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How PKI & Embedded Security Can Help Stop Aircraft Cyberattacks

 by August 27, 2019 by Alan Grau, VP of IoT, Embedded Systems, Sectigo

 

On July 30th, the U.S. Department of Homeland Security Cybersecurity and Infrastructure Agency (CISA) issued a security alert warning small aircraft owners about vulnerabilities that can be exploited to alter airplane telemetry. At risk to cyberattack, the aircraft’s Controller Area Network (CAN bus) connects the various avionics systems–control, navigation, sensing, monitoring, communication, and entertainment systems–that enable modern-day aircraft to safely operate. This includes the aircraft’s engine telemetry readings, compass and attitude data, airspeeds, and angle of attack; all of which could be hacked to provide false readings to pilots and automated computer systems that help fly the plane.

The CISA warning isn’t hypothetical, and the consequences of inaction could prove deadly. Airplane systems have already been compromised. In September 2016, a U.S. government official revealed that he and his team of IT experts had successfully remotely hacked into a Boeing 757 passenger plane as it sat on a New Jersey runway, and were able to take control of its flight functions. The year before, a hacker reportedly used vulnerabilities with the IFE (In Flight Entertainment) system to reportedly take control of flight functions, causing the airplane engines to climb.

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The Boeing 757 attack was performed using the In-Flight Entertainment Wi-Fi network.
 

A researcher with security analytics and automation provider Rapid7 wrote about the security of CAN Bus avionics systems in a recent blog and discussed the challenge at this year’s DEFCON security conference. He explained, "I think part of the reason [the avionics sector is lagging in network security when it comes to CAN bus] is its heavy reliance on the physical security of airplanes . . . Just as football helmets may actually raise the risk of brain injuries, the increased perceived physical security of aircraft may be paradoxically making them more vulnerable to cyberattack, not less."

A False Sense of [Physical Access] Security

The DHS CISA warning stated, "An attacker with physical access to the aircraft could attach a device to an avionics CAN bus that could be used to inject false data, resulting in incorrect readings in avionic equipment.” CISA fears that, if exploited, these vulnerabilities could provide false readings to pilots, and lead to crashes or other air incidents involving small aircraft. Attackers with CAN bus access could alter engine telemetry readings, compass and attitude data, altitude, and airspeeds. Serious stuff.

Not all of these attacks required physical access.

These risks should serve as a wake-up call to everyone in manufacturing. Any device, system, or organization that controls operation of a system is at risk, and the threats can originate from internal or external sources. It’s critical for OEMs, their supply chains, and enterprises to include security and identity management at the device level and continually fortify their security capabilities to close vulnerabilities.

Security Solutions for Avionics Devices

Today’s airplanes have dozens of connected subsystems transmitting critical telemetry and control data to each other. Currently, tier-one suppliers and OEMs in aviation have failed to broadly implement security technologies such as secure boot, secure communication and embedded firewalls on their devices, leaving them vulnerable to hacking. While OEMs have begun to address these issues, there is much more to be done.

Sectigo offers solutions so that OEMs, their supply chains, and enterprises can take full advantage of PKI and embedded security technology for connected devices. Our industry-first end-to-end IoT Platform, made possible through the acquisition of Icon Labs, a provider of security solutions for embedded OEMs and IoT device manufacturers, can be used to issue and renew certificates using a single trust model that’s interoperable with any issuance model and across all supported devices, operating systems (OS), protocols, and chipsets.

Much like the automotive industry, the aviation sector has a very complex supply chain, and implementing private PKI and embedded security introduces interoperability challenges. With leading avionics manufacturers introducing hundreds of SKUs per year, maintaining hundreds of different secure boots within a single aircraft is complex, cumbersome, and ultimately untenable. Using a single homogenous secure boot implementation greatly simplifies the model.

Purpose-built PKI for IoT, such as the Sectigo IoT Manager, enables strong authentication and secure communication between devices within the airframe. Using PKI-based authentication prevents communication from unauthorized components or devices and will eliminate a broad set of attacks.

Embedded firewall technology provides an additional, critical security layer for these systems. This is particularly relevant for attacks such as the Boeing 757 attack via the airline Infotainment Wi-Fi Network. An embedded firewall provides support for filtering rules to prevent access from the Wi-Fi network to the control network.

Icon Labs embedded firewall has been has deployed in airline and automotive systems to address attacks such as these. In both instances, our embedded firewall sits on a gateway device in the vehicle or airplane to prevent unauthorized access from external networks or devices into the control network, or from the Infotainment network to the control network. We continue to see interest in this area, indicating manufacturers are beginning to act.

From Cockpits to Control Towers

Securing connected devices in aviation is not limited to airplanes. The industry requires secure communication between everything on the tarmac, from cockpits and control towers to provisioning vehicles and safety personnel. For that reason, Sectigo provides an award-winning co-root of the AeroMACS consortium, which addresses all broadband communication at airports across the world and calls for security using PKI certificates to be deployed into airplanes, catering trucks, and everything else on the tarmac.

Future Proofing with Crypto Agility

It’s worth noting that aviation is also uniquely challenged by the tenure of its components. Unlike devices that are designed to last for months or years, airplanes are designed to last for decades. Advances in quantum computing, which many experts believe is just around the corner, threaten to make today’s cryptographic standards obsolete. Aeronautical suppliers need to be prepared for this coming “crypto-apocalypse” and to update the security on their devices in the field while the devices are in operation. Sectigo’s over-the-air update abilities provide the cryptographic agility to guard against this upcoming crypto-apocalypse (listen to the related Root Causes podcast).

The ecosystem has fast work to do. Manufacturers must secure the CAN buses in their existing, and future fleets – whether those planes idle on fenced tarmacs, or in airplane hangars. In the meantime, CISA counsels that aircraft owners restrict access to planes avionics' components "to the best of their abilities,” leaving passengers to hope security soon extends beyond their TSA experiences.

Read this blog online at https://sectigo.com/blog/how-pki-and-embedded-security-can-help-stop-aircraft-cyberattacks

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The emerging internet of things (IoT) is an extension of digital connectivity to devices and sensors in homes, businesses, vehicles and potentially almost anywhere. This innovation means that virtually any appropriately designed device can generate and transmit data about its operations, which can facilitate monitoring and a range of automatic functions. To do this IoT requires a set of event-centered information and analytic processes that enable people to use that event information to make optimal decisions and take act effectively.

To better understand how this technology is being deployed and used Ventana Research is launching benchmark research on The Internet of Things. The research will explore organizations’ experiences with IoT initiatives and with attempts to align IT projects, resources and spending with new business objectives that demand real-time intelligence and event-driven architectures.

In many industries, organizations can gain competitive advantage if they can reduce the elapsed time between an event occurring and being able to take action or make decisions in response to it. Existing business intelligence (BI) tools provide useful analysis of and reporting on data drawn from previously recorded transactions, but organizations now areconcluding that employees and processes in IT, business operations and front-line customer sales, service and support also need to be able to detect and respond to events as they happen.

Our previous Internet of Things benchmark research found that both business objectives and regulations are driving demand for new technology and practices. By using them many activities can be managed better, among them manufacturing, customer engagement processes, algorithmic trading, dynamic pricing, yield management, risk management, security, fraud detection, surveillance, supply chain and call center optimization, online commerce and gaming. Success in efforts to combat money laundering, terrorism or other criminal behavior also depends on reducing information latency through the application of new techniques.

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As with any innovation, embracing IoT may require substantial changes to any organization. These are among the challenges business leaders face as they consider adopting this evolving technology:

  • They find it difficult to evaluate the business value of enabling real-time sensing of data and event streams using radio frequency identification (RFID) tags, agents and other systems embedded not only in physical locations like warehouses but also in business processes, networks, mobile devices, data appliances and other technologies.
  • They lack an IT architecture that can support and integrate these systems as the volume and frequency of information increase.
  • They are uncertain how to set reasonable business and IT expectations, priorities and implementation plans for important technologies that may conflict or overlap. These can include BI, event processing, business process management, rules management, network upgrades and new or modified applications and databases.
  • They don’t understand how to create a personalized user experience that enables nontechnical employees in different roles to monitor data or event streams, identify significant changes, quickly understand the correlation between events, and determine the right decisions or actions to take.

This research will continue our investigation of how organizations are dealing with these challenges and increasing their responsiveness to events by rebalancing the roles of networks, applications and databases to reduce latency; it also will explore ways in which they are using sensor data and alerts to anticipate problematic events. We will benchmark the performance of organizations’ implementations, including IoT, event stream processing, event and activity monitoring, alerting, event modeling and workflow, and process and rules management.

Click here to participate in this research, and here to learn more about Ventana Research’s methodology and large body of business research. Ventana Research also has conducted research in related areas including Data PreparationMachine LearningData and Analytics in the CloudNext-Generation Predictive Analytics and Big Data Analytics and Integration.

Regards,
David Menninger

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For years, I have been written about the promise and perils of the Internet of Things (IoT). In many of my articles I described how the IoT could help transform society and kickstart the next industrial revolution. However, still many people and enterprises are in the IoT. We still cannot define in a unique and clear way what IoT is and much less explain how thanks to IoT it will change our lives, without using the example of the smart refrigerator.

Why are we still lost in IoT? Let´s see some arguments.

Lost in IoT connectivity

With so many IoT connectivity options on the market, choosing the right one for your project can be complicated. It scares me to think that billions of devices will be connected in a few years to decentralized IoT networks and with no interconnectivity between them, unless we use millions of edge nodes that transfer messages among devices connected in multiple networks. If it is already difficult to justify the ROI of a use case considering a single type of connectivity, it is almost impossible to justify that these devices can communicate with other devices on different IoT subnets.

It seems that it is easy to get lost among so much connectivity technology. Isn’t true?

Lost among hundreds of IoT Platforms

At least we already intuit some of the platforms that will survive among the +700 that some analysts have identified. I have only been able to analyze with more or less depth about 100. Surely my methodology of Superheroes and Supervillanos will advance the end of most of them.

It is no longer just one IoT Platform, stupid! Although they want to make it easy for us, companies like AWS, Microsoft or Google add concepts such as Serverless, Data Lakes, AI, Edge Computing, DLT and all the artillery of Cloud services to the core features of the IoT platform. I get lost in its architecture and I feel that if I get too close to one of these black holes, they will end up absorbing me.

Glad to know that “Verizon retools ThingSpace IoT platform to focus on connectivity” and system integrators are abandoning their in house development to embrace leaders vendors’ products.

Lost between the Edge and the Clouds

In “Do not let the fog hide the clouds in the Internet of Things” , I warned about the degree of complexity that Fog / Edge Computing added to the already complex IoT solutions. Now nothing seems to be of great value if we do not include Edge Computing.

The Babel tower of Alliance & Consortiums is consolidating but we keep losing in acronyms. Industrial Internet companies felt relief with the newsThe Industrial Internet Consortium® (IIC™) and the OpenFog Consortium® (OpenFog) unite to combine the two largest and most influential international consortia in Industrial IoT, fog and edge computing. While The Open Group Open Process Automation™ Forum (OPAF) is defining the next generation edge computing standards for industrial operators.

And again, the question arises, do we need Edge to start my Industrial IoT project?

Lost in the Proof of Concept (PoC)

Businesses are spending $745 billion worldwide on IoT hardware and software in 2019 alone. Yet, three out of every four IoT implementations are failing.

Microsoft launched a new research report — IoT Signals — intended to quantify enterprise internet of things (IoT) adoption around the world. The survey of over 3,000 IT team leaders and executives provides a detailed look at the burgeoning multi-billion-dollar segment’s greatest challenges and benefits, as well as related trends. Perhaps it’s not surprising, then, that 30% of respondents say their IoT projects failed in the proof-of-concept stage, often because the implementation became too expensive or the bottom-line benefits were unclear.

There are technical reasons for example the use of Rasberry Pi or Arduino boards in the PoC and realise that you need other more expensive hardware for the project.

There are economic reasons when you try to escalate your PoC to real implementations and then the ROI doesn’t look as well as in the pilot.

There are organization reasons when leaders are failing to go all in. If you can’t get the CEO on board, then the probability to finish in the PoC is almost 100%.

If you are lost in the PoC, these tips can help you implementing IIOT.

  1. Solve a problem worth solving
  2. Keep it quick and simple
  3. Manage the Human Factor

Lost in select the right IoT Ecosystems

Today no significant ecosystem or network of collaborators had emerged in the IoT arena in spite there was early and very interesting efforts being made by several players. This article does not need changes.

Since I wrote “The value of partnership in Industrial Internet of Things”, I have heard, read and repeated hundreds of times how important it is to belong to an IoT ecosystem and how difficult it is to choose the one that suits you best.

All or at least most of those who read my articles know that there is no company in the world, no matter how great it is, it can do everything in IoT. Creating an IoT ecosystem either horizontal (technology) or vertical (industry) requires a lot of talent managers able to maintain win-win transactions over the time. And according to the results, it seems to me that it is becoming very complicated.

Remember, you are not the only one lost in IoT

When it comes to achieving a return on their investment from IoT, businesses really need rethink how they are deploying it so that they can manage remotely and secure their assets, use the sensors and devices data to make better real time decisions and be able to monetise it. However, for both to happen, and for IoT project to not end up in the purgatory, businesses need independent and expert advice at several levels to find the right people to lead the project and the right technology and partners to make implementation successful.

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Bad Cars: Anatomy of a Ransomware Attack

By Alan Grau, VP of IoT, Embedded Systems, Sectigo

TV and science fiction writers have let their imaginations run wild with theories about what could happen if your car was attacked by bad actors. There have been a few real-world cases where white-hat hackers and researchers have been able – in limited, controlled instances – to actually penetrate a car’s electronics and communications systems, take over the car’s steering and acceleration systems, and potentially do real damage.

However, there are other scenarios that might not be as obvious or as dramatic.

For example, what if your car’s computer was infected by a virus that greatly reduced the engine’s efficiency or capped the car’s maximum driving speed? What if the virus did something less dramatic, such as make the car unable to lock the controls for automatic window operation, or simply prevent the car from starting? No one would die, but the car owner would be very upset, posing a disaster for the automobile’s manufacturers.

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Motor City Ransomware

Electric Vehicles require sophisticated control and safety technologies for their electrical power systems to safely manage the high voltages that store and distribute from their battery systems. If something goes wrong, the car cannot operate, people could get electrocuted, or the car could burst into flames or explode. These are real dangers that are managed by the car’s network of fuses, circuit breakers, and control systems.

What would happen if a cyber hacker got into these sensitive electronic systems and turned off the safety and control system?

Why would someone do this? Money, of course.

Suppose the bad guys successfully penetrated and infected these vehicles? Imagine now that they had the software or security keys that could fix these problems, but hold them as ransom, jeopardizing an automaker’s entire fleet of new cars.

How many millions (or tens of millions) of dollars would the automaker pay to get that solution? Holding a manufacturer hostage is a very real possibility, as evidenced by the results that today’s hackers are getting by attacking hospitals and cities and successfully extracting substantial ransoms to just return these institution’s data. In a recent WIRED article, The Biggest Cybersecurity Crisis of 2019 So Far, which discusses the risks to “things” and across supply chains, the FBI explained, "We are seeing an increase in targeted ransomware attacks. Cyber criminals are opportunistic. They will monetize any network to the fullest extent.”

Pre- and Post-Assembly Infections

It is possible that cars could be infected before they even hit the auto dealers’ lots. Bad actors have the capability to infect a small electronic part, essential to the auto manufacturing food chain, purchased from one of the hundreds of component suppliers.

How could auto manufacturers possibly test each electronic element? It is almost impossible - and requires that parts manufacturers themselves take more care in their software development process to ensure the software in these components are not infected during manufacturing process, or during the testing and shipping processes.

Of course, cyber infections could happen on the actual assembly line where the cars are put together. With many car manufacturing plants using IoT connected robots and machines, there is always a possibility of infection happening on the assembly line.

These components could even become infected after assembly, during the manufacturers’ testing and process. Infection, during installation, or with after-market parts and upgrades, could arise after the vehicles arrive at the dealers’ facilities.

Already aware of the possibility and the potential disastrous effects of infected cars reaching the market, manufacturers throughout the supply chain need to become more aware of how their devices could be attacked and infected even before they leave the warehouse. This means embedding IoT security from day one - from the smallest electronic components to final assembly of motors, transmissions and other large vehicle components.

About Sectigo

Sectigo (formerly Comodo CA) provides award-winning, purpose-built and automated PKI management solutions to secure websites, connected devices, applications, and digital identities. As the largest commercial Certificate Authority, trusted by enterprises globally for more than 20 years, and more than 100 million SSL certificates issued in over 200 countries, Sectigo has the proven performance and experience to meet the growing needs of securing today’s digital landscape. For more information, visit www.sectigo.com.

 

 

 

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Internet of Things (IoT) began as an emerging trend and has now become one of the key elements of Digital Transformation that is driving the world in many respects. we are evolving to a more connected, digitized world. Leveraging Industry 4.0 technologies is a necessity if you are going to meet consumer’s demands and maximize efficiencies. Now is the time to redefine how we look at gathering and analyzing data across machines and the supply chain to enable fast flexible, and more efficient processes.

General Electric coined the term Industrial Internet of Things (IIoT) in late 2012.

While many of us are familiar with the Internet of Things used by Nike FuelBand, FitBits, Nest and Samsung as connected devices, there’s much more going on in connecting industrial devices in the world of IIoT.

The Industrial Internet is still at an early stage, similar to where the Internet was in the late 1990s. The IIoT, through the use of sensors, advanced analytics and intelligent decision making, will profoundly transform the way plants & factories connect and communicate with the enterprise.

Industries impacted by IIoT are Manufacturing, Aviation, Utility, Agriculture, Oil & Gas, Transportation, Energy, Mining & Healthcare.

One of the key opportunity that early adopters of the Industrial Internet are pursuing is the improvement of worker and equipment productivity, safety and working conditions in the factories.

The IIoT will revolutionize manufacturing by enabling the acquisition and accessibility of tons of data, at lightning speeds, and far more efficiently than before.

There are several challenges factories are facing:

  • Manual data collected by floor person in a shift has human delays, errors

  • It is not continuous and also not real time

  • Data is not comprehensive enough to do analysis and provide insights to senior management

One such framework available to factories is Intelligent Plant Framework provided by Covacsis.

The benefits are tremendous:

  • It collects real-time data from all the factory machines

  • It is completely automatic so no human errors

  • The data collected is comprehensive to provide actionable insights to the factory in charge

  • With predefined algorithms, the productivity and costs are calculated automatically and recommendations are made for improvement

While systems like MES can only synchronize the operations of the factory, IPF does the performance measurement and management.

Business benefits by implementing IPF:

  • Conversion costs are reduced by 20-30% from raw materials to finished goods

  • Production productivity is improved by up to 30%

  • Plug-n-play with minimal or no customization hence no impact on running factories

  • Implemented in 3-4 weeks compared to months and years of competitive products in the market

With solid experience of implementation in over 70+ factories and 15+ sectors across manufacturing such as Pharma, Chemical, Textile, FMCG, etc; IPF is a clear winner and the need of an hour for factories of future.

The path to Industry 4.0 is via Industrial Internet of Things IIoT and implementation of automation via IPF.

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For those who do not know this famous Goya´s painting: 'Saturn Devouring a Son', it belongs to the series of Black Paintings of the artist. It's the best comparison I can make after returning from the TechXLR8   --- IoT World Europe Summit in London.

In the painting we see the god Cronos, who immutable governs the course of time, devouring a son. The act of eating your child has been seen, from the point of view of psychoanalysis as a figuration of impotence.

Saturn is the Artificial Intelligence (aka AI) and his impotent son is the Internet of Things (IoT). There are other brothers waiting their turn to be devoured by this hungry father. Soon it will be the Augmented Reality / Virtual Reality (AR/VR), the Blockchain and Digital Twins. Not even the 5G will be spared. 

If you are still waiting for the IoT boom, this event is confirmation that the IoT is badly wounded at least in Europe. The few IoT companies that exhibited their products and services at Excel London showed nothing that could overshadow the big winner, the ubiquitous father AI. Although the Augmented Reality / Virtual Reality (AR/VR) does present itself a great rival for the other brothers.

Every time I find it more difficult to justify coming to these events. Neither being a speaker or moderator has allowed me to win a project. I keep doing it to maintain my influence and keep informed my followers on social networks, but I already tell you that physical and economic effort is not justifiable.

The organization this year has sought speakers that mix vendors presentations with success stories of clients. But this year neither of them was able to raise this event.

The few large IT firms present such as Microsoft, SAP or Oracle are on the side of the father "AI" although they show demos IoT many times repeated.

The discussions of the first years of the IoT boom revolved around connectivity, security, IoT platforms, even business models. Now, nobody is interested in these matters anymore. I am sorry for my many friends and myself advising in these areas, but all the fish has sold in West Europe.

Nor have the great integrators been present here. Those who should have implemented IoT solutions for years but never risked investing and continue to squeeze clients with digitalization projects, cloud migration projects, products updates and customized developments. I believe most of them have done a disservice to the acceleration of the IoT.

There was no great IoT news during the event. Perhaps the most important announcement was given by Marc Overton who took advantage of his presentation to announce the recent collaboration agreement between Sierra Wireless and Microsoft to claim industry’s first full-stack IoT offerings. Something that happened far away from here.

As for my sessions, they mixed IoT and Blockchain, something that would have guaranteed success for attendees two years ago or last year but that did not arouse great enthusiasm this year. It is evident that they are becoming a commodity. Something that is not bad, since we would stop speculating about possible use cases and we could be using transparent in our lives and businesses.

Do not worry, the life of IoT events continues, and so this week there are three more:

I believe that Organizers and exhibitors need to try to reinvent the IoT events to make more attractive to visitors and generate qualified leads. We need to see an IoT event where IoT is present in every corner of the floor, in every stage, in every service (cafeteria, rest rooms, transportation, etc). We need to breath IoT every minute.

Otherwise the IoT events will continue driving away visitors and exhibitors and 'Saturn (AI) Devouring a Son (IoT).'

Thanks you all for follow me and read my articles.

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The range and depth of applications dependent on IoT sensors continues to swell – from collecting real-time data on the floors of smart factories, to monitoring supply chains, to enabling smart cities, to tracking our health and wellness behaviors. The networks utilizing IoT sensors are capable of providing critical insights into the innerworkings of vast systems, empowering engineers to take better informed actions and ultimately introduce far greater efficiency, safety, and performance into these ecosystems. 

One outsized example of this: IoT sensors can support predictive maintenance by detecting data anomalies that deviate from baseline behavior and that suggest potential mechanical failures – thus enabling an IoT-fueled organization to repair or replace components before issues become serious or downtime occurs. Because IoT sensors provide such a tremendous amount of data pertaining to each particular piece of equipment when in good working condition, anomalies in that same data can clearly indicate issues.

Looking at this from a data science perspective, anomalies are rare events which cannot be classified using currently available data examples; anomalies can also come from cybersecurity threats, or fraudulent transactions. It is therefore vital to the integrity of IoT systems to have solutions in place for detecting these anomalies and taking preventative action. Anomaly detection systems require a technology stack that folds in solutions for machine learning, statistical analysis, algorithm optimization, and data-layer technologies that can ingest, process, analyze, disseminate, and store streaming data from myriad IoT sources.

But that said, actually creating an IoT anomaly detection system remains especially challenging given the large-scale nature inherent to IoT environments, where millions or even billions of data events occur daily. To be successful, the data-layer technologies supporting an IoT anomaly detection system must be capable of meeting the scalability, computational, and performance needs fundamental to a successful IoT deployment.

I don’t work for a company that sells anomaly detection, but I – along with colleagues on our engineering team – recently created an experimental anomaly detection solution to see if it could stand up to the specific needs of large-scale IoT environments using pure open source data-layer technologies (in their 100% open source form). The testing utilized Apache Kafka and Apache Cassandra to produce an architecture capable of delivering the features required for IoT anomaly detection technology from the perspectives of scalability, performance, and realistic cost effectiveness. In addition to matching up against these attributes, Kafka and Cassandra are highly compatible and complementary technologies that lend themselves to being used in tandem. Not fully knowing what to expect, we went to work.

In our experiment, Kafka, Cassandra, and our anomaly detection application are combined in a Lambda architecture, with Kafka and our streaming data pipeline serving as the speed layer, and Cassandra acting as the batch and serving layer. (See full details on GitHub, here.) Kafka enables rapid and scalable ingestion of streaming data, while leveraging a “store and forward” technique that acts as a buffer for ensuring that Cassandra is not overwhelmed when data surges spike. At the same time, Cassandra provides a linearly scalable, write-optimized database well-suited to storing the high-velocity streaming data produced by IoT environments. The experiment also leveraged Kubernetes on AWS EKS, to provide automation for the experimental application’s provisioning, deployment, and scaling. 

We progressed through the development of our anomaly detection application test using an incremental approach, continually optimizing capabilities, monitoring, debugging, refining, and so on. Then we tested scale: 19 billion real-time events per day were processed, enough to satisfy the requirements of most any IoT use case out there. Achieving this result meant scaling out the application from three to 48 Cassandra nodes, while utilizing 574 CPU cores across Cassandra, Kafka, and Kubernetes clusters. It also included maintaining a peak 2.3 million writes per second into Kafka, for a sustainable 220,000 anomaly checks per second.

In completing this experiment, we’ve demonstrated a method that IoT-centric organizations can use for themselves in building a highly scalable, performant, and affordable anomaly detection application for IoT use cases, fueled by leveraging the unique advantages offered by pure open source Apache Kafka and Cassandra at the all-important data layer.

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Considering that the IoT is in its infancy and due to the last years wasted in predictions that have not been fulfilled, in disappointing statistics of successful projects and with most companies without clear strategies, it is normal to think that R & D is today so necessary for boost and accelerate this increasingly sceptical market.

R&D should be an essential part of bringing innovation to any company via IoT projects. And though we can all agree how important R&D is, it requires a great deal of experience, senior experts, and specific toolsets—resources that not every company can say they have handy.

However, there is a risk when deriving the strategic decisions that the executive directors consider to be technological towards the R & D departments. Many times, oblivious to the reality of the markets, those responsible for R & D with the invaluable aid of the subsidies of the different Administrations, they launch to develop products and technologies for problems that do not exist, just for the fact of obtaining recognition or to continue living without pressures of the Top Management. I am enemy of granted subsidies granted most of the time by unqualified Administration organisms that does not understand that need to prevail the utility, the business model, the business case and the commercialization over the innovation that R & D said to be developed.

Now, if we ask the sellers of IoT technology, products and services, they may not be so happy with the idea of having to talk with the R & D areas instead of with other areas of the company more likely to buy. Most time, R &D departments decide to do it themselves. Vendors know, that with great probability, they will not to close deals due to lack of budget of the R &D or the low visibility of this area by the rest of the departments of the company.

The Importance of R&D for the Internet of Things

Innovation in IoT is a major competitive differentiator. See below some advices to have a decisive advantage over competitors:

  • IoT-focused companies need to invest in R&D to keep up with the rapidly changing and expanding market. It is important that an organization’s R&D iteration turn times are quick, otherwise the company is not going to be able to keep pace with the expected IoT market growth. However, it’s not enough to simply speed up R&D—innovative IoT firms, both start-ups and established companies, must also make sure their R&D processes are extremely reliable.
  • You can’t solve R&D speed issues just by increasing budget.
  • Executives must maintain strong, steady communication with R&D regarding the department’s priorities over a particular time frame and how progress will be measured.
  • Guidelines are invaluable: The more structured and streamlined R&D procedures are, the better IoT companies will be able to move from conception to delivery.
  • Design innovative IoT products but accelerate time to market.
  • Internal collaboration: R&D team should share real-time data across internal departments to spur intelligent product design
  • External collaboration: Connect with customers and partners to ensure success
  • Differentiation: Drive overall business value with IoT.

 

 

Outsource or not Outsource R & D for your IoT project

Just like any other technology, IoT products and solutions require thorough research and development, and it better be done by professionals. Despite the noise generated by analysts and companies around the IoT, the reality is that there have not been many IoT projects and therefore it is not easy to find good professionals with proven experience in IoT to hire.

When I think of Outsourcing IoT projects, Eastern European and Indian companies immediately come to my mind. No doubt because the R & D talent seems to be cheaper there. Spain could also be a country to outsource IoT, but at the moment I do not see it.

The benefits of Outsourcing R&D for IoT Projects:

  • Expertise and an Eye for Innovation
  • Bring an IoT Project to Market Faster
  • Optimize Your Costs
  • Control and Manage Risks

I am not sure about the quality of most of these companies or the experience of their teams in the development of IoT products or in the implementation of IoT projects, but there is no doubt that there are benefits to Outsource R & D for some IoT Projects. You should select any of these companies after a careful evaluation.

Recommendation: Do not stop your IoT projects if you do not have the skills and professionals in house. Luckily, there are companies who offer outsourcing R&D for IoT projects.

Note: Remember I can help you to identify and qualify the most suitable Outsource R&D for your IoT project.

Spain is not different in R & D for IoT

I have not believed in R & D in Spain for years. There are exceptions without a doubt, but it seems evident that the prosperity and welfare of Spain is not due to our R & D. Fortunately we have sun and beach and a lot of brick to put in houses that are not sold because of high prices and low wages.

With the entry into the EU, I thought that we had great markets open to us. I was also optimistic that we would have great opportunities in the Latin American market, thanks to the fact that our research and development capacity would have been consolidated effectively in our companies and universities because it would be profitable and worldwide recognized.

But it has not been that way. The technology developed in Spain and more specifically that relating to the IoT has little chance of being commercialized in France, Germany and not to mention in the UK. If we add the development gap of the countries of South America and that our local market is averse to technological risk, it is difficult to flourish R & D in IoT or Industry 4.0 here in our lovely Spain.

That does not mean that we do not have public R & D budgets for these areas. What happens is that the same thing that happened during the last 30 years has happened. The incentives and aids are few and for the most part used to finance large companies with little return to society. There is no rigorous control of the aid granted and, above all, there is no plan to encourage the local and global marketing of the products developed with the talent of our scientists and researchers.

I have stopped believing and trusting in our successive Governments for the change in R & D but there are exceptions that are worthwhile to follow and work with them. For this reason, I continue help them demonstrate that “SPAIN CAN BE DIFFERENT”.

Key Takeaway

After years of unfulfilled expectations, companies are sceptical of the potential growth of the IoT market or the benefits in their business. R&D department can be a cure to boost IoT initiatives but also a poison to kill IoT initiatives.

 

IoT may have started in R&D, but their benefits don’t have to end there. To drive overall business value, it’s important to share IoT data – both internally and externally. Facilitating open collaboration, discovering new ways to innovate products, and accelerating time to market, you can differentiate R&D and your business.

As fast turn times and reliability becomes a focal part of companies’ R&D processes, these companies will be well-positioned to thrive within the IoT market.

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Digital Transformation is now a number one priority for many businesses. Over the past two years, businesses have put increased focus on digitally transforming their brands from the inside out.

 It is an ongoing process of change based on the market and the needs of the customers. To deliver this change successfully, there is a need to establish a clear vision with objectives & expected outcomes.

 Simply put vision is a picture of how the organization will look like after stipulated time.

 Importance of Vision:

 ·      Provides the big picture and clearly describes what your organization will be like in several years

·      Clarifies the right direction of change to ensure that everyone is moving forward

·      Inspires everyone to take action in the set direction

·      Synchronizes the action of different people. It provides self-sufficiency to individuals and teams while reducing conflicts.

 

There are some do’s & don’ts for setting up a vision:

 

Do’s:

·      Develop a Vision that is in line with the company growth strategy.

·      Connect with partners who support your vision, not only third-party technology vendors but your own customers and employees

·      It should create the sense of urgency

·      Link vision to specific goals in future

·      Describe how the company will actually change

·      How will you engage differently with customers?

 

Don’ts:

·      It remains only as floor branding and marketing

·      Restricting the employees with set vision & its boundaries

·      Vision is way too complicated, vague and lacking actionable initiatives

·      Poor communication of the vision beyond the involved few stakeholders

·      Setup the vision before analyzing current systems and operations

 

Vision brings in the cultural change that is required for Digital Transformation. People are extremely important in this roller-coaster ride. 

  

When the digital vision is not clear, that affects the speed of adoption of both senior management and middle management. People will not act just because technology is ready. 

 Some successful vision statements, which helped companies in their digital transformation:

 Google - To provide access to the world’s information in one click

 Amazon - To be Earth’s most customer-centric company, where customers can find and discover anything they might want to buy online

 Walmart - To be the best retailer in the hearts and minds of consumers and employees

 GE - To become the world’s premier digital industrial company, transforming the industry with software-defined machines and solutions that are connected, responsive and predictive

 Ikea – To create a better everyday life for the many people

 Southwest Airlines - To become the world’s most loved, most flown, and most profitable airline

 

A top-down vision is a cornerstone & catalyst for digital transformation. These and many companies have created great vision statements to survive in this digital age.

 
 
 
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IoT In Banking And Financial Industry

Internet of Things industry is developing rapidly and it provides people with a range of digital devices and sensors all around the world. According to predictions of Gartner consulting agency, about 6,5 billion of connected 'things' will be available by the end of 2018. And, by the way, this figure has grown to 30% comparing to 2016. It is expected that we will get almost 20 billion IoT devices by 2020.
 
As IoT is surrounding us in all fields of activity, banking area is also striving to make use of IoT and get some benefits. The niche of IoT software development is growing, so let's see the main reasons why you need IoT in banking and other financial services.

Why you need IoT in your financial business

Usually, when you start dealing with something new, you need to see strong reasons why you need it. That is why before you start developing your own the IoT solution for banking or any other FinTech service, you need to see advantages of IoT in this field. How has the Internet of Things impacted business? In this section, we will pay attention to 5 benefits why IoT can be beneficial for financial business. 
 
iot finance
How IoT can be used in banking
 

Collect all data in real-time mode continuously

For example, when individuals want to insure the car or house, using the IoT, they can always get access to the up-to-date information regarding patterns of using the insured product. If they insured the car, they can see all regulations and rules concerning all insurance cases gathering sensor data from any point - whether it be their home or car. And, yes, it is just one example of thousand other possible options thatIoT solution providers can offer.

Personalized customer service

Considering that preferences of the customer change very fast, financial institutions along with other fields simply cannot ignore new digital innovations and they need to engage in the development of new solutions. Today customers can always stay in touch with their bank using a tablet, smartphone or laptop. That is why banks see perspectives in the development of IoT apps that make it possible to gather more data about customers, their behavior, and preferences. The IoT connections facilitate a widescale data collection about users. This data helps banks understand their customer better and offer them more interesting and personalized experience, useful target tips. It leads to a new level of interaction between bank and customer and to the great future of banking technology.
Example: imagine that your customer came to your bank and they just enter the main door. You can use the network of sensors and beacons with appropriate software to authenticate the customer with the biometrics like facial recognition. This customer every day withdraws a certain amount of money in ATM of your bank, and thus ATM will prepare money for the customer, and when the user enters his PIN, cash will be prepared to withdraw. By the way, you can find more benefits of facial recognition software in our article. As you see, IoT and banking area can be mutually beneficial.

Enhancing the decision-making process

If the bank learns more information about their customers getting the data from the IoT devices, it helps improve decision-making process with better customer service and product strategy. For example, using data from social media or buying preferences of the customer, banks can build the picture of potential credit risk for each customer and then make commercial offers to the potential customer. Here you need the development of analytical software that will help implement it, and our company can assist in it. Thus, IoT in financial services can help specialists understand the general condition of other fields. Up-to-date data will give the current situation in retail or agriculture that is very important in the process of new markets analysis.

Communication between various devices

Combination of sensors and software will help make cashless payments automatically, without even touching user's phone or banking card. This financial solution can become widespread one day. As an example, users go to the cash register in the supermarket, and there is a sensor installed that detect the number of products in their cart and the type of these products. Then it calculates the total sum for all products and connects to their mobile wallet. The payment is done automatically. But of course, this FinTech solution should undergo governmental approval to meet all financial regulations.

Customer smart interaction with the Internet of Things

For today, capabilities of the IoT in banking sector and other financial areas are not revealed in a full manner. The Internet of Things is just starting entering in FinTech. But it is expected that the IoT will play a very important role in banking strategies.
Experts predict also the development of the niche where customers will be able to connect their banking account to the range of smart devices. For example, smartwatches will give their owners a signal when they exceed the limit of planned expenses. Today banking apps already can give you notifications about all financial transactions, but this algorithm will be modified to the new level.
 
banking and iot
 
As a result, we can show a simple example of what capabilities IoT in banking and finance area has, but this list will grow as innovations appear. And if you have any idea on the development of your own banking software - do not hesitate to contact us.

Ways how IoT can be used in financial sector

Banks from all over the world are trying to use IoT capabilities in their industry to get more customers involved. Starting from mobile banking apps that today are used by the majority of all world banks, since apps help monitor preferences of customers, to the range of sensors that make it possible for financial institutions to gather information from their branches and sensors in wearables that can track how customers use banking products. The Internet of Things and financial services create a beneficial combination.
 
internet of things use cases in banking
Ways of IoT application in FinTech sector
 
IoT vs fraud
If you are a faithful fan of our blog, then you saw our article concerning the prevention of fraud in FinTech app using artificial intelligence. Well, IoT and AI can become the symbiosis can enhance and improve the process of fighting the cybercrime. IoT FinTech devices and software with integrated AI can collect more data about financial transactions made by their customers that will help improve the security level and make financial processes easier and more secure.
 
Invisible payments
As we mentioned above, the combination of sensors and software facilitates the development of invisible payments and other main financial procedures using wearables like smartwatches, voice-recognition devices, special RFID sensors in Uber cars and restaurants to make automated payment without taking the phone out. A 22% of world financial organization CEOs predict the payment from cars to become a reality in the next two years, according to PwC.
 
Payments from everywhere
Let's not forget about smart refrigerators and other home appliances that also allow users to make payments for food delivery, like an example. IoT in finance industry can let you create an ecosystem for the optimization and acceleration of payment process. Pay from everywhere - wherever you are. Cleveroad can give you a hint on how to create an advantageous IoT app.
 
Autonomous wearables
As for statistics, 60% of world-leading financial institutions plan to make wearables the main payment device within a couple of years, it is a kind of IoT business strategy. Moreover, it is highly possible that the new generation of wearables will be created - wearables that function without a smartphone. Rings, VR devices, and even hi-tech clothes will replace common smartwatches one day.
 

Main challenges you may face adopting IoT in financial sector

Never forget about the main rule - all coins have two sides. And IoT technology has its second side that will show you some pitfalls IoT brings to humanity. Especially if it concerns finances where accuracy and security are highly important. All benefits shown above will bring some problems related to confidentiality and security of customers' personal data. The financial field that uses IoT connections should make sure the safety of personal data to their customers. Let's see main weak sides of IoT in FinTech.
 
Privacy and security
That is the main danger that can be ahead when people use the Internet of Things in finance. Since IoT is the whole network of devices and various software, the risk of hacking is increasing exponentially. And in case of financial industry, the privacy and security are the most important issues to be taken into account when thinking about protection. When the financial and personal information is being transmitted through the IoT network, all this data can be breached and hacked. So the privacy and security concern means a lot and rapt attention should be paid to it.
 
No common standards
Different devices require different maintenance approach. Unfortunately, there are no common standards for maintaining IoT equipment. It seems to be impossible for today to resolve this issue. The matter is that all hardware used in IoT can be manufactured by different suppliers and they cannot have one common maintenance standard. And even if all hardware manufacturers in the world will agree to use one specific standard, technical issues will still remain. Only if there will be one monopolistic manufacturer of all equipment, but it is unreal since it will damage economic situation in the whole world. So, the lack of common standards can be the reason for failures in the functionality of IoT devices.
 
Complex system
As we mentioned above, the longer and bigger system is, the higher the probability of any failures in the system. But considering that this is a financial field, failure in IoT network can become the reason for total malfunctioning in the whole system and lead to huge losses. IoT can be represented as the chain where each link plays an important role in proper connection. Break one link - all chain will be broken as well. And it concerns both hardware and software part. That is why you should choose high-quality hardware manufacturers and experienced software development companies. So IoT in banking industry and other financial services is a technology that is rather difficult to deal with.
 
Higher unemployment rate
IoT helps automate working processes that required human brain before, and it means that some employees would simply lose their work positions, especially if these are young and not so skilled workers yet. Banks and other financial institutions will have to cut more jobs with the advent of IoT technologies in the financial industry. Unemployment growth will damage economic and social situation not only in one specific country but also in the whole world economy.
 
iot and finance
Pitfalls Internet of Things hides in financial sector
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What is an Intelligent Transportation System (ITS)?

The European Telecommunication Standards Institute states that intelligent transport systems are those which include telematics and all types of communication between vehicles, in vehicles and between vehicles and fixed locations. Moreover, ITS is used not only in road transport but also in rail, water, and air transport. The Integrated System is quite capable enough of consuming a large amount of data and hence producing useful information to the traveler. This efficient information guides the traveler to reach their destination in the most optimized way.

Why a large amount of data is important?

We hear more often that people are getting fastly connected than ever because of accessibility to high-speed transportation and increased capability for sharing information, IoT in transportion is a fusion of this large amount of data which comes from multiple sources.

According to a study by McKinsey Global Institute recently it was stated that automotive industry will be the second largest producer of data in the forthcoming years and if we combine automotive with travel and logistics industry then the output for the same grow by an additional 30%.

How the data is fetched from sensors?

Sensors are highly important to get the raw data and if we consider the data of one sensor with another than we can get a deep understanding of the performance and behavior of the system. With the IoT in transportation, sensors and fetched data from them helps in detecting whether a wheel on the vehicle is slipping or not and accordingly alerts the driver or the concerned person to apply brakes. The data from these sensors help in the real-time analytics within the vehicle.

How this sensor system enables to take quick business decisions?

Data from various sources is collected and is integrated to reduce the uncertainty. Data collected from sensors is gathered and is analyzed further to have a deep insight such that it reduces the uncertainty for a particular situation. For example, the ambient air temperature being used alerts that the temperature is below freezing and the sensors used on the axle reports slippage then the situation come out to be that there is ice in that area. These alerts are sent by the cloud analytical system and (not sent manually) which warns the driver before entering a particular area.

Further, the cloud-based system sends this report to the operations center as well. This analysis report is further sent to nearby and surrounding systems which are outside the geo-fenced area. Alerts tell them about the detected ice region so that they can re-route if possible.  

 

The Industrial IoT and its myriad potential have changed the scenario of the Transportation industry. the system has enabled to make smarter and more informed decisions. The IoT technologies need to be embraced to cope up with the competition. As the industry was in continuous suffering from heavy operational costs, the implementation of Internet of Things has made safe and cost-efficient business operations. On leveraging IoT, the connectivity and capability for predictive analytics has streamlined the processes and hence has enhanced their bottom line.

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Given my Telco background, it was logical that back in 2014, I published some of my first articles in my  IoT Blog about the topic “IoT Connectivity . I described how the optimist predictions of analysts and companies like Cisco or Ericsson, made the Machine to Machine (M2M) an attractive market to invest.

The fact that “Tata Communications have acquired mobility and Internet of Things specialist Teleena is a clear indication of the phenomenal growth rate in the global IoT connectivity market. “By 2021, enterprises’ spending on mobility alone is set to surpass USD 1.7 trillion,” said Anthony Bartolo, Chief Product Officer, Tata Communications.  I hope to see Tata Communications/Teleena in the next Gartner´s Magic Quadrant for M2M Managed Services Worldwide.

There are still people who doubt that connectivity is a key component in the M2M/IoT Value Chain. Please remember without connectivity simply there is not IoT.

Obviously during these years many of my projects have been associated with IoT connectivity. From the analysis of M2M/IoT Service Providers to the conceptual design of end-to-end solutions where connectivity selection was a key component. One of the most interesting projects was the analysis that I made for the Telefonica project "IoT in a box". Without forget projects to compare LPWAN technologies, End to End Security, Identification of Uses cases for 5G. Sometimes also I had to sell IoT connectivity.

In the last years in the IoT connectivity market I have seen:

  • Consolidation of the market like “KORE buys Wyless” or “Sierra Wireless, Inc. Completes Acquisition of Numerex Corp.
  • The appearance of companies like 1NCE, the first dedicated Tier 1, Narrowband IoT MVNO providing fast, secure and reliable network connectivity for low data B2B applications offering a set of optimized product features – such as an IoT flat rate and the first of its kind 'BUY ONCE'​ lifetime fee
  • The still not bloody battle between LPWAN operators (SigFox, LoRA network operators, NB-IOT, LTE-M)
  • Telco Vendors, Operators and Analysts talking about the promise of 5G
  • New Wifi and Lifi IoT use cases
  • IoT Security breaches
  • Operators focus on key industries and use cases
  • The partnership M2M/IOT Service Providers ecosystem evolution
  • Agreements among M2M, MNO and Satellite operators.
  • The lack of standards in the Smart Home connectivity
  • The expectation for solve the real time connectivity challenges in Industry 4.0 and Edge Computing –
  • Time Sensitive Networking Industry 4.0 use cases and test bed by IIC members
  • ….

But in my opinion, enterprises still are confused and delaying their decisions to adopt IoT / IIOT because they need good advice about the right IoT connectivity not just the cheapest prices but easy integration or better customer support.

I want to remember again that I can help you in the selection of the right M2M /IoT Service Provider for your enterprise business requirements as a strategic decision.

IoT Connectivity - the ugly Duckling of IoT Network Operators

Telecoms operators’ more focused approach to bolstering their IoT businesses appears rooted in refining the technology inherent in their connectivity networks. And no wonder, The powerful GSMA has been helping Mobile Operators to define their role in IoT. At first sight, the best way for large telecoms operators generate value from the IoT might appear to be by providing connectivity via their networks. Additionally, they could leverage their vast experience in customer engagement, customer premise equipment (CPE) support and their robust, proven back-office systems by offering their OSS and BSS platforms externally to IoT users, using their OSS to provide users with a turnkey platform to manage their equipment proactively in real time, and their BSS to support the related billing requirements. In fact Global telcos set sights on IoT for growth in 2018.

Nevertheless, Analysys Mason, highlighted “Telcos have been working with the broader ecosystem, including developers, cloud players and hardware vendors this past year – all of which “should set the market up for an active 2018”.

Although many people think that IoT connectivity  is or will become a commodity with little value for customers and along with the hardware will form the ugly ducklings of the value chain, IoT Network Operators should strive to demonstrate that IoT connectivity is vital for the global adoption of the IoT and seek to increase the income derived from its connectivity services with aspect like security and the contextual data value that their networks transport.

IoT Data is the new Oil also for IoT Network Operators

If connectivity seems doomed to play the role of ugly duckling, the data on the other hand see how its value increases and increases with each new technology.

How many times have we seen a presentation with the title "Data is the new Oil”? Even taught by me

Many Telcos are in process of Digital Transformation. The want to compete with the Google, Apple, Facebook, and Amazon (GAFA) and avoid same situation lived with these Over the Top (OTT) vendors.  IoT is giving them an opportunity to monetize the IoT data and convert their networks in pipelines of value.

IoT data is a new source of revenue without forget that will also produce incremental profit through operational productivity and efficiency.

The new stream of data coming from the physical world and the billions connected things are mostly transported by the IoT Network Operator´s networks and once these data is captured, the IoT Network Operators can monitor everything and feed their AI systems. Is then, when finally, IoT Network Operators can make a lot of money of IoT contextual data and aggregated data.

Can you imagine the opportunities leveraged by the connection of millions of devices and intelligent things over your IoT network? A vast amount of useful data generated by smart containers, smart home appliances, smart cities, connected cars, smart healthcare devices, or wearables, which for many businesses is an extremely valuable commercial tool. IoT Network Operators possess the capability of performing real-time data analytics on readily available data to determine product performance, improve customer experience and forecast network capacity, all of all which IoT-ready businesses could benefit from.

Key Takeaway

IoT connectivity is still at the core of all IoT Network Operators / M2M Service Providers. But some of them are implementing different strategies to capture more business of the IoT value chain. The idea of IoT connectivity will become a commodity with not added value is influencing the decision to invest in new IoT enabled networks (5G, LTE-M, NB-IoT).

It’s clear that there are some strong opportunities for IoT Network Operators / M2M Service Providers looking to capture the full potential of IoT, and it’s time that they open up their services to support companies from all sectors who are looking to employ IoT connectivity but also machine data intelligence as part of their business models in this IoT driven digital transformation.

Telcos offering IoT connectivity should look to monetise data and offer businesses unique insights that could potentially open doors to new revenue streams or even improve operational efficiencies. 

If IoT business is about data and assets, Telcos need to shift from technology and connectivity to business value and creation of valued services.

 

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