The (Augmented) Reality of the Situation: Emerging Trends and Issues

Augmented Reality: Emerging Market Trends Augmented Reality: Emerging Market Trends and Issuesand Issues

““The Good, the Bad and the Ugly”The Good, the Bad and the Ugly”

Mike Jude Ph.D., Program Manager

Connected HomeAugust 1, 2013

© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

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Today’s Presenter

•Over 30 years in Telecommunications and Information Technology:

• U S WEST: Network Engineering, Teleprocessing and Public Policy

• Sun Microsystems: Customer/Pprocess Metrics and Marketing Strategy

•Expertise:

• Research Design

• Market Analysis

• Business Analysis

• Decision Analysis

Mike Jude, Ph.D., Program ManagerStratecast|Frost & Sullivan

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Focus Points

• Augmented reality is coming (here)• Augmented reality: what is it?• How will augmented reality change the consumer

communications market?• How will augmented reality change the network operator

business model?• What must service providers do to prepare for augmented

reality?• Conclusions/Recommendations

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Poll Question

How important do you think augmented reality is?

1. I don’t know anything about it

2. Very Important: “Transformational”

3. Somewhat important: “AR devices are coming, better prepare for them”

4. Not that important: “AR is just another display technology”

5. Completely irrelevant: “AR is just a fad”

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Is Augmented Reality Coming?

• Politicians think so:• In mid May, the House Privacy Caucus sent a list of their concerns

and questions to Google’s CEO • On June 20, privacy commissioners from six countries (Canada,

Australia, New Zealand, Mexico, Switzerland, and Israel) sent a letter to Google demanding to know what steps Google has taken to build privacy protection into the Glass device.

• Columns and news stories on Google Glass have run in Fox News, CNN, New York Times and most major tech blogs

• Augmented Reality (AR) devices and applications are in the consumer space now: the horse has left the barn

• Augmented reality WILL fundamentally change consumer communications and computing

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But what is Augmented Reality?

• “AR is a superimposition of a data display on a view of the natural world. This can be done either indirectly, as through the view screen of a smartphone; or directly, as with special head-up displays (HUDs). In practice, this has been the former, rather than the latter.”

• What this means is that AR immerses the individual in the virtual world of data

• AR is poised to render obsolete all other forms of data access

• Example by Keiichi Matsuda : http://vimeo.com/14294054• It is NOT social networking!!!• And it is not necessarily “wearable computing”

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Augmented Reality on Smartphones

Source: Wikipedia, used under Free Use Policy (Free Software Foundation)

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Google Glass

Source: Google

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AR will change Consumer Communications

• AR devices can conceivably replace all forms of data or content access

• Virtual PCs• Virtual Television Sets• Virtual Telephones

• AR, not incidentally, also enables the most intrusive personal documentation and surveillance capability in history

• AR will exponentially increase the need for wireless bandwidth and service quality

• And while AR is found on wearable computing devices (headsup displays, etc.) Wearable computing is not necessarily AR

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Augmented Reality: A Growing Market

Source: Frost & Sullivan

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Augmented Reality will Change the Operator Business Model

• AR is not social networking: Google did not invent Glass to compete with facebook, but to extend their dominance in online advertising!!!

• AR is a way to deliver targeted information and entertainment to mobile consumers: think local search/personalized yellow pages

• The opportunities are tremendous:• The AR world is characterized by individual virtual bubbles that are

generated in real time• Computing requirements will reach super computer levels quickly:

logical place to do so is in the cloud• Operators can own the virtual bubble and sell access to it

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Virtual Bubble

Source: Frost & Sullivan

Virtual Bubble

Telemetry

AR Content

Y

X

Z

Directory Services

Directory Services

Directory Services

Physical Space

Data Tag

Data Tag

Data Tag

Data Tag

Data Tag

Directory Layer

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AR will Resonate with Consumers

Source: Frost & Sullivan

N=1294

North American Directory Assistance Usage

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What must Carriers do to Prepare for AR?

• Fully immersive AR requires:• Low latency• High bandwidth• Cloud Computing

• Mobile data sessions will transition from periodic/asynchronous to continuous/synchronous

• Networks will need to achieve much higher levels of reliability and connectivity- anything less could be life threatening

• One way to do this is to segregate high bandwidth consumption to AR zones enabled by Wi-Fi: retail centers, campuses, businesses, etc.

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Conclusions/Recommendations

• AR is nearly here: certainly by 2014• Operators are the logical owners of the virtual bubble, but it will

take adjustments to the network architecture and service automation

• Even if operators do not move to participate in the AR space, there are players who even now are planning to do so and who are planning ways to leverage their AR advantage to capture operator revenue

• Foremost: service providers will need to plan for the impact of AR

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For Additional Information

Mireya EspinozaCorporate CommunicationsInformation & Communication Technologies(210) [email protected]

Mike JudeProgram Manager: Consumer Communications ServicesStratecast(303) [email protected]

Mike SubyVice President of ResearchStratecast(720) [email protected]

Perry SomersDirector of Business DevelopmentStratecast(360) [email protected]