INTERVIEW CELLULAR, WIFI AND IOT Getting past the future IoT’s history, significance and horizons
IoT, once a buzzword, has now become the spearhead to a new age of digital and networking electronics. As 5G looks to set IoT off on its own path towards innovation, Christian Lynn, editor of Electronics, discusses the timeline of IoT with Sean Riley, senior global industry director at Software AG
Christian Lynn: Why does IoT remain so pertinent in the electronics market, while it continues to blend in with the background of our daily lives? Do you think awareness is being gained or lost in terms of how implemented it has become in our domestic and working environments?
Sean Riley: Firstly, it blends into the background because of the convenience of IoT. It facilitates domestic activities and utilities for example, like the air conditioning that comes on remotely when I enter the house, or a Smart thermostat that recognises how I use heat, accommodating those considerations into its own programming: everyday items that are operating at a higher level of functionality, due to their machine learning capabilities. Even something such as a toilet could introduce a water monitoring system to identify a leak and shut off the supply. This level of convenience also
transcends to commercial applications. Engineers are required to physically collect data from machines that don’t operate with the same Smart infrastructure: with the continued rise of IoT, manual data collection will be nullified due to the analytical nature of Smart tech, meaning that engineers can evaluate the data acquired and implement tools for new improvements to optimise production. All of these operations, from the domestic scale to the production facility, will become increasingly convenient. Currently, there is a high level of awareness about IoT, hype even,
24 SEPTEMBER 2019 | ELECTRONICS
but awareness will grow about the complexities of IoT and how these can drive benefits. IoT was presumed to be simple, prior to serious innovation. But now, it’s more difficult to implement: there is a learning curve that goes with thinking about and optimising IoT technology, such as sensors and most importantly, analytics and actions. There is also a growing awareness around trust. Consumers will become more aware of the lack of privacy given by IoT devices. Returning to the domestic milieu, Roomba robots map people’s houses to programme a path for cleaning: this information is being shared with third parties, as it belongs to the company. So, consumers are now asking, what does a Smart device like a Roomba robot really mean for our privacy? Commercial enterprises will resolve this issue through explicit contracts. But the language in those contracts will be based, in part, on consumer privacy failures.
CL: Smart technology is designed to be more intelligent, as each application is updated. Does Software AG believe there is a limit to what can come under that Smart technology bracket, or will everything become connected? If so, why is this important?
SR: I wouldn’t say that everything will become connected, at least not in the near future. The reason comes from how companies handle competition. Firstly, differentiated value-added companies state how they will make premium products at premium prices: these will be dominant adopters of IoT connectivity.
But there are always low-cost leaders, looking to produce a product cheaply, selling it a low price consistently. This market will continue to exist due to consumer and business choice: quality doesn’t necessarily trump quantity, or in other words, affordability. Using a personal case, a thermostat at a
Sean Riley, senior global industry director, Software AG
rental property failed: I had to replace it for the tenant. At the time, I considered a Nest replacement: automated, Smart. However, the alternative option – a simple, programmable thermostat – was at a much cheaper price. Seeing as I am responsible for my own P&L at this property and the margins are thin, I came to the conclusion that the low-cost option, while not as effective, made more sense to invest in.
CL: With ten years of experience in this field, how has IoT changed for Software AG? The emphasis on analytics is interesting in this regard: do you recognise a point at which this became so important and, if so, why does Software AG believe that analytics should remain such a dominant part of IoT’s developing story?
SR: Over the ten-year time span, IoT has become increasingly important to Software AG. From a niche market that supported auxiliary business lines to a primary business focus for the company, IoT has demonstratively evolved within the market. “How has IoT changed” and “why are analytics so significant” are interlinked in this regard. When IoT first started, it was with electronics such as sensors, integrated within dashboards,
/ ELECTRONICS
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