The Internet of things isn't just here, it's inevitable and it's going to re-architect the internet as a result. It's time to drop our obsession with analytics and focus on value creation.

1. IoT, Analytics & Decentralization:
Rethinking The Basics
Paul Brody
November 2016

2. Page
The era of IoT isn’t just upon us, it’s inevitable. And it’s
going to completely change the internet.

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We can get upwards of half a terabyte of data
from a single flight from all of the different
devices which are internet connected.
Virgin Atlantic on aircraft data output: http://www.computerworlduk.com/news/data/boeing-787s-create-half-terabyte-of-data-per-flight-says-virgin-atlantic-3433595/
We’ve become besotted with analytics and advertising as if
that’s the world’s most important business

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Connected cars will send 25 gigabytes of data
to the cloud every hour
Connected cars generating data for the cloud: http://qz.com/344466/connected-cars-will-send-25-gigabytes-of-data-to-the-cloud-every-hour/
We’ve become besotted with analytics and advertising as if
that’s the world’s most important business

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So what?
We’ve become besotted with analytics and advertising as if
that’s the world’s most important business

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Never forget the unique economics of information.
6
The cost to reproduce
information is zero.
Unless you have a
monopoly on the analytics
in question (and there are
no reasonable
substitutes), you operate
in a market with infinite
supply and finite demand.
The market clearing
price in those situations
is zero.

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Large data stores are shifting from strategic asset to
security liability.
7
0 40 80 120 160
Adobe 2013
eBay 2014
Heartland 2009
TJ Maxx 2007
AOL 2005
PSN 2011
US Military 2009
Target 2014
Evernote 2013
Ashley Madison 2015
Major Security Breaches, Users, Millions
Source: "Chart of the Day," Statista: The Statistics Portal, https://d28wbuch0jlv7v.cloudfront.net/images/infografik/normal/chartoftheday_2540_data_breaches_n.jpg, accessed February 10, 2016
Breaches Are Evolving
Credit Cards
Personal Data
Corporate Information

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Never lose sight of the product value proposition.
8 Image from Wikimedia, creative commons license.
Features of a new $1,700 “Smart”
Washing Machine:
•Start, stop, and check status remotely
•Notification when laundry cycle is complete
•Assign tasks to other family members
•Remind you to do the washing
Key missing feature: does not actually do
better laundry.

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Our customers own their data. End of story.
William Ruh, CEO, GE Digital
Strategic thinkers are already looking past simple analytics-
based strategies.

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What’s all this data-frenzy good for? The Internet of Things
needs to become the Economy of Things
10
Instrument Optimize Monetize
Sensor
networks
Asset
Management
Asset
Markets

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Every asset and resource is likely to participate in multiple
digital marketplaces
11
Rental / Leasing
Insurance
Utilities
Sensor Data

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Companies aren’t just pursuing the wrong business model,
they’re pursuing the wrong technology architecture
• Extremely resilient, secure computing
architecture without depending on a single,
centralized source of truth
• Guaranteed replication of data & code to a
large number of participants using
cryptography and hashing
• Tamper-resistant database with
exceptionally strong audit trail
• Secure, consistent code execution across
platforms & devices
Trust & Security Are Scarce Processing Power Is Abundant
6
890
2,222
1
10
100
1,000
10,000
AWS Servers PCs SmartPhones
Global Installed Base of Computing
Devices Millions of Units in 2015

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Blockchains are a true revolution in computing. And just
what we need, right when we need it.
Secure
Efficient
Open
Commercial
Resilient and reliable.
Using the resources already there.
Open source, transparent.
Designed for commerce.

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A new era of computing is dawning, and it will affect every
technology company out there.
Modern Era
Expensive
Computing
Post-Modern Era
Free Computing
High Trust
Environment
Centralized
Internet
Low Trust
Environment
Distributed
Internet

15. @pbrody
linkedin.com/in/pbrody
Paul Brody
February 2016