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What Drives Industry in 2017?

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It’s big. It’s by far the biggest industrial automation show in Germany, in Europe, and possibly in the world. It’s SPS IPC Drives. “SPS” is German for PLC (Programmable Logic Controller), “IPC” stands for Industrial Process Control, and “Drives” are tools that control the speed of machinery. It comprises a dozen exhibition halls, each one practically a trade show in itself, filled with gigantic, colorful booths displaying robots, machines, and control system components. It’s where thousands of engineers, system integrators, machine builders and parts vendors gather for a massive show-and-tell featuring the latest and greatest—sensors, actuators, controllers, software, services and more.

The Cogent/Skkynet display was part of the OPC Foundation exhibit at the show, in the communications technologies hall. We had a demo of our completely integrated solution for Industrial IoT data communication and OPC UA (Unified Architecture), from embedded devices with ETK, to the factory floor with DataHub, to our SkkyHub service running in the cloud. We attracted plenty of interest, particularly for our ability to access data from inside a plant without opening any firewall ports, and using no VPNs.

Other exhibits featured IoT, and a few had working demos similar to ours, showing how they could put data from a sensor into the cloud. But there were significant differences. Most of them did not have bidirectional communication, and all of them had to make compromises on security and robust connectivity.

Data Communication must be Secure…

The two technologies most frequently mentioned for data communications were OPC UA and MQTT. Most users are finding out that OPC UA by itself cannot serve as an IIoT protocol, because like every industrial protocol, it functions on a client-server basis. An OPC UA client outside the plant needs an open firewall port at the plant to connect to an OPC UA server inside. This is inherently insecure, since any hacker could also enter the plant through that open firewall port. To surmount this obstacle, a number of companies have turned to the MQTT messaging protocol. Its publish/subscibe architecture allows it to make outbound connections. That does keep firewall ports closed, but MQTT is not suitable for IIoT for other reasons. Notably, it cannot guarantee data consistency.

… and Robust

Funnily enough, when you bring this up, people catch on quickly. I walked around the show and talked to people who had IIoT on their posters and brochures, who were demonstrating IIoT devices, and offering IIoT cloud services. Companies large and small, including some of the biggest names in the industry, are using or promoting MQTT or its close cousin, AMQP. And yet when I pointed out to them how MQTT is unable to guarantee consistent data, they soon understood. Everyone acknowledged that if an MQTT connection from a data source is broken, the data user will not know that his or her data may no longer be valid. “Isn’t that a problem? Couldn’t it be dangerous?” I would ask. “Yes,” they would admit, “but there isn’t any other way.”

Another Way

Finding out that there is another way opened a few eyes. People coming to our booth and those we met throughout the show were surprised and pleased to find out that there actually is a way to maintain a secure, robust connection for IIoT. There is no need to open any firewall ports or to use a VPN, and yet you can guarantee consistency of the data between the server and the client. All you need is the right technology, secure by design. Our task for the coming months is to continue sharing this message with the 1500+ exhibitors and 70,000+ visitors at SPS IPC Drives, along with anyone else who wants to connect industrial process control systems to the IoT.

Some Notable Industrial IoT Applications

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After years of riding high on the Gartner Hype Cycle, Industrial IoT (IIoT) is beginning to take shape in various ways.  Early adopters tend to be large companies who have identified specific applications in which IoT connectivity provides an immediate advantage.  The Internet of Things Institute recently named Top 20 Industrial IoT Applications, giving an overview of the best of what is happening.  All of these are interesting, and we’d like share our thoughts on a few that you may not have heard of elsewhere.

Compressed Air as a Service

The Kaeser Kompressoren company in Germany has been manufacturing and selling air compressors for almost 100 years.  Lately they have adopted an IIoT perspective, and have changed their business model.  Now they provide compressed air as a service.  Instead of selling their equipment, they install it at a customer site and sell its ability to compress air.

Among other things, this requires a mental shift when calculating where their revenues come from.  Previously, when the customer owned the machinery, Kaeser could make money on repair services.  Now that Kaeser owns the equipment, repairs have become a cost center, and it is in their interest to keep those costs as low as possible.  Since they they started working under this business model, the company has been using IIoT technologies to sustain a healthy predictive maintenance (PdM) program.  The cost savings revert directly to Kaeser.

This ability to adapt, to transform business models and capitalize on the Industrial IoT applications will set the leaders apart from the followers in the next few years as the IIoT moves from hype to reality.

Keeping Track of Tools

How many screws does it take to build a commercial airliner?  How tightly must each one be turned?  What’s the right tool for the job, and how should it be calibrated?  A joint IIoT project between Bosch, Cisco, National Instruments, and Tech Mahindra coordinated through the Industrial Internet Consortium is demonstrating the value of the IIoT in answering those questions.

At a testbed location that simulates aircraft assembly, Bosch cordless screwdrivers are connected wirelessly via National Instruments technology and send identification data about themselves, as well as torque data about the screw they are tightening, to a central database.  Their exact physical location is calculated using a triangulation technology from Cisco.  An integration program from a Tech Mahindra program uses the screwdriver’s location data to look up the amount of torque specified for that screw at that location, and configures the screwdriver accordingly.  When the operator moves to a different location on the aircraft body to drive other types of screws, the screwdriver gets reconfigured automatically and precisely.

These four companies working together highlight the value of cooperation in developing Industrial IoT applications, especially at the beginning stages.  Many successful early adopters have emphasized the value of partnerships and collaboration.  Those who take a do-it-yourself approach often find the IoT more complicated to implement than expected.

Automated Mining and Haulage Systems

The largest private railroad in Australia with over 1,700 kilometres of track is owned and operated by the Rio Tinto mining company.  Using IIoT technologies, the company is now running unmanned, autonomous trains along this line, hauling iron ore from mines in the Pilbara region to ports along the north coast.  The pilot project will be expanded to full service next year, as the world’s first fully-autonomous heavy haul, long distance railway system.

This initiative is just one of several IIoT-related initiatives that Rio Tinto is developing.  They are also pioneering in the operation of autonomous trucks and drilling systems for their mines, and are even looking at self-navigating ships to cut the cost of delivering their products worldwide.

Not every company is in Rio Tinto’s position, but their broad vision, wide range of IoT applications, and obvious success can be an inspiration for all of us.  The message is clear: Industrial IoT is not only possible, it is profitable.  Learning from these examples, anyone venturing into this space needs to consider the opportunities and challenges unique to their industry and company, learn how and when to work with others, and then start taking action to gain the maximum benefit from Industrial IoT.

Skkynet Technology Soon Available in iBRESS Cloud by BellChild

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Japanese systems integration company, BellChild, will use Skkynet’s SkkyHub technology in its new iBRESS Cloud service, available next month.

Mississauga, Ontario, November 8, 2017 – Skkynet Cloud Systems, Inc. (“Skkynet” or “the Company”) (OTCQB: SKKY), a global leader in real-time cloud information systems, is pleased to announce that starting December 1, 2017, BellChild Ltd. of Osaka, Japan will be offering iBRESS Cloud service that will be powered by Skkynet’s SkkyHub technology. This service will provide secure, real-time, bidirectional communications for Industrie 4.0 and Industrial IoT applications without opening any firewall ports, and without using any VPN.

“The iBRESS Cloud is an ideal fit for Japan’s well-established industrial base, and for the rest of Asia,” said Paul Thomas, President of Skkynet. “BellChild has a solid reputation for providing secure data communication services, and the iBRESS Cloud technology has been designed to provide the kind of secure, high-speed service that remote connections to industrial systems demand.”

Users of iBRESS Cloud will be able to securely connect industrial plants, machines, or individual sensors and actuators to a complete Industrie 4.0 or IIoT system.  BellChild customers will thus be able to monitor and control their industrial processes in real time, from a web page or mobile phone, as well as log data directly to any database or Big Data repository.  The service requires no programming, and allows users to seamlessly integrate existing systems using standard protocols, while incrementally adding Industrie 4.0 or IIoT capability as needed.

The basis for the iBRESS and SkkyHub services is Skkynet’s patented technology for secure, outbound-only connections, making it fully compatible with corporate IT policies, and ensuring no exposed attack surface – no open firewall ports, no VPN, and no extra hardware.  It provides Industrie 4.0 and IIoT connectivity at in-plant networking speeds of microseconds over network latency, and processes up to 50,000+ data changes per second.

About BellChild

BellChild is a system integration company focusing on secure system development, robust infrastructure development, and advanced operations capabilities.  The company develops and maintains secure servers used to support high-speed financial transactions, which is also used to provide a robust and secure platform to support industrial cloud-based systems in the form of iBRESS™ Cloud service.  For more information, see http://www.bell-c.co.jp/.

About Skkynet

Skkynet Cloud Systems, Inc. (OTCQB: SKKY) is a global leader in real-time cloud information systems. The Skkynet Connected Systems platform includes the award-winning SkkyHub™ service, DataHub®, WebView™, and Embedded Toolkit (ETK) software. The platform enables real-time data connectivity for industrial, embedded, and financial systems, with no programming required. Skkynet’s platform is uniquely positioned for the “Internet of Things” and “Industry 4.0” because unlike the traditional approach for networked systems, SkkyHub is secure-by-design. For more information, see https://skkynet.com.

Safe Harbor

This news release contains “forward-looking statements” as that term is defined in the United States Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements, including beliefs, plans, expectations or intentions regarding the future, and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors, such as the inherent uncertainties associated with new business opportunities and development stage companies. Skkynet assumes no obligation to update the forward-looking statements. Although Skkynet believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate. Investors should refer to the risk factors disclosure outlined in Skkynet’s annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the U.S. Securities and Exchange Commission.

Leveraging the IIoT for Asset Performance Management (APM)

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How well is our equipment performing?  Are we getting the best mileage from it?  When will machine/pump/motor X fail?  What can we do better?  How can we even find out?  These are the kinds of questions that keep production managers awake at night, and that may eventually lead them to consider implementing Asset Performance Management.

The term “Asset Performance Management” or APM, has been broadly defined by MESA International as “an approach to managing the optimal deployment of assets to maximize profitability and predictability in product supply.”  In other words, APM means making sure your equipment works, and works well.

The need for APM is clear.  Asset failure costs millions of dollars in lost production each year.  But that’s not all.  Workers who lack of critical data about the state of their equipment can make expensive mistakes.  Broken or poorly-functioning machinery can cause accidents.  Failure to manage assets properly will eventually lead to higher insurance costs.

A New Approach to APM

Until recently, APM has been used mainly for high-cost, mission-critical machinery.  Data collection was based on scheduled manual readings of sensors mounted on machines, a costly, time-consuming effort.  Performance stats for less expensive assets were typically derived from plant walk-throughs, operator experience, and educated guesses.  In some cases it was more cost effective to simply allow equipment to run until failure, and then replace it.

The advent of the IIoT is changing all of that.  As the cost of sensors drop, as wireless technologies improve, and as Big Data systems come online, it is now becoming cost-effective to monitor more and smaller assets, and do it in real time.  Doing APM in real time allows managers to run advanced analytics on the data, and do predictive maintenance.  Now, instead of shutting down a process to replace a burnt-out fan motor, or guessing when the motor might need to be replaced, an engineer can run the motor until just before failure, and then switch it out at the optimal time.

Early Adopters

Commenting about APM, Rich Carpenter, the Chief Technology Strategist for GE Intelligence Platforms, said, “The purpose of running advanced analytics is to have early detection of problems, so that we can prevent in real time, rather than react in real time.”  GE follows a simple, four-step process for IoT-based APM:

  1. Connect to sensors on the plant equipment or for the control system.
  2. Send the sensor data via DMZ or other protected environment to the cloud.
  3. Organize the data, according to type of customer, site, machine, etc.
  4. Run advanced analytics to manage the assets.

Hartford Steam Boiler (HSB), an industrial insurance company, has a vision that IoT-powered APM may transform their business into becoming an industrial service provider.  Instead of simply insuring against mechanical failure, by putting IoT-connected sensors on their customers equipment, the company can check performance, find the risk of breakdown, and recommend timely replacement or repair.  “The Internet of Things is the next industrial revolution and we have to position ourselves,” said Greg Barats, CEO of HSB.  “IoT start-ups are a fantastic way of jump-starting your thinking.”

What visionaries like GE and HSB have in common is an understanding of the potential of IIoT to be a game-changer for APM.  We share that vision.  In fact, we see APM as a logical application for IIoT technology, and supply the necessary software and services to securely access the necessary data in real time, to make it happen.

Tech Talk and Action in IIoT Data Communications

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Is summer over already?  It may be hard to accept, but on my morning walks the sun rises later each day, the wind is more brisk, and the leaves are turning yellow and red.  Before fall arrives in earnest, I’d like to share a bountiful harvest of summer activity here at Skkynet.  While most of the world was on holiday and taking it easy for a few weeks, our technical team took the opportunity to jot down some of their thoughts on our specialty: data communication for Industrial IoT.

In this first installment of a new series of Tech Talk blogs, lead developer and company CEO Andrew Thomas discusses IIoT security, data protocols, best practices, and common pitfalls.  He starts by introducing the unique requirements for Industial IoT, and he challenges the assumptions that lead to inherently insecure system design.  He then discusses each of the data protocols often suggested for use in the IIoT: UDP, MQTT, OPC UA, and REST, pointing out the strengths and weaknesses of each.  The best approach, he argues, exhibits the best qualities of these and more, as well as supporting edge and fog processing and public, private, or hybrid clouds.

This is the thinking that underlies SkkyHub, Skkynet’s secure-by-design approach to Industrial IoT.  Combined with our ETK and Cogent DataHub, the result is Industrial IoT that actually works.  You can install it in green field or brownfield projects, and connect to new or existing systems, use open protocols, and provide secure, robust, real-time performance at speeds not much slower than Internet propagation speeds.  And it is available today, right now.

This fall we are putting SkkyHub, DataHub, and ETK on display and into play in several arenas.  We will be at conferences and trade shows in North America, Europe and the Far East, including OPC Foundation Seminars in Vancouver and Toronto, Industry of Things World 2017 in Berlin, Sensors Midwest in Chicago, ARM TechCon in Santa Clara, SPS Drives in Nuremberg, and SCF in Tokyo.  If you are attending any of these, please stop by.

In the field, SkkyHub customers are enjoying the benefits of the service, and some have expressed an interest in sharing their experiences.  We will be blogging about those soon.  Meanwhile, the tech team has shfited back into development mode, and we expect some exciting news from them soon as well.  Summer may be winding down, but Skkynet continues to move rapidly ahead.

Skkynet to Hold OPC UA Sandpit Event in Osaka

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Technology providers from six countries gather in Japan to demonstrate secure Industrial IoT cloud connectivity for OPC UA products.

Mississauga, Ontario, September 12, 2017 – Skkynet Cloud Systems, Inc. (“Skkynet” or “the Company”) (OTCQB: SKKY), a global leader in real-time cloud information systems, is pleased to announce OSP 2017―OPC UA Sandpit―will be held in Osaka, Japan, on September 14, 2017.  This international event will showcase ten OPC UA products from leading industrial automation companies including Wago of Germany, B&R of Austria, Moxa of Taiwan, Comtrol of the USA, Cogent Real-Time Systems of Canada, and Kobata Gauge, Puerto, BellChild, Nissin, and NiC of Japan.  Representatives from these companies will test and demonstrate secure connectivity from their OPC UA enabled devices to the iBRESS Cloud service from BellChild, through closed firewalls and network proxies.

“These companies are at the leading edge of secure data communications for Industrial IoT,” said Paul Thomas, President of Skkynet.  “The OPC UA protocol is well-known for security within the industrial network, and this initiative demonstrates how an equally high level of security can be achieved seamlessly for IoT cloud connections.”

At the OPC UA Sandpit event, each participant will connect their hardware to a network on which BellChild’s iBRESS Box is running.  The iBRESS Box has Skkynet’s Cogent DataHub installed, which on the one hand provides OPC UA connectivity, and on the other can tunnel securely through network proxies and closed firewalls to the iBRESS Cloud.  Using OPC UA on the local network, each connected device will pass its data to the iBRESS Box, which will make it available on the iBRESS Cloud in real time.

“Skkynet’s DataHub is the key enabling technology for this kind of secure connectivity,” said Thomas.  “Functioning as the engine for both the iBRESS Cloud and the iBRESS Box, the DataHub’s unique secure-by-design approach to data communications makes it an ideal tool for Industrial IoT.”

About BellChild

BellChild is a system integration company focusing on secure system development, robust infrastructure development, and advanced operations capabilities. The company develops and maintains secure servers used to support high-speed financial transactions, which is also used to provide a robust and secure platform to support industrial cloud-based systems in the form of iBRESS™ Cloud service.  For more information, see https://www.bell-c.co.jp/.

About Skkynet

Skkynet Cloud Systems, Inc. (OTCQB: SKKY) is a global leader in real-time cloud information systems. The Skkynet Connected Systems platform includes the award-winning SkkyHub™ service, DataHub®, WebView™, and Embedded Toolkit (ETK) software. The platform enables real-time data connectivity for industrial, embedded, and financial systems, with no programming required. Skkynet’s platform is uniquely positioned for the “Internet of Things” and “Industry 4.0” because unlike the traditional approach for networked systems, SkkyHub is secure-by-design. For more information, see https://skkynet.com.

Safe Harbor

This news release contains “forward-looking statements” as that term is defined in the United States Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended. Statements in this press release that are not purely historical are forward-looking statements, including beliefs, plans, expectations or intentions regarding the future, and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors, such as the inherent uncertainties associated with new business opportunities and development stage companies. Skkynet assumes no obligation to update the forward-looking statements. Although Skkynet believes that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that they will prove to be accurate. Investors should refer to the risk factors disclosure outlined in Skkynet’s annual report on Form 10-K for the most recent fiscal year, quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the U.S. Securities and Exchange Commission.