Internet of Things New ecosystems or another bastion for the usual suspects? - Vincent BONNEAU, Head of Internet Business Unit, IDATE - DigiWorld Summit 2014

1. M2M & Internet of Things: Smarter objects, smarter processes
Internet of Things
New ecosystems or another bastion for
the usual suspects?
IDATE Insight
Vincent BONNEAU
Internet Business Unit Director
20 November 2014

2. Today’s Internet : Domination of a few Internet giants around services
Internet giants are key players on all key markets
Video Social
Music & books
Online Games
e-commerce
Cloud
25%
15%
10%
5%
LEGEND:
25 50 75 100 125 150
Comm’n
Mobile
apps
Search
CAGR 2014/18
20%
Ultra Domination of giants
A few contenders, but giants are key
Open competition
> A few rare contenders without a platform strategy (Twitter, Netflix, Dropbox…)
> A few local players in Russia, China or South Korea with similar portfolio approach
> A major role of data into players strategies (less for Apple)

3. Internet of things : much more data! and new leading players?
Internet giants having direct or
indirect majority control via their
OS and marketplaces
Internet giants
having direct or
indirect major
control with OS
and
marketplaces
Source: IDATE Consumer
• Controlled by verticals
(generally closed loops), with
telcos often as enablers
• Internet giants’ first forays via
their OS and platforms
• Relatively controlled by
verticals
• Need to evolve due to open
loops for supply chain/delivery
• Internet players may benefit
from it if objects are tagged in
shops
• Plenty of emerging
solutions from new players
• Data relatively open for now,
as revenue is coming mainly
from things. Can be captured
by Internet giants
• Sold mostly by big brands
(sports or devices)
• May become M2M if direct
connectivity is included
> Various concepts under the IoT umbrella, hard to have impacts in all potential markets
> Internet giants influent and capturing data in consumer markets, almost absent in other markets

4. Internet giants have been expanding steadily towards devices
> Having control of the device has a deep impact on services, forcing Internet giants to react to the
marketplace to some degree
> Different roads taken around device design/sales or presence through operating systems
4
Microsoft acquires Nokia for 7.2 billion USD! Amazon launches its own devices Google Maps impacted by Apple decisions

5. Internet giants are reacting to avoid losing access to personal data
Google expanding to various verticals
> Vertical diversification is part of Internet giants’ strategies, beyond the Internet of Things
> Internet giants have already failed in some of their diversifications

6. Internet of Things: developments expected around business models
(Expensive) hardware sales
Today main models
Source: Vodafone
> Data is used mostly to improve existing processes within advanced verticals through
automation
> Consumer solutions are mostly relying on hardware revenues

7. Internet of Things: developments expected around the business models
Servicization? Aggregated Data monetization?
Source: Renault Source: Amazon Source: Telefonica
3rd party OTT services? Individual data monetization?
> Object control may be leveraged to provide new services, but is not always necessary
> The stakes are growing around personal data

8. Paradigm shift : From Silos to Interconnected Silos
8
Silos Interconnected
Source: EMC

9. Take-away: Co-opetition with verticals
9
1. Some verticals will resist the trend and will keep developing into silos,
but may develop slowly, unless large savings expected from automation
2. Servicization will help to lower the costs of objects. This will remain a
moderate source of revenues. Partnerships could improve the uptake, as
many verticals are not used to manage a customer.
3. Data has more value when crossed/combined with other data.
Difficult to make significant revenues without Internet players, especially
on consumer markets. Beware, Internet giants may find/have a way to
capture anyway the vertical data.
Open?
Tracking?
Targeting?