10 ms·

GE discovers that industrial IoT doesn't scale

208 points by tdrnd 9y ago

laythea 9y ago
The problem should be the ability to sift through and recognize patterns in the massive amounts of data collected, in a manner that provides value to end users. The problem of data (IO) collection/remote collection is long solved. This is what happens when the focus is wrongly placed on how the data is collected rather than what to do with the data when you have it.
grok2 9y ago
It's not clear from the article what doesn't scale -- is it that businesses stretch themselves too thin or is it that making a platform that encompasses any and every use case is not a viable business model or is it that the software technology itself doesn't scale? Anyone know?
- csours 9y ago
  > making a platform that encompasses any and every use case is not a viable business model That one.
- CharlesW 9y ago
  > It's not clear from the article what doesn't scale… This is the main problem with the article IMO. Many IIoT technologies and platforms will be used across vastly different industries. Others will be industry-specific. As they always have, industry-specific vendors will integrate industry-specific elements with more "scalable" elements to provide complete solutions for specific customers. OTOH, every complete IIoT solution will be bespoke. Sales, marketing, and integration will not be scalable.
  - ethbro 9y ago
    > OTOH, every complete IIoT solution will be bespoke. Sales, marketing, and integration will not be scalable. This is what Palantir learned, and what Oracle semi-avoided in their positioning: Your scalable solution is worthless without last-mile integration, and that integration is always bespoke. Is the IIoT pushing for interface standards, a la SQL? That would seem the main way to scale and extract the kind of revenue they're looking for. Create a standard (and therefore market) for smaller fish to perform the integration, such that it lifts the data up a level and products can be built that operate against diverse sources.
    - warrenm 9y ago
      >Your scalable solution is worthless without last-mile integration, and that integration is always bespoke. Yep. And always has been. Spreadsheets are a great metaphor for this ... or an artist's canvas. They're both capable of amazing things being done on/in them ... but only with the application of custom effort.
    - jessaustin 9y ago
      ISTM that you can't make much money by doing the easy part, unless you do a shitload of volume, at which point you're competing with AWS. Good luck!
- elihu 9y ago
  It sounds like it's trying to say that creating a walled-garden IIoT ecosystem doesn't work, and that IIoT products are so specialized and application specific that success in one part of the market doesn't usually translate into success in different areas of the IIoT market.
- Joeri 9y ago
  The whole point of equipping existing installations with IoT sensors is to do data science that lets you improve on some important metric, but for that you need to have deep domain insight as well as the technical insight to wrangle the data. So the customer knows the domain but lacks the technical resources, and the vendor often doesn't understand the domain. That's why you need to do vertical solutions in this market. (I work on a vertical solution for IoT-driven data science in the facility management sector.)
deleted 9y ago
[deleted]
nickpsecurity 9y ago
Companies such as Green Hills Software and Lynx Software Technology have real-time OS's + middleware that have been used in all kinds of industrial deployments. https://ghs.com/ https://ghs.com/ http://www.lynx.com/ http://www.lynx.com/ Maybe the problem is that General Electric is a mega-corporation instead of a company with tons of experience developing embedded software in many markets. It helps to really understand the domain and what users want when developing solutions. Also, only so much can be re-used. Each embedded project is partly a custom job with the amount of customization depending on the use case.
- convolvatron 9y ago
  i worked on this a bit. its not reasonable to try to generalize anything about this project except the strange behaviors of large organizations.
- jessaustin 9y ago
  Suddenly the odd recruiting TV ads make more sense... http://www.adweek.com/creativity/getting-hired-ge-impresses-absolutely-no-one-companys-amusing-new-ads-166760/ http://www.adweek.com/creativity/getting-hired-ge-impresses-...
spraak 9y ago
> For example, Samsara, a startup that formed in 2015 I wonder why you'd want to name your company Suffering? https://en.wikipedia.org/wiki/Sa%E1%B9%83s%C4%81ra_(Buddhism) https://en.wikipedia.org/wiki/Sa%E1%B9%83s%C4%81ra_(Buddhism...
- justinclift 9y ago
  From their About page: https://www.samsara.com/about https://www.samsara.com/about > In Sanskrit, "Samsara" is the eternal cycle of life and rebirth.
  - spraak 9y ago
    Yeah, but it really has the connotation of suffering, pain, etc. where the escape from Samsara is Nirvana, or the final cessation of suffering
    - devdas 9y ago
      Samsara/Sansara has the connotation of meatspace in Sanskrit and derived languages. Buddhist philosophy says that life in meatspace is suffering, but the word isn't limited to that.
  - userbinator 9y ago
    In other words, eternal churn... It seems ironically appropriate. From the Wiki article linked in the parent: "the beginning-less cycle of repeated birth, mundane existence and dying again" That certainly sounds like a lot of these trends in tech.
- vkrm 9y ago
  There are other connotations to Samsara - in contemporary Telugu and Tamil it is colloquially used for 'universe' and 'family' as well.
  - spraak 9y ago
    Aha, nice to know. But are they of the same etymology?
Aloha 9y ago
I'm going to ask a dumb question - what's the difference between traditional SCADA systems and IIoT?
- csours 9y ago
  Branding and philosophy. SCADA is meant to do something in particular; IIoT is meant to be cloud of devices to do whatever you need. but at the end of the day,you still have to do something in particular
  - Aloha 9y ago
    so from my perspective then an unconfigured SCADA system is now an IIoT :-P
    - DaiPlusPlus 9y ago
      Setting up an unconfigured SCADA makes you an IdIoT?
- gaius 9y ago
  It's not a dumb question at all. It is THE question. The real answer is probably the IIoT is just SCADA-over-IP. But noone will ever get rich giving an honest answer.
csours 9y ago
I work in Automotive Manufacturing IT. Something left unsaid about IIoT is that when the business needs something, they go and buy it. There is no plan for IIoT, there sometimes isn't even a plan for IT. All of your pretty analytics won't do jack if all you get back is -999. Things get complicated the closer you get to the metal, so systems are installed and configured to work, and then you back away slowly and don't breathe on it. Eventually you have a plant full of things that look very similar from the front office, but once you dig in, all of the interesting stuff is completely different, and different in different ways.
- matt_wulfeck 9y ago
  > All of your pretty analytics won't do jack if all you get back is -999. Things get complicated the closer you get to the metal, so systems are installed and configured to work, and then you back away slowly and don't breathe on it. The risk aversion that some sysadmins feel towards changes is absolutely nothing compared to what floor managers want out of their technology. They want to never touch it ever. They want it to work and they want never having to ever think about it. This is perhaps the polar-opposite of what IIoT provides today, requiring constant configuration and security patches. And GE and others are still wondering somehow why the tech isn't taking off.
  - _pmf_ 9y ago
    > They want to never touch it ever. They are prohibited from touching it because vendors of equipment that is part of the assembly line have contract clauses that can bankrupt them within hours when equipment fails and cannot be repaired or replaced within 2 hours, so they in turn forbid any changes.
  - userbinator 9y ago
    They want to never touch it ever. They want it to work and they want never having to ever think about it. This is perhaps the polar-opposite of what IIoT provides today, requiring constant configuration and security patches. Indeed, I would extend that to all technology in general today --- software that seems to need constant updating and is in a state of flux, wondering what else is going to get broken with the next update, etc. Anything web-based has a particularly high churn. It's actually quite unsettling even for someone who isn't running an industrial process but just wants to use their computer to get stuff done. The lifetime of a lot of industrial process equipment is measured in decades, and maintenance/downtime is very infrequent. Continuous reliability is more important than latest and greatest.
gcb0 9y ago
somebody forgot to tell that to Mirai.
alexandros 9y ago
I guess we're ruling out that GE might not have done a great job building a sw platform, and moving straight to "it can't be done, nobody can do it". (Disclaimer: founder of horizontal IIoT startup, scaling just fine)
- 1001101 9y ago
  I can envision N ways that they could make a platform that wouldn't scale, but I can't envision any valid excuses.
- jo909 9y ago
  I think the "scaling" is not about the software platform or connectivity etc, but that it's hard enough to transfer what you learned from the sensor data of a gas powered turbine to the sensor data of a steam powered turbine, and of course even harder or impossible to the pump motor in an ice cream manufacturing plant. And there are millions of different pumps, motors, gears and whistles and their parameters and environment is so specific to the industry and actual machine. It does not scale to offer the same thing "horizontally" across all industries. So they don't offer generalized "industrial" IoT to power plants and ice cream manufacturers alike, but focus on a few industries they know well. You can of course call yourself horizontal across all industries if your offering ends at the software platform or some other building block, but that is apparently not what industrial clients are buying. They buy a wholesome solution.
- semi-extrinsic 9y ago
  I know for a fact that they've built some utter shite IoT hardware as well. Can't give details, but it's a sensor that gives data which can be used to detect early on the failure of a GE $very_expensive_machine. One of our clients bought hundreds of sensors, and after two years only ~30% of the sensors are providing sensible data. The rest are suffering from constant power failures, or just showing constant data, or even measurements decreasing with time (which is not physically possible).
prions 9y ago
I believe we'll see more interesting solutions in industrial IOT when 5G becomes more widespread and industries can start touching problems that lower latency and higher bandwidth wireless can tackle.
- EpicEng 9y ago
  Nothing in this article has to do with speed/performance.
- cobookman 9y ago
  For a lot of industrial IoT 4G is more than adequate, the issue is cost per GiB of data and the amount of savings generated. For most IoT applications all the processing can happen near the edge, with messages going up to the cloud about certain events.
- TheAceOfHearts 9y ago
  Can you give an example? With LTE you get less than 5ms latency, while 5G is promising less than 1ms. However, I think those numbers are under ideal conditions. AFAIK, there's no latency guarantee. Since I'm not familiar with the landscape, I'm having a hard time understanding what kinds of problems are bottlenecked by an hypothetical ~4ms? The bandwidth improvements are huge, but there's no mention of guaranteed speeds, nor do they mention if the quoted speeds apply to both upload and download. It also important to remember that mobile data is incredibly expensive.
erikb 9y ago
If you have a specific system at hand you can say if it contains IoT or not because in the sum all IoT systems have some commonalities. But you cannot build a platform for it because the parts are so very different. The most common thing is that there are some programs that send data over a network which then is collected and analysed. The general purpose platform for that already exists and is called "internet". But as you might've guessed: we already have that.
siscia 9y ago
Since we are talking about IoT and market I would like to ask you guys to share some thoughts.. I am actually focusing quite a lot on IoT in general. I was lucky enough to land a quite interesting contract to manage a LoRaWAN architecture, I learned every trick of one open source implementation[1] (big shout out to brocaar who is the author) and now I am considering selling my expertise as a product. So providing for a flat monthly fee all my knowledge in running such system plus my expertise about LoRa in general. Then I will segment the market considering the number of devices that an user need: 1. Extremely cheap (50€/month), sharing the resources with other tenants and best effort email support for less the 50 remote nodes 2. Quite expensive (5000€/month) for a High Available, scalable and isolated architecture (plus guarantee support) for whoever needs to manage more nodes. Do you believe this is a viable solution or I should focus on something different? [1]: https://github.com/brocaar/loraserver https://github.com/brocaar/loraserver
- BraveNewCurency 9y ago
  You might be a bit early (especially in the USA), but I think helping people implement LoRa will be a massive market. (Bigger than setting up WiFi networks for companies back in the day.) It covers a unique niche between GSM and WiFi that just couldn't be solved until now. I think your segmentation is way to rough. There is a ton of space between the farm with a few hundred nodes to manage, and Nest with a few million nodes. People are just learning best practices to manage a few thousand web servers. Managing a few thousand brickable devices with KBs of RAM is more challenging.
  - siscia 9y ago
    You definitely have a point on the segmentation, however, there was a rationale behind it. It seems to me quite unlikely that someone will buy only the software and not the hardware, I believe that most of these systems will be installed by some vertical company that will sell both hardware and software. And I honestly don't have the knowledge, nor the capital, to set up a vertical company around (say agriculture). It ends up to understand what should be my customers and I am afraid they won't be the final user of the system. My customers are technical, I provide them with digital data that they should somehow consume and it is not an easy task...
slededit 9y ago
This has worked for Jet engines but those are uniquely well suited. Nobody wants the engine to stop mid air and they are incredibly complex and expensive so the costs of realtime monitoring are worth it.
maxbaines 9y ago
I / my company was founded 10years back we focus on CNC Machines specifically. Recently with one our our clients we’ve been working with three leading iIot solutions; some mentioned in the article (we provide the data from the machine into there platforms) six months into the project it is really evident, domain knowledge is key to success. I believe there is an expectation that analytics, Machine Learning, Big Data etc can be applied without the knowledge and results can be delivered. The problem is automation equipment is not / has not been designed to deliver data at a scale this technology can be applied successfully, domain knowledge is still required to make it a success. Shameless plug www.cncdata.co.uk
- Piskvorrr 9y ago
  Yours might be the most salient point: "Let's just sprinkle it with magic IoT dust, abracadabra, profit!!!" is evident cargo cult, but still manages to find traction.
atomical 9y ago
Soo... Uptake not looking like a great company then?
stillfinite 9y ago
In hardware, if too much of the product has to be customized or there is too much variation, you can only win by being Oracle, charging exorbitant amounts to a small set of customers. The market in industrial IoT is not nearly so concentrated, and so the best strategy is probably to pick some lucrative subfield and expand around that. Try to make products that cover everything and you will just get killed by unit economics. But there is no gigantic, homogenous market like "all humans with a disposable income" that the iPhone got to cover, so IoT will always be somewhat competitive.
messo 9y ago
GE should look into IOTA. They seem to have solved the issue of scaling rather well.
benwilber0 9y ago
> Since launching its industrial IoT effort five years ago, GE has spent billions selling the internet of things to investors, analysts and customers. > spent billions Does that seem realistic to anyone? I'm sure they've spent a lot of money, but billions? Even if it's a single "billion" that's basically 1/25th of GE's total worth. edit: Stacey sourced from http://www.ge.com/ar2016/ceo-letter/beyond/ http://www.ge.com/ar2016/ceo-letter/beyond/
- comicjk 9y ago
  According to this site [1], GE spent $393 million on advertising in 2014. So I would say billions on any one product line over 5 years is improbable. Maybe half a billion is believable. [1] http://adage.com/article/advertising/big-spenders-facts-stats-top-200-u-s-advertisers/299270/ http://adage.com/article/advertising/big-spenders-facts-stat...
crusso 9y ago
GE spent a shit-ton of money trying to jump into the smart grid business too. They had commercials on television, but never really any products that went anywhere in the market. GE's failures shouldn't be overly generalized.

208 points by tdrnd 9y ago

The problem should be the ability to sift through and recognize patterns in the massive amounts of data collected, in a manner that provides value to end users. The problem of data (IO) collection/remote collection is long solved. This is what happens when the focus is wrongly placed on how the data is collected rather than what to do with the data when you have it.

grok2 9y ago

It's not clear from the article what doesn't scale -- is it that businesses stretch themselves too thin or is it that making a platform that encompasses any and every use case is not a viable business model or is it that the software technology itself doesn't scale? Anyone know?

csours 9y ago
> making a platform that encompasses any and every use case is not a viable business model That one.
CharlesW 9y ago
> It's not clear from the article what doesn't scale… This is the main problem with the article IMO. Many IIoT technologies and platforms will be used across vastly different industries. Others will be industry-specific. As they always have, industry-specific vendors will integrate industry-specific elements with more "scalable" elements to provide complete solutions for specific customers. OTOH, every complete IIoT solution will be bespoke. Sales, marketing, and integration will not be scalable.
- ethbro 9y ago
  > OTOH, every complete IIoT solution will be bespoke. Sales, marketing, and integration will not be scalable. This is what Palantir learned, and what Oracle semi-avoided in their positioning: Your scalable solution is worthless without last-mile integration, and that integration is always bespoke. Is the IIoT pushing for interface standards, a la SQL? That would seem the main way to scale and extract the kind of revenue they're looking for. Create a standard (and therefore market) for smaller fish to perform the integration, such that it lifts the data up a level and products can be built that operate against diverse sources.
  - warrenm 9y ago
    >Your scalable solution is worthless without last-mile integration, and that integration is always bespoke. Yep. And always has been. Spreadsheets are a great metaphor for this ... or an artist's canvas. They're both capable of amazing things being done on/in them ... but only with the application of custom effort.
  - jessaustin 9y ago
    ISTM that you can't make much money by doing the easy part, unless you do a shitload of volume, at which point you're competing with AWS. Good luck!
elihu 9y ago
It sounds like it's trying to say that creating a walled-garden IIoT ecosystem doesn't work, and that IIoT products are so specialized and application specific that success in one part of the market doesn't usually translate into success in different areas of the IIoT market.
Joeri 9y ago
The whole point of equipping existing installations with IoT sensors is to do data science that lets you improve on some important metric, but for that you need to have deep domain insight as well as the technical insight to wrangle the data. So the customer knows the domain but lacks the technical resources, and the vendor often doesn't understand the domain. That's why you need to do vertical solutions in this market. (I work on a vertical solution for IoT-driven data science in the facility management sector.)

deleted 9y ago

[deleted]

nickpsecurity 9y ago

Companies such as Green Hills Software and Lynx Software Technology have real-time OS's + middleware that have been used in all kinds of industrial deployments. https://ghs.com/ https://ghs.com/ http://www.lynx.com/ http://www.lynx.com/ Maybe the problem is that General Electric is a mega-corporation instead of a company with tons of experience developing embedded software in many markets. It helps to really understand the domain and what users want when developing solutions. Also, only so much can be re-used. Each embedded project is partly a custom job with the amount of customization depending on the use case.

convolvatron 9y ago
i worked on this a bit. its not reasonable to try to generalize anything about this project except the strange behaviors of large organizations.
jessaustin 9y ago
Suddenly the odd recruiting TV ads make more sense... http://www.adweek.com/creativity/getting-hired-ge-impresses-absolutely-no-one-companys-amusing-new-ads-166760/ http://www.adweek.com/creativity/getting-hired-ge-impresses-...

spraak 9y ago

> For example, Samsara, a startup that formed in 2015 I wonder why you'd want to name your company Suffering? https://en.wikipedia.org/wiki/Sa%E1%B9%83s%C4%81ra_(Buddhism) https://en.wikipedia.org/wiki/Sa%E1%B9%83s%C4%81ra_(Buddhism...

justinclift 9y ago
From their About page: https://www.samsara.com/about https://www.samsara.com/about > In Sanskrit, "Samsara" is the eternal cycle of life and rebirth.
- spraak 9y ago
  Yeah, but it really has the connotation of suffering, pain, etc. where the escape from Samsara is Nirvana, or the final cessation of suffering
  - devdas 9y ago
    Samsara/Sansara has the connotation of meatspace in Sanskrit and derived languages. Buddhist philosophy says that life in meatspace is suffering, but the word isn't limited to that.
- userbinator 9y ago
  In other words, eternal churn... It seems ironically appropriate. From the Wiki article linked in the parent: "the beginning-less cycle of repeated birth, mundane existence and dying again" That certainly sounds like a lot of these trends in tech.
vkrm 9y ago
There are other connotations to Samsara - in contemporary Telugu and Tamil it is colloquially used for 'universe' and 'family' as well.
- spraak 9y ago
  Aha, nice to know. But are they of the same etymology?

Aloha 9y ago

I'm going to ask a dumb question - what's the difference between traditional SCADA systems and IIoT?

csours 9y ago
Branding and philosophy. SCADA is meant to do something in particular; IIoT is meant to be cloud of devices to do whatever you need. but at the end of the day,you still have to do something in particular
- Aloha 9y ago
  so from my perspective then an unconfigured SCADA system is now an IIoT :-P
  - DaiPlusPlus 9y ago
    Setting up an unconfigured SCADA makes you an IdIoT?
gaius 9y ago
It's not a dumb question at all. It is THE question. The real answer is probably the IIoT is just SCADA-over-IP. But noone will ever get rich giving an honest answer.

csours 9y ago

I work in Automotive Manufacturing IT. Something left unsaid about IIoT is that when the business needs something, they go and buy it. There is no plan for IIoT, there sometimes isn't even a plan for IT. All of your pretty analytics won't do jack if all you get back is -999. Things get complicated the closer you get to the metal, so systems are installed and configured to work, and then you back away slowly and don't breathe on it. Eventually you have a plant full of things that look very similar from the front office, but once you dig in, all of the interesting stuff is completely different, and different in different ways.

matt_wulfeck 9y ago
> All of your pretty analytics won't do jack if all you get back is -999. Things get complicated the closer you get to the metal, so systems are installed and configured to work, and then you back away slowly and don't breathe on it. The risk aversion that some sysadmins feel towards changes is absolutely nothing compared to what floor managers want out of their technology. They want to never touch it ever. They want it to work and they want never having to ever think about it. This is perhaps the polar-opposite of what IIoT provides today, requiring constant configuration and security patches. And GE and others are still wondering somehow why the tech isn't taking off.
- _pmf_ 9y ago
  > They want to never touch it ever. They are prohibited from touching it because vendors of equipment that is part of the assembly line have contract clauses that can bankrupt them within hours when equipment fails and cannot be repaired or replaced within 2 hours, so they in turn forbid any changes.
- userbinator 9y ago
  They want to never touch it ever. They want it to work and they want never having to ever think about it. This is perhaps the polar-opposite of what IIoT provides today, requiring constant configuration and security patches. Indeed, I would extend that to all technology in general today --- software that seems to need constant updating and is in a state of flux, wondering what else is going to get broken with the next update, etc. Anything web-based has a particularly high churn. It's actually quite unsettling even for someone who isn't running an industrial process but just wants to use their computer to get stuff done. The lifetime of a lot of industrial process equipment is measured in decades, and maintenance/downtime is very infrequent. Continuous reliability is more important than latest and greatest.

gcb0 9y ago

somebody forgot to tell that to Mirai.

alexandros 9y ago

I guess we're ruling out that GE might not have done a great job building a sw platform, and moving straight to "it can't be done, nobody can do it". (Disclaimer: founder of horizontal IIoT startup, scaling just fine)

1001101 9y ago
I can envision N ways that they could make a platform that wouldn't scale, but I can't envision any valid excuses.
jo909 9y ago
I think the "scaling" is not about the software platform or connectivity etc, but that it's hard enough to transfer what you learned from the sensor data of a gas powered turbine to the sensor data of a steam powered turbine, and of course even harder or impossible to the pump motor in an ice cream manufacturing plant. And there are millions of different pumps, motors, gears and whistles and their parameters and environment is so specific to the industry and actual machine. It does not scale to offer the same thing "horizontally" across all industries. So they don't offer generalized "industrial" IoT to power plants and ice cream manufacturers alike, but focus on a few industries they know well. You can of course call yourself horizontal across all industries if your offering ends at the software platform or some other building block, but that is apparently not what industrial clients are buying. They buy a wholesome solution.
semi-extrinsic 9y ago
I know for a fact that they've built some utter shite IoT hardware as well. Can't give details, but it's a sensor that gives data which can be used to detect early on the failure of a GE $very_expensive_machine. One of our clients bought hundreds of sensors, and after two years only ~30% of the sensors are providing sensible data. The rest are suffering from constant power failures, or just showing constant data, or even measurements decreasing with time (which is not physically possible).

prions 9y ago

I believe we'll see more interesting solutions in industrial IOT when 5G becomes more widespread and industries can start touching problems that lower latency and higher bandwidth wireless can tackle.

EpicEng 9y ago
Nothing in this article has to do with speed/performance.
cobookman 9y ago
For a lot of industrial IoT 4G is more than adequate, the issue is cost per GiB of data and the amount of savings generated. For most IoT applications all the processing can happen near the edge, with messages going up to the cloud about certain events.
TheAceOfHearts 9y ago
Can you give an example? With LTE you get less than 5ms latency, while 5G is promising less than 1ms. However, I think those numbers are under ideal conditions. AFAIK, there's no latency guarantee. Since I'm not familiar with the landscape, I'm having a hard time understanding what kinds of problems are bottlenecked by an hypothetical ~4ms? The bandwidth improvements are huge, but there's no mention of guaranteed speeds, nor do they mention if the quoted speeds apply to both upload and download. It also important to remember that mobile data is incredibly expensive.

erikb 9y ago

If you have a specific system at hand you can say if it contains IoT or not because in the sum all IoT systems have some commonalities. But you cannot build a platform for it because the parts are so very different. The most common thing is that there are some programs that send data over a network which then is collected and analysed. The general purpose platform for that already exists and is called "internet". But as you might've guessed: we already have that.

siscia 9y ago

Since we are talking about IoT and market I would like to ask you guys to share some thoughts.. I am actually focusing quite a lot on IoT in general. I was lucky enough to land a quite interesting contract to manage a LoRaWAN architecture, I learned every trick of one open source implementation[1] (big shout out to brocaar who is the author) and now I am considering selling my expertise as a product. So providing for a flat monthly fee all my knowledge in running such system plus my expertise about LoRa in general. Then I will segment the market considering the number of devices that an user need: 1. Extremely cheap (50€/month), sharing the resources with other tenants and best effort email support for less the 50 remote nodes 2. Quite expensive (5000€/month) for a High Available, scalable and isolated architecture (plus guarantee support) for whoever needs to manage more nodes. Do you believe this is a viable solution or I should focus on something different? [1]: https://github.com/brocaar/loraserver https://github.com/brocaar/loraserver

BraveNewCurency 9y ago
You might be a bit early (especially in the USA), but I think helping people implement LoRa will be a massive market. (Bigger than setting up WiFi networks for companies back in the day.) It covers a unique niche between GSM and WiFi that just couldn't be solved until now. I think your segmentation is way to rough. There is a ton of space between the farm with a few hundred nodes to manage, and Nest with a few million nodes. People are just learning best practices to manage a few thousand web servers. Managing a few thousand brickable devices with KBs of RAM is more challenging.
- siscia 9y ago
  You definitely have a point on the segmentation, however, there was a rationale behind it. It seems to me quite unlikely that someone will buy only the software and not the hardware, I believe that most of these systems will be installed by some vertical company that will sell both hardware and software. And I honestly don't have the knowledge, nor the capital, to set up a vertical company around (say agriculture). It ends up to understand what should be my customers and I am afraid they won't be the final user of the system. My customers are technical, I provide them with digital data that they should somehow consume and it is not an easy task...

slededit 9y ago

This has worked for Jet engines but those are uniquely well suited. Nobody wants the engine to stop mid air and they are incredibly complex and expensive so the costs of realtime monitoring are worth it.

maxbaines 9y ago

I / my company was founded 10years back we focus on CNC Machines specifically. Recently with one our our clients we’ve been working with three leading iIot solutions; some mentioned in the article (we provide the data from the machine into there platforms) six months into the project it is really evident, domain knowledge is key to success. I believe there is an expectation that analytics, Machine Learning, Big Data etc can be applied without the knowledge and results can be delivered. The problem is automation equipment is not / has not been designed to deliver data at a scale this technology can be applied successfully, domain knowledge is still required to make it a success. Shameless plug www.cncdata.co.uk

Piskvorrr 9y ago
Yours might be the most salient point: "Let's just sprinkle it with magic IoT dust, abracadabra, profit!!!" is evident cargo cult, but still manages to find traction.

atomical 9y ago

Soo... Uptake not looking like a great company then?

stillfinite 9y ago

In hardware, if too much of the product has to be customized or there is too much variation, you can only win by being Oracle, charging exorbitant amounts to a small set of customers. The market in industrial IoT is not nearly so concentrated, and so the best strategy is probably to pick some lucrative subfield and expand around that. Try to make products that cover everything and you will just get killed by unit economics. But there is no gigantic, homogenous market like "all humans with a disposable income" that the iPhone got to cover, so IoT will always be somewhat competitive.

messo 9y ago

GE should look into IOTA. They seem to have solved the issue of scaling rather well.

benwilber0 9y ago

> Since launching its industrial IoT effort five years ago, GE has spent billions selling the internet of things to investors, analysts and customers. > spent billions Does that seem realistic to anyone? I'm sure they've spent a lot of money, but billions? Even if it's a single "billion" that's basically 1/25th of GE's total worth. edit: Stacey sourced from http://www.ge.com/ar2016/ceo-letter/beyond/ http://www.ge.com/ar2016/ceo-letter/beyond/

comicjk 9y ago
According to this site [1], GE spent $393 million on advertising in 2014. So I would say billions on any one product line over 5 years is improbable. Maybe half a billion is believable. [1] http://adage.com/article/advertising/big-spenders-facts-stats-top-200-u-s-advertisers/299270/ http://adage.com/article/advertising/big-spenders-facts-stat...

crusso 9y ago

GE spent a shit-ton of money trying to jump into the smart grid business too. They had commercials on television, but never really any products that went anywhere in the market. GE's failures shouldn't be overly generalized.