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Cars, Cities & Pet Trackers: IoT in 2015

Dan Jones
2/12/2015
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Here's the thing about the Internet of Things: It may already be well hyped, but we're still right at the beginning of a world where every kind of device or appliance in a home, city or business could be on the network and talking to other machines.

The Internet of Things (IoT) is not a new concept. Kevin Ashton is generally credited with coming up with the idea of a world where everything from household appliances to water meters are networked and sending out data back in 1999.

It is only really in the last year, however, in the communications space, that we have started to see carriers making initial forays into IoT devices and applications. AT&T Inc. (NYSE: T), for instance, says that it added 800,000 cars with 3G and 4G connections onboard in the fourth quarter of 2014. Verizon Communications Inc. (NYSE: VZ) said it made an annual revenue of $585 million from its IoT and telematics business, which centers on the tracking of vehicle fleets and goods. (See AT&T Highlights Mexican Ambitions.)

Connected vehicles and related services and applications appear to be the largest addressable market opening up for carriers and vendors in the comms space right now. Qualcomm Inc. (Nasdaq: QCOM)'s CTO, Matt Grob, told me in January that he expects that to be the most important individual IoT market for his company in 2015. (See Verizon Vehicle Races to Catch Up to OnStar.)

There are reasons for this. Firstly, operators, vendors and car makers have been working towards connected cars for years now. An automobile or a truck is also an easier object to embed a radio in than, say, pet trackers or smart sensors, and the power and battery life concerns are less in a vehicle. Of course, once you get beyond simple connectivity and applications, designing operating systems and apps for safe driving in cars becomes an art in itself. (See CES Pics: Cars, Drones & Lines, Oh My!)

But the IoT concept goes way beyond cars and is starting to spread like The Blob into all kinds of sectors. Fitness monitors and pet trackers are already on the scene, with plenty of startups exploring security and monitoring options for "smart home" scenarios.

Expect further networked options to become more common for healthcare applications, smart cities, and factory and agriculture automation. Indeed, you can already see networked trash bins on the streets of New York and other cities around the world. (See NYC: Inside the Internet of Bins.)

To facilitate that expansion, the industry needs standards to define how devices communicate with networks -- and in some cases -- each other. Battles over specifications and standards between vendors and carriers are likely to rage throughout 2015. I suspect we'll end up with multiple standards that address different areas of IoT. How your fridge talks to the network is unlikely to be in the same language as elements of an automated production line in a pharmaceuticals factory. (See AllSeen Tries to Streamline IoT Standards.)

Security is another big issue. Obviously you don't want hackers taking control of your home or your car remotely via networked devices. (See Could Hackers Take Over Your Home?)

Additional privacy concerns could also arise. Fitness and mHealth devices can track extremely private data, for one.

Advances in power efficiency and battery life will probably make IoT implementations easier too. Some devices, like smart power meters, could be installed for decades in the field so the lowest current draw possible for longer battery life is desirable.

How much of the Internet of Everything actually needs to be connected will eventually become a question too. Does a toaster need to talk to a fridge, for instance? Although we're not at the point where this is a pressing issue yet.

Despite such issues, though, there's little doubt that 2015 is the year the connected car will start to lead us further down the road to a fully fledged Internet of Things.

— Dan Jones, Mobile Editor, Light Reading

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DanJones
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DanJones,
User Rank: Blogger
2/17/2015 | 9:07:12 AM
Re: What's driving the future of the IoT
I suspect home security and sensors could be a good niche.
Phil_Britt
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Phil_Britt,
User Rank: Light Sabre
2/17/2015 | 7:32:02 AM
Re: What's driving the future of the IoT
I think you're spot on with your fool's gold comment. Connected cars, no question. Connected utilities, probably good. Connected watches, OK (though I don't foresee ever buying one myself). But other stuff, not so much -- though some will see "connected" as golden, just was "dotcom" was considered golden before the dotbomb crash of 1999-2000.
mendyk
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mendyk,
User Rank: Light Sabre
2/16/2015 | 10:21:17 AM
Re: What's driving the future of the IoT
Some companies have the cultural background and tacit approval (or is that expectation?) from "investors" to launch exploratory initiatives that are likely to fall short of commercial success (iCar, anyone?). I don't think network operators fit that profile. They are historically risk-averse, and they are likely to incur the wrath of their conservative investor base if they travel too far down a development rabbit hole without realizing a direct payback.
kq4ym
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kq4ym,
User Rank: Light Sabre
2/15/2015 | 10:53:26 AM
Re: What's driving the future of the IoT
There will surely be some fool's gold in the mix as folks seek out the profit potentials in IoT. But, that's pretty much true of any new technology as the glimmer of fresh ideas captures the minds and pocketbooks of investors and dreamers alike.
fergie1965
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fergie1965,
User Rank: Light Beer
2/14/2015 | 9:31:44 PM
Re: What's driving the future of the IoT
Self drive vehicles is a very interesitng topic..big challenges ahead

1) will cars communicate directly with each other or send data up to the cloud (for example, if a pothole appears, should that car communicate directly other cars in area or up to the cloud

2) If you assume all self drive vehicles are sensible, how will the world of self drive and cars being driven by crazies work out?

3) How much information should be stored locally (think about bad areas of cellphone coverage etc) versus up in the cloud

4) If you drive across Europe, all the networks must play nice to provide a seamless experience from country to country. How does that work out in terms of billing, information sharing etc

Etc

 

Regards

Ian
DHagar
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DHagar,
User Rank: Light Sabre
2/12/2015 | 5:45:28 PM
Re: What's driving the future of IoT?
Dan, that makes great sense.  I am working with some cities that are also looking at "smarter" distribution and fulfillment centers as well.  The whole supply chain management is lining up also.
DanJones
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DanJones,
User Rank: Blogger
2/12/2015 | 5:00:34 PM
Re: What's driving the future of the IoT
I would expect to see some advancements around point of sales stuff in retail and location tracking in stores too.
DHagar
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DHagar,
User Rank: Light Sabre
2/12/2015 | 4:10:04 PM
Re: What's driving the future of the IoT
Dan, good article.  In addition to the cars being a major market opportunity, I agree with your identification of both healthcare and smart cities.  I am seeing that when IoT becomes a "solution", by being able to connect communications that are needed and desired, it seems a very natural development.

If you get several forces driving at the same time, it can develop the market - although the pets may unite yet!
DanJones
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DanJones,
User Rank: Blogger
2/12/2015 | 3:59:24 PM
Re: What's driving the future of the IoT
They just said telematics on the earning call but Verizon is big into fleet tracking etc.

 

See: https://verizontelematics.com/
jasonmeyers
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jasonmeyers,
User Rank: Blogger
2/12/2015 | 3:49:48 PM
Re: What's driving the future of the IoT
Telematics defined as what?
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