 100% data growth annually, Hadoop is the best option to offload the data from the EDW,” Metra Utama, VP of IT planning at Telkomsel said. “We’re looking forward to the next phase of adoption of our Cloudera environment, which will drive new analytical insights.”

Telkomsel is currently using an on-premise environment to run Cloudera, and exploring Hadoop components including Apache Hive, Spark and Impala.

Through Hadoop’s integration with Cloudera, Telkomsel said they have been able to cut down customer transaction process times from days to minutes.

Misconceptions and How to Get Safely on Cloud Platforms

Taken from forbes.com 's article
Five Common Misconceptions About Cloud Platforms
By Lisa M. Schwartz, Oracle

Understanding a few basic misconceptions about cloud platforms can make a difference to the bottom line of your business. Why? Simply put, cloud platforms (“platform as a service,” or PaaS) are cloud-based infrastructure and development environments that customers like you pay for o8n usage-based arrangements, and which are maintained by third-party cloud providers.

Using cloud platform technology frees your IT staff from doing repetitive maintenance work and allows them to be more responsive to pressing business needs, such as quickly developing and testing a new app for salespeople in the field or creating a new real-time inventory dashboard.

However, all cloud platforms aren’t created equal, choosing a cloud platform is an important decision you will have to live with for a while.

Misconceptions About Cloud Platforms

1: All cloud platforms offer the same set of services.
2: PaaS is a great catchall solution to providing missing capabilities not found in SaaS applications.
3: Non-standards-based cloud platforms or open source development languages can bring down costs.
4: All cloud subscriptions are more or less the same.

How to Get Safely to the Cloud

1. Use a single, well-known, standards-based cloud platform across your entire business. That will save you a lot of time and money in the long run, allow you to innovate faster, and avoid unnecessary headaches.

2. Use a provider that doesn’t lock you in to its platform by using lesser-known proprietary languages or databases.

3. Look for a cloud platform that connects easily with its own SaaS applications, and also allows you to move your SaaS applications, if you choose, to another platform.

4. Finally, choose a provider that has many prebuilt services at every layer so your business can innovate quickly while maintaining governance and standards across your entire business.

Starting with a secure cloud platform as a foundation, built on widely known standards, you can save your company time and money and position your business well into the future.

Lisa M. Schwartz is senior product marketing director for cloud applications at Oracle.

2015 Indonesia’s economy by economist.com

Taken from economist.com ' s article
Indonesia’s economy
Spicing up growth

Bad policy as much as bad infrastructure is holding Indonesia back
May 9th 2015

IN LATE April Indonesia’s president, Jokowi, wooed foreign moneymen at a big international conference. Investing in Indonesia will bring “incredible profits”, he promised. “And if you have any problems, call me.” Two days later, at a summit of Asian and African dignitaries, Jokowi struck a different note. He called for “a new global economic order that is open to new emerging economic powers” to avoid the “domination of certain groups and countries”.

That is not necessarily a contradiction: you can pursue foreign cash while also arguing that international financial institutions grant developing countries too little power. But the change in tone was striking: from open, affable and welcoming of foreign money to prickly and suspicious of it. In his first seven months as president, Jokowi has tended to present the first face to the world, particularly to potential investors. But Indonesia’s policies still show too much of the second. That has grave implications for the country’s future.

Jokowi says he wants Indonesia to return to 7% annual growth—a rate unseen since the Asian financial crisis of the late 1990s, but not unusual before it. In fact, the economy is slowing. In the first quarter of this year it grew by 4.7% year on year, down from 5% in the previous quarter. On a quarterly basis, it has been shrinking for six months now.

The problem is commodities. Ever since the ancient Romans acquired a taste for cloves, commodities have played a big part in Indonesia’s economy. The country is the world’s leading exporter of palm oil and tin, the second-biggest rubber exporter and the fourth-largest coal producer. The Grasberg mine in Papua, Indonesia’s biggest and easternmost province, is the world’s biggest gold mine and its third-largest copper mine. When China’s hunger for commodities was growing and prices were high, Indonesia boomed. But since 2011 its growth rate has declined, reflecting China’s weakening appetite for raw materials and the dramatic fall in prices this has precipitated.

Jokowi’s plan is to rebalance Indonesia’s economy away from commodities and towards manufacturing. The country managed a similar shift once before: in the late 1970s and 1980s, as the price for Indonesia’s then-abundant oil fell, the government tried to attract foreign investment in industries like food processing and carmaking instead.

By 1990 manufacturing’s share of GDP exceeded that of agriculture for the first time, thanks to a winning combination of low wages, decent infrastructure, a stable investment climate and abundant natural resources. That boom ended with the Asian financial crisis and the chaotic fall of Suharto, Indonesia’s long-serving strongman, in the late 1990s.

Indonesia today should be even more attractive as a manufacturing hub. It is the fourth-most-populous country in the world, with a huge, fast-urbanising domestic market and a rising consumer class. Workers are cheap: the average manufacturing job pays a base salary of $253 per month, compared with $369 in Thailand and $403 in China. Demography is in its favour: its median age, 29.2, is well below those of Thailand (36.2) and China (36.7).

But Indonesia’s bureaucracy is impenetrable and its infrastructure, much neglected since Suharto’s day, woeful. Companies spend 50% more on logistics than those in Thailand and twice as much as those in Malaysia. No wonder that foreign investment has stagnated in recent years. Manufacturing’s share of GDP, meanwhile, fell from 29% in 2001 to 24% in 2013.

Jokowi has taken some steps to reverse this slide. He launched a one-stop shop for investment approvals in January that has helped speed progress through Indonesia’s Kafkaesque bureaucracy (though when dealing with Indonesian bureaucracy, “speed” is a relative concept: according to Wellian Wiranto of OCBC, a Singaporean bank, the one-stop shop has reduced the number of days required to obtain a permit to build a power plant from 923 to 256).

Using savings from the welcome cutting of fuel subsidies late last year, Jokowi has boosted the budget for infrastructure by 53%—the biggest year-on-year increase in Indonesia’s history. Better roads and ports should drive down logistics costs. Some of the money is for much-needed power plants: Indonesia has five times Britain’s population, but just half of its generating capacity. He has also sought out foreign investment for infrastructure projects.

But many businesspeople worry that the results will not match the rhetoric. Much of Jokowi’s infrastructure money will go to inefficient, state-owned enterprises. Indonesia has inflexible labour laws and minimum wages have shot up (albeit from a low base). Moreover, a morass of protectionist rules persists. The number of industries barred to foreign investors, for instance, has grown steadily. Last year the “negative-investment list” expanded to include onshore oil extraction and e-commerce. In 2014 the government banned the export of some raw minerals in a disastrous effort to ramp up domestic smelting; exports of bauxite collapsed from 55m to 500,000 tonnes within a year, without any concomitant rise in alumina or aluminium exports.

Local-content laws abound, covering energy, retailing and carmaking, among other sectors. A long-mulled, much-criticised draft law may soon require companies that sell tablets and smartphones to produce up to 40% of their components in Indonesia. The aim is to boost domestic tech manufacturing; instead, it will probably create a flourishing black market for iPhones and scare off potential investors. Tight immigration rules have cut the number of foreign workers in Indonesia by 16% in three years, to just 64,000 in 2014. Foreign doctors are banned; foreign oil-and-gas workers must be below the age of 55.

Much of this is not Jokowi’s doing. Economic liberalism has never really taken hold in Indonesia. Its parliament is always ready to embrace protectionist policies, driven by the widespread belief that foreigners have long plundered Indonesia’s resources and left locals none the wealthier. The Asian financial crisis left Indonesia deeply suspicious of foreign capital.

Nor is Jokowi blameless. A decree published without consultation in January unexpectedly banned the sale of beer in minimarts and other small shops across the country, depriving brewers of perhaps half their revenues and startling investors who now fear more surprise regulations. He promised to increase government revenues by bringing more Indonesians into the tax system, but many foreign firms whisper that tax officials are squeezing them harder instead.

Carmaking, led by Japanese firms, is humming along: production is now rising in Indonesia and falling in Thailand. For the past two years more cars have been sold in Indonesia than in any other country in South-East Asia. But Jokowi has lately promoted the potential for a national-car scheme in partnership with Proton, the money-pit that is Malaysia’s national carmaker. Jokowi’s supporters say he has the right ideas, and stress that he faces strong opposition. But whether bad policies are enacted with Jokowi’s support or because he is powerless to stop them matters little: either way, they hinder investment that Indonesia sorely needs.

Geography already puts Indonesia at a disadvantage: it sprawls across more than 13,000 islands, which means that getting goods from one place to another will always be more complicated (and expensive) than just putting them on a lorry. But that makes good policy all the more crucial. When commodities were in demand, Indonesia’s business environment mattered less: companies that wanted tin and copper had to go wherever they could be found. Manufacturers can be choosier.