By 2020, the number of connected devices is expected to grow exponentially to 50 billion. The world of interconnected objects will have it’s data collected, analyzed and used to initiate action, which will provide a wealth of intelligence for planning, management, policy and decision-making.
Important information will be pushed out to machines, to individuals, and to Read More »
Tags: Internet of Everything, Internet of Things (IoT), IoE, IoT, M2M, security
Guest Blog by Marcel Cappetti, Managing Director, Oil and Gas, Global Enterprise Theater
I’ve just returned from CERAWeek in Houston—an international event that could be described as “Davos for the energy industry.” It’s a gathering of the power elite, including industry, finance, technology, and government leaders from around the globe. For me, it was the perfect sensing post for all the angst and opportunity that pervades the industry today.
It was my privilege to participate in a panel on “Leveraging Operational Excellence to Drive Margin Expansion”—a key concern of oil and gas (O&G) executives following the crash in oil prices. Too often in previous downturns, companies have relied heavily on deep cost cuts—including massive layoffs and cancelled projects—to keep margins afloat. But this time seems different. There is general agreement in the industry that we will not be returning to $100-a-barrel oil prices any time soon. So it’s time for more than a course correction. It’s time for digital transformation. Digital transformation will drive operational excellence and, yes, margin expansion.
During my talk last week, I shared highlights from a new Cisco study discussing the new reality in O&G and the opportunity for digital transformation through the Internet of Everything (IoE)—the networked connection of people, process, data, and things. Key findings include:
- “Operational efficiency of existing projects” and “maintenance of assets and infrastructure” will be the top two areas of increased investment over the next 24 months.
- O&G leaders clearly understand data’s potential—they named “data analytics for faster, better decision-making” as the No. 1 driver for IoE investment.
- Business transformation—including breaking down organizational silos and converging IT and OT people, processes, and technologies—is essential for digital transformation. According to Cisco’s study, 59 percent of respondents do not believe their IT and OT organizations are aligned.
- Companies that transform will have a significant bottom-line impact. Analysis by Cisco Consulting Services shows that by implementing a range of IoE-empowered solutions, oil and gas companies can capture their share of $600 billion of Value at Stake between 2016 and 2025. For a $50 billion firm, this translates into an 11 percent bottom-line (EBIT) improvement.
Cisco can help O&G companies in their journey to digital transformation through the investments we have made in key technologies—such as analytics, data, sensors, wireless, and mesh—and through solutions developed with key partners. For example:
- Remote Operations—Developed with GE, our Connected Oilfield solutions increase personnel safety and improve asset integrity with predictive maintenance; real-time analytics at the edge and virtual expert support enable faster and better decisions.
- Pipeline Automation—In partnership with Schneider Electric, Cisco’s Connected Pipeline solution uses analytics at the edge to improve security and environmental protection with predictive detection of pipeline intrusion, leakage, and deformation.
- Wireless Operations—Developed in partnership with Honeywell and Emerson, this Connected Processing Plant solution improves personnel safety and process efficiency with wireless real-time tracking, video analytics, and automated incident response.
- Secure Operations—Industrial cybersecurity solutions improve security and risk management to combat new and evolving cyber security threats, specifically in the process control domain. A good example is a project for Royal Dutch Shell that provides remote proactive monitoring and SLA-driven management of security, applications, and infrastructure. We are working with industrial control system delivery partners such as Yokogawa Electric and Rockwell Automation to support this solution, which Shell plans to deploy at all upstream, downstream, and lubricant sites.
When the price of oil stood at more than $100 per barrel, the need for oil and gas companies to improve operational efficiencies was primarily driven by the competitive marketplace—and many firms took no action at all. Read More »
Tags: analytics, CERAWeek, Cisco Consulting Services, data, digital disruption, Digital transformation, Energy, IIoT, Internet of Everything, IoT, IT/OT convergence, oil, oil and gas
There’s a lot of hype around securing the Internet of Things (IoT). At the end of the day, I suggest that a more reasoned approach is in order. Securing the IoT will not be achieved by frantic worry about the volume of endpoints. Myopic focus on the volume of devices in an IoT ecosystem can lead to an important misstep: forgetting that it’s the Internet of Things. That means that all this data is passing through the network. Therefore, tackling security can only occur with diligent attention to the core of the IoT, namely, the network stack. In that way security can become as pervasive as the IoT itself.
I recently had the privilege of participating in a panel discussion at LiveWorx’s CXO Forum on Securing the IoT. Here are two predictions with respect to the IoT and security that I shared with the audience and my co-panelists at the event:
- Access and identity management will be critical in an IoT ecosystem. However, the username and password won’t be part of tomorrow’s approach: the password will die – and soon. It’s not radical to point out that passwords are insufficient on their own for authenticating access to sensitive data. I don’t think that means we’re going to go immediately to 21 levels of authentication, for example. We do need a human factor, and it can be biometric, or it can be at an endpoint. We’re familiar with straightforward biometrics such as the iPhone’s fingerprint scan, but there are also newer methodologies that track the exact way a human swipes a smartphone screen. We can leverage technologies such as this to enhance security in the IoT and its member devices.
- Our industry must work together in public-private partnerships to put a stop to the proliferation of regulations – country by country or region by region – that are creating a tangled web of laws, regulations, and guidelines around security. Conflicting guidance, standards, and regulations cause confusion rather than clarity. International standards bodies and government regulators should consider removing territorial blinders and revisiting the real mission: ensuring, to the greatest extent possible, that information and communications technology (ICT) are genuine and free from compromise and will not permit control over the operations for which they are used.
While strong international standards for IoT security and new authentication methods are just two pieces of the larger puzzle that will make IoT more secure, they are essential pieces. We at Cisco are working to make inroads in both these areas. Stay tuned.
Tags: internet of things, IoT, security
I recently attended the Strata + Hadoop World Conference in San Jose, and came away impressed with the accelerating pace of innovation in the world of Big Data. Companies and startups are innovating in every area of the Big Data value chain – from automating how data is collected, cleaned, and organized; to data governance and management; to data storage using a plethora of NoSQL database technologies; and to the numerous emerging tools for data science. Read More »
Tags: Arun Saksena, big data analytics, Cisco, data scientists, Fog computing, Internet of Everything, internet of things, IoE, IoT
Kevin Collins, CEO and co-founder, Bit Stew
We’ve introduced several of the key figures within Bit Stew and shared with you the ways they are working to bring the IIoT to fruition, particularly within the energy sector.
I had a chat with Kevin Collins, CEO of Bit Stew to discuss the next opportunities for the company:
“It’s an exciting day at Bit Stew, with the announcement of additional funding from Cisco Investments and GE Ventures. With this support, we will continue to bring our experience in managing massive data sets and optimizing edge and fog computing to automate industrial operations in utilities and other industries as well.”
Kevin told me that the new funding will help fuel Bit Stew’s ongoing technology innovation and customer adoption: “This investment will open doors to new market opportunities for Bit Stew, and positions the company as a global leader in Software Defined Operations for IIoT. Bit Stew has quickly become the hot company to watch”.
Bit Stew was recently recognized to Greentech Media’s prestigious Grid Edge 20 list, as one of the top 20 innovators architecting the future of the electric power industry, along with Tesla, Duke Energy and SolarCity. “Making the Grid Edge 20 provides validation of our strong market traction, and is a tribute to what we’ve achieved since Bit Stew was incorporated in 2009. It also serves as a reminder of the responsibility we have to our utility customers, partners, and the industry as we work towards transforming the power sector to one that is more efficient, reliable and agile.”
Purpose-built for the Industrial Internet
The MIx Core platform is the culmination of years of industry-hardened machine learning derived from trillions of data points analyzed throughout the utility and oil and gas industries. Purpose-built for the Industrial Internet, MIx Core processes and analyzes greater volumes of data than most of the largest social networks in the world every day.
Bit Stew’s MIx Core takes full advantage of Cisco’s IOx technology, by embedding its core technology inside Cisco fog devices, providing data analysis at the edge of the network and in cloud-based systems – all in real-time. Running MIx Core in the “fog” brings a significant new advantage for organizations that are dealing with massive amounts of data running on complex networks in the IIoT
“Bit Stew’s collaboration with Cisco and the synergy between our Mix products and Cisco’s IOx platform has allowed us to utilize fog computing to completely revolutionize the way the energy sector operates,” Kevin said. “By using the edge of the network in the computing and analysis process, together we can create instant intelligence that is shared simultaneously in the operations center and in the field. This contextual analysis of industrial operations enables decision-making with a confidence that wasn’t necessarily available before. This expanded awareness results in increased up-time, faster issue resolution and optimized dispatch of resources,” adds Kevin.
Clearly Bit Stew is going places. And not just with utilities anymore. Find out more here: Read More »
Tags: Bit Stew, Bit Stew Systems, Fog computing, IIoT, IoT, IOx, MIx Core, MIx Director, oil and gas, utilities