Internet of Things (IOT) What It Is and How It Will Impact State Pools

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1 NLC Mutual Insurance Company 660 Capitol Street NW Suite 450 Washington, DC Internet of Things (IOT) What It Is and How It Will Impact State Pools MAY 19, 2017 RYAN DRAUGHN, DIRECTOR OF INFORMATION TECHNOLOGY, NLC MUTUAL STEVE READ, CLOUD ARCHITECT, MICROSOFT

2 The network of physical objects that contain embedded technology to communicate and interact with their internal states or the external environment. Source: Gartner IT Glossary

3

4 Things Connectivity Data Analytics 25 billion Connected things by 2020 Gartner

5 Public Safety Smart Cities Education Healthcare Environment Defense IoT In Government $4.6 Trillion savings in operational costs Cisco

6 According to a recent IoT survey 73% Of the companies surveyed are currently active in IoT 60% Of those working on IoT are aiming to grow revenue and profits 50% Reduction in downtime with predictive maintenance Source: Redefining the Connected Conversation, IoT Trends, Challenges & Experience Survey. James Brehm & Associates, 2016.

7 Chillers now run 9x faster than unconnected equipment, avoiding more than $300,000 in hourly downtime costs Gathers data from sensors and systems to create valuable business intelligence and reduce downtime by 50% Cutting fuel usage by 1 percent could save $250,000 per plane per year Improves access to production and supply chain data worldwide, reducing downtime costs by as much as $300,000 per day

8 Innovation at work real world IoT use cases Street sweepers Aircrafts Auto Cows Fryers Electric charging stations Dogs Power plant Buses Internet of Things Oil equipment Factory floor Vending machines Racing Buildings Elevators Trucks Oil distribution Surveillance Power tools Mining equipment Vaccine dispensers Postboxes Smart meters Smart grids Engines Medical devices

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10 Devices, sensors, and actuators with the ability to collect and share data

11 30 Azure regions around the world AZURE REGIONS

12 IoT in Public Safety Demo the Connected Officer Law enforcement agencies are investing in IoT technologies that act as force multipliers Gunshot Detection Camera Systems License Plate Readers Smart Weapons / Holsters Drones

13 Azure IoT Suite Device Connectivity & Management Data Ingestion and Command & Control Stream Processing & Predictive Analytics Workflow Automation and Integration Dashboards and Visualization Preconfigured Solutions Remote Monitoring Predictive Maintenance

14 Securely connect millions of devices... Over a secure internet connection... To Microsoft Azure built with security from the ground up Device Security Device Provisioning and Authorization Connection Security X.509/TLS-Based Handshake and Encryption Cloud Security Azure Security Center Azure Active Directory Key Vault Policy-Based Access Control

15 Flight Monitoring Global Coverage Efficiently track and monitor planes globally while reducing cost and time. Analytics Use near real-time performance telemetric data from planes globally in flight to track their health and location. Innovation Provide a near real-time global alerting system.

16 Predictive Maintenance Efficiency Utilize efficient resource management, resulting in time and cost savings. Servicing Use performance telemetric data from connected devices to schedule servicing and innovate on design. Differentiation Provide differentiating customer experiences based on the telemetric data about customer usage.

17 Operations Maintenance Acquire Efficiently capture real-time telemetric performance data from globally located smart-connected devices. Analyze Engage global teams to analyze, collaborate, and make decisions on data. Control Control the state and activities of the devices remotely using modern applications.

18 Highway Traffic Flow Analysis C B A Optimize road network Public transportation 50% of traffic flow Higher road pricing for shorter trip

19 IOT Impact pools from IT operational standpoint

20 IOT Considerations for Pools Data Storage Massive amounts of information collected How are you equipped to store? Data Security Information coming from non-traditional means Who will have access? How will you protect any sensitive information? Data Protection Essential information may now become part of business operations How will you ensure it is categorized and prioritized in your Disaster Recovery plans.

21 The Cloud plays a big role Provide massive economies of scale to drive down data storage costs. Many have developed PRIVATE cloud offerings that: Enable data to not be co-mingled with other organizations. Meets individual customer demands for retrieval practices. Adheres to specialized compliance or regulatory demands (PII,HIPAA,PCI) Ensure storage inside of continental US. Allow for specialized service providers to develop software platforms built on their data storage foundation.

22 Types of Clouds Private Clouds Public Clouds Hybrid Clouds

23 Public Clouds A public cloud is one in which the services and infrastructure are provided off-site over the Internet. These clouds offer the greatest level of efficiency in shared resources; however, they are also more vulnerable than private clouds. Ex. Gmail, Dropbox, SaaS Applications Source:

24 Private Clouds A private cloud is one in which the services and infrastructure are maintained on a private network. These clouds offer the greatest level of security and control, but they require the company to still purchase and maintain all the software and infrastructure, which reduces the cost savings. Good when data privacy and security are crucial. Source:

25 Hybrid Clouds A hybrid cloud includes a variety of public and private options with multiple providers. By spreading things out over a hybrid cloud, you keep each aspect at your business in the most efficient environment possible. The downside is that you have to keep track of multiple different security platforms and ensure that all aspects of your business can communicate with each other. Your company wants to use a SaaS application but is concerned about security. Your SaaS vendor can create a private cloud just for your company inside their firewall. Source:

26 Landscape in 2017 Hybrid Clouds & Industry trends

27 Business usage of SaaS, Hosted and Cloud Solutions becoming commonplace Google Docs Office365 Azure/Onedrive Amazon Web Services

28 Hybrid Clouds leading the way Former public cloud providers offering robust solutions for specific industries concerned with privacy and security. Ex. Microsoft Azure Government Cloud

29

30 Major Vendors will continue to push customers to their SaaS offerings Claims and Policy Management Application Vendors are no exception

31 The platform is not the end, it is the bottom. Machine learning is on top and will be the technology that will drive the transformation. NoOps will become mainstream.serverless architectures will be the next wave of computing. Beyond the Cloud Many industry experts are predicting machine learning, serverless environments, and a focus on data will be the future of cloud computing over the next several years. Eric Schmidt, CEO of Google states, the amount of innovation we will see in the next five years will exceed all the innovation we ve seen in all prior years. Schmidt went on to make a few more predictions:

32 Questions?

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