This document provides an overview of the Internet of Things (IoT) and how AT&T is helping businesses leverage IoT solutions. Some key points:
- By 2020, an estimated 50 billion devices will be connected to the Internet, including sensors in cars, appliances, and more. IoT is expected to nearly triple to a $1.7 trillion global market.
- AT&T has connected over 25 million devices to its network and added 1.6 million connected devices in one quarter in 2015. It experienced a 250% increase in IoT data usage from customers in the last 24 months.
- IoT can help businesses gain efficiencies, reduce costs, generate new revenue streams, and improve
5. Whatyouneedto
knowaboutthe
InternetofThings
• IDC predicts the global market for
the Internet of Things will nearly triple
reaching $1.7 Trillion by 2020.3
• An estimated 50 Billion “things”
ranging from sensors in cars and
traffic lights to utility meters and
household appliances will be sharing
data over the Internet by 2020.4
• As the leader in North America for
the Internet of Things, we have
connected more than 25 million
devices to our network and continue
to grow.
• In Q3 of 2015, we added a record 1.6
million connected devices in a single
business quarter.
• And in just the last 24 months, AT&T
has experienced a 250% increase in
data usage from our IoT customers.
Greaterefficiency,newrevenue,loweroperatingcosts,and
increasedcustomersatisfactionallcontributetothereasons
theInternetofThingsishighonthelistofmanybusinessleaders.
Weknowbusinessesareseriousabout
theInternetofThings:
TheInternetofThingsismoving
fromconcepttorealityfast.Business
leadersarecreatingmomentumin
manyindustries,including:
• In automotive, Machina Research
estimates the number of IoT connections
to grow from 125 million in 2014 to
approximately 1.2 Billion in 2024,
representing a CAGR of 23%.5
• In transportation, Berg Insight forecasts a
15.3% growth of active fleet management
systems by 2019.6
• In Smart Cities, Frost & Sullivan research
shows that between 2011 and 2014,
approximately 37 million smart meters
were shipped in the United States and
approximately 5 million in Canada.7
Youwantthebottom-lineresults,profitability,
andcostreductionsthatIoTcanproduce.
Youknowyourindustry,businessandcustomers,
andwhichconnectionscandrivemaximum
value.Buthowdoyouturnyourvisionsofa
connectedfutureintoareality?
Thebestwaytohelpourcustomerstransform
theirbusinesseswithIoTistoprovidethe
servicesandplatformsthatcovertheentire
technologyvaluechainfromdevicesand
connectivitytoplatformsandapplications.
Thisway,yourorganizationhasthetoolsand
resourcestofocusattentiononinnovation
ratherthanfacemanyofthechallengesthatcan
arisefrombuildingIoTsolutionsforthefirsttime.
Executivesummary
Morethan50%
ofdevelopers
activelyworking
onIoTsolutionsare
thinkingglobally.
WhatdoesIoTmean
formybusiness?
Whatisthereturnon
investmentandhowdo
youseeyourcompany
changinginthenext
2to5years?
Howquicklycanyoutest
theorieswhileminimizing
costs?
DoesyourCIOhavethe
rightmixofdeveloper
talenttodesignandbuilda
newsolution?
Areyourplansglobal?
5Questionseverybusiness
shouldaskbeforeyoubuild
yourfirstIoTsolution:
Source:IDC2
85%
of global organizations
are considering or
exploring an IoT strategy
98
8. Drivingthe
connectedcar
revolution
AT&T Drives IoT Innovation
OurgoalwithAT&TDriveistobringtogetherthetopplayersintheindustryto
collaborateandaccelerateinnovationforendusers.Wewanttogiveconnectedcar
driversaccesstoIoTapplicationsthatprovideenhancedincarexperienceswhile
continuingtofocusondriversafety.It’shardtooverstatetheimportanceofthe
safetyfeatures.Theyincludevehicle-to-vehiclecommunicationandvehicle-to-
infrastructureservices.Thiscombinationcreatesanawarenesszonearoundthe
driver’scarthathelpsdriversanticipateandrespondmorerapidly,andappropriately,
topotentiallydangeroussituations.
UsageBased
Insurance
Lease,Rental,
HP&ShareCar
Mangement
Emergency
Call
In-CarVoiceStolenVehicle
Recovery
VehiclePlatform
Vehicle
Navigation
Vehicle
Diagnostics
RoadsideAssist In-Car
Entertainment
&InternetAccess
Connected cars expected
on the AT&T Network by
the end of 2017
Relationships with
the top automakers
in the world 10M+9
1514
9. Theconnected
caropportunity totalM2Mconnectionsinthe
automotivesectorgloballyby2024
1.2billion
User/Buyer Behavior
• Sharing economy
• Digital native expectations
• Car as a service
Source: Machina Research, 2015
Connected
Cars
External Environment
• Demographics
• Regulation
• Urbanization/traffic congestion
• CO2 constraints
ICT Industry Dynamics
• Telecom market saturation
and declining ARPU
• M2M connectivity
• Big data
• OS player strategies
Auto Industry Dynamics
• Competition and new entrants
• Slowing growth
• Demand for new
revenue opportunities
MachinaResearchestimatesthatatthe
endof2014therewereapproximately
125millionMachinetoMachine
connectionsintheautomotivesector
globally.By2024thiswillhavegrownto
1.2billion,representingaCAGRof23%9
Theabilitytoaddconnectedservices
givestheautomotiveOEMshope
thattheycancreateinnovativedriver-
orientedservicesthatwillbringinnew
revenuestreams,reachoutdirectlyto
theendcustomersoastodeepenthe
relationship,winvaluableafter-sales
servicebusiness,anddifferentiatetheir
carsfromthoseoftheircompetitors.
Formobilenetworkoperators,M2Misa
newandlargelyuntappedmarket,and
theautomotiveindustryisconveniently
structuredasaB2Bopportunitywithasmall
numberofverylargecustomers.Thearrival
ofBigData,theCloud,4Ganddedicated
M2Mprovisioningplatformsmeansthatthe
telecomindustryhassomenewtoolsto
offertheautomotivesector.
Thelastfewyearshavemarkeda
sea-changeduetoonekeyfactor:the
adventofincreasinglyubiquitousaccess
tobroadbandnetworks.Thisallowsthe
intelligencetoresideonthenetworkrather
thanonthedeviceitself.Thenextfive
yearsmayheraldtheshiftfromoffline
toonlineintelligence.
MachinaResearchwillbewatchingthis
dynamicwithsomeinterestoverthe
nextfewyears.If,asexpected,theshift
takestheformoflessintelligenceonthe
deviceandgreaterconnectivity,itwillbe
manifestedinM2Masmuchasinanyother
connecteddevices.Theimplicationsand
timingofthisshiftforM2Mtrafficand
revenueisquitesubstantial.
Thenextgenerationofcarpurchasers
simplywon’tacceptun-connectedcars.It
willseemnaturaltobeabletoaccessweb
applicationsandcontentfromthedriver’s
seat,albeitinwaysthatareappropriateto
anin-carcontext.
Inthenearfuture,theideathatin-car
usersshouldonlyhaveaccesstomedia
contentthattheyphysicallybroughtwith
themintothevehicle,orbroadcastmedia
nottargetedtotheirspecificpreferences,
willseemquaint.
Increasingly,driverswillsimply
expectcars–likemostotherthings
thattheyownoruse–tobeconnected
totheinternet.
Factorsdrivingtheadventoftheconnectedcar
Source:MachinaResearch,2015
Factorsdrivingtheadventoftheconnectedcar
Source:MachinaResearch,2015
1716