IoT to make up almost half of IT budgets by 2020, says TIA survey

A white paper for the Telecommunications Industry Association (TIA) from Machina Research emphatically reveals the coming importance of enterprise IoT and the central role systems integrators are playing in the commercial development and deployment of IoT services.

A survey of 200 businesses revealed the vast majority will be using IoT services within two years and that nearly two thirds of companies are currently working with systems integrators to progress internal IoT projects.

“Overwhelmingly businesses have woken up to the transformational benefits of IoT and are rushing to deploy those services, but at the same time appreciate there may be a rocky road ahead turning a good idea into a technically feasible and profitable one,” said Jim Nolan, executive vice president, IoT Solutions, at InterDigital. “This is where companies like IBM, HP, Tech Mahindra, Wipro, Accenture and other system integrators are worth their weight in gold, making the link between specialised IoT providers and the applications that companies need to leverage connectivity.”

Jim Nolan, executive vice president, IoT Solutions, at InterDigital
Jim Nolan, executive vice president, IoT Solutions, at InterDigital

The research report, co-sponsored by InterDigital and Telit, shows that overall demand for IoT applications and services remains extremely high, with the vast majority of decision makers (91%) expected to be using some form of commercial IoT service within the next two years. Indeed, almost half (48%) are benefitting from them today.

As partners, they’re turning to those they trust ahead of those most specialised, with systems integrators (28%) and business software partners like Salesforce.com and Oracle (16%) leading the responses. Even among IoT companies, the focus was on end-to-end solution providers, whether standards-based (16%) or proprietary (15%), versus technology suppliers. Interestingly, mobile operators were not a partner of choice, with only 8% of respondents seeing them as primary providers.

In terms of driving adoption, cost savings held the edge over expanding business, with monitoring for maintenance (25%) and reducing operational expenses (25%) comprising half of respondents’ top strategic reasons for deployment, versus just over one third of respondents who favored expanding revenue opportunities (18%) or better competing with rival products and services (18%).

With such vast scale building around commercial IoT deployments, decision makers singled out the importance of agreeing a set of IoT standards to futureproof new services. Such an open commitment to standardisation will ease the task facing systems integrators in developing and building adaptable and interoperable IoT applications.

Of the businesses participating in the research, 66% highlighted standards as being either crucial or significantly important in the adoption of the IoT services over the next couple of years. As part of the solution for solving the complexity of incorporating IoT, 76% of companies are either exclusively or primarily focusing on integrating legacy business systems with IoT solutions to get them fit for purpose.

Other key findings of the report included:

  • On average, 44% of IT budgets will by 2020, be solely used for the purpose of IoT project development and maintenance
  • 76% of enterprises indicate they have short-term (i.e. within next two years) goals for the integration of new IoT solutions with legacy systems
  • 98% of decision makers consider product monitoring useful to their businesses, with 78% indicating the ability to receive real-time data from their products would be extremely beneficial
Andy Castonguay, principal analyst, Machina Research
Andy Castonguay, principal analyst, Machina Research

“The importance of marrying IoT with the existing legacy systems cannot be downplayed. Along with having a set of standards in place, businesses will be leaning heavily on system integrators to weave the future with the present,” said Andy Castonguay, principal analyst, Machina Research and lead author for this report. “Our research shows businesses are prepared to set aside nearly half of their IT budgets by 2020 to get this right, demonstrating just how much of an opportunity IoT represents.”

InterDigital develops wireless technologies for mobile devices, networks, and services. It is a key contributor to global wireless standards, designing and developing a wide range of innovations that are used in digital cellular and wireless products and networks, including IoT, 2G, 3G, 4G and IEEE 802-related products and networks.

The full TIA White Paper, entitled ‘Internet of Things Enterprise Survey’, is available to download on www.interdigital.com 

Comment on this article below or via Twitter: @IoTNow_ OR @jcIoTnow

RECENT ARTICLES

Aeris to acquire IoT business from Ericsson

Posted on: December 8, 2022

Ericsson and Aeris Communications, a provider of Internet of Things (IoT) solutions based in San Jose, California, have signed an agreement for the transfer of Ericsson’s IoT Accelerator and Connected Vehicle Cloud businesses.

Read more

Telenor IoT passes milestone of 20mn SIM cards

Posted on: December 8, 2022

Telenor, the global IoT provider and telecom operator, has experienced rapid growth over the last years and ranks among the top 3 IoT operators in Europe and among the top IoT operators in the world. The positive development is due to an accelerated pace of new customers combined with a successful growth of existing customers’

Read more
FEATURED IoT STORIES

The IoT Adoption Boom – Everything You Need to Know

Posted on: September 28, 2022

In an age when we seem to go through technology boom after technology boom, it’s hard to imagine one sticking out. However, IoT adoption, or the Internet of Things adoption, is leading the charge to dominate the next decade’s discussion around business IT. Below, we’ll discuss the current boom, what’s driving it, where it’s going,

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more