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Internet of Things gains momentum among businesses: Verizon report

Zafirah Salim | Feb. 25, 2015
The report predicts that by 2025, organisations that adopt IoT extensively will be at least 10 percent more profitable than organisations that do not.

Enterprise adoption of the Internet of Things (IoT) is starting to gain momentum, according to a new report from Verizon Enterprise Solutions.

Titled "State of the Market: The IoT 2015", the report details key factors driving the increase in IoT deployments and includes guidance for business and public sector leaders on developing an IoT strategy.

According to Verizon's report, IoT is being fueled by technological, political and social factors that are driving more organisations to adopt IoT-enabled solutions. For instance, the use of social media and mobile technology has transformed consumer and citizen expectations. Also, the declining costs of sensors, connectivity and processing power have made IoT a more viable proposition to a broader set of organisations. Changing regulatory requirements across a number of industries are also making an impact.

"New use cases are created every day. However, the business case for IoT and enterprise adoption often gets overlooked. Within the past year, amid an improving economy, we've seen a number of new entrants starting to use IoT as a roadmap to improve their customers' experiences, accelerate growth and create new business models that are driving societal innovation," said Mark Bartolomeo, vice president IoT Connected Solutions at Verizon.

Enterprise IoT growth forecast

New research commissioned by Verizon from ABI Research forecasts massive growth broadly, with the number of business-to-business IoT connections - more than quadrupling between 2014 and 2020 - rising to an estimated 5.4 billion connections globally.

In the automotive industry, Verizon's telematics experts note that 14 car manufacturers account for 80 percent of the worldwide automotive market, and all of them have a connected car strategy.

Additionally, ABI Research cites that organisations will introduce more than 13 million health and fitness tracking devices into the workplace by 2018. Verizon experts predict that by 2025 smart cities capabilities will become a critical consideration for companies deciding where to invest and open facilities, due to their impact on operating costs and talent availability.

Barriers to growth

Despite the recent growth in M2M connections and IoT-enabled solutions, Verizon's experts believe that widespread enterprise adoption is currently low.

Verizon experts estimate that just 10 percent of enterprises have deployed IoT technologies extensively - suggesting that many organisations are in a pilot phase or are waiting for more insights from early adopters. This also applies to widely covered categories such as the connected car. According to Verizon's telematics experts, more than 600 million vehicles worldwide are currently not connected to a network.

Bartolomeo points out that while the core technologies powering the Internet of Things - sensors, cloud computing, intelligent networking - are familiar to most businesses and public sector organisations, formulating a viable strategy and developing IoT solutions can be highly complex. He added that there is still a lot more work to be done with regards to the creation and ratification of industry standards.

 

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