IOT: Let’s Talk Numbers
Keval BaxiMay 11th, 20156 minute read
Keval Baxi is the Chief Executive Officer at Codal. He oversee's the corporate direction and strategy of the company, focusing on innovation and customer experience. Outside of Codal, his interests include running and exploring new Chicago restaurants.
Determining trends versus sustainable industries is an ancient affair. The tech world is a sustainable industry with countless fading trends flowing through. Identifying what stays sustainable in the industry means analyzing variables that differ the two, like the automobile has staying power, however, the components that make up the automobile change everyday. It's the difference between including an 8-track player versus an integrated media suite.
In this same vein we find the internet of things as an emerging component in the tech industry. Whether it is a bubble or not is yet to be determined. The main variable that is motivating the IoT is automated communication, which has been a main component of modern technology. Setting an alarm clock, the time on a thermostat or coffee maker, and even DVR are all modes of delayed or automated communication. IoT is just a more intellectually capable modality of automated communication.
The IoT Livelihood:
IoT has already begun to shape our lives in a meaningful way. Bluetooth connectivity occurs automatically in your home or car. Security systems can be accessed in real time from remote locations on your mobile device. Determining its status as a bubble will mean what will be left when the dust clears.
Integrating IoT capable systems into products that have multiple device connectivity is where it starts. Purchasing a car may come with a mobile application that has remote start, heating and air conditioning controls, even tire pressure info can be viewed remotely from these existing systems.
Cisco Systems released a notable report in late 2014 suggesting the collective value of IoT integration across industries is $19 Trillion, and yes, that's Trillion with a 'T,' by 2030.
According to one of the countless sources Cisco has provided a breakdown of which industries will see a greater investment and their market potential:
To put this in perspective, the entire GDP of the United States in 2014 was $6.15 Trillion. So for Cisco to suggest this industry will be three times the size of the largest economy in the world is more than just a statement.
In an effort to determine its status as a bubble, Cisco has deployed real time measurables. These value drivers include Asset Utilization, Customer Experience, Supply Chain, Innovation, and Employee Productivity as they are being developed with IoT in mind. With a bevy of countries, Cisco has measured the interaction and growth of machine to machine (M2M), machine to person (M2P), and person to person (P2P).
The innovative value drivers are perhaps the most interesting in determining a bubble status. One sure thing to consider is how companies with 10,000 or more employees in the US are adapting to innovative applications of IoT. Whether this considers something like direct deposit as IoT or having the office coffee machine refill itself is not clear.
Intel has an abundance of resources for specific industries in anticipation of the needs IoT will necessitate. They have resources for:
The so called 'big dogs,' are legitimizing this potential 'bubble,' in every facet of industry.
Partnering with Those Who Know IoT:
Choosing a development team to help integrate IoT into products will be difficult. If Cisco is right, there will be a lot of value to go around. An experienced development team (like the one Cisco has) is often too pricey of an option, particularly in something that some argue is 'just another bubble.'
Scaling needs into a product to include M2M device protocols will be a standard service for software development firms across the world. The goal in this will be to seamlessly integrate these functions in a way that has utility and does not impose with other features of the application.
Taking a look toward the future, Codal will be attending the Second Annual Internet of Things Conference in San Francisco. It will include over 250 speakers, 150 exhibitors, as well as programs on Consumer IoT, Industrial IoT, Analytics IoT, and IoT Security. With smart devices emerging like Android Wear or Apple Watch, the avenues for development expand from just a website or a mobile application to a tree of related services and products. Stay tuned for a full report.