The Provider Opportunity in the Internet of Things
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1 The Provider Opportunity in the Internet of Things Alfonso Gartner is a registered trademark of Gartner, Inc. or its affiliates. This publication may not be reproduced or distributed in any form without Gartner's prior written permission. If you are authorized to access this publication, your use of it is subject to the Usage Guidelines for Gartner Services posted on gartner.com. The information contained in this publication has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information and shall have no liability for errors, omissions or inadequacies in such information. This publication consists of the opinions of Gartner's research organization and should not be construed as statements of fact. The opinions expressed herein are subject to change without notice. Although Gartner research may include a discussion of related legal issues, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner is a public company, and its shareholders may include firms and funds that have financial interests in entities covered in Gartner research. Gartner's Board of Directors may include senior managers of these firms or funds. Gartner research is produced independently by its research organization without input or influence from these firms, funds or their managers. For further information on the independence and integrity of Gartner research, see "Guiding Principles on Independence and Objectivity."
2 Why IoT? By 2020: Ten Billion Connected Things* Shipped in One Year *Excluding Smartphones, Tablets and PCs
3 IoT Is a Pairing of Services and Things! Internet of Things (IoT): A network of physical objects that contain embedded technology to communicate and sense or interact with their internal state or the external environment Service or app Embedded intelligence Thing Machine to machine (M2M) communication Photo Source: AB InBev, Mesh Systems
4 The IoT's Characteristics Will Bring Turmoil to Your Industry Ecosystem Emergent Vertical Industry Complex Scale Many Things Big Data Many Startups Heterogeneity Large and Small Old and New Multi-X Photo Source: Libelium Opportunity Business Models Data Security and Privacy
5 Billions of Units Shipped Market Opportunities Extend Well Beyond "Things" Consumer Enterprise Transportation CAGR % Diverse market made more complicated by not just the "things" but also the vertical markets IoT presents an enormous services opportunity as enterprises retrofit and/or install new equipment
6 Find the Business Value: Four Usage Models Optimize Charge Operate Asset optimization and monitoring Predictive maintenance Customer traffic management Pay-as-you-use Time-of-day based charging Turning product into service Remote control Remote unlock and access Telemedicine and healthcare Extend Send digital content to thing Software upgrades
7 Ground Your Go-to-Market Strategy in Your IoT Architecture Options Communications Things Gateway Cloud End User Decision Maker Data Application Analytics Think From the Thing to the Person!
8 Providers Must Find Their Place in IoT Ecosystems Partnerships Are Critical Professional Services Datacenter Providers Communications Software Hardware
9 Providers Must Find Their Place in IoT Ecosystems Partnerships Are Critical Professional Services Datacenter Providers Hardware IoT Standards Bodies Communications Software Services You Middleware Hardware Telecom Software Representative list
10 Recommendations: Think From the Thing to the Person Build your initial IoT architecture by 4Q14, so you can assist your clients on their IoT architecture and policy: - This will be a living model to use with your clients. - Use your architecture to gain competitive advantage. Find your place in the ecosystem and identify your initial set of strategic partners by the end of Target your value: - Focus on lowering costs and building new business models for your clients enabled by IoT.
11 Recommended Gartner Research Build Your Blueprint for the Internet of Things, Based on Five Architecture Styles Hung LeHong (G ) Market Trends: TSPs Must Invest in the Rapidly Evolving IoT Ecosystems Now Alfonso Velosa and others (G ) Market Trends: Digital Business Opportunities in Smart Cities Need IoT Foundations Alfonso Velosa and Bettina Tratz-Ryan (G ) Internet of Things Can Help Public-Sector Services Reduce Costs and Engage Citizens Anurag Gupta and Jim Tully (G ) For more information, stop by Gartner Research Zone.
12 Recommended Gartner Research What Securing the Internet of Things Means for CISOs Earl Perkins (G ) Hype Cycle for the Internet of Things, 2014 Hung LeHong and Alfonso Velosa (G ) Cool Vendors in the Internet of Things, 2014 Alfonso Velosa and others (G ) For more information, stop by Gartner Research Zone.
13 Gartner delivers the technology-related insight necessary for our clients to make the right decisions, every day.
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