Latest trends from the industry show that the tech-world is on a race to embrace the Internet of Things or IoT, another revolution after the internet.
Foreseeing the unlimited reach of IoT, leading players in the IT industry are actively funding IoT researches and developments.
In August, IBM decided to invest three billion dollars and hire 2,000 workers in its new internet of things business unit. The decision underlines the company’s desire to become a preeminent player and driving force in mainstream IoT adoptions. To date, IBM has invested over $10 billion to spearhead its interrelated IoT, Analytics and cloud initiatives.
A survey of over 450 businesses worldwide by Strategy Analytics showed that 30 percent of businesses have already started limited IoT deployments globally. 32 percent said their firms plan to deploy IoT, while 26 percent said their companies currently have no IoT deployment plans.
Recently, wireless company Verizon launched an IoT platform Grid Wide Utility Solutions for utility companies for their grid modernization. Grid Wide, now available in the U.S., offers solution for smart metering, demand response, meter data management and distribution monitoring and control to electric utility companies.
The U.S. has 147 million electric meters. Verizon’s Grid Wide aims to transform the delivery and consumption of energy for utilities and their customers. Verizon’s revenue from the IoT and telematics totalled approximately $165 million in second-quarter 2015 and $320 million year to date.
The IoT is a concept, where our everyday devices equipped with sensors and connectivity work together. Though, a fully functional IoT is still a far away notion, companies have already started delivering IoT-enabled services.
Telecommunications company AT&T said it has signed IoT deals with more than 136 companies across industries such as agriculture, automotive, aviation, energy, healthcare, transportation, security and supply chain logistics since January 2015,
AT&T network has added more than 945,000 connected devices in the first quarter of 2015. AT&T has posted 70 percent growth in IoT connected devices worldwide to 22 million. Of those devices, 684,000 were connected cars. AT&T is working with eight top automakers.
The GSMA, which represents the interests of mobile operators worldwide, said in July that China has become the global leader in the deployment IoT with 74 million M2M connections.
The future of IoT looks brighter as the world look forward for greater connectivity technologies. As part of this change, internet is rapidly gaining hold on machine to machine (M2M) communication.
Research agency IDC forecasts the global installed base of IoT to hit 28.1 billion devices in 2020, generating revenue of $1.7 trillion, with cellular M2M being a subset. The firm said M2M/ IoT has boosted telecom operators across the globe tremendously.
A survey conducted by Tripwire also backs IDC’s forecast with 28 billion IoT devices by 2020, delivering global economic value add of $1.9 trillion.
Another IT technology research company, Gartner said over 20 percent of enterprises will have digital security services devoted to protecting business initiatives using devices and services in the IoT by year end 2017.
IDC indicates that telecom operators will continue to play a principal role in building the M2M/IoT market.
Like internet, the IoT is set to transform the world in the near future. However, the adoption of this technology will not be easy as it carries a lot of challenges along with it.
In an IoT network, hundreds of thousands of devices would connect and communicate with each other. Hence, a number of hardware, application, sensors and devices are required. How these will work in a real-time atmosphere is a major issue to be looked at. Connectivity is critical as many of the applications require internet to start working. Since IoT devices are meant to self services, their battery life would be a concern. More than that, data security also should be an area of focus.