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The Internet of Things:
     Signal, Noise,
  & Business Models
      Dalton Caldwell
   Founder/CEO App.net
Good news!

•   The “The Internet of Things”-era has begun
•   Polished, useful IoT products released daily
•   Amount of information sensed/stored by
    IoT will increase exponentially
(Some) bad news.

•       IoT is going to make things a lot “noisier”
•       Making sense of the noise is harder than
        building the machines which create it
•       Think your email inbox and social feeds are
        overwhelming? Just wait.
    •     ie how much data will Google Glasses generate?
What can be learn from
running a server farm?
•   Event notifications must follow Goldilocks
    principle: all the way on or off is bad
•   What do you do with 10TB of logfiles?
•   How manageable are SMS/Email alerts
    from: 1 server? 10 servers? 100 servers? 1000
    servers?
Noise management on
        the social web
•       Think about services that auto-tweet or post
        Open Graph actions
    •     Watching a video, reading an article, listening to a
          song... these actions generate noise
•       How are consumers supposed to manage this?
    •     On an unfiltered stream: unfollow the person, or ask
          them to stop posting so much “spam”
    •     On a filtered stream: let the algorithm do the work for
          you, also you can give the algorithm hints
Filtered Streams vs
          Unfiltered Streams
•       Consuming an unfiltered stream is increasingly
        difficult... human limits on information consumption
•       Algorithmically filtered streams make arbitrarily
        large amounts of input data feel manageable
•       FB newsfeed: a great filtered stream implementation
    •     Surfaces important events
    •     Eliminates redundancy
    •     Optimizes on time and engagement metrics
How will people manage
  their personal IoT?
•       Raw IoT data is specialized, but event/alert
        notifications will likely utilize:
    •     Email, SMS or Social streams
•       A stream is especially useful because it
        allows sophisticated noise filtering
Some business model
       challenges...
•       If you are an advertising-supported stream
        company, you there is a good chance you:
    •     Don’t want 3rd-party UIs displaying the stream
    •     Don’t want 3rd-party filtering algorithms
    •     Don’t want your “content” leaking out
    •     Don’t want to host home automation-type data(?)
    •     Optimize for user engagement on your stream, not
          utility. Those are not the same thing.
What if we ignored those
 business model limits?
•       Unbundle the stream.
    •     Pluggable APIs which write to unified stream
    •     Pluggable filters of unified stream
    •     Pluggable UIs + methods of stream consumption
•       Ownership/exportability of all data
Examples of existing
    unbundled services
•   Unbundled read/write APIs? IFTTT
•   Unbundled UIs? 3rd-party Twitter clients
•   Unbundled stream filters? Flipboard
•   (Worth noting these examples have all
    faced recent “platform risk” setbacks)
App.net:
    Built to be unbundled
•   Pluggable APIs? Nearly 100 apps in the
    directory, dozens of available libraries/
    programming languages
•   Pluggable filters? 3rd party notification
    frameworks and threshold filters.
•   Pluggable UIs? ~90% of usage already occurs in
    3rd party UI, exactly as intended
•   Users own data. Data export since day 1.
App.net private
          messages API
•   Person will be able to use their account to
    create a private, unbundled stream
•   A single paid account can be written to from
    any number of endpoints, including IoT
•   The stream can be filtered/consumed in any
    way 3rd party devs can dream up
•   App.net’s paid, “services” business model
    supports this kind of use-case
Wrapping up...

•   Digital information is already overwhelming, but
    IoT will make this far problem far worse
•   Making data useful: more important than collection
•   Existing unified streams have business models
    which discourage unbundling of filter components
•   “Unbundling the stream” allows focused innovation
    in UIs, filters, and notification frameworks

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Le Web 2012 presentation - Dalton Caldwell

  • 1. The Internet of Things: Signal, Noise, & Business Models Dalton Caldwell Founder/CEO App.net
  • 2. Good news! • The “The Internet of Things”-era has begun • Polished, useful IoT products released daily • Amount of information sensed/stored by IoT will increase exponentially
  • 3. (Some) bad news. • IoT is going to make things a lot “noisier” • Making sense of the noise is harder than building the machines which create it • Think your email inbox and social feeds are overwhelming? Just wait. • ie how much data will Google Glasses generate?
  • 4. What can be learn from running a server farm? • Event notifications must follow Goldilocks principle: all the way on or off is bad • What do you do with 10TB of logfiles? • How manageable are SMS/Email alerts from: 1 server? 10 servers? 100 servers? 1000 servers?
  • 5. Noise management on the social web • Think about services that auto-tweet or post Open Graph actions • Watching a video, reading an article, listening to a song... these actions generate noise • How are consumers supposed to manage this? • On an unfiltered stream: unfollow the person, or ask them to stop posting so much “spam” • On a filtered stream: let the algorithm do the work for you, also you can give the algorithm hints
  • 6. Filtered Streams vs Unfiltered Streams • Consuming an unfiltered stream is increasingly difficult... human limits on information consumption • Algorithmically filtered streams make arbitrarily large amounts of input data feel manageable • FB newsfeed: a great filtered stream implementation • Surfaces important events • Eliminates redundancy • Optimizes on time and engagement metrics
  • 7. How will people manage their personal IoT? • Raw IoT data is specialized, but event/alert notifications will likely utilize: • Email, SMS or Social streams • A stream is especially useful because it allows sophisticated noise filtering
  • 8. Some business model challenges... • If you are an advertising-supported stream company, you there is a good chance you: • Don’t want 3rd-party UIs displaying the stream • Don’t want 3rd-party filtering algorithms • Don’t want your “content” leaking out • Don’t want to host home automation-type data(?) • Optimize for user engagement on your stream, not utility. Those are not the same thing.
  • 9. What if we ignored those business model limits? • Unbundle the stream. • Pluggable APIs which write to unified stream • Pluggable filters of unified stream • Pluggable UIs + methods of stream consumption • Ownership/exportability of all data
  • 10. Examples of existing unbundled services • Unbundled read/write APIs? IFTTT • Unbundled UIs? 3rd-party Twitter clients • Unbundled stream filters? Flipboard • (Worth noting these examples have all faced recent “platform risk” setbacks)
  • 11. App.net: Built to be unbundled • Pluggable APIs? Nearly 100 apps in the directory, dozens of available libraries/ programming languages • Pluggable filters? 3rd party notification frameworks and threshold filters. • Pluggable UIs? ~90% of usage already occurs in 3rd party UI, exactly as intended • Users own data. Data export since day 1.
  • 12. App.net private messages API • Person will be able to use their account to create a private, unbundled stream • A single paid account can be written to from any number of endpoints, including IoT • The stream can be filtered/consumed in any way 3rd party devs can dream up • App.net’s paid, “services” business model supports this kind of use-case
  • 13. Wrapping up... • Digital information is already overwhelming, but IoT will make this far problem far worse • Making data useful: more important than collection • Existing unified streams have business models which discourage unbundling of filter components • “Unbundling the stream” allows focused innovation in UIs, filters, and notification frameworks