The Internet of Things (IoT) will continue its phenomenal growth into 2017 and beyond, however, what does that mean for your business? The overall hype would make this seem like the gold rush days, but the reality is many companies have either failed or not achieved anticipated results.
The Google Nest is one example. That’s why it is important to understand the underlying trends driving this paradigm shift in 2017 and not become “another good idea that didn’t make it.”
According to studies by Machina Research and other research firms, the following five key trends are to watch for in 2017:
- Rapid growth: IoT is exploding into every marketplace, and everyone from consumers to investors are demanding more. 45% of IT budgets will be dedicated to IoT by 2020, and 69% of enterprises (80% in manufacturing) intend on collecting user/customer data through smart devices vs. indirect and conventional means, says Syed Zaeem Hosain, chief technical officer, Aeris.
- New support demands: The data overload IoT creates is putting tremendous pressure on infrastructures, and this requires all-new levels of support to ensure speed, operating status and overall reliability. And since the majority of enterprises, service providers and original equipment manufacturers (OEMs) don’t have the budgets or expertise, they are actively engaging third-party vendors for solutions.
- Maintenance: “Things” break down, especially if they are not properly maintained. Many IoT-based companies have already gone out of business due to buggy products and/or inadequate maintenance. Even for a viable business, lack of maintenance can result in huge total cost of ownership for both end users and companies having to fulfill warranty obligations.
79% of manufacturers surveyed said predictive maintenance was their No. 1 reason for adopting IoT, and enterprises in all industries said maintenance via IoT offered the best opportunities for growth. Tesla is a prime example of this trend, as they easily (and cost effectively) remedy maintenance issues simply by pushing a software update to the affected cars.
- Bimodal IT: It’s tempting to “start fresh” with IoT, but the fact is many traditional IT practices (as well as legacy systems depending on your company’s size) still work . . . well. The best approach is to seamlessly incorporate the old and the new. 70% of short-term IoT budgets will be spent on legacy integrations.
- Ever-increasing mobility: This is, and forever will be, endemic to IoT. To be successful, you need to deliver wherever and whenever smart devices are needed. Otherwise you risk missing out on growth opportunities.
What’s key to turning these trends into your competitive advantage is having the right foundation. You need an IoT infrastructure that’s reliable and easy to support, can instantly scale, makes maintenance both “boring” (no surprises) and cost effective, and can seamlessly coexist with your existing operations. Once in place, such a foundation empowers you to rapidly grow in any market without any drawbacks.