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IoT And Inevitable Decentralization of The Internet

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The Internet of things isn't just here, it's inevitable and it's going to re-architect the internet as a result. It's time to drop our obsession with analytics and focus on value creation.

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IoT And Inevitable Decentralization of The Internet

  1. 1. IoT, Analytics & Decentralization: Rethinking The Basics Paul Brody November 2016
  2. 2. Page The era of IoT isn’t just upon us, it’s inevitable. And it’s going to completely change the internet.
  3. 3. Page 3 We can get upwards of half a terabyte of data from a single flight from all of the different devices which are internet connected. Virgin Atlantic on aircraft data output: http://www.computerworlduk.com/news/data/boeing-787s-create-half-terabyte-of-data-per-flight-says-virgin-atlantic-3433595/ We’ve become besotted with analytics and advertising as if that’s the world’s most important business
  4. 4. Page 4 Connected cars will send 25 gigabytes of data to the cloud every hour Connected cars generating data for the cloud: http://qz.com/344466/connected-cars-will-send-25-gigabytes-of-data-to-the-cloud-every-hour/ We’ve become besotted with analytics and advertising as if that’s the world’s most important business
  5. 5. Page 5 So what? We’ve become besotted with analytics and advertising as if that’s the world’s most important business
  6. 6. Page Never forget the unique economics of information. 6 The cost to reproduce information is zero. Unless you have a monopoly on the analytics in question (and there are no reasonable substitutes), you operate in a market with infinite supply and finite demand. The market clearing price in those situations is zero.
  7. 7. Page Large data stores are shifting from strategic asset to security liability. 7 0 40 80 120 160 Adobe 2013 eBay 2014 Heartland 2009 TJ Maxx 2007 AOL 2005 PSN 2011 US Military 2009 Target 2014 Evernote 2013 Ashley Madison 2015 Major Security Breaches, Users, Millions Source: "Chart of the Day," Statista: The Statistics Portal, https://d28wbuch0jlv7v.cloudfront.net/images/infografik/normal/chartoftheday_2540_data_breaches_n.jpg, accessed February 10, 2016 Breaches Are Evolving Credit Cards Personal Data Corporate Information
  8. 8. Page Never lose sight of the product value proposition. 8 Image from Wikimedia, creative commons license. Features of a new $1,700 “Smart” Washing Machine: •Start, stop, and check status remotely •Notification when laundry cycle is complete •Assign tasks to other family members •Remind you to do the washing Key missing feature: does not actually do better laundry.
  9. 9. Page 9 Our customers own their data. End of story. William Ruh, CEO, GE Digital Strategic thinkers are already looking past simple analytics- based strategies.
  10. 10. Page What’s all this data-frenzy good for? The Internet of Things needs to become the Economy of Things 10 Instrument Optimize Monetize Sensor networks Asset Management Asset Markets
  11. 11. Page Every asset and resource is likely to participate in multiple digital marketplaces 11 Rental / Leasing Insurance Utilities Sensor Data
  12. 12. Page Companies aren’t just pursuing the wrong business model, they’re pursuing the wrong technology architecture • Extremely resilient, secure computing architecture without depending on a single, centralized source of truth • Guaranteed replication of data & code to a large number of participants using cryptography and hashing • Tamper-resistant database with exceptionally strong audit trail • Secure, consistent code execution across platforms & devices Trust & Security Are Scarce Processing Power Is Abundant 6 890 2,222 1 10 100 1,000 10,000 AWS Servers PCs SmartPhones Global Installed Base of Computing Devices
Millions of Units in 2015
  13. 13. Page Blockchains are a true revolution in computing. And just what we need, right when we need it. Secure Efficient Open Commercial Resilient and reliable. Using the resources already there. Open source, transparent. Designed for commerce.
  14. 14. Page A new era of computing is dawning, and it will affect every technology company out there. Modern Era Expensive Computing Post-Modern Era Free Computing High Trust Environment Centralized Internet Low Trust Environment Distributed Internet
  15. 15. @pbrody linkedin.com/in/pbrody Paul Brody February 2016

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