On this episode of The IoT Unicorn podcast, learn from Lou Lutostanski, VP of IoT at Avnet, as he discusses the evolution of IoT including the need to partner on solutions, especially at scale, lessons learned from years in IoT, and the ways IoT and AI can be leveraged specifically within the healthcare industry, including with remote telemedicine.
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Pete Bernard:
Welcome to the IoT Unicorn podcast. This is Pete Bernard from Microsoft. And this podcast is for anyone interested in the long-term technology trends in the IoT space and the journey from here to there. So, let's get started.
Pete Bernard:
This week we are talking with Lou Lutostanski, who's the vice president of IoT at Avnet. Lou’s been in the business a while and he’s going to be talking about his journey there and also reflect a little bit on the lessons learned that he sees over and over again. And how can we work together to help mitigate some of those things. We’ll also talk a little bit about how things like national emergencies like the pandemic accelerate existing trends. This was recorded actually only about a few weeks into quarantine back in March so an interesting perspective there. So please enjoy my conversation with Lou.
Pete Bernard:
So Lou, thanks again for taking the time to join us here on the IoT Unicorn. I know that we've been working together for a few months now, I think we met last June at the NXP Connects event for the first time. And, maybe you can give us a little background as to what you're currently doing at Avnet and maybe we can chat a little bit about how you got there and what that journey looks like.
Lou Lutostanski:
Sure. Well Pete, thanks for having me, I'm excited to be on your podcast. It was last year at the NXP event that we met and we've been working together quite frequently here over the last few months. But I'm currently the VP of IoT at Avnet. We're traditionally come from a historical industrial distribution business and we realized that the next wave in technologies was all around IoT. So I'm doing that now. But to go way, way back, my formal education was in electrical engineering at Purdue University.
Pete Bernard:
I see that, yes. I'm looking at your LinkedIn profile as we speak.
Lou Lutostanski:
Yeah. And I quickly discovered that my area of interest wasn't really in hardware and moles and electrons migrating across a PM junction, but more interest in software, all kinds of software. So there was a new technology in electronics when I went to school sweeping the land called microprocessors and I kind of fell in love with the 8080. So by the time I graduated college I had taken classes in computer system design, which is the equivalent of computer engineering before there was a name for it. I did a lot of embedded programming. I had written two pass assemblers for the PDP-11 processor in
C and wrote disk allocation systems for mainframe resource management. And I actually worked summers for my dad's company writing applications around accounts payable or accounts receivable, inventory management and work orders. So, I kind of loved all kinds of programming.
Pete Bernard:
Sure, sure. Cool. And yeah, it's interesting. I've had some guests on here, it's okay to refer to IoT as embedded systems because that's what we used to call it. But now it sounds a lot cooler. But it sounds like you had a lot of hands on experience with that through your career. So you ended up at Avnet, it says 2013, was that when you started at Avnet?
Lou Lutostanski:
Actually, I ended up at Avnet in earlier than that. 1987.
Pete Bernard:
Holy mackerel.
Lou Lutostanski:
Yeah. I came off a brief stint at IBM out of college went to work for my dad's company. He had a company that did industrial equipment and so I sold for him for a while before I moved back to Austin, Texas, where I had started with IBM. Love took me there, I married a girl from there, and got involved in the wonderful world of distribution. So, my first job was with Hallmark Electronics and I was a sales manager, or actually a system sales manager selling storage terminals, PCs, monitors, motors, and printers. And I did that job for about a year before I figured out all the action in industrial distribution was in the semiconductor world. So, I converted over to become one of the first field applications engineers in distribution for the Motorola line. And later on, I moved up to sales management in Dallas and moved back to Austin as branch manager. Around that time Avnet bought us. So that's where I became a member of the Avnet family, even though I started in '87, 1993 was when the acquisition happened.
Pete Bernard:
Wow, okay. You put your time in there. That's good.
Lou Lutostanski:
I did. And I floated through the ranks of VP area director until 2000 and that's when I went on my, what I'll refer to as a sabbatical. So I left for Motorola and after serving as a VP of global sales for both the HP account and later the Motorola account, I became the VP of sales and marketing for the Americas as we transitioned to Freescale. So my sabbatical there lasted 12 years and I returned to Avnet seven years ago running sales for the Americas.
Pete Bernard:
Wow. So you've been involved in sort of industrial, commercial, computer things kind of forever. You followed your, that's a kind of a red thread, they call it, through your career. That's pretty awesome. Well, it's good. It's good. It's good to have that, I think sometimes people take wildly different right and left turns to sort of find their passion and other folks just know, they have an internal compass that sort
of just kind of keeps pointing them in the right direction, which is pretty awesome too, but that's cool. Good stuff. I was down in Austin, let's see, I was visiting with NXP, I think I told you this story, and they took me to a place called Chuy's.
Lou Lutostanski:
Absolutely.
Pete Bernard:
That was delicious. And it had hubcaps on the ceiling, and it was kind of one of the local, I guess, awesome restaurants that you have in Austin. So that was pretty good.
Lou Lutostanski:
You got your chips and queso out of a back of a classic car's trunk, I imagine.
Pete Bernard:
That's right. Yes, exactly. Yes. And the Elvis chicken, I think it was what I had, but good stuff. All right, I'm getting hungry. It's around lunchtime, by the way, when we're recording this, I probably shouldn't talk about Chuy's restaurant. Anyway, so you've been in the business a while. You've seen the evolution, like I said, we used to call it embedded systems, now it's called IoT and stuff. Maybe you can share with us what have we all learned as an ecosystem, as a community around this space over the years. What are some of the lessons learned that you've seen sort of repeated over and over again?
Lou Lutostanski:
Yep. So it was a funny story. I was in the field selling for Avnet, running the sales organization in the Americas. And I started hearing about IoT and over time that's all everybody wanted to talk about. So I thought originally thought IoT was kind of a marketing hype thing. So, when they created the position here at Avnet, I lobbied for one of my marketing friends from Freescale to come over and join and unfortunately he didn't get the job, but a year later it was available again. And in that year I grew and understood it was really an incredible opportunity to transform businesses through the application of IoT. So, three years ago I joined this mission here at Avnet. And the lessons I learned in IoT were many. And I've kind of distilled them down to the 10 main issues.
Lou Lutostanski:
So it was funny the first time, I got this job around March, three years ago and I was a keynote speaker at a IoT World in Santa Clara a couple of months later. And my first thought was kind of being intimidated on what am I going to talk to all these people about? And when I got there, I realized IoT was really in its infancy and there were a whole lot of people there trying to figure out really what IoT was. Even though they've been working on it for a year or two or decades when it was called-
Pete Bernard:
For a decade or two, yeah exactly.
Lou Lutostanski:
But the first lesson that I learned is that nobody knew enough about IoT, but they were certain, whatever it was they contributed to, it was the most important, and was the most margin.
Lou Lutostanski:
I tell the story about the blind men and the elephant going through and feeling various parts of the elephant and all coming out and having a violent discussion over what exactly an elephant was. And it's the fact that no one saw the entire elephant holistically. None of them were wrong, but none of them saw the thing holistically. And I think that's where IoT was several years ago. I also learned very early on lesson number two, that from Microsoft, it took 10 to 20 companies to do an IoT implementation, which is why very few IoT implementations were happening. It's just a lot of work to try to get 10 people or five people to agree on anything, much less figure out how you're going to support a customer over long-term and where are the liabilities for service and warranties are going to lay after the original installation. So that was another thing I learned. I also learned that IoT is really about, it's a technology enabler for business transformation. And what I saw when I got here was that people were very focused on the implementation without even understanding why. So, I learned very long that that business case has to far precede the actual implementation because, there's no way you can succeed understanding technology but not understanding why.
Pete Bernard:
Yeah, totally. We see that a lot now and a big part of our process with customers is to start with the business leadership and talk about business outcomes and objectives and then let's get clear on what those are. And then the technology will follow. There's no shortage of tech, but if you don't have a North Star of a business outcome that you're shooting for, then you're probably just going to have a series of science experiments. Right?
Lou Lutostanski:
Exactly Pete, exactly. I think another thing I learned was that the true value of business transformation goes beyond just asset monitoring. And it must have a component of AI applied to the data that you're getting. And I think the initial reaction is, "Okay, I can monitor that machine and I don't have to have somebody stop by and check it." But that's really not what it's about. It's about taking information off the machine on a continuous basis and analyzing that and trying to predict things that are going to put you in front of the competition or things that are going to lower your costs or things that are going to please your customers, more than anything else. So much more than just simple machine monitoring, or asset monitoring.
Pete Bernard:
So, just kind of little sidebar, we're recording this podcast here in late March, and we're living in some extraordinary times as you know. And we've talked about that. I just saw a section on something last night on Rachel Maddow, is a company that had web connected thermometers and they were looking at their data, so you're talking about just kind of analyzing data, but they were looking at the trend data from their thermometers. Looking at it across the United States, and they believe that they're able to get a few weeks’ worth head start on where certain fevers and other higher temperatures are starting to occur. And I thought that was really an interesting way of thinking about, we think about sometimes
looking at data for preventing motor burnout and other kind of industrial things, but also the ability to predict certain trends based on kind of the analysis of that data could be pretty consequential, for sure.
Lou Lutostanski:
They say Pete, that there are billions of people that are confined to their homes right now. And the thing about IoT is if you scale it beyond a small sample of a thousand, if you really had sensors on billions of people, it's unrealistic to think you're going to send some poor guy a spreadsheet and try to ask him what the trends are globally. That's where AI comes into play and not being able to monitor individuals, but trends across geographies over time, and trying to predict where the next outbreaks are going to be and how long the outbreaks are going to last based on the temperature of all your subjects out there. So I think scaling IoT really requires AI to get the insights to the golden nuggets of what we're looking for.
Pete Bernard:
Yeah, definitely, yeah. They go hand in hand, the big data analysis and, IoT is there to provide a lot of that real time data across all kinds of geographies and transports and things. And then there's the action taken on the data that they really need the hyperscaler cloud and AI capabilities to do that. So, for sure.
Lou Lutostanski:
Exactly. I think another one of my learnings was I learned that customers will not live with 95% of the solution. If you give a customer 95% of the solution and you ask them to go figure out the other 5% it will never get done. So you've got to be able to walk the customer through and make it very, very easy, because this is very complex with all kinds of visible insight together. And there's very few people that understand all of it or even large pieces of it. So it's required to give a 100% of the solution to the customers.
Pete Bernard:
They say the last 10% of a project takes 90% of the effort, so-
Lou Lutostanski:
Exactly. And that's where all the value is added as well, right Pete?
Pete Bernard:
Sure, sure.
Lou Lutostanski:
Along a similar line, I've learned that there's no silver bullets for 100% repeatable solutions. They all require some modifications, and some are in hardware, some are in software, some are in AI, some are wireless infrastructure. And it goes back to what you just said. That last 10% is where all the hard work's done. But that's the thing that makes it fit specifically for the customer's application, for their own application. I think another thing that I learned is that without complete knowledge and capabilities of the IoT stack, including a robust security capability, an organization can never lead in IoT. They could participate but they couldn't lead. So I think that's very, very important. And I think few organizations possess that capability, which I think is another reason, if everybody had that capability, I think there'd be more IoT implementations out there.
Pete Bernard:
That's an interesting point. I was reading about McDonald's did an acquisition of a company in Israel and I think Walmart obviously has lots of technical capabilities. So, a lot of these bigger companies are building in-house technology capabilities. They're becoming software, and in some cases, hardware companies in addition to being restaurants or retailers or whatever. We talk also about Tesla being able to, the number of software engineers they have is really far and above any other automaker. So I think a lot of the technology companies, or companies I should say, that are really taking advantage of some of these C changes that are happening in digital transformation, are companies that are empowering themselves with more capabilities around technology. Whether those are in-house software capabilities or hardware capabilities. But like you said, you can't really take full advantage of the tech if you're a sort of a passive bystander.
Lou Lutostanski:
If you take somebody like Tesla, their software is core to their product. They are really a software product that has some metal wrapped around it. If you go to somebody like a McDonald's or other large corporations that have a lot of resources, their competitive advantage is their ability to predict what's going to happen. And doing that through IoT with a team that understands a lot of the pieces and bringing on other people to do parts of it, I think is good. But for the vast majority of the companies, in terms of numbers, they just don't have the resources to put all of it together or even understand most of it. And I think that's the big spot where IoT can shine in the future when it's allowed to scale.
Pete Bernard:
Yeah, for sure. For sure.
Lou Lutostanski:
At our company, I think one of our other lessons are, we learned that one company with all the capability to do end-to-end can never scale. The world is so vast, that just the resources within one organization, even if he can do it well for one, for five, for 10, when you talk about hundreds of thousands, it's not practical.
Pete Bernard:
Right, right. And that's a big challenge, right? We had someone on recently, talking about the heterogeneity of the ecosystem in IoT, relative to the PC. And this is a transformation that Microsoft's been going through, is how do we work with a broad range of commercial customers and a very broad ecosystem of Silicon partners, hardware manufacturers, system integrators. Like you said, it's kind of a team sport, I'd heard that before too. And in order to scale everyone needs to be able to glue pieces together essentially, or reuse platforms and other elements from different parts of the ecosystem to get to the outcomes they want to get to. So, I think it's part of it's are there the right platforms and tools out there and protocols, but also it's part education too. I think people just learning more about how they can make that connection to the cloud or add AI capabilities to their systems or get devices that they know will work with other devices. So it's a definitely a big problem to solve.
Lou Lutostanski:
Again, I learned that determining how to put together an infrastructure for people with hardware, IP, and services together, is the only hope of achieving scalability in the IoT market. So that's something that we spent a lot of time on.
Pete Bernard:
Yeah, we call it repeatable solutions. I think that's not a unique term. We try to help customers understand, there's a solutions out there for all kinds of business outcomes and being able to implement those without having to reinvent the wheel or pour sand in one end and the solution comes out the others kind of required because otherwise the ROI just gets blown up, and you can't start from scratch and invent everything from scratch and still get a good return on investment. So, I'm sure-
Lou Lutostanski:
It's really about two major things. One is scalability and one's time to market. Customers lose interest after a couple of years, right?
Pete Bernard:
Yeah, exactly.
Lou Lutostanski:
I do think speaking of the time to market and the losing interest, I think another big, big learning that I had is the action short term in IoT is going to be brownfield. So how do you take equipment that's been out there for a long time and retrofit it to get the information to the cloud and apply AI to provide immediate services to customers?
Pete Bernard:
Yeah, that's a big thing. We had talked about with Azure Sphere, the work we did with Starbucks and with you guys on outfitting those existing espresso machines. But I've also seen really interesting implementations where, by measuring things like current draw on motors, you can actually use that kind of dumb data and AI and anomaly detection algorithms on that current draw data to actually discern preventive maintenance and other things in the cloud, which is kind of fascinating. Real brownfield stuff where that device was not designed at all to be cloud connected but you're able to attach something to it to do some basic data monitoring and then use the cloud and some big data analytics to come to some conclusions.
Lou Lutostanski:
Exactly. By the way, Pete, those are the high level learnings I learn every day. I'm always smarter, two o'clock in the afternoon than I was at nine o'clock in the morning, every day.
Pete Bernard:
I feel like I get dumber as the day goes on. I don't know. I'm more of a morning person. I feel like I'm totally on my game at like 10:30 and then by four o'clock I'm just kind of listening at that point. I don't know what's going on, but that's just me. But I get the sentiment. Yes, of course. It's a daily learning.
Actually speaking of that, one of the things that I was reading about yesterday was, and we had mentioned kind of the extraordinary times that we're in, and there's an author named Yuval Harari and he's written some excellent books. One of the interesting things he said was that in emergency situations emergencies basically fast-forward historical processes.
Pete Bernard:
I think before we started recording actually we were talking about Teams and we're on Teams right now and recording. We're all using Teams a lot now on a daily basis. You were talking about how quickly Avnet has now sort of learned to use Teams, because we're in a situation right now where we have to, and so things that maybe would have taken six months, a year, or years, because of an emergency situation, they're being fast forwarded and they're becoming daily habits now. Whether that's online learning or working remotely. So it'd be interesting to see when the dust settles on this whole thing, which hopefully will be soon, what other processes have been fast forwarded that were sort of already in the pipeline, especially in the technology space.
Lou Lutostanski:
I would say you're 100% right. And I would think the leader in that category would be remote telemedicine. You see all the time, every night on the news, that doctors don't want to go in and visit patients and patients don't want to go to places where sick people congregate. Telemedicine was already something that was in development and I'm sure it's being accelerated right now to meet the current needs of the global marketplace. So I'd be very surprised if those programs hadn't been accelerated and people buying those types of products and demanding those kind of solutions yesterday aren't really driving a demand for telemedicine.
Pete Bernard:
For sure. I think that's a big one. Online learning, remote learning, remote work, maybe even take out on restaurants might get a little better. Might become standard fare. Actually one of the interesting things I've been using more, and I don't venture out much, but when I do venture out, I have a Fitbit Versa 2 that I've been wearing and it has a cool little wallet on there. And so I have my Amex card programmed in there and I can pay for things just by sort of leaning my wrist toward the payment instruments so I don't have to give anyone a card or get the card back and all this other stuff. So contactless payments I think is another thing that people will start to just kind of by necessity just start using much more. And I think that'll be another big, big thing that kind of sticks around after a while. But it'll be interesting to see what habits are we building now that will stick with us for a long time to come. Hopefully-
Lou Lutostanski:
Not to make this a Fitbit commercial but I have my Versa 2 on as well. And I absolutely love it, for all the same reasons.
Pete Bernard:
#Versa 2, we should get a sponsorship on them. Well the other thing, I was going back to that thermometer, that web connected thermometer example was fascinating data and you can look it up. Thinking about sort of the measured self, right? And that is kind of a what Fitbit and a bunch of other
companies are doing. So I'm getting this data about myself, about my sleep patterns and my resting heart rate and whatever and all that stuff and people will be, I think, a little more self-aware about kind of listening to their health and understanding where they're at and if there's things that they can wear, other things they can do to sort of be more self-aware about their health and trends in their health. That might be another thing that sticks around after all this too, which would be good, I think. I think people need to be self-aware about their health.
Lou Lutostanski:
Absolutely.
Pete Bernard:
I think we have a lot of work to do, a lot of work ahead of us to, like you said, help people stitch things together to get these repeatable solutions out there to get time to market. But also I think just kind of keeping our ears open as to how the world's changing around us and how we can help make sure that is a productive for everybody and healthy for everybody. So lots of work to do. Like you said, you've been in the business for a while. I think we still got another few decades of work ahead of us.
Lou Lutostanski:
I think it's just getting started. I think we're in for a 30-year run on IoT and all the things it can do. It's funny, people ask me all the time "Is it hype?" And I'm so excited every day about the stuff that we work on and it's not hype, but I understand why people think it is because we've been talking about it forever and the conditions aren't right yet for it to scale. And I think people bringing together ecosystems on a limited number of platforms will add to that scalability. And I would imagine five years from now it's going to be commonplace and 10 years from now people will forget when you couldn't get information off of any device.
Pete Bernard:
Right. Yeah, exactly. I think it's sort of extraordinary these days when you can show a system like that in process and how it can drive some great business outcomes. I think, like you said, 10 years from now it will not be extraordinary. It will be sort of required to be competitive out there and to just be able to use that data and be able to just make assumptions that data will be flowing and you'll be able to take actions on it. It's exciting. It's exciting stuff. Any kind of closing thoughts or words of wisdom, things we should squeeze into this podcast?
Lou Lutostanski:
I just think we're on a mission to bring people together and take the best that they have, like Microsoft’s Azure IoT suite and build on that. Allow people easy building blocks and interfaces to be able to how these implementations come together with the predefined rules. And I think until somebody orchestrates an ecosystem around the platform or maybe a couple people do, as you've had with iOS and an Android in the B2C space, I just don't think you're going to have the scalability that's going to make all of us happy. We're trying to make a living in this industry. I think picking key partners is very, very crucial to making this all work.
Pete Bernard:
Yeah, for sure. For sure. Well, I definitely share your perspective on that one. Lou, thanks again for taking the time with us. Really appreciate it and stay safe.
Lou Lutostanski:
Will do Pete, thank you.
Pete Bernard:
All right, take care.
Lou Lutostanski:
Have a good day. Bye-bye.
Pete Bernard:
This is Pete Bernard. You've been listening to the IoT Unicorn. Thanks for joining us. Stay tuned for the next pod.