Enterprise
adopters of Internet of Things (IoT) are ready to take an easier path, shows a
new Oracle survey. Of the 800 IoT decision-makers polled, nearly two-thirds (64%)
would opt for an ‘off-the-shelf' IoT solution over a custom-built offering,
indicating a market shift in the way enterprises are buying IoT offerings.
Further, 75% of respondents want connectivity to be ‘baked-in' or bundled by
the solution provider, and 70% want providers to include data and analytics
tools as part of a comprehensive solution. Together, the findings show
increasing demand for an easy route to IoT capabilities that circumvents
customization and provides faster time to value.
The
survey, conducted with Transforma Insights, also indicates a sea change in how
IoT providers are designing and deploying, reflecting increasing productization
and platformization in this space. Findings suggest that IoT platform vendors
have established themselves as the go-to organizations for IoT deployment, with
56% of respondents indicating they'd turn to one of these vendors as a top
three choices for lead supplier - outpacing systems integrators (42%). Download
the full report: "5 Best Practices of Leading IoT Adopters" here.
"Custom
solutions are introducing increasing levels of cost and complexity to the
deployment of IoT solutions, with enterprises now seeking the fastest path to
value in the form of readymade IoT solutions with connectivity and analytics
capabilities built in," said Andrew Morawski, senior vice president and general
manager, Oracle Communications, Networks. "5G is critical to establishing this
next generation of IoT, especially when deployed as truly cloud native,
leveraging all of the benefits of cloud technology."
According
to the latest ABI research market data, 5G IoT data analytics and services
revenue will grow to $32.2 billion by 2026 with 115% CAGR, and the GSMA Mobile Economy report forecasts the IoT market
will be worth more than $1 trillion by 2025.
Key
findings from the survey include:
- Commercial off-the shelf
products accelerate deployments:
Deployment times for commercial solutions average 8.5 months, compared to
an industry average of about 11 months, suggesting that the increasing use
of standardized solutions is accelerating go-live times. Public
safety/government (51%) and utilities (45%) have the most accelerated
timelines, aiming for IoT deployment within six months.
- IoT projects are shifting from
internal and non-core to critical and customer-facing: Almost 90% of projects were described by the
respondents as 'fundamental' or 'very important' to their core business,
and just over half of all projects are visible to their customers. This is
reflected in cost being ranked as the most important aspect to manage.
Deploying the solution ranked highest for utilities (61%) and public
safety and government (60%). Other industries such as healthcare
(58%) and enterprise IT (59%), ranked cost to operate the solution,
highest.
- Buyers seek complete solutions: Three-quarters (75%) of respondents want connectivity
to be bundled in by their IoT solution provider and 25% are happy for it
to not even be a visible component to them. For projects in the planning
phase, that trend is even more pronounced, implying bundled IoT will
likely be more common in the near future.
- Industry standards will drive
solution design: Almost all (85%)
of respondents have some requirement (either regulatory or based on a
desire to comply with standard operational practices) for compliance with
standard data formats. This is especially key for industries like
healthcare (71%) and utilities (61%), which reported strict requirements
for regulatory compliance. Even in projects where standards are less
rigid, such as enterprise IT, 45% still anticipate strict regulatory
compliance requirements.
- Increased need for analytics built into IoT platforms: IoT
use cases based on simple data gathering are diminishing rapidly. Survey
respondents said that over 80% of their projects involve bidirectional
data flows, rather than simple data gathering from device to application,
which will result in a greater requirement for an analytics driven control
loop within the IoT solution.
"What
is clear from this survey is that IoT adopters have moved on from so-called
‘low hanging fruit' to business-critical systems," said Matt Hatton, founding
partner, Transforma Insights. "As this maturing filters into the mass market,
we will see increasingly widespread transformational impact from enterprise
IoT."
Please
join Oracle for a headline keynote address at the IoT Grand Slam 2021 virtual
event taking place December 10th. For full details please visit https://iotslam.com