WEBINAR Grading The Value And Prospects Of Core

WEBINAR Grading The Value And Prospects Of Core Io. T Technologies Michele Pelino, Principal Analyst @mmpelino Frank E. Gillett, Vice President, Principal Analyst @Frank. Gillett April 14, 2016. Call in at 10: 55 a. m. Eastern time

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Agenda › What is driving the technology and business value of the internet of things (Io. T)? › What are the five categories of core Io. T technologies and why? › How are the core Io. T technologies evolving? › What are the insights that emerged from the Tech. Radar? © 2016 Forrester Research, Inc. Reproduction Prohibited 4

Agenda › What is driving the technology and business value of the internet of things (Io. T)? › What are the five categories of core Io. T technologies and why? › How are the core Io. T technologies evolving? › What are the insights that emerged from the Tech. Radar™? © 2016 Forrester Research, Inc. Reproduction Prohibited 5

Io. T premise: Increasing software control of the physical world › Combining sensors, actuators, networks, and analytics • . . . to connect physical objects, products, and infrastructure • . . . to computing systems over the internet © 2016 Forrester Research, Inc. Reproduction Prohibited

Three levels of Io. T value propositions BASED ON IMPROVED BUSINESS OUTCOMES Optimize physical assets. © 2016 Forrester Research, Inc. Reproduction Prohibited Innovate new products and services. Transform customer engagement. 7

Io. T data drives a feedback loop to digitize business and improve customer experience M 2 M technologies Source: “Mapping The Connected World” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

Enterprises are more likely to be using Io. T “What are your firm’s plans to adopt M 2 M/internet of things solutions or applications? ” Interested 47% 52% 40% Total 31% = 78% 30% = 82% 33% = 73% Base: 3, 337 global telecommunications decision-makers (20+ employees) Base: 1, 775 global telecommunications decision-makers (1, 000+ employees) Base: 1, 582 global telecommunications decision-makers (20 -999 employees) Source: Forrester’s Global Business Technographics® Networks And Telecommunications Survey, 2015 © 2016 Forrester Research, Inc. Reproduction Prohibited

Io. T is complex technology that defies simple approaches.

Diverse sensor technologies that enable many different use cases or applications i. Beacons ©

Widely varied communications and software tech, protocols, and standards MQTT Co. AP AMQP ©

Forrester’s Tech. Radar™ • Predict the success of a set of related technologies over the next decade. • Help end users understand: • Which emerging technologies to consider adopting — and how soon. • Which mature technologies to start retiring — and when. © 2016 Forrester Research, Inc. Reproduction Prohibited

Key questions the Tech. Radar can help answer › What business value can I or my client customers expect from this technology and its ecosystem today? Over the next decade? › Where is this technology ecosystem in its life cycle? › How quickly will this technology and its ecosystem transition to the next phase of maturity? › Should my firm or my clients ignore, adopt, maintain, or retire this technology? © 2016 Forrester Research, Inc. Reproduction Prohibited

What defines the maturity of a technology ecosystem? • Customers who buy the technology • End user satisfaction • Multiple vendors with strong financials • Complementary organizations • Competitive landscape • Community of experts and evangelists © 2016 Forrester Research, Inc. Reproduction Prohibited

What are the five phases of technology ecosystem maturity? 1. Creation • Not yet commercially available • Not ready for product implementation • Business value-add is uncertain. 2. Survival • First commercial products enter the market. • Ecosystem expansion is occurring (e. g. , suppliers, customers, and system integrators) © 2016 Forrester Research, Inc. Reproduction Prohibited

What are the five phases of ecosystem maturity? 3. Growth • Diverse ecosystem of vendors • Widespread implementation 4. Equilibrium • Large and resilient ecosystem • Well-known benefits and limitations • Consolidated market and substitutes 5. Decline • Ecosystem destabalization and market disruption © 2016 Forrester Research, Inc. Reproduction Prohibited

What defines a technology’s business value? • Evidence and feedback from implementations • Investment required • Potential to deliver business transformation • Criticality to business operations • Change management or integration problems • Market reputation © 2016 Forrester Research, Inc. Reproduction Prohibited

What do trajectories mean for the technology’s future? › Significant success • • Well-defined usage scenarios Measurable and widely known benefits Solid vendor financials Powerful distribution channels › Moderate success • Moderate business benefits due to inhibitors (ex: integration barriers) › Success trajectories reflect that early evidence from customer implementations puts a technology on a defined path to success or failure. © 2016 Forrester Research, Inc. Reproduction Prohibited › Minimal success • Ecosystem lacks resiliency.

When will the ecosystem evolve to the next phase? › Less than one year › One to three years › Three to five years › Five to 10 years › More than 10 years © 2016 Forrester Research, Inc. Reproduction Prohibited

Agenda › What is driving the technology and business value of the internet of things (Io. T)? › What are the five categories of core Io. T technologies and why? › How are the core Io. T technologies evolving? › What are the insights that emerged from the Tech. Radar? © 2016 Forrester Research, Inc. Reproduction Prohibited 21

Five categories of core technologies for the Io. T Tech. Radar Analytics Hardware ©

No. 1: Analytics • Data historian • Io. T advanced analytics and event management

Tech. Radar™: Internet Of Things, Q 1 2016 — analytics components Example vendors Analytics Data historian software GE Historian, Honeywell Uniformance PHD, OSIsoft Pi, Schneider Electric Wonderwear Historian, Siemens SIMATIC Process Historian Io. T advanced analytics and event management Amazon AWS Io. T, Bsquare Data. V, Cisco Parstream, GE Pedix, Glassbeam, Hitachi Pentaho, IBM Watson, Microsoft Azure Io. T Suite, Mnubo, Predixion Software, PTC Machine Learning, SAP, Savi, Tempo IQ, Velocidata, Vitria Io. T analytics databases Basho Riak TS, OSIsoft, Parstream (now Cisco), Splunk, Tempo IQ, Treasure Data, Ubeeko Hfactory Source: “Tech. Radar™: Internet Of Things, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

No. 2: Hardware • Io. T device operating system • Io. T edge device

Tech. Radar™: Internet Of Things, Q 1 2016 — hardware components Example vendors Hardware Io. T device operating system ARM mbed, Canonical Ubuntu Snappy Core, Google Brillo, Microsoft Windows 10 Io. T edition, QNX, Wind. River Vx. Works, Yocto Project Io. T edge device components and modules Avero, ARM, Bug Labs, Digi, Electronic Imp, Freescale, Gemalto, Intel, Libelium, Next Thing Chip, Nvidia, Particle. io, Qualcomm, Raspberry Pi, Samsung Artik, Sierra Wireless, Telit Io. T gateway hardware Advantech, Alleantia, Azeti, Cisco, Dedicated Computing, Dell, Eurotech, Hewlett Packard Enterprise, Huawei, Intel, Libelium, Multi. Tech, Net. Comm. Wireless, Portwell, Sierra Wireless, Silver Spring Networks Source: “Tech. Radar™: Internet Of Things, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

No. 3: Network • Local networking • Low-power wide-area networking (LPWAN) • Personal area networking (PAN) • Telecom network and satellite connectivity © 2016 Forrester Research, Inc. Reproduction Prohibited

Tech. Radar™: Internet Of Things, Q 1 2016 — network components Example vendors Network Local networking Amtel, Cisco, Gainspan, Qualcomm, Red Pine Signals, RFMD, TI, Tomi. Zone Low power wide-area networking (LPWAN) Lo. Ra Alliance, Ingenu, M 2 M Spectrum Networks, Nuel-Huawei, Nuwave, Sig. Fox, Telensa Personal area networking (PAN) 6 Lo. WPAN, Bluetooth LE, Bluetooth Smart, Digi. Mesh, En. Ocean, Thread, ZWave, Zigbee Telecom network and satellite connectivity AT&T, China Mobile, Deutsche Telekom, Inmarsat, KPN, Orange, Singtel, Telefonica, Telstra, Verizon, Voadfone Source: “Tech. Radar™: Internet Of Things, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

No. 4: Security • Io. T device identity management • Io. T security ©

Tech. Radar™: Internet Of Things, Q 1 2016 — security components Example vendors Security Io. T device identity management Amazon AWS Io. T Registry, Covisint, Forge. Rock, Idauto. net, Microsoft Azure Io. T Hub, Neustar, Okta, Ping Identity, Symantec, Xively by Logmein, Zebra Zatar Io. T security Arxan, Digi. Cert, Gemalto, Intel Security, Kaspersky, M 2 M Intelligence (M 2 Mi), Symantec, Tanium, Trend. Micro Source: “Tech. Radar™: Internet Of Things, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

No. 5: Software and standards (1 of 2) • Io. T API management software • Io. T billing and subscription management software • Io. T business applications © 2016 Forrester Research, Inc. Reproduction Prohibited

Tech. Radar™: Internet Of Things, Q 1 2016 — software components (cont. ) Example vendors Software and standards (cont. ) Io. T API management software Apigee, Axway, CA, Mule. Soft, Tibco Mashery, WSO 2 Io. T billing and subscription management software Aeris Aer. B/OSS, Amdocs Aria Systems, Go. Traverse, Metra. Tech, Numerex, Zuora Io. T business applications Digital Lumens, Echelon, GE, IBM Tririga, i. Control, Lucid Design, Macropoint, Schneider Electric, Siemens, Trimble Source: “Tech. Radar™: Internet Of Things, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

No. 5: Software and standards (2 of 2) • Io. T communications, software, and interop protocols and standards • Io. T device management software • Io. T software/application platforms • Io. T telco connectivity management software © 2016 Forrester Research, Inc. Reproduction Prohibited

Tech. Radar™: Internet Of Things, Q 1 2016 — software components Example vendors Software and standards Io. T communications, software, and interop protocols and standards • Software communication protocols: AMQP, Co. AP, DDS, HTTPS, MQTT, XMPP • Interoperability standards: All. Joyn, Home Kit, Thread, Weave • New Io. T standards: All. Seen Alliance, Open Interconnect Consortium Io. T device management software Devicify, Digi, Sierra Wireless, Telit Io. T software/application platforms Alleantia, Amazon AWS Io. T, Ayla Networks, GE Predix, IBM Io. T Foundation, Log. Me. In Xively, Machine Shop, Mesh Systems, Microsoft Azure Io. T Suite, PTC Thing. Worx, Zebra's Zatar Platform Io. T telco connectivity management software Aeris, Ericsson, Jasper, Kore, Numerex Source: “Tech. Radar™: Internet Of Things, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited

Agenda › What is driving the technology and business value of the internet of things (Io. T)? › What are the five categories of core Io. T technologies and why? › How are the core Io. T technologies evolving? › What are the insights that emerged from the Tech. Radar? © 2016 Forrester Research, Inc. Reproduction Prohibited 35

Forrester’s Tech. Radar™: Internet Of Things, Q 1 ’ 16 Source: “Tech. Radar™: Internet

Io. T Tech. Radar by Io. T category © 2016 Forrester Research, Inc. Reproduction

Io. T analytics is early in development Source: “Tech. Radar™: Internet Of Things, Q

Io. T device and gateway hardware is still evolving Source: “Tech. Radar™: Internet Of

Connectivity is a mix of established and emerging technologies Source: “Tech. Radar™: Internet Of

Io. T security technologies are nascent Source: “Tech. Radar™: Internet Of Things, Q 1

Io. T software is diverse with a lot of opportunity for maturity Source: “Tech.

Io. T Tech. Radar by phase © 2016 Forrester Research, Inc. Reproduction Prohibited 43

Only Io. T security technologies are in the creation phase Source: “Tech. Radar™: Internet

Crucial Io. T technologies have just launched Source: “Tech. Radar™: Internet Of Things, Q

Many Io. T enabler technologies are in the growth phase Source: “Tech. Radar™: Internet

Io. T connectivity technologies are ready, except for LPWAN Source: “Tech. Radar™: Internet Of

Agenda › What is driving the technology and business value of the internet of things (Io. T)? › What are the five categories of core Io. T technologies and why? › How are the core Io. T technologies evolving? › What are the insights that emerged from the Tech. Radar? © 2016 Forrester Research, Inc. Reproduction Prohibited 48

Key insights from 2016 Io. T Tech. Radar Customer focus is shifting from hardware and radios to software and analytics. Io. T technology is incredibly diverse and segmented by use case. Security will be vital, but the technologies and strategies are still emerging. Io. T standards and interoperability will take a long time to solidify. © 2016 Forrester Research, Inc. Reproduction Prohibited

Thank you Frank E. Gillett @Frank. Gillett +1 617 -613 -6017 fgillett@forrester. com Michele Pelino @mmpelino +1 617 -613 -6228 mpelino@forrester. com

Io. T related research reports — focused list › “Brief: CIOs Will Architect And Operate The Internet Of Things” Forrester report › “Brief: Enterprise Software Giants Embrace The Internet Of Things” Forrester report › “Brief: The Internet Of Things Will Transform Customer Engagement” Forrester report › “Brief: The Two Fundamental Io. T Business Opportunities” Forrester report › “CIOs And CTOs Will Turn To Services Firms For Help With Io. T And Smart Products” Forrester report › “The Future Of Io. T Gateways: Evolving To Enterprise Grade In 2016” Forrester report › “The Internet Of Things Heat Map, 2016” Forrester report › “Internet-Of-Things Software Platforms Simplify Transformation Of Business Operations” Forrester report › “Predictions 2016: Io. T's Impact Inside Companies” Forrester report › “An S&R Pro’s Guide To Io. T Security” Forrester report › “Tech. Radar™: Internet Of Things, Q 1 2016” Forrester report © 2016 Forrester Research, Inc. Reproduction Prohibited