IoT Spurring Growth of Smart Devices
Legacy IT companies have been traditionally slow to identify the growth potential in emerging technologies. As modernization engulfs the whole of IT industry, businesses need to show much lesser resistant to change. There has been a powerful shift towards the business adoption of IoT. The IoT market of US is currently being valued at $9 billion. With the rise of SMBs businesses, it will be interesting to see how big manufacturers of IoT technologies look to accommodate their new customer base.
Techaisle's recent report suggested that adoption of IoT has become more prevalent in SMBs than larger business. With SMBs taking up IoT devices thrice as faster, the mid-maket sector has truly become the melting point for IoT solutions providers. Techaisle CEO Anurag Agrawal mentions, “Broadly speaking, small and midmarket firms recognize IoT’s potential to increase productivity, improve processes and boost revenue.” He further adds, “Midmarket firms, though, which have deployed more productive infrastructure, are much more apt to see this potential than their small-business counterparts. The key point is that when SMBs deploy IoT, they should be quickly ushered into analytics — how the data collected helps them with productivity gains, new revenue sources and process improvements."
Another report by Aruba highlighted some of the key trends shaping up in the IoT industry. The report found out that IoT’s influence in an enterprise environment is slowly on the rise with 72 percent of companies, opting for IoT devices and sensors to make the workplace smart. IoT devices are mostly used for security/surveillance, asset tracking or proactive alerts and remote monitoring purposes. IoT has also been credited for improving the efficiency of IT departments. With the introduction of IoT, 75 percent of companies have increased their profits. IoT in the industrial sector has proved efficient to solve challenges of production control and operation by reducing risk and downtime. In industries, IoT devices are mostly operated as chemical sensors (62 percent) and picking systems (46 percent).
Chris Kozup, vice president marketing at Aruba said, “I view this as that first step that a partner would take to see that IoT opportunity is real and that they need to understand which areas of opportunity are going to be most impactful to their business — looking at industries, solutions and use cases. I think IoT is the next big opportunity for partners and they need to begin building a practice, but they need to do it wisely because the IoT domain is vast.”
Cisco Set to Radically Disrupt the IoT Industry
Cisco’s investments in IoT applications has seen a major push after the company’s new acquisition Jasper reportedly made profits in the current financial year. Jasper, a company dominant in the IoT market was taken over by Cisco in the year 2016. The $1.4 billion purchase of Internet of Things (IoT) startup Jasper was a bid to strengthen Cisco’s IoT network across the emerging markets. Cisco has created a niche for itself in the IoT business, against a backdrop of technology and global consolidation. After making steady progress, Jasper recorded a business growth of 90 %, setting the stage for Cisco’s to launch new IoT technologies.
Rowan Trollope, senior vice president and general manager of Cisco’s IoT and Applications Business, said that Cisco Jasper’s business is already making inroads into the IoT market with its unique blend of product design and technology skills. It has helped the company generate 95 percent of the business from recurring revenues alone.
Cisco is in the process of taking the Jasper IoT platform well beyond the cellular network to other connectivity options like or low-power wide area (LoRa). Sensing the rise of more and more connected things, modern customers today aspire to use IoT platforms with other networks but still have the same interface.
“We have a product in the market that we are field testing,” Trollope said. “It represents an extension of Jasper but covers all types of networking.”
IoT companies will have to deal with new challenges in the IoT industry. With a large-scale transformation in the industry, the current networking structure might not be able to keep up with the traffic. “The current network, built for phones and PCs, doesn’t work for customers,” Trollope added. “We are asking how we evolve the network so we can handle incredible scale.”
Trollope also predicted the return of distributed networking and the rise of edge computing in IoT. “We are looking to redefine the edge of the network. Today, you just connect to the access point”.
The future of analytics will influence IoT companies in a major way, helping them to better define their IoT strategies. To this end, Cisco plans to partner with more companies and expand its customer base. Through these tie-ups, Cisco plans to improve application and infrastructure performance of its clients. Jasper today manages a much bigger clientele, which increased from 3,500 enterprise customers to 9,000 customers.