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The 
Digital 
Revolu/on 
Con/nues: 
The 
Internet 
of 
Everything 
Kate 
Carruthers 
Mauri/us, 
October 
2014
Internet 
– 
web 
1.0 
Source: 
Web 
Focus: 
Ways 
of 
Exploi/ng 
New 
Technologies, 
19 
July 
1998 
hSp://www.ariadne.ac.uk/issue16/web-­‐focus 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
2
Internet 
– 
web 
2.0 
Source: 
Launching 
the 
Web 
2.0 
Framework, 
Ross 
Dawson, 
May 
30, 
2007 
hSp://rossdawsonblog.com/weblog/archives/2007/05/launching_the_w.html 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
3
“Internet 
of 
Things” 
IoT 
“Machine 
to 
Machine” 
M2M 
“Internet 
of 
Everything” 
IoE 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
4
Objects 
are 
becoming 
embedded 
with 
sensors 
and 
gaining 
the 
ability 
to 
operate 
& 
communicate 
independent 
of 
human 
interven/on. 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
5
The 
resul/ng 
informa/on 
networks 
promise 
to 
create 
new 
business 
models 
and 
disrupt 
exis/ng 
business 
models. 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
6
Characteris/cs 
• Distributed 
• Peer 
to 
peer 
• API 
based 
• Network 
neutral 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
7
Connected 
devices 
are 
transformed 
from 
a 
single 
purchase 
product 
into 
a 
service 
that 
generates 
recurring 
income. 
IoT 
value 
is 
not 
in 
the 
devices, 
but 
in 
new 
services 
related 
to 
the 
devices. 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
8
New 
business 
models 
• Open 
models 
• Collabora/on 
& 
loose 
confedera/ons 
• Agile, 
change 
ready 
organisa/ons 
• Restructured 
supply 
chain 
• Mergers 
& 
acquisi/ons 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
9
Ubiquitous 
connec/vity 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
10
Cisco 
says 
US$14 
trillion 
IoE 
value 
1) asset 
u/liza/on 
(reduced 
costs) 
of 
$2.5 
trillion 
2) employee 
produc/vity 
(greater 
labor 
efficiencies) 
of 
$2.5 
trillion 
3) supply 
chain 
and 
logis/cs 
(elimina/ng 
waste) 
of 
$2.7 
trillion 
4) customer 
experience 
(addi/on 
of 
more 
customers) 
of 
$3.7 
trillion 
5) innova/on 
(reducing 
/me 
to 
market) 
of 
$3.0 
trillion 
CISCO 
White 
paper: 
Embracing 
the 
Internet 
of 
Everything 
for 
your 
Share 
of 
$14 
trillion 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
11
Market 
signals 
-­‐ 
2014 
• Google 
bought 
Nest 
for 
US$3.2B 
Jan 
2014 
• Google 
& 
Nest 
bought 
Dropcam 
for 
US$555M 
• Samsung 
bought 
SmartThings 
for 
US$200M 
• Vodafone 
bought 
Cobra 
Automo/ve 
for 
£115M 
• Zebra 
Technologies 
bought 
a 
unit 
of 
Motorola 
for 
US$3.45B 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
12
Market 
signals 
-­‐ 
2014 
• global 
survey 
of 
1400 
sooware 
developers 
• 17.1% 
working 
on 
IoT 
apps 
• 23% 
expect 
to 
begin 
work 
in 
next 
6 
months 
Evans 
Data 
Corpora/on 
Survey 
July 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
13
Driven 
by 
convergence 
• Ubiquitous 
comms 
networks 
• Mobile 
connec/vity 
• 3D 
prin/ng 
• Sensor 
networks 
• Big 
data 
> 
drawing 
useful 
inferences 
• Peer 
to 
peer 
networks 
• Cloud 
compu/ng 
• Ar/ficial 
intelligence 
• Commodity 
sensors 
• Sooware 
defined 
networks 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
14
Fuelled 
by 
app 
ecosystem 
“Between 
2008 
and 
2017, 
Google 
Play 
and 
Apple’s 
App 
Store 
will 
be 
responsible 
for 
a 
mind-­‐blowing 
number 
of 
mobile 
app 
downloads: 
350 
billion.” 
Source: 
hSp://www.mobilemarke/ngwatch.com/the-­‐decade-­‐of-­‐350-­‐billion-­‐app-­‐downloads-­‐26932/ 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
15
Allflex 
DNA 
tags 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
16
Emerging 
Standards 
landscape 
• Industrial 
Internet 
Consor/um 
• AllJoyn 
• WebRTC 
• Z-­‐Wave 
Alliance 
• Zigbee 
Alliance 
• Open 
Interconnect 
Consor/um 
• Thread 
• Internet 
of 
Things 
Consor/um 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
18
Industries 
Financial 
services 
Automo/ve 
Technology 
Entertainment 
Retail 
Healthcare 
Hospitality 
Industrial 
Power 
& 
u/li/es 
Energy 
& 
mining 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
19
Driverless 
trucks 
the 
next 
big 
thing 
in 
WA's 
Pilbara, 
ABC 
25 
Apr 
2014, 
3:13pm 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
20
Source: 
hSp://readwrite.com/2014/04/30/connected-­‐home-­‐hackers-­‐stop-­‐yelling-­‐at-­‐babies-­‐foscam#feed=/tag/internet-­‐of-­‐things&awesm=~oEe6yipkTkz40o 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
21 
Last 
August, 
a 
hacker 
infiltrated 
a 
wireless 
camera 
owned 
by 
the 
Gilbert 
family, 
living 
in 
Houston, 
Texas. 
The 
stranger 
took 
control 
of 
the 
unit 
and 
used 
it 
to 
scream 
obsceni/es 
at 
a 
two-­‐year-­‐old 
toddler. 
Fortunately, 
the 
hearing-­‐impaired 
child 
didn’t 
have 
her 
cochlear 
implant 
turned 
on 
at 
the 
/me, 
otherwise 
she 
would 
have 
heard 
the 
stranger 
yelling, 
“Wake 
up 
Allyson, 
you 
liSle 
slut!”
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
22
Bloomberg, 
Data 
Breaches 
in 
the 
US, 
at 
4 
Sep 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
23
• 3rd 
party 
HVAC 
firm 
aSack 
vector 
• Security 
sooware 
disabled 
• PCI 
DSS 
didn’t 
save 
them 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
24
Bloomberg, 
Oct 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
25
JP 
Morgan 
• Sarbanes-­‐Oxley 
Act 
(SOX) 
• Payment 
Card 
Industry 
Data 
Security 
Standard 
(PCI 
DSS) 
• Gramm-­‐Leach-­‐Bliley 
Act 
(GLB) 
Act 
• Electronic 
Fund 
Transfer 
Act, 
Regula/on 
E 
(EFTA) 
• Free 
and 
Secure 
Trade 
Program 
(FAST) 
• Fair 
and 
Accurate 
Credit 
Transac/on 
Act 
(FACTA), 
including 
Red 
Flags 
Rule 
• Federal 
Rules 
of 
Civil 
Procedure 
(FRCP) 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
26
Tradi/onal 
approach 
to 
perimeter 
security 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
27
Bot-­‐herders 
can 
launch 
DDoS 
aAacks 
from 
dryers, 
refrigerators, 
other 
Internet 
of 
Things 
devices 
Network 
World 
Sep 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
28
Proofpoint 
Uncovers 
Internet 
of 
Th 
i|n 
kgatse 
c(aIroruTth)e 
Crsy.cbome 
raSack, 
January 
16, 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
29 
“The 
global 
aSack 
campaign 
involved 
more 
than 
750,000 
malicious 
email 
communica/ons 
coming 
from 
more 
than 
100,000 
everyday 
consumer 
gadgets 
…”
“… 
such 
as 
home-­‐ 
networking 
routers, 
connected 
mul/-­‐media 
centers, 
televisions 
and 
at 
least 
one 
refrigerator” 
Proofpoint 
Uncovers 
Internet 
of 
Th 
i|n 
kgatse 
c(aIroruTth)e 
Crsy.cbome 
raSack, 
January 
16, 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
30
It’s 
“ooen 
impossible 
to 
patch 
the 
sooware 
or 
upgrade 
the 
components 
to 
the 
latest 
version.” 
Bruce 
Schneier, 
The 
Internet 
of 
Things 
Is 
Wildly 
Insecure 
-­‐ 
And 
Ooen 
Unpatchable, 
Wired, 
Jan 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
31
“Ooen, 
the 
complete 
source 
code 
isn’t 
available. 
Yes, 
they’ll 
have 
the 
source 
code 
to 
Linux 
and 
any 
other 
open-­‐source 
components.” 
Bruce 
Schneier, 
The 
Internet 
of 
Things 
Is 
Wildly 
Insecure 
-­‐ 
And 
Ooen 
Unpatchable, 
Wired, 
Jan 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
32
“But 
many 
of 
the 
device 
drivers 
and 
other 
components 
are 
just 
‘binary 
blobs’ 
-­‐ 
no 
source 
code 
at 
all.” 
Bruce 
Schneier, 
The 
Internet 
of 
Things 
Is 
Wildly 
Insecure 
-­‐ 
And 
Ooen 
Unpatchable, 
Wired, 
Jan 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
33
“That’s 
the 
most 
pernicious 
part 
of 
the 
problem: 
No 
one 
can 
possibly 
patch 
code 
that’s 
just 
binary.” 
Bruce 
Schneier, 
The 
Internet 
of 
Things 
Is 
Wildly 
Insecure 
-­‐ 
And 
Ooen 
Unpatchable, 
Wired, 
Jan 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
34
Consumer 
privacy 
• Pervasive 
compu/ng 
• Personalisa/on 
• Customisa/on 
• Convenience 
• Lack 
of 
understanding 
• Meaningful 
consent 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
35
Time, 
Sep 
2014 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
36
“We 
tend 
to 
overesGmate 
the 
effect 
of 
a 
technology 
in 
the 
short 
run 
and 
underesGmate 
the 
effect 
in 
the 
long 
run.”-­‐ 
Amara's 
law 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
37
Kate 
Carruthers 
UNSW 
Australia 
Sydney 
katec@unsw.edu.au 
TwiSer 
@kcarruthers 
Oct 
2014 
© 
Kate 
Carruthers 
| 
katecarruthers.com 
38

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The Internet of Things - 36th International Conference of Privacy and Data Commissioners

  • 1. The Digital Revolu/on Con/nues: The Internet of Everything Kate Carruthers Mauri/us, October 2014
  • 2. Internet – web 1.0 Source: Web Focus: Ways of Exploi/ng New Technologies, 19 July 1998 hSp://www.ariadne.ac.uk/issue16/web-­‐focus Oct 2014 © Kate Carruthers | katecarruthers.com 2
  • 3. Internet – web 2.0 Source: Launching the Web 2.0 Framework, Ross Dawson, May 30, 2007 hSp://rossdawsonblog.com/weblog/archives/2007/05/launching_the_w.html Oct 2014 © Kate Carruthers | katecarruthers.com 3
  • 4. “Internet of Things” IoT “Machine to Machine” M2M “Internet of Everything” IoE Oct 2014 © Kate Carruthers | katecarruthers.com 4
  • 5. Objects are becoming embedded with sensors and gaining the ability to operate & communicate independent of human interven/on. Oct 2014 © Kate Carruthers | katecarruthers.com 5
  • 6. The resul/ng informa/on networks promise to create new business models and disrupt exis/ng business models. Oct 2014 © Kate Carruthers | katecarruthers.com 6
  • 7. Characteris/cs • Distributed • Peer to peer • API based • Network neutral Oct 2014 © Kate Carruthers | katecarruthers.com 7
  • 8. Connected devices are transformed from a single purchase product into a service that generates recurring income. IoT value is not in the devices, but in new services related to the devices. Oct 2014 © Kate Carruthers | katecarruthers.com 8
  • 9. New business models • Open models • Collabora/on & loose confedera/ons • Agile, change ready organisa/ons • Restructured supply chain • Mergers & acquisi/ons Oct 2014 © Kate Carruthers | katecarruthers.com 9
  • 10. Ubiquitous connec/vity Oct 2014 © Kate Carruthers | katecarruthers.com 10
  • 11. Cisco says US$14 trillion IoE value 1) asset u/liza/on (reduced costs) of $2.5 trillion 2) employee produc/vity (greater labor efficiencies) of $2.5 trillion 3) supply chain and logis/cs (elimina/ng waste) of $2.7 trillion 4) customer experience (addi/on of more customers) of $3.7 trillion 5) innova/on (reducing /me to market) of $3.0 trillion CISCO White paper: Embracing the Internet of Everything for your Share of $14 trillion Oct 2014 © Kate Carruthers | katecarruthers.com 11
  • 12. Market signals -­‐ 2014 • Google bought Nest for US$3.2B Jan 2014 • Google & Nest bought Dropcam for US$555M • Samsung bought SmartThings for US$200M • Vodafone bought Cobra Automo/ve for £115M • Zebra Technologies bought a unit of Motorola for US$3.45B Oct 2014 © Kate Carruthers | katecarruthers.com 12
  • 13. Market signals -­‐ 2014 • global survey of 1400 sooware developers • 17.1% working on IoT apps • 23% expect to begin work in next 6 months Evans Data Corpora/on Survey July 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 13
  • 14. Driven by convergence • Ubiquitous comms networks • Mobile connec/vity • 3D prin/ng • Sensor networks • Big data > drawing useful inferences • Peer to peer networks • Cloud compu/ng • Ar/ficial intelligence • Commodity sensors • Sooware defined networks Oct 2014 © Kate Carruthers | katecarruthers.com 14
  • 15. Fuelled by app ecosystem “Between 2008 and 2017, Google Play and Apple’s App Store will be responsible for a mind-­‐blowing number of mobile app downloads: 350 billion.” Source: hSp://www.mobilemarke/ngwatch.com/the-­‐decade-­‐of-­‐350-­‐billion-­‐app-­‐downloads-­‐26932/ Oct 2014 © Kate Carruthers | katecarruthers.com 15
  • 16. Allflex DNA tags Oct 2014 © Kate Carruthers | katecarruthers.com 16
  • 17.
  • 18. Emerging Standards landscape • Industrial Internet Consor/um • AllJoyn • WebRTC • Z-­‐Wave Alliance • Zigbee Alliance • Open Interconnect Consor/um • Thread • Internet of Things Consor/um Oct 2014 © Kate Carruthers | katecarruthers.com 18
  • 19. Industries Financial services Automo/ve Technology Entertainment Retail Healthcare Hospitality Industrial Power & u/li/es Energy & mining Oct 2014 © Kate Carruthers | katecarruthers.com 19
  • 20. Driverless trucks the next big thing in WA's Pilbara, ABC 25 Apr 2014, 3:13pm Oct 2014 © Kate Carruthers | katecarruthers.com 20
  • 21. Source: hSp://readwrite.com/2014/04/30/connected-­‐home-­‐hackers-­‐stop-­‐yelling-­‐at-­‐babies-­‐foscam#feed=/tag/internet-­‐of-­‐things&awesm=~oEe6yipkTkz40o Oct 2014 © Kate Carruthers | katecarruthers.com 21 Last August, a hacker infiltrated a wireless camera owned by the Gilbert family, living in Houston, Texas. The stranger took control of the unit and used it to scream obsceni/es at a two-­‐year-­‐old toddler. Fortunately, the hearing-­‐impaired child didn’t have her cochlear implant turned on at the /me, otherwise she would have heard the stranger yelling, “Wake up Allyson, you liSle slut!”
  • 22. Oct 2014 © Kate Carruthers | katecarruthers.com 22
  • 23. Bloomberg, Data Breaches in the US, at 4 Sep 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 23
  • 24. • 3rd party HVAC firm aSack vector • Security sooware disabled • PCI DSS didn’t save them Oct 2014 © Kate Carruthers | katecarruthers.com 24
  • 25. Bloomberg, Oct 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 25
  • 26. JP Morgan • Sarbanes-­‐Oxley Act (SOX) • Payment Card Industry Data Security Standard (PCI DSS) • Gramm-­‐Leach-­‐Bliley Act (GLB) Act • Electronic Fund Transfer Act, Regula/on E (EFTA) • Free and Secure Trade Program (FAST) • Fair and Accurate Credit Transac/on Act (FACTA), including Red Flags Rule • Federal Rules of Civil Procedure (FRCP) Oct 2014 © Kate Carruthers | katecarruthers.com 26
  • 27. Tradi/onal approach to perimeter security Oct 2014 © Kate Carruthers | katecarruthers.com 27
  • 28. Bot-­‐herders can launch DDoS aAacks from dryers, refrigerators, other Internet of Things devices Network World Sep 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 28
  • 29. Proofpoint Uncovers Internet of Th i|n kgatse c(aIroruTth)e Crsy.cbome raSack, January 16, 2014 Oct 2014 © Kate Carruthers 29 “The global aSack campaign involved more than 750,000 malicious email communica/ons coming from more than 100,000 everyday consumer gadgets …”
  • 30. “… such as home-­‐ networking routers, connected mul/-­‐media centers, televisions and at least one refrigerator” Proofpoint Uncovers Internet of Th i|n kgatse c(aIroruTth)e Crsy.cbome raSack, January 16, 2014 Oct 2014 © Kate Carruthers 30
  • 31. It’s “ooen impossible to patch the sooware or upgrade the components to the latest version.” Bruce Schneier, The Internet of Things Is Wildly Insecure -­‐ And Ooen Unpatchable, Wired, Jan 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 31
  • 32. “Ooen, the complete source code isn’t available. Yes, they’ll have the source code to Linux and any other open-­‐source components.” Bruce Schneier, The Internet of Things Is Wildly Insecure -­‐ And Ooen Unpatchable, Wired, Jan 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 32
  • 33. “But many of the device drivers and other components are just ‘binary blobs’ -­‐ no source code at all.” Bruce Schneier, The Internet of Things Is Wildly Insecure -­‐ And Ooen Unpatchable, Wired, Jan 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 33
  • 34. “That’s the most pernicious part of the problem: No one can possibly patch code that’s just binary.” Bruce Schneier, The Internet of Things Is Wildly Insecure -­‐ And Ooen Unpatchable, Wired, Jan 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 34
  • 35. Consumer privacy • Pervasive compu/ng • Personalisa/on • Customisa/on • Convenience • Lack of understanding • Meaningful consent Oct 2014 © Kate Carruthers | katecarruthers.com 35
  • 36. Time, Sep 2014 Oct 2014 © Kate Carruthers | katecarruthers.com 36
  • 37. “We tend to overesGmate the effect of a technology in the short run and underesGmate the effect in the long run.”-­‐ Amara's law Oct 2014 © Kate Carruthers | katecarruthers.com 37
  • 38. Kate Carruthers UNSW Australia Sydney katec@unsw.edu.au TwiSer @kcarruthers Oct 2014 © Kate Carruthers | katecarruthers.com 38