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Well, good morning, and welcome back to Discover.
We get a chance to talk to you a little bit about
the future of computing.
One of the fun things I have in my role
as really the chief technology officer
for printing and personal systems
is to be able to look in the future
beyond the PC, beyond the tablet,
beyond the printers and what do we see
is going to happen
in the five-year-plus timeframe?
We look at a bunch of things like wearables, robotics, 3D printing.
Many different areas that we look at.
But one of the key ones where we think is really
the next wave of computing growth
and probably one of the big revolutions
that will happen in our time
is what's called Internet of Things.
So what we want to talk to you about today
is exactly that: our view, our vision
of what's going to happen in the Internet of Things.
And with that, I'd like to welcome up Sridhar Solur.
Sridhar is a member of our staff in CTO office.
and he's going to walk you through
our vision of the Internet of Things.
Thank you. Welcome, Sridhar.
(audience) [applause] ♪ (brief introductory music) ♪
- Good morning. - (audience) Good morning.
Alright. How was the party?
(audience) [inaudible]
Alright. How was the after-party?
(audience) [Good.]
Alright!
What I want to do in the next 20 minutes or so
is to talk to you about the next wave of computing.
In the last 100 years, if you analyze
all the technologies that have achieved
critical mass in the Western economies,
in the 1920s, it was AM radio.
In the 1950s, it was television.
In the early 2000s,
it was the rise of Internet.
And after that little family company
went out of business in 2008
it's been the rise of mobile.
You know, what's very interesting is
these technologies have achieved
critical mass in the Western economies
in and around times of economic recession or depression.
This is not my slide; I'm not that smart.
It's from MediMaker, from Kleiner Perkins
who put this together.
But the interesting part of this is,
it is so revolutionary.
Right?
That it has changed certain social dynamics.
Can someone tell me what the population of the world is?
I know it's early.
No?
The population of the world is around seven billion.
The number of people below the poverty line is around
2.6 billion people are below the poverty line
out of the seven billion.
But the number of people
who have mobile devices
is 5.2 billion.
What has happened here is very interesting.
The Maslow's Hierarchy of Needs has actually changed.
Now it's like: water, food, mobile,
and then it's shelter.
So that has happened.
And the number of babies that are born every year
is 370,000.
The total number of mobile devices that are activated
is around two million.
It's 1.5 million for Android but two million overall.
So the number of devices is more than the number of people.
And that's already crossed.
The next wave is the wave of hyper-mobiles.
In the wave of hyper-mobile,
you're going to have close to around 485 million,
according to some analysts.
And the trend of connecting physical objects
to the digital world
is called the Internet of Things.
By 2025, they claim that we're gonna have a trillion devices
connected to the internet.
Let's look at mobile first.
Mobile itself was so revolutionary, and then we can
look into what this is gonna do to the next wave of computing.
In 2008, when recession hit this world really hard,
large enterprises, the enterprises that you all represent here
and work for, decided to embark on real estate consolidation.
So, people started to work from homes.
How many people here actually work from home
once or twice a week?
Quite a big number, huh? So, you won't admit to it,
but when you work from home, there is an angst of loneliness.
Do you admit to it? It does happen. When that happens,
you are pining to communicate with your peers
back at the office, the relevance of social media in the enterprise
becomes very prominent. There are instantiations of Yammer
that are widely used as modes of communication today,
so there's been a rise of social media.
In addition to that, when you actually work from home
you need a central place to collaborate.
The word "cloud" and the relevance of cloud.
Cloud has become vastly prominent, and cloud also brings in
efficiencies associated with multi-talency.
So you will see most of the enterprises here are experimenting
or have already adopted aspects
of private, public, and hybrid clouds.
Then, we have moved into a new era already.
When I talk about the new era, I'm talking about an era
where I consider myself and most of you here,
I think, are digital immigrants.
Our kids are digital natives.
With the cloud and cloud-based technologies,
We are moving into a sharing economy called the digital hippies.
That is something that is absolutely required.
Think about this. This is a huge socioeconomic change
that has happened since 2008. You had the recession,
the rise of mobile, and then associated technologies
like social and cloud, and in addition to that,
there has been a rise of analytics.
All the phones that we carry have sensors.
An iPhone 5 has seven sensors.
Samsung Galaxy has four, nine sensors.
All the sensor data is being sent back to the cloud
and value is created by analyzing that data
and delivering services.
The biggest natural resource in this world is not diamonds,
but it's data.
Try telling that to your wife, okay?
The next one is in terms of explosion of devices,
I just want to show you the magnitude.
This slide just summarizes this.
In 1990, we had 300,000 devices connected.
By 2025, you will see almost a trillion devices connected.
I think, with this connection comes a lot of problems.
I don't know about you guys. In 2007, I used to carry a fat,
ugly, big laptop. It did everything for me.
On my flight to Barcelona, I needed to transfer data
from my Android tablet to my iPhone.
I'm on a plane.
Can someone here tell me how to do that?
If you want to transfer data?
It's not easy.
Along with all these devices
there are lots of complications. But I have to tell you this.
With the world of Internet of Things, with the world being connected
you will see that we are moving into a new era of computing.
Internet of Things is precisely as I mentioned
is the ability to connect physical objects
to the digital world.
If you look at the physical digital continuum
HP has played a big role.
Printing for example is about converting bits to atoms.
It's from the digital world to the physical world.
3D printing, again, digital world
to the physical world. IoT in that continuum is
from the physical world back to the digital world.
So this is something that we think we know how to do.
It's the next wave of computing.
For a moment, I want you to think about this.
The year is 2012, and in 2012,
there were 300+ million PCs that were shipped.
Three hundred million.
The big players were Intel and Microsoft.
Think about the business models of those companies. 2012.
The year now is 2014. The total number of devices shipped,
let's say mobile devices, is three billion.
From 300 million to three billion it's a magnitude higher.
Look at the major players.
You have ARM, one of the major players.
Look at the business model difference between Intel and ARM.
Look at the operating systems.
In today's world, other than Microsoft,
there's no one else who charges
for an operating system.
Correct?
It's vastly different.
The next wave of computing: 2016.
You're talking about 30 billion connected devices.
Look at who are the players in there.
There are no players associated with SOC who are clear leaders.
Operating system in 2016: we don't know.
So, this is a total greenfield opportunity and for a company like HP
it is something that we are absolutely focused on.
In addition to that, if you look at IoT, it's a huge, huge market.
Analysts have put this market at around $350 billion.
If you look at VC investments, it's phenomenal.
It's close to a billion dollars in VC investments
associated with IoT, and a small part of this IoT is wearables.
How many of you here have wearables that you use?
Not many? Not yet? There are a few early adopters,
but you will start seeing that percolating into our lives.
When you look at IoT and wearables, it's much different from the PC market.
It's much different from the world of mobiles.
What happens is, you have a device, but it's not all
about the device.
The device connects to a hub
and this hub could be your phone, this hub could be your PC,
and then it also connects at the back end to the cloud.
So the model is vastly different when it comes to the world
of IoT and wearables.
I just want to define this.
The engine behind IoT and wearables is a science called
contextual computing.
So I'll give you an example. When you connect
so many devices to so many people, there are lots of problems.
Contextual computing deals with linking changes in the environment
with computers and people together. I'll give you an example.
How many of you here on Facebook?
Don't worry. I won't friend you.
When I say this, I have around 700 friends on Facebook.
You know what's the problem with that?
I discussed this a couple of days ago.
This problem is it's someone's birthday every day.
I truly want to wish them, but I just don't have the time.
So with what is called personal contextual assistance that I have
it automatically wishes them "Happy Birthday."
I basically program the language before
whenever I have time, and it basically goes
and populates random birthday messages.
But I still love them, though.
So that's a great example, personal contextual assistance.
That's the science. In addition to that, the number of sensors
around us has increased exponentially.
In the Western economy
the average number of sensors that a person
comes across today is 32 sensors.
By 2017, it's gonna be a thousand sensors around us.
A thousand sensors!
I lived in London and I'm given to understand that
you're photographed 300 times a day, so you got to keep smiling
to look good in those photographs.
So that's another example. There's been the rise in sensors.
In addition to that, I want to give you an example of how
contextual computing is changing lives.
I'll give you this example with Tesla.
How many of you know Tesla?
Yeah, everybody knows. How many of you followed Tesla
earlier this year, with the controversy with New York Times?
It's very interesting.
It's dead of winter, East Coast.
A New York Times journalist basically takes Tesla for a spin
on the Eastern Corridor, from Connecticut to Delaware,
just above Washington, and came back with a report.
This is New York Times; we are talking about journalistic integrity.
And basically came up with this report saying that Tesla
is not ready for prime time, at least in the Eastern Corridor
with the cold and all that.
Tesla CTO and founder Elon Musk
basically on his blog blatantly said that the reporter has lied.
The car reported back that this journalist who had
kept a log in his little red book, basically that log was not true.
He had only charged the battery 26%.
In addition to that, he had gone around a parking lot 46 times,
and he was able to prove that.
New York Times issued an apology.
So the car is sending back information, back to the cloud all the time.
Think about the potential. That is changing industries.
So the next time you lease a car, your car lease...
I'll give you a model.
Let's say you want to lease a BMW 3-series.
You'd potentially pay let's say 4,000 Euros due at signing
and maybe 500 Euros a month.
But with the connected car initiative, based on how you drive
how often you brake,
the average distance you drive from the epicenter,
your car lease rates will go up and down,
and that process is called industry liquification.
Industries are gonna be liquified,
and that is applicable to all the industries,
manufacturing all the way up to financial services.
Industries are gonna go through a transformation,
and that is because of Internet of Things.
More examples.
I'll give you an example of when you connect your body
to the digital world. Just look at what we have here.
Almost every part of the body is taken.
Some people, I've seen reports about wearables.
The big question is, "is it gimmicky? Does it have a purpose?"
There are even bracelets which will tell you the mood
of your spouse and warn you.
Who wouldn't want to know the moods of their spouse
before they enter the door?
So, the point here is, there are lots of wearables today in industry.
And from an enterprise perspective, you have to remember:
that is gonna change the health insurance industry.
If I were to expose my data about fitness
to my health insurance provider, my premiums can go up and down
based on how much I exercise. So that's possible.
Similarly, home warranty with connected homes,
connecting security services to protect your homes.
All those things are gonna change.
Today, if I have an integrated app along with Nest and Lockitron,
based on my proximity to my house, the Nest thermometer
will actually warm up your house.
Things are being done for you and not done by you.
Keep thinking that way.
That's the power of IoT, and that's the power of wearables.
More examples.
It's not only changing industries.
It's also changing lives. We all want to live longer.
Right?
We all want to live healthier and better lives.
The number of people who die in car accidents is phenomenal.
But do you know that with autonomous and semi-autonomous driving cars
there has just been like one accident with the Google car,
and that was because of the human error?
We could be saving a lot of lives and that is coming down the pipe.
Coming very, very fast.
So I just want to quickly summarize.
We all thought mobile was revolutionary.
In addition to mobile, there was a rise of adoption
of social media technologies.
The cloud, the relevance of cloud.
Analytics.
Remember when I talk about analytics, it is the biggest natural resource.
Data is your biggest natural resource. Anything that you do,
keep collecting data, because when you analyze the data,
you can create and deliver value.
This platform, this is a perfect storm of mobile, cloud, analytics,
and the social part coming together.
It's created this perfect storm. If you actually walk around
and see the teams here within HP,
it's all based on mobile, analytics, big data, cloud, and that's where
as a company we are focusing on.
In addition to that, that is a platform that has basically
brought us to the world of Internet of Things
and wearables, and most importantly, IoT is changing lives.
It's gonna transform industries.
It perhaps can displace incumbents and create new value pools.
According to Mackenzie Global Institute,
the economic impact from IoT is gonna be multiples of trillions.
We all started with the recession, and what I wanted to show
is if you had focused on mobile, cloud, and social
look at the returns.
Has there been a recession in the last
four years or five years?
You'll have to tell me that.
But just remember that the next wave of computing
is associated with IoT.
Thank you very much.
[twitter: @SridharSolur] (audience) [applause]
[hp]