Our lives are changing in exciting ways. Devices in our homes, automobiles, cities, and factories are becoming connected to the Internet, and this phenomenon has profound implications for businesses. As the IoT groundswell grows, it will unfold in five phases of maturity.

1. 5 phases of IoT: a market maturity model for
the new connected device economy
ALTERNATE TITLE: What shoes and pigeons can teach us about slaying
IoT dragons
Mark Benson, CTO @exosite
IoT Fuse, 19 March 2015

2. The IoT opportunity
Recent Economist survey:
Expect their company to be
using IoT within 3 years
“IoT is our single biggest
threat AND biggest
opportunity over the next 10
years” – Brand-name fortune
500 board of directors
*Source: ABI Research, Cisco, Craig Hallum Estimates
0
2
4
6
8
10
12
14
16
18
20
$0
$50
$100
$150
$200
$250
DevicesBillions
MarketSizeBillions
Big Data Analytics (53%
CAGR)
Connected Device Platforms
(33% CAGR)
Platforms (33% CAGR)
Application Enablement
Platforms (32% CAGR)
Value Added Services (26%
CAGR)
System Integration Services
(24% CAGR)
Hardware (23% CAGR)
Connectivity (12% CAGR)
Internet-connected devices
(Cisco Estimate)
95%

3. The micro-vertical challenge of
IoT
7 billion
cell phone subscriptions
50 billion
connected devices by 2020
(Many devices of a few types)
(Few devices of many types)
HERE BE DRAGONS
(20%)
(80%)

4. IoT is
complicated
(and fragmented, and
requires new business models, and
disrupts industries, and introduces new
security threats, and involves resource-
constrained devices, and generates lots and lots of data,
and uses new sensor technology, and opens up new use cases, and
runs on unreliable networks, and uses a variety of network equipment, and is
difficult to service, and creates new legal liabilities, etc., etc.)
With all this complexity, it’s easy to lose track of the goal

5. Successful IoT products have
PURPOSE
as opposed to being merely
solutions looking for problems

6. 5 phases of industry
maturity
Maturity Levels Shoemaking Pigeon Racing Internet of Things
1. Ad-hoc Cottage industry Domestication Customized projects
2. Repeatable Guilds and apprenticeships Pigeon posts (RFC 1149) Data platform products
3. Defined Formalized training Pigeon racing Vertical industry solutions
4. Measured Mass production Advanced timing systems Inherent cloud connectivity
5. Optimizing Marketing analytics Selective breeding Standardized access
Critical maturity milestones

7. The micro-vertical opportunity of IoT
HERE BE VICTORY!
(20%)
(80%)
The multi-headed dragon we must
slay to unlock the long tail of IoT:
1. Solutions looking for problems
2. Fragmented interoperability standards
3. Unsophisticated end-point security
4. Legacy business models

8. The IoT movement needs
purpose-seeking dragon
slayers
• Thought leaders
• Security architects
• Business model innovators
• Trusted advisors and consultants
• Software designers and developers
• Technologists that can design and develop on multiple layers
• Entrepreneurs that develop technologies to make IoT easier
The journey is just getting started

9. Thank you
markbenson@exosite.com
@markbenson