LPWAN suddenly needed for IoT

January 11, 2016

fire-alarm-detectorThe need for a narrowband wide area network devoted to IoT was obvious but it is only recently it has become obvious for many. We need them to connect cats, bikes, fire detectors and things like that. We only need to send heart beats, position and events but the devices often need to be tiny, with low cost and most importantly very very power efficient. The connectivity to connect a pet can’t be more than maybe 5-10$/year. Many have developed such network solutions but until Sigfox came up with an operator model and a global ambition, nothings was there to attract developers.

Now these networks have got a category name: LPWAN – Low Power Wide Area Networks – and numerous articles and reports explain, compare and calculate business opportunities. As always within IoT the numbers are huge. While Sigfox is a proprietary network with base stations from Sigfox but modules and tools from a range of vendors, LoRa is a more orchestrated approach. A couple of mobile operators including Orange, Bouygue and KPN have declared publicly that they plan to build LoRa networks and I know several others looking into LoRa and other LPWAN network options. Sigfox has networks deployed in several countries including France, Holland, Spain and UK.

Also 3GPP have been working hard to come up with a standard for narrow band IoT data – NB IoT – which is expected to be published as part of 3GPP’s Release 13 in early 2016. The first networks are supposed to be deployed late 2016. Orange recently said that they will trial NB IoT technology alongside their launch preparation of a LoRa network. Also 5G seems to include a LPWAN solution, LTE-M.

LPWAN has quite rapidly gone from “not needed” to an obvious part of the communication mix for IoT. Now Telefonica and SK have invested in Sigfox, others look into deploying Sigfox,  LoRa and the 3GPP NB IoT. This reminds me of Wi-Fi which was “not needed now when we get 3G” and now Wireless Broadband Alliance, started some 10 years ago by a couple of mobile operators, gather some 600 delegates for their Wi-Fi Global Congress events.

The development of several LPWAN solutions is a sign of a grown up IoT industry. But let’s remember that building the infrastructure is only the beginning – getting it used big way is the real challenge. LPWAN is a low cost high volume business and the winning technology will be the one who gets the developers excited.

I’m looking forward to seeing how the different camps will address the IoT developers and will do my best to ensure that the Swedish IoT developers will get well served and successful also in the LPWAN space. LPWAN will be a focus area 2016 both for my alliance of 48 Swedish IoT start-ups – SMSE – and our hardware hub in Stockholm – THINGS.


Hype or not? Both!

October 16, 2014

Gartner_Hype_Cycle.svgIoT is hotter than ever! Gartner just placed IoT at Peak of Inflated Expectations in their Hype Curve and forecast 5-10 years until the Plateau of Productivity. But our baby is growing much faster than anything else we have seen before and I stick to my previous view that our baby will be grown up, but still young, 2016 after only three years as teenager. Good enough technology and infrastructure are in place since a couple of years and when organizations started to go from Powerpoint and thinking to trials and pilots we reached the teens. Four things have been missing to leave the teens behind: solid participation from the IT players, a hot M&A market, active and seriously engaged enterprises and efficient easy-to-use prototyping tools for users of IoT. All these things are starting to happen now which is one of the reasons why I dare to challenge Gartner on their projection. But there is another aspect of IoT which is underestimated: how the value is created.

In most cases we build something and when it’s done we start harvest. And if customers like what we built it takes off. It might take a couple of years at least  to plan, develop and start produce, then we start market and after another year or so it might take off. That explains Gartner’s 5-10 years to Plateau of Productivity, if one ever gets there. But IoT applications deliver value when the information created is distributed to an IT system, shows up in an app, makes an alarm go off somewhere or change a road sign. Initially all IoT applications had to be created end to end – from sensor to terminal – which made them expensive to make and maintain. But now we can leverage existing networks, platforms, tools, terminals and applications making it much cheaper and quicker. So far we have seen this primarily in the consumer market where a connected sensor providing data to an app has been good enough. In enterprises data management and delivery is more complicated and changes in processes and business models takes time, but they are getting there. When they do, the operational value (cheaper, faster, etc) will be obvious and the strategic value (brand, innovation, employer attractiveness, etc) will be visible in the horizon. One only has to look at what GE is doing with Industrial Internet to understand that the impact will be massive.

Everyone promoting the story about billions of connected devices delivering data to impressive Big Data systems creating trillions of $ benefits clearly put IoT at the peak of inflated expectations. But all hard-working organizations and entrepreneurs working on industry or company specific IoT applications, well-integrated and cleverly implemented, are changing the world very fast. These efforts will start pay off soon putting competitors who haven’t started yet in a very difficult situation similar to when the frequent flyer program happened or Richard Fosbury jumped 2.24 at the Olympic Games in Maxico City 1968  using a “redicolous” new technique.

The only major difference between when we connected people and businesses to the Internet and when we connect things is that ignorance will not be an acceptable excuse this time. Beyond some clever start-ups the winners will be organizations who best understand when and how to improve their business using IoT solutions.


Axeda acquisition makes PTC an IOE power house

July 26, 2014
axedaThe creation of the Internet of Everything has been going on for a while now. It is easy to find estimates of the number of connected devices some years from now and how much the market will be worth but still hard to find the evidences that it actually happens and in which pace. A year ago I declared that we entered the teenage phase meaning that early moving customer started to go from power point and  plans to pilot trials and roll-out. I still believe we are in the teenage phase but another important indicator – mergers and acquisitions – is starting to show that we are coming closer to the real take off. Because of this I will try to track relevant M&A deals in my blog onwards.
Intel recently acquired Basis Science with their advanced health tracker, Google has spent about $5B acquiring Waze, Nest and Dropcam but PTC’s recent acquisition of Axeda for $170 million in cash following their $112 million Thingworx acquisition in December are even more interesting to me. PTC provides systems and solutions to a long list of very large companies globally and they obviously believe being a leader in IoT system and service enablement is key. I believe the Internet of Everything will be grown-up in less than two years from now and insist that the key difference from when people and companies were connected to the Internet is that ignorance will not be an acceptable excuse this time.

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