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The Industrial Internet of Things—Building Safe & Manageable NetworksDoug Clifton

Schneider Electric

Tom Jackson

Schneider Electric

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Agenda

• An Overview of the Industrial Internet of Things

(IIoT)

• How Its Market Growth will Drive for More

Comprehensive Cyber Security Solutions

• These Topics will be Discussed:- Industrial Drivers

- IT—OT Comparison

- IoT—IIoT Comparison

- Cyber Security Approaches and Solutions

- IIoT Cyber Security Solution Example

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Speakers

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Doug CliftonGlobal Director, ICS Advisory Cyber Security ServicesSchneider-Electric

Doug has more than 10 years of applied cyber security

experience in the area of industrial controls and OT. With a focus

on; Power Generation, Oil&Gas, Waste Water, Chemical, Mining,

Building Management and Smart Infrastructure

Tom JacksonPrincipal Consultant, ICS Advisory Cyber Security Services

Schneider-Electric

Tom has more than 6 years cyber security experience With focus

on cyber security solutions for; Power Generation, Oil&Gas,

Waste Water, Chemical, Mining, Building Management and Smart

Infrastructure

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Similar, but different

Industrial + Internet + OT = IIOT

• There is a line dividing IIoT and IoT

• The differences between IIoT and IoT are not just semantics

• Devices are key IIoT and IoT differentiator

• The real opportunity for IIoT will be a migration path to intelligent devices

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The Things

• Consumer applications will drive the number of connected things; enterprise accounting for the

most revenue

• Automotive sector will show the highest growth rate at 96 percent in 2015

• Industry, manufacturing, utilities, and transportation will be the top three verticals

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Ref: Gartner 2014

0

2000

4000

6000

8000

10000

12000

14000

2013 2014 2015 2020Automotive Consumer

Connected Things by 20203 Billion in 2013

Growing to

25 Billion by 2020

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IT and OT: Foundation of the Future

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IT OT

Purpose Process transactions, provide information, IT security

standards

Control or monitor physical processes or equipment,

Cyber Security regulations

Architecture Enterprise wide infrastructure and applications

(business)

Event-driven, real-time, embedded hardware, and

software (industrial)

Interfaces Operating systems and applications, Unix, GUI, Web

browser, terminal, and keyboard

Electromechanical, sensors, Windows, actuators, coded

displays, hand-held devices

Ownership CIO, finance, and administration departments Engineers, technicians, operators, and managers

Connectivity Corporate network, Internet, IP-based Control networks, hard wired twisted pair, and IP-based,

wireless

Role Supports business applications and office personnel Support controls processes and plant personal

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Similar, but different

IoT vs IIoT

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IoT IIoTDevices IoT includes devices located in consumer or commercial settings:

offices, business, homes

IIoT includes devices located in industrial settings: factory floor,

automation control, HVAC, energy grid

Reliability Moderate requirements: ease of use, short product lifecycles. 99.99-

99.999

Stringent requirements than the consumer IoT: hi-reliability, harsh

environments, long lifecycles. 99.9999-99.99999

Security Require identity and privacy Requires robust security protecting against access

Function Synonymous with functions that benefit end users-human life style Provide basic operational roles and requirements—many are

independent of human intervention

Availability Function in environment of updates, add-ons, apps, charging, and

random rebooting

Requires high availability and uptime. Unscheduled patching and

rebooting is not tolerated

Failure Retry, replace Resilient, fail in place

Connection Connects people to people or people to the internet Peer-to-Peer and M2M (Machine to Machine)

Protocol For the most part is IP reliant Based upon numerous protocols-standards based and proprietary

Market Greenfield-new device uptake is almost immediate Brownfield-new device uptake must be phased in

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IIOT–OT: Industrial Drivers

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Sources: EIA, Globalenergy, EIA, IWMI, MineWeb, Cleantecnica, SmartCities, Cisco, Navigant

Utilities

Building Management

Smart Infrastructure

• Over 175,000 Power Generation plants

• Over 500,000 Waste Water facilities

• Over $2.5 Billion in Building Energy Management

System (BEMS) revenue

• 14 Million Buildings with Management systems

• Over 8 Zettabytes of Datacenter data

(1ZB=100 Trillion Gigabytes)

• Over 150 Million Smart Meters

• Over 100,000 Smart City projects

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IIoT and Cyber Security

• All industries share the need for control automation

• All industries will evolve or gravitate to the IIoT

• All industries will find it harder to be “islands”

• All industries will require a comprehensive cyber security plan based on: Product, Solutions, and Managed Services

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Internet of Everybody (IoE)

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Thousands of Companies

Millions of Devices

Billions of Dollars

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What IIoT will Deliver

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An increase in

the cyber security

attack surface of

industrial control

systems connected

to the IIoT

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So…Is IIOT a Good Thing?

Good

IIoT can improve:

• Asset Health & Uptime

• Operating Performance

• Safety and Risk Management

• Logistics

• Worker Experience

• Business Processes

Challenges

IIoT will require:

• Enhanced security: Security is neither integrated nor portable with IIoT devices

• Increased assessments to determine changes to the risk profile

• Real-time managed security services to monitor increase in endpoint devices

• Robust cyber security solutions to address changing landscape

• Additional trained cyber security professionals

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Source: arcweb.com

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Three approaches

Cyber Security

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Cyber security is defined in most businesses as product-related or services-related. We understand that Products, Solutions, and

Managed Services work together to strengthen a company’s cyber defense position.

Cyber Security

Enabled Product

Cyber Security

Solutions

Managed Secure

Services

• Business Unit Offerings • Addresses the holistic security needs of the client

(Cyber Defense)

• Manage and monitor cyber security

solutions

• Product Cyber Security supports product

development to ensure that Schneider

Electric’s entire Product portfolio adheres to

a common security design core methodology

• Delivers solutions in concert with the Schneider

Electric product suite

• Timely and accurate situational cyber

security information

• Delivered by the Business Unit • Cyber Security Services is client-facing • Provides support for those that lack

the skills or resources to manage their

cyber security solution

• Product Cyber Security is expected by our

clients

• Cyber Security Services are required by our clients • Provide reporting and alarming

functionality and services

• Cyber Security Services drives significant revenue • Support 24/7 coverage

• Delivered by cyber security practitioners

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Cyber Security Corner Stones

1. Asset Identification

2. Electronic Access Controls

3. User Access Controls

4. Patching

5. Anti-Virus

6. Disaster Recovery

7. Logging

8. Advanced Solutions

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Schneider Electric Cyber Security Services Team utilizes their Life Cycle Methodology to develop and deliver a comprehensive

Defense in-depth solution that address your specific cyber security requirements.

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Partnership—Schneider Electric &Intel Security

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Schneider Electric Expands Cybersecurity Capabilities by Partnering with McAfee

This collaboration will enable Schneider Electric customers to add tested and certified application whitelisting capabilities in the management of core offerings.

“The expansion of our security offer to incorporate Intel Security whitelisting capabilities enables Schneider Electric to serve our customers more effectively using a modern and secure critical infrastructure environment.”

—Cyril Perducat, Executive Vice President Software and Digital Services Transformation, Global Solutions at Schneider Electric

Press Release on March 2014

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Example: Building Management without IIoT

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Example: Building Management with IIoT

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Conclusion

1. IIoT will change the cyber security landscape

2. Industrial clients have requirements larger in scope than just secure products alone can provide

3. Our basic approach stays the same and includes:

1. Asset Identification

2. Electronic Access Controls

3. User Access Controls

4. Patching

5. Anti-Virus

6. Disaster Recovery

7. Logging

4. Cyber Solutions in Industrial Automation will become more complex to support IIOT

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