Keynoters have a tough time with originality these Digital Days with everyone emphasizing Digital Transformation. Steve Lomholt-Thomson, chief revenue officer of AVEVA, took us on a Digital Journey this morning. Setting the tone of the three days of AVEVA World Congress (North America edition).
Three technology trends to watch: an IoT boom; cloud/empowered edge; and, AI / ML. The theme is digital. The Digital Organization discovers its Digital DNA, figures out how to build that Digital DNA through people who challenge the status quo; and then figures out how to track talent flow.
Which all starts us on our Digital Journey. On this journey, we unify end-to-end data, connect data silos taking an wholistic view of the business, and then visualize our assets and supply chain. I believe implied in all this is the company’s product AVEVA System Platform. The company touted six customer stories with at least five of them (and probably the sixth) all leveraging System Platform.
Oh, and the only time the “W” word was used referred to past tense.
Other areas of the company were highlighted:
Focus on assets–asset performance management including how to use machine learning (ML) and artificial intelligence (AI) for predictive analytics (predictive maintenance.
How to combine it all into a Digital Twin–bringing the design lifecycle and physical lifecycle into congruence.
Recently hired head of North America business, Christine Harding, interviewed customers from Campbell’s (soup/snacks), Quantum Solutions (integration project at St. Louis/Lambert airport), and Suncor (Canadian oil sands).
I have the rest of today and then tomorrow to take deeper dives into many of these topics. If there is anything you want me to ask, send a note.
Many engineers and programmers like open source projects combined with open APIs. Some open source catches on and quietly becomes widely used. Others languish. The Linux Foundation’s Edge project, especially EdgeX Foundry, keeps quietly growing. What are the odds that this becomes a widely used Internet of Things tool?
Today’s news in brief:
- EdgeX’s fifth release offers more scalable solutions to move data from devices to cloud, enterprise and on-premises applications
- The first LF Edge project to achieve Stage 3 ratification, EdgeX hits widespread adoption and production-level maturity
- EdgeX and LF Edge onsite at IoT Solutions World Congress with demos from Dell Technologies, Home Edge, IOTech and Project EVE
EdgeX Foundry, a project under the LF Edge umbrella organization within the Linux Foundation that aims to establish an open, interoperable framework for IoT edge computing independent of connectivity protocol, hardware, operating system, applications or cloud, announced the availability of its “Fuji” release. This release offers additional security and testing features on top of the production-ready “Edinburgh” release launched this spring.
“EdgeX Foundry has experienced significant momentum in developing an open IoT platform for edge-related applications and shows no signs of slowing down,” said Arpit Joshipura, general manager, Networking, Edge and IoT, the Linux Foundation. “As the only Stage 3 project under LF Edge, EdgeX Foundry is a clear example of how open collaboration is the key to an active community dedicated to creating an interoperable open source framework across IoT, Enterprise, Cloud and Telco Edge.”
Launched in April 2017, and now part of the LF Edge umbrella, EdgeX Foundry is an open source, loosely-coupled microservices framework that provides the choice to plug and play from a growing ecosystem of available third-party offerings or to augment proprietary innovations. With a focus on the IoT Edge, EdgeX simplifies the process to design, develop and deploy solutions across industrial, enterprise, and consumer applications. As a Stage 3 project under LF Edge, EdgeX is a self-sustaining cycle of development, maintenance, and long-term support. As an example of the rapidly accelerating use of the code, EdgeX hit a milestone of 1 million platform container downloads, which almost half of these took place in the last few months.
“The 1M container download isn’t our only milestone,” said Keith Steele, EdgeX Foundry chair of the Technical Steering Committee and LF Edge Governing Board member. “The development team has expanded with more than 150 active contributors globally and the partner ecosystem of complementary products and services continues to increase. As a result, we’re seeing more end-user case studies that range from energy and utilities, building automation, industrial process control and factory automation, smart cities, retail stores and distribution and health monitoring.”
The Fuji Release
As the fifth release in the EdgeX Foundry roadmap, Fuji offers significant enhancements to the Edinburgh 1.0 release, which launched in July, including:
- New and improved security features to include PKI infrastructure for token/key generation.
- Application services that now offer full replacement capability to the older export services provided with previous EdgeX releases. These application services offer more scalable and easier to use solutions to get data from the EdgeX framework to cloud, enterprise and on-premises applications.
- Example application services are provided with this release to allow users to quickly move data from EdgeX to the Azure and AWS IoT platforms.
- A new applications function Software Development Kit (SDK) also provides the EdgeX user community with the ability to create new and customized solutions on top of EdgeX – for example, allowing EdgeX to move edge data to legacy and non-standard environments.
- Unit test coverage is considerably increased (in some services by more than 200 percent) across EdgeX core and supporting microservices.
- New device service connectors to BLE, BACNet, IP camera, OPC UA, GPS, and REST device services.
- Choices for commercially-supported EdgeX device connectors are also starting to blossom with offerings for CANopen, PROFINET, Zigbee, and EtherCat available through EdgeX community members.
Inaugural EdgeX Open
The EdgeX Foundry community recently kicked off a series of hackathons, titled the EdgeX Open. More than 70 attendees participated in the first event on October 7- 8, 2019, in Chicago. Hosted by LF Edge and the Retail Industry Leader Association (RILA), and sponsored by Canonical, Dell Technologies, Deep Vision, Intel, IOTech, IoTium and Zededa, the event featured five teams that competed in retail use case categories. More details on the event, including the winning use case from Volteo, are available in this blog post.
The next hackathon will coincide with the Geneva release, targeted for Spring 2020. It will be centered on the Manufacturing vertical and held in a location in Europe.
Internet of Things installations along with industrial control systems constitute well known cybersecurity vulnerabilities within industrial plants and operations. CyberX, the IoT and industrial control system (ICS) security company, announced the availability of its “2020 Global IoT/ICS Risk Report” designed to sharpen awareness and knowledge of this critical area.
The data illustrates that IoT/ICS networks and unmanaged devices are soft targets for adversaries, increasing the risk of costly downtime, catastrophic safety and environmental incidents, and theft of sensitive intellectual property.
Some of the top findings noted that these networks have outdated operating systems (71 percent of sites), use unencrypted passwords (64 percent) and lack automatic antivirus updates (66 percent).
Energy utilities and oil and gas firms, which are generally subject to stricter regulations, fared better than other sectors such as manufacturing, chemicals, pharmaceuticals, mining, transportation and building management systems (CCTV, HVAC, etc.).
Now in its third year, CyberX’s “Global IoT/ICS Risk Report” is based on analyzing real-world traffic from more than 1,800 production IoT/ICS networks across a range of sectors worldwide, making it a more accurate snapshot of the current state of IoT/ICS security than survey-based studies.
Including the data presented in previous reports, CyberX has now analyzed over 3,000 IoT/ICS networks worldwide using its patented M2M-aware behavioral analytics and non-invasive agentless monitoring technology.
Recommendations Focus on Prioritization and Compensating Controls
The report concludes with a practical seven step process for mitigating IoT/ICS cyber risk based on recommendations developed by NIST and Idaho National Labs (INL), a global authority on critical infrastructure and ICS security.
Experts agree that organizations can’t fully prevent determined attackers from compromising their networks. As a result, they recommend prioritizing vulnerability remediation for “crown jewel” assets — critical assets whose compromise would cause a major revenue or safety impact — while implementing compensating controls such as continuous monitoring and behavioral anomaly detection (BAD) to quickly spot intruders before they can cause real damage to operations.
“Our goal is to bring board-level awareness of the risk posed by easily-exploited vulnerabilities in IoT/ICS networks and unmanaged devices — along with practical recommendations about how to reduce it,” said Omer Schneider, CyberX CEO and co-founder.
“Today’s adversaries — ranging from nation-states to cybercriminals and hacktivists — are highly motivated and capable of compromising our most critical operational systems,” said Nir Giller, CyberX GM, CTO and co-founder. “It’s now incumbent on boards and management teams to recognize the risk and ensure appropriate security and governance processes are in place across all their facilities to address it.”
Summary of Key Findings
- Broken Windows: Outdated Operating Systems. 62 percent of sites have unsupported Microsoft Windows boxes such as Windows XP and Windows 2000 that no longer receive regular security patches from Microsoft, making them especially vulnerable to ransomware and destructive malware. The figure rises to 71 percent with Windows 7 included, which reaches end-of-support status in January 2020.
- Hiding in Plain Sight: Unencrypted Passwords. 64 percent of sites have unencrypted passwords traversing their networks, making it easy for adversaries to compromise additional systems simply by sniffing the network traffic.
- Excessive Access: Remotely Accessible Devices. 54 percent of sites have devices that can be remotely accessed using standard management protocols such as RDP, SSH and VNC, enabling attackers to pivot undetected from initial footholds to other critical assets. For example, during the TRITON attack on the safety systems in a petrochemical facility, the adversary leveraged RDP to pivot from the IT network to the OT network in order to deploy its targeted zero-day malware.
- Clear and Present Danger: Indicators of Threats. 22 percent of sites exhibited indicators of threats, including suspicious activity such as scan traffic, malicious DNS queries, abnormal HTTP headers, excessive number of connections between devices and malware such as LockerGoga and EternalBlue.
- Not Minding the Gap: Direct Internet Connections. 27 percent of sites analyzed have a direct connection to the internet. Security professionals and bad actors alike know that it takes only one internet-connected device to provide a gateway into IoT/ICS networks for malware and targeted attacks, enabling the subsequent compromise of many more systems across the enterprise.
- Stale Signatures: No Automatic Antivirus Updates: 66 percent of sites are not automatically updating Windows systems with the latest antivirus definitions. Antivirus is the very first layer of defense against known malware — and the lack of antivirus is one reason why CyberX routinely finds older malware such as WannaCry and Conficker in IoT/ICS networks.
The IT architecture of industrial / manufacturing applications increasingly boosts the role of cloud and edge. These technologies have become core to Industrial Internet of Things (IIoT) and improved Software as a Service (SaaS).
These recent acquisition news items reflect the acceleration of the trend. One is from Siemens and the other PTC.
Siemens plans acquisition of Edge technology
- Siemens further expands its digitalization portfolio for industry
- Technology basis is the Docker IT standard
- Siemens Industrial Edge ecosystem enables easy and flexible use of Edge apps
Siemens is planning the acquisition of Edge technology from the US company Pixeom. With this action, Siemens is strengthening its Industrial Edge portfolio by adding software components for Edge runtime and for device management. Siemens Industrial Edge provides an ecosystem, which enables the flexible provision and use of apps. This means for example that appropriate apps can analyze data locally at the machine and send relevant data to the higher-level Industrial Edge Management System for global analytics. With this acquisition, Siemens is driving forward the expansion of its Digital Enterprise portfolio and the integration of cutting-edge technologies for the digital transformation of industry.
With the resulting Industrial Edge ecosystem, industrial companies can use production data even more efficiently and react more flexibly to changes in conditions.
Ralf-Michael Franke, CEO of Siemens’ Factory Automation Business Unit, explains: “Cutting edge technologies such as Edge Computing open up new scope for automation. With Siemens Industrial Edge, we are creating an open edge ecosystem which offers benefits for companies of any size.”
Siemens is using Docker standard container technology: the provision of apps in the management system will therefore be just as simple as functional upgrades and updates of Edge devices in the factory from a central point.
Siemens intends to acquire this technology from Pixeom and use it in the Factory Automation Business Unit, which is part of Siemens Digital Industries. Pixeom has sites in San José, California and Udaipur, India and employs 81 people worldwide. Closing of the transaction is planned for the fourth quarter of 2019. Both companies have agreed not to comment on the financial details of the transaction.
PTC Makes SaaS Acquisition
I sat in on the analysts/press conference where PTC president and CEO Jim Heppelmann discussed the reason for this announced acquisition of Onshape, creators of the “first” Software as a Service product development platform. The company had also just released fourth quarter results. PTC has a little more than $1 billion in revenues, with about 45% CAD and 35% PLM. Interestingly, the IoT business contributes just over 10% of revenues.
Onshape’s product development platform unites computer aided design (CAD) with data management and collaboration tools, for approximately $470 million, net of cash acquired. The acquisition is expected to accelerate PTC’s ability to attract new customers with a SaaS-based product offering and position the company to capitalize on the inevitable industry transition to SaaS. Heppelmann believes that that cloud-based SaaS is the future of CAD. Pending regulatory approval and satisfaction of other closing conditions, the transaction is expected to be completed in November 2019.
Located in Cambridge, MA, Onshape was founded in 2012 by CAD pioneers and tech legends, including Jon Hirschtick, John McEleney, and Dave Corcoran, inventors and former executives of SolidWorks. Onshape has secured more than $150 million in funding from leading venture capital firms and has more than 5,000 subscribers around the world. The company’s software offering is delivered in a SaaS model, making it accessible from any connected location or device, eliminating the need for costly hardware and administrative staff to maintain. Distributed and mobile teams of designers, engineers, and others can benefit from the product’s cloud nature, enabling them to improve collaboration and to dramatically reduce the time needed to bring new products to market – while simultaneously staying current with the latest software.
“PTC has earned a reputation for successfully pursuing new innovations that drive corporate growth,” said Heppelmann. “Building on the strong momentum we have with our on-premises CAD and PLM businesses, we look to our future and see a new growth play with SaaS.”
This acquisition is the logical next step in PTC’s overall evolution to a recurring revenue business model, the first step of which was the company’s successful transition to subscription licensing, completed in January 2019. The SaaS model, while nascent in the CAD and PLM market, is rapidly becoming industry best practice across most other software domains.
“Today, we see small and medium-sized CAD customers in the high-growth part of the CAD market shifting their interest toward SaaS delivery models, and we expect interest from larger customers to grow over time,” continued Heppelmann. “The acquisition of Onshape complements our on-premises business with the industry’s only proven, scalable pure SaaS platform, which we expect will open new CAD and PLM growth opportunities while positioning PTC to be the leader as the market transitions toward the SaaS model.”
For customers, the SaaS model enables faster work, improved collaboration and innovation, with lower up-front costs and with no IT infrastructure to administer and maintain. For software providers, the SaaS model has been proven to generate a more stable and predictable revenue stream, increase customer loyalty as customers benefit from earlier adoption of technology innovations, and enable expansions into new segments and geographies.
“At Onshape, we share PTC’s vision for helping organizations transform the way they develop products,” said Jon Hirschtick, CEO and co-founder, Onshape. “We and PTC believe that the product development industry is nearing the ‘tipping point’ for SaaS adoption of CAD and data management tools. We look forward to empowering the customers we serve with the latest innovations to improve their competitive positions.”
Onshape will operate as a business unit within PTC, with current management reporting directly to Heppelmann.
Salesforce recently began reaching out to me. I found a (to me) surprising connection to industrial / manufacturing applications beyond CRM and the like. In general, more and more applications are moving to the cloud. In Brief: New research finds The Salesforce Economy will create more than $1 trillion in new business revenues and 4.2 million jobs between 2019 and 2024. Salesforce ecosystem is on track to become nearly six times larger than Salesforce itself by 2024, earning $5.80 for every dollar Salesforce makes.
Financial services, manufacturing and retail industries will lead the way, creating $224 billion, $212 billion and $134 billion in new business revenue respectively by 2024.
Salesforce announced new research from IDC that finds Salesforce and its ecosystem of partners will create 4.2 million new jobs and $1.2 trillion in new business revenues worldwide between 2019 and 2024. The research also finds Salesforce is driving massive gains for its partner ecosystem, which will see $5.80 in gains for every $1 Salesforce makes by 2024.
Cloud computing is driving this growth and giving rise to a host of new technologies, including mobile, social, IoT and AI, that are creating new revenue streams and jobs that further fuel the growth of the cloud — creating an ongoing virtuous cycle of innovation and growth. According to IDC, by 2024 nearly 50 percent of cloud computing software spend will be tied to digital transformation and will account for nearly half of all software sales. Worldwide spending on cloud computing between now and 2024 will grow 19 percent annually, from $179 billion in 2019 to $418 billion in 2024.
“The Salesforce ecosystem is made possible by the amazing work of our customers and partners around the world, and because of our collaboration we’re able to generate the business and job growth that we see today,” said Tyler Prince, EVP, Industries and Partners at Salesforce. “Whether it’s through industry-specific extensions or business-aligned apps, the Salesforce Customer 360 platform helps accelerate the growth of our partner ecosystem, and most importantly, the growth of our customers.”
Because organizations that spend on cloud computing subscriptions also spend on ancillary products and services, the Salesforce ecosystem in 2019 is more than four times larger than Salesforce itself and will grow to almost six times larger by 2024. IDC estimates that from 2019 through 2024, Salesforce will drive the creation of 6.6 million indirect jobs, which are created from spending in the general economy by those people filling the 4.2 million jobs previously mentioned.
“The tech skills gap will become a major roadblock for economic growth if we don’t empower everyone – regardless of class, race or gender – to skill up for the Fourth Industrial Revolution,” said Sarah Franklin, EVP and GM of Platform, Developers and Trailhead at Salesforce. “With Trailhead, our free online learning platform, people don’t need to carry six figures in debt to land a top job; instead, anyone with an Internet connection can now have an equal pathway to landing a job in the Salesforce Economy.”
Industry Economic Benefits of the Salesforce Economy
Specifically, Manufacturing industry will gain $211.7 billion in new revenues and 765,800 new jobs will be created by 2024.
Salesforce’s multi-faceted ecosystem is the driving force behind the Salesforce Economy’s massive growth:
- The global ecosystem includes multiple stakeholders, all of which play an integral part in the Salesforce Economy. This includes the world’s top five consulting firms, all of whom have prominent Salesforce digital transformation practices; independent software vendors (ISVs) that build their businesses on the Salesforce Customer 360 Platform and bring Salesforce into new industries; more than 1,200 Community Groups, with different areas of focus and expertise; and more than 200 Salesforce MVPs, product experts and brand advocates.
- Launched in 2006, Salesforce AppExchange is the world’s largest enterprise cloud marketplace, and hosts more than 4,000 solutions including apps, templates, bots and components that have been downloaded more than 7 million times. Ninety-five percent of the Fortune 100, 81 percent of the Fortune 500, and 86 percent of Salesforce customers are using AppExchange apps.
- Trailhead is Salesforce’s free online learning platform that empowers anyone to skill up for the future, learn in-demand skills and land a top job in the Salesforce Economy. Since Trailhead launched in 2014, more than 1.7 million Trailblazers have earned over 17.5 million badges; a quarter of all learners on Trailhead have leveraged their newfound skills to jump-start their careers with new jobs. Indeed, the world’s #1 job site, included Salesforce Developer in its list of best jobs in the US for 2019, noting that the number of job postings for that position had increased 129 percent year-over-year.
Inductive Automation has selected the recipients of its Ignition Firebrand Awards for 2019. The announcements were made at the Ignition Community Conference (ICC), which took place September 17-19. I get to see the poster displays and chat with the companies at ICC. I love the technology developers, but it’s fascinating to talk with people who actually use the products.
[Disclaimer: Inductive Automation is a long-time and much appreciated sponsor of The Manufacturing Connection. If you are a supplier, you, too, could be a sponsor. Contact me for more details. You would benefit from great visibility.]
The Ignition Firebrand Awards recognize system integrators and industrial organizations that use the Ignition software platform to create innovative new projects. Ignition by Inductive Automation is an industrial application platform with tools for the rapid development of solutions in human-machine interface (HMI), supervisory control and data acquisition (SCADA), manufacturing execution systems (MES), and the Industrial Internet of Things (IIoT). Ignition is used in virtually every industry, in more than 100 countries.
“The award-winning projects this year were really impressive,” said Don Pearson, chief strategy officer for Inductive Automation. “Many of them featured Ignition 8 and the new Ignition Perspective Module, both of which were released just six months ago. We were really impressed with how quickly people were able to create great projects with the new capabilities.”
These Ignition Firebrand Award winners demonstrated the power and flexibility of Ignition:
- Brock Solutions worked with the Dublin Airport in Ireland to replace the baggage handling system in Terminal 2. The new system has 100,000 tags and is the largest Ignition-controlled airport baggage handling system in the world.
- Corso Systems & SCS Engineers partnered on a pilot project for the landfill gas system of San Bernardino County, California. The pilot was so successful, it will be expanded to 27 other county sites. It provides a scalable platform with strong mobile capabilities from Ignition 8 and Ignition Perspective, plus 3D imaging from drone video and virtual reality applications.
- ESM Australia developed a scalable asset management system to monitor performance and meet service requirements for a client with systems deployed all over Australia. The solution leveraged Ignition 8, Ignition Perspective, MQTT, and legacy FTP-enabled gateways in the field.
- H2O Innovation & Automation Station partnered to create a SCADA system for the first membrane bioreactor wastewater treatment plant in Arkansas. The new system for the City of Decatur shares real-time data with neighboring water agencies as well as the mayor.
- Industrial Networking Solutions created a new oil & gas SCADA system in just six months for 37 sites at ARB Midstream. The solution included hardware upgrades, a new control room, and a diverse collection of technologies with cloud-hosted SCADA, MQTT, Ignition Edge, and SD-WAN.
- MTech Engineering developed an advanced real-time monitoring and control system for the largest data center campus in Italy. The project for Aruba S.p.A. had to work with huge amounts of data — and was done at a much lower cost than was possible with any other SCADA solution.
- NLS Engineering created a single, powerful operations and management platform for more than 30 solar-power sites for Ecoplexus, a leader in renewable energy systems. The solution provided deep data acquisition, included more than 100,000 tags, and led to the creation of a platform that can be offered to other clients.
- Streamline Innovations used Ignition, Ignition Edge, Ignition Perspective, and MQTT, to facilitate the automation of natural gas treating units that convert extremely toxic hydrogen sulfide into fertilizer-grade sulfur. The solution increased uptime, reduced costs, and provided access to much more data than Streamline had seen previously.