by Gary Mintchell | Oct 25, 2017 | Internet of Things
Interesting that just as I was planning my trip to San Francisco to attend GE Digital’s Minds + Machines conference a publicist representing Simon-Kucher, a German-based pricing model consultancy, pitched me an interview with Adam Echter, Senior Director.
First, some context. In our community, we view GE Digital as a supplier. Although GE makes PLCs and other control equipment, it is known for software—Cimplicity, iFix, Proficy, Predix. The company, though, in reality makes its money from large assets—locomotives, power generation, jet engines, and the like.
As Jeff Immelt restructured the company jettisoning some of Jack Welch’s favored, but losing, investments. GE became less of media and finance returning to its roots in industrial manufacturing.
Searching for a better sales and profit model, GE famously began selling thrust rather than jet engines. Or it sold uptime rather than equipment. To do this, it needed to develop its own Industrial Internet of Things ecosystem.
The pricing model is known as consumption-based.
Echter sees us living in a time of transition where the IIoT, which was once the controlled domain of a limited number of ultra-large multinational corporations, will blossom into an uncontrollable ecosystem providing Billion dollar opportunities for hundreds of companies. As the complexity of the IIoT continues to explode and demands for complicated specialties emerge, large players like GE are seeing their pricing power diminish and a plethora of market participants emerging with new and disruptive monetization models. GE monetized their pricing power because they controlled all layers of the system; capital equipment, sensors, communications, data processing and storage.
GE was able to lock all inputs into flat pricing models, then sell their output on an open-ended consumption model. As the complexity of the IIoT scales, it has become increasingly difficult for manufacturers of this first-moving technology like GE to retain control.
What he means by the complexity is that other suppliers are getting into the act. They want to sell through GE the same way GE is selling to its customers. This will take a potentially big bite out of profits.
Meanwhile, Immelt has been replaced by the board.
What are you seeing from suppliers? Or, what are you demanding? Ecosystems? I spent considerable time explaining the ecosystem that MIMOSA is proposing that is totally based on standards. The Linux Foundation, promoted by Dell Technologies and others, has developed an open source ecosystem for the IIoT.
Is this the future?
by Gary Mintchell | Sep 27, 2017 | Automation, Standards
This article appeared in TechCrunch. It’s pretty IT oriented, but the thoughts are relevant for the OT world, too.
The author, Ron Miller, reported that Amazon’s AWS move to join an industry standard on a technology known as containers signals the importance of standards.
Get Smart: Standards develop in a number of ways. Not all of them are ISA or ISO or IEC, although these definitely have a place. An industry leader once told me, “Gary, the best industry standards are de facto standards.” These are the ones that build a critical mass among users and developers and that solve real problems.
When AWS today became a full-fledged member of the container standards body, the Cloud Native Computing Foundation, it represented a significant milestone. By joining Google, IBM, Microsoft, Red Hat and just about every company that matters in the space, AWS has acknowledged that when it comes to container management, standards matter.
Does this sound familiar to the industrial automation market? AWS has been known to go the proprietary route, after all. When you’re that big and powerful, and control vast swaths of market share as AWS does, you can afford to go your own way from time to time. Containers is an area it hasn’t controlled, though. That belongs to Kubernetes, the open source container management tool originally developed inside Google.
What does it take for standards to win? Once it recognized Google’s dominance in container management, the next logical step was to join the CNCF and adhere to the same container standards the entire industry is using. Sometimes it’s better to switch than fight, and this was clearly one of those times.
The reason for standards. Standards provide a common basis for managing containers. Everyone can build their own tools on top of them. Google already has when it built Kubernetes, Red Hat has OpenShift, Microsoft makes Azure Container Service — and so forth and so on.
As for end users: Companies like standards because they know the technology is going to work a certain way, regardless of who built it. Each vendor provides a similar set of basic services, then differentiates itself based on what it builds on top.
Benefits for all: Technology tends to take off once a standard is agreed upon by the majority of the industry. Look at the World Wide Web. It has taken off because there is a standard way of building web sites. When companies agree to the building blocks, everything else seems to fall into place.
by Gary Mintchell | May 15, 2017 | Internet of Things, Operations Management
Enterprise begins to meet operations from the enterprise side of technology at Dell World—now Dell EMC World following the mammoth acquisition of EMC by Dell last year–via the Internet of Things. That followed Michael Dell leading the company into privately owned territory.
Michael Dell himself prominently mentioned manufacturing and Internet of Things (IoT) during his keynotes of 2015 and 2016. Perhaps not as much this year at the first totally combined conferences held May 8-11 in Las Vegas. But there was so much enterprise product news and so little time.
Dell also stressed the success of combining the companies as well as making clear the new organization structure of Dell Technologies—the company name—consisting of Dell, Dell EMC, Pivotal, RSA, SecureWorks, Virtustream, and VMware.
Digital Transformation formed the theme message of the week. This conversation consists of business transformation and applications changes rapidly taking place now. Part of the transformation is formed by IT Transformation requiring adoption and assimilation of a new generation of servers, applications, and technologies. Millennials’ expectations (and maybe also some of us “old” guys) fire the Workforce Transformation now building. One study found that 82% of millennials would quit or not hire in initially based upon the level of technology tools offered. Finally all this digital infrastructure, the cloud, and communications are fueling the Security Transformation.
Of course, Dell Technologies is positioned to lead in all of these. Michael Dell pointed out that the company is the leader in 15 Gartner Magic Quadrants.
Internet of Things
But we are really here to discuss the point of intersection of all this IT stuff with Operations Technology—the Internet of Things. Dell EMC IoT leader Andy Rhodes received prominent positioning during the Day Two Keynotes. As an aside, the Day Three technology keynotes blew away any really cool tech keynotes I’ve seen in the past. Must be nice to have marketing dollars.
By the way, at 5’10” I think of myself of at least average height. Talking with some of the IoT team leaders made me feel like a refugee from the Island of Lilliput. Andy Rhodes, Jason Shepherd, and Keven Terwilliger are 6’5”, 6’’7”, and 6’8” (if memory serves).
News Summary:
• New VMware Pulse IoT Center, Dell EMC IoT Technology Advisory Services simplify IoT deployments
• New IoT partnerships with Atos, Bosch and more
• Dell EMC and VMware, founding members of new EdgeX Foundry Linux Foundation project, join 50 other companies to build open framework for edge computing
New IoT Products and Services
Simplified “Things” Management – The new VMware Pulse IoT Center is a secure IoT infrastructure management solution that will enable customers to have complete control of their connected things. VMware Pulse IoT Center will help customers to more efficiently manage, operate, scale and protect their IoT projects from the edge to the cloud. Dell will be offering VMware Pulse IoT Center as the preferred enterprise management and monitoring solution for Dell Edge Gateways. By plugging Pulse IoT Center into the new EdgeX Foundry, VMware will be able to offer system and device management for the EdgeX ecosystem.
IoT Advisory Services – IoT Technology Advisory Service is a new consulting offer from Dell EMC Services to help organizations determine the key capabilities and architecture required to leverage IoT data (e.g., sensors, beacons, gateways, mobile phones, wearables, connected devices). This information can be used for initiatives such as optimizing key operational processes, reducing compliance and security risks, uncovering new revenue opportunities and creating more compelling customer engagements.
Open Source Framework for Interoperable Edge Computing – The Linux Foundation recently launched EdgeX Foundry, an open source software project chartered to build a common framework and surrounding reference platform for edge computing. It will drive interoperability between proprietary value-added applications and existing connectivity standards. It was started by a community of more than 50 companies such as AMD, Analog Devices, Dell EMC, Foghorn and VMware to enable an ecosystem of plug-and-play components that can be combined to quickly create secure and scalable IoT solutions. Dell contributed more than a dozen microservices and over 125,000 lines of source code under Apache 2.0 to seed the project, additional contributions are already underway from other members. EdgeX Foundry is architected to operate on any hardware, on any operating system and with microservices developed in any application environment for maximum scale.
I have previously written about the Open Source EdgeX Foundry. This, I feel is the most significant of the news. The VMware announcement shows the coming together of the various parts of the Dell Technologies portfolio. People studying IoT for implementation in their companies are considering whether going with a consultant is the wise thing to do. Dell EMC now offers that alternative.
Curated Partnerships
Dell has carefully curated a group of IoT software and services partners through the Dell IoT Solutions Partner and Dell EMC Partner Programs. Many partners have deep, proven expertise in industry-specific IoT challenges, and can help with everything from managing multiprotocol data sources to security to analytics. New partners recently added to the program include Atos, Bosch, GreatBay Software, ForgeRock, IOTech, Mocana and Modius.
Today’s key IoT partner news includes:
• Dell and Bosch have jointly developed an Industry 4.0 jump start kit to help customers implement IoT projects quickly to realize faster ROI. The kit consists of multiple Bosch XDK sensors, a Dell Edge Gateway, ready-to-go use-cases, cloud integration and software, all preconfigured.
• Atos and Dell EMC are working together to build an IoT service management framework, Atos Codex IoT Services, to allow customers to be assured that all users can continuously create value from their connected devices.
[DISCLAIMER: Dell Technologies provides some compensation to support my work. It does not edit what I do.]
by Gary Mintchell | May 2, 2017 | Internet of Things
Internet of Things platforms were all over Hannover Fair last week as I put on more than five miles a day walking checking out as much as I could see.
A few years ago, Industrie 4.0 was unveiled. Last year it was Digitalization. This year Industry 4.o is assumed. Internet of Things is assumed. The race is on for the platform for Internet of Things this year.
One consistent technology, though, that almost all platforms tout–OPC UA. You saw that logo everywhere. [Note: OPC Foundation paid most of my expenses to attend.]
What do I mean by platform? It is the central technology by which everything connects. Most of the time it is what we call proprietary, that is, controlled by one company. It builds a database with connectors to the world. All protocols (they encourage everyone to participate in their own system) bring in data. Sometimes the provider does all the analysis and provides all the applications. Sometimes the provider allows connection to other apps, as well.
I’ve written about the Dell / Linux Foundation effort–after I got through the hype and found the meat. This effort is all open source allowing tie ins with individual company applications.
Microsoft also has an ecosystem or platform that is open with some open source. It relies heavily on OPC UA for data input. Microsoft has its Internet of Things applications but can allow connection to others.
Siemens has its platform called Mindsphere. Siemens is a major proponent of OPC UA.
GE Digital has Predix. It likes OPC UA, too.
SAP is building a platform entirely within its umbrella but encouraging other companies to join it and allows the other apps to run. It also employs OPC UA.
A company I just got a deep dive with for the first time is Exosite. It is a database/analytics developer. At present it is not as broad as the others, but it has the desire to grow to that status.
And then there is Cisco. Yes, the company that builds the network components and OS that control the flow of all your data. Since they know where your data is, it can tap into it and it also has an IoT platform, database, and analytics engine.
By comparison, Rockwell Automation’s Connected Enterprise is totally inbred to Rockwell. I’m sure that in places such as North America where it has huge market share the connectivity works well. It will use some OPC UA next year, so a spokesman told me.
If this is any indication, the Internet of Things has become a “real” thing. Many of these platforms more or less existed before. But Internet of Things adoption obviously is attracting such good things as competition and innovation.
More from Hannover the rest of the week. I’m still compiling notes.
by Gary Mintchell | Apr 27, 2017 | Internet of Things, Operations Management
If enthusiasm means anything there will shortly be what could be described as an Internet of Things operating system. I reported Monday about a press release I received from the Linux Foundation about a “unification platform for interoperability of protocols for the Internet of Things.” As you may have guessed, I was less than impressed with the press release. This is the EdgeX Foundry.
So, I devoted an hour to Jason Shepherd, the Dell EMC director who is the driver putting this all together in Hannover on Wednesday. He brought me to an architecture diagram. I wish they had sent that with the release.
Internet of Things Loosely Coupled
By way of preface for the geeks in the readership, I refer you to a book, Loosely Coupled, by Doug Kaye. This architecture is an example of what Kaye thought was the future of IT and computing—namely loosely coupled applications.
The architecture is a loosely coupled system of data inputs in a variety of protocols, almost an endless variety, if you will, and a loosely coupled system of applications (gray) brought together by a set of services (purple)—which are open source.
In other words, EdgeX describes the Internet of Things ecosystem bringing in data sources from a variety of protocols, storing the data, performing analytics, and serving out for visualization and action. This action is performed within a gateway device, let’s say for argument’s sake, a Dell Gateway product.
And as a side note, it is capable of also doing control. Now don’t get all excited about that, yet, but you and I both know engineers who like to try out new things that may give them some sort of advantage.
Let’s Contextualize
To place this in a context, this is close to what Siemens is doing with Mindsphere. Siemens is trying to be open. This project is also open source, taking it one step further. Except that there is no company of Siemens’ stature on board, yet.
I interviewed a company called Exosite at Hannover, which is the technology behind the Parker Voice of the Machine (to be described later). This company is trying to do a similar thing, but all within its system. That is its competitive edge—debases and analytics.
Similarly, SAP brings data from lots of sources into its cloud where it can perform all the work with its system.
Then there is Cisco. It controls all the data flow on most networks. Tapping into that data source, it also is building a proprietary system that can do much of this.
Rockwell Automation can do some of this, but again, pretty much within its own ecosystem.
Meanwhile, GE Digital has Predix.
All of those have open connectors into their systems, but the systems remain closed within their own walls.
Thinking Radically
Let’s step outside the box for a second and consider what ExxonMobil is trying to do with its attempt to build an open DCS. There are many similarities to what Dell is doing here. I think ExxonMobil would have been further along partnering with Dell rather than Lockheed Martin who is taking it into the big company direction.
Shepherd and team have already amassed 50 companies committed to the effort. He thinks another 25 are close. Consider that, ExxonMobil.
Shepherd also thinks this is finally the ideal opportunity for smaller companies to disrupt the big company hold on the control market.
