This deliverable details the state of the art relevant to the COMPOSE project and describes the envisioned progress beyond the state of the art. It also points out the technological baseline for the different aspects of the project, namely technologies that will be brought to the table by partners at the beginning of the project development cycle. The sections of this document cover various aspects that follow naturally from the aims of the project: These are Objects as a service (WP2), Service-oriented software engineering (WPs 3.1, 3.2), Scalable communication infrastructure (WP4), Security (WP5), as well as Marketplaces and app stores (WP6). Finally, the deliverable also discusses selected finished and ongoing related research projects, showing how COMPOSE builds on their work and advances the state of the art. In effect, the deliverable lays out the plans of the COMPOSE project, as seen at the project’s very beginning.