Photo - Serene Chan, Information and Communication Technologies Industry Manager, Frost & Sullivan.
The Internet of Things (IoT) wave offers opportunities for Malaysian ICT companies to diversify and speed up slowing growth, said analyst firm Frost & Sullivan.
Serene Chan, Frost & Sullivan's Information and Communication Technologies industry manager, recently presented new findings from the Connected Industries Insight study, which included the impact of the emerging IoT landscape in the Asia Pacific region.
Chan said the ICT sector in Malaysia was nearing maturity and revenue growth from core sectors was slowing down.
However, (IoT) was opening up new forms of business services, she said. Communications service providers (CSPs) especially should leverage their core competencies to capture horizontal revenue streams stemming from IoT, such as managed services and security, and cloud computing and storage.
The new analysis found that the IoT market in Asia-Pacific was expected to grow at a compound annual growth rate of 35.1 percent between 2014 and 2020.
Chan said that In Malaysia, the deployment of IoT will gain traction in the transportation, logistics and connected consumer sectors such as wearables, connected homes and home automation.
"Readily accessible and cost-effective storage, computing and programmable networking systems are fuelling novel business applications and IT delivery models, thus facilitating a distributed intelligent network," she said.
"Embedded systems will provide the crucial link between cloud solutions and fully autonomous end devices, speeding up the transition to IoT," said Chan.
She said that finding value in 'the vast array of unstructured machine and connected device data available will be critical to support IoT-based services for a variety of industries.' Currently, less than one percent of the data captured by sensors is used for analytics and optimisation.
In addition, Chan said Malaysian CSPs 'struggle to offer IoT services due to market fragmentation as well as security and privacy concerns. These challenges are organisational rather than technical in nature, as CSPs still focus on selling connectivity instead of solutions and services. '
"Entering into the IoT space requires industry players to acquire capabilities beyond their core functions. The CSPs in Malaysia must collaborate with a variety of partners to deliver relevant end-to-end services in specific industries," she said. "Thus, evolving from a cost-optimized connectivity provider to an IoT service provider will drive business objectives and enable innovations in the changing ICT domain."
Internet of Things is a Market Insight that is part of the Connected Industries Insight outlines opportunities for Malaysian CSPs stemming from the advent of IoT. The insight also includes case studies and examples of IoT best practices employed by CSPs.
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