- IoT platforms account for €15B ($17.6B) of the €250B ($293.3B) that will be spent on IoT in 2020.
- The IoT platform market is projected to grow at a Compound Annual Growth Rate (CAGR) of 40% through 2020.
- Just 14% of IoT platforms are enterprise-ready according to Boston Consulting Group (BCG).
- More than 400 companies offer IoT platforms today.
Answering the question of what makes an IoT platform scalable enough to excel in an enterprise needs to take into account application enablement, connectivity management, and data aggregation and storage. These and other insights are from a recent article by the Boston Consulting Group, Who Will Win The IoT Platform Wars? The report provides a useful framework for evaluating the enterprise readiness of the proliferating number of IoT platforms available today.
The following key takeaways offer a glimpse into the IoT platform landscape and how enterprises can determine if IoT platforms of interest will be able to scale to their needs:
- Enterprise software & services (22%) and IoT start-ups (32%) offer the largest amount of IoT platforms today. 18% of IoT platforms are being developed and sold by industrial technology providers who are looking to shift away from their hardware-centric business models. Superior design, extensibility, intuitive user experience and incentives for developers to support their IoT platforms are what’s need to excel in the enterprise. BCG found that 65% of enterprise buyers have a strong preference for purchasing their IoT platforms from enterprise software and services providers.
- The real test of any vendor’s IoT platform is to see if it supports application enablement, data aggregation and storage, and connectivity management. Ideally, IoT platforms orchestrate applications, data, devices, systems, and processes providing business strategists with a scalable framework they can rely on to accomplish long-term goals. In reality the majority of IoT platforms today can’t provide this level of support to business strategies. BCG found that a scalable enterprise-ready IoT platform provides application enablement, data aggregation and storage, and connectivity management. The following graphic provides an overview of core IoT platform requirements.
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