The IoT Chronicles Part 4: Predictions for 2017 and Beyond
2016 certainly didn’t come up short in terms of tech innovation. From genetically engineered immune cells that can control long-term HIV to plant gene editing that can help prevent diseases and droughts, we’ve seen incredible breakthrough technologies across practically every sector.
Indeed, the year was marked by groundbreaking innovation. However, I’d be remiss in not exploring the Internet of Things (IoT)—slated to bring the most organizational value industry-wide—and how it will significantly shape businesses as they digitally transform.
IoT is Bringing Big Savings
The question isn’t whether the IoT is here. It’s already changing business outcomes, lowering costs, and increasing visibility through workflows improving business processes. As we look ahead, sensors will only become more pervasive, machines more autonomous, and connected technology more capable of sharing knowledge than ever before. As a result, Gartner predicts that IoT will save businesses $1 trillion a year in maintenance and services by 2022.
Considering this, it’s not surprising that the global number of connected devices is expected to reach the trillions, driving 64% of companies to soon adopt IoT. It’s great to see such plans for investment; however, what really matters is how businesses invest in IoT to ensure maximum impact organization-wide and, more importantly, to drive the kinds of outcomes that end-users want and need.
IoT’s Predicted Impact
My intention with this blog series was to set the hype aside and objectively share what organizations need to know about IoT. In keeping with that goal, here are four predictions I have of where the market is heading (and how organizations can stay 10 steps ahead to ensure success):
- Companies will work to secure the newly un-defined perimeter—it’s everywhere.
With the ability to connect millions of new devices, hardware endpoints, and lines of code, it’s not so much about whether companies are securing their networks, but how. In today’s world where virtually anything can be considered part of the IoT, the concept of a fixed network edge has essentially become obsolete. In its place is the concept of borderless networking, a world where a company’s network is neither here nor there, but everywhere.
- M2M communications will fuel IoT demand.
The evolution of communications over the last 50 years and the impact it’s had on traditional business processes is simply astounding. It only took a few short decades for manual processes driven by human-to-human communications to be replaced with smarter, automated processes driven by machine-to-machine (M2M) communications.
- The market will hone in on three POVs.
I believe the market will soon come to realize that successful IoT deployment is not possible without rethinking the entire infrastructure from three critical points of view: security, regulation and provisioning. This means moving away from bimodal styles of working and embracing a holistic, 360-degree approach to the IoT.
- Companies will realign IoT with business outcomes.
If you look at some of the prediction articles out there, you’ll see a lot of pundits saying that although the IoT is a hot buzzword right now, adoption at the business level will remain slow in the years to come. The way I see it, adoption doesn’t have to be slow if companies understand how to deploy and use it correctly, therefore accelerating the endorsement and alignment across the entire organization is critical to its success and impact.
Looking ahead, I believe more companies will invest in end-to-end network segmentation to secure this everywhere perimeter. Such a solution inherently protects companies from the inside out with three core capabilities: hyper-segmentation, native stealth, and automated elasticity. If you’d like to read more on this, start reading my three-part blog series that breaks down each of these capabilities in detail. In my opinion, end-to-end network segmentation is the future of IoT security.
Today, for example, utility companies can deploy remote sensors at oil drilling sites to communicate with on-premises machines about variables affecting equipment. When you drive to work every day, chances are sensors are being used to monitor such things as speed and traffic volume to maximize traffic flow. Cars today have so much computing and sensory power that they can now talk to artificial intelligence to troubleshoot themselves, requiring no human intervention. Just look at the work currently being done by Tesla, where a simple software update sent to 60,000 cars allowed drivers to sit back while their vehicles autonomously managed such things as speed, steering, parking and even lane changing.
Overall, the M2M market is set to experience a 12% CAGR between 2015 and 2020. This massive communications shift will only further drive demand for the IoT and largely influence new capabilities in the future.
This is a sentiment also expressed by Gartner’s Managing VP Daryl Plummer. In his list of 2017 predictions, Plummer states that not only are bimodal exercises designed to “experiment and ‘fail fast,’ but “those that do receive approval for implementation involve a level of complexity, scale and business change ramifications that may not have been considered in the initial planning stage.”
Businesses must look at the IoT as part of their existing ecosystem; therefore, they must find a way to seamlessly integrate the IoT into their organization as one of many moving parts. In today’s smart, digital world, all lines of business must move at the same pace of innovation to succeed.
So, what needs to change? The IoT can no longer be seen as simply sensor-installation and heat mapping. It doesn’t matter if a car can self-detect its mileage consumption or if sensors can identify certain traffic volumes and speeds. The question is: how can this information be used to transform outcomes? In other words, how can IoT data be leveraged to actionably improve what’s valued most by those most affected? For instance, how can traffic volume data be used to ease early-morning congestion faced every day by thousands of drivers along a certain highway?
First and foremost, IoT must be in perfect alignment with business outcomes, otherwise, the technology is being implemented just for the sake of being able to do so. I expect things to level out as IoT normalizes in the years to come.
IoT investment will undoubtedly propel companies forward in today’s smart, digital world. However, this requires time, funds and organization-wide commitment. Plummer, for instance, expects that by 2019, every $1 that enterprises invest in innovation will require an additional $7 in core execution. Remember: it’s not about whether you’re planning to implement IoT, but how you plan to do so.