Is the Internet of Things viable as a business concept?
Is the Internet of Things (IoT) a mere buzzword or a true business opportunity? This question inevitably pops up when executives talk about IoT. Is there real profit to be made by businesses?
IoT has triggered a new gold rush with companies jumping in to stake their claim. Stories of home automation, self-driving cars, smart cities, health wearables and more make the news every day. Emerging start-ups and established players alike are planning “smart” products and initiatives. Everyone seems to have a million-dollar idea. Differences between hype, marketing, and confusion have blurred when it comes to IoT. And this is just the beginning.
Establishing the viability of an emerging idea or technology can be tricky. Before they start pouring in money, companies need to figure out whether smart devices are just another fad like the dot-com bubble of the late nineties or if they will genuinely disrupt the market like e-commerce. To be sure, fads can be profitable for companies – but only in the short term. Viable products create value for the company over a large period of time and ensure revenue consistently comes in long after investor funding stops. So how can enterprises determine whether IoT is just a passing fad or if it is here to stay?
For those who are still not sure, recent findings from research firm International Data Corp. (IDC) confirm the viability of IoT as a business concept, predicting significant growth for the market in the coming years. According to the IDC study, worldwide spending on IoT is forecast to reach $772.5 billion in 2018. That represents an increase of 15% over the $674 billion that will be spent on IoT in 2017. Dean Hamilton, General Manager of Accelerite’s IoT business, has covered IDC’s findings in detail in his recent article.
Read his thoughts to understand IDC’s predictions for the biggest spending category in IoT, industries that are expected to spend the most on IoT technologies, IoT growth by geographic region, and more.