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Sense, Connect, Learn and Respond The Move to Contextual Intelligence Hassane El-Khoury President & CEO

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Page 1: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Sense, Connect, Learn and RespondThe Move to Contextual Intelligence

Hassane El-Khoury

President & CEO

Page 2: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Sense, Connect, Learn and RespondThe Move to Contextual Intelligence

Hassane El-Khoury

President & CEO

Page 3: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

The PC Era

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Page 4: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

The Mobile Era

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Page 5: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Welcome to the IoT Era

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Page 6: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Welcome to the IoT Era, the Biggest Opportunity Yet

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Smart Home Wearables Industry 4.0Smart Healthcare Automotive

Page 7: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

By 2025, IoT could have $11 trillion impactAnalysts estimate that the number of

connected devices is now 7 to 10 billion,

and expected to increase by 15 to 20%

annually over the next few years, and to

reach up to 30 billion by 2020. This could

help the semiconductor

industry surpass the

average annual revenue

increase of 3 to 4%

from the past decade.

By 2018, the IoT is expected to surpass mobile phones as the largest category of connected devices

Between 2015 and 2021, the

IoT is expected to increase

at CAGR of 23%, making up

close to 16 billion of the

total forecast 28 billion

connected devices in 2021.

The IoT – called by some the next Industrial Revolution –will impact the way all businesses, governments, and consumers interact with the physical world

We forecast there will be 34 billion devices

connected to the internet by 2020, with IoT

devices accounting for 24 billion, and

traditional devices 10 billion. Nearly $6

trillion will be spent on IoT solutions over

the next five years.

Over the next five years, the IoT market is estimated to grow to over $660 Billion, at a CAGR of 33%

The IoT market could nearly triple in the coming years

According to research firm

IDC, as reported by the

Wall Street Journal, the IoT market could nearly

triple in the coming years. In 2014, the global IoT

market was worth $655.8 billion, but it could reach

$1.7 trillion by 2020

The Internet of Things: the next growth engine for the semiconductor industry

Semiconductor content per vehicle is

1.5 to 3 times higher in electric cars and

hybrids than conventional cars. We expect the CAGR

of semiconductor content sales market will reach

20.5% for electric cars and hybrids in period to 2019.

28 billion

30 billion devices

$1.7 trillion

Page 8: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Source: Cisco Visual Networking Index 2016, MCKINSEY GLOBAL INSTITUTE, JUNIPER RESEARCH

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Data Traffic Growing Faster than Nodes

(Exabytes per month, traffic)

Nodes CAGR 20-25%

Data traffic CAGR 49%

60

50

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30

20

10

0

(Billions, shipments)

Page 9: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

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2013 2014 2015 2016 2017 2018 2019 2020

IoT Deployment Drives Growth at the EdgeDemand Increases in Sensing, Processing and Connectivity

Source: Gartner IoT Report, 2016

Shipments (Mu)

ConnectivityCAGR 33%

+ProcessingCAGR 49%

+SensingCAGR 61%

Page 10: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Cloud

Device

IoT

Moving from Connected…

CONNECTED DEVICES

Enable a Connected home

User provides "smart“ and control

Reactive and slow response

Page 11: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

CONNECTED DEVICES

Enable a Connected home

User provides "smart“ and control

Reactive and slow response

IoT

Cloud

Device

IoTInternet

…to Smart…

SMART DEVICES

Localized decisions and alerts

Higher latency

Requires user to enable service, decide action

Thermostat Capabilities Energy efficiency through

predictive models Aware of user locations User customization

Camera Capabilities Facial recognition Can read ID Can interface with home security Can monitor health/safety (e.g. alert

emergency if infirm person has not moved)

Page 12: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

CONNECTED DEVICES

Enable a Connected home

User provides "smart“ and control

Reactive and slow response

IoT

…to Smart…

SMART DEVICES

Localized decisions and alerts

Higher latency

Requires user to enable service, decide action

IoTInternet

Cloud

Device

SMART HOME

Full autonomy

User Independent

User determines policy, devices act independently

IoT

Cloud Support Provides access to environmental data Allows for accelerated & distributed learning Provides the ability to integrate the home with

the wider systems for delivering services

Page 13: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

IoT IoT

Contextual Intelligence

Cloud

Device

SMART HOME

Full autonomy

User Independent

User determines policy,

devices act independently

IoT

IoTInternet

SMART DEVICES

Localized decisions and alerts

Higher latency

Requires user to enable service, decide action

CONNECTED DEVICES

Enable a Connected home

User provides "smart“ and control

Reactive and slow response

Page 14: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market
Page 15: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Sense, Connect, Learn and RespondThe Move to Contextual Intelligence

Hassane El-Khoury

President & CEO

Page 16: Sense, Connect, Learn and Respond...traditional devices 10 billion. Nearly $6 trillion will be spent on IoT solutions over the next five years. Over the next five years, the IoT market

Sense, Connect, Learn and RespondThe Move to Contextual Intelligence

Hassane El-Khoury

President & CEO