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© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
© 2016 IBM Corporation
IBM Market Development & Insights
Note: This report is based on internal IBM analysis and is not me...
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Internet of Things : Trends to Watch in 2016

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Purpose: The slides provide an overview on the Internet of Things trend
Content: Summary information about the Internet of Things marketplace, including trends drivers, spending trends, industry business cases, and adoption challenges. Also included are links to additional resources.
How To Use This Report: This report is best read/studied and used as a learning document. You may want to view the slides in slideshow mode so you can easily follow the links
Available on Slideshare: This presentation (and other HorizonWatch Trend Reports for 2016) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching
Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.

Published in: Technology

Internet of Things : Trends to Watch in 2016

  1. 1. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Internet of Things Small IoT projects pay the way for future transformation IBM HorizonWatch 2016 Trend Report – External Version Ed Gretz – Principal Analyst, Systems & IoT, Market Development Bill Chamberlin – Product Manager, IoT & HorizonWatch, bluemine March 6, 2016
  2. 2. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. About This Trend Report 2 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016  Purpose: The slides provide an overview on the Internet of Things trend  Content: Summary information about the Internet of Things marketplace, including trends drivers, spending trends, industry business cases, and adoption challenges. Also included are links to additional resources.  How To Use This Report: This report is best read/studied and used as a learning document. You may want to view the slides in slideshow mode so you can easily follow the links  Available on Slideshare: This presentation (and other HorizonWatch Trend Reports for 2016) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching  Please Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution.
  3. 3. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. What is the Internet of Things and why does it matter? 3 The Internet of Things (IoT) is an economic transformation in which value is created via analysis of data collected from Internet-connected devices. 6Mar2016 HorizonWatch Trend Report: Internet of Things (External Version) “IDC defines the IoT as a network of networks of uniquely identifiable endpoints (or "things") that communicate without human interaction using IP connectivity.” IDC “If policy makers and businesses get it right, linking the physical and digital worlds could generate up to $11.1 trillion a year in economic value by 2025.” McKinsey IBM Center for Applied Insights “In 2016, 5.5 million new things will get connected every day.” Gartner Gartner
  4. 4. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Are we past the hype? Industry analysts believe so 4 HorizonWatch Trend Report: Internet of Things (External Version) “73% of IoT decision makers have already deployed IoT solutions or plan to deploy in the next 12 months.” IDC “65 percent of Internet of Things (IoT) apps in production today are generating real revenue. Developers expect this figure to rise to 80 percent by 2018.” Harbor Research “28 percent of software developers say they are currently working on applications for IoT-connected devices.” Evans Data “62 percent of executives surveyed say they have already adopted IoT-based systems or have plans to do so.” Business Insider IDC Gartner “IoT momentum continues to grow and our survey shows that it is seen as strategic to the enterprise. A full 58% of respondents consider the IoT a strategic initiative, with a further 24% viewing it as transformative ” IDC
  5. 5. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. McKinsey estimates the potential economic impact of IoT in 2025 could range from $4T to $11T 5 HorizonWatch Trend Report: Internet of Things (External Version) “Internet of Things: data as the new source of value creation and economic growth: More generally, we are witnessing a considerable transformation of IoT-engaged industries. Known as the Fourth Industrial Revolution, the transformation is expected to usher in a new era of economic growth fueled by the power of data, with widespread implications for how companies create value” - IBM Institute for Business Value: Global Location Trends – 2015 Annual Report 6Mar2016 McKinsey: Unlocking the potential of the Internet of Things
  6. 6. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Three important insights about how the IoT will transform industries and drive demand for new solutions and services 1. IoT data is the new currency: Data acquired through Internet of Things (IoT) can and will be used by third parties, requiring a new kind of IoT business: the data broker 2. Today’s small IoT projects pave the way for future transformation: The increasing availability of low-cost, intelligent sensors and devices, networks and gateways has enabled a new path to IoT: small IoT projects, a relatively inexpensive approach to IoT with specific goals and planned rapid ROI 3. IoT drives business integration opportunities by marrying IT & OT. Business integration occurs when IoT vendors, business leaders and technologists team to drive a new outcome, creating solutions that coordinate customers’ business needs, their operational technologies (OT) and IT 6 HorizonWatch Trend Report: Internet of Things (External Version) “While large transformative Internet of Things (IoT) projects grab headlines, an increasing number of IoT projects are smaller in scale, less expensive and less risky.” TBR: 2016 Internet of Things Predictions 6Mar2016 Source: MD&I HorizonWatch, TBR, Inc. “Ultimately the goal of IoT connections is the data, and the IoT data and analytics market is set to grow the fastest of any of the major IoT revenue categories.” ABI Research “IoT is as effective as the sum of its parts. Mere connections create data; however, this does not become information until it is gathered, analyzed and understood. The analytics back-end systems of the IoT will therefore form the backbone of its long- term success.” Juniper Research
  7. 7. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Summary of key enablers and challenges for the mass adoption of Internet of Things 7 HorizonWatch Trend Report: Internet of Things (External Version) Enablers  Proliferation of low cost, smaller sensors and chips that can be embedded in anything and can communicate over the Internet  Advanced wireless networks and cloud infrastructure  An increasingly connected culture (wearables, sensors, mobile devices) Challenges  Security and Privacy  Network speed/capacity  Standards / Interoperability  Management of Big Data  Application development / Partner ecosystems  Culture, skills, and business processes 6Mar2016  “By 2020, each human being will have an average of 5.1 connected devices” Frost_Sullivan  “The number of IoT (Internet of Things) connected devices will number 38.5 billion in 2020, up from 13.4 billion in 2015: a rise of over 285%.” Juniper Research  “We estimate a potential economic impact—including consumer surplus—of as much as $11.1 trillion per year in 2025 for IoT applications in nine settings.” McKinsey Global Institute  “Devices, connectivity, and IT services will make up the majority of the IoT market in 2020. Together, they are estimated to account for over two-thirds of the worldwide IoT market in 2020, with devices (modules/sensors) alone representing 31.8% of the total.” IDC IBM
  8. 8. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Twelve Internet of Things Trends to Watch in 2016 1. Small IoT is a big thing. Not all IoT projects are sweeping and transformative 2. IoT requires IT/OT integration: Strong collaboration between IT and OT teams are required for IoT success 3. Increased focus on edge computing and analytics. Increasingly, analytics capabilities will be pushed to the edge of networks 4. Drones/UAVs and robots. These devices are quickly becoming part of the IoT solution stack for agriculture, asset management and physical security applications 8 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 “By 2018, 60% of global 1000 companies will integrate IT and OT at the technology, process, security, and organization levels to fully realize the value of their IoT investments.” IDC FutureScape: Worldwide Internet of Things - 2016 Predictions Source: MD&I HorizonWatch, TBR, Inc. “IoT processing at the edge of the network (compared to processing back at the enterprise) is a clear requirement and will challenge many IoT architecture designs.” IDC IBM
  9. 9. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Twelve Internet of Things Trends to Watch in 2016 (cont.) 5. A data brokerage industry emerges. IoT generated data is bought, analyzed and sold. Example: IBM buys The Weather Company data 6. Interoperability trumps standards: Industry alliances ensure vendor-partner solutions work together and reduce the need for underlying technology standards 7. Security: The increased security risk of IoT over pure IT systems remains a key challenge for IoT implementations 8. The rush to win over developers: Developers are a pivotal element to building a viable partner ecosystem around IoT. 9 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 “S&R professionals in all industries must understand the tremendous risk associated with IoT enabled, -connected solutions and help their organizations adopt such technologies safely with a comprehensive security strategy.” Forrester: An S&R Pro’s Guide To IoT Security Source: MD&I HorizonWatch, TBR, Inc. “Developers put their long-term bet on industry and infrastructure IoT apps as the foundation for revenue generation.” Harbor Research IDC
  10. 10. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Twelve Internet of Things Trends to Watch in 2016 (cont.) 9. IT services will be a major driver and beneficiary of IoT. Business consulting services are in particular demand, followed by IT consulting and implementation services 10. IoT drives demand for analytics. IoT data must be managed, integrated and analyzed to realize the greatest possible value 11. IoT drives demand for cloud computing. New cloud platforms are often part of IoT solutions. Cloud development lends itself to new projects, with availability of a breadth of resources for development, integration and analysis. 12. IoT is propelling enormous growth in smart devices. Device and sensor types are proliferating. Processor, chipmakers and sensor manufacturers are driving lower prices, lower power requirements and greater capabilities. 10 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 Source: MD&I HorizonWatch, TBR, Inc. “IoT demands new analytic approaches. New analytic tools and algorithms are needed now, but as data volumes increase through 2021, the needs of the IoT may diverge further from traditional analytics.” Gartner IBM “IoT services are the real driver of value in IoT, and increasing attention is being focused on new services by end-user organizations and vendors.” Gartner
  11. 11. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Trends in spending for IoT solutions  IoT is a growth market. Enterprises will spend hundreds of billions of dollars on commercial IoT projects over the next five years, benefitting the broad technology market and driving rapid spending growth  IoT will drive spending demand for other technology solutions, especially analytics and cloud computing. Virtually all types of IT products and services will be used in IoT solutions with a large focus on cloud and analytics technologies  IoT is all about solutions driven by consulting. The bulk of IoT revenue will come from services, specifically consulting, software, cloud and security. Business consulting helps identify IoT opportunities, define IoT solutions and develop a data security strategy 11 HorizonWatch Trend Report: Internet of Things (External Version) “The IoT analytics market is estimated to grow at a CAGR of 27.48% from 2015 to 2020 to reach $ 16.35 billion by 2020.” MarketsandMarkets IoT Analytics Market - Global Analysis & Forecast To 2020 “Total service spending (including professional, consumer and connectivity services) will reach $482 billion in 2020, growing at a 21% CAGR from 2013. Services are dominated by the professional category; however, connectivity services and consumer services will grow at a faster pace.” Gartner: Forecast Analysis: Internet of Things — Services, Worldwide, 2015 Update Source: MD&I HorizonWatch, TBR, Inc. 6Mar2016 “The worldwide Internet of Things market will grow from $655.8 billion in 2014 to $1.7 trillion in 2020 with a compound annual growth rate (CAGR) of 16.9%.” IDC
  12. 12. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Manufacturers will use IoT to improve processes, reduce costs, generate new revenues and improve customer satisfaction  Production: IoT generated data brings benefits in areas such as production output, product quality, workforce safety, predictive maintenance, energy management, asset optimization and cost management.  Supply chains: Benefits include tracking raw materials, finished goods and other assets (containers, vehicles, etc.) to optimize supply chain execution and improve business planning.  Products: Benefits include capturing detailed information on products in the field, access to remote diagnostics, and the ability to perform remote maintenance and perhaps even remote operations.  Intelligence: IoT data collected can be fed into analytics tools and cognitive systems that enable knowledge workers and decision makers to analyze and compare performance, build smarter algorithms and drive process improvements based on lessons learned. 12 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 Source: MD&I HorizonWatch “The IoT market in manufacturing operations will grow from $42.2 billion in 2013 to $98.8 billion in 2018, a five-year compound annual growth rate (CAGR) of 18.6%. Growth will be driven by ongoing efforts to increase efficiency and link islands of automation.” IDC IBM Center for Applied Insights “Industrial devices, the manufacturing floor, logistics, and machinery are the most ripe areas for IoT and that’s where we see the most IoT developers focusing their energy.” Evans Data
  13. 13. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Retailers leverage IoT to improve front- and back-office process efficiencies and earn the loyalty of the next-generation consumer  Enhanced customer experience: Combining data from IoT devices with shopping history and other customer data, retailers can create a single view of each customer, find patterns and deliver a more relevant shopping experience in real time  Optimized store operations: The IoT not only can help retailers better manage store assets, employee labor and energy usage, but also improve in-store marketing efforts.  Improved inventory management: Where is my inventory? What products are selling… and why? Who is buying what products? Where in the store do products perform the best?  Capture new revenue opportunities: Leading-edge retailers will learn how to leverage the Internet of Things to seek out new methods of acquiring customers and increasing revenues. 13 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 Source: MD&I HorizonWatch, TBR, Inc. IBM Center for Applied Insights “Global spending on retail IoT initiatives is expected to grow from $14.3 billion in 2015 to $35 billion by 2020.” MarketsandMarkets “Eighty percent of retail decision makers believe IoT technologies will drastically change the way companies do business in the next three years.” RSR Research
  14. 14. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. E&U firms use IoT to gain greater visibility into assets/resources, reducing management costs and empower stakeholders  Smart grids: Smart grid sensors allow physical assets to be connected to other machines, systems and people.. These smart grid sensors will collect and create large volumes of data that enable utilities to improve utility operations and customer engagement  Smart meters: Smart meters to monitor power, gas and water consumption in real time. These smart meters will provide a wealth of information that can help utilities and their consumers in many ways – from allowing fully automated billing based on time of use or network status (e.g., with prices rising and falling according to peak and trough usage) to enabling meter-to-appliance communications to help change consumer energy behavior.  Asset monitoring and maintenance: Using drones, small robots, embedded cameras and other IoT sensor devices, utility operators can better understand the condition of the entire asset network in real time. They can collect a variety of data, including temperatures, pressures, flow rates, vibrations and calibration. Maintenance workers can use this information to help plan for preventative maintenance on both above-ground assets as well as those below ground, such as buried cables, wires or pipes. 14 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 Source: MD&I HorizonWatch, TBR, Inc. IBM Center for Applied Insights “Utility companies that invest in the Internet of Things are doing so to improve asset performance, reduce costs, lower supply chain risks and empower employees and consumers.” MarketsandMarkets “By the end of 2015, annual smart grid spending in China could total $20 billion, with smart meters comprising $2 billion of that total.” McKinsey
  15. 15. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. The adoption of IoT networks, the data collected and the analytics of that data are accelerating the transformation of healthcare industry  Consumer-driven healthcare. Consumers are taking more responsibility for their own heath. As they do, they will demand better access to their data and improved health technology solutions that allow them to manage their own healthcare.  Key solution areas. Look for improvements in IoT solutions related to remote patient monitoring services, mobile health technologies, telemedicine, medication management, clinical operations, employee workflow management and inpatient monitoring.  Remote patient monitoring. Expect new remote patient monitoring devices, wearable clothing and smartphone apps that analyze the data collected. We are at the beginning of a new era of remote patient monitoring that will automatically feed patient records with real-time data, perform analysis and send coaching notifications to both providers and patients. This will make healthcare easier, convenient, 24/7, web-enabled and personalized. 15 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 Source: MD&I HorizonWatch, TBR, Inc. “The healthcare industry leads the field with 72% of respondents identifying IoT as strategic, followed by transportation and manufacturing at 67% and 66%, respectively.” IDC IBM Center for Applied Insights “The global IoT healthcare market is expected to grow from $32.47 billion in 2015 to $163.24 billion by 2020.” MarketsandMarkets
  16. 16. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Other vertical industries, including transportation, public and telecom are ripe for adoption  Transportation: The future transportation system will save lives and property, reduce emissions and cut commuting time and effort. This will all be enabled by a transition to IoT networks.  Public: Smarter cities and smart grids are among the major drivers of public IoT adoption as organizations look to improve infrastructure management, leading to more efficient and proactive maintenance and traffic management.  Telecom: As IoT is adopted by more businesses, demand for machine-to- machine (M2M) communications will grow. Carriers are in a unique position to provide M2M and will drive revenue from the expansion of IoT. 16 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 Source: MD&I HorizonWatch, TBR, Inc. “When asked which industries are key to IoT app development, developers expect healthcare (14%), smart city (13%) and automotive (12%) as the top three industries for IoT app development and revenue generation..” Harbor Research “ABI Research believes that “verticalized” platforms will continue to hold the largest share of the IoT software platform market with new growth provided by the smart home and healthcare segments.” ABI Research IoT: The engine that will transform transportation - IBM Center for Applied Insights
  17. 17. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. If the IoT is to realize its full potential, security professionals must secure both IoT systems and the data collected 17 HorizonWatch Trend Report: Internet of Things (External Version) “The global IoT security market is expected to grow from USD 6.89 Billion in 2015 to USD 28.90 Billion by 2020, at a Compound Annual Growth Rate (CAGR) of 33.2% from 2015 to 2020.” MarketsandMarkets “The rise of security concerns in critical infrastructures such as utilities, smart grids, and manufacturing facilities is expected to remain the key driver of the IoT security market in the coming years. Security issues in critical infrastructures can lead to huge losses such as power hacks, loss of life, and malfunction of nuclear reactor.” MarketsandMarkets “Security technologies will be required to protect IoT devices and platforms from both information attacks and physical tampering, to encrypt their communications, and to address new challenges such as impersonating "things" or denial-of-sleep attacks that drain batteries.” Gartner IBM Center for Applied Insights “The potential damage to people, possessions, businesses and national critical infrastructure from a successful attack on cyber-physical systems through the rapidly emerging Internet of Things (IoT), cannot be underestimated.” Beecham Research
  18. 18. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Additional adoption challenges remain as barriers to mass adoption of IoT solutions 1. Hype and confusion. Skepticism due to overall media & vendor hype combined with confusion over the increasingly number of platforms, protocols and large sets of APIs 2. Lack of technology and data standards IT solutions are currently being assembled from a number of different technologies by a number of different vendors, setting up the possibility of device/sensor, infrastructure as well as data format incompatibilities. 3. Lack of understanding or clearly defined business cases. Enterprises want to see a clear path to a return on their investments on IoT, before investing. 4. Processes, skills and tools. The IoT is not all about new emerging technologies. Enterprises will need to transform processes and invest in new skills & tools. 18 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 Source: MD&I HorizonWatch, TBR, Inc. “Developers around the globe agreed security and personal privacy, data privacy and protection from malicious attack, and general integration and data management are the top challenges in designing, deploying and engaging customers with IoT apps.” Harbor Research “Security remains a leading challenge, but now upfront and ongoing costs have become the top challenges.” IDC Computer Business Review
  19. 19. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. APPENDIX 19 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016
  20. 20. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Additional quotes around barriers for adoption of IoT 20 HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016 “Interoperability hurdles owing to conflicting standards continues to slow progress. Nevertheless, there are signs that standards bodies and alliances are beginning to engage to overcome these hurdles.” Juniper Research “While 77% of respondents consider the IoT opportunity exciting, many still feel they are lacking the necessary technology, skills or tools.” Harbor Research “A recurring theme in the IoT space is the immaturity of technologies and services and of the vendors providing them. Architecting for this immaturity and managing the risk it creates will be a key challenge for organizations exploiting the IoT. In many technology areas, lack of skills will also pose significant challenges.” Gartner “Long-lived nontrivial "things" will require management and monitoring. This includes device monitoring, firmware and software updates, diagnostics, crash analysis and reporting, physical management, and security management.” Gartner “We’re still at an early stage for IoT. Knowing what information to gather, and how to integrate that into back office systems remains a huge challenge.” Juniper Research “Standards and their associated APIs will be essential because IoT devices will need to interoperate and communicate, and many IoT business models will rely on sharing data between multiple devices and organizations..” Gartner
  21. 21. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected IBM Resources and Links 21 HorizonWatch Trend Report: Internet of Things (External Version)  Primary Website: Watson and the Internet of Things  What is Watson IoT?  Explore Watson IoT  White Papers: The Internet of Things in the Cognitive Era  IBM IoT News  Solutions  IoT Foundation platform  Enterprise asset management  Facilities management software  Engineering software product development  IoT for Electronics  IoT for Automotive  IBM DeveloperWorks: Internet of Things  IBM Center for Applied Insights: Internet of Things  IBM Institute for Business Value: The Business of Things “The Internet of Things (IoT) is radically changing the way businesses operate and people interact with the physical world. With this comes an enormous surge of data—yet nearly 90 percent of it is never acted upon. Cognitive IoT changes this.” IBM 6Mar2016 IBM: Ginni Rometty keynote: CES 2016 Appendix
  22. 22. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected IBM venues on Social Media 22 HorizonWatch Trend Report: Internet of Things (External Version)  IBM: IoT Blog Posts  Facebook: IBM IoT  Twitter: IBMIoT  LinkedIn: IBM Internet of Things  Google+: IBM Internet of Things  IBM Center for Applied Insights blog: Posts tagged IoT  DeveloperWorks Community: IoT Foundation / Blog Search: Internet of Things  Big Data & Analytics Hub: Internet of Things blogs Twitter: IBMIoT 6Mar2016 Appendix “The ripple effect of IoT is driving traditional business models from IT- enabled business processes to IT- enabled services and finally to IT- enabled products, which is beginning to disrupt the IT status quo.” IDC
  23. 23. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected Analyst Websites and Resources 23 HorizonWatch Trend Report: Internet of Things (External Version)  451 Research: Internet of Things  ABI Research: IoT Market Tracker, Internet of Everything, Internet of Things, M2M  Beecham Research: M2M/IoT Sector Map, IoT Security Threat Map  Claro Partners: IoT  Forrester: IoT Reports  Frost & Sullivan: Internet of Things, M2M, Sensor  Gartner: Internet of Things and IoT Blog Posts / M2M and M2M Blog Posts / Sensor and Sensor Blog Posts  Goldman Sachs: The Internet of Things: The Next MegaTrend  Harbor Research: IoT  IDC: Internet of Things Ecosystem and Trends / searches: Internet of Things, M2M  Inex Advisors: website  Internet of Council and Internet of People  Machina Research: website  TBR Research: Analyst Perspectives Machina 6Mar2016 Appendix “IoT business models will exploit the information collected by "things" in many ways — for example, to understand customer behavior, to deliver services, to improve products, and to identify and intercept business moments.” Gartner
  24. 24. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected Trend and Prediction Articles 24 HorizonWatch Trend Report: Internet of Things (External Version)  451 Research: 2016 Trends in the Internet of Things  CIO: Top 10 Internet of Things stories of 2015  CIO: Where is the Internet of Things heading in 2016?  AFour Technologies: IoT Trends to Watch Out For In 2016 And Beyond  eWeek: Six Internet of Things Predictions for 2016  Dataversity: How the Internet of Things Will Mature in 2016  TechRadar: 10 ways the Internet of Things could change the world in 2016  Fast Company: How the Internet of Things is Changing Work  Forbes: Roundup Of Internet of Things Forecasts And Market Estimates, 2015  InfoWorld: In 2016, the Internet of things will be the main driver of API infrastructure growth  Computer Business Review: 10 IoT predictions for 2016  Gigaom Research: Blah blah blah: We’re going to be talking a lot in 2016  The Motley Fool: 3 Ways the IoT Will Impact Your Life Within the Next 5 Years  IDC: Worldwide IT Industry 2016 Predictions — Leading Digital Transformation to Scale  Ovum: Q&A: Internet of Things 2015 Outlook  Wired: Internet of Things 6Mar2016 Appendix
  25. 25. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected Conferences 25 HorizonWatch Trend Report: Internet of Things (External Version)  IoT Nexus San Francisco, Feb. 2016  Business Leaders Network: IoT Forum 2016, Cambridge, March 2016  IoT Asia, Singapore, March 2016  Internet of Things North America, Chicago, April 2016  M2M World Congress 2016 London, April 2016  IoT World, Santa Clara, May 2016  RFID Journal IoT Conference, Orlando, May 2016  IoT Expo, New York City, June 2016  IoT World Congress, Barcelona, Oct. 2016  IoT Expo, Santa Clara, CA, Nov. 2016 IoT Expo 6Mar2016 Appendix “While IoT ‘smart home’ based applications grab media headlines, it is the industrial and public services sector – such as retail, agriculture, smart buildings and smart grid applications – that will form the majority of the device base.” Juniper Research
  26. 26. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected Media Websites and Resources 26 HorizonWatch Trend Report: Internet of Things (External Version)  Businessweek: Internet of Things  CIO.com: Internet of Things, M2M  ComputerWorld: Internet of Things  GigaOM: Internet of Things  Forbes: Internet of Things, M2M  InformationWeek: Internet of Things, M2M  InfoWorld: Internet of Things, M2M  IoT Council  MIT Technology Review: Internet of Things  O’Reilly – IoT and Industrial Internet  ReadWrite: Internet of Things  Venture Beat: Internet of Things, M2M  Wall Street Journal: Internet of Things  Wired.com: Internet of Things  ZDNet: Internet of Things Wired 6Mar2016 Appendix “Devices, connectivity, and IT services will make up the majority of the IoT market in 2020. Together, they are estimated to account for over two-thirds of the worldwide IoT market in 2020, with devices (modules/sensors) alone representing 31.8% of the total.” IDC
  27. 27. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Vendor & Consultant Websites & Resources 27 HorizonWatch Trend Report: Internet of Things (External Version)  AT&T: M2M Solutions  Accenture: Industrial Internet of Things  Bosch: IoTA Lab and Software Innovations: The IoT  Cisco: IoT  Deloitte: The Internet of Things  Ericsson Labs: Blog posts tagged Internet of Things  General Electric: Industrial Internet and G.E. Software: Industrial Internet  Harbor Research: Website  IBM: Watson Internet of Things / Internet of Things and IoT Foundation  Intel: Intelligent Systems  Microsoft: Internet of Things  Oracle: Internet of Things Platform  SAS: Internet of Things  SAP: Internet of Things and IoT Blog  Wind River: Internet of Things IBM “IoT is testing the limits of programmable computing, and Cognitive IoT is how we will overcome those limits. It is how we will accomplish the transformational outcomes we know are both possible and necessary— from operational efficiency to customer experience to industry disruption” IBM 6Mar2016 Appendix
  28. 28. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. Selected Social Media Sites and Searches 28 HorizonWatch Trend Report: Internet of Things (External Version)  Google+ Communities Search: Internet of Things  LinkedIn Group Search: Internet of Things, M2M and Group: Sensor Networks  Pinterest Search: Internet of Things, Machine to Machine  Slideshare search: Internet of Things, M2M  Twitter search Popular hashtags = #IoT / #Sensors / #M2M  Tumblr Search: Internet of Things and IoT  YouTube: Internet of Things Playlists and Internet of Things Channel  YouTube: M2M Playlists and Machine to Machine Channel  Wikipedia: Internet of Things, M2M Internet of Things Playlists on YouTube 6Mar2016 Appendix “By 2020, IDC expects that IoT purpose- built platforms, application software, and "as a service" offerings will capture a larger percentage of revenue.” IDC
  29. 29. © 2016 IBM Corporation IBM Market Development & Insights Note: This report is based on internal IBM analysis and is not meant to be a statement of direction by IBM nor is IBM committing to any particular technology or solution. More Insights on Technology Trends are Available 29 Other slide decks in this IBM HorizonWatch 2016 Trend Report series have been posted to Slideshare You are also invited to check out the following IBM websites and resources – IBM Academy of Technology – IBM Center for Applied Insights – IBM Institute for Business Value – IBM Research and Research News and 5 in 5 – IBM’s THINK blog HorizonWatch Trend Report: Internet of Things (External Version)6Mar2016

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