Edgecross Consortium to Address Edge Integration in IIoT-enabled Architectures

ARC WHITE PAPER By ARC Advisory Group JANUARY 2018 Edgecross Consortium to Address Edge Integration in IIoT-enabled Architectures Executive Overview ...................................................................... 3 The IIoT Business Value Proposition ............................................... 4 The Rise of the IIoT Network Edge ................................................. 4 Edge-to-Cloud Integration Challenges ............................................. 6 Migration toward Edge Computing .................................................. 6 The Need for Open Architecture IIoT Edge Platforms ........................ 8 Edgecross Consortium Tackles Edge Computing Challenges? ............. 9 Edgecross Platform Components .................................................... 9 Application Example: Enabling Preventative Maintenance ............... 12 Membership and Activities Schedule ............................................. 13 Comments from Founding Members.............................................. 14 Author profiles ........................................................................... 17 VISION, EXPERIENCE, ANSWERS FOR INDUSTRY

ARC White Paper • January 2018 Disclaimer The information provided herein is for general information and educational purposes only. It is not intended and should not be construed to constitute legal advice. The information contained herein may not be applicable in all situations and may not reflect the most current situation. Nothing contained herein should be relied or acted upon without the benefit of legal advice based upon the particular facts and circumstances presented and nothing herein should be construed otherwise. ARC Advisory Group, in consultation with the Edgecross Consortium, reserves the right to modify the contents of this document at any time without notice. If the Edgecross Consortium is interested in publishing this document in other languages, we request that the Edgecross Consortium have ARC Advisory Group review it for accuracy. Translations of any materials into other languages are intended solely as a convenience. Translation accuracy is not guaranteed nor implied. If any questions arise related to the accuracy of a translation, please refer to the original language official version of the document. Any discrepancies or differences created in the translation are not binding and have no legal effect for compliance or enforcement purposes. Although ARC Advisory Group and the Edgecross Consortium use reasonable efforts to include accurate and up-to-date information herein, ARC Advisory Group and the Edgecross Consortium make no warranties or representations of any kind as to its accuracy, currency or completeness. You agree that access to and use of and reliance upon this document and the content thereof is at your own risk. ARC Advisory Group and the Edgecross Consortium disclaim all warranties of any kind, express or implied. Neither ARC Advisory Group, the Edgecross Consortium, nor any party involved in creating, producing or delivering this document shall be liable for any consequences, losses, or damages, including direct, indirect, special, consequential, loss of business profits or special damages, whatsoever arising out of access to, use of or inability to use, or in connection with the use of this document, or any errors or omissions in the content thereof. Use of this information constitutes acceptance for use in an "as is" condition. 2 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 Executive Overview Customers and suppliers of automated equipment across all industries are waking up to the numerous incremental value propositions associated with industrial internet-based strategies. Initiatives such as the Industrial Inter- net of Things (IIoT), Industrie 4.0 (I4.0), information technology (IT)/operational technology (OT) convergence, smart manufacturing, Smart Society, and others are viewed as a means of accel- Successful execution of industrial erating core business drivers, including increased internet-enabled business improvement strategies requires increased IT/OT revenues, reduced costs, asset optimization, and convergence, edge-to cloud integration ability to extend the base of potential customers. and open architectures. Industrial edge This recognition extends to the C-Level, where ex- platforms are emerging as a primary ecutives increasingly recognize the potential means of addressing these core business impact of these initiatives. functional requirements. Pursuit of industrial internet-enabled strategies necessitates a departure from the traditional siloed “IT vs OT/factory au- tomation (FA)” perspective that has historically pervaded manufacturing firms. Success with internet-enabled business improvement requires true convergence of IT, OT, and engineering technology (ET) to implement the access, transparency, security, and execution capabilities needed to deliver on its significant promise. These prospects herald the dawning of a new age at the industrial network edge, one that must be addressed as customers prepare for and implement internet-based business strategies. This preparation extends to ensuring that what enterprise applications view as “the network edge” meets the re- quirements for successfully executing connectivity-enabled business strategies. This has numerous implications throughout the architecture. The newly formed Edgecross Consortium looks to meet the need for the core functionality required in the emerging era of edge computing, includ- ing an edge platform that provides seamless coordination throughout the architecture. IT systems will now be able to not only reach into the OT/FA realm in search of operational improvements, but also into cloud-resident supply chain and engineering activities. The Edgecross Consortium mis- sion extends beyond a simple IIoT integration framework to creation of an edge platform environment capable of meeting today’s business and tech- nology integration challenges. Copyright 2018 © ARC Advisory Group • ARCweb.com • 3

ARC White Paper • January 2018 The IIoT Business Value Proposition Initiatives such as the Industrial Internet of Things (IIoT), Industrie 4.0 (I4.0), China 2025, and the Smart Society are increasingly seen as the means to reduce downtime, increase flexibility, and achieve an open, connected and secure infrastructure. In today’s environment, target outcomes for in- ternet-enabled strategies can range from reduced operations or maintenance costs to reduced machine downtime, Target outcomes for industrial internet- increased production flexibility, or migration to a enabled strategies include lower service-oriented product offering. These benefits operations and maintenance costs, extend throughout the value chain to suppliers, reduced downtime, increased production OEMs, system integrators, and end customers. flexibility, and/or migration to a service- oriented offering. To achieve these objectives, customers must be able to dynamically access, monitor, manage, con- trol, and optimize the associated assets, machines, processes, and/or con- nected end products. The industrial network edge and the devices associated with it have emerged as primary vehicles for delivering incre- mental business value via internet-enabled strategies. The Rise of the IIoT Network Edge Connectivity, transparency, and remote access are primary enablers of many of today’s internet strategies. Cloud integration, IT/OT/ET conver- gence, and the overall need to feed data from the field to higher-level applications are central to achieving these objectives, as is seamless hori- zontal and vertical integration throughout the architecture. Each of these concepts relies heavily on the industrial network edge as its information conduit. The IIoT requires extensive integration of field and asset data with enter- prise-level business improvement applications, many of which are resident in the cloud. Numerous different types of cloud-based platforms are emerging concurrent with the rise of the IIoT, including vendor-specific operating systems platforms and those that rely on public clouds, such as Amazon Web Services or Microsoft Azure. 4 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 Numerous different types of IIoT platforms are emerging Cloud-based enterprise-level business improvement strategies in the Indus- trial Internet age need data from edge machines, processes, and other assets and components to feed data-driven activities such as analytics. These cloud-based architectures rely on the network edge to provide data com- munications, application integration, and security, among other key roles. Formerly isolated, OT-centric installations must now respond to the need to integrate data with IT and ET. This emphasis on communication with higher-level applications is behind the term “network edge,” since a top- down perspective from the enterprise level results in field-level equipment appearing at the outer edge of the architecture. The Network Edge performs an important role in IIoT Strategies Copyright 2018 © ARC Advisory Group • ARCweb.com • 5

ARC White Paper • January 2018 This trend is evident as companies are already escalating connectivity re- quirements in their request for proposals (RFPs), using these new capabilities to achieve initial benefits in areas such as remote monitoring, diagnostics, and energy management that typically require remote access and incremental data gathering. New project requisitions around the world and across industries provide concrete evidence of the need for multifold increases in edge connectivity. Edge-to-Cloud Integration Challenges Industrial internet strategies are typically viewed as a means of delivering the edge data necessary to fuel performance improvement strategies exe- cuted in higher level applications. In the industrial market, this is particularly true for the large amount of data required by cloud-based ana- lytics and similar applications tasked with delivering reduced machine downtime and other strategic industrial internet value propositions. It is also a necessary enabler behind the push toward Product-as-a-Service as a means of both delivering services and monitoring usage. Cloud integration at the edge currently serves Edge-to-cloud integration presents many additional purposes, including device con- challenges in areas such as the need to figuration and management, remote access and pre-process large volumes of data, unacceptable latency times, and monitoring, data storage, and/or application exe- potential security concerns. cution. Enterprise applications are emerging as primary consumers of data generated at the indus- trial edge, but the sheer volume of data generated by these devices makes cloud-based execution unrealistic in many cases. Edge applications them- selves may not be able to tolerate the latency inherent in delivering data back and forth to the Cloud for analysis and feedback, plus some customers are not willing to serve their data up into a Cloud due to security concerns. Migration toward Edge Computing Migration of cloud-based applications down to the network edge infra- structure and intelligent end device tiers is one of the main pressures driving change at the industrial edge. Further evolution of the edge-to- 6 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 cloud integration phenomenon includes emergence of edge or fog compu- ting strategies. With this approach, some of the functionality traditionally associated with the enterprise level is migrating into edge devices them- selves. Edge computing is distinct from traditional automation and control in that it emphasizes execution of applications typically resident in the cloud rather than local control programs. Edge computing helps avoid overburdening enterprise applications and communication links by processing data at the edge and driving further distribution of the architecture. Edge devices themselves continue to deliv- er ongoing price/performance improvements in both connectivity and compute capability, which in turn facilitates continued migration toward edge computing. Two primary drivers are contributing to this reali- Edge computing insulates IT systems from the deluge of machine data, plus it ty: the need to process data locally to prevent a provides the speed and security data deluge from the field to the enterprise, plus necessary for OT/FA applications. the speed, security, and other advantages inherent in executing applications close to their data source and target execution environment. Availability of analytical feedback near or on the target assets delivers speedy, ultimately real-time feedback, as well as improved operational security. Edge computing capabilities will help offload enterprise applications from the potential tsunami of data emanating from edge devices. Edge compu- ting can assist by identifying and flagging data anomalies that may be associated with problems in the device and/or process, plus assist with fil- tering, offloading, and storing data not immediately required by the enterprise application. These events are extending the definition of IT and OT/FA convergence to the merging of computational power and connectivity, or compute/connect. Network infrastructure devices whose primary traditional role has been to enable data connectivity between and within different layers of the archi- tecture are now adding compute power to meet the emerging demands of edge computing. At the same time, the need to process and deliver pre- processed OT data to cloud-based enterprise applications is driving com- pute capability down in the architecture and closer to the edge. Copyright 2018 © ARC Advisory Group • ARCweb.com • 7

ARC White Paper • January 2018 IT/OT Convergence includes Compute/Connect convergence at the Edge The Need for Open Architecture IIoT Edge Platforms Increasing functional and performance burdens on the IIoT edge are lead- ing to the need for a dedicated edge platform environment that can meet the rising number of requirements. This component of the architecture is emerging to address needs such as reduced time, effort, cost, and special- ized skills required to achieve IT connectivity to hybrid OT environments, as well as availability of standard tools for device management and devel- oping and deploying applications. Edge platforms are emerging as a necessary archi- IIoT edge platforms reduce the time, effort, cost, and specialized skills tectural requirement that insulates both IT and OT necessary to achieve edge-to-cloud from the intricacies of their specific environments. integration. Edge platforms can deliver pre-processed OT data to IT-based applications in the appropriate format and via support of IT protocols, while also easing integration requirements for OT devices and processes. Edge platforms can also provide context for connected data and may offer modeling, visualization, and certain analytics tools. 8 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 Edgecross Consortium Tackles Edge Computing Challenges? Six leading industrial companies, including Advantech, IBM Japan, Mitsubishi Electric, NEC, Omron, and Oracle Japan, have formed the Edgecross Consortium to address the need for edge computing standardi- zation on a global scale and across industries. As the list of sponsoring firms suggests, the consortium intends to bring IT and OT/FA together to enable the extensive incremental value enabled by the emergence of the IIoT and edge computing. This mission extends beyond a simple IIoT inte- gration framework to creation of an edge platform environment capable of meeting today’s business and technology integration challenges. The Edgecross platform vision addresses core func- The Edgecross platform provides core tionality required in the emerging realm of edge functionality to bring IT and OT/FA computing. The IPC gateway-based architecture together and enable IIoT-driven enables data collection from throughout the performance improvement. OT/FA environment, regardless of the vendor or network types deployed. Real-time diagnosis and feedback occurs at the production site, enabling real-time local feedback and response. Local edge data processing capabilities enable OT/FA personnel as well as edge appli- cations to abstract data for use in optimizing operations both locally and across global locations. Edgecross further enables IT-driven applications to execute in the OT/FA environment and supports a vast library of edge computing applications. The Edgecross platform enables these possibilities through a platform that provides seamless coordination throughout the architecture. IT systems are now able to not only reach into the OT/FA realm to address operational improvements, but also into cloud-resident supply chain and engineering activities. Edgecross Platform Components Development and support of a widely disseminated interface between IT systems and the OT/FA environment will be one of the Edgecross Consor- tium’s initial deliverables. This interface will support existing installations, allowing incorporation of legacy equipment into the architecture. IPC- Copyright 2018 © ARC Advisory Group • ARCweb.com • 9

ARC White Paper • January 2018 based gateway communication will also be supported to allow seamless data coordination with OT/FA equipment and cloud-based IT systems. The combination of an IPC-based gateway and edge platform software de- livers a powerful edge processing environment capable of real-time data processing and data model control. This architecture is consistent with the current emphasis on gateways to achieve edge-to-cloud integration. Edgecross platform overview The Consortium’s initial activities target development of two critical core functional components that enable the Edgecross platform to run on IPCs: real time data processing and data modeling control. Real-time data pro- cessing capabilities will allow the platform to be used to determine when and from which devices data will be collected. This capability will enable the platform to meet the needs of specific edge applications in terms of both appropriate data formatting and implementing desired timing cycles for data collection. This extends to managing feedback to edge devices, ena- bling faster and easier development of edge applications with real-time diagnostic feedback. The data modeling control function will be used to generate structural models of edge devices into a familiar tree structure. This model will in- clude both a Bill of Materials (BOM)-type feature containing the order of 10 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 device’s structural elements as well as important control functions such as current, temperature, or torque. Accurate data modeling is a challenge in edge processing applications due to the differing kinds, functions, suppliers, and/or shipping destinations of the machines and equipment installed in the shop floors inherent in its di- verse landscape. This diversity can lead to difficulty in effectively identifying the cause or location of a specific issue flagged by analytics ap- plications if a proper data model that reflects the actual structure of edge devices is not in place. Edgecross takes a two-pronged approach to the important issue of accurate data modeling at the edge. This approach is based on standard device pro- files accessed via a standard edge platform supporting standard OT and IT interfaces. Core platform functionality will include automatic generation of model data based on these standard device profiles. The profiles, which will include details on both the device attributes as well as their usage with specific automation networks, will be provided by the edge device provid- ers. The consortium also aims to promote standardization of these data models in further pursuit of a more accurate and simplified approach to edge pro- cessing. The success of this standardization effort, which falls under the consortium’s Technical Working Group, will rely on device suppliers and equipment builders participating in the standards effort and developing conforming device profiles. The combination of an IPC-based gateway and edge platform software de- livers a powerful edge processing environment capable of real-time data processing and data model control. Inclusion of an offering of “data collec- tor” function in the Edgecross vision eliminates the need for developers to spend time on non-value-add custom integration tasks and allows data to be easily incorporated from a variety of field inputs. The Consortium plans to further ease development through availability of open development kits and technical support resources. The Consortium has already started to distribute beta development kits for IT system companies and edge application developers to its membership. The Consortium will open its Market Place and start to offer edge applica- tions at the time of the official launch of the basic Edgecross software platform, which is planned for spring 2018. Copyright 2018 © ARC Advisory Group • ARCweb.com • 11

ARC White Paper • January 2018 Application Example: Enabling Preventative Maintenance Preventative maintenance capabilities are essential to achieving IIoT-driven objectives such as reduced machine downtime and/or eliminating extend- ed facility shutdowns. Edgecross fulfills the edge integration and execution requirements necessary to perform preventative maintenance by easily col- lecting, converting and analyzing data to and from the OT/FA and IT environments. In this example, the platform collects and converts data from a variety of equipment and network types to make it suitable for use by the preventa- tive maintenance application. The maintenance software analyzes the data and generates a diagnosis within its own execution environment, then sends any necessary notifications to production devices via Edgecross. Edgecross could then light a signal lamp that notifies personnel of an im- pending equipment breakdown and alerting them to the need for corrective action. Edgecross enables this capability by fostering easy integration, analysis, and dissemination of field equipment data to IT systems, and then conveying the resulting response seamlessly through the architecture. Edgecross enables performance improvements across facilities Edgecross further allows this application to extend to facilities throughout a global enterprise. Data collected from local facilities across different sites 12 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 can be consolidated and analyzed to extract breakdown indication detec- tion patterns. These patterns can then be collected into the cloud through the Edgecross gateway, then distributed to the preventative maintenance application running on Edgecross platform installed at the overseas remote sites. The patterns can be compared to machines and equipment behavioral data collected from overseas facilities in the Edgecross environment. Edgecross then enables notification of potential upcoming equipment breakdowns to operators in overseas facilities. Membership and Activities Schedule At the first announcement on November 6, 2017, the Consortium an- nounced a long list of supporting companies, including: AWS, Beckhoff, Bynas, Canon IT Solutions, CDS, CIMX, Citizen Machinery, Contec, Das- sault Systemes, Disec, DMG Mori, Elmic, ePlan, Fujitsu, Fujisoft, HP, ILC, Intel, Interface, ISID, JTE, KSK Analytics, Lattice Technology, Mazak, McAfee, Mcor, Microsoft, Net One Systems, NSD, NSW, Panasonic Indus- trial Devices SUNX, PFU, Portwell, Saison Information Systems, Renesas, Schneider Electric, Siemens, Soft Service, Tibco, Toshiba Electronic Engi- neering, Trend Micro, Tsuzuki, VMware, Wind River, and WingArc1st. Two new mem- bers, CTC and Kuka, were added on the day of the con- sortium’s founding during the opening day of System Con- trol Fair (SCF) 2017 in Tokyo on November 29, bringing the to- tal member-ship to 53 companies. Edgecross to pursue partnership with various other platforms in the marketplace Initial Consorti- um activities Copyright 2018 © ARC Advisory Group • ARCweb.com • 13

ARC White Paper • January 2018 will focus on developing specifications for the Edgecross open software platform and promoting its dissemination. This work will include provid- ing avenues for supporting companies to cooperate and collaborate through member’s participation in Technical and Marketing WGs, as well as conformance tests for certification of compatible products. Cooperative marketing such as opening of Market Place on the internet for application sales will be followed. Further activities will include expanding applica- tions across industries and geographies and cooperation with leading academic institutions. The Consortium plans to recruit additional members via its presence at ex- hibitions and other future marketing efforts. It also plans to pursue partnerships with other edge-computing platforms and cloud-based IoT platforms in the marketplace. Comments from Founding Members Taka Furusawa, Director, Industrial-IoT Group, iFactory Sector, Advantech Japan Co., Ltd. From our extensive experience in the manufacturing and sales business of edge computing products to the world, we see many of our customers share worries of whether to start from where in the IIoT field. The biggest contribution of the Consortium will it enables to present clear directions and methods to such customers not by offering solution supported by a single supplier but by gathering expertise and experience of multiple mem- ber companies. Challenges include how to establish conformed technological format by adopting different and diversified opinions of the member companies through the Technical WG activities. How many and how faster the Con- sortium can accumulate best practices and use cases of the Edgecross applications as customer references is another challenge. For the manage- ment of Market Place of the applications will be another issue. Advantech, who operates WISE-PaaS as its own platform and launches their own Mar- ket Place, is willing to share its expertise and experiences with the Consortium. 14 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 Tatsuya Matsunaga, VP, Value Creation, Business Development, IBM Japan, Ltd. I strongly support the purpose of establishing this consortium to coordinate FA and IT from Japan. We will leverage the global knowledge and skills that IBM has and its various in the Watson IoT area while respecting the purpose of Edgecross and contributing to the development of this Consor- tium. Tetsuya Kawai, Deputy GM, 1st Manufacturing Industries Solution Div., NEC Corporation Edge computing platform is to give an effective meaning for IT business vendors such as NEC to acquire data from manufacturing field. The notion that edge connecting both competitive fields of IT and OT can be coopera- tive is quite persuasive for us. Certification program for the products conformity and integrity will make sure customers confidence to adopt this platform. Challenges of the Consortium will include credibility of the platform open- ness, development of sophisticated software and platform, and achievement of full-functional and -operable data corrector functionality. As a founding member, NEC will contribute to persuade industry about its openness, supporting advanced technologies such as cybersecurity, net- working, AI to develop advanced platform by joining the Technical WG activities, and contributing evaluation of data corrector functionality through testbed trials and a like. Yutaka Miyanaga, Executive Vice President, Omron Corporation, Company President, Industrial Automation Company We support the purpose of the establishment of the consortium. We will leverage our broad lineup of FA equipment and control technology that work with applications. We will also promote the introduction of IoT for machines, devices, and equipment at the manufacturing site, and lead Edgecross together with each of the supporting companies to contribute to the development of Japan's manufacturing industry. Copyright 2018 © ARC Advisory Group • ARCweb.com • 15

ARC White Paper • January 2018 Shinji Taketsume, Operating Officer, Cloud Solution Sales, Oracle Corporation Japan Oracle Japan is very much honored to become a founding member of this Consortium. Oracle offers its wide-range and integrated Oracle Cloud throughout the globe and has many achievements in the area of IoT as well. We will contribute in spreading Edgecross by offering Oracle Cloud. Haruyuki Otani, GM, Solution Systems Dept., Solution Business Strategy Div., FA Systems Group, Mitsubishi Electric Corporation Mitsubishi Electric is aiming to expand the scope of e-F@ctory solutions business by utilizing Edgecross promotion. The basic structure of e-F@ctory composes three-layer including FA manufacturing field layer, upper IT lay- er, and edge layer between the two. To enforce the solution business in edge area further, we found that we need to establish open edge software platform that will enable to connect equipment data from the FA operation field in multi-vendor environment to upper IT applications, which are run- ning another multi-vendor environment. Accumulating variety of use case is critical to success of the Consortium initiatives. Technically, it will be a challenge to increase number of general- purpose applications available on the edge platform. To promote wider uti- lization of the Edgecross platform, we believe it is necessary to produce products and services by using general-purpose applications with standard data format, previously many of them were produced by customizations. The Technical WG will in charge of it by obtaining the cooperation of the various members including IT companies. 16 • Copyright 2018 © ARC Advisory Group • ARCweb.com

ARC White Paper • January 2018 Author profiles Chantal Polsonetti Vice President, Advisory Services ARC Advisory Group cpolsonetti@arcweb.com Areas of Expertise Chantal's primary activities include working with the ARC teams covering the Industrial Internet of Things (IoT), industrial networks and other topics. Chantal's focus areas include the Industrial Internet of Things (IoT), indus- trial Ethernet switches and devices, wireless networks, and device networks. She also administers the ARC Industrial Internet of Things and Industrial Network Edge groups on LinkedIn. Chantal has been with ARC since 1990 and has conducted numerous industry-leading research activities in areas including:  Total Available Market for Industrial Network Infrastructure  Connected Device Management Platforms for Industrial IoT  Industrial Ethernet Devices  Industrial Ethernet Switches and Infrastructure  Industrial Wireless (process and discrete industries)  Industrial Device Networks  Intelligent Train Control Systems  And many more Prior to ARC, she was with Venture Development Corporation where she focused on sensors and device-level topics, and International Data Group where she provided market research support. Prior to her career as an in- dustry analyst, Chantal was with the injection molded plastic fastener business of Dennison Manufacturing and then L.E. Mason, a local alumi- num, zinc, and magnesium die cast manufacturer. Copyright 2018 © ARC Advisory Group • ARCweb.com • 17

ARC White Paper • January 2018 Analyst: Chantal Polsonetti Editor: Paul Miller Acronym Reference: For a complete list of industry acronyms, please refer Acronym Reference: For a complete list of industry acronyms, please refer to www.arcweb.com/research/pages/industry-terms-and-abbreviations.aspx BOM Bill of Materials IT Information Technology CPU Central Processing Unit I4.0 Industrie 4.0 DBMS Database Management System OT Operational Technology DDK Driver Development Kit PaaS Product as a Services ET Engineering Technology PLC Programmable Logic Controller EAM Enterprise Asset Management PLM Product Lifecycle Management ERP Enterprise Resource Planning RFP Request for Proposal FA Factory Automation ROA Return on Assets IIoT Industrial Internet of Things SDK Software Development Kit IPC Industrial Personal Computer WAP Wireless Application Protocol Founded in 1986, ARC Advisory Group is the leading research and advisory firm for industry. Our coverage of technology from business systems to prod- uct and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers. All information in this report is proprietary to and copyrighted by ARC. No part of it may be reproduced without prior permission from ARC. This research has been sponsored in part by the Edgecross Consortium. However, the opinions expressed by ARC in this paper are based on ARC's independent analysis. You can take advantage of ARC's extensive ongoing research plus experience of our staff members through our Advisory Services. ARC’s Advisory Services are specifically designed for executives responsible for developing strategies and directions for their organizations. For membership information, please call, fax, or write to: ARC Advisory Group, Three Allied Drive, Dedham, MA 02026 USA Tel: 781-471-1000, Fax: 781-471-1100 Visit our web pages at www.arcweb.com 18 • Copyright 2018 © ARC Advisory Group • ARCweb.com

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