Systems Integrators are pivotal to success of US enterprise IoT deployments

The commercial potential of the Internet of Things (IoT) is impossible to accurately quantify. It has broad implications for any industry with merely the slightest reliance on technology.

The US enterprise market is perhaps one of the more advanced markets for IoT – both in terms of future strategy and actual deployments. IoT applications are set to be fully mainstream within US enterprises by 2019 as they look to integrate new capabilities within their existing systems for maximum return or cost savings. This presents an extremely lucrative window of opportunity for systems integrators (SIs) to work most closely with these enterprises.

A two year horizon

Commissioned by InterDigital, The Telecommunications Industry Association (TIA) and Machina Research recently undertook a study that looked at IoT progress across the US enterprise space. It revealed that the vast majority of organisations are looking to integrate IoT with their legacy systems in the next two years. Most US enterprises are looking for additional efficiencies that IoT applications will bring to existing ‘tried and tested’ processes, says Jim Nolan, EVP, IoT Solutions at InterDigital.

When you think of the significant number of these processes that could be positively impacted, the overall gains for enterprises will be substantial. So it comes as no surprise that almost half of all US enterprises that participated in the TIA study reported that by 2020, almost half their IT budgets will be allocated to the advancement of IoT across their operations.

Systems integrators: at the front of the queue

So why are SIs, and not the more recognised end-to-end standardised IoT systems providers, or specialised IoT service providers, standing in the front of the queue as the checks are being handed out? Why aren’t software platform providers, IoT platform providers or even mobile operators more recognised by US enterprises as the ‘go to’ IoT solution?

The sheer number of potential providers helps provide the answer. The current IoT landscape remains extremely fragmented. There are too many pieces in the jigsaw for most enterprises to easily navigate, assess and deploy. Most therefore turn to their trusted systems integrators who understand their legacy systems, IoT landscape and how to build end-to-end IoT solutions.

Jim Nolan, EVP, IoT Solutions at InterDigital
Jim Nolan, EVP, IoT Solutions at InterDigital

According to the TIA and Machina study, 28% of US enterprises rank systems integrators as their top trusted choice as an IoT partner. Furthermore, 59% of these enterprises also admitted that system integrators are playing the leading role in helping to roll-out IoT. They also provide assurance over some of the most cited IoT complexities that include integration with legacy systems, security aspects, service level assurance, and implementation costs.

With great power comes great responsibility

These statistics are indicative of most US enterprises. If you consider the cost savings or revenue potential provided by so many new potential IoT applications from so many organisations, you begin to realise what a huge responsibility these SIs have. Finding a trusted partner for any project can be a daunting task. Yet companies like IBM, Harman, HP, Tech Mahindra, Wipro, Accenture, and other system integrators are clearly proving their value by reducing complexity.

The complexity will dissipate as consolidation within the IoT ecosystem will surely have an impact. According to the TIA study, there are currently more than 200 IoT platform providers – this is simply unsustainable. In order to succeed many of these vendors will need to emulate SIs – develop the necessary capabilities, assets, partners, and ecosystems to see their piece(s) of a complete IoT solution get deployed in a comprehensive end-to-end approach that removes as much complexity from the process as possible.

SIs and enterprises know the IoT is built on standardisation

Enterprises have been passionate in their calls for IoT standardisation for many years. Many are now reaping the benefits as they look to deploy vast systems globally. However, a key outcome of intense periods of technology innovation can lead to the development of competing technologies, protocols and even standards.

With the complexity of available IoT-capable technology choices, SIs and the enterprises they represent, face the daunting challenge of determining which solutions will not only achieve their business objectives, but also allow for the integration of legacy systems and a path to future interoperability.

The proliferation of standards at various levels of the IoT service delivery chain presents a unique challenge to companies looking to connect and improve their products and services. Enterprises must stick to mainstream standards or their SIs will face an insurmountable challenge in keeping ahead or up to speed with the latest innovations.

The vast majority of enterprises consider standards to not only be important to their company’s and industries, but also as a key approach to futureproofing their products, systems and operations while also ensuring smoother IoT implementations.

It’s interesting to note that the majority of early IoT adopters within the enterprise come from industries where standards have been very well established and where there are fewer legacy systems to integrate. The role of standardisation is clear: It is critical to driving growth and confidence in the IoT and will ensure enterprises and SIs can collaborate effectively to keep faith with the IoT dream.

The author of this blog is Jim Nolan, EVP, IoT Solutions at InterDigital

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


New Cadence Xcelium apps accelerate simulation-based verification for automotive, mobile and hyperscale designs

Posted on: July 4, 2022

San Jose, United States – Cadence Design Systems, Inc. announced Xcelium apps, a portfolio of domain-specific technologies implemented natively on the Cadence Xcelium logic simulator kernel that enable automotive, mobile and hyperscale design teams to achieve the highest verification performance. By mixing and matching Xcelium apps, customers can achieve up to a 10X regression throughput improvement.

Read more

ThunderSoft joins SOAFEE SIG, working with partners to define software architecture and reference design for future vehicles

Posted on: July 4, 2022

Beijing, China. 4 July 2022 – ThunderSoft, the operating system products and technologies provider, has officially joined the SOAFEE SIG (Scalable Open Architecture for Embedded Edge Special Interest Group) as a voting member. With its technical strength in Smart Vehicles and AIOT, ThunderSoft will strengthen the group’s software ecosystem as it continues to define a

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
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox