IoT: Young But Growing Up Before Our Eyes
November 12, 2014
The Internet of Things (IoT) is a spectacular notion of existing in a wholly connected world. IoT connectivity solutions, processors and sensors are just some of pieces allowing one’s refrigerator to “restock” itself or cars to drive themselves; this “smart” new world has much to offer, and we have only begun to see what type of possibilities exist for the IoT.
A recent Gartner (News - Alert) report stated that by 2015, there will be 4.9 billion connected devices with that number ballooning to 25 billion by 2020. Its disruption is being felt across the proverbial board, many companies have jumped on the IoT band wagon while others, if not yet, are feeling pressure to join the party.
“The digital shift instigated by the ‘Nexus of Forces’ (cloud, mobile, social and information), and boosted by IoT, threatens many existing businesses. They have no choice but to pursue IoT, like they’ve done with the consumerisation of IT,” says Jim Tully, vice-president at Gartner.
IoT expansion means more revenue, bottom line (no pun intended). The top three areas using IoT in 2015 are forecasted to be utilities, transportation and industry. As adoption on the commercial level expands, we see a two pronged effect.
First, with all these connected devices there is the question of: Who’s going to maintain and service my devices? An enterprise’s devices will prove integral to success as they will be directly linked to services and products provided. With no data to mine, or services to offer, ‘Houston we have a problem.’ For this reason it is no surprise to see Gartner project that by the end of next year total spending on the support of the IoT will nearly reach $70 billion and $263 billion by 2020.
“A large portion of marketing dollars are wasted when the wrong offers are made to the wrong people at the wrong place and time… The IoT will generate an enormous, truly unprecedented amount of precise information about buyers and their needs. It’s a marketer’s dream come true.” Jon Gettinger, Sr. Vice President of Marketing, Aria (News - Alert) Systems.
Secondly, the growth in commercial use will begin to “standardize” a certain level of connectivity or intelligence, which should then filter down to mainstream offerings. One company leveraging this tech today for the mainstream is Nest, and there are many more out with even more to follow in the coming years.
The IoT can be used as amazing tool get a “behind the curtain” look at business transactions, efficiency and productivity as well as consumer behavior. It is more than a vision from futuristic movies like Back to the Future II or The Fifth Element; this is very real and offering invaluable opportunity for those entering the market.
In a recent interview, Vernon Turner, Senior Vice President, Enterprise infrastructure , Consumer Network, Telecom and IoT research, IDC (News - Alert) stated, “The opportunities presented by IoT are driving widespread attention among both traditional and non-traditional ICT vendors looking to take advantage of emerging revenue opportunities. ...We're still in the early stages of maturation and IoT represents unparalleled opportunity in government, consumer, and enterprise environments.”
Edited by Stefania Viscusi
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