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CNP Assurances: Financial Indicators for the First Nine Months of 2012

PARIS, November 14, 2012 /PRNewswire/ --

Revenue: €19.4bn (down 14%)
Net insurance revenue: €2,283m (up 4%)
Recurring net profit: stable at €755m
Attributable net profit: €783m (up 42%)
Solvency capital: 2.54x required capital including unrealised gains
Further sales of peripheral euro zone sovereign debt securities

CNP Assurances, the leading personal insurer in France, with operations in the rest of Europe and in South America, has announced its revenue and results for the first nine months of 2012. These indicators were approved for publication by the Board of Directors at its meeting on 13 November 2012.

HIGHLIGHTS

  • Revenue down 14.1%, reflecting declines of 18.1% in Savings and 16.8% in Pensions:
    • France: down 10.4% in a market down 14.0% (like-for-like)
    • International: down 24.5% due to Southern Europe.
  • Net insurance revenue up 4.2%:
    • France[1] down 7.9%, reflecting non-recurring factors linked to falling interest rates
    • International[1] up by a healthy 12.9%
  • Recurring net profit stable at €755 million. Attributable net profit up 42.3% at €783 million, supported by favourable financial market conditions
  • Further reductions in peripheral euro zone sovereign debt assets:
    • French portfolio's gross exposure reduced to €12.7 billion at 30 September 2012 from €19.2 billion at 31 December 2011.

1. Business review for the first nine months of 2012[2]


In the first nine months of 2012, consolidated revenue contracted by 14.1% to €19.4 billion. The decline continued the trend observed in the first half and mainly concerned the Savings and Pensions businesses.

                                              IFRS
                         2012       2011      % change        % change
    (EURm)            (9 months) (9 months)  (reported)  (like-for-like(1))
    Savings            12,550.5   15,327.3     - 18.1          -18.1
    Pensions            2,364.9    2,843.3     - 16.8          -14.1
    Personal Risk       1,474.2    1,496.4      - 1.5           -0.1
    Term Creditor
    Insurance           2,343.6    2,283.3      + 2.6          + 3.3
    Health Insurance      392.1      364.3      + 7.6          + 7.7
    Property &
    Casualty              268.8      255.7      + 5.1         + 10.4
    TOTAL              19,394.0   22,570.4     - 14.1          -13.5


(1) Average exchange rate for Brazil:

At 30/09/2012: €1 = BRL2.456

At 30/09/2011: €1 = BRL2.311

International operations accounted for one-fifth of total revenue, with 56% generated in South America. The 24.5% decline in international revenue for the first nine months was due to the high basis of comparison in Ireland (with last year's sale of a major group pensions contract), unfavourable exchange rates in Brazil and sharply lower revenue in Southern Europe.

    (EURm)                                   IFRS
                        2012       2011      % change        % change
                     (9 months) (9 months)  (reported)  (like-for-like(1))
    France            15,674.2   17,644.7     -11.2           -11.2
    Italy (2)          1,094.7    1,659.1     -34.0           -34.0
    Portugal (3)          27.6      200.3     -86.2           -86.2
    Brazil             2,071.9    2,125.5      -2.5            +3.6
    Argentina             43.7       19.9    +119.2          +117.4
    Spain (4)            285.3      312.4      -8.7            -8.7
    Cyprus               136.5      157.9     -13.6           -13.6
    Ireland               54.6      449.6     -87.9           -87.9
    Other Europe (5)       5.5        0.8         -               -
    Sub-total
 
    International      3,719.8    4,925.6     -24.5           -21.9
    TOTAL             19,394.0   22,570.4     -14.1           -13.5


(1) Average exchange rate for Brazil:

At 30/09/2012: €1 = BRL2.456

At 30/09/2011: €1 = BRL2.311

(2) CNP Italia branch, CNP UniCredit Vita and CNP BVP Italy

(3) CNP BVP Portugal

(4) CNP España branch,  CNP Vida and CNP BVP Spain

(5) Including Greece since September 2012



In a French market down by €5.1 billion, CNP Assurances reported a €700 million net outflow of funds, representing considerably less than its market share. This outperformance was mainly attributable to La Banque Postale's resilience and to CNP Assurances's presence in the group insurance segment which stayed on an upward trajectory. In all, net new money was a negative €600 million across the Group. However, average technical reserves (excluding deferred participation) continued to grow, rising by 2.3% versus the first nine months of 2011 to €291.6 billion.

  • France

In France, revenue for the first nine months amounted to €15.7 billion, down 11.2% as reported and 10.4% on a French GAAP basis. Despite the decline - mainly concerning the Savings business - the Group significantly outperformed the French savings and pensions market which contracted by 14.0% compared with the first nine months of 2011.

While the Savings and Pensions segments remained difficult, with unit-linked sales down by a steep 42.6%, the Group continued to perform well in the term creditor insurance segment, reporting a 7.0% increase in revenue.

 

  A. La Banque Postale


La Banque Postale's contribution to nine-month revenue was down 6.0% at €6,826 million and net new money was at break-even. This represented a particularly resilient performance in a market where new money was down 14% and net new money was a negative €5.1 billion. Sales of term creditor insurance remained strong. In the personal risk segment, La Banque Postale maintained its momentum with the number of contracts sold rising by 14%, lifted by strong demand for the Prémunys and Sérénia term life insurance offers.

 

  B. Caisses d'Epargne


The revenue contribution of the Caisses d'Epargne (savings banks) dropped by 22.4% to €5,286 million as a result of stiff competition from products offered by the banks, particularly in the Savings segment. Unit-linked sales fell by 53.3% reflecting a reduced emphasis on selling unit-linked bond funds compared with 2011. However, the network's contribution to personal risk revenues nearly doubled, with over 180,000 policies sold during the period. Term creditor insurance business also continued to grow, contributing €502 million to revenue.

 

  C. CNP Trésor


CNP Trésor's revenue contribution declined by 7.6% to €434 million.  Its distribution model based on a team of local insurance advisors helped the network to withstand the sharp contraction in the French life insurance market.

 

  D. Financial institutions


The wait-and-see attitude among homebuyers in France led to an overall decline in home purchases during the period. Despite this challenging environment, the revenue contribution of the Financial Institutions partnership centre rose by 3.3% to €1,102 million. The period-on-period growth was mainly due to the fact that new business accounts for only a small proportion of total revenue. It also reflected the maturity of the partners' main portfolios.

 

  E. Companies and Local Authorities


Revenue generated with companies and local authorities amounted to €1,273 million, an increase of 2.6%. In the personal risk segment, for both companies and local authorities the Group focused on improving margins by adjusting rates.

 

  F. Mutual insurers


The revenue contribution from mutual insurers amounted to €700 million, down 4.4%. Growth initiatives focused mainly on developing optional supplementary long-term care insurance business with MGEN.

  • International operations

At €3.7 billion, revenue from international operations for the first nine months was down 24.5% on the year-earlier period (21.9% at constant exchange rates), due mainly to the decline in business in Southern Europe.

The decrease in international revenue was offset by a favourable shift in the product mix towards risk protection insurance.

 

  A. South America


  • Caixa Seguros (Brazil)

Caixa Seguros's revenue rose 3.6% in local currency to BRL 5,088 million. However, the subsidiary's contribution to consolidated revenue was down 2.5% due to the real's decline against the euro.  

While Savings and Pensions business was affected by competition from products offered by the banks, term creditor insurance continued to grow, rising 21.7% in real. In all, revenues from personal risk insurance, term creditor insurance and property and casualty insurance rose by an average 14% and accounted for over a third of total revenues.

Revenues from the health insurance business launched at the end of 2011 amounted to BRL 15.9 million for the first nine months of 2012.

 

  B. Southern Europe


  • CNP UniCredit Vita (Italy)

After a strong first half, CNP UniCredit Vita experienced a severe loss of momentum in the third quarter, with the result that revenues for the first nine months were down 33.2%. Pensions and Personal Risk revenues nevertheless rose by 3.3% and 24.7% respectively.

  • CNP Barclays Vida y Pensiones (Portugal, Spain, Italy)

In Southern Europe's very depressed economic environment, CNP BVP experienced a steep 47.7% drop in revenue to €309.4 million. All business lines were hit to a similar extent, although it is important to note that the basis of comparison was very high after revenue more than doubled in 2011. The only exception was the personal risk business, which grew by nearly 7% albeit from a still limited base.

  • CNP Laiki Insurance Holdings[3] (Cyprus)

The 10.1% decline in this subsidiary's revenue was mainly due to the high prior year basis of comparison which included revenue of €8.8 million from a single premium contract.

 

2. Results for the first nine months of 2012

                                       2012       2011
 
    (EURm)                          (9 months) (9 months) % change
 
                     Premium income  19,394.0   22,570.4   -14.1%
    Change in average technical
    reserves (excluding deferred
    participation)                    291,568    284,895    +2.3%
            Net insurance revenue*      2,283      2,191    +4.2%
    - Expenses                            661        666    -0.7%
                               EBIT     1,622      1,525    +6.3%
    - Finance costs                      (115)      (109)   +5.7%
    - Income tax expense                 (531)      (468)  +13.5%
    - Minority interests                 (220)      (193)  +14.4%
      Attributable recurring profit       755        756    -0.1%
    Net realised gains on equities
    and investment property                93       (174)      -
    Fair value adjustments to
    trading securities                    143        (32)      -
    Non-recurring items                  (209)         0       -
            Attributable net profit       783        550   +42.3%


*Net insurance revenue at constant exchange rates: up 7.9%

 

Net insurance revenue rose 4.2% in the first nine months of 2012 compared with the year-earlier period.

In France, net insurance revenue (excluding own-funds portfolios) was down 7.9% due to non-recurring factors[4]. The underlying change was an increase of 5.2%. Net insurance revenue from international operations rose 12.9% despite the negative currency effect in Brazil. Their contribution to total net insurance revenue (excluding own-funds portfolios) was 50% for the first nine months of 2012 versus 45% for the same period of 2011.

Expenses decreased by 0.7%. In France, expenses were down by 2.8%, while in international operations expenses rose compared with the first nine months of 2011, mainly in Brazil due to the costs of growing the business and amortizing strategic projects.

EBIT rose 6.3%. Subsidiaries outside France accounted for 44% of the total, helped by an increased contribution from Caixa Seguros.

Net capital gains generated under the multi-year profit taking programme concerned equities and investment property and amounted to €93 million. Fair value adjustments to trading securities represented a positive €143 million.

Profit for the period was adversely affected by net non-recurring expenses of €209 million, corresponding mainly to transfers to the policyholders' surplus reserve.

Net profit attributable to equity holders of the parent for the first nine months of 2012 amounted to €783 million, an increase of 42.3% on the year-earlier period.

 

3. Solvency capital


Required capital under Solvency I was covered 1.12 times at 30 September 2012 before taking into account unrealised capital gains. This was slightly below the 30 June coverage rate, due to an increase in required capital during the third quarter. Including unrealised capital gains, required capital was covered 2.54 times.

As announced on 16 October, CNP Assurances has placed USD 500 million worth of perpetual subordinated notes, mainly with Asian investors. The notes will be included in equity for the calculation of the coverage rate at 31 December 2012.

 

4. Investment policy


The Group is continuing to follow a prudent investment policy. The French portfolio's exposure to peripheral euro zone sovereign debt was reduced to €12.7 billion at 30 September 2012, with a further reduction in October.

CNP Assurances's regulated information can be downloaded from the Group's investor information website  http://www.cnp-finances.fr 

 

APPENDICES

REVENUE BY PARTNERSHIP CENTRE

    (EURm)                        IFRS                 French GAAP
                             2012     2011            2012     2011
 
                              (9       (9      %       (9       (9      %
                           months)  months)  change months)  months)  change
    La Banque Postale      6,826.3  7,260.0   -6.0  6,827.6  7,262.1   -6.0
    Savings Banks          5,285.8  6,811.1  -22.4  5,286.8  6,812.4  -22.4
    CNP Trésor               433.6    469.4   -7.6    433.6    469.4   -7.6
    Financial Institutions
    France                 1,102.5  1,067.2    3.3  1,102.5  1,067.2    3.3
    Mutual Insurers          700.2    732.4   -4.4    700.2    732.4   -4.4
    Companies & Local
    Authorities            1,273.5  1,241.5    2.6  1,496.4  1,337.7   11.9
    Other (France)            52.3     63.1  -17.2     52.3     63.1  -17.2
    TOTAL France          15,674.2 17,644.7 -11.17 15,899.5 17,744.4 -10.40
    CNP Seguros de Vida
    (Argentina) (1)           43.7     19.9  119.2     43.7     19.9  119.2
    CNP Vida (Spain)         123.2    123.3  - 0.0    123.7    123.3    0.3
    Caixa Seguros (Brazil)
    (1)                    2,071.9  2,125.5  - 2.5  2,392.6  2,439.2  - 1.9
    CNP UniCredit Vita
    (Italy)                  932.4  1,395.9 - 33.2  1,110.8  1,653.7 - 32.8
    CNP Laiki Insurance
    Holdings (Cyprus)        142.0    157.9 - 10.1    142.8    166.7 - 14.4
    CNP Europe (Ireland)      54.6    449.6 - 87.9     54.6    449.6 - 87.9
    CNP BVP
    (Portugal-Spain-Italy)   309.4    591.7 - 47.7    401.5    664.8 - 39.6
    Financial Institutions
    outside France (2)           -      3.3      -        -      3.3      -
    Branches                  42.5     58.5 - 27.2     42.5     58.5  -27.2
    TOTAL International    3,719.8  4,925.6 - 24.5  4,312.1  5,579.1  -22.7
    TOTAL                 19,394.0 22,570.3 - 14.1 20,211.6 23,323.5  -13.3


(1) Average exchange rates: Argentina: €1 = ARS5.716    -    Brazil: €1 = BRL2.456

(2) The business of writing term creditor insurance for Cofidis under the EU freedom of services
directive was discontinued on 1 January 2011 and the related contracts no longer generate any revenues.

 

UNIT-LINKED SALES

                                      IFRS                   French GAAP
                                       2011              2012    2011
                              2012
                                        (9                (9      (9      %
    (EURm)                 (9 months) months) % change months)  months) change
    La Banque Postale        336.7     407.0   - 17.3   338.1    409.2  - 17.4
    Savings Banks            478.3   1,024.5   - 53.3   479.3  1,025.7  - 53.3
    CNP Trésor                10.8      18.4   - 41.1    10.8     18.4  - 41.1
    Other (France)             2.5       4.5   - 43.6     2.5      4.5  - 43.6
    Total individual
    products France          828.4   1,454.5   - 43.0   830.7  1,457.8  - 43.0
    Group products France     16.1      17.8    - 9.5   239.0     99.9   139.3
    TOTAL France             844.5   1,472.3   - 42.6 1,069.8  1,557.7  - 31.3
    CNP UniCredit Vita       316.9     643.2   - 50.7   495.3    901.1  - 45.0
    Caixa Seguros          1,068.4   1,233.1   - 13.4 1,068.4  1,233.1  - 13.4
    CNP Vida                  63.2      60.9      3.6    63.2     60.9     3.6
    CNP Laiki Insurance
    Holdings                  45.3      49.7    - 8.9    45.5     57.8  - 21.3
    CNP Europe                 4.8       5.9   - 18.6     4.8      5.9  - 18.6
    CNP BVP
    (Portugal-Spain-Italy)    26.5     127.1   - 79.1   118.7    200.2  - 40.7
    TOTAL International    1,525.1   2,119.9   - 28.1 1,795.7  2,459.1  - 27.0
    TOTAL unit-linked      2,369.7   3,592.2   - 34.0 2,865.6  4,016.8  - 28.7



 

BREAKDOWN BY INSURANCE CATEGORY

                              IFRS                       French GAAP
                    2012       2011                2012       2011
 
    (EURm)       (9 months) (9 months) % change (9 months) (9 months) % change
    Individual
    Insurance     14,821.6   17,591.2   - 15.7   15,415.3   18,247.4   - 15.5
    Group
    Insurance      4,572.8    4,979.2    - 8.2    4,796.3    5,076.1    - 5.5
    Total         19,394.0   22,570.4   - 14.1   20,211.6   23,323.5   - 13.3




REVENUE BY COUNTRY AND BY BUSINESS SEGMENT

                                                                         
                                                                  Personal    
                                 Savings          Pensions          Risk             
                             9 mos.            9 mos.            9 mos.    %   
    In EURm (IFRS)             2012    % chg.   2012    % chg.     2012   chg.   
    France                  11,250.9  - 15.9  1,034.1     5.7   1,094.5 - 3.3 
    Italy (1)                  985.8  - 31.8     12.7     3.3       7.1  24.7   
    Portugal (2)                10.8  - 94.1      0.0      NS       0.9    NS    
    Other Europe (3)             2.9      NS      0.0      NS       0.0    NS    
    Brazil                      56.5   - 6.4  1,217.0   - 8.3     334.7   3.8   
    Argentina                    4.0    41.1      0.0      NS       8.4  56.7 
    Spain (4)                  188.5     5.1     51.2  - 37.5       8.1 - 3.8 
    Cyprus                      46.4  - 26.5      0.0      NS      20.6 - 7.6  
    Ireland                      4.8  - 18.6     49.8  - 88.8       0.0    NS   
    Sub-total International  1,299.6  - 33.1  1,330.8  - 28.6     379.7   4.3 
    TOTAL                   12,550.5  - 18.1  2,364.9  - 16.8   1,474.2 - 1.5


(continued)


   
                                                      Property
                    Term Creditor       Health            &
                      Insurance       Insurance       Casualty         Total
                     9 mos.  % chg.  9 mos.  % chg. 9 mos. % chg.  9 mos. & chg.
    In EURm (IFRS)    2012            2012           2012           2012
    France           1,925.8    7.0   368.9   6.1    0.0   NS   15,674.2  - 11.2
    Italy               89.2 - 54.6     0.0    NS    0.0   NS    1,094.7  - 34.0
    Portugal (1)        15.8    4.4     0.0    NS    0.0   NS       27.6  - 86.2
    Other Europe (2)     2.3  177.0     0.3    NS    0.0   NS        5.5   566.1
    Brazil  (3)        241.5   14.5     6.5    NS  215.8  5.3    2,071.9   - 2.5
    Argentina           31.4  166.1     0.0    NS    0.0   NS       43.7   119.2
    Spain               37.5 - 12.5     0.0    NS    0.0   NS      285.3   - 8.7
    Cyprus (4)           0.0     NS    16.5 - 1.4   53.0  4.4      136.5  - 13.6
    Ireland              0.0     NS     0.0    NS    0.0   NS       54.6  - 87.9
    Sub-total 
    International      417.8  - 13.5   23.2  39.0  268.8  5.1    3,719.8  - 24.5 
    TOTAL            2,343.6     2.6  392.1   7.6  268.8  5.1   19,394.0  - 14.1
(1) CNP Italia branch, CNP UniCredit Vita and CNP BVP Italy
(2) CNP BVP Portugal
(3) Cofidis Romania, Belgium, Czech Rep., Greece
(4) CNP Spain branch, CNP Vida and CNP BVP Spain

CNP UNICREDIT VITA REVENUE
                             IFRS             French GAAP
                         2012                2012
    (EURm)            (9 months) % change (9 months) % change
    Savings             879.5     - 32.0    1,057.8    - 31.8
    Pensions             12.7        3.3       12.7       3.3
    Personal Risk         7.1       24.7        7.1      24.7
    Term Creditor
    Insurance            33.1     - 60.6       33.1    - 60.6
    TOTAL               932.4     - 33.2    1,110.8    - 32.8

CAIXA SEGUROS REVENUE

                             IFRS             French GAAP
                         2012                2012
    (BRLm)            (9 months) % change (9 months) % change
    Savings             138.6     - 0.8      926.0      7.1
    Pensions          2 988.4     - 2.6    2 988.4    - 2.6
    Personal Risk       821.9      10.4      821.9     10.4
    Term Creditor
    Insurance           593.0      21.7      593.0     21.7
    Property &
    Casualty            529.8      12.0      529.8     12.0
    Health Insurance     15.9                 15.9
    TOTAL             5 087.7      3.6     5 875.0      4.2

CNP BVP REVENUE

                             IFRS             French GAAP
                         2012                2012
    (EURm)            (9 months) % change (9 months) % change
    Savings             206.1     - 49.6    298.2     - 38.1
    Pensions             46.0     - 41.1     46.0     - 41.1
    Personal Risk         8.9        6.8      8.9        6.8
    Term Creditor
    Insurance            48.4     - 49.9     48.4     - 49.9
    TOTAL               309.4     - 47.7    401.5     - 39.6



2013 Investor calendar
  • 2012 revenue and results: Wednesday, 22 February 2013 at 7:30 am
  • Annual General Meeting: Thursday, 25 April at 2:30 pm
  • First quarter 2013 revenue and profit indicators: Thursday, 16 May 2013 at 7:30am
  • First-half 2013 revenue and results: Friday, 26 July 2013 at 7:30 am
  • Nine-month 2013 revenue and profit indicators: Friday, 15 November 2013 at 7:30 am


Disclaimer: Some of the statements contained in this press release may 
be forward-looking statements referring to projections, future events, trends or 
objectives that, by their very nature, involve inherent risks and uncertainties. 
Actual results could differ materially from those currently anticipated in such 
statements by reason of factors such as changes in general economic conditions 
and conditions in the financial markets, legal or regulatory decisions or 
changes, changes in the frequency and amount of insured claims, particularly as 
a result of changes in mortality and morbidity rates, changes in surrender 
rates, interest rates, foreign exchange rates, the competitive environment, the 
policies of foreign central banks or governments, legal proceedings, the effects 
of acquisitions and the integration of newly-acquired businesses, and general 
factors affecting competition. Further information regarding factors which may 
cause results to differ materially from those projected in forward-looking 
statements is included in CNP Assurances' filings with the Autorité des Marchés 
Financiers. CNP Assurances does not undertake to update any forward-looking 
statements presented herein to take into account any new information, future 
event or other factors.

 

--------------------------------------------------

1. Excluding revenues from own funds portfolios

2. Unless otherwise stated, all data are presented on an IFRS basis

3. Following the partner's name change, CNP Marfin Insurance Holdings (CNP 
MIH) was renamed CNP Laiki Insurance Holdings (CNP LIH)

4. Mainly the effects of lower interest rates.

 



Contacts:


CNP Assurances
Florence de MONTMARIN
+33(0)1-42-18-86-51


Tamara BERNARD
+33(0)1-42-18-86-19
[email protected]


Contacts for Analysts & Investors:
CNP Assurances
Jim 
ROOT
+33(0)1-42-18-71-89


Annabelle BEUGIN-SOULON
+33(0)1-42-18-83-66


Jean-Yves ICOLE
+33(0)1-42-18-94-93
[email protected]






SOURCE CNP Assurances

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The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example t...
An entirely new security model is needed for the Internet of Things, or is it? Can we save some old and tested controls for this new and different environment? In his session at @ThingsExpo, New York's at the Javits Center, Davi Ottenheimer, EMC Senior Director of Trust, reviewed hands-on lessons with IoT devices and reveal a new risk balance you might not expect. Davi Ottenheimer, EMC Senior Director of Trust, has more than nineteen years' experience managing global security operations and assessments, including a decade of leading incident response and digital forensics. He is co-author of t...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrategies, will examine why IT must finally fulfill its role in support of its SBUs or face a new round of...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device experiences grounded in people's real needs and desires.
Enthusiasm for the Internet of Things has reached an all-time high. In 2013 alone, venture capitalists spent more than $1 billion dollars investing in the IoT space. With "smart" appliances and devices, IoT covers wearable smart devices, cloud services to hardware companies. Nest, a Google company, detects temperatures inside homes and automatically adjusts it by tracking its user's habit. These technologies are quickly developing and with it come challenges such as bridging infrastructure gaps, abiding by privacy concerns and making the concept a reality. These challenges can't be addressed w...
The Domain Name Service (DNS) is one of the most important components in networking infrastructure, enabling users and services to access applications by translating URLs (names) into IP addresses (numbers). Because every icon and URL and all embedded content on a website requires a DNS lookup loading complex sites necessitates hundreds of DNS queries. In addition, as more internet-enabled ‘Things' get connected, people will rely on DNS to name and find their fridges, toasters and toilets. According to a recent IDG Research Services Survey this rate of traffic will only grow. What's driving t...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective storage designed to handle the massive surge in back-end data in a world where timely analytics is e...
We are reaching the end of the beginning with WebRTC, and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) i...
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
Bit6 today issued a challenge to the technology community implementing Web Real Time Communication (WebRTC). To leap beyond WebRTC’s significant limitations and fully leverage its underlying value to accelerate innovation, application developers need to consider the entire communications ecosystem.
The definition of IoT is not new, in fact it’s been around for over a decade. What has changed is the public's awareness that the technology we use on a daily basis has caught up on the vision of an always on, always connected world. If you look into the details of what comprises the IoT, you’ll see that it includes everything from cloud computing, Big Data analytics, “Things,” Web communication, applications, network, storage, etc. It is essentially including everything connected online from hardware to software, or as we like to say, it’s an Internet of many different things. The difference ...
Cloud Expo 2014 TV commercials will feature @ThingsExpo, which was launched in June, 2014 at New York City's Javits Center as the largest 'Internet of Things' event in the world.