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March 18, 2014

 The Internet Evolution  Goals of the IoT  What makes IoT different  Complexities of the new model  Breakdown of an IoT solution 3

First we connected Computers Then we connected People What’s left? Lots of “Things” 4

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6  IDC says,  212 billion things by 2020  $4.8 trillion in 2012, $8.9 trillion in 2020  GE says,  Industry savings (waste/productivity) of $150 billion/year  Add $15 trillion to the global GDP by 2030  Cisco says,  25 billion connected devices by 2015, 50 billion by 2020  $14.4 trillion in “value at stake” (up for grabs) in the next 10 years

7 “Internet of Everything” “Industrial Internet” “Internet 4.0” “Smarter Planet” Gartner hype cycle, 2014 gartner.com

Increase Productivity Smart Maintenance Reduce Waste Increase Efficiency Reduce Unplanned Downtime Extend Equipment Life 8 Operational Efficiency Improved Productivity Cost reduction Supply & Process Optimization Safety improvements Environmental sustainability Improved Service Availability

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10 Axeda, 2013

We’ve networked computers We’ve networked people ? What’s the big deal about “things” 11

 A human-centric model  People originate most content  People originate most information requests  Multitude of client platforms – Macs/PC’s, tablets, phones, readers…  Servers are heavy computing platforms  Many applications: Web, mail, file-xfer  A large family of standardized protocols suited to the applications – HTTP, SMTP, DHCP, SSH, SNMP….  All built on a standardized, IP based networking infrastructure

 A machine driven model, no human intervention  A “thing” autonomously generates content (data)  A “thing” autonomously requests content  “Things” are the servers – sensors and devices publishing data  “Things” can be any physical device or asset  “Things” don’t have an RJ45 jack  “Things” often have minimal computing capabilities, without access to electrical power

 “SCADA” Supervisory Control and Data Acquisition  An industrial specialty for decades for the remote monitoring of systems  SCADA is a silo of automation, not an internet of connected devices and shared information – limiting its value and scalability 14

What are the challenges of implementing IoT Solutions? 15

 Market & Technology Fragmentation ▪ Hardware, software, protocols... all different, independent ▪ Lack of integration…between devices, to enterprise systems  M2M Development Complexity ▪ Many different skills required... ▪ Hardware, Embedded, Software, IT, Telecom ▪ No common architectural guidelines ▪ Security risks  Vendor Lock-In ▪ Proprietary SDKs, protocols ▪ Device specific, application specific 16

17 CONCLUSION Multiple disciplines, technologies, vendors combine to create a high- friction development environment that is not easy to navigate Applications & Services Sensor Database & Analytics Device Connectivity Device Management Gateway

Intelligent Irrigation 18 Current State  Irrigated agriculture accounts for over 85% water consumption in the US  System efficiencies as low as 30-40%  Herbicide/pesticide contamination caused by excessive watering Desired State  Water called for only as required  Current weather conditions and forecast are factored  Availability and demand levels placed on the water supply are factored  Automatic leak detection & alerts  Mechanical failures are predicted in advance, eliminating unplanned downtime

19 Sensor Nodes Monitor Soil Conditions: Soil temp and moisture sensors Monitor Environmental Conditions: Solar, temp, humidity and wind sensors Monitor Supply Capacity: Level, pressure, flow sensors Leak Detection: Moisture and flow sensors Fault Prognostics: Current, temperature and vibration sensors monitor pumps & motors Sensor Nodes digitize sensor data and sends it to the Gateway over wired or wireless connections Sensors Pressure Vibration Temperature Flow rate Voltage Current

20 Database & Analytics Device Device Connectivity Existing systems include devices with data ports that can be integrated into the solution Water meters Electric meters Programmable Logic Controller (PLC) Specialized converters and device servers convert and connect these data streams to the intelligent gateway or IP network Typically a mix of physical and protocol layers

Applications 21 Intelligent Gateways Multiple disciplines, technologies, vendors combine to create a high-friction development environment that is not easy to navigate Gateway Intelligent Gateways The Gateway performs three critical functions 1.Collects and aggregates data from local sensors and devices as well as external data feeds 2.Applies a set of user defined rules to that data 1.IF soil is dry AND weather conditions are favorable AND we have supply available AND its not about to rain THEN turn on the pumps 2.IF pumps are failing OR water is leaking THEN send an alarm condition to the service team. IF the service team doesn’t take corrective action in time THEN reduce function of the system 3.Provides backhaul data connectivity to one or more applications 1.Business Systems – accounting, billing 2.Maintenance Systems 3.Regulatory/Compliance Systems Pressure Vibration Temperature Flow rate Voltage Current Gateway Wireless Sensor Network Devices Billing EPA Compliance Maintenance Dashboard Wired or Wireless WAN

22 Database & Analytics Connectivity Gateway Connectivity Primary or failover backhaul connections are often cellular. This generates its own challenges Provisioning – the gateway attached to a carrier SIM card, M2M data plan From the carrier themselves, or MVNO – virtual network operator Data connectivity May need a VPN tunnel from remote router to target network Wireless Network Internet Cellular Data

23 Device Management IoT Solutions are machine-centric, not people-centric They can involve very large quantities of devices They’re often remote Maintenance, upgrades diagnostics, data management must all be remotely managed Connectivity Device Management Gateway

24 Database, Analytics, Applications Integrate Data into automated billing systems New applications for smart maintenance programs Automated reporting for environmental regulations Private Enterprise Server/ ERP Integration Oracle, SAP, etc Emerging Players, Hosted Application Environments Thingworx, Xively, SeeControl Database, Analytics, Applications

 Adding new devices and applications creates new security risks  We’ve already seen examples of IoT hacks  Technology, protocols and practices exist but require  Considerable risk 25

 IoT will change the profile of network traffic  Shifting from a human-centric internet to “thing” centric internet impacts system design and expectations of reliability  The value gains of optimized use of assets and resources has profound potential 26

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Application Service Providers System Integrators Technical VARs OEM/Machine Builders 29

CONNECTIVITY PARTNERS DEVICE MANAGEMENT PLATFORMS B&B is agnostic to which platforms and services our customer prefer. We partner with and support a broad ecosystem of partners without bias. We don’t compete with our customers. We co-sell with our partners, bringing revenue to them and helping them close their opportunities by providing a complete hardware solution. We match the technology capabilities and business models of our partners to our customer’s objectives. APPLICATION PLATFORMS 30

Application and Services Database & Analytics Tools/Platforms Connectivity Device Management Gateway Device Sensor 31 CONCLUSION Multiple disciplines, technologies, vendors combine to create a high- friction development environment

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