IoT: Enterprise Mobility’s Billion Dollar Buzzword
How does a business quantify technological advancement when it involves … everything?
Is there return on investment involved in the form of money? Is it time? Efficiency? What exactly constitutes justification for sponsoring a massive digital movement in the enterprise when the outcome has neither been proven or even tested?
Enter the Internet of Things.
What is the Internet of Things? Well, it’s everything that has the capability to connect to – you guessed it – the Internet. So it’s a bit amoebic, not really endless, and somewhat difficult to monetize, considering it already exists.
But despite all that, solution providers and end-users alike are diving into the fray headfirst. It was announced recently that Dell EMC was making the biggest IoT bet to date, committing $1 billion over three years for research and development to “create hardware and software that helps manage billions of everyday devices connected to the web.”
“We think edge computing could be 100 times bigger than the Internet as we know it today,” said Chairman Michael Dell after the announcement. “That may sound crazy right now but give it a few years and I think that will be more understood.”
In a recent survey fielded by Enterprise Mobility Exchange, just 12% of IT executives said IoT was among the top three priorities they were addressing in 2017. However, in that same survey, 48% of those executives said they were strategizing how to best address a connected enterprise. Another 20% claimed they had already begun initiatives that would enable a fully connected enterprise.
See related: Learning Before Leading With Enterprise IoT
“You have to start with what the definition of IoT is,” said Jeff Orr, analyst with ABI Research. “Each company wants to personalize it; whether it’s IoT, security, AI, etc., there’s a lot that businesses need to be thinking about. There’s a disillusionment that bringing in new technologies will solve everyone’s fears and worries. That puts way too much hope in a reality that likely won’t happen.”
“This is one of the most exciting times in the history of human development,” said Dell during a keynote speech at VMWorld in Las Vegas. “With digital transformation, it’s game on.”
The Dell investment may not be as wayward as one may think, even considering the nine-zero commitment. As previously reported by Enterprise Mobility Exchange, the IoT market value is expected to boom in the next half decade. The volume of connections and devices is driving unparalleled growth, as forecasts show a 321% increase in the IoT market value between 2016 and 2021.
IoT’s market is defined by software solutions, platform, service, application domain, and region. That market capped 2016 with a value of $157.05 billion, and is expected to have a CAGR of 33.3%, reaching a jaw-dropping $661.74 billion threshold in just five years.
What’s behind the growth?
- Development of cheaper and smarter sensors
- Growth of high speed networks
- Rising adoption of cloud platforms
- Software solutions will dominate the market’s growth factors
- North America has biggest share of market, while APAC will see highest CAGR
So is IoT really going to change the way enterprise technology pushes transformation forward? All signs point to yes. At least until the next buzzword comes along.