Companies could save 28% IoT connectivity costs with ‘Hyperscale’ solution

Transforma Insights published a White Paper, written in collaboration with network operator Telia, which finds that companies could save US$117 billion (€96.57 billion)by using a ‘Hyperscale IoT Connectivity’ solution. This equates to 28% of IoT connectivity costs.

Buying Internet of Things (IoT) connectivity involves an increasingly complex set of decisions. The technology landscape is fragmented, regulatory requirements are becoming ever stricter, the number of tools on offer can be dizzying and the scale too is becoming ever greater. The costs of missteps are increasing dramatically.

For this reason, the report advocates a new approach to delivering IoT connectivity, which meets the changing demands for IoT connectivity in the 2020s. The new requirements, which Transforma Insights describes as ‘Hyperscale IoT Connectivity’ meets the new demands for localisation, increased security, cloud integration, and compliance with various regulations, and does it at scale.

According to the report, “To fully take advantage of the new technologies available and to mitigate the risk associated with the new commercial and regulatory reality, connectivity offerings must also change. Transforma Insights has identified a set of characteristics of an optimum global cellular IoT connectivity offering, which it considers under the umbrella of Hyperscale IoT Connectivity (HIC).”

The report further digs into the 11 areas where enterprise IoT adopters stand to benefit from deploying a relevant connectivity solution. Some of the benefits relate to using eSIM/eUICC, for instance in terms of supply chain efficiency. The majority, however, relate to other benefits such as more streamlined device-to-cloud integration, faster time-to-market for products, and superior security.

In total, these savings could equate to $117 billion (€96.57 billion)for enterprises around the world over the next decade, versus using non-Hyperscale connectivity. This is the equivalent of 28% of the total spend on cellular connectivity over the period.

The consumer and government sectors stand to save the largest amount in absolute terms. Manufacturing could save the most proportionately; failing to use Hyperscale IoT Connectivity will result in greater compliance costs for the sector than its entire spend on cellular connectivity.

Matt Hatton

Commenting on the results, author Matt Hatton says, “We are delighted to unveil the results of this research which builds on the unrivalled detail of IoT market forecasts that we produce at Transforma Insights.

The key message from the results is this, choosing your connectivity solution is not just a question of sticker price. The implications of picking a sub-optimal solution is substantial in terms of additional supply chain, integration, security and other costs as well as compliance risks and your product time-to-market.”

Enterprises that would like to understand better how to effectively deploy IoT or other disruptive technologies should join the Transforma Insights User Group, a new member community, connecting business leaders who spearhead digital transformation strategies and enterprise change management.

The White Paper is available to download here.
The Telia version is available to download here.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow


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