Why Most IoT Projects Fail And how to ensure success with OSIsoft and Cisco Kinetic

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Why Most IoT Projects Fail And how to ensure success with OSIsoft and Cisco Kinetic Presented by Stephen Friedenthal, IoT Solutions Architect

About Cisco Systems, Inc. San Fran

Companies want to derive value from data IoT exponentially increases the amount and types of data 3

Why IoT?

The Challenge How to succeed with minimum risk? 5

Why Most IoT Projects Fail - - - - - - -

A Successful IoT Framework From a Technology Perspective

To get value from data

Customer are challenged!

Cisco Intent-Based Network is needed

But customer challenges remain Complexity of connecting, securing and managing a set of diverse devices A lot of data remains locked inside its sources No programmatic way to move the right data to the right apps at the right time No programmatic way to enforce ownership, privacy, and security policies Cisco Intent-Based Network PI System + Cisco Kinetic + Cisco IOx

An IoT data fabric is needed

A system of software that runs across distributed nodes of end points, network, edge, data centers, and clouds Extracts data Programmatically moves data Enforces ownership, privacy, security Intuitive UI Computes data in optimal location SDK Provides data API for developers

Architecture 14

Cisco End-to-End Integrated Framework 15

Connectivity Extended to Devices PI Connector (Linux) PI Connector (Linux) PI Connector Relay Enterprise PI Server Cisco IR829 router Cisco IOx (Linux) PI Connector (Linux) Cisco IR809 router Cisco IOx (Linux) 16

Connect and Monitor: Cisco and OSIsoft Solution 17

18

Customer Use Cases 19

Pipeline Monitoring COMPANY and GOAL Natural Gas Pipeline and Storage Company Goal: Improving system reliability with real-time predictive analytics Company Logo Picture / Image CHALLENGE Large geographical footprint with diverse communication architecture SOLUTION Deploying PI Connector on Cisco IR-829 with Iox using Fog Director RESULTS Early detection of potential meter and gas quality issues Maintain 15,341 miles of pipeline covering 17 states Eliminate data gaps Require scalable solution for over 3,000 potential sites Locate data buffering at the edge Common configuration for scalable solution Hardened device for harsh environments Reduced data loss Improved bandwidth utilization Cellular backup connectivity

TransCanada Extends PI System Connectivity to the Edge PI Server Collective PI Interface Node Occasional data loss Restrictive interface deployment PI Interface (Modbus) PI Interface (Modbus) PI Interface (Modbus) PI Interface (Modbus) Cisco IR829 router PI Server Collective PI Connector (Modbus) Data buffering no data loss Flexible connector architecture Compression minimize bandwidth Cellular backup connectivity Secured connectivity PI Relay Node PI Connector Relay

Cat Power Systems

System Architecture Enterprise PI Server PI Connector Relay

Solution Benefits Less Hardware-> Greater Uptime Integrates with OSIsoft ecosystem Fast onboarding & management of installations via Cisco Kinetic Secure VPN remote access to connected devices and PI Connector 24

Vehicle Reliability Monitoring COMPANY and GOAL Public transportation system in Davis Fleet of 50 Natural Gas Buses All drivers/supervisors are students Company Logo Picture / Image CHALLENGE - 142 road service calls over on ~50 buses last year - Disruption of service - Potential safety incidents Many unplanned stoppages Customer inconvenience Stranded riders could potentially get in to dangerous traffic situations SOLUTION - Install on board monitoring infrastructure to feed a PI System - Create a dashboard that shows the real-time location/attributes of the bus Cisco IR-829 Router with 4G-LTE PI Connector for Modbus PI Vision Display Esri ArcGIS Integration RESULTS - Monitor buses in real time - Collect attributes that can help maintain the buses - Engine data, fault codes, GPS - Visualize the data to help the maintenance team Near real-time feedback Identified several false positives Reduction in non-required service

Simple Configuration with Cisco IoT Data Connect - Dashboards integrate real-time data and Geospatial context 26

IoT and Security 27

Anatomy of an Attack [video removed] 28

Recent Events: Friday May 10, 2017 While much is known, the situation is still active and tenuous, affecting many organizations the world over, reportedly including major telco s, hospital systems and transportation providers such as FedEx. The attack has purportedly spread to 230,000 computers across 150 countries around the world.

Why Most IoT Projects Fail PIT-Focused Attack: Target / Home Depot No stores were shut down No customers were refused No sales were impacted Yet the cost of the Target breach is now beyond $300 Million OT-Focused Attack: German Steel Plant Factory damaged automation destroyed No personal injuries reported $20-30 Million in direct damage to plant process equipment Plant still shut down ultimate cost???

Enterprise Network Security Trends 63M new devices attaching to enterprise networks per second in 2020 Complexity Attacks take 100 days to resolve on average

Enterprise Network Security Trends Advanced attacks take 170 days to detect Complexity 76% of IT professionals say a lack of visibility is their biggest challenge in addressing network threats Capabilities

Enterprise Network Security Trends The average total cost of a single data breach is $4M Complexity Capabilities

Cisco Enterprise Network Security Trustworthy Systems Security embedded into hardware and software by design Network as a Sensor Visibility and analytics across the extended enterprise, industry-leading threat intelligence Network as an Enforcer Consistent threat protection and remediation across the network Secure your digital network in real-time, all the time, everywhere

Encryption Is Changing The Threat Landscape Straight line Projection 50% 60% 34% 41% 16% 20% 19% 22% 23% 23% 25% 27% 30% FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 2017 2019 Source: Thales and Vormetric Extensive deployment of encryption Percent of the IT budget earmarked for encryption

Network Threats Are Getting Smarter And Finding Ways To Stay Hidden Percentage of Malware 81% 41% 64% 15% 10% Jul Aug Sep Oct Nov Dec Organizations have been victims of a cyber attack Attackers used encryption to evade detection Cannot detect malicious content in encrypted traffic Based on Cisco ThreatGrid Analysis 200days Industry Average Detection Time for a Breach 60days Industry Average Time To Contain a Breach $3.8M Average cost of a data breach New Attack Vectors: Employees browsing over HTTPS: Malware Infection, Covert channel with C&C server, Data exfiltration Employees on internal network connecting to DMZ servers: Lateral propagation of encrypted threats

Enhanced Network as a Sensor Industry s first network with ability to find threats in encrypted traffic without decryption Avoid, stop or mitigate threats faster then ever before Real-time flow analysis for better Encrypted Traffic visibility Non-Encrypted Traffic

IoT Security Best Practices

Take Aways Projects have a high degree of success Relatively short time get lab and field trials completed Use Cases build upon capabilities that you already understand Build security into the solution from the beginning. Don t try to boil the ocean. Quick wins Clear ROI Don t go it alone 39

Stephen Friedenthal stfried@cisco.com IoT Solution Architect Cisco Systems, Inc. 40

Questions Please wait for the microphone before asking your questions Please remember to Complete the Online Survey for this session State your name & company 41