IoT Explained

"The Internet of Things (IoT) describes the revolution already under way that is seeing a growing number of internet enabled devices that can network and communicate with each other and with other web-enabled gadgets. IoT refers to a state where Things (e.g. objects, environments, vehicles and clothing) will have more and more information associated with them and may have the ability to sense, communicate, network and produce new information, becoming an integral part of the Internet."

IoT is comprised of three general domains; the Enterprise, the IoT Platform, and the Edge. The Enterprise consists of existing corporate networks and legacy applications integrated with the IoT platform, including Enterprise Resource Planning (ERP) and Customer Resource Management (CRM) platforms. The IoT Platform is a cloud-based IoT service (e.g. Microsoft's Azure IoT Platform) enabling Data Analytics, Machine Learning, Web Services, Device Management and Remote Monitoring. The Edge is the front-line of IoT where sensor data is captured and transmitted to an IoT Platform. This is IoT's least mature segment and is comprised of volatile set of competing technologies and standards.

IoT Domains

Although there are several value propositions for organizations to adopt IoT efforts, below are a few of the primary benefits IoT can provide:

1. Cost-cutting or operational savings. There are many well-documented ways to reduce operational costs with IoT implementations. As an example, the food distribution industry can utilize sensors to monitor food shipments during delivery to identify potential spoilage that occurs due to failed refrigerants or delays in delivery. By avoiding spoilage, food distribution companies can save some of the roughly 30% of their food supply that is lost during transit.

2. Quality of Experience (QoE). There are opportunities to improve overall customer satisfaction, which can significantly improve customer retention. One example is with home appliances, where manufacturers can monitor appliances for degradation in performance and proactively deploy service technicians to fix appliances before they break.

3. Additional Revenue Generation. Companies can offer value-added services through IoT offerings. For instance, a company can monitor battery power levels of remote construction equipment and sell that as part of a labor service to manage battery replacement.

The Internet of Things (IoT) market is expected to expand to $3.9-$11.1 trillion per year by 2025 according to composite projections from leading research organizations including Gartner, Forrester, and Microsoft.

IoT Market Capitalization