From: San Francisco Chronicle
By Chris Strohm
The futuristic world of self-driving cars, eyeglasses that e-mail and trash cans that call for pickup is running into the old-fashioned pace of doing business in Washington.
Companies from Google to BMW are racing into what is being called the Internet of Things. The Department of Transportation and the Federal Trade Commission are moving more deliberately, concerned that devices may be vulnerable to hacking, lead to misuse of personal data or even cause physical harm to their owners.
“If we’re thinking this genie can be put back in the bottle, we’re fooling ourselves,” said Robert Enderle, principal technology analyst for the Enderle Group in San Jose.
The Internet of Things refers to technology like robotic vehicles, computing glasses and watches, and home appliances and trash cans with Web connections. It’s being featured this week at the North American International Auto Show in Detroit, after generating buzz at last week’s International Consumer Electronics Show in Las Vegas.
The market for wireless, Internet-connected devices could create between $2.7 trillion and $6.2 trillion of economic value annually by 2025, according to the McKinsey Global Institute, a research arm for consulting firm McKinsey & Co. Inc.
Cisco Systems Inc. predicts about 25 billion devices will be connected by 2015 – up from 12.5 billion in 2010. “This is not about technology at all,” CEO John Chambers said in a keynote speech at CES. “It’s about how it changes peoples’ lives forever.”
The “dark side” of having devices connected to the Internet may involve hackers remotely taking control of appliances inside homes to create a fire or vehicles to kill people, according to Internet Identity, a computer security company.
It’s not science fiction. Former Vice President Dick Cheney said on CBS’ “60 Minutes” program Oct. 20 the defibrillator he got in 2007 had its wireless feature disabled because he feared terrorists could use it to kill him.
Rules and regulations
Regulators and lawmakers need to write rules that clearly explain what companies are permitted to do and detail penalties for violations, a task hindered by revelations about the extent of U.S. spying programs, Enderle said.
Rules need to specify how data generated by gadgets is used and whether companies will face legal liability for security breaches, said Michael Chui, a partner with the McKinsey Global Institute.
“It’s impossible to not have data generated about you in the world today,” he said. “Regulators have to many times balance innovation with managing various types of risk.”
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