"IoT network matters", keynote presentation at the Arrow Global Village IoT Summit, Vantaa (Finland), May 2016

1. 1 © Nokia 20161 © Nokia 2016
IoT network matters
Marc Jadoul ( @mjadoul)
Arrow Global Village IoT Summit
Vantaa, 19 May 2016
1 © Nokia 2016

2. 2 © Nokia 2016
“Suppose every instrument could by
command or anticipation of need,
execute its function on its own;
suppose that spindles could weave of
their own accord and plectras strike
the strings of zithers by themselves;
then craftsmen would have no
need of hand-work and masters
have no need of slaves.”
Aristotle – circa 350 BC
Bringing the programmable world to life

3. 3 © Nokia 2016
Micro-electronics evolution has enabled the IoT (r)evolution
Source: Goldman Sachs & BI Intelligence, 2015
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
2004 2006 2008 2010 2012 2014 2016E 2018E 2020E
Moore’s Law (1965)
The number of transistors
in a dense integrated circuit
doubles approximately
every two years
Average sensor cost forecast
performance increase/price drop over the next 5 years8X

4. 4 © Nokia 2016
But value will eventually come through networks
Source: BI Intelligence, 2015
0
5
10
15
20
25
2011 2012 2013 2014 2015E 2016E 2017E 2018E 2019E
Metcalfe’s Law (1993)
The value of a network is
proportional to the square
of the number of its nodes
(while the cost follows a
more or less linear function)
Number of installed IoT devices
billions
the value of
the internet
by 20207.5X

5. 5 © Nokia 2016
net·work
1. a system of computers, peripherals,
terminals, and databases connected
by communications lines
2. a group of people or organizations
that are closely connected and that
work with each other
ˈnetˌwərk

6. 6 © Nokia 2016
The IoT provides an unprecedented opportunity for hardware,
software and services players in IT, electronics and telecoms
a 400 billion Euro
market by 2025
Source: Machina Research and Nokia Strategy, 2015
Modules
Infrastructure
Platforms
Applications, analytics & end-user services

7. 7 © Nokia 2016
Which IoT applications? Do you remember the ‘long tail’ model
for video content and services?
Devices/Application
TBD, may come from the Apples or Googles of this world
A broad range of gadgets & apps,
likely with few short-term
monetization opportunities
Devices, applications and services that provide
monetizable value to people, verticals and enterprises.
Number of
applications

8. 8 © Nokia 2016
The IoT has a transformational impact on (almost) all sectors
Digital
Health
IT
Public
Safety
Mobility
Smart
Homes
Retail
Services
Industries Smart
Cities
Utilities
Patient care Smart stores
Smart
Infrastructure,
facilities
€

9. 9 © Nokia 2016
21% of companies have an IoT project underway; 50% of all
enterprises have already jumped in or are in planning phases
Source: Machina Research, December 2015
vs.Adopters Non-adopters
Which department is leading the IoT charge?
Product
Management
Information
Technology
€

10. 10 © Nokia 2016
• Customer focused
• Smarter products, always connected
• Disruptive models, players and ecosystems
• Data, device and/or services driven
• ‘Mechatronics’ and ‘devops’
• Data-driven control and decision making
• Self-measurement and self-management
• Data driven marketing and customer interaction
Because the IoT is fundamentally changing products, business
models, operational processes, and customer/user interaction
Product
innovation
Business
models
Process
automation
Customer
interaction

11. 11 © Nokia 2016
Big data is the ‘new oil’, driving innovation, business value
and customer experience
Sensing
Monitoring
Analytics
Learning
Control

12. 12 © Nokia 2016
Communication networks can make or break the IoT
90%
40% 70%
19%
Within the next 5 years, more than
90% of all IoT data will be hosted
on service provider cloud
platforms.
By 2018, 40% of IoT-created data
will be stored, processed, analyzed,
and acted upon close to, or at the
edge, of the network.
As many as 70 percent of IoT
devices are vulnerable to attacks.
By 2020, there will be a 19% gap in
unmet demand for mobile network
capacity.
Sources: IDC, Nokia Bell labs, HP

13. 13 © Nokia 2016
Some of today’s IoT network and platform challenges
Radio & core
optimization
Device management
Scalable &
SLA-capable
Horizontal plaforms
with vertical apps.
Energy efficiency Latency & MEC1
Privacy & security
Standardization
& interoperability
Domain knowledge & deep, vertical-specific insights
1MEC:MobileEdgeComputing

14. 14 © Nokia 2016
Uplink data
Latency
Activity
Density
Coverage
Mobility
Module cost
Battery life
IoT services are very diverse – not all IoT devices and applications
have the same connectivity requirements
Utilities
Smart
metering
Smart Cities
Surveillance
cameras
Automotive
Diverless
control
Logistics
Asset
tracking

15. 15 © Nokia 2016
IoT LPWA1 technologies increase battery life, widen network
coverage, and simplify modems
NB IoT eMTC EC-GSM
Range
MCL2
<12km
160 dB
< 10km
157 dB
<15km
164 dB
< 10km
156 dB
< 15km
164 dB
<12km
160 dB
Spectrum
Bandwidth
Unlicensed
900MHz
100Hz
Unlicensed
900MHz
<500kHz
Licensed
7-900MHz
200 kHz
shared
Licensed
7-900MHz
shared
Licensed
8-900MHz
shared
Licensed
7-900MHz
shared
Data rate <100bps <10 kbps <200 kbps < 1 Mbps 10kbps < 1 Mbps
Battery life 10+ years
NW impact Large Large
Small to
Moderate
Small Moderate Requires 5G
1 LPWA: Low-power wide-area 2 MCL: Minimum Coupling Loss

16. 16 © Nokia 2016
(Too) many different IoT standards development organizations
and industry alliances are competing with each other
Source: AIOTI WG3, November 2015
Service & app
Connectivity
B2C B2B

17. 17 © Nokia 2016
The IoT business landscape shows an even more complex map
Source:FirsmarkCapital,January2016

18. 18 © Nokia 2016
Unleashing the potential of the IoT through technical and
market validation with a partner ecosystem
Innovation ecosystem Agile prototyping Concept showcase Market trials
refine
Automotive &
transportation
Hospitality
Health &
wellness
Media &
entertainment
Service
providers
Tech
industry
Consumer
elect(ronics
Education
Public
sector
Retail &
e-
commerce
Ideate
Prototype
Test
Business
models
Prototypes
Execution
partners

19. 19 © Nokia 2016
Nokia is investing in the IoT, 5G and security
Nokia raises USD 350 mln
investment fund for IoT
companies
Nokia buys Withings for $191 mln Nokia acquires
security
software
vendor Nakina
Systems
Nokia joins the Z-Wave Alliance, integrates Z-Wave IoT standard into
smart home offerings
Nokia
showcases
5G-powered
IoT at
Brooklyn 5G
Summit

20. 20 © Nokia 2016
Our ng Connect IoT community spans a wide range of
industries and markets, and includes innovators in all domains*
* 250+ ng Connect members; 40+ IoT Community members at launch

21. 21 © Nokia 2016
Our IoT portfolio from a helicopter view
CPE and
devices
Infrastructure
Platform
Applications
IMPACT platform
• Application enablement (AEP)
• Device management (CDP)
• Connectivity management (CMP)
• Data collection & analytics
Cellular radio: NB-IoT, eMTC, EC-GSM
Unlicensed spectrum: LoRa, Wi-Fi, BTLE
Optimized IoT core, leveraging SDN/NFV
Mobile Edge Computing, Backhaul & FTTx
Home & enterprise gateway
Withings digital health products
IoT Community ecosystem (ng Connect)
Applications for selected use cases
Security
Services

22. 22 © Nokia 2016
Expanding the human possibilities of technoloy while
transforming people's lives
Fatalities each
year worldwide by
not following
doctor’s
prescriptions
Additional
economic benefits
by leveraging
Smart City
applications
Of the 355 billion
gallons of water
used in the US
daily are wasted
due to leakages
Estimated energy
waste in US
buildings due to
inefficient and
outdated HVAC
systems
20% 1 mio
50% 50 bio €
Of fatalities in car
accidents are due
to human error
and slow reaction
Mobile glucose
monitoring tools
can cut diabetes
management
costs by
90%
50%

23. 23 © Nokia 2016
We invite you to join us on this transformative journey
www.iotcommunity.com

24. 24 © Nokia 2016