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Most of the tech hype at the big SXSW conference this week is definitely anything and everything around virtual reality, but Internet of Things has crept into today's chatter among attendees-in-the-know given reports that the Internet of Things (IoT) smart products platform, Evrything, just secured a solid $24.8 million in Series B funding. This comes on the heels of IBM's recent announcement about a big IoT move that will explore how cognitive and IoT technologies will entirely transform industries. IoT is heating up, for sure. But this particular equation from IBM Watson, unlike Evrything, warrants an even closer look given the players involved and the massive impact the synergies will create in the IoT space in both the short and long term. If it succeeds, our everyday lifestyle as we know it will dramatically change forever .
It's no secret that IBM's question-answering computer system Watson has come under fire lately after a harsh report from auditors at the University of Texas said that a recent project cost more than $62 million but that tech company had not met its goals (though Watson achieved 90% accuracy in lung cancer decision support). But the company's recent opening of its brand new $200 million global headquarters for its Watston Internet of Things business, may start to ensure more victories than defeats. Based in Munich, Germany, this center is intended to specifically accelerate innovation in IoT via collaboration with select clients and partners.
Bret Greenstein, vice president, IBM Watson IoT Consumer & Digital Business explains, "We selected Germany as center of gravity on this IoT endeavor due to the number of tech start-ups, automotive companies, universities, and their focus on Industrie 4.0." He continues "Germany is also the leading country regarding privacy and technology, so if the approach works in Germany, it can work almost anywhere. Our view is that IoT will only keep moving forward so there will always be a level of high-expertise and insight. A lot will happen in this Center that will create impact all over the world but will actually be showcased there."
Here’s how. IBM will execute various projects with different leading companies and share expertise, research, and more. The intent is to maximize collaboration given that developing IoT is very challenging but even more challenging when it is solely attempted by just one entity. An example of this can be witnessed via the cognitive assistant in AI (artificial intelligence) cars such as those from BMW. "Our intent is to not only create something exclusive to BMW, " says Greenstein, "but also to benefit the auto industry, overall, such as true cognitive expertise in topics that matter to both owners and passengers."
IBM's partners in collaboration are either the company's current customers or those who aspire to be. Greenstein says that IBM is working with the leading companies in each business sector to provide deep analytics, manage massive amounts of data and helping them to build IoT solutions and, essentially, transform their businesses with IoT.
However, none of this work is easy. Security is a huge concern. Perhaps, one of the main concerns. "Devices with default passwords create the significant vulnerability." says Greenstein. "The ability to update firmware - this is all critical. Most companies will stumble on these points. Companies like IBM put a premium on ensuring that our clients own their own data and can decide and manage how it is used."
IBM's competitive edge should only be strengthened by Watson given the entity's various capabilities. "You see, IoT works more efficiently when there is actually an undertstanding of the user," explains Greenstein. "Therefore, Watson is being used to help better understand natural dialogue, mood, and intent- not just buttons. Watson also excels at recognizing patterns." The cognitive computer also assists with better image recognition which is crucial for camera integration and IoT. Examples would be microphones that actually "hear", cameras that actually "see." If you think that sounds a bit spooky, it's probably because it is. Though for much of the Millennial demographic, this capability is already being touted in conversation. In fact, this demographic will probably be responsible for adoption rate and speed. The most successful companies will create compelling communications strategies particularly that feel organic to and for that population segment. But no matter what the demographic, trust will be an issue. This is something about which IBM is adamant because it's a crucial space with a number of not only technical but legal hurdles and issues.
According to Bryan Wheelock, Principal at Harness Dickey, "While existing patent law is able to protect the devices forming the skeleton of the IoT, it is not up to the task of protecting the brains of the system – the software that will make it work. While software related to improvements to computer functionality remain patentable, the exception for abstract ideas in the Supreme Court’s Alice decision, has created uncertainty over the protectability of other types of software." He continues, "Although not all software inventions are directed to unpatentable ideas, the courts have been reluctant (and perhaps unable) to define the limits of patentability. The failure of the patent community to resolve this important issue jeopardizes the incentives that could speed the development of the IoT, and encourages developers to rely on secrecy and proprietary systems that could further impede the development of the IoT."
While this demonstrates there may still be much to consider, IoT is already actively expanding to transform operations, features in products, and new forms of user engagement. And the more companies see the benefits, the more rapid the market introductions will be. According to Greenstein, “Companies that embrace IoT are saving money, delivering new value in existing products, and creating new classes of products that engage directly with users and can even be delivered 'as a service.' The arena is only just getting started."
