Proving the Business Case for the Internet of Things

IoT must overcome communications challenges to thrive: Frost & Sullivan

Iain Morris
November 20, 2014
Organizations addressing the Internet of Things opportunity will have to overcome a number of key challenges if it is to become a mass-market phenomenon in the future, according to new research from Frost & Sullivan.

The market-research company calls for an “acute focus” on communications, data management, networking and security.

Improving the speed and reliability of communications, enforcing a single standard across the enterprise, maintaining a robust security platform and managing high volume datasets will be critical to the success of the IoT market in the years ahead.

“Security, particularly for critical infrastructure, is a key concern for end users owing to the number of attack points and potential magnitude of impact,” said Rahul Vijayaraghavan, an industrial automation and process control senior research analyst with Frost & Sullivan. “As the IoT market moves towards semi- and fully-autonomous control networks, end users will have limited awareness and control in the event of targeted attacks, heightening the risk of sudden disruptions.”

Although IoT technologies provide benefits such as responsiveness, collaboration and visibility, there are concerns about the management of high-volume data traffic from multiple connected assets.

End users will have to decide what mission-critical data to manage in-house and what data should be progressively farmed out to service-platform providers, says Frost & Sullivan.

Moreover, to derive value from the data gathered, the development of extensible, industry-specific platforms – offering actionable real-time insights to improve operational productivity – will have to be a focal point for solutions providers.

“As data becomes the currency of the future, vendors must further invest in meeting critical end user data storage, management, analytics and ownership requirements,” said Rahul. “The ability to establish robust strategic partnerships with IoT ecosystem value chain participants will determine if solution providers can sustain growth in the fast-evolving IoT domain.”
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