TIA Survey: IoT To Make Up Almost Half Of It Budgets By 2020
June 08 2016 - 10:30AM
A white paper for the Telecommunications Industry Association from
Machina Research emphatically reveals the coming importance of
enterprise IoT and the central role systems integrators are playing
in the commercial development and deployment of IoT services. A
survey of 200 businesses revealed the vast majority will be using
IoT services within two years and that nearly two thirds of
companies are currently working with systems integrators to
progress internal IoT projects.
“Overwhelmingly businesses have woken up to the transformational
benefits of IoT and are rushing to deploy those services, but at
the same time appreciate there may be a rocky road ahead turning a
good idea into a technically feasible and profitable one,” said Jim
Nolan, Executive Vice President, IoT Solutions, at InterDigital.
“This is where companies like IBM, HP, Tech Mahindra, Wipro,
Accenture and other system integrators are worth their weight in
gold, making the link between specialized IoT providers and the
applications that companies need to leverage connectivity.”
The research report, co-sponsored by InterDigital (NASDAQ:IDCC)
and Telit, shows that overall demand for IoT applications and
services remains extremely high, with the vast majority of decision
makers (91%) expected to be using some form of commercial IoT
service within the next two years. Indeed, almost half (48%) are
benefitting from them today.
As partners, they’re turning to those they trust ahead of those
most specialized, with systems integrators (28%) and business
software partners like Salesforce.com and Oracle (16%) leading the
responses. Even among IoT companies, the focus was on end-to-end
solution providers, whether standards-based (16%) or proprietary
(15%), versus technology suppliers. Interestingly, mobile operators
were not a partner of choice, with only 8% of respondents seeing
them as primary providers.
In terms of driving adoption, cost savings held the edge over
expanding business, with monitoring for maintenance (25%) and
reducing operational expenses (25%) comprising half of respondents’
top strategic reasons for deployment, versus just over one third of
respondents who favored expanding revenue opportunities (18%) or
better competing with rival products and services (18%).
With such vast scale building around commercial IoT deployments,
decision makers singled out the importance of agreeing a set of IoT
standards to futureproof new services. Such an open commitment to
standardization will ease the task facing systems integrators in
developing and building adaptable and interoperable IoT
applications.
Of the businesses participating in the research, 66% highlighted
standards as being either crucial or significantly important in the
adoption of the IoT services over the next couple of years. As part
of the solution for solving the complexity of incorporating IoT,
76% of companies are either exclusively or primarily focusing on
integrating legacy business systems with IoT solutions to get them
fit for purpose.
Other key findings of the report included:
- On average, 44% of IT budgets will by 2020 be solely used for
the purpose of IoT project development and maintenance
- 76% of enterprises indicate they have short-term (i.e. within
next two years) goals for the integration of new IoT solutions with
legacy systems
- 98% of decision makers consider product monitoring useful to
their businesses, with 78% indicating the ability to receive
real-time data from their products would be extremely
beneficial
“The importance of marrying IoT with the existing legacy systems
cannot be downplayed. Along with having a set of standards in
place, businesses will be leaning heavily on system integrators to
weave the future with the present,” said Andy Castonguay, Principal
Analyst, Machina Research and lead author for this report. “Our
research shows businesses are prepared to set aside nearly half of
their IT budgets by 2020 to get this right, demonstrating just how
much of an opportunity IoT represents.”
InterDigital develops wireless technologies for mobile devices,
networks, and services. It is a key contributor to global wireless
standards, designing and developing a wide range of innovations
that are used in digital cellular and wireless products and
networks, including IoT, 2G, 3G, 4G and IEEE 802-related products
and networks.
The full TIA White Paper, entitled ‘Internet of Things
Enterprise Survey’, is available to download here.
About InterDigital®
InterDigital develops mobile technologies that are at the core
of devices, networks, and services worldwide. We solve many of the
industry's most critical and complex technical challenges,
inventing solutions for more efficient broadband networks and a
richer multimedia experience years ahead of market deployment.
InterDigital has licenses and strategic relationships with many of
the world's leading wireless companies. Founded in 1972,
InterDigital is listed on NASDAQ and is included in the S&P
MidCap 400® index.
InterDigital is a registered trademark of InterDigital, Inc.
For more information, visit: www.interdigital.com.
Methodology
The Telecommunications Industry Association (TIA), InterDigital
and Telit commissioned Machina Research to develop a study of 200
business decision makers among U.S. companies with familiarity with
their company’s use and planned use of the Internet of Things to
optimize their business operations or to build intelligent,
Internet-connected products. The survey was designed to solicit
details about the IoT activities and plans, as well as enterprise
perceptions of the benefits and status quo of technological
standards in their industry sectors.
InterDigital Contact:
Patrick Van de Wille
Email: patrick.vandewille@interdigital.com
+1 (858) 210-4814
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