The Internet of Things (IoT): How Real is It Today?
This is the first Stratecast report focused on the Internet of Things (IoT), which generates Big Data from networks of connected devices and equipment, and uses it to optimize business operations and customer experiences. The report is designed to speak to the needs of these roles and teams:
Big Data, IT, and Data Science teams
Product and Sales & Marketing teams, including the CMO
All other Line of Business (LOB) stakeholders
The report’s main conclusions and key takeaways are as follows:
Nine billion devices are currently connected to the IoT; that figure is forecast to rise to between billion and billion by 2020. The economic impact forecast for IoT is from $ trillion to $ trillion by 2025. Every organization in every sector needs an IoT strategy.
Less than % of the respondents to Stratecast’s 2015 Big Data & Analytics (BDA) Survey indicated they are considering, planning, implementing or using IoT; IoT ranked 16th out of the 21 BDA solution types offered in the survey.
Architecturally, an IoT deployment has three basic components: edge, network, and core. The edge is where the managed devices, “the things,” live. The things contain embedded intelligence that links them via the network to the core.
IP version 6 makes IoT possible. Every device (thing) in IoT needs an IP address, and the maximum number of IP addresses under IP version 4 is approximately billion. Due to its expanded addressing field, IPv6 supports trillion trillion trillion IP addresses.
“The Internet of Things” is, in reality, a multitude of intranets of things. This siloed nature of IoT, however, could be a blessing in disguise by limiting the potential risk in the event that a device malfunctions, or if parties with harmful intent hijack a group of connected devices.
The most important question in IoT today is: who owns the data? Best practice as defined by Stratecast is that if you as a customer create the data, it is your data. At present, however, when IoT deals get done, the manufacturer of the devices being connected is often the only party, by contract or by default, with access to the data generated by the devices. This must change; with the intervention of IoT solution providers, it is changing.
In accordance with the previous point: those deploying IoT solutions should insist on obtaining data that is rightfully theirs. Stratecast urges IoT buyers not to contract with device manufacturers for these solutions; or, if they have already done so, to revisit their contracts and insist on full data access. Ideally, IoT buyers should contract with IoT solution providers such as those featured in this report—but the same guidelines apply: any deal must guarantee the IoT buyer access to all device data.
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