Enterprises view the Internet of Things (IoT) as a new revenue stream according to the second annual “State of the Market: Internet of Things 2016” report. Verizon’s IoT report includes primary research from Verizon along with insights from an Oxford Economics study commissioned by Verizon, practical use cases and other third-party research.
Revenue growth is by far the biggest factor driving IoT adoption in the enterprise, according to the report, and going forward this year IoT deployments are seen as a mainstream path to generating higher revenues for enterprises. This evolution within the enterprise – from IoT as a “nice to have” nod to innovation, to a “must have” cash generator – is the result of advancements in the past year in four key areas:
- Data monetization – Enterprises are just beginning to understand how to pull value out of the massive amount of data generated by connected devices, sensors, etc. Only eight percent of businesses are using more than 25 percent of their IoT data. In two to three years enterprises expect to use more than 25 percent of their data. Insight is valuable, and as enterprises put IoT-generated insight into practice (either for themselves or for their clients) IoT becomes a revenue center rather than a cost center.
- Core IoT networks – Until now, the cost to connect utility meters and other sensors and devices containing smaller chipsets (Category 1 devices) has been a major barrier to widespread enterprise IoT adoption, but the changing nature of the network is lowering this barrier. Additionally, 5G wireless technology will be able to handle more devices and new IoT categories like robotics, and virtual and augmented reality.
- Platform-as-a-service – IoT deployments are complex, involve the convergence of a variety of technologies and communications technologies, and carry inherent concerns about privacy and security. IoT-specific platforms – which make building, deploying and managing IoT solutions easier – are starting to develop and their continued proliferation will speed IoT in the enterprise.
- IoT startups – According to the report, last year investment in IoT startups addressing enterprise services outpaced consumer applications by 75 percent. The market sees the money to be made by IoT in the enterprise and 2016 should see enterprise IoT funding similarly dominate that of consumer.
“We are beginning to see keen interest from our enterprise clients as they realize the huge impact IoT will have on their business model,” said TJ Fox, senior vice president of mobility for Verizon. “The end result will enable businesses to intelligently advance their operational capabilities while better meeting customer needs in ways not previously thought possible.”
However, IoT successes are not just wishes for the future. Many enterprises and industries have already adopted IoT solutions and will provide learnings, and a roadmap, for others to follow this year. Three good examples of how enterprises are putting this technology to work for them include:
- Making buildings more efficient: BuildingLink.com, a connected residential property solution, used ThingSpace to create a sensor network covering the fitness center and laundry room facilities to allow residents to check real- time availability of treadmills, washing machines, etc. Additionally, the solution provides machine-specific utilization patterns so management can remove underutilized machines or add others to meet demands by residents.
- Connecting more cars: Safety continues to rank first in terms of the overall awareness and value of connected car for consumers and automakers. In addition to creating a pathway for more robust safety features, Verizon’s 4G LTE’s high bandwidth and low latency will enable entertainment features such as audio and video streaming as well– allowing for an enhanced driver experience
- Farming for oysters: Ward Aquafarms, a 10 acre, 1,000 cage aquaculture farm located in Cape Cod, Massachusetts worked with Verizon and Mobotix AG to monitor the safety of its Oyster harvest-to-bag process and predict growth. The company is dedicated to growing the freshest oysters possible and the IoT solution allowed them to pull satellite imaging data, environmental and sub-tidal water temperature, and chlorophyll values and gain valuable insights into its aqua farming operations.
For more information on the State of the Market: Internet of Things 2016 report, visit www.verizonenterprise.com/iot.
For more information on Verizon’s IoT solutions, please visit http://www.verizonenterprise.com/products/internet-of-things/.