The Internet of Things and Cloud Computing: State of the Market 2015

The Internet of Things (IoT)—networked devices that include everything from connected cars to Internet-enabled home appliances—continues to gain momentum among businesses, according to a new report from Verizon Enterprise Solutions called the State of the Market: The Internet of Things 2015. And cloud computing and networking are key foundational elements enabling this growth.

Last year there were an estimated 1.2 billion business-to-business IoT connections. That’s up from less than a billion in 2011. According to the Verizon report, that number is expected to grow to more than 5 billion in the next five years. Verizon customers in manufacturing, finance/insurance, and media and entertainment have all seen triple digit growth in connected devices in just the past year. The Internet of Things and cloud computing are already playing a role in how we receive health services, manage public utilities, and build and manage cities.

Networking and cloud computing are at the heart of IoT comprising half of the key ingredients that make IoT possible (security and infrastructure are the others), according to the report. This is not surprising given the fact that IoT needs reliable, flexible network connections (both wireless and wireline) to move all the collected data and information from devices back to a central processing hub (even as work is underway to develop intelligent devices that process data at the edge of the network). Similarly, cloud computing provides the flexibility, scale and security to host applications and store data. It also enables easy plug in to monetize and share data with third parties.

This all makes sense when you consider that the industries that are embracing IoT are the same that have invested in cloud-based technologies to improve customer service, business operations and effectively manage risk: healthcare, manufacturing, public sector, etc. Enterprises need a strong, cloud-based infrastructure if they are going to get the most value out of IoT initiatives.

For more information or to get a full copy of Verizon’s State of the Market: The Internet of Things 2015, visit http://verizon.com/about/news/internet-things-verizon-resource-center/.