Consumer IoT invariably grabs the headlines. Google’s Nest (smart home), for example, or Fitbit, a maker of wearable health-tracker devices. The reality, however, is that the enterprise IoT market is signi cantly bigger. Across manufacturing, logistics, infrastructure and resource management, the potential size of the IoT market is multiple times that of the consumer.
Calvin Smith, Business Lead of IoT Strategy at Dell EMC, agrees. “One thing analysts in the IoT space seem to agree upon is that roughly 70% of the revenue in IoT today, and likely in the future, is on the enterprise side,” he says. “The largest vertical in that is manufacturing.”
It explains why a plethora of big-name internet companies and tech suppliers, including Amazon, Cisco, General Electric (GE), Google, IBM, Intel and Microsoft are developing IoT applications and IoT platforms for the enterprise.
Forward-thinking communication service providers (CSPs), faced with commoditization of their core voice and data businesses, are also exploring digital growth areas. Enterprise IoT, for many, will be a key part of their ‘digital transformation’ strategy.
For their part, rms in various verticals—not just manufacturing—should be keen to listen to IoT value propositions. Even small gains in e ciency gleaned from IIoT (Industrial Internet of Things—see sidebar) can lead to enormous savings (see Table 1).
Both enterprises and service providers, however, face numerous challenges as they embark on their respective IoT journeys. Di erent industry verticals will also have di erent IoT drivers and challenges that need to be addressed (see Table 2).