Sept/Oct 19 - ChannelVision Magazine

EMERGENT Promising benefits such as lower labor costs, better tracking of assets, improved business processes and ef- ficient energy management, among others, makes IoT a compelling tech- nology for companies to invest in. But despite general satisfaction among early users, IoT has not yet achieved widespread adoption, suggest findings from Computer Economics. Indeed, IoT lags most of the other technologies in a recent Computer Economics study in terms of invest- ment, and it is the only technology the firm tracked in its Technology Trends 2019 survey that did not increase in its overall adoption rate this year.   According to the findings, the adop- tion rate for IoT is 18 percent of all organizations in both 2018 and 2019. During the same period, the percent- age of organizations making new investments in IoT also is essentially flat, ticking up from 25 percent in 2018 to 26 percent in 2019. The immaturity of commercial solu- tions is likely the largest aspect hold- ing back IoT, said CE researchers. While sensor options abound and new tech firms are rushing to fill the space, early IoT projects were mostly custom systems. So while companies can invest in “smart buildings” with auto- mated lighting and thermostats, when it comes to making their enterprises “smart and connected” it takes some in-house expertise as well. This is changing, particularly in ar- eas such as manufacturing and health- care where medical devices and indus- trial equipment already ship with em- bedded sensors, noted the IT research firm, but commercial IoT solutions for some sectors and applications are still farther away. “We have no doubt that the adop- tion and investment rates will rise in the coming years, as more organiza- tions take advantage of IoT’s abilities,” said Tom Dunlap, director of research at Computer Economics. “But for now, widespread IoT adoption is being con- strained by a few things. In addition to a limited (but growing) list of off-the- shelf solutions, a skills gap may be an issue. Most IT organizations have lim- ited experience in working with all the elements unique to IoT.” IoT Customers Happy; Adoption Not So Great LTE Poised to Predominate in Connected Cars Cars are increasingly shipping with con- nectivity baked in, providing an opportunity for automakers, fleet managers and telecoms to augment their revenue streams by gather- ing and transmitting data from those cars. But the types of connections employed will shift over time, in tandem with the available and most prevalent networks. In the near term, suggests analysis by Business Insider, that network will be based on LTE. 71% Consumers surveyed for 3cInteractive who had a chatbot interaction in which the chatbot could not answer their questions. This issue was respondents’ top reason for not finding value in chatbots. Source: BDO USA, LLP Internet of Things Adoption and Investment Rate Trend Source: Computer Economics Reasons for Specializing in a Vertical Industry by Job Role Source: CompTIA Customer demand Significant revenue opportunity Competitive differentiator Vendors pushing us in this direction In-house skills map to specific vertical Declining margins in other areas of the business Horizontal solutions not as lucrative IT Staff Business Staff 64% 59% 58% 48% 41% 44% 24% 26% 20% 26% 20% 20% 17% 15% Current Familiarity with Individual Emerging Technologies 3D printing 5G Artificial intelligence/ Machine learning Augmented reality Biometrics Blockchain Drones (applications/analytics /managed services) 26% 27% 19% 47% 34% 27% 28% 42% 30% 30% 26% 43% 31% 42% 28% 42% 31% 44% 29% 44% 31% Insignificant or No Knowledge/Familiarity Some Knowledge/Familiarity Significant Knowledge/Familiarity ogy Percent of Organizations 45% 18% 25% 18% 26% 30% 15% 0% 2018 2019 Adoption Rate Investment Rate LTE Connections Will Take Over the Connected Car Market By 2025 Source: Business Insider; Gartner; McKinsey 2015 2020E 2025E 36 192 900 60 343 259 77 80 102 18 Number of connected cars on roads by antenna type, global (millions) 2G 3G 4G/LTE LPWA 1400 1200 1000 800 600 400 200 0 8 Channel Vision | September - October, 2019