The next five years will mark a dramatic enterprise shift toward the edge of networks, where emerging technologies can be harnessed to radically improve user experiences, transform business models, and generate vast revenue opportunities, according to a new book by Fast Future in collaboration with Aruba, a Hewlett Packard Enterprise company.

Opportunity at the Edge: Change, Challenge, and Transformation on the Path to 2025, developed by Fast Future in collaboration with Aruba, reports that edge technologies – those which process and analyze user data where people connect to a network – will revolutionize corporate strategies, create more dynamic, responsive, and personalized customer and employee experiences, enable powerful business and revenue models, and even catalyze the growth of entirely new industries. To unlock these opportunities, the book argues that enterprises must embrace fundamental change, engaging in widespread strategic, structural, and leadership transformation.

Morten Illum, VP EMEA at Aruba, comments: “The findings in this book highlight the vast commercial potential for enterprises utilizing edge technologies, if companies are willing and able to enact the considerable organizational changes needed. The edge represents a dramatic overhaul in how companies understand, service, and meet the needs of their customers and employees. It will be a world defined by dynamic, immediate, and personalized services.”

Key Themes and Findings

Commissioned to explore the scale of possibilities presented by edge technologies in the next 3–5 years, the book features insights from 19 leading global CIOs, technology leaders, industry experts and futurists, and a perspectives survey of 200 future thinkers from across the globe. It explores the edge technologies that are driving change, the use cases and businesses opportunities these are creating, and the ways in which organizations can adapt to take advantage. Key trends that emerged include:

• The edge of the network holds the key to industry transformation: The edge is designed to enable and capitalize on modern digital experiences at the convergence of people, apps, and things – allowing customer and ecosystem partners to take these actionable insights to then create “experiences” for employees and customers. This is making it possible for businesses and organizations in various industries to leverage data and insights from the edge to deliver new and immersive experiences to consumers and end customers. It is driving sectors from education and retail to healthcare and hospitality to rethink how they act today. New types of experiences such as location-aware mobile engagement, digitally assisted patient care, and user-aware meeting rooms can give organizations a competitive advantage.

• At least one-third of businesses will create edge-enabled mainstream personalization by 2025: The study shows that a clear majority (67%) of respondents believe at least 30% of businesses will be using the edge to create “mainstream personalization” in the next five years. From the classroom to the office, retail stores, and major event venues, edge technologies will enable personalized service delivery that meets growing user expectations of an immediate, customized experience.
• New benefits from the edge will be realized: Other benefits arising include localized products, services, and pricing (52% of respondents), enhanced real-time market insight (50%), improved customer and user satisfaction (48%), and faster product and service innovation (47%).

Opportunities at the Edge

The edge will create transformative business opportunities for industries across the economy, using data to understand customers and tailor services to their needs, such as:

• A retailer that can provide custom-made clothing, fitted to your 3D hologram, as the industry evolves to provide an anywhere and everywhere experience;
• A classroom environment that automatically adapts to each student’s comprehension and comfort level, as schools and colleges harness edge technologies to enhance student performance, confidence, and mental wellbeing;
• A hospital that uses IoT monitoring sensors to provide continuous patient reporting at the point of care and real-time diagnosis, enhancing the ability of healthcare professionals to deliver efficient and effective care;
• A workplace with always-on tools, enabling collaboration from any device around the world, as offices evolve to facilitate the same level of access and functionality for employees anywhere in the world.

These shifts will be underpinned by emerging business and revenue models, such as payment by facial recognition or biometrics (highlighted by 70% of survey respondents), commercial application of customer data accumulated via the IoT (67%), hyper-personalized instant offers (63%), demand-driven and location-specific pricing (55%), and subscription models for everyday purchases such as food and clothing (52%).

How Enterprises Must Adapt to Take Advantage

While the opportunities of the edge are considerable, relatively few companies have moved quickly to embrace them. Simply implementing the technologies will not be enough; companies must rethink their entire business strategy to take advantage of edge opportunities. The book outlines several key changes for enterprises to consider, including:

• Embrace a more progressive, experimental approach: A majority of survey respondents said that a change in business mindset was needed to embrace the concept of edge strategies (64%). This could include accepting autonomous decision-making by edge devices (60%), greater top-level support and leadership for the pursuit of driving smarter experiences (53%), and a willingness to experiment with solution design and business models for edge applications (53%).
• Focus on investment, training, and customer need: There were also calls to more clearly define the customer benefits of edge applications (50%), allocate appropriate investment funds (42%), and provide training in how to spot and specify potential edge applications (45%).
• Address emerging security concerns: Enterprises must address the security challenges of a network hosting many more connected devices. These include the creation of potentially thousands of points of risk exposure across the network (82%), uncertainty over whether a device has been compromised (67%), hacking of voice or biometric security (62%), and concerns that IoT devices and sensors are not being built with security in mind (62%).

Rohit Talwar, CEO at Fast Future, comments: “To access the opportunities of the edge, companies need a mindset shift to drive both structural and strategic change. Leaders must take responsibility for navigating the journey to the edge, working hand in hand with IT to pursue open technology options, and maintaining a consistent dialogue with employees, customers, and other key stakeholders. Focused experiments, with clearly defined goals, proactive project owners, and dedicated resources, are likely to be the best way forward.”

Morten Illum, VP EMEA at Aruba, concludes: “Enterprises should be excited about the edge opportunity, but they should not underestimate the degree of change needed to unlock it – including the implementation of a network infrastructure that is strong and flexible enough to withstand the greater demands edge technologies impose, and the security threats they create. Given the pace and uncertainty of the change ahead, it is also essential to base any edge strategy on an open technology ecosystem that leaves flexibility to adapt and evolve over time.” 

To read the full book, visit www.arubanetworks.com/ebook/opportunity-at-the-edge/


Research methodology
The research was commissioned by Aruba, a Hewlett Packard Enterprise company, and conducted in 2019 by Fast Future. The study used a blended approach drawing on Fast Future’s foresight expertise, targeted secondary research, and in-depth qualitative interviews with 19 global CIOs, technology leaders, industry experts, and futurist thought leaders. The project also undertook a broad survey to test emerging ideas and incorporate additional perspectives from 200 business and technology future thinkers across Fast Future’s global networks.

About Fast Future
Fast Future is a professional foresight and publishing firm, specializing in delivering research, keynote speeches, executive education, and consulting on the emerging future and the impacts of technology-driven change for global clients. Fast Future publishes books from leading future thinkers around the world, exploring how developments such as the Internet of Things, edge technologies, AI, robotics, and other exponential technologies and disruptive thinking could impact individuals, societies, businesses, and governments and create the trillion-dollar sectors of the future. Fast Future has a particular focus on ensuring these advances are harnessed to unleash individual potential and enable a very human future.
To learn more, visit Fast Future at www.fastfuture.com, or follow on Twitter, Facebook and LinkedIn. 

Security pundits know that two factor authentication is more secure than simple passwords. As a refresher, “Factors” are typically described like this:

• Something that you know (a password — or even better, a formula)
• Something that you have (Secure ID token or code sent to cell phone)
• Something that you are (a biometric: fingerprint, voice, face, etc.)

The Google project may be just another method of factor #2. In fact, because it is small (easily misplaced or stolen), it simplifies but does not improve on security. I suggest a radical and reliable method of authentication. It’s not new and it’s not my idea…

Back in 1999, Hugh Davies (no relation to Ellery) was awarded a patent on a novel form of access and authentication. It capitalizes on the human ability to quickly pick a familiar face out of a crowd. Just as with passwords, it uses something that you know to log in, purchase, or access a secure service. But unlike passwords, the “combination” changes with every use, and yet the user needn’t learn anything new.

Hoping to commercialize the technique, Davies joined another Brit, Paul Barrett, and formed Passfaces (originally, Real User Corporation). Incidentally, it is quite difficult to research Passfaces and its history. Web searches for “face recognition”, “access”, “authentication” and “patent” yield results for a more recent development in which a smart phone recognizes the face of authorized users, rather than users recognizing familiar faces. (Google, Samsung and Apple are all beginning to use face recognition on mobile devices). In fact, the Passfaces method is quicker, uses less resources and is far more reliable.

I have long been disappointed and surprised that the technique has never caught on. It is a terrific method with few drawbacks. Used alone, it is better than other methods of 1 or 2 factor authentication. Add a second factor and it is remarkably secure and robust.

How it Works:

When accessing or authenticating (for example, logging into a corporate VPN or completing a credit card purchase), you are presented with a tiled screen of individual faces. I prefer a big 15x5 grid = 75 images, but Passfaces uses sequential screens of just 9 faces arranged like the number pad on an ATM.

Just click on a few familiar faces. That’s all! Oddly, Passfaces discourages the use of known faces. Their research, with which I respectfully disagree, suggests that users should train themselves to recognize a few faces from the company’s stock library. In my preferred embodiment, users upload a dozen photos of people they know at a glance—preferably, people that they knew in the past: A 3^rd grade music teacher, a childhood friend who moved away, the face on an oil painting that hung in the basement until Dad tossed it in the fireplace. Now, add the boss who fired you from your first job, the prom queen who dumped you for a football jock, and that very odd doorman who stood in front of a hotel in your neighborhood for 20 years. Photos of various quality and resolution, but all scaled to fit the grid. Some are black & white, perhaps scanned from an old yearbook.

Using my preferred example of 75 faces, suppose that 5 or 6 of the images are from your personal shoe box of old photos. The rest are randomly inserted from all over the internet. How long would take you to click on 3 of the 5 or 6 familiar faces in front of you? (Remember: They are old acquaintances. Even a spouse would have difficulty picking out 3 faces from your early life—as they looked back then). Surprise! You will click them instantly, especially on a touch screen. You won’t need even a second to study the collage. They jump off the screen because your brain perceives a familiar face very differently and faster than anything else.

Of course, the photo array is mixed in different ways for each authentication and it incorporates different friends from your original upload. In fact, if a user sees the same faces in the next few transactions, it is a red flag. Someone has spied on the process, perhaps with a local camera or screen logger. In legitimate use, the same faces are not recycled for many days and are never shown together on the same screen.

Facebook uses a variant of this technique when their servers sense your attempt to login from new equipment or from another part of the country. They show you individuals that you have friended, but that were uploaded and tagged by other users. If you cannot identify a few of your own friends, especially the ones with which you have frequent social contact, than it’s likely that your login attempt deserves more scrutiny.

I don’t know why Passfaces or something like it has failed to catch fire. Perhaps the inventor refuses to license the method at reasonable cost or perhaps he cannot find a visionary VC or angel consortium to more aggressively promote it. If I had invented and patented facial-array authentication, I would attempt to market the patent for a short time focusing on very large network companies like Microsoft, Google, Cisco or Akamai. If I could not license or sell the patent quickly, I would hesitate to go it alone. (I have tried that route too many times). Instead, I would place it in the public domain and profit by being the first, and most skilled practitioner at deployment. I would train and certify others and consult to organizations that use or commercialize the technology.

I used this approach in promoting my own patent which describes an economic barrier to spam (after failing to exploit the invention with my own company). Later, I started with this approach in my research on Blind Signaling and Response and on Reverse Distributed Data Clouds. I recognized that rapid adoption of transformative technology like facial grid authentication, can be thwarted by defensive IP practice.

« Branching somewhat off topic, a developmental biologist at Imperial College in London, has published a proof that Saira Mohan has the world’s most beautiful face, irrespective of the observer’s race. That’s Saira at left. Her mother is French/Irish and her father is Hindoo.

• Related: The science behind Passfaces

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_{Philip Raymond is Co-Chair of The Cryptocurrency Standards Association [crypsa.org] and
chief editor at AWildDuck.com. He consults to cloud storage vendors in areas of security, pri–
vacy & network architecture, but has no ties to Passfaces or the authentication community.}