As more internet service providers, computing, CPU, networking, storage, and hosting enterprises are converging to offer cloud services, scalable edge nodes are becoming increasingly important for both embedded computer suppliers and OEMs that use embedded computers. SENs solve the problems that come with operating dozens of different machine network types and protocols. In many cases, these machine networks have security and safety concerns that require them to be isolated. This is well beyond the typical Enterprise IT basket of concerns. Due to this increased need, VDC estimates that within five years, the overall revenues for SENs will more than double. During this QuickCast, VDC's David Laing discusses the unprecedented opportunity cloud services present for embedded computer suppliers and users, and where scalable edge nodes fit into the equation.

1. Embedded Hardware & Systems Practice
David A. B. Laing – Program Manager, Senior Analyst
QuickCast
Scalable Edge Nodes Enable M2M
March 2012
Through The Embedded Cloud
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

2. Recording Available
A full audio recording is available for download at:
http://vdcresearch.com/market_research/embedded_hardware/freeresearch.aspx
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

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© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

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© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

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© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

6. Today’s Speaker
David A. B. Laing, PMP
Program Manager, Senior Analyst, Embedded Hardware
David has joined VDC’s Embedded Hardware Practice after serving for the last two years
as a Senior Analyst / Program Manager in the firm’s Industrial Automation and Controls
research practice. David is now responsible for supporting VDC’s market research and
custom consulting initiatives relative to emerging global opportunities, regional growth
strategies, and market intelligence for embedded hardware, systems components,
technologies, services, and related applications across multiple vertical markets.
Prior to joining VDC Research, David accumulated over 30 years of Semiconductor
industry experience working at Teradyne Inc. and its worldwide customers. David held
multiple positions in support, engineering, IT and management including project and
support product management. David earned an MBA degree (Summa cum Laude) from
the F. W. Olin Graduate School of Business at Babson College and BS in Electronic
Systems Engineering Technology from Wentworth Institute. David is a certified Project
Management Professional (PMP) through the Project Management Institute.
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_hw/
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

7. Embedded Ecosystem Roles – Scalable Edge Nodes
Clouds in Embedded Applications
Scalable Edge Nodes
Enable M2M Connectivity
Market Penetration
Laboratory
Health Care Instrumentation
Facilities
SEN
SEN
Security/
New Application Embedded to IT
Process Access
Application
Control Plants Embedded Control
Migration
Remote Supervision ISVs SEN
30% Monitoring & Control SEN Government
Tier 2/3
NOCs
Service
Hospitality Providers Tier 1
Battlefield
Device/ Equipment Lodging/ Service Providers
C4ISR
Monitoring Facility (CLOUD
SEN EPICENTER) SEN
IT
Embedded
Vendors
2010 2012 2014 2016 OEMs
Retail Tier 1 CPE IP
In Store
SEN Enterprise SEN
Next Gen
Data Centers
Supply Chain/ SEN SEN Discrete
Distribution Mfg Facility
Enterprise Networks/ Applications Embedded Networks / Applications
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

8. Embedded Ecosystem Roles – Many Business Models are Possible
Company A
First Derivative Company B Cloud Service
(Company A’s Customer)
SEN/Data/O/S Apps
B2B Example Providers
Business Industry
Data Storage
Company A’s “Cloud Service”
Data
Apps
Processing
Company A
Web
Data
Cloud Service Interface
Providers
Software/
Applications
Applications
Internet Scalable Edge Node
Company A’s “Cloud Service”
Data Data Storage
Machine* Machine* Machine*
Processing
Data
Company C’s Company C
Business
Web Machines Rules/Apps
Interface (Company B’s Customer)
Scalable Edge Node Software/
Applications
Machine* Machine* Machine*
Company B For Embedded Cloud M2M
(Company A’s Customer) Many Entities Can Be Involved
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

9. Embedded Cloud – A Few M2M Energy / Infrastructure Applications
Energy & Infrastructure are all fertile ground for SEN enabled M2M connectivity and cloud enabled services
Provide Many Benefits
Networks of
Sensors on
Pipelines
Cloud Service
Providers
Data Storage
Networks of
Sensors on Connected
Cloud Service
Bridges Processing
with SENs
Reduce/Mitigate Bad Events
Web Interface
Software /
Applications
Networks of
Sensors in
Buildings
Networks of
Sensors on
Wind Power
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

10. Embedded Cloud – A Few M2M Transportation, Retail Applications
Interlocking networks of sensors and equipment connected by SEN have benefits from transportation to retail
Networks of Sensors/ Provide Many Benefits
RFID Tags in
Ships/Cargo
Cloud Service
Providers
Data Storage
Networks of
Sensors on
Cloud Service
Processing
Connected Reduce Counterfeit Products
Trucks and Trains
with SENs
Web Interface
Software /
Applications
Increase Sales through Digital
Signage, Mobile Apps and Information
Networks of portals for store personnel, corporate
executives and merchandise suppliers.
RFID Sensors
in Stores
RFID Tags on
Merchandise
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

11. Summary
M2M Connectivity is driving
growth of SEN market
The embedded cloud is opening
new service channel
opportunities for OEM using
embedded computers as well as
sensors
In M2M Security and Safety are
prime considerations
Many business configurations
are possible
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com

12. Thank You
For more information please contact:
Bob Perugini – Account Director
rperugini@vdcresearch.com | 508.653.9000 x144
Chris Rommel – Vice President
David Laing – Senior Analyst
For complimentary insights and marketing data:
http://blog.vdcresearch.com/embedded_hw/
http://blog.vdcresearch.com/embedded_sw/
© 2012 VDC Research QuickCast
Embedded Hardware & Systems
vdcresearch.com