The Internet of Things provides a wealth of new data, and an extraordinary set of opportunities and challenges.
“The Internet of Things scenario will include 26 billion units installed by 2020. Internet of Things product and service suppliers will generate incremental revenue exceeding $300 billion, mostly in services, in 2020”. (Gartner)
But today no one dominates. The potential is very strong, but there is no set of guiding rules, and there are a lot of open questions. In particular, who is driving the Internet of Things and what are the core issues for the industry? If you would have an opportunity, you will have to make your voice standing out in the market.
The Internet of Things is the network of physical objects that contains embedded technology to communicate and interact with their internal state and the external environment. We are part of a market that has a very strong potential because we will be taking part of that market and turning in the Internet of Things.
The Internet of Things allows the M2M (machine to machine) process: a thing that has embedded intelligence can communicate to another one; e.g. the pay-as-you-drive car insurance.
And this is the hot point of the Internet of Things; we are going to pay things as we really use them.
Connecting a thing into a service will be the real value, the real revenue.
The Internet of Things is already here. We already have integrated devices (e.g. smartphones, tablets, PC) that are connected with the Internet of things.
The greatest drivers for the adoption of the Internet of Things are:
- cost reductions of functionality
- decreasing costs of components
- new business models
- ecosystem partners
The opportunity will be at four different levels:
Level 1) things: thousand millions of categories of things that typically contain sensors and output devices; e.g. home security services, baby minding service or app. An incremental revenue of $31 billions by 2020
Level 2) communication and networking: M2M communications, such as smartphones, WiFi, TVs. An incremental revenue of $17 billions by 2020
Level 3) computing & storage: data centers, servers, storage and cloud. An incremental revenue of $18 billions by 2020
Level 4) app & services: the major opportunity for the Internet of Things and it is the value enhanced by data analitycs. An incremental revenue of $262 billions by 2020
There are great barriers in the adoption of the Internet of Things: security issues, lack of standards, immature business models, and ecosystem immaturity.
According to Gartner, technology vendors needs to focus on the overall Internet of Things architecture and the fundamental point is the END USER so it could be necessary to invest in design from the device to the user.