Welcome to the internet of things

Welcome to the Internet of Things, by the way privacy is dead…

http://www.moddb.com/members/na322650/images/dead-parrot-sketch1

Agenda

• What is the Internet of Things (IoT)

• Business models & potential market size

• Drivers for IoT

• Security and Privacy

Feb 2015 © Kate Carruthers | katecarruthers.com 2


Objects are becoming embedded with sensors and gaining the ability to operate & communicate independent of human intervention.


The resulting information networks promise to create new business models and disrupt existing business models.

Characteristics

Distributed

Peer to peer

API based

Network neutral Feb 2015 © Kate Carruthers | katecarruthers.com 5


Connected devices are transformed from a single purchase product into a service that generates recurring income.

IoT value is not in the devices, but in new services related to

the devices.

New business models

• Open models

• Collaboration & loose confederations

• Agile, change ready organisations

• Restructured supply chain

• Mergers & acquisitions


Ubiquitous connectivity


Cisco says US$14 trillion IoE value

1) asset utilization (reduced costs) of $2.5 trillion

2) employee productivity (greater labor efficiencies) of $2.5 trillion

3) supply chain and logistics (eliminating waste) of $2.7 trillion

4) customer experience (addition of more customers) of $3.7 trillion

5) innovation (reducing time to market) of $3.0 trillion


CISCO White paper: Embracing the Internet of Everything for your Share of $14 trillion

http://www.cisco.com/web/about/ac79/docs/innov/IoE_Economy.pdf

Market signals - 2014

• Google bought Nest for US$3.2B Jan 2014

• Google & Nest bought Dropcam for US$555M

• Samsung bought SmartThings for US$200M

• Vodafone bought Cobra Automotive for £115M

• Zebra Technologies bought a unit of Motorola for US$3.45B


http://techcrunch.com/2014/01/13/google-just-bought-connected-device-company-nest-for-3-2b-in-cash/

http://techcrunch.com/2014/06/20/google-and-nest-acquire-dropcam-for-555-million/

http://techcrunch.com/2014/08/14/smartthings-acquired-by-samsung-for-around-200-million/

https://m2m.vodafone.com/cs/m2m/insight_news/2014-06-18-vodafone-completes-acquisition-of-cobra-automotive-technologies



http://www.cbronline.com/news/tech/networks/networking/why-zebras-buyout-of-motorolas-enterprise-business-will-fuel-iot-growth-4216325

http://www.cbronline.com/news/tech/networks/networking/why-zebras-buyout-of-motorolas-enterprise-business-will-fuel-iot-growth-4216325

Market signals - 2014

• global survey of 1400 software developers

• 17.1% working on IoT apps

• 23% expect to begin work in next 6 months


Evans Data Corporation Survey July 2014

http://www.evansdata.com/press/viewRelease.php?pressID=212

Driven by convergence

• Ubiquitous comms networks

• Mobile connectivity

• 3D printing

• Sensor networks

• Big data > drawing useful inferences

• Peer to peer networks

• Cloud computing

• Artificial intelligence

• Commodity sensors

• Software defined networks


Fuelled by app ecosystem

“Between 2008 and 2017, Google Play and Apple’s App Store will be responsible for a mind-blowing number of mobile app downloads: 350 billion.” Feb 2015 © Kate Carruthers | katecarruthers.com 13

Source: http://www.mobilemarketingwatch.com/the-decade-of-350-billion-app-downloads-26932/

http://www.mobilemarketingwatch.com/the-decade-of-350-billion-app-downloads-26932/
















Allflex DNA tags

http://www.allflex.com.au/our-products/cattle-products/product/dna-tags




Industries

Financial services

Automotive

Technology

Entertainment

Retail

Healthcare

Hospitality

Industrial

Power & utilities

Energy & mining



Driverless trucks the next big thing in WA's Pilbara, ABC 25 Apr 2014, 3:13pm

http://www.abc.net.au/news/2014-04-25/onlpautomine225040jpg/5412864





Source: http://readwrite.com/2014/04/30/connected-home-hackers-stop-yelling-at-babies-foscam#feed=/tag/internet-of-things&awesm=~oEe6yipkTkz40o


Last August, a hacker infiltrated a wireless camera owned by the Gilbert family, living in Houston, Texas. The stranger took control of the unit and used it to scream obscenities at a two-year-old toddler. Fortunately, the hearing-impaired child didn’t have her cochlear implant turned on at the time, otherwise she would have heard the stranger yelling, “Wake up Allyson, you little slut!”

http://readwrite.com/2014/04/30/connected-home-hackers-stop-yelling-at-babies-foscam#feed=/tag/internet-of-things&awesm=~oEe6yipkTkz40o
























Bloomberg, Data Breaches in the US, at 4 Sep 2014

http://www.bloomberg.com/infographics/2014-08-21/top-data-breaches.html


• 3rd party HVAC firm attack vector

• Security software disabled

• PCI DSS didn’t save them


Bloomberg, Oct 2014

http://www.bloombergview.com/articles/2014-10-06/why-the-jpmorgan-hack-is-scary

JP Morgan

• Sarbanes-Oxley Act (SOX)

• Payment Card Industry Data Security Standard (PCI DSS)

• Gramm-Leach-Bliley Act (GLB) Act

• Electronic Fund Transfer Act, Regulation E (EFTA)

• Free and Secure Trade Program (FAST)

• Fair and Accurate Credit Transaction Act (FACTA), including Red Flags Rule

• Federal Rules of Civil Procedure (FRCP)



Traditional approach to perimeter security


Bot-herders can launch DDoS attacks from dryers, refrigerators, other Internet of Things devices

Network World Sep 2014

http://www.networkworld.com/article/2687169/security0/bot-herders-can-launch-ddos-attacks-from-dryers-refrigerators-other-internet-of-things-devices.html

Feb 2015 © Kate Carruthers | katecarruthers.com 26 Proofpoint Uncovers Internet of Things (IoT) Cyberattack, January 16, 2014

“The global attack campaign involved more than 750,000 malicious email communications coming from more than 100,000 everyday consumer gadgets …”

http://investors.proofpoint.com/releasedetail.cfm?ReleaseID=819799







Feb 2015 © Kate Carruthers | katecarruthers.com 27 Proofpoint Uncovers Internet of Things (IoT) Cyberattack, January 16, 2014

“… such as home-networking routers, connected multi-media centers, televisions and at least one refrigerator”









It’s “often impossible to patch the software or upgrade the components to the latest version.”

Bruce Schneier, The Internet of Things Is Wildly Insecure - And Often Unpatchable, Wired, Jan 2014

http://www.wired.com/2014/01/theres-no-good-way-to-patch-the-internet-of-things-and-thats-a-huge-problem/









“Often, the complete source code isn’t available. Yes, they’ll have the source code to Linux and any other open-source components.”











“But many of the device drivers and other components are just ‘binary blobs’ - no source code at all.”











“That’s the most pernicious part of the problem: No one can possibly patch code that’s just binary.”










Privacy

“If it was dead, they wouldn't be fighting so hard to kill it, all over the world.”

- Peter Watts



http://www.abc.net.au/news/2014-11-04/berg-the-jig-is-up-on-data-retention-plans/5864432

http://www.theguardian.com/uk-news/2015/jan/22/snoopers-charter-changed-version-pass-before-election

Privacy

Privacy by Design:

embedding privacy into IT, business practices and networked infrastructures right from the outset

https://www.privacybydesign.ca




Consumer privacy

• Pervasive computing

• Personalisation

• Customisation

• Convenience

• Lack of understanding

• Meaningful consent


Oops we spied on your wifi


http://www.cnet.com/news/google-oops-we-spied-on-your-wi-fi/


Time, Sep 2014

http://time.com/3445092/free-wifi-first-born-children/

Spy TVs…


http://www.tomsguide.com/us/lg-tvs-spying-confirmation,news-17887.html



“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”- Amara's law

http://en.wikipedia.org/wiki/Roy_Amara

Kate Carruthers

UNSW Australia

Sydney

[email protected]

Twitter @kcarruthers


mailto:[email protected]

https://twitter.com/kcarruthers

Documents

Welcome to the internet of things