IDC forecasts that the installed base of the “Internet of Things” will be approximately 212 billion “things” globally by the end of 2020, and that these Internet-connected devices will generate nearly $9 trillion in annual sales.
Make no mistake; IoT is here and it’s here to stay. It will provide increasing business value across all industries, especially telecom. Over the last year alone, the number of global startups with IoT-related concepts has grown from hundreds to more than 10,000 – and with good reason. New chipset, sensor and communication technology that is smaller, cheaper, more modular and energy-efficient is enabling us to realize concepts we could only read about in science fiction novels until now.
IoT’s impact
The widespread adoption of cellphones revolutionized how we live, and IoT is the next evolution in that digital transformation. Its effects and benefits are already being felt and will continue to expand across all aspects of life. People can control their thermostats and security systems from their smartphones. Internet-connected insulin pumps can be adjusted remotely by a physician. Wearables are transforming sports and even some hobbies. Retailers can track the number of visitors to their store locations around the world from a mobile device. The workplace is changing as well, with processes and tools being mobilized and near-ubiquitous connectivity.
The business implications for this interconnected web of devices are enormous. Following are examples from five of the industries that will be most impacted by IoT.
Telecom
Telecom truly forms the foundation of IoT because a reliable connection is essential to the functioning of the connected devices discussed above. For instance, without high-speed and high-capacity communication networks, the smart city cannot exist. Connected parking lots won’t be able to relay information on available spaces to smart cars; cameras in city parks won’t be able to relay security incidents in real time.
Manufacturing
IoT is creating an important transformation in the manufacturing sector. Connected manufacturing plants have already started yielding impressive results through the use of IoT. In fact, plants enabled with IoT technology – connected machinery and sensors – are able to go to market faster, reduce expenditure, ownership costs and risk management, improve workforce efficiency, asset use and optimization. By allowing plant managers to monitor these facilities and have a 24/7 global view of efficiency, industrial operations can be improved in real time by eliminating information gaps.
Health care
IoT health care devices and sensors will bring significant benefits to patients and health workers alike for both in-person patient care and remote monitoring. Hospitalized patients who need their physiological stats constantly monitored by physicians will now be able to be supervised by noninvasive sensors. The data will be continuously fed to the cloud, where further analysis can take place before being shared with physicians for review. This method not only improves patient care, but also reduces overall costs. It also will transform remote monitoring of patients with chronic ailments.
City infrastructure
Streamlined services, cost savings and new experiences for citizens are just three advantages that interconnected cities will experience by connecting their existing data and services via IoT. Data such as sensor use for traffic monitoring, video surveillance, physical access and other systems are already in place in many urban centers. The construction of high-performance infrastructure will also make our cities responsive to their environment, such as predicting future requirements. An example of this in current use is the infrastructure for water storage within various cities in the United States, through high-performance green infrastructure developed by Geosyntec (from 2007 to 2014), but eventually spun out as an independent company in December 2014 called OptiRTC. By integrating a building’s rainwater catchment system with software that leverages weather predictions from the Internet, they are able to know when to review water levels in the event of a predicted storm or drought.
Retail
There was a huge interest in beacons in 2014 – a type of IoT sensor that store owners can place throughout a retail store. These devices are able to send information on the customers’ location in-store, which can then be used to push tailored notifications for a personalized experience. However, beacons represent only one piece of the connected retail experience. The real connected experience will transform consumer habits regardless of their location. With wireless sensors and wearables, the retail experience and industry itself will undergo sufficient changes to alter the current retail experience forever.
In addition, IoT will generate huge volumes of data – which must be stored. Telecoms already have the infrastructure in place to store it and can therefore more easily and quickly scale up than other segments that would need to start from scratch.
Rising to the IoT challenges
It’s time for telecom, and the vendors and partners that support them, to rise to the challenge of rethinking their business strategy in light of IoT. Diana Daniels, CEO of Cronos Group, puts it this way: “Telecom businesses need to understand their environment: how their customers are connected, and how their services and products help them. … Then, they [can] plan, if possible, an evolution of their infrastructure to potentially build a connected platform.”
IoT presents opportunities at a scale and speed that telecoms have never before experienced. IoT is enabling organizations to create systems that are more self-directed and quickly adaptable to changing conditions. While it is human nature to resist change by stepping out of an established comfort zone, telecoms need to have a clear understanding of the benefits IoT can bring – if they act now. This interconnected network of sensors and devices is already transforming the way we live and work, and the telecom that hesitates is lost.
Sam Ganga is president of global mobility services at DMI and also serves as the company’s mobile innovations officer. As president of global mobility services, Ganga oversees managed services growth across government and commercial accounts. Specifically, he oversees the Cloud-Based Managed Services, Managed Mobility Services and Government Mobility Services divisions. Gagna’s group focuses on providing managed services through DMI’s data center, using secure management of mobile devices, applications and data, while reducing risk and complexity for customers.
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