IT/OT Convergence – The Impact from the Industrial Internet of Things
Without question, the number of connected sensors and devices on your IIoT network are going to increase, and also without question, the volume of data created by these devices on your IIoT network are going to increase as well. Both increases are intended to improve operational efficiency and streamline business processes. As a result, your Information Technology (IT) and Operational Technology (OT) departments will likely need to adopt new strategies. An increasingly popular strategy is IT/OT convergence. The Bandwidth Burden For many industries, SCADA and M2M networks have historically used serial communications for operational networks. This has changed and is changing for many. As networks transition from serial to Ethernet communications, data is now freed for routing to any business system. There is a new twist for SCADA, M2M and now IIoT networks that have limited bandwidth capabilities. With more business systems needing critical data to improve business process, utilization of bandwidth on networks with already-limited bandwidth is also increasing based on the traditional Poll/Response or Request/Response model. To reduce the bandwidth burden, systems are now transitioning from Poll/Response operation to a Publish/Subscribe model. There are several benefits to the Publish/Subscribe model. Sensors or devices in bandwidth limited networks can publish data when events change or select criteria are met. This reduces the demand for network bandwidth in two ways; 1) there is no prerequisite Poll message, and 2) devices publish when needed. Publish data is routed to a Broker or Publish/Subscribe server that operates on networks where network bandwidth is not a limitation so any number of subscribers can subscribe needed data without burdening the IIoT network. While the Publish/Subscribe model is a significant improvement to IIoT network efficiency, it is not a panacea for all operational information. Network monitoring systems, e.g. SNMP based systems, will still need to poll devices to gather operational, performance and prescriptive data; essential for proactively maintaining an efficient and operational IIoT network. Secure Devices to Support Convergence Newer sensors and devices are also being designed with security in mind because no legitimate manufacturer wants their IIoT device to be part of a DDoS attack, as we saw in 2016 with the Mirai DDoS attack. While IIoT device security services and features are rapidly improving, it is still incumbent on OT and IT organizations to: Train personnel on network security because the human element can still be the weakest part of any network, e.g. phishing emails, Deploy networks with Defense in Depth so there are numerous barriers to obstruct and deter entry with timely audit trails to identify entry, and Perform periodic Risk Assessments and implement action plans. SCADA, M2M and IIoT networks are operating more as IT networks thanks to the close work between OT and IT groups and their convergence. Want to learn more on this topic? Join my presentation at the ENTELEC conference on Thursday, April, 27, 2017 at 2 p.m.
What’s New in IIoT
Industrial IoT (IIoT) is making waves as we inch closer to the end of the first quarter of 2017. Recently, Network World and Forbes, published articles exploring the proliferation of Smart Sensors deployed for Edge networks. We are starting to see more coverage addressing the big challenges of IIoT, as well as the big opportunities. Other, IIoT-focused publications continue to highlight the latest mega-trends and research from leaders in the IIoT trenches. Recent IIoT Headlines Four Artificial Intelligence Challenges Facing the Industrial IoT By @AAllsbrook | Published on @Forbes “Companies building IoT devices are solving this challenge by using gateways, also known as edge-based processing, to connect to cloud-based IoT platforms. This enables the machines to get data to the internet. However, connecting devices isn’t as easy as updating software; instead, it’s an investment in retrofitting old machines, replacing existing equipment, and enabling a workforce to leverage this equipment.” 5 Things to Think about for Industrial IoT Readiness By @ryan4francis | Published on @NetworkWorld “In order to achieve the full potential of the IIoT, the gap between these two cultures needs to be bridged so that the competing priorities of IT and OT are met. We’re beginning to see the emergence of “industrial technologists,” who bring a combined IT/OT perspective to the enterprise. These “industrial technologists” understand that for IIoT to be a reality, “always on” availability needs must be met. Because they live in both worlds, they play a key role in meeting both OT and IT priorities.” 3 Keys to Financial Success in the Industrial Internet of Things By @Scott_Nelson19 | Published on @CIOonline “One of the most frequent misperceptions about the IIoT is that it is all about the machines. Traditionally automation saves cost by reducing the number of people required to operate the line. The machines are important, but today operational improvement, particularly of legacy systems, comes from leveraging and facilitating human knowledge and action.” IoT Edge Shifts Data Gravity in the Enterprise By @AAllsbrook | Published on @iotagenda “But the internet of things is changing this gravitational constant in our technical universe. As IoT matures, the black holes of data gravity we have been placing into clouds will be ripped apart by millions of smaller data planets. These smaller planets will be located in our factories, warehouses, buildings, homes and everywhere else IoT runs to make data actionable.” Smart Grid: Overcoming Data Exchange to Increase Efficiency By @S_Allen_IIoT | Published on @SmartDataCo “As sensors bring connectivity to more endpoints than ever before, utility decision makers are able to obtain detailed data for Advanced Metering Infrastructure (AMI) and Distribution Automation (DA) networks. With rugged wireless solutions, the sensor data is readily available in real-time for IT decision makers. The unrestricted access to data from all network endpoints forces decision makers to shift their focus from Big Data to Smart Data – the data that matters most to the business. It also drives the need for real-time analytics in order to streamline operations. This not only simplifies the convergence issue, but it drives Smart Grid efficiency.”
Smart Grid: Overcoming the Challenges to Increase Efficiency
Recent research estimates that the Smart Grid will be a $120 Billion industry by 2020. As Industrial IoT (IIoT) drives digital transformation for utilities, there are a fair share of challenges and opportunities facing the Smart Grid industry today. To keep up with rapid growth and new technology that is shaping the utility markets in particular, Smart Grid decision makers must continue to improve efficiency. This allows the organization to leverage better data and make smart business decisions that align with an increasingly connected infrastructure. The Convergence Challenge In utilities markets, the IT/OT divide is rapidly shrinking, revealing significant challenges between the two groups. OT and IT each come to the convergence line with functional and operational differences, yet the changing technology landscape makes it impossible to avoid the inevitable meshing of the two formerly disparate organizations. As Smart Grid decision makers adjust to this shift, strong communication between teams will be essential – as well as careful selection of technology. For example, if utilities can work to integrate their legacy systems on the OT side with the more modern IT systems through a carefully selected communication solution, the Smart Grid will become more efficient, leading to better business decisions, as well as improved system operations and overall visibility. Going Digital IT/OT convergence, coupled with the new digital landscape has also driven Smart Grid organizations to reorganize under IT and address new technology challenges from a jobs perspective. Utilities are facing an ageing, traditional workforce on the OT side coming head-to-head with a new digital-centric workforce on the IT side. For Smart Grid organizations, it is essential to find the balance between hiring new technology savvy talent and nurturing existing staff. IoT will continue to drive automation, as Smart Grid decision makers either upgrade their legacy systems or figure out how to connect existing ones. We may see an increase in privately funded secondary education programs designed to create a more skilled workforce. If decision makers embrace the inevitable shift to digital, they will not only see the impact on efficiency, but they will stay competitive in an IoT driven market. Smart Sensor Boom IoT sparked a digital technology shift that resulted in the proliferation of Smart Sensors. Now utilities are able to monitor and transfer critical data from any asset – from the network Edge back to the central office. The demand for sensors hasn’t slowed – research is pointing towards continued and substantial growth in the Smart Sensor market between now and 2021. As sensors bring connectivity to more endpoints than ever before, utility decision makers are able to obtain detailed data for Advanced Metering Infrastructure (AMI) and Distribution Automation (DA) networks. With rugged wireless solutions, the sensor data is readily available in real-time for IT decision makers. The unrestricted access to data from all network endpoints forces decision makers to shift their focus from Big Data to Smart Data – the data that matters most to the business. It also drives the need for real-time analytics in order to streamline operations. This not only simplifies the convergence issue, but it drives Smart Grid efficiency. There are many factors contributing to the efficiency of the Smart Grid. While some initially present themselves as challenges, increasing connectivity and digital transformation give decision makers better data, connect more field assets and enable more opportunities to benefit the business.
News Round-up: Wireless and Ethernet
As the Industrial Internet of Things (IIoT) drives the production of connected devices, wireless and Ethernet-based technologies have become an important piece of the connectivity conversation. Entire industries are making digital transformations and it’s changing the way businesses operate. There are billions of IoT devices in service and development continues to ramp up. Recently, we’ve seen several wireless and Ethernet technologies headlines in the news. Wireless and Ethernet News Is Ethernet Coming to the Network Edge? By David Greenfield | Published on @automationworld “We’ve tarBygeted a small scale, single-chip processing solution (to bring Ethernet to industrial edge devices) by reducing processor speed, memory and RAM size, reducing the interconnection complexity from processor to network interface, and reducing the pin count and complexity of the network interface,” said Weingartner. Essentially, “we’re bringing MAC into the PHY (the physical layer of the OSI model which connects a MAC to a cable), which is what Ethernet is all about. Doing this opens up possibilities not just for new implementations, but for brownfield applications as well.” Wireless Electric Cars About to Hit the Road By @robnikolewski | Published on @sdut “What’s called dynamic charging foresees a future where vehicles charge themselves as they drive. Using coils embedded in roads, EVs would refuel as they stay in transit, creating their own self-perpetuating electrical loop. It’s similar to the way some mobile devices get charged.” The Ethernet Ecosystem Today is Driven by Applications, not Speed Alone By David Chalupsky | Published on @networks_asia “For many years, Ethernet evolution was characterized by the “need for speed” as networks and data centers sought higher and higher throughput. But over time, Ethernet has found its way into applications unforeseen by the developers of the original specification, resulting in a broad and varied Ethernet ecosystem. Today the desire to bring the advantages of Ethernet into new applications necessitates a new approach where the needs of the application are considered first and foremost in defining new Ethernet incarnations.” Actualizing the Internet of Things Starts with Wireless By @robrueckert | Published on @TechCrunch “The most promising of wireless power technology seems to be radio frequency. With its apparent lack of serious problems and its unique strengths, radio frequency has the greatest long-term potential to become the market’s leading source of wireless power to fuel the Internet of Things. No significant evidence exists depicting radio frequency as posing a threat to humans. The human body consists mostly of water and radio waves do not transmit energy through water. Radio frequency is also highly configurable. Devices sending and receiving radio frequency power can easily be equipped with regulators, enabling control of how much power will be emitted and received.”
IoT Spurs Wireless and Ethernet Technology Growth
In 2017, we are more connected than ever before. From a consumer standpoint, our homes are smart – they can change temperature based on our presence or preferences; our cars act more like computers; we can monitor our nannies from our computers at work; and, we can remotely lock our doors –just to name a few. This growth in connectivity isn’t limited to the consumer realm though – it has impacted the vast majority of industrial applications as well. Our critical infrastructure is becoming more connected to conquer traffic management problems, monitor the environment and improve manufacturing. Digital technology is no longer a “nice to have” – it’s a necessity for optimal business operations and we see many industries turning to wireless solutions. Chances are that even the most remote oil pumpjack sitting 30 miles away from the nearest highway has several connected devices onsite and it is probably using wireless technology to control, monitor and connect. It seems that wireless and Ethernet technologies continue to have an important place in our increasingly connected world. The Future Looks Good for Wireless Smart Industry recently posted an article reviewing some statics provided by HMS that demonstrate the growth in wireless and Ethernet devices as the demand for connectivity continues to grow. In the article, Anders Hansson cites new big trends such as the Industrial IoT (IIoT) and Industry 4.0 as drivers behind the demand for more wireless devices. Here are some of the key statistics shared that demonstrate the demand and growth: Industrial Ethernet is growing faster than previous years with a 22 percent growth rate. Ethernet now makes up for 46 percent of the global market, compared to 38 percent last year. Wireless technologies are growing by 32 percent and now accounts for 6 percent of the total market. Fieldbuses are still the most widely used type of networks, with 48 percent of the market. Industrial Ethernet and wireless combined now account for more than half of the market at 52 percent. It will be interesting to see how the technology landscape is impacted by the deployment of more wireless technologies over time. How are you using wireless and/or Ethernet technology for your connectivity needs? Do you expect to use more wireless technology in the next six months to a year?
IIoT Apps are Brewing
General Electric recently published a piece with three important reasons software developers should focus on the industrial Internet of Things (IIoT). It cited the fact that IIoT apps can solve real-life problems in our cities, provide the opportunity for more than 18.5 million developers to advance digital infrastructure, and justify the big investments in IoT. FreeWave on App Development In our 2017 prediction series, we also highlighted the emerging opportunity for IIoT app development. We believe that IIoT app development will start to outpace consumer app development in 2017. IoT app development can play a significant role in driving Smart Data over Big Data for mission critical use cases. Organizations need to get the data they need when they need it, and new applications at the Edge can help send the right data to the right people. We also see a huge business opportunity for developers: the opportunity to leverage cybersecurity applications and the need for business apps that will coincide with IIoT apps to meet standards and interoperability challenges. Although it is early in the year, we’ve already begun to align with our prediction through our R&D efforts here at FreeWave. Recently we partnered with an app development company to offer something new to our customers. New Apps at the Edge FreeWave’s new partnership with Systech offers an industrial Tank Level Control application that resides on and executes from FreeWave’s ZumLink Industrial IoT (IIoT) Programmable Radio for edge networks. The new application was developed by Systech for FreeWave and features an easy-to-use “ITTT (If This Then That)” process control programming interface that will control analog, digital and RS485 sensors linked to the ZumLink programmable radio. The FreeWave ITTT App is designed for a user-friendly experience and requires no previous programming knowledge or practice. It is ideal for M2M and IIoT use cases at the access layer and will perform automated Sensor-2-Server (S2S) functions to streamline operations. We are watching IIoT app development closely and will certainly have more advancements and announcements in relation to our own journey with bringing apps to the ZumLink IIoT Programmable Radio. What kinds of IIoT apps would you like to see?
IoT News Roundup Topics of the Week: Big Headlines in Early 2017
The Internet of Things (IoT) continues to drive headlines in early 2017. It seems like every day we are seeing a flow of news stories about a more connected world. We’ve been watching some of the IoT and Industrial IoT (IIoT) headlines across the trades and have compiled some of our recent favorites. IoT News Headlines Forbes: HR can use big data to drive engagement, predict success By Valerie Bolden-Barrett| Published on @hrdive “Forbes Human Resource Council says HR can use big data in the same manner as key performance indicators and retention metrics to carry out organizational goals. The council offers six ways HR can leverage data.” “With all the big data and technological advances at HR’s disposal, over reliance on metrics can ignore employees’ human needs. Engaging employees sometimes can be a simple as acknowledging them for a job well done or asking for their input in a major decision affecting their work.” Lady Gaga’s Halftime Show Drones Have a Bright Future By @brbarrett | Published on @WIRED “Each drone communicates wirelessly with a central computer to execute its dance routine, oblivious to what the hundreds of machines around it are doing. The system can adapt on the, er, fly, too. Just before showtime, the computer checks the battery level and GPS signal strength of each drone, and assigns roles accordingly. Should a drone falter during the show, a reserve unit takes over within seconds. All of which is pretty cool in its own right. But making it work for the biggest television event of the year takes a whole different level of planning.” How Service Relationship Management and the IIoT Are Keeping Transportation on the Right Road By Michael Riemer | Published on @IoTJournal “In 2016, the Internet of Things went mainstream, but in 2017 we expect the Industrial Internet of Things (IIoT) to transform operations across numerous industries. Also known as the Industrial Internet, the IIoT enables machine-to-machine (M2M) communication of usage, performance and health metrics. There is quite a buzz around using this data, along with machine learning and other predictive algorithms, to help anticipate and eliminate potential causes of downtime. Nowhere is this more evident than in the commercial asset service ecosystem. Trucking fleets, construction assets, agriculture and power-generation equipment are all susceptible to costly unscheduled downtime and generally long repair cycles.” China is Now the World’s Largest Solar Power Producer By @luchanglu| Published on @DigitalTrends “As it stands, solar energy represents only one percent of the country’s energy output. But this may soon change as China devotes more and more of its attention towards clean energy. The NEA says that China will seek to add more than 110 gigawatts within the next three years, which could help the nation up the proportion of its renewable energy use to 20 percent by 2030. Today, it stands at 11 percent.” We predicted that 2017 would be a transformative year with a lot of innovation and smarter data, especially within the IIoT realm. These recent headlines are certainly tracking along with those insights. It will be interesting to see how IIoT continues to shape markets and change the way we do things.
Network Management Solutions for IIoT
The shift towards digital technology solutions and the rise of the industrial Internet of Things (IIoT) have transformed operations for many organizations. Currently, there are a number of wireless communication solutions available that are specifically designed for IIoT, M2M and SCADA networks. These technologies monitor, collect and transfer critical data in challenging environments to support mission critical use cases. As technology continues to advance, Sensor-to-Server (S2S) technologies have emerged to support advanced data practices, such as predictive analytics. IIoT has not only increased the number of devices in the field, but has also brought the OT and IT departments closer together. This convergence is challenging for many businesses as they look to find technology that will meet evolving demands. IT, for example, needs better field visibility as industrial networks become more connected every day. This need has driven a strong demand for detailed, real-time information solutions that will support IT network operations. Having a network management system (NMS) at the access layer helps meet those needs and companies like E2E have begun to offer NMS solutions specifically for IIoT, M2M and SCADA networks. These networking solutions help overcome some of the major visibility issues from an IT perspective and are suitable for operation in challenging environments . FreeWave’s NMS Partnership FreeWave recently announced a new technology partnership with E2E Technologies. E2E’s Stingray Network Management System (NMS) will support FreeWave’s WavePro™ wireless communication solutions. Stingray is optimizable for IT professionals looking to manage individual components of a limited IoT or M2M communications system within a larger IT network management framework. Companies in energy, utilities, municipalities, government, oil and gas, and more will benefit from this solution as they now have a technology solution designed to help bridge the IT/OT convergence gap.
Energy and Excitement at DistribuTECH 2017
This week we attended DistribuTECH 2017 with several thousand of the leading minds in technology, education and innovation for utilities, Smart Grid and municipalities. We had many great conversations about the direction of Industrial IoT (IIoT) and the all-encompassing digital technology shift. At the FreeWave booth we led many demonstrations of our latest technology. We also shared how our fellow attendees can achieve smart data at the Edge. Here is a small snapshot of the excitement and action from the show: FreeWave at DistribuTECH We had a lot to share at DistribuTECH this year. In addition to providing product demos at our booth, we just launched several important company, product and partnership announcements. Here’s the run-down on what we launched this week: New IIoT Products & Two New Partnerships Introduced at DistribuTECH Zumlink Z9-C and Z9-T Radios: FreeWave introduced the Zumlink-Z9-PE last Fall, but now it brings the next generation, high performance platform to market. ZumLink is the underpinning of the company’s go-forward IIoT strategy for IIoT and embedded radio applications. The Z9-C and Z9-T deliver high speed Frequency Hopping Spread Spectrum (FHSS) functionality in a radio module that is half the size of a credit card. FreeWave and Systech application partnership: Together with Systech, we announced an industrial Tank Level Control application that resides on and executes from FreeWave’s ZumLink IIoT Programmable Radio for edge networks. The new application features an easy-to-use “ITTT (If This Then That)” process control programming interface that will control analog, digital and RS485 sensors linked to the ZumLink programmable radio. The FreeWave ITTT App is designed for a user-friendly experience and requires no previous programming knowledge or practice. Technology partnership with E2E Technologies: E2E is a comprehensive solutions provider specializing in communication architecture design, implementation and network management. E2E’s Stingray Network Management System (NMS), supports the full array of FreeWave’s industry-leading wireless communication solutions and is optimizable for IT professionals looking to manage individual components of a limited IIoT or M2M communications system within a larger IT network management framework. The New FreeWave We officially unveiled a new look and website that reflects our move to the next generation of the industrial IoT: The Programmable Edge and Fog Computing. The new FreeWave visually projects our future-focused mission to help organizations around the world connect and gain valuable intelligence from devices – even in the most challenging of locations and conditions – anytime, anywhere in a secure, reliable fashion. This week has represented several major milestones for FreeWave, and launching it all at DistribuTECH was the perfect platform for sharing both our news and the future direction of FreeWave. What do you think about the new FreeWave website?
2017 IIoT Prediction Series, Part 5: Major Public Utility Company Closes Doors
As 2017 kicks into full gear and a particularly interesting 2016 fades into the rearview mirror, we took a look around the IIoT landscape to see what this year might potentially have in store. Today, we wrap up the 2017 series – let us know what you think! On Tuesday, we started our predictions by looking at the potential development of Fog Computing at the Edge and its impact on cybersecurity. Wednesday, we predicted that the rise of IIoT applications will outpace consumer IoT apps. Thursday, we wrote about the challenge facing IIoT businesses as the workforce ages and new skills are needed for the ongoing IT/OT Convergence factor. On Friday, we predicted that the growth of smart cities infrastructure would force a connectivity standard for the IIoT industry. A Public Utility Closure in 2017 The maturation of interoperability standards and evolution of remote data collection technologies are forcing critical infrastructure and utility organizations to adapt at a new pace, in light of aging infrastructure and high percentages of the workforce that are nearing retirement. Existing management continues to struggle to match the IT and operations resources needed to build a comprehensive, integrated portfolio of applications that must work together to support the organization’s goals. The prediction A public utility company will close its doors in 2017 due to challenges surrounding the adoption and implementation of modern IoT technologies. There are numerous forces that support the prediction. Here’s our take on the big ones: Are you Taking Advantage of Fog Computing at the Edge? According to analysts, utility organizations are becoming more comfortable hosting critical infrastructure data and applications in the Cloud. But, in an effort to further optimize processes and shorten response times, utilities need to explore ways to host applications at the device/sensor level (i.e., the Edge otherwise known as Fog Computing). A decentralized network architecture that brings computing power closer to where data is generated and acted upon enables utilities to analyze, control and automate closer to the “Things” in the Industrial Internet of Things. In electric power, for example, where even milliseconds are vital, certain processes can move away from the Cloud and closer to the Edge. In an industry where cloud computing presents its own sets of challenges, can utilities go one step farther to look at new ways to optimize the “things” at the edge? IT-OT Convergence Presents Plenty of Challenges With identifiable business benefits and rapidly developing technologies that are closing the IT/OT divide, there are functional and operational differences between IT and OT groups that exist and complicate integration or convergence. IT and OT groups typically have fundamentally different charters, focus and personnel within their respective organizations. The challenges to IT/OT convergence are not the sensors, hardware, software or technology, but how each group perceives each project or opportunity and in turn, the solutions, which are skewed by their respective domains. In order for IT/OT convergence to be successful, communication is essential and in turn, there needs to be a clear understanding of each group’s roles – something we see utility organizations struggle with mightily, especially as an aging workforce butts heads with the next generation of digital-centric employees. However, the careful selection of technology for IIoT or industrial applications can help drive the convergence of IT/OT systems. For example, in electric utilities, the rollout of Advanced Metering Infrastructure (AMI) and Distribution Automation (DA) networks is truly an OT application. The source of the data will fuel IT/OT convergence because it is the data analytics applications such as outage detection, fault management, prepay and others that bring value to the Smart Grid. If utilities can proactively take a systems level view of its infrastructure and integrate legacy systems with modern IT systems, the convergence of IT/OT groups may prove less strenuous. Cyber-threats to the Utility Utilities are at the forefront of the Industrial IoT with complex and comprehensive networks for advanced metering infrastructure, energy management, distribution management and substation automation. The estimated growth in IIoT applications for utilities and energy industries will increase to more than 1.5 billion devices by 2020. This explosive growth in networks, smart sensors and devices, and automated systems requires utilities to address, implement and monitor the security of their data networks because these are the networks providing command and control of critical infrastructure that is the Smart Gird. As technology has evolved, so has the intelligence and sophistication of cyber terrorists and their tactics. If utilities do not build a comprehensive security layer, especially across its internet-connected systems, there is little faith they’d be able to combat against such tactics as Denial of Service and Intrusion – the two top threats according to the Federal Communications Commission (FCC). If utilities don’t invest in hardened/proven networking and communications equipment, network access control programs, data encryption strategies, advanced monitoring technology and explore various other tactics for limiting exposure to harmful cybersecurity threats, they may be forced out of business anyways. Today, it is not a matter of “if” a cyber-attack is going to take place, but when. We hope you are ready. All in All We hope this prediction is one that doesn’t come to light in 2017, especially with all the direct investments being made in our critical infrastructure projects across the nation. However, a competitive organization is both agile and proactive in meeting market demands – something utilities need to learn from as business continues. That does it for our list of 2017 IIoT predictions – hope you enjoyed and please be sure to send your questions and comments below!