May 11, 2016The Internet of Things, a technology ecosystem of sensor components that communicate data via Internet protocols, delivering intelligent, measurable information to improve overall efficiency for many types of organizations and even for consumers, is becoming a hot subject for discussion these days. The concept of the IoT has revolutionized the way in which organizations across industry verticals interact with their customers, and helps them to increase operational efficiency and optimize business outcomes.
Thanks to miniaturization and falling costs, IoT sensors can be integrated into homes, workplaces and public places. This process enables objects to connect and manifest themselves over the internet. In addition, any object can be a data source in the Internet of Things. The IoT is not a revolutionary or innovative concept—it is an evolutionary perception, equivalent to the evolution of current networking technologies, such as the internet, service platforms and wireless.
When the IoT concept was first introduced in 1999, there were many questions about which types of wireless communication modes should be incorporated into devices, and about the changes that would need to be made to the existing infrastructure to support a connected ecosystem with millions of connected devices.
Fortunately, many of these uncertainties are now gone, and the falling cost and size of sensors has made them more accessible. Sensors are the most important components of the IoT ecosystem, because they generate information about events or changes in variables, such as temperature levels. Additionally, the introduction and evolution of the Internet Protocol version 6 (IPv6) standard is driving the demand for connected technologies across organizations.
The deployment of IPv6 has shown a positive impact on IoT ecosystems. High-speed network connectivity, such as 3G, 4G, 5G and Wi-Fi, has created many new options for organizations, which can now leverage connected devices for faster and more efficient communications. Cloud platforms also present a perfectly cost-effective and easily deployable alternative for storing, managing and analyzing a huge amount of data in real time. Cloud-computing technologies are providing companies a way in which to connect traditional information systems to IoT-enabled devices.
The IoT, in combination with cloud-computing and big-data technologies, is creating lucrative opportunities for organizations. All industry verticals are undergoing a huge transformation in a bid to move toward affordable, accessible and quality services for their customers. New applications and use cases, a result of cutting-edge technology innovations, are being developed to address changing industry needs. The increasing number of connected devices and the proliferation of smartphones have contributed significantly to the rise of the IoT.
Software Solution: A Replacement for Physical Complications
It has been observed that when anyone talks about the concept of the Internet of Things, the hype has always been about sensors, smart devices or objects, wearables and connectivity technologies. However, the IoT is not only about hardware or devices that are connected to the Internet; rather, it is more about software solutions and platforms. Smart objects in the IoT need to execute intelligent algorithms for interacting with other things and/or humans in an efficient way, discarding irrelevant data. They also need to take informed decisions and actions on behalf of end users in order to eliminate human efforts.
Cloud-based software solutions are designed to meet interoperability challenges that arise due to heterogeneous devices. They also manage large volumes of data using tools to ensure that the information is shared and stored securely and in observance of privacy laws. Moreover, cloud-based applications help to manage and monitor wired and wireless connected products and assets. Software solutions help to mitigate interoperability issues, thereby creating flexibility, and also help with various business functions. Organizations use various software solutions, such as real-time streaming analytics, application security, network security, network bandwidth management, data management and remote monitoring, to manage their IoT ecosystem.
Big Data + Internet of Things = Data of Things
Data is crucial in every sector, and analyzing it in order to reveal patterns in that data, or to develop logical information from it, is of utmost importance. Huge data volumes are generated through various smart and connected devices, which are used for industry-specific applications. This data could be transformed into crucial information and insights with the help of advanced IT solutions to yield greater efficiency, productivity and profitability for organizations.
Advanced solutions, such as real-time streaming analytics and data management, have transformed conventional management into fact-based, decision-driven management. These solutions enable organizations to analyze collected sensor data in real time, even if it was generated in heterogeneous formats. Such systems leverage real-time remote management and monitoring, as well as insights gained from remote devices. Moreover, they also help to detect anomalies in real-time data, and to trigger alerts when that data indicates problems within a system. This can assist organizations in easy decision-making, retaining customers and taking appropriate business-related decisions in real time.
IoT: A Long Way to Go
MarketsandMarkets' new research study, "Internet of Things (IoT) Market," traces the growth of IoT platforms, software and services across various industry verticals in the coming years. According to the analysis, the IoT market is expected to grow from $157.05 billion in 2016 to $662 billion by 2021, at a CAGR of around 33 percent during that span of time. Software solutions are expected to lead the overall IoT market, owing to the increasing number of applications and the widespread adoption of cloud computing across organizations. Meanwhile, services are expected to witness the highest growth during the forecast period of 2016 to 2021.
The reality is that the IoT has been developing for several years and will open the door to endless opportunities during the next five years in this connected world.
Sameer Bhatnagar is a research manager at MarketsandMarkets, a global market research and consulting company, and works with telecom and IT practices. He has been conducting research in information and communications technologies for more than seven years, including analytics and big data, security, and the Internet of Things.
Sapan Shah is a senior research analyst at MarketsandMarkets, a global market research and consulting company, and works with telecom and IT practices. He has covered everything from analytics to big data, security, cloud computing and the Internet of Things, while working on a number of custom and syndicated research assignments with large multinational organizations.
