Realizing the connected world

how to choose the right IoT platform

Software Innovations

Internet of Things white paper series

Part II: IoT technology
October 2014

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Contents

Realizing the connected world

Three guiding principles for building an IoT application

From M2M to IoT: silos vs. ecosystems

Most IoT projects start small

Why processes and rules are important in the IoT

IoT value chain: from connected devices to applications

Platforms for realizing the connected world

Platform requirements in a connected world

10

Asset and event management

10

Carrier integration

12

Security

13

Openness, standards, and SOA

14

Application development

16

Data analysis and management

17

Operation and maintenance

18

Availability

19

Scalability

19

Checklist: Selecting an IoT platform

21

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Realizing the connected world

Three guiding principles for building an IoT application
When choosing or developing an Internet of Things (IoT) platform, the main objective is
usually to develop applications that enable new solutions and services or increase the
efficiency of existing business. The platform should therefore provide a good basis for
developing and running IoT applications. Thats why before we even started to develop our
platform, we at Bosch Software Innovations first asked what the guiding principles for
building an IoT application are. We have identified three.
1.

Integration of things as basis for new business models

The IoT is based on the integration of billions of different things, from tiny sensors to video
cameras, from cars to production machines. The main objective is to integrate or connect
Actuators move or control

things (frequently called devices) that can be used as sensors or actuators. In this process,

connected devices based on

the variety of connected devices demands special attention. Connecting a device or several

sensor signals or data from a

similar devices from the same vendor is easy, but connecting many devices or more

backend.

heterogeneous ones is another story. A middleware or shared abstraction layer is

necessary for heterogeneous devices to communicate with each other. Platform developers
have to lay this cornerstone before talking about new services and business models in the
IoT.
[VIDEO] Integrating heterogeneous things within the enterprise
a commercial and technical illustration.

2.

IoT applications are revenue generator

According to the analyst firm Machina Research, five markets will generate almost 80
percent of IoT-based revenues by 2022: manufacturing, connected cities, utilities,
automotive, and intelligent buildings. These segments will account for 471 billion euros,
covering all players of the ecosystem. To drive the IoT world with innovations and to
maximize commercial value for customers, every IoT company has to adjust its
organizational structure accordingly.

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Figure 1: Machina Research estimates that IoT-based revenue will total around 596 billion
euros by 2022, covering all players of the ecosystem. The five industries shown account for
about 80 percent of that revenue.
3.

Technical and commercial integration of things, users, enterprises, and partners

An IoT platform should provide flexible ways to integrate any IP-enabled device into
enterprise and partner backend systems. A software platform that fulfills these requirements
should be an agile composition of devices, processes, and rules management. This makes
it possible to link things, users, and enterprise and partner systems on one platform (as
depicted in the business ecosystem, figure 2) and provides a basis for building IoT
applications.

Figure 2: The IoT business ecosystem

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Things: The IoT links the physical world of things to the virtual world of the internet. By
linking together computer networks, sensors, actuators, machines, and devices, the IoT
offers a multitude of new opportunities for businesses to develop new products and services.
Users: The IoT focuses heavily on benefits for users, since they ultimately decide whether
to use the things and services on offer. To encourage users to take advantage of them,
products and services should capture users' interest in their own personal environment,
enhance their quality of life, and be easy to use.
Enterprises: Process optimization, device management, end-to-end processes, real-time
decisions, and data integration are just some of the critical topics that are increasingly
demanding the attention of businesses worldwide. To stay on top of these trends and ensure
that everything runs smoothly in the IoT, companies need to optimize their existing services
or develop new ones.
Partners: In the connected world, partnerships between businesses are becoming more
important than ever. That's because no single company can successfully tackle all the
increasingly complex challenges on its own. These partnerships can be anything from
technology partnerships and service partnerships to groups of companies that have decided
to market their products on a joint, collaborative basis. If companies can model and
implement these partnerships using software, they can cooperate more quickly and
efficiently, benefiting all involved.

From M2M to IoT: silos vs. ecosystems

M2M (machine-to-machine) systems have their roots in applications, such as building
M2M designed to be fit for
purpose, IoT designed to
evolve and develop >> More

control, facility management, industrial automation, medical equipment, physical security, or

energy information systems. One way for companies to create a new value proposition or to
increase efficiency in these areas is by managing and integrating devices.
Device integration on an IoT platform follows two different principles:

Backend processes manage devices.

Device data leverages and controls backend processes and partner systems.

A simple example is a food cooling chain monitored by temperature sensors connected to a

backend system. If the temperature exceeds a certain threshold, the backend system
triggers an alarm. This alarm may in turn trigger several other processes.
Classical M2M systems were developed as silos. Distributed devices were directly
connected to monitor and manage systems. The sole objective was to improve the oversight
and control of dedicated industrial processes, with no thought given to how these solutions
could be integrated into wider business solutions in the future.

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In contrast, IoT systems are specifically designed to grow and evolve to meet future needs.
To take potential developments of new use cases and business models into consideration,
IoT platform development should avoid creating silos by strictly following an approach of
open interfaces and standards. These are not only important for avoiding the development
of silos, but they also serve as a foundation for effectively integrating partner systems into
an IoT ecosystem. For example, a fleet management solution is only complete once a
maintenance or repair appointment can be scheduled without human interaction. To achieve
this, the scheduling system of a garage has to be integrated into the fleet management
system of a car rental company.

Most IoT projects start small

Our experience with different industries shows that most IoT projects start with small
numbers of connected devices and limited complexity. The average project usually starts
with a proof of concept (PoC). This includes the connection of a limited number of pilot
devices and the collection and readout of specific device data.
The above-mentioned cooling chain use case also provides an example of a proof of
concept (PoC). Initially, the setup may call for 20 sensors. After checking that the system
works for this limited number, the developers can increase it to hundreds or thousands of
sensors. The kinds of data collected may also expand greatly, from just temperature to
indoor location data, light exposure, etc. The backend systems could possibly be extended
to automatically replace goods with a compromised cooling chain, if they are integrated into
supplier systems.
This is just one example of how IoT scenarios can grow from a simple PoC to more
sophisticated systems. Every IoT platform has to support small numbers of connected
devices and simple use cases at first for cost purposes. But a robust IoT platform must be
scalable up to large numbers of connected devices and be able to support the evolution
from simple M2M use cases up to complex IoT scenarios, including various integrated
business stakeholders as well as enterprise and partner systems.

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Why processes and rules are important in the IoT

Admittedly, the relationship between managing processes or rules and connecting devices
is not self-explanatory, and was of interest mainly to software vendors and dedicated
industry analysts. Before exploring these processes and rules in detail, though, lets take a
look back at 2013. It was a tipping point for IoT in two ways. First, it was the year when the
business world took over thought leadership from research and technology evangelists.
Second, it was when the intelligent management of business processes and rules started to
crop up frequently in discussions about the IoT.
Now, a year later, the IoT and intelligent processes are often mentioned virtually in the
same breath when talking about making the connected world a reality. Recent studies show
that 29 percent of C-level executives expect the IoT to have an impact on their business
processes.
Business rules define or

This is why we believe our approach of combining IoT-enabling technology with an

constrain business logic. They

integrated process and rules management to be the right one. Many IoT application platform

follow an if-then pattern, and

are anchored in a companys

vendors focus solely on connecting devices and providing some form of basic asset

enterprise systems to control

management in the backend. However, connecting devices with only a backend system

or influence business

does not add any value. To do that, devices have to be managed by backend systems and

decisions, operations, or

available device data has to be processed.

constraints.

Based on voice of customer data, Bosch Software Innovations decided to integrate a device
management system with process and rules management software. The fully integrated
software makes it possible to link business processes and rules directly with devices.
Processes and rules trigger devices acting as actuators. They can also react in near realtime to information collected from devices acting as sensors. However, in almost all of our
customer projects, we see that deploying only device management software falls short of
addressing the customers challenges. Customers want more than just passive device
monitoring and management. While this is an important foundation, nearly every IoT project
has a major impact on a large number of business processes and rules in the enterprise. As
a result, a device management solution should offer very flexible ways to be integrated into
business processes and rules or adjacent enterprise backend systems especially when
existing business models and operations have to be made more efficient by integrating
things.
There are more reasons why efficient rule management is particularly important for the IoT.
Rules can manage many different variables (tax rates, sales quotes, technical thresholds,
etc.) that could greatly affect applications. It follows that modifying those rules offers a fast
and easy way to change the variables. Doing so allows companies to shorten their time to
market considerably.

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The interrelationship between rules and variables also provides a solid foundation for the
collaboration of IT specialists with business or other experts. If rules are provided as
graphical metaphors, business departments can flexibly integrate industry know-how into
application development and manage their rules themselves. This way, they can automate a
huge number of operational decisions without any programming knowledge.

Figure 3: The role of rules and processes in the IoT business ecosystem

IoT value chain: from connected devices to applications

Simply connecting devices is not an end in itself. Connecting and integrating devices is
intended to unlock new potential; for instance, in new applications such as predictive
maintenance, fleet management, or smart home solutions. In order to create these
applications sustainably, companies have to connect the world of things and the world of IT.
Specifically, devices need to be integrated in IoT platforms.
The initial focus is not on the number of devices or on application complexity; instead, all
parts of an IoT business ecosystem things, users, and enterprise and partner systems
first have to be integrated on one platform.
The world of things consists of connected devices (often called edge devices) and agent
hub gateways. An agent hub gateway is a combination of a router or mini-PC and an agent
hub software stack. It integrates the connected devices on-site and provides the connection
to the backend systems or IoT platform, linking the physical world to the IT world. In certain
scenarios, the edge device and the agent hub gateway may be one and the same.
Networks such as DSL, mobile communications networks, WiFi, etc. normally provide the
necessary internet connection. The local connection between edge devices and agent hub
gateways is provided by local network protocols such as Zigbee, Bluetooth, WLAN, CAN, or
proprietary protocols.
The IT world consists primarily of the IoT platform and the applications built on it. The IoT

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platform acts as middleware between the physical and the IT world, facilitating development
of IoT applications and solutions via Platform as a Service (PaaS) / Software as a Service
(SaaS) environments. Integrating devices on this platform also aids application
development. Bringing all the chain links together the physical world, the internet
connection, and the IT world forms an IoT value chain.

Carrie
rs

Figure 4: The IoT value chain

To build successful applications, certain functions have to be covered by an IoT value chain
in general and by an IoT platform specifically:

Scalable asset and event management

Device management for remote software updates

Backing up the overall system and ensuring overall service availability

Resiliency to errors and failures, enabling smooth operation without total blackout
and safe operations in critical use cases, such as slow internet connections,
unstable mobile connections and devices that go on- and offline. These impose
severe constraints on the design of applications for remote access

Robust security concept including rights and encryption management necessary for
genuine end-to-end security

Platforms for realizing the connected world

Many companies currently label software for the IoT as IoT platforms. However, we
consider them to be quite different with respect to their target groups, general scope,
architectures, and functions. Most IoT platforms offer a set of generic functions that can be
leveraged to build IoT applications and solutions, but these often vary widely from platform
to platform. Before selecting the functions that an IoT platform should provide, companies
have to answer a key question: What is the scope of the planned IoT use case? This is the
starting point, as some platforms are built mainly to develop and run applications on user
interfaces such as smartphones and tablets. Other IoT platforms are developed to provide
and run embedded applications on distributed devices or to centrally coordinate and

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execute processes. Which functions are more important than others depends on the IoT use
case in question. In our view, a sustainable IoT platform should offer nine features, which
we examine in the following section.

Platform requirements in a
connected world
When formulating a new value proposition or increasing efficiency in fields
such as connected manufacturing, energy, mobility, city, or buildings, the
focus needs to be on incorporating things and devices into enterprise and
partner systems and processes. If an IoT platform is to help realize new IoT
business models, or just leverage existing business models via IoT use
cases, it must meet certain requirements.
Asset and event management
An asset is typically a sizable, more substantial entity such as a machine, vehicle, or power
plant. It consists of multiple devices or things connected via local networks with distributed
software hubs. Typically, an asset or software hub is connected to the backend via a mobile
carrier network or a fixed-line internet connection.
An event, in IoT scenarios, can be generated in different ways. For example, a motion
sensor detects when a person enters a room thats an event. Another example of an event
is when a sensor detects that the temperature of a machine part exceeds a certain
threshold. In most use cases, events are set up to trigger processes. In the first example,
the person enters a room, and this event triggers the device operation switch on the light.
In general, events are device information that determine what action backend systems
should take. Experts have to define and model the appropriate responses of the backend
systems using process or rules management components. What makes event management
so challenging is managing a wide range of possible events depending on the IoT use case
(for instance, machine failure or a customers expression of interest to buy at a specific retail
location). Mastering this challenge makes the difference between superior event
management solutions and those that are just average.
To serve as the foundation for an IoT application, a system must be able to support analysis
of individual events as well as the correlation between different event types (domain events
such as light switched on and technical events such as connection lost).

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Figure 5: Example of event correlation for a public security use case

To enable a wide range of IoT applications, scalable event and asset management is a
must-have. For a specific example, let us take manufacturing use cases. An event and
asset management application can serve as a bridge between devices, such as industrial
power tools or other machine parts, and the systems controlling the manufacturing process,
such as an enterprise resource planning (ERP) or manufacturing execution system (MES).
In this example, the event and asset management system could be capable of distributing
work orders and configurations to the devices.
The figure below provides an example of asset and event management. Here, the IoT
platform records a time series of engine temperature provided by temperature sensors. If
the temperature exceeds a certain threshold, the event management tool submits an event
and the machine is shut down either manually by the operator or automatically according
to pre-defined rules and processes.
A more detailed analysis is possible by correlating various attributes. The example has two
different machine components, A and B, on an assembly line. One sensor monitors the
temperature of machine component A and another the temperature of machine component
B. If the temperature of component A exceeds a certain threshold, an event is generated
(event: parameter out of range). Comparing this event with the temperature of component B
triggers a process. The temperature spikes indicate that the temperature is within range but
above normal. This correlation indicates (based on the analysis of historical machine data)
that the machine needs to be reconfigured.

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Figure 6: Example of asset and event management

Carrier integration
Asset and event management requires reliable connectivity between distributed devices and
backend systems. Of course, on-site components have to be able to establish a connection
to the backend system, but this can be done only with the help of carrier networks or
communication providers. Distributed devices are normally connected with the backend
over mobile networks such as LTE, UMTS, and GSM or fixed-line networks such as DSL.
However, companies may opt for closed systems that dont need carrier support; many
industrial IoT applications are not going to rely on the public internet infrastructure.
Companies will leverage IP technologies, certainly, but they will build up their own private
network infrastructure for mission-critical IoT applications such as smart grids, traffic
management, and drone-based transportation networks.
The use of carrier networks is always cost-sensitive and network availability is often crucial
for IoT use cases. Therefore, monitoring and managing communication (which includes
monitoring network availability and usage) is important. Since carrier support is essential for
most IoT scenarios, an IoT platform should ideally be compatible with all communication
providers. That means not only supporting all cellular and fixed-line standards, but also
being able to integrate different communication management platforms. This can be done
by integrating the communication management functions supplied by most providers into an
IoT platform. A communication management platform should offer a way to set thresholds
and predefine actions that will be automatically triggered if a threshold is exceeded.
Efficient integration of communication management functions is one reason IoT platform
providers should partner with carrier network operators. Another benefit is the option to offer
special, cheap tariffs and customized communication approaches (for example, highly
secure peer-to-peer networks that avoid data transport over the open internet) to their
customers.

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Security
Requirements regarding security and privacy are becoming more stringent. Encrypted
internet communication and protection is necessary for shielding an IoT platform and
connected devices against unauthorized access. Other security requirements depend on
the specific use case and scenario.
Privacy becomes a critical concern if usage data monitoring allows the platform operator to
draw conclusions about customer behavior and production processes. For this reason, data
collection needs to be transparent in these environments, and reliable identity management
is a must-have. This is especially true for scenarios with a lot of changing tenants or users,
where access rights often have to be transferred from one person to another. An IoT
platform should offer answers to these security and privacy challenges. There are different
solutions available, but ultimately, an effective security concept has to fulfill the following
criteria:
Security concepts have to be both preventive and responsive
As connections between things increase, so too do virtual breakpoints and in turn, potential
security threats. An IoT security concept has to protect and strengthen these breakpoints by
enabling rapid detection and mitigation of security breaches. But IT security experts
generally agree that there is no such thing as a 100% secure system. New technology and
business models will prevail only if the value they create outweighs the new risks they
entail. We can define risk as the product of likelihood and potential damage. In assessing
risk, a security concept has to not only minimize the probability of damage, but perhaps
even more importantly the scale of potential damage as well. There is a big difference
between a machine failing for one hour and an entire factory going offline for days.
Essential measures to protect potential breakpoints and to lower potential risks are:

Data transmissions should always be protected by encryption algorithms.

Connectivity within devices or systems as well as between devices and backend

systems will result in new vulnerabilities, unless protected by embedded certificate
management.

All data transmissions across public networks should be protected by security

measures at each tier.

Integrated identity management has to be installed to manage access rights on all

parts of an IoT platform and on connected devices.

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High level of transparency to enhance user trust

With increasing privacy concerns and privacy laws becoming more and more rigorous, full
transparency about what data is being collected and how it is being used and shared is
becoming much more important. But from a user perspective, transparency can be a
double-edged sword. The data collected from a connected car can provide the driver with
more safety and convenience. But it might also alert an insurance company to bad driving
behavior. To address privacy concerns, users have to be able to control their own data,
meaning to be able to select what private data should be shared and with whom. Otherwise,
it will be difficult for IoT business models to operate sustainably. In a similar vein, IoT
platforms have to provide features that control how and when different applications access
what kind of information.
Managing rights and roles
Every IoT security concept has to have a fully integrated identity management system to
avoid unauthorized access or use of an IoT platform or connected devices. This should be
part of the central backend systems and should be connected to all relevant components to
provide centrally managed user authorization and authentication. The identity management
tools should cover the administration of user-specific usage policies on all parts of an IoT
system. That includes permissions management on all components of a users application,
such as read, write, or execute operation. The system has to be capable of organizing users
and rights according to customer-specific structures and changing situations, in order to
support flexible and scalable organizations. Permissions should not be linked to groups or
tenants, but to specific roles, because access to certain functions is normally linked to roles
inside the organization. A robust security concept offers an important plus in the form of
complex access control policies that enable the secure integration of external partner
systems.
Multitenancy having various tenants use components simultaneously is another musthave. This is not only cost-effective, but new tenants can be introduced at runtime and
without direct changes to the IT infrastructure.

Openness, standards, and SOA

To keep silos from arising, an IoT platform should follow a strict approach of open interfaces
and standards. We believe that most IoT applications will not only be built by one single
company, but by various players integrated on one platform. If that platform is to be viable
over the long term, it must permit collaboration with other platforms and systems in a simple
and flexible way.
Openness, then, is vital for guaranteeing flexibility and sustainability. In addition, using
standards lets you achieve scope, connectivity, and the independence of specific vendors

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from hard- and software platforms. Rigorous and consistent use of standards is also
important to ensure the platforms horizontal reusability across domains. Such a horizontal
platform can fulfill the requirements of various industries or vertical integration of users,
system administrators, business developers, and business partners.

Figure 7: The mobility sector offers a good example of various business partners being
brought together on an IoT platform specifically, an electromobility roaming platform.
Roaming here does not have its original sense of GSM roaming (basically, a cellular
customers ability to send and receive calls automatically in a network outside their home
network); instead, it refers to the charging of electric vehicles in the charging networks of
various operators. An electromobility roaming platform facilitates a networked batterycharging infrastructure and links up users with multiple suppliers, thereby creating the
essential framework required to increase the range of electric vehicles.

But guaranteeing future flexibility and system openness requires more than open interfaces
and standards. An IoT platform also needs to follow the principles of a service-oriented
architecture (SOA), in which most software capabilities are delivered and consumed as
services. Within an SOA, the point of usage is always linked to a portal, a device or other
endpoint, and uses a service-based interface. All services in the SOA have to be able to
communicate with each other. Furthermore, strict SOA implementation ensures a modular
composition of system and services even at runtime. The optimum way to implement an
SOA is component-based (process and entity components), which provides one-to-one
mapping between business entities and component implementation. The result is a platform
or enterprise SOA that provides web services externally and also makes business
component services built or specified for internal use readily available. Every IoT platform
developed in accordance with the guidelines of a service-oriented architecture achieves
inherent stability and flexibility.

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Application development
As already stated, one primary functionality of an IoT platform is to provide a basis or
foundation for developing applications. The platform should serve as a link between the IoT
business ecosystem (things, users, enterprise systems, partners) and the applications.
To support application development for an IoT world, the platform has to provide, for
example:
1.

Methods and tools that can handle a wide range of possible data inputs, such as
devices or partner and enterprise systems. This data has to be stored, analyzed,
and processed on one platform so it can be made available to different kinds of
applications that have been built on the IoT platform.

2.

Tools to manage a wide range of business processes and rules that control
devices or leverage device data. An IoT platform should provide access to device
data and be able to manage device operations. Especially provided that devices
can be simply incorporated into existing business processes or rules, new
applications can be built or existing applications can be modified just by modeling
processes and rules.

A very simple example shows how device data is used within a process. An application
switches on a lamp when someone enters a room (process-to-device). Motion sensors in
the room detect when the person enters, and this information from the device triggers the
switch on light process step (device-to-process).
3.

A model-driven approach across all platform components, so that all application

developers can model rules and processes to be executed on the device layer.
The platform should enable model-based rule definition and automatic deployment
of business rules to be executed on distributed devices.

4.

Ability to integrate a wide range of systems in order to offer functional expandability

regarding industry-specific functions (e.g. MES, databases, ERP). Application
developers can then draw on domain-specific functions supported by existing
systems.

5.

Ease of use and flexible user interfaces (UI). Additional value-adding UI services
should support collaboration between different systems and users.

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Data analysis and management

An IoT platform must be able to manage two different types of data:
1.

Device instances and hierarchies: each device becomes an individual entry in the
database, combined with various device attributes and properties plus its position
in the device hierarchy. The information about the device hierarchy is crucial for
facilitating efficient communication with all devices.

2.

Events related to devices: each device entry contains all events correlated with the
device.

This gives rise to new challenges for data management in an IoT world:

Data volumes can expand enormously, depending on the number of devices,

event types, and time intervals.

Many IoT applications have to handle semi-structured or even unstructured data.

Especially in very large IoT applications, it will be impossible to ensure that all
devices have the same configuration. As a consequence, IoT platforms have to
handle data transmitted from different devices and different events in parallel.

Predictive maintenance is a

As important as data management is, analyzing data from the connected devices to detect

proactive technique for

patterns is maybe even more so. For example, in predictive maintenance use cases, a key

determining the condition of

equipment in order to predict
when maintenance should be

capability is detecting patterns indicative of machine failure before the failure actually
occurs. The data itself has limited relevance, but analyzing it can produce crucial findings.

performed.

As a result, an IoT platform should offer tools and mechanisms for high-performance data
analysis. These have to be able to offer near-real-time analysis by simultaneous importing
and querying data. Data analysis and management systems using sequential algorithms are
probably insufficient for near-real-time analysis and for unleashing the potential of IoT use
cases and ecosystems. The challenge is to manage the limitations of current technologies
with respect to growing data volumes and increasing velocity in order to achieve both big
data and near-real-time analysis. To be considered IoT-ready, a data analysis and
management system must be able to:

Process very large volumes of data.

Continuously import data in combination with concurrent query workload.

Correlate historical and current data to analyze and detect patterns.

As a result, IoT platforms require significantly more flexibility, agility, and scalability in data
analysis and management to meet the requirements of IoT business models today and in
the future.

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Operation and maintenance

There are different ways to operate and maintain IoT platforms and applications. One of
course is to host and operate it on the premises. A customer buys an IoT platform and
operates it himself. He pays licensing and maintenance fees and has to provide the
necessary IT infrastructure and IT management.
An alternative is to provide an IoT platform over the internet, referred to as PaaS. The
platform and IoT applications built on it are hosted by a central data center, centrally
operated and maintained for several customers in accordance with their specific needs. This
option offers several benefits and adds more value compared to the first model:

Efficient resource pooling. The platform is hosted as a single entity that is pooled to
serve multiple customers (provided the IoT platform supports multitenancy).
Resources can be dynamically allocated according to user demand.

Rapid and elastic service provision. The service is available in any quantity and at
any time.

Access by heterogeneous devices and users. Using standard internet protocols

provides access over the internet, largely decoupling service delivery from location,
time, and device type.

Simultaneous operation of multiple versions of a platform or service (for example,

support devices from different product generations).

Operating costs are another reason to prefer hosted models. The costs per hosted solution
decrease with each additional customer or installation. An on-premise installation normally
operates a dedicated infrastructure on a single-solution basis. Assuming economies of
scale, it will be cheaper to operate and maintain an infrastructure for several solutions than
for a single one. The main cost-saving drivers of a hosted solution compared to an onpremise solution are:

Increased resource utilization, resulting in greater resource efficiency and lower

platform costs per solution (no installation or operation overhead).

Process automation in data centers is cost-effective only at scale and therefore

does not apply to isolated solutions.

Already developed solutions and application patterns based on a common platform

can be reused for new solutions. For IoT platform operators, this means they can
reduce development costs, accelerate time to market, and provide worldwide
availability. Customers of the platform operator also benefit from the consulting
services and the service providers expanded network, thanks to the variety of
applications hosted on the platform. This could result in new business areas that
were not yet incorporated into the business model.

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Availability
In an IoT world, the whole system has to be error- and failure-resilient, maintaining
operation without total blackout and guaranteeing safe operation for critical appliances.
Slow internet connections, unstable mobile connections, devices that go offline, and so on
impose severe constraints on the design of applications for remote access. An IoT platform
has to back up the system and ensure overall service availability. In cases of slow or
unavailable internet connections, the IoT platform has to buffer events on site until sufficient
connectivity has been restored. To be more independent of backend connectivity, business
rules should be deployable and executable on local hubs. To be proof against errors and
failures, all crucial systems have to be redundant and available in a hot standby mode.
Furthermore, maintaining operations should be possible in runtime to avoid outages and
blackouts.

Scalability
For IoT platforms, both the number of users and the number of connected devices drive
scalability. Scalability is about response times and availability of services, and is also
important for the internet connection of devices. In an IoT world, asset and event
management also has to be scalable. Managed devices and potential events can scale up
to considerably large numbers in an IoT use case. In addition, the number of events
correlates to the number of connected devices and the specific scenario.

Figure 8: A complex industrial tightening tool such as the Rexroth Nexo cordless nutrunner
can generate up to 100 events per second.

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An IoT platform has to be able to grow and evolve to handle future volumes and
.

requirements. The main questions in assessing the scalability of an IoT platform are:

What is the maximum number of connected devices per installation?

What is the number of possible events per second and per installation under
permanent load?

What is the maximum number of concurrent users and tenants?

What is the number of executable rules per minute?

What is the maximum number of workflows processed per minute and the
maximum number of workflows that can be executed in parallel?

Figure 9: The chart shows the requirements for scalability on two current customer PoCs at
Bosch Software Innovations. These PoCs start in year one with a very low number of
connected devices and sensors. However, in a short space of time, they scale massively
upward for commercial launch and rollout.

Bosch Software Innovations GmbH

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Checklist:
Selecting an IoT platform
Your companys compass points to the connected world. When choosing
the middleware that connects the physical and the IT world, start your
benchmarking with this checklist (in no particular order).
1.

Your platform caters to both worlds: business and tech. First you have to
successfully integrate users, things, and enterprise and partner systems on
one platform.

2.

The platform has to connect, integrate, update, and manage heterogeneous

devices efficiently. Furthermore, the generated events have to be managed and
analyzed to enable a wide range of IoT applications.

3.

Connectivity is a must-have for IoT use cases. Ideally, your IoT platform should
support all communication standards and protocols and be compatible with
the communication platforms of all major carriers.

4.

The security features of your IoT platform protect you, your partners, and users
from unauthorized access. Reliable, transparent, and fully integrated security
concepts should offer the highest possible level of security for all stakeholders on
your platform.

5.

IoT ecosystems will not be built by single companies, but by various players
integrated on one platform. Open interfaces and standards facilitate
collaboration with third-party systems and platforms.

6.

Your platform should serve as the basis for application development by providing
methods and tools that can handle a wide range of data inputs. Furthermore, the
platform should be able to manage business processes and rules that control
devices or leverage device data.

7.

The platform should be able to manage the challenge of huge data volumes and
increasing velocity to achieve big data and near-real-time analysis.

8.

Your platform should ideally be available both on premise and as a hosted service
to be able to adjust to changing future requirements. A platform as a service
solution should offer rapid and elastic service provision according to specific
demands.

9.

IoT applications require service availability and stable operations. Your platform
has to recognize them all (and know how to handle them): slow internet
connection, unstable mobile connection, devices that go on- and offline, etc.

10. Most IoT projects start with small numbers of connected devices. Select a platform
that makes economic sense, but scales with you, your customers, and partners.

Bosch Software Innovations GmbH

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Bosch Software Innovations GmbH, the Bosch Groups software and systems house, designs,
develops, and operates innovative software and system solutions that help our customers around
the world both in the Internet of Things and in the traditional enterprise environment. We place
particular focus on the topics of mobility, energy, manufacturing, and smart home. Our software
suite is the perfect foundation not only for projects relating to the Internet of Things but also for
projects in the fields of Device Management (M2M), Business Process Management (BPM) and
Business Rules Management (BRM).
With some 500 associates worldwide, Bosch Software Innovations has locations in Germany
(Berlin, Immenstaad, and Stuttgart), Singapore, China (Shanghai), and the United States
(Chicago and Palo Alto).
More information can be found at www.bosch-si.com, www.twitter.com/BoschSI,
www.blog.bosch-si.com.

The Bosch Group is a leading global supplier of technology and services. In 2013, its roughly
281,000 associates generated sales of 46.1 billion euros. (NB: Due to a change in accounting
policies, the 2013 figures can only be compared to a limited extent with the 2012 figures). Its
operations are divided into four business sectors: Automotive Technology, Industrial Technology,
Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert
Bosch GmbH and its more than 360 subsidiaries and regional companies in some 50 countries. If
its sales and service partners are included, then Bosch is represented in roughly 150 countries.
This worldwide development, manufacturing, and sales network is the foundation for further
growth. In 2013, the Bosch Group invested some 4.5 billion euros in research and development
and applied for some 5,000 patents. This is an average of 20 patents per day. The Bosch
Groups products and services are designed to fascinate, and to improve the quality of life by
providing solutions which are both innovative and beneficial. In this way, the company offers
technology worldwide that is Invented for life.
Additional information is available online at www.bosch.com, www.bosch-presse.de,
www.twitter.com/BoschPresse.

Europe
Bosch Software Innovations GmbH
Schneberger Ufer 8991
10785 Berlin
Germany
Tel. +49 30 726112-0
Fax +49 30 726112-100
www.bosch-si.de

Bosch Software Innovations GmbH

America
Bosch Software Innovations Corp.
161 N. Clark Street
Suite 3550
Chicago, Illinois 60601/USA
Tel. +1 312 368-2500
Fax +1 312 268-6286
www.bosch-si.com

Asia
Bosch Software Innovations
c/o Robert Bosch (SEA) Pte Ltd.
11 Bishan Street 21
Singapore 573943
Tel. +65 6571 2220
Fax +65 6258 4671
www.bosch-si.sg

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