Manufacturers: We're Gearing Up For IoT

In a couple of years, IoT will dominate – basically every device will be ‘smart’, a new study suggests.

A new survey report called The Third Industrial Revolution: Intelligent Devices, Software, and the Internet of Things, prepared by Flexera Software and IDC, shows that manufacturers are significantly transforming their products and services lines into ‘smart’ devices.

They’re changing their products, business models and revenues streams with intelligent and Internet-connected technology that enables a new stream of profit.

Among other things, the survey says that only 30% of device makers questioned currently develop Internet of Things devices.

However, 34% more plan on doing so over the next two years, meaning the number of ‘smart’ devices manufacturers will more than double, very soon.

Today half of respondents have said they develop intelligent devices, with another 21 per cent planning on making their devices intelligent in the near future - but what’s most interesting of all is that new product categories and services are being created every day.

Amy Konary, Research Vice President for Software Licensing & Provisioning at IDC, says companies are finding new ways and opening new markets with IoT devices:

“By transforming their business models via software, Internet connectivity and licensing capabilities, device makers can enter new markets, diversify and increase their revenue streams, improve margins, and differentiate from the competition. The survey data indicates that that is exactly what is happening now.”

Vikram Koka, Vice President of Intelligent Devices & Internet of Things at Flexera Software believes that innovation alone can’t survive without profit:

“The report supports a long-proven truism in the high-tech arena – that innovation, alone, isn’t sufficient to transform an industry.  There must also be a practical means to monetise new technology in order to profit from it,“ he said.

Author: Sead Fadilpašic